diff --git a/Package.swift b/Package.swift
index a7484fe5..1b37d842 100644
--- a/Package.swift
+++ b/Package.swift
@@ -22,7 +22,7 @@ import PackageDescription
 
 let releaseVersion = ProcessInfo.processInfo.environment["RELEASE_VERSION"] ?? "0.0.0"
 let gitCommit = ProcessInfo.processInfo.environment["GIT_COMMIT"] ?? "unspecified"
-let builderShimVersion = "0.6.1"
+let builderShimVersion = "0.6.3"
 let scVersion = "0.12.1"
 
 let package = Package(
diff --git a/Tests/CLITests/Subcommands/Build/CLIBuilderEnvOnlyTest.swift b/Tests/CLITests/Subcommands/Build/CLIBuilderEnvOnlyTest.swift
new file mode 100644
index 00000000..952181b7
--- /dev/null
+++ b/Tests/CLITests/Subcommands/Build/CLIBuilderEnvOnlyTest.swift
@@ -0,0 +1,163 @@
+//===----------------------------------------------------------------------===//
+// Copyright © 2025 Apple Inc. and the container project authors.
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//   https://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+//===----------------------------------------------------------------------===//
+
+import Foundation
+import Testing
+
+extension TestCLIBuildBase {
+    class CLIBuilderEnvOnlyTest: TestCLIBuildBase {
+        override init() throws {
+            try super.init()
+        }
+
+        deinit {
+            try? builderDelete(force: true)
+        }
+
+        @Test func testBuildEnvironmentOnlyImageFromScratch() throws {
+            let tempDir: URL = try createTempDir()
+            let dockerfile =
+                """
+                FROM scratch
+
+                ARG BUILD_DATE
+                ARG VERSION=1.0.0
+
+                ENV TERM=xterm \\
+                    BUILD_DATE=${BUILD_DATE} \\
+                    APP_VERSION=${VERSION} \\
+                    PATH=/usr/local/bin:/usr/bin:/bin
+
+                LABEL maintainer="test@example.com" \\
+                      version="${VERSION}"
+                """
+
+            try createContext(tempDir: tempDir, dockerfile: dockerfile)
+            let imageName = "test-env-only:\(UUID().uuidString)"
+            try self.build(tag: imageName, tempDir: tempDir, buildArgs: ["BUILD_DATE=2025-01-01", "VERSION=2.0.0"])
+            #expect(try self.inspectImage(imageName) == imageName, "expected to have successfully built \(imageName)")
+        }
+
+        @Test func testBuildEnvironmentOnlyImageFromAlpine() throws {
+            let tempDir: URL = try createTempDir()
+            let dockerfile =
+                """
+                FROM ghcr.io/linuxcontainers/alpine:3.20
+
+                ENV APP_NAME=myapp \\
+                    APP_VERSION=1.0.0 \\
+                    APP_ENV=production
+
+                LABEL maintainer="test@example.com" \\
+                      version="1.0.0" \\
+                      description="Test environment-only image"
+                """
+
+            try createContext(tempDir: tempDir, dockerfile: dockerfile)
+            let imageName = "test-alpine-env:\(UUID().uuidString)"
+            try self.build(tag: imageName, tempDir: tempDir)
+            #expect(try self.inspectImage(imageName) == imageName, "expected to have successfully built \(imageName)")
+        }
+
+        @Test func testMultiStageBuildWithEnvOnlyBase() throws {
+            let tempDir: URL = try createTempDir()
+            let baseImageName = "test-env-base:\(UUID().uuidString)"
+
+            // First, create an environment-only base image
+            let baseDockerfile =
+                """
+                FROM scratch
+
+                ARG JOBS=6
+                ARG ARCH=amd64
+
+                ENV MAKEOPTS="-j${JOBS}" \\
+                    ARCH="${ARCH}" \\
+                    PATH=/usr/local/bin:/usr/bin
+                """
+
+            try createContext(tempDir: tempDir, dockerfile: baseDockerfile)
+            try self.build(tag: baseImageName, tempDir: tempDir, buildArgs: ["JOBS=8", "ARCH=arm64"])
+            #expect(try self.inspectImage(baseImageName) == baseImageName, "expected base image to build successfully")
+
+            // Now create a downstream image that uses it
+            let downstreamTempDir: URL = try createTempDir()
+            let downstreamDockerfile =
+                """
+                FROM \(baseImageName)
+
+                # Verify environment is inherited - note: can't use RUN with scratch base
+                LABEL test="env-inherited"
+                """
+
+            try createContext(tempDir: downstreamTempDir, dockerfile: downstreamDockerfile)
+            let downstreamImageName = "test-env-child:\(UUID().uuidString)"
+            try self.build(tag: downstreamImageName, tempDir: downstreamTempDir)
+            #expect(
+                try self.inspectImage(downstreamImageName) == downstreamImageName,
+                "expected downstream image to build successfully"
+            )
+        }
+
+        @Test func testComplexArgAndEnvCombinations() throws {
+            let tempDir: URL = try createTempDir()
+            let dockerfile =
+                """
+                FROM scratch
+
+                ARG JOBS=6
+                ARG MAXLOAD=7.00
+                ARG ARCH=amd64
+                ARG PROFILE_PATH=23.0/split-usr/no-multilib
+                ARG CHOST=x86_64-pc-linux-gnu
+                ARG CFLAGS=-O2 -pipe
+
+                ENV JOBS="${JOBS}" \\
+                    MAXLOAD="${MAXLOAD}" \\
+                    GENTOO_PROFILE="default/linux/${ARCH}/${PROFILE_PATH}" \\
+                    CHOST="${CHOST}" \\
+                    MAKEOPTS="-j${JOBS}" \\
+                    CFLAGS="${CFLAGS}" \\
+                    CXXFLAGS="${CFLAGS}"
+
+                LABEL maintainer="test@example.com"
+                """
+
+            try createContext(tempDir: tempDir, dockerfile: dockerfile)
+            let imageName = "test-complex-env:\(UUID().uuidString)"
+            try self.build(tag: imageName, tempDir: tempDir, buildArgs: ["JOBS=12", "ARCH=arm64"])
+            #expect(try self.inspectImage(imageName) == imageName, "expected to have successfully built \(imageName)")
+        }
+
+        @Test func testLabelOnlyDockerfile() throws {
+            let tempDir: URL = try createTempDir()
+            let dockerfile =
+                """
+                FROM scratch
+
+                LABEL maintainer="test@example.com" \\
+                      version="1.0.0" \\
+                      description="Test image with only labels" \\
+                      org.opencontainers.image.title="Test Image"
+                """
+
+            try createContext(tempDir: tempDir, dockerfile: dockerfile)
+            let imageName = "test-label-only:\(UUID().uuidString)"
+            try self.build(tag: imageName, tempDir: tempDir)
+            #expect(try self.inspectImage(imageName) == imageName, "expected to have successfully built \(imageName)")
+        }
+    }
+}