diff --git a/compiler.go b/compiler.go
index c0679c2cbf..022ee263fe 100644
--- a/compiler.go
+++ b/compiler.go
@@ -115,7 +115,13 @@ func (c *Compiler) getVariables(t *ast.Task, call *Call, evaluateShVars bool) (*
 		}
 	}
 	// Resolve any outstanding 'Ref' values in global vars (esp. globals from imported Taskfiles).
-	c.TaskfileVars = templater.ReplaceVars(c.TaskfileVars, &templater.Cache{Vars: result})
+	// Only process variables with Ref set to avoid clobbering already-resolved sh: variables.
+	cache := &templater.Cache{Vars: result}
+	for k, v := range c.TaskfileVars.All() {
+		if v.Ref != "" {
+			c.TaskfileVars.Set(k, ast.Var{Value: templater.ResolveRef(v.Ref, cache)})
+		}
+	}
 
 	if t != nil {
 		for k, v := range t.IncludeVars.All() {
diff --git a/executor_test.go b/executor_test.go
index 05080b3474..370e3befd5 100644
--- a/executor_test.go
+++ b/executor_test.go
@@ -946,6 +946,32 @@ func TestReference(t *testing.T) {
 	}
 }
 
+func TestShVarWithIncludes(t *testing.T) {
+	t.Parallel()
+
+	tests := []struct {
+		name string
+		call string
+	}{
+		{
+			name: "sh var not clobbered by includes",
+			call: "default",
+		},
+	}
+
+	for _, test := range tests {
+		NewExecutorTest(t,
+			WithName(test.name),
+			WithExecutorOptions(
+				task.WithDir("testdata/var_sh_with_includes"),
+				task.WithSilent(true),
+				task.WithForce(true),
+			),
+			WithTask(cmp.Or(test.call, "default")),
+		)
+	}
+}
+
 func TestVarInheritance(t *testing.T) {
 	enableExperimentForTest(t, &experiments.EnvPrecedence, 1)
 	tests := []struct {
diff --git a/testdata/var_sh_with_includes/Included.yml b/testdata/var_sh_with_includes/Included.yml
new file mode 100644
index 0000000000..9c0f4e437a
--- /dev/null
+++ b/testdata/var_sh_with_includes/Included.yml
@@ -0,0 +1,6 @@
+version: '3'
+
+tasks:
+  noop:
+    cmds:
+      - "true"
diff --git a/testdata/var_sh_with_includes/Taskfile.yml b/testdata/var_sh_with_includes/Taskfile.yml
new file mode 100644
index 0000000000..7e3bf197dc
--- /dev/null
+++ b/testdata/var_sh_with_includes/Taskfile.yml
@@ -0,0 +1,18 @@
+version: '3'
+
+includes:
+  other:
+    taskfile: ./Included.yml
+    internal: true
+
+vars:
+  DYNAMIC_VAR:
+    sh: echo "hello"
+  DERIVED_VAR: "{{.DYNAMIC_VAR}} world"
+
+tasks:
+  default:
+    cmds:
+      - echo "DYNAMIC_VAR={{.DYNAMIC_VAR}}"
+      - echo "DERIVED_VAR={{.DERIVED_VAR}}"
+    silent: true
diff --git a/testdata/var_sh_with_includes/testdata/TestShVarWithIncludes-sh_var_not_clobbered_by_includes.golden b/testdata/var_sh_with_includes/testdata/TestShVarWithIncludes-sh_var_not_clobbered_by_includes.golden
new file mode 100644
index 0000000000..066c073193
--- /dev/null
+++ b/testdata/var_sh_with_includes/testdata/TestShVarWithIncludes-sh_var_not_clobbered_by_includes.golden
@@ -0,0 +1,2 @@
+DYNAMIC_VAR=hello
+DERIVED_VAR=hello world