diff --git a/src/main/groovy/io/openliberty/tools/gradle/tasks/AbstractFeatureTask.groovy b/src/main/groovy/io/openliberty/tools/gradle/tasks/AbstractFeatureTask.groovy
index 14485c7a..031621bf 100644
--- a/src/main/groovy/io/openliberty/tools/gradle/tasks/AbstractFeatureTask.groovy
+++ b/src/main/groovy/io/openliberty/tools/gradle/tasks/AbstractFeatureTask.groovy
@@ -110,8 +110,8 @@ public class AbstractFeatureTask extends AbstractServerTask {
     }
 
     private class InstallFeatureTaskUtil extends InstallFeatureUtil {
-        public InstallFeatureTaskUtil(File installDir, File buildDir, String from, String to, Set<String> pluginListedEsas, List<ProductProperties> propertiesList, String openLibertyVerion, String containerName, List<String> additionalJsons, String verify, Collection<Map<String,String>> keyMap)  throws PluginScenarioException, PluginExecutionException {
-            super(installDir, buildDir, from, to, pluginListedEsas, propertiesList, openLibertyVerion, containerName, additionalJsons, verify, keyMap)
+        public InstallFeatureTaskUtil(File installDir, File buildDir, String from, String to, Set<String> pluginListedEsas, List<ProductProperties> propertiesList, String openLibertyVerion, String containerName, List<String> additionalJsons, String verify, Collection<Map<String,String>> keyMap, Map<String, String> environmentVariables)  throws PluginScenarioException, PluginExecutionException {
+            super(installDir, buildDir, from, to, pluginListedEsas, propertiesList, openLibertyVerion, containerName, additionalJsons, verify, keyMap, environmentVariables)
             setContainerEngine(this);
         }
 
@@ -295,7 +295,11 @@ public class AbstractFeatureTask extends AbstractServerTask {
     private void createNewInstallFeatureUtil(Set<String> pluginListedEsas, List<ProductProperties> propertiesList, String openLibertyVerion, String containerName, List<String> additionalJsons, Collection<Map<String,String>> keyMap) throws PluginExecutionException {
         try {
 			logger.info("Feature signature verify option: " + server.features.verify)
-            util = new InstallFeatureTaskUtil(getInstallDir(project), project.getLayout().getBuildDirectory().getAsFile().get(), server.features.from, server.features.to, pluginListedEsas, propertiesList, openLibertyVerion, containerName, additionalJsons, server.features.verify, keyMap)
+            Map<String, String> envVars = getToolchainEnvVar()
+            if (envVars != null && !envVars.isEmpty() && envVars.containsKey("JAVA_HOME")) {
+                logger.debug("Passing toolchain JAVA_HOME to InstallFeatureUtil: " + envVars.get("JAVA_HOME"))
+            }
+            util = new InstallFeatureTaskUtil(getInstallDir(project), project.getLayout().getBuildDirectory().getAsFile().get(), server.features.from, server.features.to, pluginListedEsas, propertiesList, openLibertyVerion, containerName, additionalJsons, server.features.verify, keyMap, envVars)
         } catch (PluginScenarioException e) {
             logger.debug("Exception received: " + e.getMessage(), (Throwable) e)
             logger.debug("Installing features from installUtility.")
diff --git a/src/test/groovy/io/openliberty/tools/gradle/InstallFeatureToolchainTest.groovy b/src/test/groovy/io/openliberty/tools/gradle/InstallFeatureToolchainTest.groovy
new file mode 100644
index 00000000..066575be
--- /dev/null
+++ b/src/test/groovy/io/openliberty/tools/gradle/InstallFeatureToolchainTest.groovy
@@ -0,0 +1,51 @@
+package io.openliberty.tools.gradle
+
+import org.gradle.testkit.runner.BuildResult
+import org.junit.Before
+import org.junit.BeforeClass
+import org.junit.Test
+
+import static org.junit.Assert.assertTrue
+
+class InstallFeatureToolchainTest extends AbstractIntegrationTest {
+    
+    static File resourceDir = new File("build/resources/test/kernel-install-feature-test")
+    static File buildDir = new File(integTestDir, "/install-feature-toolchain-test")
+    static String buildFilename = "install_features_dependencies.gradle"
+
+    @BeforeClass
+    public static void setup() {
+        createDir(buildDir)
+        createTestProject(buildDir, resourceDir, buildFilename)
+
+        File buildFile = new File(buildDir, "build.gradle")
+        def fileContent = buildFile.text
+        fileContent = fileContent.replace(
+            "apply plugin: 'liberty'",
+            "apply plugin: 'liberty'\napply plugin: 'java'\n\njava {\n    toolchain {\n        languageVersion = JavaLanguageVersion.of(17)\n    }\n}"
+        )
+        buildFile.text = fileContent
+    }
+    
+    @Before
+    public void before() {
+        runTasks(buildDir, "libertyCreate")
+        copyServer("server_empty.xml")
+        deleteDir(new File(buildDir, "build/wlp/lib/features"))
+    }
+    
+    @Test
+    public void testInstallFeatureWithToolchain() {
+        BuildResult result = runTasksResult(buildDir, "installFeature")
+        
+        String output = result.getOutput()
+
+        assertTrue("Should show toolchain configured message for installFeature task",
+                output.contains(String.format(TOOLCHAIN_CONFIGURED, "installFeature")))
+    }
+
+    private copyServer(String serverFile) {
+        assertTrue(new File(resourceDir, serverFile).exists())
+        copyFile(new File(resourceDir, serverFile), new File(buildDir, "build/wlp/usr/servers/defaultServer/server.xml"))
+    }
+}