diff --git a/utils/bazel/llvm-project-overlay/mlir/tblgen.bzl b/utils/bazel/llvm-project-overlay/mlir/tblgen.bzl
--- a/utils/bazel/llvm-project-overlay/mlir/tblgen.bzl
+++ b/utils/bazel/llvm-project-overlay/mlir/tblgen.bzl
@@ -169,6 +169,9 @@
         inputs = trans_srcs,
         executable = ctx.executable.tblgen,
         arguments = [args],
+        # Make sure action_env settings are honored
+        # so the env is the same as when the tool was built
+        use_default_shell_env = True,
         mnemonic = "TdGenerate",
     )