diff --git a/CHANGELOG.md b/CHANGELOG.md
index 2ad1675a6..3af491302 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -10,6 +10,7 @@
 ### Fixed
 
 - `Run multiple times...` and `Run until failure...` will now work when multiple tests are selected ([#1724](https://github.com/swiftlang/vscode-swift/pull/1724))
+- Provide the Swift environment variables when resolving a `swift-plugin` task ([#1727](https://github.com/swiftlang/vscode-swift/pull/1727))
 
 ## 2.8.0 - 2025-07-14
 
diff --git a/src/tasks/SwiftPluginTaskProvider.ts b/src/tasks/SwiftPluginTaskProvider.ts
index 5cc58aaef..ffb02cd9c 100644
--- a/src/tasks/SwiftPluginTaskProvider.ts
+++ b/src/tasks/SwiftPluginTaskProvider.ts
@@ -102,6 +102,7 @@ export class SwiftPluginTaskProvider implements vscode.TaskProvider {
             "swift-plugin",
             new SwiftExecution(swift, swiftArgs, {
                 cwd,
+                env: { ...configuration.swiftEnvironmentVariables, ...swiftRuntimeEnv() },
                 presentation: task.presentationOptions,
             }),
             task.problemMatchers
diff --git a/test/unit-tests/tasks/SwiftPluginTaskProvider.test.ts b/test/unit-tests/tasks/SwiftPluginTaskProvider.test.ts
index 45ac1087c..9f637eec2 100644
--- a/test/unit-tests/tasks/SwiftPluginTaskProvider.test.ts
+++ b/test/unit-tests/tasks/SwiftPluginTaskProvider.test.ts
@@ -23,8 +23,9 @@ import { SwiftToolchain } from "../../../src/toolchain/toolchain";
 import { SwiftExecution } from "../../../src/tasks/SwiftExecution";
 import { Version } from "../../../src/utilities/version";
 import { BuildFlags } from "../../../src/toolchain/BuildFlags";
-import { instance, MockedObject, mockFn, mockObject } from "../../MockUtils";
+import { instance, MockedObject, mockFn, mockGlobalValue, mockObject } from "../../MockUtils";
 import { FolderContext } from "../../../src/FolderContext";
+import configuration from "../../../src/configuration";
 
 suite("SwiftPluginTaskProvider Unit Test Suite", () => {
     let workspaceContext: MockedObject<WorkspaceContext>;
@@ -58,6 +59,14 @@ suite("SwiftPluginTaskProvider Unit Test Suite", () => {
     });
 
     suite("resolveTask", () => {
+        const configurationMock = mockGlobalValue(configuration, "swiftEnvironmentVariables");
+
+        setup(async () => {
+            configurationMock.setValue({
+                FOO: "bar",
+            });
+        });
+
         test("uses SwiftExecution", async () => {
             const taskProvider = new SwiftPluginTaskProvider(instance(workspaceContext));
             const task = new vscode.Task(
@@ -295,5 +304,24 @@ suite("SwiftPluginTaskProvider Unit Test Suite", () => {
                 os.homedir(),
             ]);
         });
+
+        test("provides environment", async () => {
+            const taskProvider = new SwiftPluginTaskProvider(instance(workspaceContext));
+            const task = new vscode.Task(
+                {
+                    type: "swift",
+                    args: [],
+                },
+                workspaceFolder,
+                "run PackageExe",
+                "swift"
+            );
+            const resolvedTask = taskProvider.resolveTask(
+                task,
+                new vscode.CancellationTokenSource().token
+            );
+            const swiftExecution = resolvedTask.execution as SwiftExecution;
+            assert.equal(swiftExecution.options.env?.FOO, "bar");
+        });
     });
 });