diff --git a/Cargo.lock b/Cargo.lock
index 18578f0b1640..ee07bf9bb281 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -2648,6 +2648,7 @@ dependencies = [
  "opentelemetry",
  "opentelemetry-otlp",
  "opentelemetry_sdk",
+ "paste",
  "rand 0.8.5",
  "regex",
  "reqwest 0.12.12",
@@ -2659,6 +2660,7 @@ dependencies = [
  "serde_yaml",
  "serial_test",
  "sha2",
+ "shellexpand",
  "sqlx",
  "sys-info",
  "temp-env",
@@ -6129,9 +6131,9 @@ checksum = "24188a676b6ae68c3b2cb3a01be17fbf7240ce009799bb56d5b1409051e78fde"
 
 [[package]]
 name = "shellexpand"
-version = "3.1.0"
+version = "3.1.1"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "da03fa3b94cc19e3ebfc88c4229c49d8f08cdbd1228870a45f0ffdf84988e14b"
+checksum = "8b1fdf65dd6331831494dd616b30351c38e96e45921a27745cf98490458b90bb"
 dependencies = [
  "dirs",
 ]
diff --git a/crates/goose/Cargo.toml b/crates/goose/Cargo.toml
index e70471c8909f..f1fad2320ac8 100644
--- a/crates/goose/Cargo.toml
+++ b/crates/goose/Cargo.toml
@@ -105,6 +105,8 @@ sys-info = "0.9"
 oauth2 = "5.0.0"
 schemars = { version = "1.0.4", default-features = false, features = ["derive"] }
 insta = "1.43.2"
+paste = "1.0.0"
+shellexpand = "3.1.1"
 
 
 [target.'cfg(target_os = "windows")'.dependencies]
diff --git a/crates/goose/src/agents/extension_manager.rs b/crates/goose/src/agents/extension_manager.rs
index 6d5bf085bb7f..443673c83cf8 100644
--- a/crates/goose/src/agents/extension_manager.rs
+++ b/crates/goose/src/agents/extension_manager.rs
@@ -32,6 +32,7 @@ use super::tool_execution::ToolCallResult;
 use crate::agents::extension::{Envs, ProcessExit};
 use crate::agents::extension_malware_check;
 use crate::agents::mcp_client::{McpClient, McpClientTrait};
+use crate::config::search_path::search_path_var;
 use crate::config::{get_all_extensions, Config};
 use crate::oauth::oauth_flow;
 use crate::prompt_template;
@@ -182,6 +183,12 @@ async fn child_process_client(
     command.process_group(0);
     #[cfg(windows)]
     command.creation_flags(CREATE_NO_WINDOW_FLAG);
+
+    command.env(
+        "PATH",
+        search_path_var().map_err(|e| ExtensionError::ConfigError(format!("{}", e)))?,
+    );
+
     let (transport, mut stderr) = TokioChildProcess::builder(command)
         .stderr(Stdio::piped())
         .spawn()?;
diff --git a/crates/goose/src/config/base.rs b/crates/goose/src/config/base.rs
index 3cde60d3b423..3974a4b9a6cc 100644
--- a/crates/goose/src/config/base.rs
+++ b/crates/goose/src/config/base.rs
@@ -136,6 +136,16 @@ impl Default for Config {
     }
 }
 
+macro_rules! declare_param {
+    ($param_name:ident, $param_type:ty) => {
+        paste::paste! {
+            pub fn [<get_ $param_name:lower>](&self) -> Result<$param_type, ConfigError> {
+                self.get_param(stringify!($param_name))
+            }
+        }
+    };
+}
+
 impl Config {
     /// Get the global configuration instance.
     ///
@@ -730,6 +740,8 @@ impl Config {
         };
         Ok(())
     }
+
+    declare_param!(GOOSE_SEARCH_PATHS, Vec<String>);
 }
 
 /// Load init-config.yaml from workspace root if it exists.
diff --git a/crates/goose/src/config/mod.rs b/crates/goose/src/config/mod.rs
index 3ab6f3497ffa..c37a49e66b89 100644
--- a/crates/goose/src/config/mod.rs
+++ b/crates/goose/src/config/mod.rs
@@ -4,6 +4,7 @@ mod experiments;
 pub mod extensions;
 pub mod paths;
 pub mod permission;
+pub mod search_path;
 pub mod signup_openrouter;
 pub mod signup_tetrate;
 
diff --git a/crates/goose/src/config/search_path.rs b/crates/goose/src/config/search_path.rs
new file mode 100644
index 000000000000..d500a4bb5167
--- /dev/null
+++ b/crates/goose/src/config/search_path.rs
@@ -0,0 +1,25 @@
+use std::{env, ffi::OsString, path::PathBuf};
+
+use crate::config::{Config, ConfigError};
+
+pub fn search_path_var() -> Result<OsString, ConfigError> {
+    let paths = Config::global()
+        .get_goose_search_paths()
+        .or_else(|err| match err {
+            ConfigError::NotFound(_) => Ok(vec![]),
+            err => Err(err),
+        })?
+        .into_iter()
+        .map(|s| PathBuf::from(shellexpand::tilde(&s).as_ref()));
+
+    env::join_paths(
+        paths.chain(
+            env::var_os("PATH")
+                .as_ref()
+                .map(env::split_paths)
+                .into_iter()
+                .flatten(),
+        ),
+    )
+    .map_err(|e| ConfigError::DeserializeError(format!("{}", e)))
+}