diff --git a/.github/workflows/bat.yml b/.github/workflows/bat.yml
index f3295e0..b137eec 100644
--- a/.github/workflows/bat.yml
+++ b/.github/workflows/bat.yml
@@ -88,3 +88,19 @@ jobs:
             [~, f] = fileparts(pwd);
             assert(strcmp(f, 'subdir'));
           startup-options: -sd subdir
+
+      - name: Verify environment variables make it to MATLAB
+        uses: ./
+        with:
+          command: exp = 'my_value', act = getenv('MY_VAR'), assert(strcmp(act, exp), strjoin({act exp}, '\n'));
+        env:
+          MY_VAR: my_value
+
+      # Remove when online batch licensing is the default
+      - name: Verify MW_BATCH_LICENSING_ONLINE variable set
+        uses: ./
+        with:
+          command: exp = 'true', act = getenv('MW_BATCH_LICENSING_ONLINE'), assert(strcmp(act, exp), strjoin({act exp}, '\n'));
+        env:
+          MY_VAR: my_value
+
diff --git a/src/index.ts b/src/index.ts
index 92c2e0b..6067c87 100644
--- a/src/index.ts
+++ b/src/index.ts
@@ -17,7 +17,10 @@ async function run() {
     const startupOpts = core.getInput("startup-options").split(" ");
 
     const helperScript = await matlab.generateScript(workspaceDir, command);
-    await matlab.runCommand(helperScript, platform, architecture, exec.exec, startupOpts);
+    const execOpts = {
+        env: {...process.env, MW_BATCH_LICENSING_ONLINE:'true'}  // remove when online batch licensing is the default
+    };
+    await matlab.runCommand(helperScript, platform, architecture, (cmd,args)=>exec.exec(cmd,args,execOpts), startupOpts);
 }
 
 // Only run this action if it is invoked directly. Do not run if this node