diff --git a/.gitignore b/.gitignore
index 45afd8fef7f0..37c66b084feb 100644
--- a/.gitignore
+++ b/.gitignore
@@ -70,6 +70,8 @@ packages/babel-standalone/babel.min.js
 /eslint/*/LICENSE
 !/packages/babel-eslint-plugin/LICENSE
 /.vscode
+# local directory for VSCode Extension - https://marketplace.visualstudio.com/items?itemName=xyz.local-history
+/.history
 
 /dts
 
diff --git a/jest.config.js b/jest.config.js
index 2a03ce4e4202..276e156144d9 100644
--- a/jest.config.js
+++ b/jest.config.js
@@ -21,6 +21,7 @@ module.exports = {
     "/test/helpers/",
     "<rootDir>/test/warning\\.js",
     "<rootDir>/build/",
+    "<rootDir>/.history/", // local directory for VSCode Extension - https://marketplace.visualstudio.com/items?itemName=xyz.local-history
     "_browser\\.js",
   ],
   testEnvironment: "node",
diff --git a/packages/babel-helper-compilation-targets/src/index.ts b/packages/babel-helper-compilation-targets/src/index.ts
index c4077623583b..2919080b86d7 100644
--- a/packages/babel-helper-compilation-targets/src/index.ts
+++ b/packages/babel-helper-compilation-targets/src/index.ts
@@ -154,8 +154,11 @@ function generateTargets(inputTargets: InputTargets): Targets {
   return input as any as Targets;
 }
 
-function resolveTargets(queries: Browsers): Targets {
-  const resolved = browserslist(queries, { mobileToDesktop: true });
+function resolveTargets(queries: Browsers, env?: string): Targets {
+  const resolved = browserslist(queries, {
+    mobileToDesktop: true,
+    env,
+  });
   return getLowestVersions(resolved);
 }
 
@@ -217,7 +220,7 @@ export default function getTargets(
   }
 
   if (browsers) {
-    const queryBrowsers = resolveTargets(browsers);
+    const queryBrowsers = resolveTargets(browsers, options.browserslistEnv);
 
     if (esmodules === "intersect") {
       for (const browser of Object.keys(queryBrowsers)) {
diff --git a/packages/babel-helper-compilation-targets/test/browserslist-extends/browserslist-extends.spec.js b/packages/babel-helper-compilation-targets/test/browserslist-extends/browserslist-extends.spec.js
new file mode 100644
index 000000000000..876f30777eb0
--- /dev/null
+++ b/packages/babel-helper-compilation-targets/test/browserslist-extends/browserslist-extends.spec.js
@@ -0,0 +1,37 @@
+import { dirname, resolve } from "path";
+import { fileURLToPath } from "url";
+import getTargets from "../../lib";
+
+const currentDir = dirname(fileURLToPath(import.meta.url));
+
+const oldEnv = process.env.BROWSERSLIST_DANGEROUS_EXTEND;
+
+beforeAll(() => {
+  process.env.BROWSERSLIST_DANGEROUS_EXTEND = true;
+});
+
+afterAll(() => {
+  process.env.BROWSERSLIST_DANGEROUS_EXTEND = oldEnv;
+});
+
+it("pass env to configs used with extends", async () => {
+  const actual = getTargets(
+    {
+      browsers: [
+        `extends ${resolve(
+          currentDir,
+          "fixtures",
+          "@babel",
+          "browserslist-config-fixture.cjs",
+        )}`,
+        "chrome >= 71",
+      ],
+    },
+    {
+      configPath: currentDir,
+      browserslistEnv: "custom",
+    },
+  );
+
+  expect(actual).toEqual({ chrome: "71.0.0", firefox: "75.0.0" });
+});
diff --git a/packages/babel-helper-compilation-targets/test/browserslist-extends/fixtures/@babel/browserslist-config-fixture.cjs b/packages/babel-helper-compilation-targets/test/browserslist-extends/fixtures/@babel/browserslist-config-fixture.cjs
new file mode 100644
index 000000000000..b6108c2910f3
--- /dev/null
+++ b/packages/babel-helper-compilation-targets/test/browserslist-extends/fixtures/@babel/browserslist-config-fixture.cjs
@@ -0,0 +1,4 @@
+module.exports = {
+  custom: ["firefox >= 75"],
+  defaults: ["chrome >= 5"],
+};