diff --git a/marimo/_convert/ipynb/to_ir.py b/marimo/_convert/ipynb/to_ir.py
index 63e1f262965..1b31401bfee 100644
--- a/marimo/_convert/ipynb/to_ir.py
+++ b/marimo/_convert/ipynb/to_ir.py
@@ -407,9 +407,18 @@ def magic_env(source: str, command: str) -> str:
         os.environ['VAR_NAME'] = 'VALUE'
         """
 
-        del command
-        _key, value = source.split("=", 1)
-        return f"import os\nos.environ[{_key!r}] = {value!r}"
+        if "=" not in source:
+            return magic_remove(source, command)
+        key, value = source.split("=", 1)
+        key = key.strip()
+        value = value.strip()
+        if (
+            len(value) >= 2
+            and value[0] == value[-1]
+            and value[0] in ("'", '"')
+        ):
+            value = value[1:-1]
+        return f"import os\nos.environ[{key!r}] = {value!r}"
 
     def comment_out_code(source: str) -> str:
         if source.strip():
diff --git a/tests/_convert/ipynb/test_ipynb_to_ir.py b/tests/_convert/ipynb/test_ipynb_to_ir.py
index aff574ce76d..d9cbf0880ba 100644
--- a/tests/_convert/ipynb/test_ipynb_to_ir.py
+++ b/tests/_convert/ipynb/test_ipynb_to_ir.py
@@ -407,6 +407,25 @@ def test_transform_magic_commands_complex():
     assert result == expected
 
 
+def test_transform_magic_env_strips_quotes_and_spacing():
+    sources = [
+        '%env VAR="hello world"',
+        "%env PATH",
+        "%env FOO=bar",
+        "%env VAR = value",
+    ]
+    result = transform_magic_commands(sources)
+    assert result == [
+        "import os\nos.environ['VAR'] = 'hello world'",
+        (
+            "# magic command not supported in marimo; please file an issue to add support\n"
+            "# %env PATH"
+        ),
+        "import os\nos.environ['FOO'] = 'bar'",
+        "import os\nos.environ['VAR'] = 'value'",
+    ]
+
+
 def test_transform_exclamation_mark_complex():
     sources = [
         "!pip install package1 package2",