diff --git a/README.rst b/README.rst
index 8445449..ce5d631 100644
--- a/README.rst
+++ b/README.rst
@@ -74,11 +74,12 @@ To exclude test functions:
 Using Environment Variables
 ---------------------------
 
-``--exclude-dir=`` can be set by the environment variables ``NOSE_EXCLUDE_DIRS``.
-Multiple exclude paths may be entered by separating them using a ``;``.
-The environment variable ``NOSE_EXCLUDE_DIRS_FILE`` when set to the path of a
-file-based exclusion list functions as though it were passed in with ``--exclude-dir-file=``.
-
+``--exclude-dir=`` and ``--exclude-test=`` can be set by the environment
+variables ``NOSE_EXCLUDE_DIRS`` and ``NOSE_EXCLUDE_TESTS`` respectively.
+Multiple exclude paths may be entered by separating them using a ``;``. The
+environment variable ``NOSE_EXCLUDE_DIRS_FILE`` when set to the path of a
+file-based exclusion list functions as though it were passed in with
+``--exclude-dir-file=``.
 
 Nose Configuration Files
 ========================
diff --git a/nose_exclude.py b/nose_exclude.py
index 396c28e..b03f3dc 100644
--- a/nose_exclude.py
+++ b/nose_exclude.py
@@ -25,6 +25,10 @@ class NoseExclude(Plugin):
             exclude_dirs = env.get('NOSE_EXCLUDE_DIRS', '')
             env_dirs.extend(exclude_dirs.split(';'))
 
+        if 'NOSE_EXCLUDE_TESTS' in env:
+            exclude_tests = env.get('NOSE_EXCLUDE_TESTS', '')
+            env_tests.extend(exclude_tests.split(';'))
+
         parser.add_option(
             str("--exclude-dir"), action="append",
             dest="exclude_dirs",
diff --git a/tests.py b/tests.py
index 688daea..e3a2360 100644
--- a/tests.py
+++ b/tests.py
@@ -144,6 +144,21 @@ class TestNoseExcludeTestNegative(PluginTester, unittest.TestCase):
         assert 'Ran 3 tests' in self.output
 
 
+class TestNoseExcludeTestsEnvVariables(PluginTester, unittest.TestCase):
+    """Test nose-exclude's use of environment variables"""
+
+    activate = "-v"
+    plugins = [NoseExclude()]
+    suitepath = os.path.join(os.getcwd(), 'test_dirs/unittest')
+    env = {'NOSE_EXCLUDE_TESTS':
+        'test_dirs.unittest.tests.UnitTests.test_a;'
+        'test_dirs.unittest.tests.test_c'
+    }
+
+    def test_test_excluded(self):
+        assert 'Ran 1 test' in self.output
+
+
 class TestNoseExcludeMultipleTest(PluginTester, unittest.TestCase):
     """Test nose-exclude multiple tests"""