diff --git a/ClaudeCodeSharpSDK/Execution/ClaudeExec.cs b/ClaudeCodeSharpSDK/Execution/ClaudeExec.cs
index 38d202b..a37e0ff 100644
--- a/ClaudeCodeSharpSDK/Execution/ClaudeExec.cs
+++ b/ClaudeCodeSharpSDK/Execution/ClaudeExec.cs
@@ -57,6 +57,7 @@ public sealed class ClaudeExec
 
     private const string AnthropicApiKeyEnv = "ANTHROPIC_API_KEY";
     private const string AnthropicBaseUrlEnv = "ANTHROPIC_BASE_URL";
+    private const string ClaudeCodeNestingEnv = "CLAUDECODE";
     private const string ContinueAndResumeConflictMessage = "ContinueMostRecent and ResumeSessionId cannot both be set.";
     private const string FlagAssignmentSeparator = "=";
     private const string ReplayUserMessagesUnsupportedMessage =
@@ -303,7 +304,9 @@ internal IReadOnlyDictionary<string, string> BuildEnvironment(string? baseUrl, s
 
         foreach (DictionaryEntry variable in Environment.GetEnvironmentVariables())
         {
-            if (variable.Key is string key && variable.Value is string value)
+            if (variable.Key is string key
+                && variable.Value is string value
+                && !string.Equals(key, ClaudeCodeNestingEnv, StringComparison.OrdinalIgnoreCase))
             {
                 environment[key] = value;
             }
diff --git a/Directory.Build.props b/Directory.Build.props
index 85ab563..be4ba23 100644
--- a/Directory.Build.props
+++ b/Directory.Build.props
@@ -13,7 +13,7 @@
     <EnforceCodeStyleInBuild>true</EnforceCodeStyleInBuild>
     <AnalysisLevel>latest-recommended</AnalysisLevel>
     <TreatWarningsAsErrors>true</TreatWarningsAsErrors>
-    <Version>1.0.1</Version>
+    <Version>1.0.2</Version>
     <PackageVersion>$(Version)</PackageVersion>
 
   </PropertyGroup>