diff --git a/src/Xamarin.Android.Build.Tasks/Tasks/ResolveLibraryProjectImports.cs b/src/Xamarin.Android.Build.Tasks/Tasks/ResolveLibraryProjectImports.cs
index 477fd3963e7..8da2ddb3b5d 100644
--- a/src/Xamarin.Android.Build.Tasks/Tasks/ResolveLibraryProjectImports.cs
+++ b/src/Xamarin.Android.Build.Tasks/Tasks/ResolveLibraryProjectImports.cs
@@ -259,8 +259,8 @@ void Extract (
 						// temporarily extracted directory will look like:
 						//    __library_projects__/[dllname]/[library_project_imports | jlibs]/bin
 						using (var zip = MonoAndroidHelper.ReadZipFile (finfo.FullName)) {
-							updated |= Files.ExtractAll (zip, outDirForDll, modifyCallback: (entryFullName) => {
-								return entryFullName.Replace ("library_project_imports", ImportsDirectory);
+							updated |= Files.ExtractAll (zip, importsDir, modifyCallback: (entryFullName) => {
+								return entryFullName.Replace ("library_project_imports/", "");
 							}, forceUpdate: false);
 						}
 
diff --git a/tests/locales/LibraryResources/Environment.txt b/tests/locales/LibraryResources/Environment.txt
new file mode 100644
index 00000000000..4259a506aab
--- /dev/null
+++ b/tests/locales/LibraryResources/Environment.txt
@@ -0,0 +1 @@
+THIS_IS_MY_ENVIRONMENT=Well, hello there!
diff --git a/tests/locales/LibraryResources/LibraryResources.csproj b/tests/locales/LibraryResources/LibraryResources.csproj
index 96b52d0d6d6..c63a6a1d884 100644
--- a/tests/locales/LibraryResources/LibraryResources.csproj
+++ b/tests/locales/LibraryResources/LibraryResources.csproj
@@ -52,6 +52,9 @@
   <ItemGroup>
     <AndroidResource Include="Resources\values\Strings.xml" />
   </ItemGroup>
+  <ItemGroup>
+    <AndroidEnvironment Include="Environment.txt" />
+  </ItemGroup>
   <Import Project="$(MSBuildExtensionsPath)\Xamarin\Android\Xamarin.Android.CSharp.targets" />
   <ItemGroup>
     <EmbeddedResource Include="strings.de-DE.resx" />
diff --git a/tests/locales/Xamarin.Android.Locale-Tests/EnvironmentTests.cs b/tests/locales/Xamarin.Android.Locale-Tests/EnvironmentTests.cs
new file mode 100644
index 00000000000..f22247a6e1b
--- /dev/null
+++ b/tests/locales/Xamarin.Android.Locale-Tests/EnvironmentTests.cs
@@ -0,0 +1,19 @@
+using System;
+using System.Reflection;
+
+using NUnit.Framework;
+
+namespace Xamarin.Android.LocaleTests
+{
+	[TestFixture]
+	public class EnvironmentTests
+	{
+		[Test (Description="https://bugzilla.xamarin.com/show_bug.cgi?id=58673")]
+		public void EnvironmentVariablesFromLibraryProjectsAreMerged ()
+		{
+			var v = Environment.GetEnvironmentVariable ("THIS_IS_MY_ENVIRONMENT");
+			Assert.AreEqual (v, "Well, hello there!");
+		}
+	}
+}
+
diff --git a/tests/locales/Xamarin.Android.Locale-Tests/Xamarin.Android.Locale-Tests.csproj b/tests/locales/Xamarin.Android.Locale-Tests/Xamarin.Android.Locale-Tests.csproj
index a0a1ad66bea..081374fa954 100644
--- a/tests/locales/Xamarin.Android.Locale-Tests/Xamarin.Android.Locale-Tests.csproj
+++ b/tests/locales/Xamarin.Android.Locale-Tests/Xamarin.Android.Locale-Tests.csproj
@@ -51,6 +51,7 @@
     <Reference Include="Xamarin.Android.NUnitLite" />
   </ItemGroup>
   <ItemGroup>
+    <Compile Include="EnvironmentTests.cs" />
     <Compile Include="MainActivity.cs" />
     <Compile Include="Resources\Resource.designer.cs" />
     <Compile Include="Properties\AssemblyInfo.cs" />