diff --git a/Lib/test/test_embed.py b/Lib/test/test_embed.py
index 16d1c7dea6b4fa..fd474b12a0749a 100644
--- a/Lib/test/test_embed.py
+++ b/Lib/test/test_embed.py
@@ -96,6 +96,12 @@ def run_embedded_interpreter(self, *args, env=None,
             env = env.copy()
             env['SYSTEMROOT'] = os.environ['SYSTEMROOT']
 
+        if env is None and MS_WINDOWS:
+            if args[0] == "test_repeated_init_exec":
+                # PYTHONHOME needs to be removed for an executable in
+                # a build directory to import *.pyd repeatedly.
+                env = remove_python_envvars()
+
         p = subprocess.Popen(cmd,
                              stdout=subprocess.PIPE,
                              stderr=subprocess.PIPE,