diff --git a/lua/nvim-dap-envfile.lua b/lua/nvim-dap-envfile.lua
index e3af1c8..08386b0 100644
--- a/lua/nvim-dap-envfile.lua
+++ b/lua/nvim-dap-envfile.lua
@@ -1,3 +1,5 @@
+local utils = require("utils")
+
 local notify_opts = {
   title = "nvim-dap-envfile",
   icon = "",
@@ -79,15 +81,25 @@ function M.load_env_file(path)
   local env = {} ---@type table<string,string>
   local file = io.open(path, "r")
   if not file then
+    vim.notify("Can't load file: " .. path, vim.log.levels.ERROR, notify_opts)
     return env
   end
 
   for line in file:lines() do
-    ---@type string, string
-    local key, value = line:match("^%s*([%w_]+)%s*=%s*(.+)%s*$")
-    if key and value then
-      -- remove quotes
-      env[key] = value:gsub('^"(.*)"$', "%1"):gsub("^'(.*)'$", "%1")
+    local key, value = utils.str_split_once(line, "=")
+
+    if value then
+      value = vim.trim(value)
+
+      if vim.startswith(value, '"') then
+        value = utils.parse_double(value)
+      elseif vim.startswith(value, "'") then
+        value = utils.parse_single(value)
+      end
+
+      env[key] = value
+    else
+      vim.notify('Unexpected format for "' .. key .. '"', vim.log.levels.WARN, notify_opts)
     end
   end
 
diff --git a/lua/utils.lua b/lua/utils.lua
new file mode 100644
index 0000000..ee8489d
--- /dev/null
+++ b/lua/utils.lua
@@ -0,0 +1,43 @@
+local M = {}
+
+--- Splits a string into two parts at the first occurrence of a separator.
+---
+--- @param str string The input string to split.
+--- @param sep string The separator to split on, plain text.
+--- @return string left The part before the first separator
+--- @return string|nil right The part after the first separator, or nil if not found.
+function M.str_split_once(str, sep)
+  local pos = string.find(str, sep, 1, true) -- plain search
+  if not pos then
+    return str, nil
+  end
+  return str:sub(1, pos - 1), str:sub(pos + #sep)
+end
+
+---@param str string String in double quotes to parse.
+---@return string
+function M.parse_double(str)
+  if not vim.startswith(str, '"') or not vim.endswith(str, '"') then
+    return str
+  end
+
+  str = vim.fn.strcharpart(str, 1, #str - 2)
+  str = str:gsub('\\"', '"'):gsub("\\n", "\n"):gsub("\\\\", "\\"):gsub("\\t", "\t")
+
+  return str
+end
+
+---@param str string String in single quotes to parse.
+---@return string
+function M.parse_single(str)
+  if not vim.startswith(str, "'") or not vim.endswith(str, "'") then
+    return str
+  end
+
+  str = vim.fn.strcharpart(str, 1, #str - 2)
+  str = str:gsub("\\'", "'")
+
+  return str
+end
+
+return M
diff --git a/tests/nvim-dap-envfile/load_env_file_spec.lua b/tests/nvim-dap-envfile/load_env_file_spec.lua
new file mode 100644
index 0000000..5d556dd
--- /dev/null
+++ b/tests/nvim-dap-envfile/load_env_file_spec.lua
@@ -0,0 +1,44 @@
+local M = require("nvim-dap-envfile")
+local path = M.expand_path_vars("${fileDirname}/tests/nvim-dap-envfile/test.env")
+
+describe("load_env_file", function()
+  it("loads basic values", function()
+    local got = M.load_env_file(path)
+    assert.equal(got.basic, "value")
+  end)
+
+  it("trims spaces", function()
+    local got = M.load_env_file(path)
+    assert.equal(got.with_spaces, "value")
+  end)
+
+  it("trims double quotes", function()
+    local got = M.load_env_file(path)
+    assert.equal(got.double_quotes, "value")
+  end)
+
+  it("trims spaces, then double quotes", function()
+    local got = M.load_env_file(path)
+    assert.equal(got.double_quotes_spaces, "value")
+  end)
+
+  it("trims single quotes", function()
+    local got = M.load_env_file(path)
+    assert.equal(got.single_quotes, "value")
+  end)
+
+  it("handles double escape", function()
+    local got = M.load_env_file(path)
+    assert.equal(got.double_escape, '"value"')
+  end)
+
+  it("handles single escape", function()
+    local got = M.load_env_file(path)
+    assert.equal(got.single_escape, "'value'")
+  end)
+
+  it("handles special characters", function()
+    local got = M.load_env_file(path)
+    assert.equal(got.double_special, '\n\t"\\')
+  end)
+end)
diff --git a/tests/nvim-dap-envfile/test.env b/tests/nvim-dap-envfile/test.env
new file mode 100644
index 0000000..c0b7320
--- /dev/null
+++ b/tests/nvim-dap-envfile/test.env
@@ -0,0 +1,12 @@
+basic=value
+
+with_spaces=  value  
+
+double_quotes="value"
+double_quotes_spaces=  "value"  
+single_quotes='value'
+
+double_special="\n\t\"\\"
+
+double_escape="\"value\""
+single_escape='\'value\''