diff --git a/.pnp.cjs b/.pnp.cjs
index 87883ffe2b..ed881cf8b6 100755
--- a/.pnp.cjs
+++ b/.pnp.cjs
@@ -2906,7 +2906,7 @@ function $$SETUP_STATE(hydrateRuntimeState, basePath) {
             ["crypto-browserify", "npm:3.12.0"],\
             ["crypto-js", "npm:4.1.1"],\
             ["dirty-chai", "virtual:12a596dc9572e25ce715d3736dc74b317c5ca5cfb3b4f67864b1e76b3a401006f84d381aaf975bb5b4da9cafac5125e6869fc78d5202f4c95780c81479112f32#npm:2.0.1"],\
-            ["dotenv", "npm:8.6.0"],\
+            ["dotenv-safe", "npm:8.2.0"],\
             ["eslint", "npm:7.32.0"],\
             ["eslint-config-airbnb-base", "virtual:12a596dc9572e25ce715d3736dc74b317c5ca5cfb3b4f67864b1e76b3a401006f84d381aaf975bb5b4da9cafac5125e6869fc78d5202f4c95780c81479112f32#npm:14.2.1"],\
             ["eslint-plugin-import", "virtual:12a596dc9572e25ce715d3736dc74b317c5ca5cfb3b4f67864b1e76b3a401006f84d381aaf975bb5b4da9cafac5125e6869fc78d5202f4c95780c81479112f32#npm:2.25.3"],\
@@ -8187,7 +8187,7 @@ function $$SETUP_STATE(hydrateRuntimeState, basePath) {
             ["chance", "npm:1.1.8"],\
             ["crypto-browserify", "npm:3.12.0"],\
             ["dirty-chai", "virtual:ad53cff31b1dbd4927a99e71702e3b8b10338636eaff010987c27c9ccea2d52af36900a9e36a4231cbb6e5464248ccc9c1da5d1d24d9b0f4f95660296b1060a6#npm:2.0.1"],\
-            ["dotenv", "npm:8.6.0"],\
+            ["dotenv-safe", "npm:8.2.0"],\
             ["eslint", "npm:7.32.0"],\
             ["eslint-config-airbnb-base", "virtual:ad53cff31b1dbd4927a99e71702e3b8b10338636eaff010987c27c9ccea2d52af36900a9e36a4231cbb6e5464248ccc9c1da5d1d24d9b0f4f95660296b1060a6#npm:14.2.1"],\
             ["eslint-config-airbnb-typescript", "virtual:ad53cff31b1dbd4927a99e71702e3b8b10338636eaff010987c27c9ccea2d52af36900a9e36a4231cbb6e5464248ccc9c1da5d1d24d9b0f4f95660296b1060a6#npm:17.0.0"],\
diff --git a/packages/js-dash-sdk/karma/options.js b/packages/js-dash-sdk/karma/options.js
index 81839aebdb..7472ceea15 100644
--- a/packages/js-dash-sdk/karma/options.js
+++ b/packages/js-dash-sdk/karma/options.js
@@ -1,6 +1,6 @@
 /* eslint-disable import/no-extraneous-dependencies */
 const webpack = require('webpack');
-const dotenvResult = require('dotenv').config();
+const dotenvSafe = require('dotenv-safe');
 
 const karmaMocha = require('karma-mocha');
 const karmaMochaReporter = require('karma-mocha-reporter');
@@ -9,6 +9,15 @@ const karmaChromeLauncher = require('karma-chrome-launcher');
 const karmaWebpack = require('karma-webpack');
 const webpackBaseConfig = require('../webpack.base.config');
 
+let env = {};
+if (process.env.LOAD_ENV) {
+  const dotenvResult = dotenvSafe.config();
+  if (dotenvResult.error) {
+    throw dotenvResult.error;
+  }
+  env = dotenvResult.parsed;
+}
+
 module.exports = {
   frameworks: ['mocha', 'chai', 'webpack'],
   webpack: {
@@ -17,7 +26,7 @@ module.exports = {
     plugins: [
       ...webpackBaseConfig.plugins,
       new webpack.EnvironmentPlugin(
-        dotenvResult.parsed,
+        env,
       ),
     ],
   },
diff --git a/packages/js-dash-sdk/package.json b/packages/js-dash-sdk/package.json
index d4de4b848e..75cb3c4350 100644
--- a/packages/js-dash-sdk/package.json
+++ b/packages/js-dash-sdk/package.json
@@ -15,9 +15,9 @@
     "lint:fix": "eslint . --fix",
     "test": "yarn run test:types && yarn run test:unit && yarn run test:browsers",
     "test:browsers": "karma start ./karma/karma.conf.js --single-run",
-    "test:browsers:functional": "karma start ./karma/karma.functional.conf.js --single-run",
+    "test:browsers:functional": "LOAD_ENV=true karma start ./karma/karma.functional.conf.js --single-run",
     "test:unit": "ts-mocha -p tsconfig.mocha.json src/**/*.spec.ts",
-    "test:functional": "yarn run build && mocha --recursive tests/functional/**/*.js",
+    "test:functional": "yarn run build:ts && LOAD_ENV=true mocha --recursive tests/functional/**/*.js",
     "test:types": "yarn pnpify tsd",
     "prepublishOnly": "yarn run build",
     "prepare": "yarn run build"
@@ -72,7 +72,7 @@
     "chance": "^1.1.6",
     "crypto-browserify": "^3.12.0",
     "dirty-chai": "^2.0.1",
-    "dotenv": "^8.6.0",
+    "dotenv-safe": "^8.2.0",
     "eslint": "^7.32.0",
     "eslint-config-airbnb-base": "^14.2.1",
     "eslint-config-airbnb-typescript": "^17.0.0",
diff --git a/packages/js-dash-sdk/src/test/bootstrap.js b/packages/js-dash-sdk/src/test/bootstrap.js
index efd5e0cc03..29b19d5a29 100644
--- a/packages/js-dash-sdk/src/test/bootstrap.js
+++ b/packages/js-dash-sdk/src/test/bootstrap.js
@@ -1,15 +1,16 @@
-const dotenv = require('dotenv');
 const path = require('path');
-
+const dotenvSafe = require('dotenv-safe');
 const sinon = require('sinon');
 const sinonChai = require('sinon-chai');
 const { use } = require('chai');
 const dirtyChai = require('dirty-chai');
 const chaiAsPromised = require('chai-as-promised');
 
-dotenv.config({
-  path: path.resolve(__dirname, '..', '..', '.env'),
-});
+if (process.env.LOAD_ENV === 'true') {
+  dotenvSafe.config({
+    path: path.resolve(__dirname, '..', '..', '.env'),
+  });
+}
 
 use(dirtyChai);
 use(sinonChai);
diff --git a/packages/wallet-lib/karma/options.js b/packages/wallet-lib/karma/options.js
index 7e1bea6869..e4587e2c69 100644
--- a/packages/wallet-lib/karma/options.js
+++ b/packages/wallet-lib/karma/options.js
@@ -1,6 +1,6 @@
 /* eslint-disable import/no-extraneous-dependencies */
 const webpack = require('webpack');
-const dotenvResult = require('dotenv').config();
+const dotenvSafe = require('dotenv-safe');
 
 const karmaMocha = require('karma-mocha');
 const karmaMochaReporter = require('karma-mocha-reporter');
@@ -11,6 +11,15 @@ const karmaWebpack = require('karma-webpack');
 
 const webpackConfig = require('../webpack.config');
 
+let env = {};
+if (process.env.LOAD_ENV) {
+  const dotenvResult = dotenvSafe.config();
+  if (dotenvResult.error) {
+    throw dotenvResult.error;
+  }
+  env = dotenvResult.parsed;
+}
+
 module.exports = {
   client: {
     mocha: {
@@ -24,7 +33,7 @@ module.exports = {
     plugins: [
       ...webpackConfig.plugins,
       new webpack.EnvironmentPlugin(
-        dotenvResult.parsed,
+        env,
       ),
     ],
     resolve: webpackConfig.resolve,
diff --git a/packages/wallet-lib/package.json b/packages/wallet-lib/package.json
index 5b03a719f7..2719799d11 100644
--- a/packages/wallet-lib/package.json
+++ b/packages/wallet-lib/package.json
@@ -10,10 +10,10 @@
     "lint": "eslint .",
     "lint:fix": "eslint . --fix",
     "test:unit": "nyc yarn mocha 'src/**/*.spec.js'",
-    "test:functional": "nyc yarn run mocha 'tests/functional/*.js'",
+    "test:functional": "LOAD_ENV=true nyc yarn run mocha 'tests/functional/*.js'",
     "test:integration": "nyc yarn run mocha 'tests/integration/**/*.spec.js'",
     "test:browsers": "karma start ./karma/karma.conf.js --single-run",
-    "test:browsers:functional": "karma start ./karma/karma.functional.conf.js --single-run",
+    "test:browsers:functional": "LOAD_ENV=true karma start ./karma/karma.functional.conf.js --single-run",
     "test:types": "yarn pnpify tsd",
     "test": "yarn run test:types && yarn run test:unit && yarn run test:integration && yarn run test:browsers",
     "prepublishOnly": "yarn run build:web"
@@ -66,7 +66,7 @@
     "chai-as-promised": "^7.1.1",
     "crypto-browserify": "^3.12.0",
     "dirty-chai": "^2.0.1",
-    "dotenv": "^8.6.0",
+    "dotenv-safe": "^8.2.0",
     "eslint": "^7.32.0",
     "eslint-config-airbnb-base": "^14.2.1",
     "eslint-plugin-import": "^2.24.2",
diff --git a/packages/wallet-lib/src/test/bootstrap.js b/packages/wallet-lib/src/test/bootstrap.js
index 2e75d57042..48a5de18ef 100644
--- a/packages/wallet-lib/src/test/bootstrap.js
+++ b/packages/wallet-lib/src/test/bootstrap.js
@@ -1,7 +1,7 @@
 const { use } = require('chai');
 const { expect } = require('chai');
+const dotenvSafe = require('dotenv-safe');
 const path = require('path');
-const dotenv = require('dotenv');
 const sinon = require('sinon');
 const sinonChai = require('sinon-chai');
 const dirtyChai = require('dirty-chai');
@@ -11,9 +11,11 @@ use(sinonChai);
 use(dirtyChai);
 use(chaiAsPromised);
 
-dotenv.config({
-  path: path.resolve(__dirname, '..', '..', '.env'),
-});
+if (process.env.LOAD_ENV === 'true') {
+  dotenvSafe.config({
+    path: path.resolve(__dirname, '..', '..', '.env'),
+  });
+}
 
 beforeEach(function beforeEach() {
   if (!this.sinon) {
diff --git a/yarn.lock b/yarn.lock
index 2aa910ab39..4991f30de9 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -1874,7 +1874,7 @@ __metadata:
     crypto-browserify: ^3.12.0
     crypto-js: ^4.0.0
     dirty-chai: ^2.0.1
-    dotenv: ^8.6.0
+    dotenv-safe: ^8.2.0
     eslint: ^7.32.0
     eslint-config-airbnb-base: ^14.2.1
     eslint-plugin-import: ^2.24.2
@@ -6117,7 +6117,7 @@ __metadata:
     chance: ^1.1.6
     crypto-browserify: ^3.12.0
     dirty-chai: ^2.0.1
-    dotenv: ^8.6.0
+    dotenv-safe: ^8.2.0
     eslint: ^7.32.0
     eslint-config-airbnb-base: ^14.2.1
     eslint-config-airbnb-typescript: ^17.0.0