diff --git a/src/Runner.Worker/ExecutionContext.cs b/src/Runner.Worker/ExecutionContext.cs
index b49fab72b..83e47c74c 100644
--- a/src/Runner.Worker/ExecutionContext.cs
+++ b/src/Runner.Worker/ExecutionContext.cs
@@ -105,7 +105,6 @@ namespace GitHub.Runner.Worker
         // others
         void ForceTaskComplete();
         void RegisterPostJobStep(IStep step);
-        public void SetEnvironmentVariables(Dictionary<string, string> dict);
         void RegisterNestedStep(IStep step, DictionaryContextData inputsData, int location, Dictionary<string, string> envData);
     }
 
@@ -281,13 +280,19 @@ namespace GitHub.Runner.Worker
             // Add the composite action environment variables to each step.
             // If the key already exists, we override it since the composite action env variables will have higher precedence
             // Note that for each composite action step, it's environment variables will be set in the StepRunner automatically
-            step.ExecutionContext.SetEnvironmentVariables(envData);
-            Root.JobSteps.Insert(location, step);
-        }
+            // step.ExecutionContext.SetEnvironmentVariables(envData);
+#if OS_WINDOWS
+            var envContext = new DictionaryContextData();
+#else
+            var envContext = new CaseSensitiveDictionaryContextData();
+#endif
+            foreach (var pair in envData)
+            {
+                envContext[pair.Key] = new StringContextData(pair.Value ?? string.Empty);
+            }
+            step.ExecutionContext.ExpressionValues["env"] = envContext;
 
-        public void SetEnvironmentVariables(Dictionary<string, string> dict)
-        {
-            this.EnvironmentVariables = dict;
+            Root.JobSteps.Insert(location, step);
         }
 
         public IExecutionContext CreateChild(Guid recordId, string displayName, string refName, string scopeName, string contextName, Dictionary<string, string> intraActionState = null, int? recordOrder = null)
diff --git a/src/Runner.Worker/StepsRunner.cs b/src/Runner.Worker/StepsRunner.cs
index e75d2e106..966f73dc1 100644
--- a/src/Runner.Worker/StepsRunner.cs
+++ b/src/Runner.Worker/StepsRunner.cs
@@ -93,12 +93,28 @@ namespace GitHub.Runner.Worker
 #else
                     var envContext = new CaseSensitiveDictionaryContextData();
 #endif
-                    step.ExecutionContext.ExpressionValues["env"] = envContext;
+                    // Global env
                     foreach (var pair in step.ExecutionContext.EnvironmentVariables)
                     {
                         envContext[pair.Key] = new StringContextData(pair.Value ?? string.Empty);
                     }
 
+                    // Stomps over with outside step env
+                    if (step.ExecutionContext.ExpressionValues.TryGetValue("env", out var envContextData))
+                    {
+#if OS_WINDOWS
+                        var dict = envContextData as DictionaryContextData;
+#else
+                        var dict = envContextData as CaseSensitiveDictionaryContextData;
+#endif
+                        foreach (var pair in dict)
+                        {
+                            envContext[pair.Key] = pair.Value;
+                        }
+                    }
+
+                    step.ExecutionContext.ExpressionValues["env"] = envContext;
+
                     bool evaluateStepEnvFailed = false;
                     if (step is IActionRunner actionStep)
                     {