diff --git a/src/extension/common/variables/environment.ts b/src/extension/common/variables/environment.ts
index ce67bb8b..866a4dae 100644
--- a/src/extension/common/variables/environment.ts
+++ b/src/extension/common/variables/environment.ts
@@ -177,7 +177,7 @@ function parseEnvLine(line: string): [string, string] {
     // We don't use dotenv here because it loses ordering, which is
     // significant for substitution.
     // Modified to handle multiline values by using 's' flag so $ matches before newlines in multiline strings
-    const match = line.match(/^\s*(_*[a-zA-Z]\w*)\s*=\s*(.*?)?\s*$/s);
+    const match = line.match(/^\s*(_*[a-zA-Z][\w/]*)\s*=\s*(.*?)?\s*$/s);
     if (!match) {
         return ['', ''];
     }
diff --git a/src/test/unittest/common/environment.unit.test.ts b/src/test/unittest/common/environment.unit.test.ts
index be5353eb..e3e69543 100644
--- a/src/test/unittest/common/environment.unit.test.ts
+++ b/src/test/unittest/common/environment.unit.test.ts
@@ -102,4 +102,21 @@ suite('Environment File Parsing Tests', () => {
         expect(result.VAR1).to.equal('value1');
         expect(result.VAR2).to.equal('multiline\nvalue');
     });
+
+    test('Should parse keys containing forward slashes (e.g. Consul-style namespaced variables)', () => {
+        const content = 'routes/my_service=http://localhost:8080\nservices/db/host=localhost';
+        const result = parseEnvFile(content);
+
+        expect(result['routes/my_service']).to.equal('http://localhost:8080');
+        expect(result['services/db/host']).to.equal('localhost');
+    });
+
+    test('Should parse mixed standard and slash-namespaced keys in the same file', () => {
+        const content = 'STANDARD_VAR=value1\nroutes/my_service=http://localhost:8080\nANOTHER_VAR=value2';
+        const result = parseEnvFile(content);
+
+        expect(result['STANDARD_VAR']).to.equal('value1');
+        expect(result['routes/my_service']).to.equal('http://localhost:8080');
+        expect(result['ANOTHER_VAR']).to.equal('value2');
+    });
 });