diff --git a/reactos/base/shell/cmd/set.c b/reactos/base/shell/cmd/set.c
index e04211a27ba..115b837787e 100644
--- a/reactos/base/shell/cmd/set.c
+++ b/reactos/base/shell/cmd/set.c
@@ -154,7 +154,7 @@ INT cmd_set (LPTSTR param)
 		}
 
 		*p++ = _T('\0');
-		if (!SetEnvironmentVariable(param, p))
+		if (!SetEnvironmentVariable(param, *p ? p : NULL))
 		{
 			nErrorLevel = 1;
 			return 1;
diff --git a/reactos/dll/win32/kernel32/misc/env.c b/reactos/dll/win32/kernel32/misc/env.c
index b5aa8c5e6cb..c4f0ee25ae8 100644
--- a/reactos/dll/win32/kernel32/misc/env.c
+++ b/reactos/dll/win32/kernel32/misc/env.c
@@ -193,18 +193,27 @@ SetEnvironmentVariableA (
 	                              &VarName,
 	                              TRUE);
 
-	RtlInitAnsiString (&VarValue,
-	                   (LPSTR)lpValue);
-	RtlAnsiStringToUnicodeString (&VarValueU,
-	                              &VarValue,
-	                              TRUE);
+	if (lpValue)
+	{
+		RtlInitAnsiString (&VarValue,
+		                   (LPSTR)lpValue);
+		RtlAnsiStringToUnicodeString (&VarValueU,
+		                              &VarValue,
+		                              TRUE);
 
-	Status = RtlSetEnvironmentVariable (NULL,
-	                                    &VarNameU,
-	                                    &VarValueU);
+		Status = RtlSetEnvironmentVariable (NULL,
+		                                    &VarNameU,
+		                                    &VarValueU);
 
+		RtlFreeUnicodeString (&VarValueU);
+	}
+	else
+	{
+		Status = RtlSetEnvironmentVariable (NULL,
+		                                    &VarNameU,
+		                                    NULL);
+	}
 	RtlFreeUnicodeString (&VarNameU);
-	RtlFreeUnicodeString (&VarValueU);
 
 	if (!NT_SUCCESS(Status))
 	{
@@ -235,12 +244,22 @@ SetEnvironmentVariableW (
 	RtlInitUnicodeString (&VarName,
 	                      lpName);
 
-	RtlInitUnicodeString (&VarValue,
-	                      lpValue);
+	if (lpValue)
+	{
+		RtlInitUnicodeString (&VarValue,
+		                      lpValue);
+
+		Status = RtlSetEnvironmentVariable (NULL,
+		                                    &VarName,
+		                                    &VarValue);
+	}
+	else
+	{
+		Status = RtlSetEnvironmentVariable (NULL,
+		                                    &VarName,
+		                                    NULL);
+	}
 
-	Status = RtlSetEnvironmentVariable (NULL,
-	                                    &VarName,
-	                                    &VarValue);
 	if (!NT_SUCCESS(Status))
 	{
 		SetLastErrorByStatus (Status);
diff --git a/reactos/lib/rtl/env.c b/reactos/lib/rtl/env.c
index 2e437f71116..86a418ed6c7 100644
--- a/reactos/lib/rtl/env.c
+++ b/reactos/lib/rtl/env.c
@@ -355,7 +355,7 @@ RtlSetEnvironmentVariable(PWSTR *Environment,
    }
 
 found:
-   if (Value != NULL && Value->Length > 0)
+   if (Value != NULL)
    {
       hole_len = tail - hole;
       /* calculate new environment size */