2 files changed, 28 insertions, 1 deletions
diff --git a/packages/cli/src/config/auth.ts b/packages/cli/src/config/auth.ts
index 439bd36b..4561f5d6 100644
--- a/packages/cli/src/config/auth.ts
+++ b/packages/cli/src/config/auth.ts
@@ -9,7 +9,7 @@ import { loadEnvironment } from './settings.js';
 
 export const validateAuthMethod = (authMethod: string): string | null => {
   loadEnvironment();
-  if (authMethod === AuthType.LOGIN_WITH_GOOGLE) {
+  if (authMethod === AuthType.LOGIN_WITH_GOOGLE || AuthType.CLOUD_SHELL) {
     return null;
   }
 
diff --git a/packages/cli/src/config/settings.ts b/packages/cli/src/config/settings.ts
index 93f042aa..c2d03167 100644
--- a/packages/cli/src/config/settings.ts
+++ b/packages/cli/src/config/settings.ts
@@ -203,8 +203,35 @@ function findEnvFile(startDir: string): string | null {
   }
 }
 
+export function setUpCloudShellEnvironment(envFilePath: string | null): void {
+  // Special handling for GOOGLE_CLOUD_PROJECT in Cloud Shell:
+  // Because GOOGLE_CLOUD_PROJECT in Cloud Shell tracks the project
+  // set by the user using "gcloud config set project" we do not want to
+  // use its value. So, unless the user overrides GOOGLE_CLOUD_PROJECT in
+  // one of the .env files, we set the Cloud Shell-specific default here.
+  if (envFilePath && fs.existsSync(envFilePath)) {
+    const envFileContent = fs.readFileSync(envFilePath);
+    const parsedEnv = dotenv.parse(envFileContent);
+    if (parsedEnv.GOOGLE_CLOUD_PROJECT) {
+      // .env file takes precedence in Cloud Shell
+      process.env.GOOGLE_CLOUD_PROJECT = parsedEnv.GOOGLE_CLOUD_PROJECT;
+    } else {
+      // If not in .env, set to default and override global
+      process.env.GOOGLE_CLOUD_PROJECT = 'cloudshell-gca';
+    }
+  } else {
+    // If no .env file, set to default and override global
+    process.env.GOOGLE_CLOUD_PROJECT = 'cloudshell-gca';
+  }
+}
+
 export function loadEnvironment(): void {
   const envFilePath = findEnvFile(process.cwd());
+
+  if (process.env.CLOUD_SHELL === 'true') {
+    setUpCloudShellEnvironment(envFilePath);
+  }
+
   if (envFilePath) {
     dotenv.config({ path: envFilePath, quiet: true });
   }