diff --git a/src/ex_eval.c b/src/ex_eval.c
index 4e38e96..b3c38a1 100644
--- a/src/ex_eval.c
+++ b/src/ex_eval.c
@@ -888,7 +888,8 @@
 }
 
 /*
- * Return TRUE if "arg" is only a variable, register or option name.
+ * Return TRUE if "arg" is only a variable, register, environment variable or
+ * option name.
  */
     int
 cmd_is_name_only(char_u *arg)
@@ -911,6 +912,8 @@
 	    if (STRNCMP("l:", p, 2) == 0 || STRNCMP("g:", p, 2) == 0)
 		p += 2;
 	}
+	else if (*p == '$')
+	    ++p;
 	get_name_len(&p, &alias, FALSE, FALSE);
     }
     name_only = ends_excmd2(arg, skipwhite(p));
diff --git a/src/testdir/test_vim9_cmd.vim b/src/testdir/test_vim9_cmd.vim
index 16f5d55..81899d6 100644
--- a/src/testdir/test_vim9_cmd.vim
+++ b/src/testdir/test_vim9_cmd.vim
@@ -584,6 +584,13 @@
   END
   CheckDefAndScriptFailure(lines, 'E1207:', 2)
   &g:showbreak = ''
+
+  lines =<< trim END
+      $SomeEnv = 'value'
+      $SomeEnv
+  END
+  CheckDefAndScriptFailure(lines, 'E1207:', 2)
+  $SomeEnv = ''
 enddef
 
 def Test_environment_use_linebreak()
diff --git a/src/version.c b/src/version.c
index ea77645..e479630 100644
--- a/src/version.c
+++ b/src/version.c
@@ -758,6 +758,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    3656,
+/**/
     3655,
 /**/
     3654,