diff --git a/_tests/integration/step_info_test.go b/_tests/integration/step_info_test.go
index e272558c..c7bbf059 100644
--- a/_tests/integration/step_info_test.go
+++ b/_tests/integration/step_info_test.go
@@ -3,6 +3,7 @@ package integration
 import (
 	"strings"
 	"testing"
+	"os"
 
 	"github.com/bitrise-io/go-utils/command"
 	"github.com/stretchr/testify/require"
@@ -47,6 +48,14 @@ func TestStepInfo(t *testing.T) {
 		require.Equal(t, localTestStepDefinitionJSON, out)
 	}
 
+	t.Log("local step - environment variable path --format json")
+	{
+		os.Setenv("STEP", ".")
+		out, err := command.New(binPath(), "step-info", "--collection", "path", "--id", "$STEP/test-step", "--format", "json").RunAndReturnTrimmedCombinedOutput()
+		require.NoError(t, err, out)
+		require.Equal(t, localTestStepDefinitionJSON, out)
+	}
+
 	t.Log("git step")
 	{
 		out, err := command.New(binPath(), "step-info", "--collection", "git", "--id", "https://github.com/bitrise-steplib/steps-xamarin-user-management.git", "--version", "1.0.3").RunAndReturnTrimmedCombinedOutput()
diff --git a/cli/step_info.go b/cli/step_info.go
index 9114d0df..168bb20a 100644
--- a/cli/step_info.go
+++ b/cli/step_info.go
@@ -2,6 +2,7 @@ package cli
 
 import (
 	"fmt"
+	"os"
 	"path/filepath"
 	"time"
 
@@ -162,7 +163,8 @@ func QueryStepInfoFromGit(gitURL, tagOrBranch string) (models.StepInfoModel, err
 }
 
 // QueryStepInfoFromPath returns step info from a local path source
-func QueryStepInfoFromPath(dir string) (models.StepInfoModel, error) {
+func QueryStepInfoFromPath(envdir string) (models.StepInfoModel, error) {
+	dir := os.ExpandEnv(envdir)
 	stepDefinitionPth := filepath.Join(dir, "step.yml")
 	if exist, err := pathutil.IsPathExists(stepDefinitionPth); err != nil {
 		return models.StepInfoModel{}, fmt.Errorf("query local step info: check if step.yml exist: %s", err)