diff --git a/README.md b/README.md
index a924fb56..825342d1 100644
--- a/README.md
+++ b/README.md
@@ -351,6 +351,11 @@ export interface DirectoryLoaderOptions extends OptionsSync {
    * File regex to include.
    */
   include?: RegExp;
+  /**
+   * If "true", ignore environment variable substitution.
+   * Default: true
+   */
+  ignoreEnvironmentVariableSubstitution?: boolean;
 }
 ```
 
diff --git a/jest.config.json b/jest.config.json
index 63479692..a0230b10 100644
--- a/jest.config.json
+++ b/jest.config.json
@@ -4,6 +4,14 @@
   "testEnvironment": "node",
   "testRegex": ".spec.ts$",
   "collectCoverageFrom": ["./lib/**/*.ts"],
+  "coverageThreshold": {
+    "global": {
+      "branches": 100,
+      "functions": 100,
+      "lines": 100,
+      "statements": 100
+    }
+  },
   "transform": {
     "^.+\\.(t|j)s$": "ts-jest"
   },
diff --git a/lib/loader/directory-loader.ts b/lib/loader/directory-loader.ts
index 60bc2577..3df6826c 100644
--- a/lib/loader/directory-loader.ts
+++ b/lib/loader/directory-loader.ts
@@ -12,6 +12,11 @@ export interface DirectoryLoaderOptions extends OptionsSync {
    * File regex to include.
    */
   include?: RegExp;
+  /**
+   * If "true", ignore environment variable substitution.
+   * Default: true
+   */
+  ignoreEnvironmentVariableSubstitution?: boolean;
 }
 
 /**
diff --git a/tests/e2e/directory.spec.ts b/tests/e2e/directory.spec.ts
index 60598400..4921a73b 100644
--- a/tests/e2e/directory.spec.ts
+++ b/tests/e2e/directory.spec.ts
@@ -34,7 +34,23 @@ describe('Directory loader', () => {
     expect(databaseConfig.port).toBe(3000);
   });
 
+  it(`should be able to substitute env variables`, async () => {
+    process.env['TABLE_NAME'] = 'table2';
+    const module = await Test.createTestingModule({
+      imports: [AppModule.withDirectorySubstitution()],
+    }).compile();
+
+    app = module.createNestApplication();
+    await app.init();
+    const config = app.get(DirectoryConfig);
+    expect(config.table.name).toEqual('table2');
+
+    const databaseConfig = app.get(DatabaseConfig);
+    expect(databaseConfig.port).toBe(3000);
+  });
+
   afterEach(async () => {
+    process.env['TABLE_NAME'] = '';
     await app?.close();
   });
 });
diff --git a/tests/src/app.module.ts b/tests/src/app.module.ts
index 7b9e6f6e..45ab7f01 100644
--- a/tests/src/app.module.ts
+++ b/tests/src/app.module.ts
@@ -237,6 +237,21 @@ export class AppModule {
     };
   }
 
+  static withDirectorySubstitution(): DynamicModule {
+    return {
+      module: AppModule,
+      imports: [
+        TypedConfigModule.forRoot({
+          schema: DirectoryConfig,
+          load: directoryLoader({
+            directory: join(__dirname, 'dir_sub'),
+            ignoreEnvironmentVariableSubstitution: false,
+          }),
+        }),
+      ],
+    };
+  }
+
   static withDotenvNoOption(): DynamicModule {
     return {
       module: AppModule,
diff --git a/tests/src/dir_sub/database.toml b/tests/src/dir_sub/database.toml
new file mode 100644
index 00000000..2b3dc320
--- /dev/null
+++ b/tests/src/dir_sub/database.toml
@@ -0,0 +1,5 @@
+host = '127.0.0.1'
+port = 3000
+
+[table]
+name = 'test'
\ No newline at end of file
diff --git a/tests/src/dir_sub/table.toml b/tests/src/dir_sub/table.toml
new file mode 100644
index 00000000..25a3e4d7
--- /dev/null
+++ b/tests/src/dir_sub/table.toml
@@ -0,0 +1 @@
+name = "${TABLE_NAME}"
\ No newline at end of file