diff --git a/kernel/config.c b/kernel/config.c
index 001705f..d46ca41 100644
--- a/kernel/config.c
+++ b/kernel/config.c
@@ -137,8 +137,8 @@ UWORD ram_top = 0; /* How much ram in Kbytes               */
 static UBYTE ErrorAlreadyPrinted[128];
 
 
-char master_env[128] = {"PATH="};   /* some shells panic on empty master env. */
-static char *envp = master_env + 6; /* point to the second zero */
+char master_env[128] = {0};
+static char *envp = master_env;
 
 struct config Config = {
   0,
diff --git a/kernel/main.c b/kernel/main.c
index 05d6fd8..079eca5 100644
--- a/kernel/main.c
+++ b/kernel/main.c
@@ -364,6 +364,8 @@ STATIC void kernel()
   int rc;
 
   exb.exec.env_seg = DOS_PSP + 8;
+  if (master_env[0] == '\0')   /* some shells panic on empty master env. */
+    strcpy(master_env, "PATH=.");
   fmemcpy(MK_FP(exb.exec.env_seg, 0), master_env, sizeof(master_env));
 
   /* process 0       */