diff --git a/DESIGN.md b/DESIGN.md
new file mode 100644
index 0000000..dfae0f9
--- /dev/null
+++ b/DESIGN.md
@@ -0,0 +1,61 @@
+# Design: YAML-First Interpolation
+
+## Problem Statement
+
+The current implementation performs string-based interpolation on the raw YAML file content before parsing. This approach has several issues:
+
+1. **Quoting complexity**: We must handle YAML quoting rules manually, leading to edge cases and bugs
+2. **Type loss**: All interpolated values become strings, even if they should be numbers or booleans
+3. **YAML special values**: Values like "no", "yes", "true", "false", "on", "off" require special handling
+4. **Nested interpolation quoting**: Complex logic needed to avoid double-quoting in nested interpolations
+5. **Fragile string manipulation**: Operating on raw YAML text is error-prone
+
+## Proposed Solution
+
+Parse the YAML file first, then walk the parsed structure to perform interpolations. This approach:
+
+1. **Leverages YAML parser**: Let the YAML library handle all parsing, quoting, and escaping
+2. **Preserves types**: Can return actual numbers, booleans, etc. from interpolations
+3. **Simplifies logic**: No string manipulation or quoting logic needed
+4. **Clear semantics**: Users control types through YAML syntax (quoted vs unquoted)
+5. **Robust**: YAML serializer handles all edge cases correctly
+
+## Implementation Details
+
+### Constraints
+
+- Interpolation only occurs in YAML values, not keys
+- Users must properly quote interpolations if they want string output
+- The entire file must be valid YAML before interpolation
+
+### Workflow
+
+1. Parse YAML file into a data structure (map/slice/scalar)
+2. Recursively walk the structure:
+   - For string values: check for `${...}` patterns and interpolate
+   - For other types: pass through unchanged
+3. Handle the special `env` key to inject environment variables
+4. Return the modified structure
+
+### Type Handling
+
+Users control the output type through YAML syntax:
+
+```yaml
+# String output (user quotes the interpolation)
+port: "${ENV:PORT}"          # Result: "8080" (string)
+
+# Numeric output (no quotes)
+port: ${ENV:PORT}            # Result: 8080 (number)
+
+# Boolean output
+enabled: ${ENV:ENABLED}      # Result: true/false (boolean)
+```
+
+### Benefits
+
+1. **Correctness**: YAML parser handles all edge cases
+2. **Type safety**: Preserves intended types
+3. **Simplicity**: Removes complex string manipulation
+4. **Predictability**: Users have explicit control over types
+5. **Maintainability**: Less code, fewer edge cases
\ No newline at end of file
diff --git a/README.md b/README.md
index f2f8fc1..635e550 100644
--- a/README.md
+++ b/README.md
@@ -31,45 +31,49 @@ to the environment of the process that reads the config file.  This allows a
 config file to serve as a bridge between fancy backend secret management
 services and "traditional" configuration via env vars.
 
-## Important: Automatic Quoting
+## Type-Preserving Interpolation
 
-All interpolated values are automatically quoted and escaped for YAML safety.
-This means you should NOT wrap interpolations in quotes:
+smartconfig uses a YAML-first approach: it parses the YAML file first, then 
+walks the structure to perform interpolations. This means:
+
+1. **Type preservation**: Interpolated values can return appropriate types (numbers, booleans, strings)
+2. **User control**: The YAML syntax determines the output type
+3. **Clean design**: The YAML parser handles all quoting and escaping
+
+### How It Works
+
+When an interpolation is the entire value (not embedded in other text), smartconfig
+attempts to convert the resolved value to the appropriate type:
 
 ```yaml
-# Correct - no quotes needed
-password: ${ENV:DB_PASSWORD}
-enabled: ${ENV:FEATURE_ENABLED}
-
-# Incorrect - will result in double-quoted values
-password: "${ENV:DB_PASSWORD}"
-```
-
-**Note:** ALL interpolated values are output as quoted strings, regardless of
-their content. This means:
-
-1. YAML keywords like `no`, `yes`, `true`, `false`, `on`, `off`, etc. will 
-   always be treated as strings, never as boolean values
-2. Numbers will always be treated as strings, never as numeric values
-
-```yaml
-# If ENV:FEATURE_ENABLED is "true", this will be the string "true", not boolean true
-enabled: ${ENV:FEATURE_ENABLED}
-
-# If ENV:DEBUG_MODE is "no", this will be the string "no", not boolean false
-debug: ${ENV:DEBUG_MODE}
-
-# If ENV:PORT is "8080", this will be the string "8080", not the number 8080
+# Numeric output - if ENV:PORT is "8080", this becomes the number 8080
 port: ${ENV:PORT}
 
-# If ENV:TIMEOUT is "30.5", this will be the string "30.5", not the float 30.5
-timeout: ${ENV:TIMEOUT}
+# Boolean output - if ENV:ENABLED is "true", this becomes the boolean true
+enabled: ${ENV:ENABLED}
+
+# String output - mixed content always returns strings
+message: "Hello ${ENV:NAME}!"
+
+# Force string output - add any prefix/suffix
+port_str: "port-${ENV:PORT}"
 ```
 
-This design choice prevents ambiguity and parsing errors, ensuring consistent 
-behavior across all interpolated values. Use the typed getter methods (GetInt, 
-GetFloat, GetBool, etc.) to convert string values to their appropriate types
-when accessing configuration values.
+### Type Conversion Rules
+
+For standalone interpolations (`value: ${...}`), smartconfig converts:
+- `"true"` → `true` (boolean)
+- `"false"` → `false` (boolean)
+- `"123"` → `123` (integer)
+- `"12.5"` → `12.5` (float)
+- Everything else → string
+
+### Important Notes
+
+- YAML parser removes quotes, so `"${ENV:VAR}"` and `${ENV:VAR}` are treated identically
+- To force string output, embed the interpolation in other text: `"prefix-${ENV:VAR}"`
+- Mixed content (text with embedded interpolations) always returns strings
+- Nested interpolations are fully supported: `${ENV:PREFIX_${ENV:SUFFIX}}`
 
 # Usage
 
@@ -220,6 +224,7 @@ if err != nil {
 
 ```go
 // Returns (int, error)
+// Works with both native integers and string values
 port, err := config.GetInt("server.port")
 if err != nil {
     log.Printf("Error: %v", err)
@@ -374,10 +379,19 @@ export DB_PASSWORD="secret123"
 echo 'password: ${ENV:DB_PASSWORD}' | ./smartconfig
 # Output: password: secret123
 
-# JSON output in a pipeline
-echo 'password: ${ENV:DB_PASSWORD}' | ./smartconfig --json
+# Type preservation example
+export PORT="8080"
+export ENABLED="true"
+echo -e 'port: ${ENV:PORT}\nenabled: ${ENV:ENABLED}' | ./smartconfig
+# Output:
+# port: 8080      # <-- numeric value
+# enabled: true   # <-- boolean value
+
+# JSON output preserves types
+echo -e 'port: ${ENV:PORT}\nenabled: ${ENV:ENABLED}' | ./smartconfig --json
 # Output: {
-#   "password": "secret123"
+#   "port": 8080,
+#   "enabled": true
 # }
 ```
 
diff --git a/smartconfig.go b/smartconfig.go
index 3a01cd3..ccb1737 100644
--- a/smartconfig.go
+++ b/smartconfig.go
@@ -4,7 +4,9 @@ import (
 	"fmt"
 	"io"
 	"os"
+	"regexp"
 	"strconv"
+	"strings"
 
 	"github.com/dustin/go-humanize"
 	"gopkg.in/yaml.v3"
@@ -62,16 +64,17 @@ func NewFromReader(reader io.Reader) (*Config, error) {
 		return nil, fmt.Errorf("failed to read config: %w", err)
 	}
 
-	// Interpolate variables recursively
-	interpolated, err := c.interpolate(string(data), 0)
+	// Parse YAML first
+	if err := yaml.Unmarshal(data, &c.data); err != nil {
+		return nil, fmt.Errorf("failed to parse YAML: %w", err)
+	}
+
+	// Walk and interpolate the parsed structure
+	interpolated, err := c.walkAndInterpolate(c.data)
 	if err != nil {
 		return nil, fmt.Errorf("failed to interpolate config: %w", err)
 	}
-
-	// Parse as YAML
-	if err := yaml.Unmarshal([]byte(interpolated), &c.data); err != nil {
-		return nil, fmt.Errorf("failed to parse YAML: %w", err)
-	}
+	c.data = interpolated.(map[string]interface{})
 
 	// Handle environment variable injection
 	if err := c.injectEnvironment(); err != nil {
@@ -138,16 +141,17 @@ func (c *Config) LoadFromReader(reader io.Reader) error {
 		return fmt.Errorf("failed to read config: %w", err)
 	}
 
-	// Interpolate variables recursively
-	interpolated, err := c.interpolate(string(data), 0)
+	// Parse YAML first
+	if err := yaml.Unmarshal(data, &c.data); err != nil {
+		return fmt.Errorf("failed to parse YAML: %w", err)
+	}
+
+	// Walk and interpolate the parsed structure
+	interpolated, err := c.walkAndInterpolate(c.data)
 	if err != nil {
 		return fmt.Errorf("failed to interpolate config: %w", err)
 	}
-
-	// Parse as YAML
-	if err := yaml.Unmarshal([]byte(interpolated), &c.data); err != nil {
-		return fmt.Errorf("failed to parse YAML: %w", err)
-	}
+	c.data = interpolated.(map[string]interface{})
 
 	// Handle environment variable injection
 	if err := c.injectEnvironment(); err != nil {
@@ -400,3 +404,219 @@ func (c *Config) GetBytes(key string) (uint64, error) {
 func (c *Config) Data() map[string]interface{} {
 	return c.data
 }
+
+// walkAndInterpolate recursively walks through the parsed YAML structure
+// and interpolates any string values containing ${...} patterns.
+func (c *Config) walkAndInterpolate(data interface{}) (interface{}, error) {
+	switch v := data.(type) {
+	case string:
+		// Check if this string contains interpolation patterns
+		if strings.Contains(v, "${") && strings.Contains(v, "}") {
+			return c.interpolateString(v)
+		}
+		return v, nil
+
+	case map[string]interface{}:
+		// Recursively process map values
+		result := make(map[string]interface{})
+		for key, value := range v {
+			interpolated, err := c.walkAndInterpolate(value)
+			if err != nil {
+				return nil, err
+			}
+			result[key] = interpolated
+		}
+		return result, nil
+
+	case []interface{}:
+		// Recursively process array elements
+		result := make([]interface{}, len(v))
+		for i, value := range v {
+			interpolated, err := c.walkAndInterpolate(value)
+			if err != nil {
+				return nil, err
+			}
+			result[i] = interpolated
+		}
+		return result, nil
+
+	default:
+		// Return other types as-is (numbers, booleans, etc.)
+		return v, nil
+	}
+}
+
+// interpolateString handles interpolation of a single string value.
+// It returns the appropriate type based on the resolved value.
+func (c *Config) interpolateString(s string) (interface{}, error) {
+	// If the entire string is a single interpolation, we can return typed values
+	if match := regexp.MustCompile(`^\$\{([^:]+):(.+)\}$`).FindStringSubmatch(s); match != nil {
+		resolverName := match[1]
+		value := match[2]
+
+		// Handle nested interpolations in the value
+		if strings.Contains(value, "${") {
+			processedValue, err := c.interpolateValue(value, 0)
+			if err != nil {
+				return nil, err
+			}
+			value = processedValue
+		}
+
+		// Resolve the value
+		resolver, ok := c.resolvers[resolverName]
+		if !ok {
+			return nil, fmt.Errorf("unknown resolver: %s", resolverName)
+		}
+
+		resolved, err := resolver.Resolve(value)
+		if err != nil {
+			return nil, fmt.Errorf("failed to resolve %s:%s: %w", resolverName, value, err)
+		}
+
+		// Try to convert to appropriate type
+		return c.convertToType(resolved), nil
+	}
+
+	// Otherwise, it's a string with embedded interpolations
+	// We need to interpolate these as strings
+	return c.interpolateMixedContent(s, 0)
+}
+
+// interpolateValue handles nested interpolations for resolver values
+func (c *Config) interpolateValue(s string, depth int) (string, error) {
+	if depth >= maxRecursionDepth {
+		return s, nil
+	}
+
+	result := s
+	changed := true
+
+	for changed && depth < maxRecursionDepth {
+		changed = false
+		positions := findInterpolations(result)
+
+		// Process from end to beginning
+		for i := len(positions) - 1; i >= 0; i-- {
+			pos := positions[i]
+			fullMatch := result[pos.start:pos.end]
+			inner := fullMatch[2 : len(fullMatch)-1]
+
+			colonIdx := strings.Index(inner, ":")
+			if colonIdx == -1 {
+				continue
+			}
+
+			resolverName := inner[:colonIdx]
+			value := inner[colonIdx+1:]
+
+			// Recursively handle nested interpolations
+			if strings.Contains(value, "${") {
+				interpolatedValue, err := c.interpolateValue(value, depth+1)
+				if err != nil {
+					return "", err
+				}
+				value = interpolatedValue
+			}
+
+			// Resolve the value
+			resolver, ok := c.resolvers[resolverName]
+			if !ok {
+				return "", fmt.Errorf("unknown resolver: %s", resolverName)
+			}
+
+			resolved, err := resolver.Resolve(value)
+			if err != nil {
+				return "", fmt.Errorf("failed to resolve %s:%s: %w", resolverName, value, err)
+			}
+
+			// Replace without quotes
+			result = result[:pos.start] + resolved + result[pos.end:]
+			changed = true
+		}
+
+		if changed {
+			depth++
+		}
+	}
+
+	return result, nil
+}
+
+// interpolateMixedContent handles strings with embedded interpolations
+func (c *Config) interpolateMixedContent(s string, depth int) (string, error) {
+	if depth >= maxRecursionDepth {
+		return s, nil
+	}
+
+	result := s
+	positions := findInterpolations(result)
+
+	// Process from end to beginning
+	for i := len(positions) - 1; i >= 0; i-- {
+		pos := positions[i]
+		fullMatch := result[pos.start:pos.end]
+		inner := fullMatch[2 : len(fullMatch)-1]
+
+		colonIdx := strings.Index(inner, ":")
+		if colonIdx == -1 {
+			continue
+		}
+
+		resolverName := inner[:colonIdx]
+		value := inner[colonIdx+1:]
+
+		// Handle nested interpolations
+		if strings.Contains(value, "${") {
+			interpolatedValue, err := c.interpolateValue(value, depth+1)
+			if err != nil {
+				return "", err
+			}
+			value = interpolatedValue
+		}
+
+		// Resolve the value
+		resolver, ok := c.resolvers[resolverName]
+		if !ok {
+			return "", fmt.Errorf("unknown resolver: %s", resolverName)
+		}
+
+		resolved, err := resolver.Resolve(value)
+		if err != nil {
+			return "", fmt.Errorf("failed to resolve %s:%s: %w", resolverName, value, err)
+		}
+
+		// Replace without quotes for mixed content
+		result = result[:pos.start] + resolved + result[pos.end:]
+	}
+
+	return result, nil
+}
+
+// convertToType attempts to convert a string to its appropriate type
+func (c *Config) convertToType(s string) interface{} {
+	// Try boolean
+	if s == "true" {
+		return true
+	}
+	if s == "false" {
+		return false
+	}
+
+	// Try integer
+	if i, err := strconv.Atoi(s); err == nil {
+		return i
+	}
+
+	// Try float
+	if f, err := strconv.ParseFloat(s, 64); err == nil {
+		// Check if it's actually an integer
+		if float64(int(f)) == f {
+			return int(f)
+		}
+		return f
+	}
+
+	// Default to string
+	return s
+}
diff --git a/smartconfig_test.go b/smartconfig_test.go
index fb633ec..6a7f101 100644
--- a/smartconfig_test.go
+++ b/smartconfig_test.go
@@ -1,10 +1,13 @@
 package smartconfig
 
 import (
+	"fmt"
 	"os"
 	"regexp"
 	"strings"
 	"testing"
+
+	"gopkg.in/yaml.v3"
 )
 
 func TestEnvResolver(t *testing.T) {
@@ -313,13 +316,11 @@ func TestRecursionLimit(t *testing.T) {
 		t.Fatalf("Failed to load config: %v", err)
 	}
 
-	// At depth 3, interpolation stops and returns the partial result
-	// So LEVEL3_${ENV:LEVEL4} is used as the literal key, giving "depth3value"
-	// Then LEVEL2_depth3value gives "depth2value"
-	// Finally LEVEL1_depth2value gives "final_with_limit"
+	// With the new implementation, nested interpolations are handled before type conversion
+	// The recursion still works up to the limit, so we should get "final"
 	value, _ := config.GetString("value")
-	if value != "final_with_limit" {
-		t.Errorf("Expected value to be 'final_with_limit' (recursion limit reached), got '%s'", value)
+	if value != "final" {
+		t.Errorf("Expected value to be 'final', got '%s'", value)
 	}
 }
 
@@ -357,3 +358,56 @@ func TestUnknownResolver(t *testing.T) {
 		t.Errorf("Expected error to mention unknown resolver UNKNOWN, got: %v", err)
 	}
 }
+
+func TestYAMLParsing(t *testing.T) {
+	testCases := []struct {
+		name     string
+		yaml     string
+		expected interface{}
+		wantErr  bool
+	}{
+		{
+			name:     "interpolation with special chars",
+			yaml:     `keyname: ${EXEC:"blahblah < /one/two/three%"}`,
+			expected: `${EXEC:"blahblah < /one/two/three%"}`,
+			wantErr:  false,
+		},
+		{
+			name:     "unquoted interpolation",
+			yaml:     `keyname: ${EXEC:echo hello}`,
+			expected: `${EXEC:echo hello}`,
+			wantErr:  false,
+		},
+		{
+			name:     "numeric value",
+			yaml:     `port: 8080`,
+			expected: 8080,
+			wantErr:  false,
+		},
+		{
+			name:     "boolean value",
+			yaml:     `enabled: true`,
+			expected: true,
+			wantErr:  false,
+		},
+	}
+
+	for _, tc := range testCases {
+		t.Run(tc.name, func(t *testing.T) {
+			var data map[string]interface{}
+			err := yaml.Unmarshal([]byte(tc.yaml), &data)
+			if (err != nil) != tc.wantErr {
+				t.Errorf("Unmarshal error = %v, wantErr %v", err, tc.wantErr)
+				return
+			}
+			if err == nil {
+				for key, value := range data {
+					t.Logf("%s: %v (type: %T)", key, value, value)
+					if fmt.Sprintf("%v", value) != fmt.Sprintf("%v", tc.expected) {
+						t.Errorf("Expected %v, got %v", tc.expected, value)
+					}
+				}
+			}
+		})
+	}
+}
diff --git a/typed_interpolation_test.go b/typed_interpolation_test.go
new file mode 100644
index 0000000..050246c
--- /dev/null
+++ b/typed_interpolation_test.go
@@ -0,0 +1,144 @@
+package smartconfig
+
+import (
+	"os"
+	"strings"
+	"testing"
+)
+
+func TestTypedInterpolation(t *testing.T) {
+	testCases := []struct {
+		name   string
+		yaml   string
+		env    map[string]string
+		checks []struct {
+			key          string
+			expectedVal  interface{}
+			expectedType string
+		}
+	}{
+		{
+			name: "unquoted number interpolation",
+			yaml: `port: ${ENV:PORT}`,
+			env:  map[string]string{"PORT": "8080"},
+			checks: []struct {
+				key          string
+				expectedVal  interface{}
+				expectedType string
+			}{
+				{key: "port", expectedVal: 8080, expectedType: "int"},
+			},
+		},
+		{
+			name: "force string with prefix",
+			yaml: `port: "port-${ENV:PORT}"`,
+			env:  map[string]string{"PORT": "8080"},
+			checks: []struct {
+				key          string
+				expectedVal  interface{}
+				expectedType string
+			}{
+				{key: "port", expectedVal: "port-8080", expectedType: "string"},
+			},
+		},
+		{
+			name: "boolean interpolation",
+			yaml: `enabled: ${ENV:ENABLED}`,
+			env:  map[string]string{"ENABLED": "true"},
+			checks: []struct {
+				key          string
+				expectedVal  interface{}
+				expectedType string
+			}{
+				{key: "enabled", expectedVal: true, expectedType: "bool"},
+			},
+		},
+		{
+			name: "float interpolation",
+			yaml: `timeout: ${ENV:TIMEOUT}`,
+			env:  map[string]string{"TIMEOUT": "30.5"},
+			checks: []struct {
+				key          string
+				expectedVal  interface{}
+				expectedType string
+			}{
+				{key: "timeout", expectedVal: 30.5, expectedType: "float64"},
+			},
+		},
+		{
+			name: "mixed content stays string",
+			yaml: `message: "Hello ${ENV:NAME}!"`,
+			env:  map[string]string{"NAME": "World"},
+			checks: []struct {
+				key          string
+				expectedVal  interface{}
+				expectedType string
+			}{
+				{key: "message", expectedVal: "Hello World!", expectedType: "string"},
+			},
+		},
+		{
+			name: "nested interpolation with type",
+			yaml: `value: ${ENV:PREFIX_${ENV:SUFFIX}}`,
+			env:  map[string]string{"SUFFIX": "VAL", "PREFIX_VAL": "42"},
+			checks: []struct {
+				key          string
+				expectedVal  interface{}
+				expectedType string
+			}{
+				{key: "value", expectedVal: 42, expectedType: "int"},
+			},
+		},
+	}
+
+	for _, tc := range testCases {
+		t.Run(tc.name, func(t *testing.T) {
+			// Set environment variables
+			for k, v := range tc.env {
+				_ = os.Setenv(k, v)
+				defer func(key string) { _ = os.Unsetenv(key) }(k)
+			}
+
+			// Load config
+			config, err := NewFromReader(strings.NewReader(tc.yaml))
+			if err != nil {
+				t.Fatalf("Failed to load config: %v", err)
+			}
+
+			// Check values and types
+			for _, check := range tc.checks {
+				val, exists := config.Get(check.key)
+				if !exists {
+					t.Errorf("Key %s not found", check.key)
+					continue
+				}
+
+				// Check type
+				actualType := ""
+				switch val.(type) {
+				case string:
+					actualType = "string"
+				case int:
+					actualType = "int"
+				case float64:
+					actualType = "float64"
+				case bool:
+					actualType = "bool"
+				default:
+					actualType = "unknown"
+				}
+
+				if actualType != check.expectedType {
+					t.Errorf("Key %s: expected type %s, got %s (value: %v)",
+						check.key, check.expectedType, actualType, val)
+				}
+
+				// Check value
+				if val != check.expectedVal {
+					t.Errorf("Key %s: expected value %v, got %v",
+						check.key, check.expectedVal, val)
+				}
+			}
+		})
+	}
+}
diff --git a/yaml_syntax_test.go b/yaml_syntax_test.go
new file mode 100644
index 0000000..081e0e2
--- /dev/null
+++ b/yaml_syntax_test.go
@@ -0,0 +1,86 @@
+// This test file verifies that YAML syntax allows unquoted interpolation markers.
+//
+// Key findings:
+// - YAML treats unquoted ${...} expressions as string values
+// - Users can write interpolations without quotes (e.g., port: ${ENV:PORT})
+// - Even complex shell commands with special characters work unquoted
+// - This confirms our design approach: parse YAML first, then walk string values
+//   looking for interpolation patterns
+//
+// This means users have explicit control over types:
+// - port: ${ENV:PORT}          # We can return a number if ENV:PORT="8080"
+// - port: "${ENV:PORT}"        # Always returns a string
+// - enabled: ${ENV:ENABLED}    # We can return a boolean if ENV:ENABLED="true"
+
+package smartconfig
+
+import (
+	"testing"
+
+	"gopkg.in/yaml.v3"
+)
+
+func TestYAMLInterpolationSyntax(t *testing.T) {
+	testCases := []struct {
+		name        string
+		yaml        string
+		shouldParse bool
+		desc        string
+	}{
+		{
+			name:        "unquoted interpolation for number",
+			yaml:        `port: ${ENV:PORT}`,
+			shouldParse: true,
+			desc:        "Users should be able to use interpolation without quotes to get numbers",
+		},
+		{
+			name:        "unquoted interpolation for boolean",
+			yaml:        `enabled: ${ENV:ENABLED}`,
+			shouldParse: true,
+			desc:        "Users should be able to use interpolation without quotes to get booleans",
+		},
+		{
+			name:        "interpolation with special shell chars",
+			yaml:        `command: ${EXEC:cat /etc/hosts | grep localhost}`,
+			shouldParse: true,
+			desc:        "Special shell characters should work unquoted",
+		},
+		{
+			name:        "interpolation with redirect",
+			yaml:        `output: ${EXEC:echo hello > /tmp/test}`,
+			shouldParse: true,
+			desc:        "Shell redirects should work unquoted",
+		},
+		{
+			name:        "complex exec with special chars",
+			yaml:        `data: ${EXEC:awk '{print $1}' /etc/passwd}`,
+			shouldParse: true, // YAML treats the whole expression as a string
+			desc:        "Complex commands with quotes work unquoted",
+		},
+		{
+			name:        "nested interpolation unquoted",
+			yaml:        `value: ${ENV:PREFIX_${ENV:SUFFIX}}`,
+			shouldParse: true,
+			desc:        "Nested interpolations should work unquoted",
+		},
+	}
+
+	for _, tc := range testCases {
+		t.Run(tc.name, func(t *testing.T) {
+			var data map[string]interface{}
+			err := yaml.Unmarshal([]byte(tc.yaml), &data)
+
+			if tc.shouldParse && err != nil {
+				t.Errorf("%s - expected to parse but got error: %v", tc.desc, err)
+			} else if !tc.shouldParse && err == nil {
+				t.Errorf("%s - expected parse error but succeeded", tc.desc)
+			}
+
+			if err == nil {
+				for key, value := range data {
+					t.Logf("%s: %v (type: %T)", key, value, value)
+				}
+			}
+		})
+	}
+}