diff --git a/reactos/dll/win32/userenv/environment.c b/reactos/dll/win32/userenv/environment.c
index 9b434d92889..f62e8e3f0e3 100644
--- a/reactos/dll/win32/userenv/environment.c
+++ b/reactos/dll/win32/userenv/environment.c
@@ -372,7 +372,7 @@ SetUserEnvironment(LPVOID *lpEnvironment,
                               &dwValueDataLength);
         if (Error == ERROR_SUCCESS)
         {
-            if (!_wcsicmp (lpValueName, L"path"))
+            if (!_wcsicmp(lpValueName, L"path"))
             {
                 /* Append 'Path' environment variable */
                 AppendUserEnvironmentVariable(lpEnvironment,
@@ -406,6 +406,117 @@ SetUserEnvironment(LPVOID *lpEnvironment,
 }
 
 
+static
+BOOL
+SetSystemEnvironment(LPVOID *lpEnvironment)
+{
+    HKEY hEnvKey;
+    DWORD dwValues;
+    DWORD dwMaxValueNameLength;
+    DWORD dwMaxValueDataLength;
+    DWORD dwValueNameLength;
+    DWORD dwValueDataLength;
+    DWORD dwType;
+    DWORD i;
+    LPWSTR lpValueName;
+    LPWSTR lpValueData;
+    LONG Error;
+
+    Error = RegOpenKeyExW(HKEY_LOCAL_MACHINE,
+                          L"SYSTEM\\CurrentControlSet\\Control\\Session Manager\\Environment",
+                          0,
+                          KEY_QUERY_VALUE,
+                          &hEnvKey);
+    if (Error != ERROR_SUCCESS)
+    {
+        DPRINT1("RegOpenKeyExW() failed (Error %ld)\n", Error);
+        return FALSE;
+    }
+
+    Error = RegQueryInfoKey(hEnvKey,
+                            NULL,
+                            NULL,
+                            NULL,
+                            NULL,
+                            NULL,
+                            NULL,
+                            &dwValues,
+                            &dwMaxValueNameLength,
+                            &dwMaxValueDataLength,
+                            NULL,
+                            NULL);
+    if (Error != ERROR_SUCCESS)
+    {
+        DPRINT1("RegQueryInforKey() failed (Error %ld)\n", Error);
+        RegCloseKey(hEnvKey);
+        return FALSE;
+    }
+
+    if (dwValues == 0)
+    {
+        RegCloseKey(hEnvKey);
+        return TRUE;
+    }
+
+    /* Allocate buffers */
+    dwMaxValueNameLength++;
+    lpValueName = LocalAlloc(LPTR,
+                             dwMaxValueNameLength * sizeof(WCHAR));
+    if (lpValueName == NULL)
+    {
+        RegCloseKey(hEnvKey);
+        return FALSE;
+    }
+
+    lpValueData = LocalAlloc(LPTR,
+                             dwMaxValueDataLength);
+    if (lpValueData == NULL)
+    {
+        LocalFree(lpValueName);
+        RegCloseKey(hEnvKey);
+        return FALSE;
+    }
+
+    /* Enumerate values */
+    for (i = 0; i < dwValues; i++)
+    {
+        dwValueNameLength = dwMaxValueNameLength;
+        dwValueDataLength = dwMaxValueDataLength;
+
+        Error = RegEnumValueW(hEnvKey,
+                              i,
+                              lpValueName,
+                              &dwValueNameLength,
+                              NULL,
+                              &dwType,
+                              (LPBYTE)lpValueData,
+                              &dwValueDataLength);
+        if (Error == ERROR_SUCCESS)
+        {
+            /* Set environment variable */
+            SetUserEnvironmentVariable(lpEnvironment,
+                                       lpValueName,
+                                       lpValueData,
+                                       (dwType == REG_EXPAND_SZ));
+        }
+        else
+        {
+            LocalFree(lpValueData);
+            LocalFree(lpValueName);
+            RegCloseKey(hEnvKey);
+
+            return FALSE;
+        }
+    }
+
+    LocalFree(lpValueData);
+    LocalFree(lpValueName);
+    RegCloseKey(hEnvKey);
+
+    return TRUE;
+}
+
+
 BOOL
 WINAPI
 CreateEnvironmentBlock(LPVOID *lpEnvironment,
@@ -433,7 +544,7 @@ CreateEnvironmentBlock(LPVOID *lpEnvironment,
 
     Status = RtlCreateEnvironment((BOOLEAN)bInherit,
                                   (PWSTR*)lpEnvironment);
-    if (!NT_SUCCESS (Status))
+    if (!NT_SUCCESS(Status))
     {
         DPRINT1("RtlCreateEnvironment() failed (Status %lx)\n", Status);
         SetLastError(RtlNtStatusToDosError(Status));
@@ -464,9 +575,11 @@ CreateEnvironmentBlock(LPVOID *lpEnvironment,
     }
 
     /* Set variables from Session Manager */
-    SetUserEnvironment(lpEnvironment,
-                       HKEY_LOCAL_MACHINE,
-                       L"System\\CurrentControlSet\\Control\\Session Manager\\Environment");
+    if (!SetSystemEnvironment(lpEnvironment))
+    {
+        RtlDestroyEnvironment(*lpEnvironment);
+        return FALSE;
+    }
 
     /* Set 'COMPUTERNAME' variable */
     Length = MAX_PATH;