diff --git a/client.go b/client.go
index f64d752..b81b799 100644
--- a/client.go
+++ b/client.go
@@ -16,6 +16,7 @@ type KVSClient struct {
 	httpClient    *http.Client
 	profiles      map[string]Profile
 	activeProfile string
+	variables     map[string]string // Shell variables for scripting
 }
 
 // NewKVSClient creates a new KVS client instance
@@ -25,7 +26,8 @@ func NewKVSClient(baseURL string) *KVSClient {
 		httpClient: &http.Client{
 			Timeout: 30 * time.Second,
 		},
-		profiles: make(map[string]Profile),
+		profiles:  make(map[string]Profile),
+		variables: make(map[string]string),
 	}
 }
 
diff --git a/cmd_system.go b/cmd_system.go
index dc0111b..60132ca 100644
--- a/cmd_system.go
+++ b/cmd_system.go
@@ -67,6 +67,13 @@ Export/Import:
     --skip-existing          - Skip existing keys (default)
     --overwrite              - Overwrite existing keys
 
+Shell Scripting:
+  set <name> <value>         - Set shell variable
+  unset <name>               - Remove shell variable
+  vars                       - List all variables
+    Variables: $VAR or ${VAR}
+    Environment: $ENV:VARNAME
+
 Batch Operations:
   batch <file>               - Execute commands from file
   source <file>              - Alias for batch
diff --git a/cmd_variables.go b/cmd_variables.go
new file mode 100644
index 0000000..76257ac
--- /dev/null
+++ b/cmd_variables.go
@@ -0,0 +1,84 @@
+package main
+
+import (
+	"fmt"
+	"os"
+	"regexp"
+	"strings"
+)
+
+// handleSet sets a shell variable
+func (c *KVSClient) handleSet(args []string) {
+	if len(args) < 2 {
+		fmt.Println(red("Usage: set <name> <value>"))
+		fmt.Println("Example: set USER_ID abc-123")
+		return
+	}
+
+	name := args[0]
+	value := strings.Join(args[1:], " ")
+
+	c.variables[name] = value
+	fmt.Printf(green("Set:")+" %s = %s\n", name, value)
+}
+
+// handleUnset removes a shell variable
+func (c *KVSClient) handleUnset(args []string) {
+	if len(args) < 1 {
+		fmt.Println(red("Usage: unset <name>"))
+		return
+	}
+
+	name := args[0]
+	if _, exists := c.variables[name]; exists {
+		delete(c.variables, name)
+		fmt.Println(green("Unset:"), name)
+	} else {
+		fmt.Println(yellow("Variable not set:"), name)
+	}
+}
+
+// handleVars lists all shell variables
+func (c *KVSClient) handleVars(args []string) {
+	if len(c.variables) == 0 {
+		fmt.Println(yellow("No variables set"))
+		return
+	}
+
+	fmt.Println(cyan("Shell Variables:"))
+	for name, value := range c.variables {
+		fmt.Printf("  %s = %s\n", name, value)
+	}
+}
+
+// expandVariables performs variable substitution on a string
+// Supports:
+// - $VAR or ${VAR} for shell variables
+// - $ENV:VAR for environment variables
+func (c *KVSClient) expandVariables(input string) string {
+	// Pattern for $VAR or ${VAR}
+	varPattern := regexp.MustCompile(`\$\{?([A-Za-z_][A-Za-z0-9_]*)\}?`)
+
+	// Pattern for $ENV:VAR
+	envPattern := regexp.MustCompile(`\$ENV:([A-Za-z_][A-Za-z0-9_]*)`)
+
+	// First, replace environment variables
+	result := envPattern.ReplaceAllStringFunc(input, func(match string) string {
+		varName := envPattern.FindStringSubmatch(match)[1]
+		if value, exists := os.LookupEnv(varName); exists {
+			return value
+		}
+		return match // Leave unchanged if not found
+	})
+
+	// Then, replace shell variables
+	result = varPattern.ReplaceAllStringFunc(result, func(match string) string {
+		varName := varPattern.FindStringSubmatch(match)[1]
+		if value, exists := c.variables[varName]; exists {
+			return value
+		}
+		return match // Leave unchanged if not found
+	})
+
+	return result
+}
diff --git a/main.go b/main.go
index ba6a498..508c90d 100644
--- a/main.go
+++ b/main.go
@@ -10,6 +10,9 @@ import (
 
 // executeCommand executes a single command line
 func (c *KVSClient) executeCommand(line string) bool {
+	// Expand variables in the line
+	line = c.expandVariables(line)
+
 	parts := parseCommand(line)
 	if len(parts) == 0 {
 		return true
@@ -66,6 +69,12 @@ func (c *KVSClient) executeCommand(line string) bool {
 		c.handleImport(args)
 	case "export-list":
 		c.handleExportList(args)
+	case "set":
+		c.handleSet(args)
+	case "unset":
+		c.handleUnset(args)
+	case "vars":
+		c.handleVars(args)
 	case "batch", "source":
 		c.handleBatch(args, c.executeCommand)
 	default:
diff --git a/utils.go b/utils.go
index cfbed9c..62c5c50 100644
--- a/utils.go
+++ b/utils.go
@@ -130,6 +130,9 @@ var completer = readline.NewPrefixCompleter(
 	readline.PcItem("export"),
 	readline.PcItem("import"),
 	readline.PcItem("export-list"),
+	readline.PcItem("set"),
+	readline.PcItem("unset"),
+	readline.PcItem("vars"),
 	readline.PcItem("batch"),
 	readline.PcItem("source"),
 	readline.PcItem("help"),