diff --git a/lib/main.js b/lib/main.js
index ef74a7bc..46c97f38 100644
--- a/lib/main.js
+++ b/lib/main.js
@@ -30,6 +30,13 @@ function parse (src) {
       // remove any surrounding quotes and extra spaces
       value = value.replace(/(^['"]|['"]$)/g, '').trim()
 
+      // set booleans appropriately instead of boolean strings
+      if (value === 'true') {
+        value = true
+      } else if (value === 'false') {
+        value = false
+      }
+
       obj[key] = value
     }
   })
diff --git a/test/.env b/test/.env
index dde822f5..82e92995 100644
--- a/test/.env
+++ b/test/.env
@@ -16,3 +16,4 @@ RETAIN_INNER_QUOTES={"foo": "bar"}
 RETAIN_INNER_QUOTES_AS_STRING='{"foo": "bar"}'
 INCLUDE_SPACE=some spaced out string
 USERNAME="therealnerdybeast@example.tld"
+FALSEY_VALUE=false
diff --git a/test/main.js b/test/main.js
index f373ed50..ee77dd99 100644
--- a/test/main.js
+++ b/test/main.js
@@ -179,5 +179,10 @@ describe('dotenv', function () {
       parsed.should.have.property('USERNAME', 'therealnerdybeast@example.tld')
       done()
     })
+
+    it('parses booleans correctly', function (done) {
+      parsed.should.have.property('FALSEY_VALUE', false)
+      done()
+    })
   })
 })