diff --git a/dotenv_action.js b/dotenv_action.js
index dc69b96..c7b4b92 100644
--- a/dotenv_action.js
+++ b/dotenv_action.js
@@ -7,15 +7,16 @@ let dotenv_action = function (dotenvFile) {
     }
 
     const dotenv = require('dotenv').config({ path: dotenvFile });
+    const dotenv_expand = require('dotenv-expand').expand(dotenv);
     console.log("loading .env file from " + dotenvFile);
     
     const returnedMap = {};
-    for (const key in dotenv.parsed) {
-        const value = dotenv.parsed[key];
+    for (const key in dotenv_expand.parsed) {
+        const value = dotenv_expand.parsed[key];
         const lowercase_key = key.toLocaleLowerCase()
         returnedMap[lowercase_key] = value;
     }
     return returnedMap;
 }
 
-module.exports = dotenv_action;
\ No newline at end of file
+module.exports = dotenv_action;
diff --git a/fixtures/.expand.env b/fixtures/.expand.env
new file mode 100644
index 0000000..db29f45
--- /dev/null
+++ b/fixtures/.expand.env
@@ -0,0 +1,3 @@
+FIXTURES_3=xyz
+EXPANDED=123-${FIXTURES_3}
+EXPANDED_2=123-$FIXTURES_3
\ No newline at end of file
diff --git a/index.test.js b/index.test.js
index 8223178..8b463da 100644
--- a/index.test.js
+++ b/index.test.js
@@ -11,4 +11,9 @@ test('test runs with different path', () => {
 test('test runs with broken path', () => {
     const dotenv_action = require('./dotenv_action');
     expect(() => { dotenv_action("nosuchfile")}).toThrow(Error);
+})
+
+test('test runs with expanded values', () => {
+    const dotenv_action = require('./dotenv_action');
+    expect(dotenv_action("fixtures/.expand.env")).toEqual({ fixtures_3: "xyz", "expanded": "123-xyz", "expanded_2": "123-xyz" });
 })
\ No newline at end of file
diff --git a/package-lock.json b/package-lock.json
index 890a1f9..217e262 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -10,7 +10,8 @@
       "license": "MIT",
       "dependencies": {
         "@actions/core": "^1.9.1",
-        "dotenv": "^8.2.0"
+        "dotenv": "^8.2.0",
+        "dotenv-expand": "^8.0.3"
       },
       "devDependencies": {
         "@zeit/ncc": "^0.22.1",
@@ -2137,6 +2138,14 @@
         "node": ">=8"
       }
     },
+    "node_modules/dotenv-expand": {
+      "version": "8.0.3",
+      "resolved": "https://registry.npmjs.org/dotenv-expand/-/dotenv-expand-8.0.3.tgz",
+      "integrity": "sha512-SErOMvge0ZUyWd5B0NXMQlDkN+8r+HhVUsxgOO7IoPDOdDRD2JjExpN6y3KnFR66jsJMwSn1pqIivhU5rcJiNg==",
+      "engines": {
+        "node": ">=12"
+      }
+    },
     "node_modules/electron-to-chromium": {
       "version": "1.3.802",
       "resolved": "https://registry.npmjs.org/electron-to-chromium/-/electron-to-chromium-1.3.802.tgz",
@@ -8256,6 +8265,11 @@
       "resolved": "https://registry.npmjs.org/dotenv/-/dotenv-8.2.0.tgz",
       "integrity": "sha512-8sJ78ElpbDJBHNeBzUbUVLsqKdccaa/BXF1uPTw3GrvQTBgrQrtObr2mUrE38vzYd8cEv+m/JBfDLioYcfXoaw=="
     },
+    "dotenv-expand": {
+      "version": "8.0.3",
+      "resolved": "https://registry.npmjs.org/dotenv-expand/-/dotenv-expand-8.0.3.tgz",
+      "integrity": "sha512-SErOMvge0ZUyWd5B0NXMQlDkN+8r+HhVUsxgOO7IoPDOdDRD2JjExpN6y3KnFR66jsJMwSn1pqIivhU5rcJiNg=="
+    },
     "electron-to-chromium": {
       "version": "1.3.802",
       "resolved": "https://registry.npmjs.org/electron-to-chromium/-/electron-to-chromium-1.3.802.tgz",
diff --git a/package.json b/package.json
index ab65343..6a88a6a 100644
--- a/package.json
+++ b/package.json
@@ -25,7 +25,8 @@
   "homepage": "https://github.com/falti/dotenv-action#readme",
   "dependencies": {
     "@actions/core": "^1.9.1",
-    "dotenv": "^8.2.0"
+    "dotenv": "^8.2.0",
+    "dotenv-expand": "^8.0.3"
   },
   "devDependencies": {
     "@zeit/ncc": "^0.22.1",