diff --git a/universal/src/yaml_config/yaml_config.cpp b/universal/src/yaml_config/yaml_config.cpp
index 49b19375a31c..69e4660ef953 100644
--- a/universal/src/yaml_config/yaml_config.cpp
+++ b/universal/src/yaml_config/yaml_config.cpp
@@ -100,7 +100,7 @@ std::optional<YamlConfig> GetSharpCommandValue(
     if (env_value) {
         env_value = env_value->CloneWithReplacedPath(yaml[key].GetPath());
         // Strip substitutions off to disallow nested substitutions
-        return YamlConfig{std::move(*env_value), {}, YamlConfig::Mode::kSecure};
+        return YamlConfig{std::move(*env_value), {}, mode};
     }
 
     const auto file_name = yaml[GetFileName(key)];
@@ -108,7 +108,7 @@ std::optional<YamlConfig> GetSharpCommandValue(
     if (file_value) {
         file_value = file_value->CloneWithReplacedPath(yaml[key].GetPath());
         // Strip substitutions off to disallow nested substitutions
-        return YamlConfig{std::move(*file_value), {}, YamlConfig::Mode::kSecure};
+        return YamlConfig{std::move(*file_value), {}, mode};
     }
 
     if (met_substitution || !env_name.IsMissing() || !file_name.IsMissing()) {
@@ -119,7 +119,7 @@ std::optional<YamlConfig> GetSharpCommandValue(
             return YamlConfig{
                 yaml[fallback_name].CloneWithReplacedPath(yaml[key].GetPath()),
                 {},
-                YamlConfig::Mode::kSecure
+                mode
             };
         }
     }
@@ -142,7 +142,7 @@ std::optional<YamlConfig> GetYamlConfig(
         if (!var_data.IsMissing()) {
             var_data = var_data.CloneWithReplacedPath(value.GetPath());
             // Strip substitutions off to disallow nested substitutions
-            return YamlConfig{std::move(var_data), {}, YamlConfig::Mode::kSecure};
+            return YamlConfig{std::move(var_data), {}, mode};
         }
 
         auto res = GetSharpCommandValue(
@@ -155,7 +155,7 @@ std::optional<YamlConfig> GetYamlConfig(
             return YamlConfig{
                 res->GetRawYamlWithoutConfigVars().CloneWithReplacedPath(value.GetPath()),
                 {},
-                YamlConfig::Mode::kSecure,
+                mode,
             };
         }
     }
@@ -206,7 +206,7 @@ YamlConfig YamlConfig::operator[](size_t index) const {
         if (!var_data.IsMissing()) {
             var_data = var_data.CloneWithReplacedPath(value.GetPath());
             // Strip substitutions off to disallow nested substitutions
-            return YamlConfig{std::move(var_data), {}, Mode::kSecure};
+            return YamlConfig{std::move(var_data), {}, mode_};
         }
 
         auto res = GetSharpCommandValue(
@@ -219,7 +219,7 @@ YamlConfig YamlConfig::operator[](size_t index) const {
             return YamlConfig{
                 res->GetRawYamlWithoutConfigVars().CloneWithReplacedPath(value.GetPath()),
                 {},
-                YamlConfig::Mode::kSecure,
+                mode_,
             };
         }
 
diff --git a/universal/src/yaml_config/yaml_config_test.cpp b/universal/src/yaml_config/yaml_config_test.cpp
index 585126b279a5..834e97296285 100644
--- a/universal/src/yaml_config/yaml_config_test.cpp
+++ b/universal/src/yaml_config/yaml_config_test.cpp
@@ -432,6 +432,45 @@ TEST(YamlConfig, NoVariableMap) {
     );
 }
 
+
+TEST(YamlConfig, NestedVarsEnv) {
+    auto vmap = formats::yaml::FromString(R"(
+    root:
+        value1#env: VALUE_1
+        value2: value-2
+        nested:
+            value3#env: VALUE_3
+            value4: value-4
+            nested:
+                value5#env: VALUE_5
+                value6: value-6
+  )");
+
+    auto node = formats::yaml::FromString(R"(
+    root: $root
+  )");
+
+    yaml_config::YamlConfig conf(std::move(node), std::move(vmap), yaml_config::YamlConfig::Mode::kEnvAllowed);
+
+    // NOLINTNEXTLINE(concurrency-mt-unsafe)
+    ::setenv("VALUE_1", "value-1", 1);
+    // NOLINTNEXTLINE(concurrency-mt-unsafe)
+    ::setenv("VALUE_3", "value-3", 1);
+    // NOLINTNEXTLINE(concurrency-mt-unsafe)
+    ::setenv("VALUE_5", "value-5", 1);
+
+    EXPECT_EQ(conf["root"]["value1"].As<std::string>(), "value-1");
+    EXPECT_EQ(conf["root"]["nested"]["value3"].As<std::string>(), "value-3");
+    EXPECT_EQ(conf["root"]["nested"]["nested"]["value5"].As<std::string>(), "value-5");
+
+    // NOLINTNEXTLINE(concurrency-mt-unsafe)
+    ::unsetenv("VALUE_5");
+    // NOLINTNEXTLINE(concurrency-mt-unsafe)
+    ::unsetenv("VALUE_3");
+    // NOLINTNEXTLINE(concurrency-mt-unsafe)
+    ::unsetenv("VALUE_1");
+}
+
 /// Common test base to make consistent tests between iterators and operator[]
 template <typename Accessor>
 class YamlConfigAccessor : public ::testing::Test {};