diff --git a/red/runtime/nodes/flows/util.js b/red/runtime/nodes/flows/util.js
index 16b9f461b..e7664715f 100644
--- a/red/runtime/nodes/flows/util.js
+++ b/red/runtime/nodes/flows/util.js
@@ -37,7 +37,8 @@ function diffNodes(oldNode,newNode) {
     return false;
 }
 
-var EnvVarPropertyRE = /^\$\((\S+)\)$/;
+var EnvVarPropertyRE_old = /^\$\((\S+)\)$/;
+var EnvVarPropertyRE = /^\${(\S+)}$/;
 
 function mapEnvVarProperties(obj,prop) {
     if (Buffer.isBuffer(obj[prop])) {
@@ -47,11 +48,9 @@ function mapEnvVarProperties(obj,prop) {
             mapEnvVarProperties(obj[prop],i);
         }
     } else if (typeof obj[prop] === 'string') {
-        var m;
-        if ( (m = EnvVarPropertyRE.exec(obj[prop])) !== null) {
-            if (process.env.hasOwnProperty(m[1])) {
-                obj[prop] = process.env[m[1]];
-            }
+        if (obj[prop][0] === "$" && (EnvVarPropertyRE_old.test(obj[prop]) || EnvVarPropertyRE.test(obj[prop])) ) {
+            var envVar = obj[prop].substring(2,obj[prop].length-1);
+            obj[prop] = process.env.hasOwnProperty(envVar)?process.env[envVar]:obj[prop];
         }
     } else {
         for (var p in obj[prop]) {
@@ -203,7 +202,7 @@ module.exports = {
         var linkMap = {};
 
         var changedTabs = {};
-        
+
         // Look for tabs that have been removed
         for (id in oldConfig.flows) {
             if (oldConfig.flows.hasOwnProperty(id) && (!newConfig.flows.hasOwnProperty(id))) {
diff --git a/test/red/runtime/nodes/flows/util_spec.js b/test/red/runtime/nodes/flows/util_spec.js
index 2cdc72fb3..184aaa70c 100644
--- a/test/red/runtime/nodes/flows/util_spec.js
+++ b/test/red/runtime/nodes/flows/util_spec.js
@@ -35,10 +35,17 @@ describe('flows/util', function() {
     });
 
     describe('#mapEnvVarProperties',function() {
-        it('handles ENV substitutions in an object', function() {
+        before(function() {
             process.env.foo1 = "bar1";
             process.env.foo2 = "bar2";
             process.env.foo3 = "bar3";
+        })
+        after(function() {
+            delete process.env.foo1;
+            delete process.env.foo2;
+            delete process.env.foo3;
+        })
+        it('handles ENV substitutions in an object - $()', function() {
             var foo = {a:"$(foo1)",b:"$(foo2)",c:{d:"$(foo3)"}};
             for (var p in foo) {
                 if (foo.hasOwnProperty(p)) {
@@ -47,6 +54,15 @@ describe('flows/util', function() {
             }
             foo.should.eql({ a: 'bar1', b: 'bar2', c: { d: 'bar3' } } );
         });
+        it('handles ENV substitutions in an object - ${}', function() {
+            var foo = {a:"${foo1}",b:"${foo2}",c:{d:"${foo3}"}};
+            for (var p in foo) {
+                if (foo.hasOwnProperty(p)) {
+                    flowUtil.mapEnvVarProperties(foo,p);
+                }
+            }
+            foo.should.eql({ a: 'bar1', b: 'bar2', c: { d: 'bar3' } } );
+        });
     });
 
     describe('#diffNodes',function() {