diff --git a/client/src/main/java-mvnd/org/mvndaemon/mvnd/client/DefaultClient.java b/client/src/main/java-mvnd/org/mvndaemon/mvnd/client/DefaultClient.java
index 61c8aea7d..df54b59cc 100644
--- a/client/src/main/java-mvnd/org/mvndaemon/mvnd/client/DefaultClient.java
+++ b/client/src/main/java-mvnd/org/mvndaemon/mvnd/client/DefaultClient.java
@@ -132,9 +132,11 @@ public static void main(String[] argv) throws Exception {
         } else {
             dir = parameters.userDir();
         }
+        Path multiModuleProjectDirectory = parameters.multiModuleProjectDirectory(dir);
         System.setProperty(
-                Environment.MAVEN_MULTIMODULE_PROJECT_DIRECTORY.getProperty(),
-                parameters.multiModuleProjectDirectory(dir).toString());
+                Environment.MAVEN_MULTIMODULE_PROJECT_DIRECTORY.getProperty(), multiModuleProjectDirectory.toString());
+        Environment.MAVEN_MULTIMODULE_PROJECT_DIRECTORY.addCommandLineOption(
+                args, multiModuleProjectDirectory.toString());
 
         // .mvn/jvm.config
         if (Files.isRegularFile(parameters.jvmConfigPath())) {
diff --git a/daemon/src/main/java/org/apache/maven/cli/DaemonMavenCli.java b/daemon/src/main/java/org/apache/maven/cli/DaemonMavenCli.java
index 3d14afaf2..c70abb989 100644
--- a/daemon/src/main/java/org/apache/maven/cli/DaemonMavenCli.java
+++ b/daemon/src/main/java/org/apache/maven/cli/DaemonMavenCli.java
@@ -1443,7 +1443,6 @@ static File resolveFile(File file, String workingDirectory) {
 
     static void populateProperties(CliRequest cliRequest, Properties systemProperties, Properties userProperties)
             throws InterpolationException {
-        addEnvVars(systemProperties);
 
         // ----------------------------------------------------------------------
         // Options that are set on the command line become system properties
@@ -1462,6 +1461,7 @@ static void populateProperties(CliRequest cliRequest, Properties systemPropertie
             }
         }
 
+        addEnvVars(systemProperties);
         SystemProperties.addSystemProperties(systemProperties);
 
         StringSearchInterpolator interpolator = createInterpolator(cliRequest, cliProperties, systemProperties);
@@ -1471,6 +1471,14 @@ static void populateProperties(CliRequest cliRequest, Properties systemPropertie
             userProperties.setProperty(name, value);
         }
 
+        systemProperties.putAll(userProperties);
+
+        // ----------------------------------------------------------------------
+        // I'm leaving the setting of system properties here as not to break
+        // the SystemPropertyProfileActivator. This won't harm embedding. jvz.
+        // ----------------------------------------------------------------------
+        userProperties.forEach((k, v) -> System.setProperty((String) k, (String) v));
+
         // ----------------------------------------------------------------------
         // Properties containing info about the currently running version of Maven
         // These override any corresponding properties set on the command line
diff --git a/integration-tests/src/test/java/org/mvndaemon/mvnd/it/MavenConfNativeIT.java b/integration-tests/src/test/java/org/mvndaemon/mvnd/it/MavenConfNativeIT.java
index 75c84bde0..aa0f1b0d4 100644
--- a/integration-tests/src/test/java/org/mvndaemon/mvnd/it/MavenConfNativeIT.java
+++ b/integration-tests/src/test/java/org/mvndaemon/mvnd/it/MavenConfNativeIT.java
@@ -56,4 +56,38 @@ void version() throws IOException, InterruptedException {
         assertTrue(
                 o.getMessages().stream().anyMatch(m -> m.toString().contains(conf)), "Output should contain " + conf);
     }
+
+    @Test
+    void interpolation() throws IOException, InterruptedException {
+        final TestClientOutput o = new TestClientOutput();
+        client.execute(
+                        o,
+                        "org.apache.maven.plugins:maven-help-plugin:3.2.0:evaluate",
+                        "-D",
+                        "expression=something",
+                        "-q",
+                        "-DforceStdout",
+                        "--raw-streams")
+                .assertSuccess();
+        String conf = parameters.multiModuleProjectDirectory().toString();
+        assertTrue(
+                o.getMessages().stream().anyMatch(m -> m.toString().contains(conf)), "Output should contain " + conf);
+    }
+
+    @Test
+    void multiModuleProjectDirectory() throws IOException, InterruptedException {
+        final TestClientOutput o = new TestClientOutput();
+        client.execute(
+                        o,
+                        "org.apache.maven.plugins:maven-help-plugin:3.2.0:evaluate",
+                        "-D",
+                        "expression=maven.multiModuleProjectDirectory",
+                        "-q",
+                        "-DforceStdout",
+                        "--raw-streams")
+                .assertSuccess();
+        String conf = parameters.multiModuleProjectDirectory().toString();
+        assertTrue(
+                o.getMessages().stream().anyMatch(m -> m.toString().contains(conf)), "Output should contain " + conf);
+    }
 }
diff --git a/integration-tests/src/test/java/org/mvndaemon/mvnd/it/MavenConfTest.java b/integration-tests/src/test/java/org/mvndaemon/mvnd/it/MavenConfTest.java
index eb9326850..2fe077c2f 100644
--- a/integration-tests/src/test/java/org/mvndaemon/mvnd/it/MavenConfTest.java
+++ b/integration-tests/src/test/java/org/mvndaemon/mvnd/it/MavenConfTest.java
@@ -18,7 +18,18 @@
  */
 package org.mvndaemon.mvnd.it;
 
+import java.io.IOException;
+
+import org.junit.jupiter.api.Test;
 import org.mvndaemon.mvnd.junit.MvndTest;
 
 @MvndTest(projectDir = "src/test/projects/maven-conf")
-class MavenConfTest extends MavenConfNativeIT {}
+class MavenConfTest extends MavenConfNativeIT {
+
+    @Test
+    @Override
+    void multiModuleProjectDirectory() throws IOException, InterruptedException {
+        // empty test as multiModuleProjectDirectory is set by the client
+        // and can not be really tested
+    }
+}