diff --git a/src/lib/helpers/envfile.test.ts b/src/lib/helpers/envfile.test.ts
new file mode 100644
index 0000000000..2a629d12a5
--- /dev/null
+++ b/src/lib/helpers/envfile.test.ts
@@ -0,0 +1,66 @@
+import { parse } from '$lib/helpers/envfile';
+import { describe, expect, it } from 'vitest';
+
+describe('parse', () => {
+    it('parses key-value pairs separated by equals signs', () => {
+        expect(parse('APPWRITE_ENDPOINT=http://localhost/v1\nAPPWRITE_PROJECT=console')).toEqual({
+            APPWRITE_ENDPOINT: 'http://localhost/v1',
+            APPWRITE_PROJECT: 'console'
+        });
+    });
+
+    it('parses key-value pairs separated by colons', () => {
+        expect(parse('HOST: localhost\nPORT: 3000')).toEqual({
+            HOST: 'localhost',
+            PORT: '3000'
+        });
+    });
+
+    it('trims whitespace around keys and values', () => {
+        expect(parse(' PUBLIC_KEY = value \n SECRET_KEY : secret ')).toEqual({
+            PUBLIC_KEY: 'value',
+            SECRET_KEY: 'secret'
+        });
+    });
+
+    it('removes single and double quotes from values', () => {
+        expect(parse("NAME='Appwrite'\nMESSAGE=\"Hello world\"")).toEqual({
+            NAME: 'Appwrite',
+            MESSAGE: 'Hello world'
+        });
+    });
+
+    it('preserves quotes inside values', () => {
+        expect(parse("AUTHOR=O'Brien\nMESSAGE=Say \"hello\"")).toEqual({
+            AUTHOR: "O'Brien",
+            MESSAGE: 'Say "hello"'
+        });
+    });
+
+    it('keeps equals signs and colons inside values', () => {
+        expect(parse('DATABASE_URL=mysql://user:pass@example.com/db\nTOKEN=abc=123')).toEqual({
+            DATABASE_URL: 'mysql://user:pass@example.com/db',
+            TOKEN: 'abc=123'
+        });
+    });
+
+    it('parses files with CRLF line endings', () => {
+        expect(parse('NAME=Appwrite\r\nMESSAGE=Hello world\r\n')).toEqual({
+            NAME: 'Appwrite',
+            MESSAGE: 'Hello world'
+        });
+    });
+
+    it('ignores blank lines, comments, and malformed lines', () => {
+        expect(parse('\n# comment\nKEY=value\nMALFORMED\n:missing-key\n')).toEqual({
+            KEY: 'value'
+        });
+    });
+
+    it('allows empty values', () => {
+        expect(parse('EMPTY=\nBLANK:')).toEqual({
+            EMPTY: '',
+            BLANK: ''
+        });
+    });
+});
diff --git a/src/lib/helpers/envfile.ts b/src/lib/helpers/envfile.ts
index 637e852737..3b8891c506 100644
--- a/src/lib/helpers/envfile.ts
+++ b/src/lib/helpers/envfile.ts
@@ -9,7 +9,7 @@ export function parse(src: string): Data {
         const match = line.match(/^([^=:#]+?)[=:](.*)/);
         if (match) {
             const key = match[1].trim();
-            const value = match[2].trim().replace(/['"]+/g, '');
+            const value = match[2].trim().replace(/^(['"])(.*)\1$/, '$2');
             result[key] = value;
         }
     }