diff --git a/platform/util/src/com/intellij/util/EnvironmentUtil.java b/platform/util/src/com/intellij/util/EnvironmentUtil.java
index 6b7a47bf5a95..55e9a9bd2977 100644
--- a/platform/util/src/com/intellij/util/EnvironmentUtil.java
+++ b/platform/util/src/com/intellij/util/EnvironmentUtil.java
@@ -54,13 +54,6 @@ public class EnvironmentUtil {
 
   private static final Future<Map<String, String>> ourEnvGetter;
 
-  /**
-   * String that is used as a delimiter for referencing parent environment variable.
-   * <code>"%"</code> on Microsoft Windows;
-   * <code>"$"</code> on Unix systems
-   */
-  public static final String PARENT_ENV_KEY_DELIMITER = SystemInfo.isWindows ? "%" : "$";
-
   static {
     if (SystemInfo.isMac &&
         "unlocked".equals(System.getProperty("__idea.mac.env.lock")) &&
@@ -381,7 +374,7 @@ public class EnvironmentUtil {
   }
 
   public static void inlineParentOccurrences(@NotNull Map<String, String> envs) {
-    inlineParentOccurrences(envs, getEnvironmentMap());
+    inlineParentOccurrences(envs, new HashMap<String, String>(System.getenv()));
   }
 
   public static void inlineParentOccurrences(@NotNull Map<String, String> envs, @NotNull Map<String, String> parentEnv) {
@@ -389,26 +382,18 @@ public class EnvironmentUtil {
       String key = entry.getKey();
       String value = entry.getValue();
       if (value != null) {
-        final String parentVal = parentEnv.get(key);
-        if (parentVal != null) {
-          StringBuilder newValue = new StringBuilder();
-          final String keySubstitution = PARENT_ENV_KEY_DELIMITER + key + PARENT_ENV_KEY_DELIMITER;
-          for (String part : StringUtil.split(value, File.pathSeparator)) {
-            if (SystemInfo.isWindows) {
-              newValue.append(part.equalsIgnoreCase(keySubstitution) ? parentVal : part);
-            }
-            else {
-              newValue.append(part.equals(keySubstitution) ? parentVal : part);
-            }
-            newValue.append(File.pathSeparator);
-          }
-          newValue.trimToSize();
-          envs.put(key, newValue.substring(0, newValue.length() - File.pathSeparator.length()));
+        String parentVal = parentEnv.get(key);
+        if (parentVal != null && containsEnvKeySubstitution(key, value)) {
+          envs.put(key, value.replace("$" + key + "$", parentVal));
         }
       }
     }
   }
 
+  private static boolean containsEnvKeySubstitution(final String envKey, final String val) {
+    return ArrayUtil.find(val.split(File.pathSeparator), "$" + envKey + "$") != -1;
+  }
+
   @TestOnly
   static Map<String, String> testLoader() {
     try {
diff --git a/platform/util/testSrc/com/intellij/util/EnvironmentUtilTest.java b/platform/util/testSrc/com/intellij/util/EnvironmentUtilTest.java
index b2aa057c93b1..17afc9565792 100644
--- a/platform/util/testSrc/com/intellij/util/EnvironmentUtilTest.java
+++ b/platform/util/testSrc/com/intellij/util/EnvironmentUtilTest.java
@@ -3,9 +3,6 @@ package com.intellij.util;
 
 import com.intellij.openapi.util.SystemInfo;
 import com.intellij.openapi.util.io.FileUtil;
-import com.intellij.util.containers.ContainerUtil;
-import com.intellij.util.text.CaseInsensitiveStringHashingStrategy;
-import org.jetbrains.annotations.NotNull;
 import org.junit.Test;
 
 import java.io.File;
@@ -49,53 +46,6 @@ public class EnvironmentUtilTest {
     }
   }
 
-  @Test
-  public void inlineParentOccurrences() {
-    Map<String, String> parentEnv = SystemInfo.isWindows ?
-                                    ContainerUtil.newTroveMap(CaseInsensitiveStringHashingStrategy.INSTANCE) :
-                                    ContainerUtil.newHashMap();
-    parentEnv.put("Foo", "foo/bar");
-    parentEnv.put("smth", "another()thing");
-    parentEnv.put("tmp", "tempo#rary");
-    parentEnv.put("123", "50m37h1ng");
-
-    Map<String, String> childEnv = ContainerUtil.newHashMap();
-    childEnv.put("no parent", "no parent indeed");
-    childEnv.put("Foo", "have parent but no parent reference");
-    childEnv.put("smth", "have parent and reference" + File.pathSeparator +
-                         EnvironmentUtil.PARENT_ENV_KEY_DELIMITER + "smth" + EnvironmentUtil.PARENT_ENV_KEY_DELIMITER +
-                         File.pathSeparator + "flavor text");
-    childEnv.put("TMP", "case sensitive" +
-                        File.pathSeparator +
-                        EnvironmentUtil.PARENT_ENV_KEY_DELIMITER + "Tmp" + EnvironmentUtil.PARENT_ENV_KEY_DELIMITER);
-
-    EnvironmentUtil.inlineParentOccurrences(childEnv, parentEnv);
-
-    assertEnvVariable(childEnv, "no parent", "no parent indeed");
-    assertEnvVariable(childEnv, "Foo", "have parent but no parent reference");
-    assertEnvVariable(childEnv, "smth", "have parent and reference" + File.pathSeparator +
-                                        "another()thing" +
-                                        File.pathSeparator + "flavor text");
-    if (SystemInfo.isWindows) {
-      assertEnvVariable(childEnv, "TMP", "case sensitive" +
-                                         File.pathSeparator + "tempo#rary");
-    }
-    else {
-      assertEnvVariable(childEnv, "TMP", "case sensitive" +
-                                         File.pathSeparator +
-                                         EnvironmentUtil.PARENT_ENV_KEY_DELIMITER + "Tmp" + EnvironmentUtil.PARENT_ENV_KEY_DELIMITER);
-    }
-    assertNull(childEnv.get("123"));
-  }
-
-  private static void assertEnvVariable(@NotNull Map<String, String> env,
-                                        @NotNull String expectedKey,
-                                        @NotNull String expectedValue) {
-    String actualValue = env.get(expectedKey);
-    assertNotNull(actualValue);
-    assertEquals(expectedValue, actualValue);
-  }
-
   @Test(timeout = 30000)
   public void load() {
     assumeTrue(SystemInfo.isUnix);