diff --git a/internal/config/load_test.go b/internal/config/load_test.go
index b6038e0d0e3fb76e4567b4c5c739eb8da952311e..61054e5ccbc9031702f3d1d778634bf53b625bcb 100644
--- a/internal/config/load_test.go
+++ b/internal/config/load_test.go
@@ -77,7 +77,7 @@ func TestConfig_configureProviders(t *testing.T) {
 	env := env.NewFromMap(map[string]string{
 		"OPENAI_API_KEY": "test-key",
 	})
-	resolver := NewEnvironmentVariableResolver(env)
+	resolver := NewShellVariableResolver(env)
 	err := cfg.configureProviders(testStore(cfg), env, resolver, knownProviders)
 	require.NoError(t, err)
 	require.Equal(t, 1, cfg.Providers.Len())
@@ -120,7 +120,7 @@ func TestConfig_configureProvidersWithOverride(t *testing.T) {
 	env := env.NewFromMap(map[string]string{
 		"OPENAI_API_KEY": "test-key",
 	})
-	resolver := NewEnvironmentVariableResolver(env)
+	resolver := NewShellVariableResolver(env)
 	err := cfg.configureProviders(testStore(cfg), env, resolver, knownProviders)
 	require.NoError(t, err)
 	require.Equal(t, 1, cfg.Providers.Len())
@@ -162,7 +162,7 @@ func TestConfig_configureProvidersWithNewProvider(t *testing.T) {
 	env := env.NewFromMap(map[string]string{
 		"OPENAI_API_KEY": "test-key",
 	})
-	resolver := NewEnvironmentVariableResolver(env)
+	resolver := NewShellVariableResolver(env)
 	err := cfg.configureProviders(testStore(cfg), env, resolver, knownProviders)
 	require.NoError(t, err)
 	// Should be to because of the env variable
@@ -198,7 +198,7 @@ func TestConfig_configureProvidersBedrockWithCredentials(t *testing.T) {
 		"AWS_ACCESS_KEY_ID":     "test-key-id",
 		"AWS_SECRET_ACCESS_KEY": "test-secret-key",
 	})
-	resolver := NewEnvironmentVariableResolver(env)
+	resolver := NewShellVariableResolver(env)
 	err := cfg.configureProviders(testStore(cfg), env, resolver, knownProviders)
 	require.NoError(t, err)
 	require.Equal(t, cfg.Providers.Len(), 1)
@@ -224,7 +224,7 @@ func TestConfig_configureProvidersBedrockWithoutCredentials(t *testing.T) {
 	cfg := &Config{}
 	cfg.setDefaults("/tmp", "")
 	env := env.NewFromMap(map[string]string{})
-	resolver := NewEnvironmentVariableResolver(env)
+	resolver := NewShellVariableResolver(env)
 	err := cfg.configureProviders(testStore(cfg), env, resolver, knownProviders)
 	require.NoError(t, err)
 	// Provider should not be configured without credentials
@@ -249,7 +249,7 @@ func TestConfig_configureProvidersBedrockWithoutUnsupportedModel(t *testing.T) {
 		"AWS_ACCESS_KEY_ID":     "test-key-id",
 		"AWS_SECRET_ACCESS_KEY": "test-secret-key",
 	})
-	resolver := NewEnvironmentVariableResolver(env)
+	resolver := NewShellVariableResolver(env)
 	err := cfg.configureProviders(testStore(cfg), env, resolver, knownProviders)
 	require.Error(t, err)
 }
@@ -272,7 +272,7 @@ func TestConfig_configureProvidersVertexAIWithCredentials(t *testing.T) {
 		"VERTEXAI_PROJECT":  "test-project",
 		"VERTEXAI_LOCATION": "us-central1",
 	})
-	resolver := NewEnvironmentVariableResolver(env)
+	resolver := NewShellVariableResolver(env)
 	err := cfg.configureProviders(testStore(cfg), env, resolver, knownProviders)
 	require.NoError(t, err)
 	require.Equal(t, cfg.Providers.Len(), 1)
@@ -304,7 +304,7 @@ func TestConfig_configureProvidersVertexAIWithoutCredentials(t *testing.T) {
 		"GOOGLE_CLOUD_PROJECT":      "test-project",
 		"GOOGLE_CLOUD_LOCATION":     "us-central1",
 	})
-	resolver := NewEnvironmentVariableResolver(env)
+	resolver := NewShellVariableResolver(env)
 	err := cfg.configureProviders(testStore(cfg), env, resolver, knownProviders)
 	require.NoError(t, err)
 	// Provider should not be configured without proper credentials
@@ -329,7 +329,7 @@ func TestConfig_configureProvidersVertexAIMissingProject(t *testing.T) {
 		"GOOGLE_GENAI_USE_VERTEXAI": "true",
 		"GOOGLE_CLOUD_LOCATION":     "us-central1",
 	})
-	resolver := NewEnvironmentVariableResolver(env)
+	resolver := NewShellVariableResolver(env)
 	err := cfg.configureProviders(testStore(cfg), env, resolver, knownProviders)
 	require.NoError(t, err)
 	// Provider should not be configured without project
@@ -353,7 +353,7 @@ func TestConfig_configureProvidersSetProviderID(t *testing.T) {
 	env := env.NewFromMap(map[string]string{
 		"OPENAI_API_KEY": "test-key",
 	})
-	resolver := NewEnvironmentVariableResolver(env)
+	resolver := NewShellVariableResolver(env)
 	err := cfg.configureProviders(testStore(cfg), env, resolver, knownProviders)
 	require.NoError(t, err)
 	require.Equal(t, cfg.Providers.Len(), 1)
@@ -544,7 +544,7 @@ func TestConfig_configureProvidersWithDisabledProvider(t *testing.T) {
 	env := env.NewFromMap(map[string]string{
 		"OPENAI_API_KEY": "test-key",
 	})
-	resolver := NewEnvironmentVariableResolver(env)
+	resolver := NewShellVariableResolver(env)
 	err := cfg.configureProviders(testStore(cfg), env, resolver, knownProviders)
 	require.NoError(t, err)
 
@@ -572,7 +572,7 @@ func TestConfig_configureProvidersCustomProviderValidation(t *testing.T) {
 		cfg.setDefaults("/tmp", "")
 
 		env := env.NewFromMap(map[string]string{})
-		resolver := NewEnvironmentVariableResolver(env)
+		resolver := NewShellVariableResolver(env)
 		err := cfg.configureProviders(testStore(cfg), env, resolver, []catwalk.Provider{})
 		require.NoError(t, err)
 
@@ -595,7 +595,7 @@ func TestConfig_configureProvidersCustomProviderValidation(t *testing.T) {
 		cfg.setDefaults("/tmp", "")
 
 		env := env.NewFromMap(map[string]string{})
-		resolver := NewEnvironmentVariableResolver(env)
+		resolver := NewShellVariableResolver(env)
 		err := cfg.configureProviders(testStore(cfg), env, resolver, []catwalk.Provider{})
 		require.NoError(t, err)
 
@@ -617,7 +617,7 @@ func TestConfig_configureProvidersCustomProviderValidation(t *testing.T) {
 		cfg.setDefaults("/tmp", "")
 
 		env := env.NewFromMap(map[string]string{})
-		resolver := NewEnvironmentVariableResolver(env)
+		resolver := NewShellVariableResolver(env)
 		err := cfg.configureProviders(testStore(cfg), env, resolver, []catwalk.Provider{})
 		require.NoError(t, err)
 
@@ -642,7 +642,7 @@ func TestConfig_configureProvidersCustomProviderValidation(t *testing.T) {
 		cfg.setDefaults("/tmp", "")
 
 		env := env.NewFromMap(map[string]string{})
-		resolver := NewEnvironmentVariableResolver(env)
+		resolver := NewShellVariableResolver(env)
 		err := cfg.configureProviders(testStore(cfg), env, resolver, []catwalk.Provider{})
 		require.NoError(t, err)
 
@@ -667,7 +667,7 @@ func TestConfig_configureProvidersCustomProviderValidation(t *testing.T) {
 		cfg.setDefaults("/tmp", "")
 
 		env := env.NewFromMap(map[string]string{})
-		resolver := NewEnvironmentVariableResolver(env)
+		resolver := NewShellVariableResolver(env)
 		err := cfg.configureProviders(testStore(cfg), env, resolver, []catwalk.Provider{})
 		require.NoError(t, err)
 
@@ -695,7 +695,7 @@ func TestConfig_configureProvidersCustomProviderValidation(t *testing.T) {
 		cfg.setDefaults("/tmp", "")
 
 		env := env.NewFromMap(map[string]string{})
-		resolver := NewEnvironmentVariableResolver(env)
+		resolver := NewShellVariableResolver(env)
 		err := cfg.configureProviders(testStore(cfg), env, resolver, []catwalk.Provider{})
 		require.NoError(t, err)
 
@@ -725,7 +725,7 @@ func TestConfig_configureProvidersCustomProviderValidation(t *testing.T) {
 		cfg.setDefaults("/tmp", "")
 
 		env := env.NewFromMap(map[string]string{})
-		resolver := NewEnvironmentVariableResolver(env)
+		resolver := NewShellVariableResolver(env)
 		err := cfg.configureProviders(testStore(cfg), env, resolver, []catwalk.Provider{})
 		require.NoError(t, err)
 
@@ -760,7 +760,7 @@ func TestConfig_configureProvidersEnhancedCredentialValidation(t *testing.T) {
 		env := env.NewFromMap(map[string]string{
 			"GOOGLE_GENAI_USE_VERTEXAI": "false",
 		})
-		resolver := NewEnvironmentVariableResolver(env)
+		resolver := NewShellVariableResolver(env)
 		err := cfg.configureProviders(testStore(cfg), env, resolver, knownProviders)
 		require.NoError(t, err)
 
@@ -791,7 +791,7 @@ func TestConfig_configureProvidersEnhancedCredentialValidation(t *testing.T) {
 		cfg.setDefaults("/tmp", "")
 
 		env := env.NewFromMap(map[string]string{})
-		resolver := NewEnvironmentVariableResolver(env)
+		resolver := NewShellVariableResolver(env)
 		err := cfg.configureProviders(testStore(cfg), env, resolver, knownProviders)
 		require.NoError(t, err)
 
@@ -822,7 +822,7 @@ func TestConfig_configureProvidersEnhancedCredentialValidation(t *testing.T) {
 		cfg.setDefaults("/tmp", "")
 
 		env := env.NewFromMap(map[string]string{})
-		resolver := NewEnvironmentVariableResolver(env)
+		resolver := NewShellVariableResolver(env)
 		err := cfg.configureProviders(testStore(cfg), env, resolver, knownProviders)
 		require.NoError(t, err)
 
@@ -855,7 +855,7 @@ func TestConfig_configureProvidersEnhancedCredentialValidation(t *testing.T) {
 		env := env.NewFromMap(map[string]string{
 			"OPENAI_API_KEY": "test-key",
 		})
-		resolver := NewEnvironmentVariableResolver(env)
+		resolver := NewShellVariableResolver(env)
 		err := cfg.configureProviders(testStore(cfg), env, resolver, knownProviders)
 		require.NoError(t, err)
 
@@ -889,7 +889,7 @@ func TestConfig_defaultModelSelection(t *testing.T) {
 		cfg := &Config{}
 		cfg.setDefaults("/tmp", "")
 		env := env.NewFromMap(map[string]string{})
-		resolver := NewEnvironmentVariableResolver(env)
+		resolver := NewShellVariableResolver(env)
 		err := cfg.configureProviders(testStore(cfg), env, resolver, knownProviders)
 		require.NoError(t, err)
 
@@ -925,7 +925,7 @@ func TestConfig_defaultModelSelection(t *testing.T) {
 		cfg := &Config{}
 		cfg.setDefaults("/tmp", "")
 		env := env.NewFromMap(map[string]string{})
-		resolver := NewEnvironmentVariableResolver(env)
+		resolver := NewShellVariableResolver(env)
 		err := cfg.configureProviders(testStore(cfg), env, resolver, knownProviders)
 		require.NoError(t, err)
 
@@ -955,7 +955,7 @@ func TestConfig_defaultModelSelection(t *testing.T) {
 		cfg := &Config{}
 		cfg.setDefaults("/tmp", "")
 		env := env.NewFromMap(map[string]string{})
-		resolver := NewEnvironmentVariableResolver(env)
+		resolver := NewShellVariableResolver(env)
 		err := cfg.configureProviders(testStore(cfg), env, resolver, knownProviders)
 		require.NoError(t, err)
 		_, _, err = cfg.defaultModelSelection(knownProviders)
@@ -998,7 +998,7 @@ func TestConfig_defaultModelSelection(t *testing.T) {
 		}
 		cfg.setDefaults("/tmp", "")
 		env := env.NewFromMap(map[string]string{})
-		resolver := NewEnvironmentVariableResolver(env)
+		resolver := NewShellVariableResolver(env)
 		err := cfg.configureProviders(testStore(cfg), env, resolver, knownProviders)
 		require.NoError(t, err)
 		large, small, err := cfg.defaultModelSelection(knownProviders)
@@ -1042,7 +1042,7 @@ func TestConfig_defaultModelSelection(t *testing.T) {
 		}
 		cfg.setDefaults("/tmp", "")
 		env := env.NewFromMap(map[string]string{})
-		resolver := NewEnvironmentVariableResolver(env)
+		resolver := NewShellVariableResolver(env)
 		err := cfg.configureProviders(testStore(cfg), env, resolver, knownProviders)
 		require.NoError(t, err)
 		_, _, err = cfg.defaultModelSelection(knownProviders)
@@ -1084,7 +1084,7 @@ func TestConfig_defaultModelSelection(t *testing.T) {
 		}
 		cfg.setDefaults("/tmp", "")
 		env := env.NewFromMap(map[string]string{})
-		resolver := NewEnvironmentVariableResolver(env)
+		resolver := NewShellVariableResolver(env)
 		err := cfg.configureProviders(testStore(cfg), env, resolver, knownProviders)
 		require.NoError(t, err)
 		large, small, err := cfg.defaultModelSelection(knownProviders)
@@ -1129,7 +1129,7 @@ func TestConfig_configureProvidersDisableDefaultProviders(t *testing.T) {
 		env := env.NewFromMap(map[string]string{
 			"OPENAI_API_KEY": "test-key",
 		})
-		resolver := NewEnvironmentVariableResolver(env)
+		resolver := NewShellVariableResolver(env)
 		err := cfg.configureProviders(testStore(cfg), env, resolver, knownProviders)
 		require.ErrorContains(t, err, "no custom providers")
 
@@ -1172,7 +1172,7 @@ func TestConfig_configureProvidersDisableDefaultProviders(t *testing.T) {
 			"MY_API_KEY":     "test-key",
 			"OPENAI_API_KEY": "test-key",
 		})
-		resolver := NewEnvironmentVariableResolver(env)
+		resolver := NewShellVariableResolver(env)
 		err := cfg.configureProviders(testStore(cfg), env, resolver, knownProviders)
 		require.NoError(t, err)
 
@@ -1226,7 +1226,7 @@ func TestConfig_configureProvidersDisableDefaultProviders(t *testing.T) {
 			"OPENAI_API_KEY":    "test-key",
 			"ANTHROPIC_API_KEY": "test-key",
 		})
-		resolver := NewEnvironmentVariableResolver(env)
+		resolver := NewShellVariableResolver(env)
 		err := cfg.configureProviders(testStore(cfg), env, resolver, knownProviders)
 		require.NoError(t, err)
 
@@ -1254,7 +1254,7 @@ func TestConfig_configureProvidersDisableDefaultProviders(t *testing.T) {
 		cfg.setDefaults("/tmp", "")
 
 		env := env.NewFromMap(map[string]string{})
-		resolver := NewEnvironmentVariableResolver(env)
+		resolver := NewShellVariableResolver(env)
 		err := cfg.configureProviders(testStore(cfg), env, resolver, []catwalk.Provider{})
 		require.ErrorContains(t, err, "no custom providers")
 
@@ -1278,7 +1278,7 @@ func TestConfig_configureProvidersDisableDefaultProviders(t *testing.T) {
 		cfg.setDefaults("/tmp", "")
 
 		env := env.NewFromMap(map[string]string{})
-		resolver := NewEnvironmentVariableResolver(env)
+		resolver := NewShellVariableResolver(env)
 		err := cfg.configureProviders(testStore(cfg), env, resolver, []catwalk.Provider{})
 		require.ErrorContains(t, err, "no custom providers")
 
@@ -1336,7 +1336,7 @@ func TestConfig_configureSelectedModels(t *testing.T) {
 		cfg.setDefaults(dir, "")
 		store := &ConfigStore{config: cfg, globalDataPath: globalPath}
 		env := env.NewFromMap(map[string]string{})
-		resolver := NewEnvironmentVariableResolver(env)
+		resolver := NewShellVariableResolver(env)
 		err := cfg.configureProviders(store, env, resolver, knownProviders)
 		require.NoError(t, err)
 
@@ -1386,7 +1386,7 @@ func TestConfig_configureSelectedModels(t *testing.T) {
 		}
 		cfg.setDefaults("/tmp", "")
 		env := env.NewFromMap(map[string]string{})
-		resolver := NewEnvironmentVariableResolver(env)
+		resolver := NewShellVariableResolver(env)
 		err := cfg.configureProviders(testStore(cfg), env, resolver, knownProviders)
 		require.NoError(t, err)
 
@@ -1448,7 +1448,7 @@ func TestConfig_configureSelectedModels(t *testing.T) {
 		}
 		cfg.setDefaults("/tmp", "")
 		env := env.NewFromMap(map[string]string{})
-		resolver := NewEnvironmentVariableResolver(env)
+		resolver := NewShellVariableResolver(env)
 		err := cfg.configureProviders(testStore(cfg), env, resolver, knownProviders)
 		require.NoError(t, err)
 
@@ -1493,7 +1493,7 @@ func TestConfig_configureSelectedModels(t *testing.T) {
 		}
 		cfg.setDefaults("/tmp", "")
 		env := env.NewFromMap(map[string]string{})
-		resolver := NewEnvironmentVariableResolver(env)
+		resolver := NewShellVariableResolver(env)
 		err := cfg.configureProviders(testStore(cfg), env, resolver, knownProviders)
 		require.NoError(t, err)
 
@@ -1532,7 +1532,7 @@ func TestConfig_configureProviders_HyperAPIKeyFromEnv(t *testing.T) {
 	env := env.NewFromMap(map[string]string{
 		"HYPER_API_KEY": "env-api-key",
 	})
-	resolver := NewEnvironmentVariableResolver(env)
+	resolver := NewShellVariableResolver(env)
 	err := cfg.configureProviders(testStore(cfg), env, resolver, knownProviders)
 	require.NoError(t, err)
 	require.Equal(t, 1, cfg.Providers.Len())
@@ -1579,7 +1579,7 @@ func TestConfig_configureProviders_HyperAPIKeyFromConfigOverrides(t *testing.T)
 	env := env.NewFromMap(map[string]string{
 		"HYPER_API_KEY": "env-api-key",
 	})
-	resolver := NewEnvironmentVariableResolver(env)
+	resolver := NewShellVariableResolver(env)
 	err := cfg.configureProviders(testStore(cfg), env, resolver, knownProviders)
 	require.NoError(t, err)
 	require.Equal(t, 1, cfg.Providers.Len())
diff --git a/internal/config/resolve.go b/internal/config/resolve.go
index 8e13e16d440a31b73672ab55a467cc7ff866a1b8..a4a359be2e4ce1f6be32eba99b1b68eb3f61fe25 100644
--- a/internal/config/resolve.go
+++ b/internal/config/resolve.go
@@ -10,8 +10,7 @@ import (
 )
 
 // resolveTimeout bounds how long a single ResolveValue call may spend
-// inside shell expansion (including any command substitution). Matches
-// the timeout used by the previous hand-rolled parser.
+// inside shell expansion (including any command substitution).
 const resolveTimeout = 5 * time.Minute
 
 type VariableResolver interface {
@@ -173,27 +172,3 @@ func scrubErrorMessage(s string) string {
 	}
 	return string(out)
 }
-
-type environmentVariableResolver struct {
-	env env.Env
-}
-
-func NewEnvironmentVariableResolver(env env.Env) VariableResolver {
-	return &environmentVariableResolver{
-		env: env,
-	}
-}
-
-// ResolveValue resolves environment variables from the provided env.Env.
-func (r *environmentVariableResolver) ResolveValue(value string) (string, error) {
-	if len(value) == 0 || value[0] != '$' {
-		return value, nil
-	}
-
-	varName := value[1:]
-	resolvedValue := r.env.Get(varName)
-	if resolvedValue == "" {
-		return "", fmt.Errorf("environment variable %q not set", varName)
-	}
-	return resolvedValue, nil
-}
diff --git a/internal/config/resolve_test.go b/internal/config/resolve_test.go
index 18b461b8a6bc88f73d6db935eebd302cc3514781..3d364e523ae4738d23888941bc429d2c00241fa2 100644
--- a/internal/config/resolve_test.go
+++ b/internal/config/resolve_test.go
@@ -220,62 +220,6 @@ func TestScrubErrorMessage(t *testing.T) {
 	})
 }
 
-func TestEnvironmentVariableResolver_ResolveValue(t *testing.T) {
-	tests := []struct {
-		name        string
-		value       string
-		envVars     map[string]string
-		expected    string
-		expectError bool
-	}{
-		{
-			name:     "non-variable string returns as-is",
-			value:    "plain-string",
-			expected: "plain-string",
-		},
-		{
-			name:     "environment variable resolution",
-			value:    "$HOME",
-			envVars:  map[string]string{"HOME": "/home/user"},
-			expected: "/home/user",
-		},
-		{
-			name:     "environment variable with complex value",
-			value:    "$PATH",
-			envVars:  map[string]string{"PATH": "/usr/bin:/bin:/usr/local/bin"},
-			expected: "/usr/bin:/bin:/usr/local/bin",
-		},
-		{
-			name:        "missing environment variable returns error",
-			value:       "$MISSING_VAR",
-			envVars:     map[string]string{},
-			expectError: true,
-		},
-		{
-			name:        "empty environment variable returns error",
-			value:       "$EMPTY_VAR",
-			envVars:     map[string]string{"EMPTY_VAR": ""},
-			expectError: true,
-		},
-	}
-
-	for _, tt := range tests {
-		t.Run(tt.name, func(t *testing.T) {
-			testEnv := env.NewFromMap(tt.envVars)
-			resolver := NewEnvironmentVariableResolver(testEnv)
-
-			result, err := resolver.ResolveValue(tt.value)
-
-			if tt.expectError {
-				require.Error(t, err)
-			} else {
-				require.NoError(t, err)
-				require.Equal(t, tt.expected, result)
-			}
-		})
-	}
-}
-
 func TestNewShellVariableResolver(t *testing.T) {
 	testEnv := env.NewFromMap(map[string]string{"TEST": "value"})
 	resolver := NewShellVariableResolver(testEnv)
@@ -283,11 +227,3 @@ func TestNewShellVariableResolver(t *testing.T) {
 	require.NotNil(t, resolver)
 	require.Implements(t, (*VariableResolver)(nil), resolver)
 }
-
-func TestNewEnvironmentVariableResolver(t *testing.T) {
-	testEnv := env.NewFromMap(map[string]string{"TEST": "value"})
-	resolver := NewEnvironmentVariableResolver(testEnv)
-
-	require.NotNil(t, resolver)
-	require.Implements(t, (*VariableResolver)(nil), resolver)
-}
diff --git a/internal/lsp/client_test.go b/internal/lsp/client_test.go
index 0337dc8b9ba506264e519e1c53a725ab9fec35b1..583f7a8962600d711ab5087a7edf99d22eedba6b 100644
--- a/internal/lsp/client_test.go
+++ b/internal/lsp/client_test.go
@@ -26,7 +26,7 @@ func TestClient(t *testing.T) {
 
 	// Test creating a powernap client - this will likely fail with echo
 	// but we can still test the basic structure
-	client, err := New(ctx, "test", cfg, config.NewEnvironmentVariableResolver(env.NewFromMap(map[string]string{
+	client, err := New(ctx, "test", cfg, config.NewShellVariableResolver(env.NewFromMap(map[string]string{
 		"THE_CMD": "echo",
 	})), ".", false)
 	if err != nil {