diff --git a/src/houseplant/houseplant.py b/src/houseplant/houseplant.py
index b41a3bf..d403f6b 100644
--- a/src/houseplant/houseplant.py
+++ b/src/houseplant/houseplant.py
@@ -11,6 +11,13 @@
 from .utils import MIGRATIONS_DIR, get_migration_files
 
 
+class EnvVars:
+    """Helper class to access environment variables via attribute syntax."""
+
+    def __getattr__(self, name: str) -> str:
+        return os.getenv(name, "")
+
+
 class Houseplant:
     def __init__(self):
         self.console = Console()
@@ -119,7 +126,7 @@ def migrate_up(self, version: str | None = None):
                 table_definition = migration.get("table_definition", "").strip()
                 table_settings = migration.get("table_settings", "").strip()
 
-                format_args = {"table": table}
+                format_args = {"table": table, "env": EnvVars()}
                 if table_definition and table_settings:
                     format_args.update(
                         {
@@ -214,7 +221,9 @@ def migrate_down(self, version: str | None = None):
                 # Get migration SQL based on environment
                 migration_env = migration.get(self.env, {})
                 migration_sql = (
-                    migration_env.get("down", {}).format(table=table).strip()
+                    migration_env.get("down", {})
+                    .format(table=table, env=EnvVars())
+                    .strip()
                 )
 
                 if migration_sql:
diff --git a/tests/test_houseplant.py b/tests/test_houseplant.py
index deb0d7b..76839ae 100644
--- a/tests/test_houseplant.py
+++ b/tests/test_houseplant.py
@@ -629,3 +629,78 @@ def test_check_migrations_dir_not_found(houseplant, tmp_path):
     # Verify SystemExit is raised when migrations dir not found
     with pytest.raises(SystemExit):
         houseplant._check_migrations_dir()
+
+
+@pytest.fixture
+def test_migration_with_env_vars(tmp_path, monkeypatch):
+    # Set environment variables for the test
+    monkeypatch.setenv("TEST_CLUSTER", "my_cluster")
+    monkeypatch.setenv("TEST_ENGINE", "ReplicatedMergeTree")
+
+    migrations_dir = tmp_path / "ch/migrations"
+    migrations_dir.mkdir(parents=True)
+    migration_file = migrations_dir / "20240101000000_test_env_vars.yml"
+
+    migration_content = """version: "20240101000000"
+name: test_env_vars
+table: events
+
+development: &development
+  up: |
+    CREATE TABLE {table} ON CLUSTER '{env.TEST_CLUSTER}' (
+        id UInt32,
+        name String
+    ) ENGINE = {env.TEST_ENGINE}()
+    ORDER BY id
+  down: |
+    DROP TABLE {table} ON CLUSTER '{env.TEST_CLUSTER}'
+
+test:
+  <<: *development
+
+production:
+  <<: *development
+"""
+
+    migration_file.write_text(migration_content)
+    os.chdir(tmp_path)
+    return migration_content
+
+
+def test_migrate_up_with_env_vars(houseplant, test_migration_with_env_vars, mocker):
+    # Mock database calls
+    houseplant.env = "development"
+    mock_execute = mocker.patch.object(houseplant.db, "execute_migration")
+    mocker.patch.object(houseplant.db, "mark_migration_applied")
+    mocker.patch.object(houseplant.db, "get_applied_migrations", return_value=[])
+
+    # Run migration
+    houseplant.migrate_up()
+
+    # Verify env vars were expanded in the SQL
+    expected_sql = """CREATE TABLE events ON CLUSTER 'my_cluster' (
+    id UInt32,
+    name String
+) ENGINE = ReplicatedMergeTree()
+ORDER BY id"""
+
+    mock_execute.assert_called_once_with(expected_sql, None)
+
+
+def test_migrate_down_with_env_vars(houseplant, test_migration_with_env_vars, mocker):
+    # Mock database calls
+    houseplant.env = "development"
+    mock_execute = mocker.patch.object(houseplant.db, "execute_migration")
+    mocker.patch.object(houseplant.db, "mark_migration_rolled_back")
+    mocker.patch.object(
+        houseplant.db, "get_applied_migrations", return_value=[("20240101000000",)]
+    )
+    mocker.patch.object(houseplant, "update_schema")
+
+    # Run migration down
+    houseplant.migrate_down()
+
+    # Verify env vars were expanded in the SQL
+    expected_sql = "DROP TABLE events ON CLUSTER 'my_cluster'"
+
+    mock_execute.assert_called_once_with(expected_sql, None)