diff --git a/pipenv/project.py b/pipenv/project.py
index effaa17e..70e05006 100644
--- a/pipenv/project.py
+++ b/pipenv/project.py
@@ -615,8 +615,12 @@ class Project(object):
     def pipfile_sources(self):
         if 'source' in self.parsed_pipfile:
             sources = []
-            for s in self.parsed_pipfile['source']:
-                s['url'] = os.path.expandvars(s['url'])
+            for i, s in enumerate(self.parsed_pipfile['source']):
+                for k in s.keys():
+                    if k == 'verify_ssl':
+                        continue
+                    val = os.path.expandvars(self.parsed_pipfile['source'][i][k])
+                    s[k] = val
                 sources.append(s)
             return sources
         return [DEFAULT_SOURCE]
@@ -629,10 +633,8 @@ class Project(object):
             if sources_:
                 return sources_
 
-        if 'source' in self.parsed_pipfile:
-            return self.parsed_pipfile['source']
         else:
-            return [DEFAULT_SOURCE]
+            return self.pipfile_sources
 
     def find_source(self, source):
         """given a source, find it.
diff --git a/tests/integration/test_project.py b/tests/integration/test_project.py
index 4e8fe44a..62781c11 100644
--- a/tests/integration/test_project.py
+++ b/tests/integration/test_project.py
@@ -2,6 +2,30 @@
 import pytest
 import os
 from pipenv.project import Project
+from pipenv.utils import temp_environ
+from pipenv.patched import pipfile
+
+
+@pytest.mark.project
+@pytest.mark.sources
+@pytest.mark.environ
+def test_pipfile_envvar_expansion(PipenvInstance):
+    with PipenvInstance(chdir=True) as p:
+        with temp_environ():
+            with open(p.pipfile_path, 'w') as f:
+                f.write("""
+[[source]]
+url = 'https://${TEST_HOST}/simple'
+verify_ssl = false
+name = "pypi"
+
+[packages]
+pytz = "*"
+                """.strip())
+            os.environ['TEST_HOST'] = 'localhost:5000'
+            project = Project()
+            assert project.sources[0]['url'] == 'https://localhost:5000/simple'
+            assert 'localhost:5000' not in str(pipfile.load(p.pipfile_path))
 
 
 @pytest.mark.project