diff --git a/package-lock.json b/package-lock.json
index 6191163..a33c24e 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -15,6 +15,7 @@
         "acorn-loose": "^8.4.0",
         "ansi-colors": "^4.1.3",
         "data-uri-to-buffer": "^6.0.2",
+        "dotenv": "^16.4.5",
         "estraverse": "^5.3.0",
         "picomatch": "^4.0.1",
         "pretty-format": "^29.7.0",
@@ -1525,6 +1526,17 @@
         "node": "^14.15.0 || ^16.10.0 || >=18.0.0"
       }
     },
+    "node_modules/dotenv": {
+      "version": "16.4.5",
+      "resolved": "https://registry.npmjs.org/dotenv/-/dotenv-16.4.5.tgz",
+      "integrity": "sha512-ZmdL2rui+eB2YwhsWzjInR8LldtZHGDoQ1ugH85ppHKwpUHL7j7rN0Ti9NCnGiQbhaZ11FpR+7ao1dNsmduNUg==",
+      "engines": {
+        "node": ">=12"
+      },
+      "funding": {
+        "url": "https://dotenvx.com"
+      }
+    },
     "node_modules/eastasianwidth": {
       "version": "0.2.0",
       "resolved": "https://registry.npmjs.org/eastasianwidth/-/eastasianwidth-0.2.0.tgz",
@@ -5251,6 +5263,11 @@
       "integrity": "sha512-EjePK1srD3P08o2j4f0ExnylqRs5B9tJjcp9t1krH2qRi8CCdsYfwe9JgSLurFBWwq4uOlipzfk5fHNvwFKr8Q==",
       "dev": true
     },
+    "dotenv": {
+      "version": "16.4.5",
+      "resolved": "https://registry.npmjs.org/dotenv/-/dotenv-16.4.5.tgz",
+      "integrity": "sha512-ZmdL2rui+eB2YwhsWzjInR8LldtZHGDoQ1ugH85ppHKwpUHL7j7rN0Ti9NCnGiQbhaZ11FpR+7ao1dNsmduNUg=="
+    },
     "eastasianwidth": {
       "version": "0.2.0",
       "resolved": "https://registry.npmjs.org/eastasianwidth/-/eastasianwidth-0.2.0.tgz",
diff --git a/package.json b/package.json
index 0feade7..4433ee2 100644
--- a/package.json
+++ b/package.json
@@ -125,6 +125,19 @@
                 }
               }
             }
+          },
+          "nodejs-testing.envFile": {
+            "type": "string",
+            "markdownDescription": "Absolute path to a file containing environment variable definitions.\n\nNote: template parameters like ${workspaceFolder} will be resolved.",
+            "default": ""
+          },
+          "nodejs-testing.env": {
+            "type": "object",
+            "markdownDescription": "Environment variables passed to the program. The value null removes the variable from the environment.\n\nNote: This takes precedence over envFile.",
+            "additionalProperties": {
+              "type": "string"
+            },
+            "default": {}
           }
         }
       }
@@ -184,6 +197,7 @@
     "acorn-loose": "^8.4.0",
     "ansi-colors": "^4.1.3",
     "data-uri-to-buffer": "^6.0.2",
+    "dotenv": "^16.4.5",
     "estraverse": "^5.3.0",
     "picomatch": "^4.0.1",
     "pretty-format": "^29.7.0",
diff --git a/src/extension.ts b/src/extension.ts
index abad0bd..61db698 100644
--- a/src/extension.ts
+++ b/src/extension.ts
@@ -24,6 +24,8 @@ export async function activate(context: vscode.ExtensionContext) {
     new ConfigValue("style", Style.Spec),
     context.extensionUri.fsPath,
     new ConfigValue("nodejsParameters", []),
+    new ConfigValue("envFile", ""),
+    new ConfigValue("env", {}),
     extensions,
   );
 
diff --git a/src/runner-protocol.ts b/src/runner-protocol.ts
index b993685..626bfeb 100644
--- a/src/runner-protocol.ts
+++ b/src/runner-protocol.ts
@@ -92,6 +92,7 @@ export const contract = makeContract({
             parameters: s.sArrayOf(s.sString()),
           }),
         ),
+        extraEnv: s.sMap(s.sString()),
       }),
       result: s.sObject({
         status: s.sNumber(),
diff --git a/src/runner-worker.ts b/src/runner-worker.ts
index 90b190a..bebb732 100644
--- a/src/runner-worker.ts
+++ b/src/runner-worker.ts
@@ -42,6 +42,7 @@ const start: (typeof contract)["TClientHandler"]["start"] = async ({
   files,
   extensions,
   verbose,
+  extraEnv,
 }) => {
   const majorVersion = /^v([0-9]+)/.exec(process.version);
   if (!majorVersion || Number(majorVersion[1]) < 19) {
@@ -51,7 +52,7 @@ const start: (typeof contract)["TClientHandler"]["start"] = async ({
   const todo: Promise<void>[] = [];
   for (let i = 0; i < concurrency && i < files.length; i++) {
     const prefix = colors[i % colors.length](`worker${i + 1}> `);
-    todo.push(doWork(prefix, files, extensions, verbose));
+    todo.push(doWork(prefix, files, extensions, verbose, extraEnv));
   }
   await Promise.all(todo);
 
@@ -63,6 +64,7 @@ async function doWork(
   queue: ITestRunFile[],
   extensions: ExtensionConfig[],
   verbose: boolean,
+  extraEnv: Record<string, string>,
 ) {
   while (queue.length) {
     const next = queue.pop()!;
@@ -96,6 +98,7 @@ async function doWork(
           // enable color for modules that use `supports-color` or similar
           FORCE_COLOR: "true",
           ...process.env,
+          ...extraEnv,
         },
       });
 
diff --git a/src/runner.ts b/src/runner.ts
index 82b0062..08b8596 100644
--- a/src/runner.ts
+++ b/src/runner.ts
@@ -2,7 +2,8 @@ import { replaceVariables } from "@c4312/vscode-variables";
 import { Contract } from "@hediet/json-rpc";
 import { NodeJsMessageStream } from "@hediet/json-rpc-streams/src";
 import { spawn } from "child_process";
-import { promises as fs } from "fs";
+import { parse as parseEnv } from "dotenv";
+import fs from "fs/promises";
 import { createServer } from "net";
 import { cpus, tmpdir } from "os";
 import { join } from "path";
@@ -36,6 +37,8 @@ export class TestRunner {
     private readonly style: ConfigValue<Style>,
     extensionDir: string,
     private readonly nodejsParameters: ConfigValue<string[]>,
+    private readonly envFile: ConfigValue<string>,
+    private readonly env: ConfigValue<Record<string, string>>,
     private readonly extensions: ConfigValue<ExtensionConfig[]>,
   ) {
     this.workerPath = join(extensionDir, "out", "runner-worker.js");
@@ -84,13 +87,23 @@ export class TestRunner {
 
       try {
         const outputQueue = new OutputQueue();
+
+        const extensions = this.extensions.value;
+        const envFile = this.envFile.value
+          ? await fs.readFile(replaceVariables(this.envFile.value))
+          : null;
+        const envFileValues = envFile ? parseEnv(envFile) : {};
+        const extraEnv = {
+          ...envFileValues,
+          ...this.env.value,
+        };
+
         await new Promise<void>((resolve, reject) => {
           const socket = getRandomPipe();
           run.token.onCancellationRequested(() => fs.unlink(socket).catch(() => {}));
 
           const server = createServer((stream) => {
             run.token.onCancellationRequested(stream.end, stream);
-            const extensions = this.extensions.value;
 
             const onLog = (test: vscode.TestItem | undefined, prefix: string, log: ILog) => {
               const location = log.sf?.file
@@ -185,6 +198,7 @@ export class TestRunner {
                 concurrency,
                 extensions,
                 verbose: this.verbose.value,
+                extraEnv,
               })
               .then(({ status, message }) => {
                 switch (status) {