diff --git a/src/os_win32.c b/src/os_win32.c
index 2594aee..f394979 100644
--- a/src/os_win32.c
+++ b/src/os_win32.c
@@ -4948,24 +4948,6 @@
     if (ga_grow(gap, 1) == FAIL)
 	return;
 
-    if (base)
-    {
-	WCHAR	*p = (WCHAR*) base;
-
-	// for last \0
-	if (ga_grow(gap, 1) == FAIL)
-	    return;
-
-	while (*p != 0 || *(p + 1) != 0)
-	{
-	    if (ga_grow(gap, 1) == OK)
-		*((WCHAR*)gap->ga_data + gap->ga_len++) = *p;
-	    p++;
-	}
-	FreeEnvironmentStrings(base);
-	*((WCHAR*)gap->ga_data + gap->ga_len++) = L'\0';
-    }
-
     if (env != NULL)
     {
 	for (hi = env->dv_hashtab.ht_array; todo > 0; ++hi)
@@ -4997,6 +4979,24 @@
 	}
     }
 
+    if (base)
+    {
+	WCHAR	*p = (WCHAR*) base;
+
+	// for last \0
+	if (ga_grow(gap, 1) == FAIL)
+	    return;
+
+	while (*p != 0 || *(p + 1) != 0)
+	{
+	    if (ga_grow(gap, 1) == OK)
+		*((WCHAR*)gap->ga_data + gap->ga_len++) = *p;
+	    p++;
+	}
+	FreeEnvironmentStrings(base);
+	*((WCHAR*)gap->ga_data + gap->ga_len++) = L'\0';
+    }
+
 # if defined(FEAT_CLIENTSERVER) || defined(FEAT_TERMINAL)
     {
 #  ifdef FEAT_CLIENTSERVER
diff --git a/src/testdir/test_channel.vim b/src/testdir/test_channel.vim
index ebcd76e..16fe5c7 100644
--- a/src/testdir/test_channel.vim
+++ b/src/testdir/test_channel.vim
@@ -2006,3 +2006,12 @@
   sleep 10m
   call assert_equal(-1, job_info(g:job).exitval)
 endfunc
+
+func Test_issue_5485()
+  let $VAR1 = 'global'
+  let g:Ch_reply = ""
+  let l:job = job_start([&shell, &shellcmdflag, has('win32') ? 'echo %VAR1% %VAR2%' : 'echo $VAR1 $VAR2'], {'env': {'VAR1': 'local', 'VAR2': 'local'}, 'callback': 'Ch_handler'})
+  let g:Ch_job = l:job
+  call WaitForAssert({-> assert_equal("local local", trim(g:Ch_reply))})
+  unlet $VAR1
+endfunc
diff --git a/src/version.c b/src/version.c
index 61a9f95..cf96f40 100644
--- a/src/version.c
+++ b/src/version.c
@@ -743,6 +743,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    239,
+/**/
     238,
 /**/
     237,