diff --git a/packages/steps/bin/set-env b/packages/steps/bin/set-env
index 4fefb639..8006ce06 100755
--- a/packages/steps/bin/set-env
+++ b/packages/steps/bin/set-env
@@ -20,4 +20,4 @@ if [[ "$NAME" == *"="* ]]; then
   exit 1
 fi
 
-echo -n $VALUE > $__EXPO_STEPS_ENVS_DIR/$NAME
+echo -n "$VALUE" > $__EXPO_STEPS_ENVS_DIR/$NAME
diff --git a/packages/steps/src/BuildStep.ts b/packages/steps/src/BuildStep.ts
index 5d428cbe..0e6358fc 100644
--- a/packages/steps/src/BuildStep.ts
+++ b/packages/steps/src/BuildStep.ts
@@ -28,6 +28,7 @@ import { BuildStepEnv } from './BuildStepEnv.js';
 import { BuildRuntimePlatform } from './BuildRuntimePlatform.js';
 import { jsepEval } from './utils/jsepEval.js';
 import { interpolateJobContext } from './interpolation.js';
+import { fixEscapeCharactersInRawEnvValue } from './utils/envUtils.js';
 
 export enum BuildStepStatus {
   NEW = 'new',
@@ -484,7 +485,8 @@ export class BuildStep extends BuildStepOutputAccessor {
     const entries = await Promise.all(
       filenames.map(async (basename) => {
         const rawContents = await fs.readFile(path.join(envsDir, basename), 'utf-8');
-        return [basename, rawContents];
+        const updatedContents = fixEscapeCharactersInRawEnvValue(rawContents);
+        return [basename, updatedContents];
       })
     );
     this.ctx.global.updateEnv({
diff --git a/packages/steps/src/utils/envUtils.ts b/packages/steps/src/utils/envUtils.ts
new file mode 100644
index 00000000..2c22a433
--- /dev/null
+++ b/packages/steps/src/utils/envUtils.ts
@@ -0,0 +1,17 @@
+export function fixEscapeCharactersInRawEnvValue(rawValue: string): string {
+  const escapeCharsMatches = rawValue.match(/\\(\w)/g);
+  let updatedValue = rawValue;
+  for (const match of escapeCharsMatches ?? []) {
+    if (match[1] === 'n') {
+      updatedValue = updatedValue.replace(`${match[0]}${match[1]}`, '\n');
+    }
+    if (match[1] === 't') {
+      updatedValue = updatedValue.replace(`${match[0]}${match[1]}`, '\t');
+    }
+    if (match[1] === 'r') {
+      updatedValue = updatedValue.replace(`${match[0]}${match[1]}`, '\r');
+    }
+  }
+
+  return updatedValue;
+}