diff --git a/pkg/shellexec/shellexec.go b/pkg/shellexec/shellexec.go
index 35a9401ad6..2f374f814c 100644
--- a/pkg/shellexec/shellexec.go
+++ b/pkg/shellexec/shellexec.go
@@ -22,6 +22,7 @@ import (
 	"github.com/wavetermdev/waveterm/pkg/panichandler"
 	"github.com/wavetermdev/waveterm/pkg/remote"
 	"github.com/wavetermdev/waveterm/pkg/remote/conncontroller"
+	"github.com/wavetermdev/waveterm/pkg/util/pamparse"
 	"github.com/wavetermdev/waveterm/pkg/util/shellutil"
 	"github.com/wavetermdev/waveterm/pkg/util/utilfn"
 	"github.com/wavetermdev/waveterm/pkg/wavebase"
@@ -452,6 +453,30 @@ func StartShellProc(termSize waveobj.TermSize, cmdStr string, cmdOpts CommandOpt
 		ecmd = exec.Command(shellPath, shellOpts...)
 		ecmd.Env = os.Environ()
 	}
+
+	/*
+	  For Snap installations, we need to correct the XDG environment variables as Snap
+	  overrides them to point to snap directories. We will get the correct values, if
+	  set, from the PAM environment. If the XDG variables are set in profile or in an
+	  RC file, it will be overridden when the shell initializes.
+	*/
+	if os.Getenv("SNAP") != "" {
+		varsToReplace := map[string]string{"XDG_CONFIG_HOME": "", "XDG_DATA_HOME": "", "XDG_CACHE_HOME": "", "XDG_RUNTIME_DIR": "", "XDG_CONFIG_DIRS": "", "XDG_DATA_DIRS": ""}
+		pamEnvs := tryGetPamEnvVars()
+		log.Printf("PAM environment: %v", pamEnvs)
+		if len(pamEnvs) > 0 {
+			// We only want to set the XDG variables from the PAM environment, all others should already be correct or may have been overridden by something else out of our control
+			for k := range pamEnvs {
+				if _, ok := varsToReplace[k]; ok {
+					log.Printf("Setting %s to %s", k, pamEnvs[k])
+					varsToReplace[k] = pamEnvs[k]
+				}
+			}
+		}
+		log.Printf("Replacing XDG environment variables: %v", varsToReplace)
+		shellutil.UpdateCmdEnv(ecmd, varsToReplace)
+	}
+
 	if cmdOpts.Cwd != "" {
 		ecmd.Dir = cmdOpts.Cwd
 	}
@@ -512,3 +537,39 @@ func RunSimpleCmdInPty(ecmd *exec.Cmd, termSize waveobj.TermSize) ([]byte, error
 	<-ioDone
 	return outputBuf.Bytes(), nil
 }
+
+const etcEnvironmentPath = "/etc/environment"
+const etcSecurityPath = "/etc/security/pam_env.conf"
+const userEnvironmentPath = "~/.pam_environment"
+
+/*
+tryGetPamEnvVars tries to get the environment variables from /etc/environment,
+/etc/security/pam_env.conf, and ~/.pam_environment.
+
+It then returns a map of the environment variables, overriding duplicates with
+the following order of precedence:
+1. /etc/environment
+2. /etc/security/pam_env.conf
+3. ~/.pam_environment
+*/
+func tryGetPamEnvVars() map[string]string {
+	envVars, err := pamparse.ParseEnvironmentFile(etcEnvironmentPath)
+	if err != nil {
+		log.Printf("error parsing %s: %v", etcEnvironmentPath, err)
+	}
+	envVars2, err := pamparse.ParseEnvironmentConfFile(etcSecurityPath)
+	if err != nil {
+		log.Printf("error parsing %s: %v", etcSecurityPath, err)
+	}
+	envVars3, err := pamparse.ParseEnvironmentConfFile(wavebase.ExpandHomeDirSafe(userEnvironmentPath))
+	if err != nil {
+		log.Printf("error parsing %s: %v", userEnvironmentPath, err)
+	}
+	for k, v := range envVars2 {
+		envVars[k] = v
+	}
+	for k, v := range envVars3 {
+		envVars[k] = v
+	}
+	return envVars
+}
diff --git a/pkg/util/pamparse/pamparse.go b/pkg/util/pamparse/pamparse.go
new file mode 100644
index 0000000000..950b6dbe30
--- /dev/null
+++ b/pkg/util/pamparse/pamparse.go
@@ -0,0 +1,147 @@
+// Copyright 2025, Command Line Inc.
+// SPDX-License-Identifier: Apache-2.0
+
+// Package pamparse provides functions for parsing environment files in the format of /etc/environment, /etc/security/pam_env.conf, and ~/.pam_environment.
+package pamparse
+
+import (
+	"bufio"
+	"fmt"
+	"os"
+	"regexp"
+	"strings"
+)
+
+// Parses a file in the format of /etc/environment. Accepts a path to the file and returns a map of environment variables.
+func ParseEnvironmentFile(path string) (map[string]string, error) {
+	rtn := make(map[string]string)
+	file, err := os.Open(path)
+	if err != nil {
+		return nil, err
+	}
+	defer file.Close()
+	scanner := bufio.NewScanner(file)
+	for scanner.Scan() {
+		line := scanner.Text()
+		key, val := parseEnvironmentLine(line)
+		if key == "" {
+			continue
+		}
+		rtn[key] = val
+	}
+	return rtn, nil
+}
+
+// Parses a file in the format of /etc/security/pam_env.conf or ~/.pam_environment. Accepts a path to the file and returns a map of environment variables.
+func ParseEnvironmentConfFile(path string) (map[string]string, error) {
+	rtn := make(map[string]string)
+	file, err := os.Open(path)
+	if err != nil {
+		return nil, err
+	}
+	defer file.Close()
+	home, shell, err := parsePasswd()
+	if err != nil {
+		return nil, err
+	}
+	scanner := bufio.NewScanner(file)
+	for scanner.Scan() {
+		line := scanner.Text()
+		key, val := parseEnvironmentConfLine(line)
+
+		// Fall back to ParseEnvironmentLine if ParseEnvironmentConfLine fails
+		if key == "" {
+			key, val = parseEnvironmentLine(line)
+			if key == "" {
+				continue
+			}
+		}
+		rtn[key] = replaceHomeAndShell(val, home, shell)
+	}
+	return rtn, nil
+}
+
+// Gets the home directory and shell from /etc/passwd for the current user.
+func parsePasswd() (string, string, error) {
+	file, err := os.Open("/etc/passwd")
+	if err != nil {
+		return "", "", err
+	}
+	defer file.Close()
+	userPrefix := fmt.Sprintf("%s:", os.Getenv("USER"))
+	scanner := bufio.NewScanner(file)
+	for scanner.Scan() {
+		line := scanner.Text()
+		if strings.HasPrefix(line, userPrefix) {
+			parts := strings.Split(line, ":")
+			if len(parts) < 7 {
+				return "", "", fmt.Errorf("invalid passwd entry: insufficient fields")
+			}
+			return parts[5], parts[6], nil
+		}
+	}
+	if err := scanner.Err(); err != nil {
+		return "", "", fmt.Errorf("error reading passwd file: %w", err)
+	}
+	return "", "", nil
+}
+
+// Replaces @{HOME} and @{SHELL} placeholders in a string with the provided values. Follows guidance from https://wiki.archlinux.org/title/Environment_variables#Using_pam_env
+func replaceHomeAndShell(val string, home string, shell string) string {
+	val = strings.ReplaceAll(val, "@{HOME}", home)
+	val = strings.ReplaceAll(val, "@{SHELL}", shell)
+	return val
+}
+
+// Regex to parse a line from /etc/environment. Follows the guidance from https://wiki.archlinux.org/title/Environment_variables#Using_pam_env
+var envFileLineRe = regexp.MustCompile(`^(?:export\s+)?([A-Z0-9_]+[A-Za-z0-9]*)=(.*)$`)
+
+func parseEnvironmentLine(line string) (string, string) {
+	m := envFileLineRe.FindStringSubmatch(line)
+	if m == nil {
+		return "", ""
+	}
+	return m[1], sanitizeEnvVarValue(m[2])
+}
+
+// Regex to parse a line from /etc/security/pam_env.conf or ~/.pam_environment. Follows the guidance from https://wiki.archlinux.org/title/Environment_variables#Using_pam_env
+var confFileLineRe = regexp.MustCompile(`^([A-Z0-9_]+[A-Za-z0-9]*)\s+(?:(?:DEFAULT=)([^\s]+(?: \w+)*))\s*(?:(?:OVERRIDE=)([^\s]+(?: \w+)*))?\s*$`)
+
+func parseEnvironmentConfLine(line string) (string, string) {
+	m := confFileLineRe.FindStringSubmatch(line)
+	if m == nil {
+		return "", ""
+	}
+	var vals []string
+	if len(m) > 3 && m[3] != "" {
+		vals = []string{sanitizeEnvVarValue(m[3]), sanitizeEnvVarValue(m[2])}
+	} else {
+		vals = []string{sanitizeEnvVarValue(m[2])}
+	}
+	return m[1], strings.Join(vals, ":")
+}
+
+// Sanitizes an environment variable value by stripping comments and trimming quotes.
+func sanitizeEnvVarValue(val string) string {
+	return stripComments(trimQuotes(val))
+}
+
+// Trims quotes as defined by https://unix.stackexchange.com/questions/748790/where-is-the-syntax-for-etc-environment-documented
+func trimQuotes(val string) string {
+	if strings.HasPrefix(val, "\"") || strings.HasPrefix(val, "'") {
+		val = val[1:]
+		if strings.HasSuffix(val, "\"") || strings.HasSuffix(val, "'") {
+			val = val[0 : len(val)-1]
+		}
+	}
+	return val
+}
+
+// Strips comments as defined by https://unix.stackexchange.com/questions/748790/where-is-the-syntax-for-etc-environment-documented
+func stripComments(val string) string {
+	commentIdx := strings.Index(val, "#")
+	if commentIdx == -1 {
+		return val
+	}
+	return val[0:commentIdx]
+}
diff --git a/pkg/util/pamparse/pamparse_test.go b/pkg/util/pamparse/pamparse_test.go
new file mode 100644
index 0000000000..223e5bdae3
--- /dev/null
+++ b/pkg/util/pamparse/pamparse_test.go
@@ -0,0 +1,102 @@
+// Copyright 2025, Command Line Inc.
+// SPDX-License-Identifier: Apache-2.0
+
+package pamparse_test
+
+import (
+	"os"
+	"path/filepath"
+	"testing"
+
+	"github.com/wavetermdev/waveterm/pkg/util/pamparse"
+)
+
+// Tests influenced by https://unix.stackexchange.com/questions/748790/where-is-the-syntax-for-etc-environment-documented
+func TestParseEnvironmentFile(t *testing.T) {
+	const fileContent = `
+FOO1=bar
+FOO2="bar"
+FOO3="bar
+FOO4=bar"
+FOO5='bar'
+FOO6='bar"
+export FOO7=bar
+FOO8=bar bar bar
+#FOO9=bar
+FOO10=$PATH
+FOO11="foo#bar"
+	`
+
+	// create a temporary file with the content
+	tempFile := filepath.Join(t.TempDir(), "pam_env")
+	if err := os.WriteFile(tempFile, []byte(fileContent), 0644); err != nil {
+		t.Fatalf("failed to write file: %v", err)
+	}
+
+	// parse the file
+	got, err := pamparse.ParseEnvironmentFile(tempFile)
+	if err != nil {
+		t.Fatalf("failed to parse pam environment file: %v", err)
+	}
+
+	want := map[string]string{
+		"FOO1":  "bar",
+		"FOO2":  "bar",
+		"FOO3":  "bar",
+		"FOO4":  "bar\"",
+		"FOO5":  "bar",
+		"FOO6":  "bar",
+		"FOO7":  "bar",
+		"FOO8":  "bar bar bar",
+		"FOO10": "$PATH",
+		"FOO11": "foo",
+	}
+
+	if len(got) != len(want) {
+		t.Fatalf("expected %d environment variables, got %d", len(want), len(got))
+	}
+	for k, v := range want {
+		if got[k] != v {
+			t.Errorf("expected %q to be %q, got %q", k, v, got[k])
+		}
+	}
+}
+
+func TestParseEnvironmentConfFile(t *testing.T) {
+	const fileContent = `
+TEST   DEFAULT=@{HOME}/.config\ state   OVERRIDE=./config\ s
+FOO   DEFAULT=@{HOME}/.config\ s
+STRING   DEFAULT="string"
+STRINGOVERRIDE   DEFAULT="string"   OVERRIDE="string2"
+FOO11="foo#bar"
+	`
+
+	// create a temporary file with the content
+	tempFile := filepath.Join(t.TempDir(), "pam_env_conf")
+	if err := os.WriteFile(tempFile, []byte(fileContent), 0644); err != nil {
+		t.Fatalf("failed to write file: %v", err)
+	}
+
+	// parse the file
+	got, err := pamparse.ParseEnvironmentConfFile(tempFile)
+	if err != nil {
+		t.Fatalf("failed to parse pam environment conf file: %v", err)
+	}
+
+	want := map[string]string{
+		"TEST":           "./config\\ s:@{HOME}/.config\\ state",
+		"FOO":            "@{HOME}/.config\\ s",
+		"STRING":         "string",
+		"STRINGOVERRIDE": "string2:string",
+		"FOO11":          "foo",
+	}
+
+	if len(got) != len(want) {
+		t.Fatalf("expected %d environment variables, got %d", len(want), len(got))
+	}
+	for k, v := range want {
+		if got[k] != v {
+			t.Errorf("expected %q to be %q, got %q", k, v, got[k])
+		}
+	}
+}