diff --git a/COMMANDS.md b/COMMANDS.md
index 748b98e0..2067e72a 100644
--- a/COMMANDS.md
+++ b/COMMANDS.md
@@ -315,7 +315,7 @@ Lists all Python versions with the given command installed.
 
 ## `pyenv exec`
 
-    Usage: pyenv exec <command> [arg1 arg2...]
+    Usage: pyenv exec [-N|--environment] <command> [arg1 arg2...]
 
 Runs an executable by first preparing PATH so that the selected Python
 version's `bin` directory is at the front.
@@ -326,7 +326,18 @@ For example, if the currently selected Python version is 3.9.7:
     
 is equivalent to:
 
-    PATH="$PYENV_ROOT/versions/3.9.7/bin:$PATH" pip install -r requirements.txt
+    PYENV_VERSION="3.9.7" PATH="$PYENV_ROOT/versions/3.9.7/bin:$PATH" pip install -r requirements.txt
+    
+The `--environment` option sets `PYTHONHOME` and `LD_LIBRARY_PATH` (`DYLD_LIBRARY_PATH` in macOS) in the program's environment.
+This is needed to run programs that embed Python by loading `libpython` without specifying rpath or an explicit path.
+This breaks linking for programs that expect to link to a different `libpython` with the same name as one
+in selected Python -- thus it's not done by default.
+
+In macOS, System Integrity Protection (SIP) removes `DYLD_LIBRARY_PATH` from a process' environment
+upon `exec` (not `fork`) if the executable being run is protected. The protection covers preinstalled system software
+(including preinstalled shells) and does not cover user-installed apps and 3rd-party software. See
+[About System Integrity Protection on your Mac - Apple Support](https://support.apple.com/en-us/102149)
+for details.
 
 ## `pyenv root`
 
diff --git a/libexec/pyenv-exec b/libexec/pyenv-exec
index d0f6d071..59a8d6d7 100755
--- a/libexec/pyenv-exec
+++ b/libexec/pyenv-exec
@@ -2,7 +2,17 @@
 #
 # Summary: Run an executable with the selected Python version
 #
-# Usage: pyenv exec <command> [arg1 arg2...]
+# Usage: pyenv exec [-N|--environment] <command> [arg1 arg2...]
+#
+#    -N/--environment   Set PYTHONHOME and LD_LIBRARY_PATH (DYLD_LIBRARY_PATH in macOS)
+#                   envvars for the running command.
+#                   This allows to run programs that embed Python without using rpath or
+#                   exact library path to libpython.
+#                   WARNING: For the running command and its child processes, this will
+#                   break linkage for programs that expect to be linked to a different
+#                   libpython instance with the same name!
+#                   WARNING: In macOS, DYLD_LIBRARY_PATH will be unset by the system for
+#                   processes covered by System Integrity Protection.
 #
 # Runs an executable by first preparing PATH so that the selected Python
 # version's `bin' directory is at the front.
@@ -18,9 +28,16 @@ set -e
 
 # Provide pyenv completions
 if [ "$1" = "--complete" ]; then
+  echo --environment
   exec pyenv-shims --short
 fi
 
+unset MODIFY_ENV
+if [ "$1" = "-N" ] || [ "$1" = "--environment" ]; then
+  MODIFY_ENV=true
+  shift
+fi
+
 PYENV_VERSION="$(pyenv-version-name -f)"
 PYENV_COMMAND="$1"
 
@@ -54,4 +71,27 @@ if [ "${PYENV_BIN_PATH#${PYENV_ROOT}}" != "${PYENV_BIN_PATH}" ]; then
   # Only add to $PATH for non-system version.
   export PATH="${PYENV_BIN_PATH}:${PATH}"
 fi
+if [ -n "$MODIFY_ENV" ]; then
+
+  # Check if multiple Python versions are selected
+  VERSIONS=$(pyenv-prefix)
+  if [[ "$VERSIONS" == *:* ]]; then
+    VERSION="${VERSIONS%%:*}"
+    echo "pyenv: Warning: multiple Python versions are selected." \
+    "Setting environment variables for the first one, (${VERSION#$PYENV_ROOT})" >&2
+  else
+    VERSION="$VERSIONS"
+  fi
+
+  # Assign the correct version of PYTHONHOME
+  export PYTHONHOME="$VERSION"
+  case "$(uname -s)" in
+    Darwin)
+      export DYLD_LIBRARY_PATH="${PYTHONHOME}/lib${DYLD_LIBRARY_PATH:+:${DYLD_LIBRARY_PATH}}"
+      ;;
+    *)
+      export LD_LIBRARY_PATH="${PYTHONHOME}/lib${LD_LIBRARY_PATH:+:${LD_LIBRARY_PATH}}"
+      ;;
+  esac
+fi
 exec "$PYENV_COMMAND_PATH" "$@"
diff --git a/test/exec.bats b/test/exec.bats
index ff49912b..fb1422fa 100644
--- a/test/exec.bats
+++ b/test/exec.bats
@@ -34,6 +34,7 @@ EOF
   assert_success
   assert_output <<OUT
 --help
+--environment
 fab
 python
 OUT
@@ -139,3 +140,53 @@ $envvarname=/unusual/shim/location:/another/shim/location
 _PYENV_SHIM_PATH=
 !
 }
+
+@test "--environment sets envvars in Linux" {
+  export PYENV_VERSION="test"
+  create_alt_executable print_env <<!
+#!$BASH
+echo PYTHONHOME="\$PYTHONHOME"
+echo LD_LIBRARY_PATH="\$LD_LIBRARY_PATH"
+!
+  create_path_executable uname "echo Linux"
+
+  LD_LIBRARY_PATH= run pyenv-exec -N print_env
+  assert_output_glob <<!
+PYTHONHOME=*/test
+LD_LIBRARY_PATH=*/test/lib
+!
+
+  LD_LIBRARY_PATH=/foo/bar run pyenv-exec -N print_env
+  assert_output_glob <<!
+PYTHONHOME=*/test
+LD_LIBRARY_PATH=*/test/lib:/foo/bar
+!
+}
+
+@test "--environment sets envvars in macOS" {
+  if [[ $(uname -s) == "Darwin" && $BASH == "/bin/bash" \
+      && $(LC_ALL=C csrutil status) == *"enabled." ]]; then
+    skip "macOS with Bash covered by SIP"
+  fi
+  
+  export PYENV_VERSION="test"
+  create_alt_executable print_env <<!
+#!$BASH
+echo PYTHONHOME="\$PYTHONHOME"
+echo DYLD_LIBRARY_PATH="\$DYLD_LIBRARY_PATH"
+!
+  create_path_executable uname "echo Darwin"
+
+  DYLD_LIBRARY_PATH= run pyenv-exec -N print_env
+  assert_output_glob <<!
+PYTHONHOME=*/test
+DYLD_LIBRARY_PATH=*/test/lib
+!
+
+
+  DYLD_LIBRARY_PATH=/foo/bar run pyenv-exec -N print_env
+  assert_output_glob <<!
+PYTHONHOME=*/test
+DYLD_LIBRARY_PATH=*/test/lib:/foo/bar
+!
+}
\ No newline at end of file