diff --git a/packages/build-utils/src/clone-env.ts b/packages/build-utils/src/clone-env.ts
index f6608d39d..95bbcd027 100644
--- a/packages/build-utils/src/clone-env.ts
+++ b/packages/build-utils/src/clone-env.ts
@@ -25,7 +25,11 @@ export function cloneEnv(...envs: (Env | undefined)[]): Env {
       // however we lose this proxied value when we destructure and
       // thus we must explicitly copy it, but we must also remove the
       // `Path` property since we can't have both a `PATH` and `Path`
-      obj.PATH = obj.Path;
+
+      if (obj.Path !== undefined) {
+        obj.PATH = obj.Path;
+      }
+
       delete obj.Path;
     }
 
diff --git a/packages/build-utils/test/unit.clone-env.test.ts b/packages/build-utils/test/unit.clone-env.test.ts
index dbc316f4d..cccc72218 100644
--- a/packages/build-utils/test/unit.clone-env.test.ts
+++ b/packages/build-utils/test/unit.clone-env.test.ts
@@ -36,6 +36,31 @@ it('should clone env with PATH', () => {
   });
 });
 
+it('should not overwrite PATH when path is undefined', () => {
+  expect(
+    cloneEnv(
+      {
+        PATH: 'baz',
+      },
+      new Proxy(
+        {
+          Path: undefined,
+        },
+        {
+          get(target: typeof process.env, prop: string) {
+            if (prop === 'PATH') {
+              return target.PATH ?? target.Path;
+            }
+            return target[prop];
+          },
+        }
+      )
+    )
+  ).toEqual({
+    PATH: 'baz',
+  });
+});
+
 it('should clone and merge multiple env objects', () => {
   // note: this also tests the last object doesn't overwrite `PATH` with
   // `undefined`