diff --git a/package-lock.json b/package-lock.json
index dca3ccd..341935a 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -862,6 +862,11 @@
       "integrity": "sha512-A46qtFgd+g7pDZinpnwiRJtxbC1hpgf0uzP3iG89scHk0AUC7A1TGxf5OiiOUv/JMZR8GOt8hL900hV0bOy5xA==",
       "dev": true
     },
+    "dotenv": {
+      "version": "10.0.0",
+      "resolved": "https://registry.npmjs.org/dotenv/-/dotenv-10.0.0.tgz",
+      "integrity": "sha512-rlBi9d8jpv9Sf1klPjNfFAuWDjKLwTIJJ/VxtoTwIR6hnZxcEOQCZg2oIL3MWBYw5GpUDKOEnND7LXTbIpQ03Q=="
+    },
     "electron-to-chromium": {
       "version": "1.3.774",
       "resolved": "https://registry.npmjs.org/electron-to-chromium/-/electron-to-chromium-1.3.774.tgz",
diff --git a/package.json b/package.json
index 84f8562..4152c29 100644
--- a/package.json
+++ b/package.json
@@ -959,6 +959,7 @@
   },
   "dependencies": {
     "compare-versions": "^3.6.0",
+    "dotenv": "^10.0.0",
     "lodash": "^4.17.21",
     "uuid": "^8.3.1",
     "vscode-extension-telemetry-wrapper": "^0.9.0",
diff --git a/src/configurationProvider.ts b/src/configurationProvider.ts
index 27de003..647a212 100644
--- a/src/configurationProvider.ts
+++ b/src/configurationProvider.ts
@@ -6,6 +6,8 @@ import * as os from "os";
 import * as path from "path";
 import * as vscode from "vscode";
 
+import * as dotenv from 'dotenv';
+
 import { instrumentOperation, sendError, sendInfo, setUserError } from "vscode-extension-telemetry-wrapper";
 import * as anchor from "./anchor";
 import { buildWorkspace } from "./build";
@@ -721,20 +723,7 @@ function readEnvFile(file: string): { [key: string]: string } {
     }
 
     const buffer = stripBOM(fs.readFileSync(file, "utf8"));
-    const env: { [key: string]: string } = {};
-    for (const line of buffer.split("\n")) {
-        const r = line.match(/^\s*([\w\.\-]+)\s*=\s*(.*)?\s*$/);
-        if (!r) {
-            continue;
-        }
-
-        let value = r[2] || "";
-        // .env variables never overwrite existing variables (see #21169)
-        if (value.length > 0 && value.charAt(0) === '"' && value.charAt(value.length - 1) === '"') {
-            value = value.replace(/\\n/gm, "\n");
-        }
-        env[r[1]] = value.replace(/(^['"]|['"]$)/g, "");
-    }
+    const env = dotenv.parse(Buffer.from(buffer));
 
     return env;
 }