diff --git a/Makefile.PL b/Makefile.PL
index 2ab0438..c9a2e3e 100644
--- a/Makefile.PL
+++ b/Makefile.PL
@@ -4,9 +4,9 @@ WriteMakefile(
     NAME          => 'pshell',
     VERSION_FROM  => 'lib/History/SQLite.pm',
     PREREQ_PM     => {
-        'DBI'           => 0,
-        'DBD::SQLite'   => 0,
-        'Term::ReadLine' => 0,
-        'Cwd'           => 0,
+        'DBI'               => 0,
+        'DBD::SQLite'       => 0,
+        'Term::ReadLine'    => 0,
+        'Cwd'               => 0,
     },
 );
diff --git a/lib/Environment/SQLite.pm b/lib/Environment/SQLite.pm
new file mode 100644
index 0000000..3140930
--- /dev/null
+++ b/lib/Environment/SQLite.pm
@@ -0,0 +1,79 @@
+package Environment::SQLite;
+
+use DBI;
+use Cwd;
+
+sub new {
+    my ($class, %args) = @_;
+    
+    my $self = bless {
+        db_path => $args{db_path} || 'pshell_env.db'
+    }, $class;
+    
+    # Convert to absolute path
+    $self->{db_path} = getcwd() . '/' . $self->{db_path} unless $self->{db_path} =~ m|^/|;
+    
+    $self->_init_db;
+    
+    return $self;
+}
+
+sub _init_db {
+    my ($self) = @_;
+    
+    my $dbh = DBI->connect("dbi:SQLite:dbname=$self->{db_path}", "", "",
+        { RaiseError => 1, PrintError => 0 });
+    
+    $dbh->do(<<"SQL");
+    CREATE TABLE IF NOT EXISTS environment (
+        name TEXT PRIMARY KEY,
+        value TEXT NOT NULL
+    )
+SQL
+    
+    $dbh->disconnect;
+}
+
+sub set {
+    my ($self, $name, $value) = @_;
+    
+    my $dbh = DBI->connect("dbi:SQLite:dbname=$self->{db_path}", "", "",
+        { RaiseError => 1, PrintError => 0 });
+    
+    $dbh->do("REPLACE INTO environment (name, value) VALUES (?, ?)", undef, $name, $value);
+    
+    $dbh->disconnect;
+}
+
+sub get {
+    my ($self, $name) = @_;
+    
+    my $dbh = DBI->connect("dbi:SQLite:dbname=$self->{db_path}", "", "",
+        { RaiseError => 1, PrintError => 0 });
+    
+    my ($value) = $dbh->selectrow_array(
+        "SELECT value FROM environment WHERE name = ?", undef, $name);
+    
+    $dbh->disconnect;
+    return $value;
+}
+
+sub get_all {
+    my ($self) = @_;
+    
+    my $dbh = DBI->connect("dbi:SQLite:dbname=$self->{db_path}", "", "",
+        { RaiseError => 1, PrintError => 0 });
+    
+    my $sth = $dbh->prepare("SELECT name, value FROM environment");
+    $sth->execute;
+    
+    my %env;
+    while (my $row = $sth->fetchrow_arrayref) {
+        $env{$row->[0]} = $row->[1];
+    }
+    
+    $dbh->disconnect;
+    return %env;
+}
+
+1;
diff --git a/pshell.pl b/pshell.pl
index 8d91546..d126c38 100755
--- a/pshell.pl
+++ b/pshell.pl
@@ -2,13 +2,17 @@
 
 use lib 'lib';
 use History::SQLite;
+use Environment::SQLite;
 use Term::ReadLine;
 use Cwd;
 
-# Initialize command history
+# Initialize command history and environment
 my $history = History::SQLite->new(
     db_path => 'pshell_history.db'
 );
+my $env = Environment::SQLite->new(
+    db_path => 'pshell_env.db'
+);
 
 print "Perl Shell (pshell) - Type 'exit' to quit\n";
 
@@ -19,6 +23,10 @@ $term->ornaments(0);
 my @history = $history->get_all;
 $term->addhistory($_) for @history;
 
+# Load environment variables
+my %env_vars = $env->get_all;
+$ENV{$_} = $env_vars{$_} for keys %env_vars;
+
 while (1) {
     my $cwd = getcwd();
     my $prompt = "pshell:$cwd> ";
@@ -38,6 +46,19 @@ while (1) {
         next;
     }
     
+    # Handle environment variable assignment
+    if ($command =~ /^export\s+(\w+)=(.*)/) {
+        $ENV{$1} = $2;
+        $env->set($1, $2);
+        next;
+    }
+    
+    # Handle environment variable display
+    if ($command eq 'env') {
+        print "$_=$ENV{$_}\n" for sort keys %ENV;
+        next;
+    }
+    
     # Save command to history
     $history->add($command);
     $term->addhistory($command);
diff --git a/pshell_env.db b/pshell_env.db
new file mode 100644
index 0000000..e57dab3
Binary files /dev/null and b/pshell_env.db differ