diff --git a/dotenv/parser.go b/dotenv/parser.go
index e049123da..ecb94ee99 100644
--- a/dotenv/parser.go
+++ b/dotenv/parser.go
@@ -37,7 +37,6 @@ func parseBytes(src []byte, out map[string]string, lookupFn LookupFn) error {
 		}
 
 		if inherited {
-
 			value, ok := lookupFn(key)
 			if ok {
 				out[key] = value
@@ -50,9 +49,6 @@ func parseBytes(src []byte, out map[string]string, lookupFn LookupFn) error {
 		if err != nil {
 			return err
 		}
-		if lookUpValue, ok := lookupFn(key); ok {
-			value = lookUpValue
-		}
 
 		out[key] = value
 		cutset = left
diff --git a/loader/loader.go b/loader/loader.go
index 2c115e3c1..43003526e 100644
--- a/loader/loader.go
+++ b/loader/loader.go
@@ -623,6 +623,9 @@ func resolveEnvironment(serviceConfig *types.ServiceConfig, workingDir string, l
 	environment := types.MappingWithEquals{}
 
 	if len(serviceConfig.EnvFile) > 0 {
+		if serviceConfig.Environment == nil {
+			serviceConfig.Environment = types.MappingWithEquals{}
+		}
 		for _, envFile := range serviceConfig.EnvFile {
 			filePath := absPath(workingDir, envFile)
 			file, err := os.Open(filePath)