diff --git a/app/Models/EnvironmentVariable.php b/app/Models/EnvironmentVariable.php
index 0a004f765..cf60d5ab5 100644
--- a/app/Models/EnvironmentVariable.php
+++ b/app/Models/EnvironmentVariable.php
@@ -214,37 +214,7 @@ protected function isShared(): Attribute
 
     private function get_real_environment_variables(?string $environment_variable = null, $resource = null)
     {
-        if ((is_null($environment_variable) && $environment_variable === '') || is_null($resource)) {
-            return null;
-        }
-        $environment_variable = trim($environment_variable);
-        $sharedEnvsFound = str($environment_variable)->matchAll('/{{(.*?)}}/');
-        if ($sharedEnvsFound->isEmpty()) {
-            return $environment_variable;
-        }
-        foreach ($sharedEnvsFound as $sharedEnv) {
-            $type = str($sharedEnv)->trim()->match('/(.*?)\./');
-            if (! collect(SHARED_VARIABLE_TYPES)->contains($type)) {
-                continue;
-            }
-            $variable = str($sharedEnv)->trim()->match('/\.(.*)/');
-            if ($type->value() === 'environment') {
-                $id = $resource->environment->id;
-            } elseif ($type->value() === 'project') {
-                $id = $resource->environment->project->id;
-            } elseif ($type->value() === 'team') {
-                $id = $resource->team()->id;
-            }
-            if (is_null($id)) {
-                continue;
-            }
-            $environment_variable_found = SharedEnvironmentVariable::where('type', $type)->where('key', $variable)->where('team_id', $resource->team()->id)->where("{$type}_id", $id)->first();
-            if ($environment_variable_found) {
-                $environment_variable = str($environment_variable)->replace("{{{$sharedEnv}}}", $environment_variable_found->value);
-            }
-        }
-
-        return str($environment_variable)->value();
+        return resolveSharedEnvironmentVariables($environment_variable, $resource);
     }
 
     private function get_environment_variables(?string $environment_variable = null): ?string
diff --git a/bootstrap/helpers/parsers.php b/bootstrap/helpers/parsers.php
index cb9811e46..e84df55f9 100644
--- a/bootstrap/helpers/parsers.php
+++ b/bootstrap/helpers/parsers.php
@@ -1294,6 +1294,13 @@ function applicationParser(Application $resource, int $pull_request_id = 0, ?int
                     // Otherwise keep empty string as-is
                 }
 
+                // Resolve shared variable patterns like {{environment.VAR}}, {{project.VAR}}, {{team.VAR}}
+                // Without this, literal {{...}} strings end up in the compose environment: section,
+                // which takes precedence over the resolved values in the .env file (env_file:)
+                if (is_string($value) && str_contains($value, '{{')) {
+                    $value = resolveSharedEnvironmentVariables($value, $resource);
+                }
+
                 return $value;
             });
         }
@@ -2558,6 +2565,13 @@ function serviceParser(Service $resource): Collection
                     // Otherwise keep empty string as-is
                 }
 
+                // Resolve shared variable patterns like {{environment.VAR}}, {{project.VAR}}, {{team.VAR}}
+                // Without this, literal {{...}} strings end up in the compose environment: section,
+                // which takes precedence over the resolved values in the .env file (env_file:)
+                if (is_string($value) && str_contains($value, '{{')) {
+                    $value = resolveSharedEnvironmentVariables($value, $resource);
+                }
+
                 return $value;
             });
         }
diff --git a/bootstrap/helpers/shared.php b/bootstrap/helpers/shared.php
index b58f2ab7f..e81d2a467 100644
--- a/bootstrap/helpers/shared.php
+++ b/bootstrap/helpers/shared.php
@@ -3972,3 +3972,49 @@ function downsampleLTTB(array $data, int $threshold): array
 
     return $sampled;
 }
+
+/**
+ * Resolve shared environment variable patterns like {{environment.VAR}}, {{project.VAR}}, {{team.VAR}}.
+ *
+ * This is the canonical implementation used by both EnvironmentVariable::realValue and the compose parsers
+ * to ensure shared variable references are replaced with their actual values.
+ */
+function resolveSharedEnvironmentVariables(?string $value, $resource): ?string
+{
+    if (is_null($value) || $value === '' || is_null($resource)) {
+        return $value;
+    }
+    $value = trim($value);
+    $sharedEnvsFound = str($value)->matchAll('/{{(.*?)}}/');
+    if ($sharedEnvsFound->isEmpty()) {
+        return $value;
+    }
+    foreach ($sharedEnvsFound as $sharedEnv) {
+        $type = str($sharedEnv)->trim()->match('/(.*?)\./');
+        if (! collect(SHARED_VARIABLE_TYPES)->contains($type)) {
+            continue;
+        }
+        $variable = str($sharedEnv)->trim()->match('/\.(.*)/');
+        $id = null;
+        if ($type->value() === 'environment') {
+            $id = $resource->environment->id;
+        } elseif ($type->value() === 'project') {
+            $id = $resource->environment->project->id;
+        } elseif ($type->value() === 'team') {
+            $id = $resource->team()->id;
+        }
+        if (is_null($id)) {
+            continue;
+        }
+        $found = \App\Models\SharedEnvironmentVariable::where('type', $type)
+            ->where('key', $variable)
+            ->where('team_id', $resource->team()->id)
+            ->where("{$type}_id", $id)
+            ->first();
+        if ($found) {
+            $value = str($value)->replace("{{{$sharedEnv}}}", $found->value);
+        }
+    }
+
+    return str($value)->value();
+}
diff --git a/tests/Feature/SharedVariableComposeResolutionTest.php b/tests/Feature/SharedVariableComposeResolutionTest.php
new file mode 100644
index 000000000..5ffb027f0
--- /dev/null
+++ b/tests/Feature/SharedVariableComposeResolutionTest.php
@@ -0,0 +1,128 @@
+<?php
+
+use App\Models\Application;
+use App\Models\Environment;
+use App\Models\EnvironmentVariable;
+use App\Models\Project;
+use App\Models\SharedEnvironmentVariable;
+use App\Models\Team;
+use App\Models\User;
+use Illuminate\Foundation\Testing\RefreshDatabase;
+
+uses(RefreshDatabase::class);
+
+beforeEach(function () {
+    $this->user = User::factory()->create();
+    $this->team = Team::factory()->create();
+    $this->user->teams()->attach($this->team);
+
+    $this->project = Project::factory()->create(['team_id' => $this->team->id]);
+    $this->environment = Environment::factory()->create([
+        'project_id' => $this->project->id,
+    ]);
+
+    $this->application = Application::factory()->create([
+        'environment_id' => $this->environment->id,
+    ]);
+});
+
+test('resolveSharedEnvironmentVariables resolves environment-scoped variable', function () {
+    SharedEnvironmentVariable::create([
+        'key' => 'DRAGONFLY_URL',
+        'value' => 'redis://dragonfly:6379',
+        'type' => 'environment',
+        'environment_id' => $this->environment->id,
+        'team_id' => $this->team->id,
+    ]);
+
+    $resolved = resolveSharedEnvironmentVariables('{{environment.DRAGONFLY_URL}}', $this->application);
+    expect($resolved)->toBe('redis://dragonfly:6379');
+});
+
+test('resolveSharedEnvironmentVariables resolves project-scoped variable', function () {
+    SharedEnvironmentVariable::create([
+        'key' => 'DB_HOST',
+        'value' => 'postgres.internal',
+        'type' => 'project',
+        'project_id' => $this->project->id,
+        'team_id' => $this->team->id,
+    ]);
+
+    $resolved = resolveSharedEnvironmentVariables('{{project.DB_HOST}}', $this->application);
+    expect($resolved)->toBe('postgres.internal');
+});
+
+test('resolveSharedEnvironmentVariables resolves team-scoped variable', function () {
+    SharedEnvironmentVariable::create([
+        'key' => 'GLOBAL_API_KEY',
+        'value' => 'sk-123456',
+        'type' => 'team',
+        'team_id' => $this->team->id,
+    ]);
+
+    $resolved = resolveSharedEnvironmentVariables('{{team.GLOBAL_API_KEY}}', $this->application);
+    expect($resolved)->toBe('sk-123456');
+});
+
+test('resolveSharedEnvironmentVariables returns original when no match found', function () {
+    $resolved = resolveSharedEnvironmentVariables('{{environment.NONEXISTENT}}', $this->application);
+    expect($resolved)->toBe('{{environment.NONEXISTENT}}');
+});
+
+test('resolveSharedEnvironmentVariables handles null and empty values', function () {
+    expect(resolveSharedEnvironmentVariables(null, $this->application))->toBeNull();
+    expect(resolveSharedEnvironmentVariables('', $this->application))->toBe('');
+    expect(resolveSharedEnvironmentVariables('plain-value', $this->application))->toBe('plain-value');
+});
+
+test('resolveSharedEnvironmentVariables resolves multiple variables in one string', function () {
+    SharedEnvironmentVariable::create([
+        'key' => 'HOST',
+        'value' => 'myhost',
+        'type' => 'environment',
+        'environment_id' => $this->environment->id,
+        'team_id' => $this->team->id,
+    ]);
+    SharedEnvironmentVariable::create([
+        'key' => 'PORT',
+        'value' => '6379',
+        'type' => 'environment',
+        'environment_id' => $this->environment->id,
+        'team_id' => $this->team->id,
+    ]);
+
+    $resolved = resolveSharedEnvironmentVariables('redis://{{environment.HOST}}:{{environment.PORT}}', $this->application);
+    expect($resolved)->toBe('redis://myhost:6379');
+});
+
+test('resolveSharedEnvironmentVariables handles spaces in pattern', function () {
+    SharedEnvironmentVariable::create([
+        'key' => 'MY_VAR',
+        'value' => 'resolved-value',
+        'type' => 'environment',
+        'environment_id' => $this->environment->id,
+        'team_id' => $this->team->id,
+    ]);
+
+    $resolved = resolveSharedEnvironmentVariables('{{ environment.MY_VAR }}', $this->application);
+    expect($resolved)->toBe('resolved-value');
+});
+
+test('EnvironmentVariable real_value still resolves shared variables after refactor', function () {
+    SharedEnvironmentVariable::create([
+        'key' => 'DRAGONFLY_URL',
+        'value' => 'redis://dragonfly:6379',
+        'type' => 'environment',
+        'environment_id' => $this->environment->id,
+        'team_id' => $this->team->id,
+    ]);
+
+    $env = EnvironmentVariable::create([
+        'key' => 'REDIS_URL',
+        'value' => '{{environment.DRAGONFLY_URL}}',
+        'resourceable_id' => $this->application->id,
+        'resourceable_type' => $this->application->getMorphClass(),
+    ]);
+
+    expect($env->real_value)->toBe('redis://dragonfly:6379');
+});