diff --git a/openpype/lib/applications.py b/openpype/lib/applications.py
index a7dcb6dd55..9866400928 100644
--- a/openpype/lib/applications.py
+++ b/openpype/lib/applications.py
@@ -1159,6 +1159,9 @@ def prepare_host_environments(data, implementation_envs=True):
 def apply_project_environments_value(project_name, env, project_settings=None):
     """Apply project specific environments on passed environments.
 
+    The enviornments are applied on passed `env` argument value so it is not
+    required to apply changes back.
+
     Args:
         project_name (str): Name of project for which environemnts should be
             received.
@@ -1167,6 +1170,9 @@ def apply_project_environments_value(project_name, env, project_settings=None):
         project_settings (dict): Project settings for passed project name.
             Optional if project settings are already prepared.
 
+    Returns:
+        dict: Passed env values with applied project environments.
+
     Raises:
         KeyError: If project settings do not contain keys for project specific
             environments.
@@ -1177,10 +1183,9 @@ def apply_project_environments_value(project_name, env, project_settings=None):
         project_settings = get_project_settings(project_name)
 
     env_value = project_settings["global"]["project_environments"]
-    if not env_value:
-        return env
-    parsed = acre.parse(env_value)
-    return _merge_env(parsed, env)
+    if env_value:
+        env.update(_merge_env(acre.parse(env_value), env))
+    return env
 
 
 def prepare_context_environments(data):
@@ -1209,9 +1214,8 @@ def prepare_context_environments(data):
 
     # Load project specific environments
     project_name = project_doc["name"]
-    data["env"] = apply_project_environments_value(
-        project_name, data["env"]
-    )
+    # Apply project specific environments on current env value
+    apply_project_environments_value(project_name, data["env"])
 
     app = data["app"]
     workdir_data = get_workdir_data(