diff --git a/packages/hoppscotch-common/src/helpers/RequestRunner.ts b/packages/hoppscotch-common/src/helpers/RequestRunner.ts
index 8469b24b8..22ed93468 100644
--- a/packages/hoppscotch-common/src/helpers/RequestRunner.ts
+++ b/packages/hoppscotch-common/src/helpers/RequestRunner.ts
@@ -133,6 +133,38 @@ const updateEnvironmentsWithSecret = (
   return updatedEnv
 }
 
+/**
+ * Transforms the environment list to a list with unique keys with value
+ * @param envs The environment list to be transformed
+ * @returns The transformed environment list with keys with value
+ */
+const filterNonEmptyEnvironmentVariables = (
+  envs: Environment["variables"]
+): Environment["variables"] => {
+  const envsMap = new Map<string, Environment["variables"][number]>()
+
+  envs.forEach((env) => {
+    if (env.secret) {
+      envsMap.set(env.key, env)
+    } else if (envsMap.has(env.key)) {
+      const existingEnv = envsMap.get(env.key)
+
+      if (
+        existingEnv &&
+        "value" in existingEnv &&
+        existingEnv.value === "" &&
+        env.value !== ""
+      ) {
+        envsMap.set(env.key, env)
+      }
+    } else {
+      envsMap.set(env.key, env)
+    }
+  })
+
+  return Array.from(envsMap.values())
+}
+
 export function runRESTRequest$(
   tab: Ref<HoppTab<HoppRESTDocument>>
 ): [
@@ -207,15 +239,19 @@ export function runRESTRequest$(
     }
 
     const finalEnvs = {
-      environments: envs.right,
       requestVariables: finalRequestVariables as Environment["variables"],
+      environments: envs.right,
     }
 
+    const finalEnvsWithNonEmptyValues = filterNonEmptyEnvironmentVariables(
+      combineEnvVariables(finalEnvs)
+    )
+
     const effectiveRequest = getEffectiveRESTRequest(finalRequest, {
       id: "env-id",
       v: 1,
       name: "Env",
-      variables: combineEnvVariables(finalEnvs),
+      variables: finalEnvsWithNonEmptyValues,
     })
 
     const [stream, cancelRun] = createRESTNetworkRequestStream(effectiveRequest)
diff --git a/packages/hoppscotch-common/src/helpers/editor/extensions/HoppEnvironment.ts b/packages/hoppscotch-common/src/helpers/editor/extensions/HoppEnvironment.ts
index 31ab8f2bc..04b65dd28 100644
--- a/packages/hoppscotch-common/src/helpers/editor/extensions/HoppEnvironment.ts
+++ b/packages/hoppscotch-common/src/helpers/editor/extensions/HoppEnvironment.ts
@@ -38,6 +38,31 @@ const HOPP_ENV_HIGHLIGHT_NOT_FOUND = "environment-not-found-highlight"
 const secretEnvironmentService = getService(SecretEnvironmentService)
 const restTabs = getService(RESTTabService)
 
+/**
+ * Transforms the environment list to a list with unique keys with value
+ * @param envs The environment list to be transformed
+ * @returns The transformed environment list with keys with value
+ */
+const filterNonEmptyEnvironmentVariables = (
+  envs: AggregateEnvironment[]
+): AggregateEnvironment[] => {
+  const envsMap = new Map<string, AggregateEnvironment>()
+
+  envs.forEach((env) => {
+    if (envsMap.has(env.key)) {
+      const existingEnv = envsMap.get(env.key)
+
+      if (existingEnv?.value === "" && env.value !== "") {
+        envsMap.set(env.key, env)
+      }
+    } else {
+      envsMap.set(env.key, env)
+    }
+  })
+
+  return Array.from(envsMap.values())
+}
+
 const cursorTooltipField = (aggregateEnvs: AggregateEnvironment[]) =>
   hoverTooltip(
     (view, pos, side) => {
@@ -72,7 +97,12 @@ const cursorTooltipField = (aggregateEnvs: AggregateEnvironment[]) =>
 
       const parsedEnvKey = text.slice(start - from, end - from)
 
-      const tooltipEnv = aggregateEnvs.find((env) => env.key === parsedEnvKey)
+      const envsWithNoEmptyValues =
+        filterNonEmptyEnvironmentVariables(aggregateEnvs)
+
+      const tooltipEnv = envsWithNoEmptyValues.find(
+        (env) => env.key === parsedEnvKey
+      )
 
       const envName = tooltipEnv?.sourceEnv ?? "Choose an Environment"
 
@@ -205,7 +235,10 @@ const getMatchDecorator = (aggregateEnvs: AggregateEnvironment[]) =>
 export const environmentHighlightStyle = (
   aggregateEnvs: AggregateEnvironment[]
 ) => {
-  const decorator = getMatchDecorator(aggregateEnvs)
+  const envsWithNoEmptyValues =
+    filterNonEmptyEnvironmentVariables(aggregateEnvs)
+
+  const decorator = getMatchDecorator(envsWithNoEmptyValues)
 
   return ViewPlugin.define(
     (view) => ({
diff --git a/packages/hoppscotch-common/src/services/inspection/inspectors/environment.inspector.ts b/packages/hoppscotch-common/src/services/inspection/inspectors/environment.inspector.ts
index 0a444bf64..89a603966 100644
--- a/packages/hoppscotch-common/src/services/inspection/inspectors/environment.inspector.ts
+++ b/packages/hoppscotch-common/src/services/inspection/inspectors/environment.inspector.ts
@@ -10,6 +10,7 @@ import { Ref, markRaw } from "vue"
 import IconPlusCircle from "~icons/lucide/plus-circle"
 import { HoppRESTRequest } from "@hoppscotch/data"
 import {
+  AggregateEnvironment,
   aggregateEnvsWithSecrets$,
   getCurrentEnvironment,
   getSelectedEnvironmentType,
@@ -133,6 +134,31 @@ export class EnvironmentInspectorService extends Service implements Inspector {
     return newErrors
   }
 
+  /**
+   * Transforms the environment list to a list with unique keys with value
+   * @param envs The environment list to be transformed
+   * @returns The transformed environment list with keys with value
+   */
+  private filterNonEmptyEnvironmentVariables = (
+    envs: AggregateEnvironment[]
+  ): AggregateEnvironment[] => {
+    const envsMap = new Map<string, AggregateEnvironment>()
+
+    envs.forEach((env) => {
+      if (envsMap.has(env.key)) {
+        const existingEnv = envsMap.get(env.key)
+
+        if (existingEnv?.value === "" && env.value !== "") {
+          envsMap.set(env.key, env)
+        }
+      } else {
+        envsMap.set(env.key, env)
+      }
+    })
+
+    return Array.from(envsMap.values())
+  }
+
   /**
    * Checks if the environment variables in the target array are empty
    * @param target The target array to validate
@@ -156,14 +182,15 @@ export class EnvironmentInspectorService extends Service implements Inspector {
 
             const currentTab = this.restTabs.currentActiveTab.value
 
-            const environmentVariables = [
-              ...currentTab.document.request.requestVariables.map((env) => ({
-                ...env,
-                secret: false,
-                sourceEnv: "RequestVariable",
-              })),
-              ...this.aggregateEnvsWithSecrets.value,
-            ]
+            const environmentVariables =
+              this.filterNonEmptyEnvironmentVariables([
+                ...currentTab.document.request.requestVariables.map((env) => ({
+                  ...env,
+                  secret: false,
+                  sourceEnv: "RequestVariable",
+                })),
+                ...this.aggregateEnvsWithSecrets.value,
+              ])
 
             environmentVariables.forEach((env) => {
               const hasSecretEnv = this.secretEnvs.hasSecretValue(