diff --git a/frontend/dockerfile/dockerfile2llb/convert.go b/frontend/dockerfile/dockerfile2llb/convert.go
index 0d781029ba88b..18b6807c336c3 100644
--- a/frontend/dockerfile/dockerfile2llb/convert.go
+++ b/frontend/dockerfile/dockerfile2llb/convert.go
@@ -612,7 +612,6 @@ func toDispatchState(ctx context.Context, dt []byte, opt ConvertOpt) (*dispatchS
 			llbCaps:           opt.LLBCaps,
 			sourceMap:         opt.SourceMap,
 			lintWarn:          opt.Warn,
-			argCmdVars:        make(map[string]struct{}),
 		}
 
 		if err = dispatchOnBuildTriggers(d, d.image.Config.OnBuild, opt); err != nil {
@@ -749,17 +748,19 @@ type dispatchOpt struct {
 	llbCaps           *apicaps.CapSet
 	sourceMap         *llb.SourceMap
 	lintWarn          linter.LintWarnFunc
-	argCmdVars        map[string]struct{}
 }
 
 func dispatch(d *dispatchState, cmd command, opt dispatchOpt) error {
-	env, err := d.state.Env(context.TODO())
-	if err != nil {
-		return err
-	}
+	var err error
 	if ex, ok := cmd.Command.(instructions.SupportsSingleWordExpansion); ok {
 		err := ex.Expand(func(word string) (string, error) {
-			newword, _, err := opt.shlex.ProcessWord(word, env)
+			env, err := d.state.Env(context.TODO())
+			if err != nil {
+				return "", err
+			}
+
+			newword, unmatched, err := opt.shlex.ProcessWord(word, env)
+			reportUnmatchedVariables(cmd, d.buildArgs, unmatched, &opt)
 			return newword, err
 		})
 		if err != nil {
@@ -768,16 +769,20 @@ func dispatch(d *dispatchState, cmd command, opt dispatchOpt) error {
 	}
 	if ex, ok := cmd.Command.(instructions.SupportsSingleWordExpansionRaw); ok {
 		err := ex.ExpandRaw(func(word string) (string, error) {
+			env, err := d.state.Env(context.TODO())
+			if err != nil {
+				return "", err
+			}
 			lex := shell.NewLex('\\')
 			lex.SkipProcessQuotes = true
-			newword, _, err := lex.ProcessWord(word, env)
+			newword, unmatched, err := lex.ProcessWord(word, env)
+			reportUnmatchedVariables(cmd, d.buildArgs, unmatched, &opt)
 			return newword, err
 		})
 		if err != nil {
 			return err
 		}
 	}
-	validateCommandVar(cmd.Command, env, &opt)
 
 	switch c := cmd.Command.(type) {
 	case *instructions.MaintainerCommand:
@@ -837,7 +842,7 @@ func dispatch(d *dispatchState, cmd command, opt dispatchOpt) error {
 	case *instructions.ShellCommand:
 		err = dispatchShell(d, c)
 	case *instructions.ArgCommand:
-		err = dispatchArg(d, c, opt.metaArgs, &opt)
+		err = dispatchArg(d, c, &opt)
 	case *instructions.CopyCommand:
 		l := opt.buildContext
 		if len(cmd.sources) != 0 {
@@ -1546,10 +1551,9 @@ func dispatchShell(d *dispatchState, c *instructions.ShellCommand) error {
 	return commitToHistory(&d.image, fmt.Sprintf("SHELL %v", c.Shell), false, nil, d.epoch)
 }
 
-func dispatchArg(d *dispatchState, c *instructions.ArgCommand, metaArgs []instructions.KeyValuePairOptional, opt *dispatchOpt) error {
+func dispatchArg(d *dispatchState, c *instructions.ArgCommand, opt *dispatchOpt) error {
 	commitStrs := make([]string, 0, len(c.Args))
 	for _, arg := range c.Args {
-		opt.argCmdVars[arg.Key] = struct{}{}
 		buildArg := setKVValue(arg, opt.buildArgValues)
 
 		commitStr := arg.Key
@@ -1560,7 +1564,7 @@ func dispatchArg(d *dispatchState, c *instructions.ArgCommand, metaArgs []instru
 
 		skipArgInfo := false // skip the arg info if the arg is inherited from global scope
 		if buildArg.Value == nil {
-			for _, ma := range metaArgs {
+			for _, ma := range opt.metaArgs {
 				if ma.Key == buildArg.Key {
 					buildArg.Value = ma.Value
 					skipArgInfo = true
@@ -2046,16 +2050,18 @@ func validateStageNames(stages []instructions.Stage, warn linter.LintWarnFunc) {
 	}
 }
 
-func validateCommandVar(cmd instructions.Command, env []string, opt *dispatchOpt) {
-	if cmdstr, ok := cmd.(fmt.Stringer); ok {
-		_, unmatched, _ := opt.shlex.ProcessWord(cmdstr.String(), env)
-		for arg := range unmatched {
-			_, argCmdOk := opt.argCmdVars[arg]
-			_, nonEnvOk := nonEnvArgs[arg]
-			if !argCmdOk && !nonEnvOk {
-				msg := linter.RuleUndefinedVar.Format(arg)
-				linter.RuleUndefinedVar.Run(opt.warn, cmd.Location(), msg)
-			}
+func reportUnmatchedVariables(cmd instructions.Command, buildArgs []instructions.KeyValuePairOptional, unmatched map[string]struct{}, opt *dispatchOpt) {
+	if len(unmatched) == 0 {
+		return
+	}
+	for _, buildArg := range buildArgs {
+		delete(unmatched, buildArg.Key)
+	}
+	for cmdVar := range unmatched {
+		_, nonEnvOk := nonEnvArgs[cmdVar]
+		if !nonEnvOk {
+			msg := linter.RuleUndefinedVar.Format(cmdVar)
+			linter.RuleUndefinedVar.Run(opt.lintWarn, cmd.Location(), msg)
 		}
 	}
 }
diff --git a/frontend/dockerfile/dockerfile_lint_test.go b/frontend/dockerfile/dockerfile_lint_test.go
index db4f423af1176..e8a7ff7043c25 100644
--- a/frontend/dockerfile/dockerfile_lint_test.go
+++ b/frontend/dockerfile/dockerfile_lint_test.go
@@ -32,7 +32,7 @@ var lintTests = integration.TestFuncs(
 	testMaintainerDeprecated,
 	testWarningsBeforeError,
 	testUndeclaredArg,
-	testUndefinedVars,
+	testUnmatchedVars,
 )
 
 func testStageName(t *testing.T, sb integration.Sandbox) {
@@ -488,7 +488,7 @@ COPY Dockerfile .
 	})
 }
 
-func testUndefinedVars(t *testing.T, sb integration.Sandbox) {
+func testUnmatchedVars(t *testing.T, sb integration.Sandbox) {
 	dockerfile := []byte(`
 FROM scratch
 ARG foo