diff --git a/ruby-runner.c b/ruby-runner.c
index 48acf4396e8aa1..249231684d3044 100644
--- a/ruby-runner.c
+++ b/ruby-runner.c
@@ -60,6 +60,9 @@ insert_env_path(const char *envname, const char *paths, size_t size, int prepend
     setenv(envname, env, 1);
 }
 
+#define insert_env_path_lit(env, path, prep) \
+    insert_env_path(env, path, sizeof(path), prep)
+
 #define EXTOUT_DIR BUILDDIR"/"EXTOUT
 int
 main(int argc, char **argv)
@@ -81,6 +84,10 @@ main(int argc, char **argv)
     insert_env_path(LIBPATHENV, builddir, dirsize, 1);
     insert_env_path("RUBYLIB", rubylib, sizeof(rubylib), 0);
 
+    insert_env_path_lit("GEM_PATH", ABS_SRCDIR"/.bundle", 1);
+    insert_env_path_lit("GEM_PATH", BUILDDIR"/.bundle", 1);
+    if (!getenv("GEM_HOME")) setenv("GEM_HOME", ABS_SRCDIR"/.bundle", 1);
+
     if (!(p = strrchr(arg0, '/'))) p = arg0; else p++;
     if (strlen(p) < namesize - 1) {
         argv[0] = malloc(p - arg0 + namesize);
diff --git a/test/ruby/test_process.rb b/test/ruby/test_process.rb
index 6e6a57efca1053..a882618cecf8a0 100644
--- a/test/ruby/test_process.rb
+++ b/test/ruby/test_process.rb
@@ -275,7 +275,7 @@ def test_overwrite_ENV
     end;
   end
 
-  MANDATORY_ENVS = %w[RUBYLIB RJIT_SEARCH_BUILD_DIR]
+  MANDATORY_ENVS = %w[RUBYLIB GEM_HOME GEM_PATH RJIT_SEARCH_BUILD_DIR]
   case RbConfig::CONFIG['target_os']
   when /linux/
     MANDATORY_ENVS << 'LD_PRELOAD'