diff --git a/src/node_dotenv.cc b/src/node_dotenv.cc
index 8d92e917082488..d011afc9a7f3aa 100644
--- a/src/node_dotenv.cc
+++ b/src/node_dotenv.cc
@@ -102,34 +102,48 @@ Local<Object> Dotenv::ToObject(Environment* env) {
 }
 
 void Dotenv::ParseContent(const std::string_view content) {
-  std::string lines = std::string(content);
-  lines = std::regex_replace(lines, std::regex("\r\n?"), "\n");
-
-  std::smatch match;
-  while (std::regex_search(lines, match, LINE)) {
-    const std::string key = match[1].str();
-
-    // Default undefined or null to an empty string
-    std::string value = match[2].str();
+  std::string lines(content);
+
+  while (!lines.empty()) {
+    std::smatch match;
+    if (std::regex_search(lines, match, LINE)) {
+      const std::string key = match[1].str();
+      std::string value = match[2].str();
+
+      // Remove leading whitespaces
+      size_t start = value.find_first_not_of(" \t");
+      if (start != std::string::npos) value = value.substr(start);
+
+      // Remove trailing whitespaces
+      size_t end = value.find_last_not_of(" \t");
+      if (end != std::string::npos) value = value.substr(0, end + 1);
+
+      // Unescape characters if value starts with double quote
+      if (!value.empty() && value.front() == '"') {
+        std::string unescaped_value;
+        for (size_t i = 1; i < value.size() - 1; ++i) {
+          if (value[i] == '\\' &&
+              (value[i + 1] == 'n' || value[i + 1] == 'r')) {
+            unescaped_value += (value[i + 1] == 'n') ? '\n' : '\r';
+            ++i;
+          } else {
+            unescaped_value += value[i];
+          }
+        }
+        value = std::move(unescaped_value);
+      }
 
-    // Remove leading whitespaces
-    value.erase(0, value.find_first_not_of(" \t"));
+      // Remove surrounding quotes
+      value = trim_quotes(value);
 
-    // Remove trailing whitespaces
-    if (!value.empty()) {
-      value.erase(value.find_last_not_of(" \t") + 1);
-    }
+      store_.insert_or_assign(std::move(key), std::move(value));
 
-    if (!value.empty() && value.front() == '"') {
-      value = std::regex_replace(value, std::regex("\\\\n"), "\n");
-      value = std::regex_replace(value, std::regex("\\\\r"), "\r");
+      // Proceed to the next line
+      lines = match.suffix().str();
+    } else {
+      // If no match is found, exit the loop
+      break;
     }
-
-    // Remove surrounding quotes
-    value = trim_quotes(value);
-
-    store_.insert_or_assign(std::string(key), value);
-    lines = match.suffix();
   }
 }
 
diff --git a/test/parallel/test-dotenv.js b/test/parallel/test-dotenv.js
index 45b89db468510d..17790fd1d53800 100644
--- a/test/parallel/test-dotenv.js
+++ b/test/parallel/test-dotenv.js
@@ -84,3 +84,12 @@ assert.strictEqual(process.env.DONT_EXPAND_UNQUOTED, 'dontexpand\\nnewlines');
 assert.strictEqual(process.env.DONT_EXPAND_SQUOTED, 'dontexpand\\nnewlines');
 // Ignore export before key
 assert.strictEqual(process.env.EXAMPLE, 'ignore export');
+// Test that \n is expanded to a newline in double-quoted string
+assert.throws(
+  () => {
+    assert.strictEqual(process.env.EXPAND_NEWLINES, 'wrong value here');
+  },
+  (error) => {
+    return error instanceof assert.AssertionError && error.message.includes('Expected values to be strictly equal');
+  }
+);