diff --git a/src/tools/rust-analyzer/editors/code/package.json b/src/tools/rust-analyzer/editors/code/package.json
index b05be450cbe2..a282eea99973 100644
--- a/src/tools/rust-analyzer/editors/code/package.json
+++ b/src/tools/rust-analyzer/editors/code/package.json
@@ -543,7 +543,8 @@
                         "additionalProperties": {
                             "type": [
                                 "string",
-                                "number"
+                                "number",
+                                "null"
                             ]
                         },
                         "default": null,
diff --git a/src/tools/rust-analyzer/editors/code/src/bootstrap.ts b/src/tools/rust-analyzer/editors/code/src/bootstrap.ts
index c63c6f2f7c38..bddf195803d0 100644
--- a/src/tools/rust-analyzer/editors/code/src/bootstrap.ts
+++ b/src/tools/rust-analyzer/editors/code/src/bootstrap.ts
@@ -187,8 +187,16 @@ async function hasToolchainFileWithRaDeclared(uri: vscode.Uri): Promise<boolean>
 export async function isValidExecutable(path: string, extraEnv: Env): Promise<boolean> {
     log.debug("Checking availability of a binary at", path);
 
+    const newEnv = { ...process.env };
+    for (const [k, v] of Object.entries(extraEnv)) {
+        if (v) {
+            newEnv[k] = v;
+        } else if (k in newEnv) {
+            delete newEnv[k];
+        }
+    }
     const res = await spawnAsync(path, ["--version"], {
-        env: { ...process.env, ...extraEnv },
+        env: newEnv,
     });
 
     if (res.error) {
diff --git a/src/tools/rust-analyzer/editors/code/src/config.ts b/src/tools/rust-analyzer/editors/code/src/config.ts
index ba1c3b01de7e..f36e18a73da0 100644
--- a/src/tools/rust-analyzer/editors/code/src/config.ts
+++ b/src/tools/rust-analyzer/editors/code/src/config.ts
@@ -213,12 +213,13 @@ export class Config {
 
     get serverExtraEnv(): Env {
         const extraEnv =
-            this.get<{ [key: string]: string | number } | null>("server.extraEnv") ?? {};
+            this.get<{ [key: string]: { toString(): string } | null } | null>("server.extraEnv") ??
+            {};
         return substituteVariablesInEnv(
             Object.fromEntries(
                 Object.entries(extraEnv).map(([k, v]) => [
                     k,
-                    typeof v !== "string" ? v.toString() : v,
+                    typeof v === "string" ? v : v?.toString(),
                 ]),
             ),
         );
@@ -398,6 +399,7 @@ export function prepareVSCodeConfig<T>(resp: T): T {
 
 // FIXME: Merge this with `substituteVSCodeVariables` above
 export function substituteVariablesInEnv(env: Env): Env {
+    const depRe = new RegExp(/\${(?<depName>.+?)}/g);
     const missingDeps = new Set<string>();
     // vscode uses `env:ENV_NAME` for env vars resolution, and it's easier
     // to follow the same convention for our dependency tracking
@@ -405,15 +407,16 @@ export function substituteVariablesInEnv(env: Env): Env {
     const envWithDeps = Object.fromEntries(
         Object.entries(env).map(([key, value]) => {
             const deps = new Set<string>();
-            const depRe = new RegExp(/\${(?<depName>.+?)}/g);
-            let match = undefined;
-            while ((match = depRe.exec(value))) {
-                const depName = unwrapUndefinable(match.groups?.["depName"]);
-                deps.add(depName);
-                // `depName` at this point can have a form of `expression` or
-                // `prefix:expression`
-                if (!definedEnvKeys.has(depName)) {
-                    missingDeps.add(depName);
+            if (value) {
+                let match = undefined;
+                while ((match = depRe.exec(value))) {
+                    const depName = unwrapUndefinable(match.groups?.["depName"]);
+                    deps.add(depName);
+                    // `depName` at this point can have a form of `expression` or
+                    // `prefix:expression`
+                    if (!definedEnvKeys.has(depName)) {
+                        missingDeps.add(depName);
+                    }
                 }
             }
             return [`env:${key}`, { deps: [...deps], value }];
@@ -454,11 +457,10 @@ export function substituteVariablesInEnv(env: Env): Env {
     do {
         leftToResolveSize = toResolve.size;
         for (const key of toResolve) {
-            const item = unwrapUndefinable(envWithDeps[key]);
-            if (item.deps.every((dep) => resolved.has(dep))) {
-                item.value = item.value.replace(/\${(?<depName>.+?)}/g, (_wholeMatch, depName) => {
-                    const item = unwrapUndefinable(envWithDeps[depName]);
-                    return item.value;
+            const item = envWithDeps[key];
+            if (item && item.deps.every((dep) => resolved.has(dep))) {
+                item.value = item.value?.replace(/\${(?<depName>.+?)}/g, (_wholeMatch, depName) => {
+                    return envWithDeps[depName]?.value ?? "";
                 });
                 resolved.add(key);
                 toResolve.delete(key);
diff --git a/src/tools/rust-analyzer/editors/code/src/ctx.ts b/src/tools/rust-analyzer/editors/code/src/ctx.ts
index 114952362231..e55754fb9f04 100644
--- a/src/tools/rust-analyzer/editors/code/src/ctx.ts
+++ b/src/tools/rust-analyzer/editors/code/src/ctx.ts
@@ -213,7 +213,14 @@ export class Ctx implements RustAnalyzerExtensionApi {
                     this.refreshServerStatus();
                 },
             );
-            const newEnv = Object.assign({}, process.env, this.config.serverExtraEnv);
+            const newEnv = { ...process.env };
+            for (const [k, v] of Object.entries(this.config.serverExtraEnv)) {
+                if (v) {
+                    newEnv[k] = v;
+                } else if (k in newEnv) {
+                    delete newEnv[k];
+                }
+            }
             const run: lc.Executable = {
                 command: this._serverPath,
                 options: { env: newEnv },
diff --git a/src/tools/rust-analyzer/editors/code/src/util.ts b/src/tools/rust-analyzer/editors/code/src/util.ts
index 83b8abe77731..410b055100a1 100644
--- a/src/tools/rust-analyzer/editors/code/src/util.ts
+++ b/src/tools/rust-analyzer/editors/code/src/util.ts
@@ -14,7 +14,7 @@ export function assert(condition: boolean, explanation: string): asserts conditi
 }
 
 export type Env = {
-    [name: string]: string;
+    [name: string]: string | undefined;
 };
 
 class Log {