diff --git a/gns3server/compute/docker/docker_vm.py b/gns3server/compute/docker/docker_vm.py
index 7318b755..66e5d6f7 100644
--- a/gns3server/compute/docker/docker_vm.py
+++ b/gns3server/compute/docker/docker_vm.py
@@ -325,15 +325,20 @@ class DockerVM(BaseNode):
         # Give the information to the container the list of volume path mounted
         params["Env"].append("GNS3_VOLUMES={}".format(":".join(self._volumes)))
 
-        if self.project.variables:
-            for var in self.project.variables:
-                params["Env"].append("{}={}".format(var["name"], var.get('value', '')))
+        variables = self.project.variables
+        if not variables:
+            variables = []
+
+        for var in variables:
+            formatted = self._format_env(variables, var.get('value', ''))
+            params["Env"].append("{}={}".format(var["name"], formatted))
 
         if self._environment:
             for e in self._environment.strip().split("\n"):
                 e = e.strip()
                 if not e.startswith("GNS3_"):
-                    params["Env"].append(e)
+                    formatted = self._format_env(variables, e)
+                    params["Env"].append(formatted)
 
         if self._console_type == "vnc":
             yield from self._start_vnc()
@@ -352,6 +357,11 @@ class DockerVM(BaseNode):
             name=self._name, id=self._id))
         return True
 
+    def _format_env(self, variables, env):
+        for variable in variables:
+            env = env.replace('${' + variable["name"] + '}', variable.get("value", ""))
+        return env
+
     def _format_extra_hosts(self, extra_hosts):
         lines = [h.strip() for h in self._extra_hosts.split("\n") if h.strip() != ""]
         hosts = []
diff --git a/tests/compute/docker/test_docker_vm.py b/tests/compute/docker/test_docker_vm.py
index 1fb6012b..f51e8c9c 100644
--- a/tests/compute/docker/test_docker_vm.py
+++ b/tests/compute/docker/test_docker_vm.py
@@ -259,7 +259,8 @@ def test_create_with_project_variables(loop, project, manager):
 
     project.variables = [
         {"name": "VAR1"},
-        {"name": "VAR2", "value": "VAL1"}
+        {"name": "VAR2", "value": "VAL1"},
+        {"name": "VAR3", "value": "2x${VAR2}"}
     ]
 
     with asyncio_patch("gns3server.compute.docker.Docker.list_images", return_value=[{"image": "ubuntu"}]):
@@ -269,6 +270,7 @@ def test_create_with_project_variables(loop, project, manager):
             called_kwargs = mock.call_args[1]
             assert "VAR1=" in called_kwargs["data"]["Env"]
             assert "VAR2=VAL1" in called_kwargs["data"]["Env"]
+            assert "VAR3=2xVAL1" in called_kwargs["data"]["Env"]
     project.variables = None