diff --git a/cmd/nvidia-dra-plugin/nvlib.go b/cmd/nvidia-dra-plugin/nvlib.go
index 92f5bac0..ee293c50 100644
--- a/cmd/nvidia-dra-plugin/nvlib.go
+++ b/cmd/nvidia-dra-plugin/nvlib.go
@@ -31,8 +31,9 @@ import (
 
 type deviceLib struct {
 	nvdev.Interface
-	nvmllib       nvml.Interface
-	nvidiaSMIPath string
+	nvmllib           nvml.Interface
+	driverLibraryPath string
+	nvidiaSMIPath     string
 }
 
 func newDeviceLib(driverRoot root) (*deviceLib, error) {
@@ -46,32 +47,40 @@ func newDeviceLib(driverRoot root) (*deviceLib, error) {
 		return nil, fmt.Errorf("failed to locate nvidia-smi: %w", err)
 	}
 
-	// In order for nvidia-smi to run, we need to set the PATH to the parent of
-	// the nvidia-smi executable and update LD_PRELOAD to include the path to
-	// libnvidia-ml.so.1
-	updatePathListEnvvar("LD_PRELOAD", driverLibraryPath)
-	updatePathListEnvvar("PATH", filepath.Dir(nvidiaSMIPath))
-
 	// We construct an NVML library specifying the path to libnvidia-ml.so.1
 	// explicitly so that we don't have to rely on the library path.
 	nvmllib := nvml.New(
 		nvml.WithLibraryPath(driverLibraryPath),
 	)
 	d := deviceLib{
-		Interface:     nvdev.New(nvdev.WithNvml(nvmllib)),
-		nvmllib:       nvmllib,
-		nvidiaSMIPath: nvidiaSMIPath,
+		Interface:         nvdev.New(nvdev.WithNvml(nvmllib)),
+		nvmllib:           nvmllib,
+		driverLibraryPath: driverLibraryPath,
+		nvidiaSMIPath:     nvidiaSMIPath,
 	}
 	return &d, nil
 }
 
-// updatePathListEnvvar prepends a specified list of strings to a specified envvar.
-func updatePathListEnvvar(envvar string, prepend ...string) {
+// prependPathListEnvvar prepends a specified list of strings to a specified envvar and returns its value.
+func prependPathListEnvvar(envvar string, prepend ...string) string {
 	if len(prepend) == 0 {
-		return
+		return os.Getenv(envvar)
 	}
 	current := filepath.SplitList(os.Getenv(envvar))
-	os.Setenv(envvar, strings.Join(append(prepend, current...), string(filepath.ListSeparator)))
+	return strings.Join(append(prepend, current...), string(filepath.ListSeparator))
+}
+
+// setOrOverrideEnvvar adds or updates an envar to the list of specified envvars and returns it.
+func setOrOverrideEnvvar(envvars []string, key, value string) []string {
+	var updated []string
+	for _, envvar := range envvars {
+		pair := strings.SplitN(envvar, "=", 2)
+		if pair[0] == key {
+			continue
+		}
+		updated = append(updated, envvar)
+	}
+	return append(updated, fmt.Sprintf("%s=%s", key, value))
 }
 
 func (l deviceLib) Init() error {
@@ -481,10 +490,14 @@ func walkMigDevices(d nvml.Device, f func(i int, d nvml.Device) error) error {
 func (l deviceLib) setTimeSlice(uuids []string, timeSlice int) error {
 	for _, uuid := range uuids {
 		cmd := exec.Command(
-			"nvidia-smi",
+			l.nvidiaSMIPath,
 			"compute-policy",
 			"-i", uuid,
 			"--set-timeslice", fmt.Sprintf("%d", timeSlice))
+
+		// In order for nvidia-smi to run, we need update LD_PRELOAD to include the path to libnvidia-ml.so.1.
+		cmd.Env := setOrOverrideEnvvar(os.Environ(), "LD_PRELOAD", prependPathListEnvvar("LD_PRELOAD", l.driverLibraryPath))
+
 		output, err := cmd.CombinedOutput()
 		if err != nil {
 			klog.Errorf("\n%v", string(output))
@@ -497,9 +510,13 @@ func (l deviceLib) setTimeSlice(uuids []string, timeSlice int) error {
 func (l deviceLib) setComputeMode(uuids []string, mode string) error {
 	for _, uuid := range uuids {
 		cmd := exec.Command(
-			"nvidia-smi",
+			l.nvidiaSMIPath,
 			"-i", uuid,
 			"-c", mode)
+
+		// In order for nvidia-smi to run, we need update LD_PRELOAD to include the path to libnvidia-ml.so.1.
+		cmd.Env := setOrOverrideEnvvar(os.Environ(), "LD_PRELOAD", prependPathListEnvvar("LD_PRELOAD", l.driverLibraryPath))
+
 		output, err := cmd.CombinedOutput()
 		if err != nil {
 			klog.Errorf("\n%v", string(output))