diff --git a/packages/cli/config/nodeTransform.cjs b/packages/cli/config/nodeTransform.cjs
index 9fb3cadeb5..fc25044fd0 100644
--- a/packages/cli/config/nodeTransform.cjs
+++ b/packages/cli/config/nodeTransform.cjs
@@ -20,11 +20,11 @@ const { Module } = require('module');
 
 // This hooks into module resolution and overrides imports of packages that
 // exist in the linked workspace to instead be resolved from the linked workspace.
-if (process.env.LINKED_WORKSPACE) {
+if (process.env.BACKSTAGE_CLI_LINKED_WORKSPACE) {
   const { join: joinPath } = require('path');
   const { getPackagesSync } = require('@manypkg/get-packages');
   const { packages: linkedPackages, root: linkedRoot } = getPackagesSync(
-    process.env.LINKED_WORKSPACE,
+    process.env.BACKSTAGE_CLI_LINKED_WORKSPACE,
   );
 
   // Matches all packages in the linked workspaces, as well as sub-path exports from them
diff --git a/packages/cli/src/lib/runner/runBackend.ts b/packages/cli/src/lib/runner/runBackend.ts
index 2d6722027e..fb8fdd9d55 100644
--- a/packages/cli/src/lib/runner/runBackend.ts
+++ b/packages/cli/src/lib/runner/runBackend.ts
@@ -121,7 +121,7 @@ export async function runBackend(options: RunBackendOptions) {
         stdio: ['ignore', 'inherit', 'inherit', 'ipc'],
         env: {
           ...process.env,
-          LINKED_WORKSPACE: options.linkedWorkspace,
+          BACKSTAGE_CLI_LINKED_WORKSPACE: options.linkedWorkspace,
           BACKSTAGE_CLI_CHANNEL: '1',
           ESBK_TSCONFIG_PATH: paths.resolveTargetRoot('tsconfig.json'),
         },