diff --git a/lib/shakapacker/dev_server_runner.rb b/lib/shakapacker/dev_server_runner.rb
index 5133c2b34..933934a23 100644
--- a/lib/shakapacker/dev_server_runner.rb
+++ b/lib/shakapacker/dev_server_runner.rb
@@ -21,7 +21,7 @@ def load_config
         @config = Configuration.new(
           root_path: app_root,
           config_path: Pathname.new(@shakapacker_config),
-          env: ENV["RAILS_ENV"]
+          env: ENV["RAILS_ENV"] || "development"
         )
 
         dev_server = DevServer.new(@config)
diff --git a/lib/shakapacker/runner.rb b/lib/shakapacker/runner.rb
index 5c8074375..35c7181ec 100644
--- a/lib/shakapacker/runner.rb
+++ b/lib/shakapacker/runner.rb
@@ -2,7 +2,7 @@ module Shakapacker
   class Runner
     def self.run(argv)
       $stdout.sync = true
-      ENV["NODE_ENV"] ||= (ENV["RAILS_ENV"] == "production") ? "production" : "development"
+      ENV["NODE_ENV"] ||= ENV["RAILS_ENV"] || "development"
       new(argv).run
     end
 
diff --git a/lib/tasks/shakapacker/compile.rake b/lib/tasks/shakapacker/compile.rake
index 30bd39be3..5ac4aa25c 100644
--- a/lib/tasks/shakapacker/compile.rake
+++ b/lib/tasks/shakapacker/compile.rake
@@ -3,7 +3,7 @@ $stdout.sync = true
 namespace :shakapacker do
   desc "Compile JavaScript packs using webpack for production with digests"
   task compile: ["shakapacker:verify_install", :environment] do
-    Shakapacker.with_node_env(ENV.fetch("NODE_ENV", "production")) do
+    Shakapacker.with_node_env(ENV.fetch("NODE_ENV", ENV["RAILS_ENV"] || "production")) do
       Shakapacker.ensure_log_goes_to_stdout do
         exit! unless Shakapacker.compile
       end