diff --git a/pkg/config/env.go b/pkg/config/env.go
index 0874fb57..8fd9c87b 100644
--- a/pkg/config/env.go
+++ b/pkg/config/env.go
@@ -153,7 +153,11 @@ func ReadAbraShEnvVars(abraSh string) (map[string]string, error) {
 	scanner := bufio.NewScanner(file)
 	for scanner.Scan() {
 		line := scanner.Text()
-		if strings.Contains(line, "export") {
+		if strings.Contains(line, "export ") {
+			if len(strings.TrimSpace(line)) < len(line) {
+				// NOTE(d1): indented lines are exports within functions
+				continue
+			}
 			splitVals := strings.Split(line, "export ")
 			envVarDef := splitVals[len(splitVals)-1]
 			keyVal := strings.Split(envVarDef, "=")
diff --git a/pkg/config/env_test.go b/pkg/config/env_test.go
index 157d6ec9..bdfbdf7a 100644
--- a/pkg/config/env_test.go
+++ b/pkg/config/env_test.go
@@ -87,3 +87,25 @@ func TestReadEnv(t *testing.T) {
 		)
 	}
 }
+
+func TestReadAbraShEnvVars(t *testing.T) {
+	if err := catalogue.EnsureCatalogue(); err != nil {
+		t.Fatal(err)
+	}
+
+	offline := true
+	r, err := recipe.Get("abra-integration-test-recipe", offline)
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	abraShPath := fmt.Sprintf("%s/%s/%s", config.RECIPES_DIR, r.Name, "abra.sh")
+	abraShEnv, err := config.ReadAbraShEnvVars(abraShPath)
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	if _, ok := abraShEnv["INNER_FOO"]; ok {
+		t.Error("INNER_FOO should not be exported")
+	}
+}