diff --git a/cmd/lk/agent_run.go b/cmd/lk/agent_run.go
index 03f5c5eb..d9af62f3 100644
--- a/cmd/lk/agent_run.go
+++ b/cmd/lk/agent_run.go
@@ -212,6 +212,9 @@ func mergeCredentials(explicit, project agentCredentials) agentCredentials {
 // subprocess running from dir.
 func resolveCredentials(ctx context.Context, cmd *cli.Command, dir string, loadOpts ...loadOption) ([]string, error) {
 	explicit := explicitCredentials(cmd)
+	// The agent gets LIVEKIT_* credentials from the environment even under
+	// --user-auth, so they aren't ignored here.
+	envCredentialsUsed = true
 
 	// An explicitly named project always wins, mirroring resolveProject's
 	// priority order. Without this, ambient LIVEKIT_* shell variables (which
diff --git a/cmd/lk/testdata/script/env-keys-with-user-auth.txtar b/cmd/lk/testdata/script/env-keys-with-user-auth.txtar
index cd04ce1c..27428b1e 100644
--- a/cmd/lk/testdata/script/env-keys-with-user-auth.txtar
+++ b/cmd/lk/testdata/script/env-keys-with-user-auth.txtar
@@ -1,5 +1,6 @@
 # --user-auth wins over API keys in the environment: the command runs
-# as the signed-in user, with a one-line note that the env keys are ignored.
+# as the signed-in user, with a one-line note that the env credentials are
+# ignored.
 env LIVEKIT_URL=ws://env.test
 env LIVEKIT_API_KEY=APIenv
 env LIVEKIT_API_SECRET=secretenv
@@ -10,8 +11,7 @@ cp stderr lk.stderr
 requests
 cmp stdout want-requests
 
-skip 'known bug: --user-auth ignores LIVEKIT_API_KEY and LIVEKIT_API_SECRET without saying so'
-grep 'LIVEKIT_API_KEY.*ignored' lk.stderr
+grep '^Ignoring LIVEKIT_URL, LIVEKIT_API_KEY, LIVEKIT_API_SECRET from environment \(--user-auth uses your session\)$' lk.stderr
 
 -- home/.livekit/cli-config.yaml --
 default_user: u_1
diff --git a/cmd/lk/user_auth.go b/cmd/lk/user_auth.go
index c8ea9821..ab5ede08 100644
--- a/cmd/lk/user_auth.go
+++ b/cmd/lk/user_auth.go
@@ -19,6 +19,7 @@ import (
 	"context"
 	"errors"
 	"fmt"
+	"os"
 	"strings"
 	"time"
 
@@ -247,9 +248,16 @@ func requireUserSession(cmd *cli.Command) (*config.CLIConfig, *config.UserConfig
 // resolves the session more than once still prints the breadcrumb only once.
 var userAnnounced bool
 
+// envCredentialsUsed is set by commands that hand LIVEKIT_* credentials from
+// the environment to what they run (agent runs, see resolveCredentials), so
+// announceUser doesn't call them ignored.
+var envCredentialsUsed bool
+
 // announceUser surfaces which signed-in user a command acts as — the user-auth
 // counterpart of the "Using project" breadcrumb (stderr, suppressed by --quiet).
-// The API is named when it isn't the default, e.g. for a staging sign-in.
+// The API is named when it isn't the default, e.g. for a staging sign-in. It
+// also names the LIVEKIT_* credentials in the environment that the command
+// ignores, since they don't switch modes (see userAuthEnabled).
 func announceUser(user *config.UserConfig) {
 	if userAnnounced || user == nil {
 		return
@@ -260,6 +268,18 @@ func announceUser(user *config.UserConfig) {
 	} else {
 		out.Statusf("Using user [%s] on [%s]", util.Accented(userLabel(user)), util.Accented(publicAPIURL))
 	}
+	if envCredentialsUsed {
+		return
+	}
+	var ignored []string
+	for _, name := range []string{"LIVEKIT_URL", "LIVEKIT_API_KEY", "LIVEKIT_API_SECRET"} {
+		if os.Getenv(name) != "" {
+			ignored = append(ignored, name)
+		}
+	}
+	if len(ignored) > 0 {
+		out.Statusf("Ignoring %s from environment (--user-auth uses your session)", strings.Join(ignored, ", "))
+	}
 }
 
 // resolveSessionUser picks the user to act as: the one named by userRef (the
diff --git a/cmd/lk/user_auth_test.go b/cmd/lk/user_auth_test.go
index 164e83ef..6ca11477 100644
--- a/cmd/lk/user_auth_test.go
+++ b/cmd/lk/user_auth_test.go
@@ -263,6 +263,46 @@ func TestCloudAPIError(t *testing.T) {
 	}
 }
 
+// TestAnnounceUserNamesIgnoredEnvCredentials checks the note announceUser adds
+// for LIVEKIT_* credentials in the environment that --user-auth leaves unused,
+// and that commands handing them to an agent don't get it.
+func TestAnnounceUserNamesIgnoredEnvCredentials(t *testing.T) {
+	prevAnnounced, prevUsed := userAnnounced, envCredentialsUsed
+	t.Cleanup(func() { userAnnounced, envCredentialsUsed = prevAnnounced, prevUsed })
+	user := &config.UserConfig{Id: "u_1", Email: "dev@example.com"}
+
+	for _, tc := range []struct {
+		name         string
+		url, key     string
+		secret       string
+		usedByAgent  bool
+		wantIgnoring string
+	}{
+		{name: "all three", url: "ws://env.test", key: "APIenv", secret: "secretenv",
+			wantIgnoring: "Ignoring LIVEKIT_URL, LIVEKIT_API_KEY, LIVEKIT_API_SECRET from environment (--user-auth uses your session)"},
+		{name: "only the key", key: "APIenv",
+			wantIgnoring: "Ignoring LIVEKIT_API_KEY from environment (--user-auth uses your session)"},
+		{name: "none set"},
+		{name: "handed to an agent", url: "ws://env.test", key: "APIenv", secret: "secretenv", usedByAgent: true},
+	} {
+		t.Run(tc.name, func(t *testing.T) {
+			t.Setenv("LIVEKIT_URL", tc.url)
+			t.Setenv("LIVEKIT_API_KEY", tc.key)
+			t.Setenv("LIVEKIT_API_SECRET", tc.secret)
+			userAnnounced, envCredentialsUsed = false, tc.usedByAgent
+			buf := withCapturedAnnounce(t)
+
+			announceUser(user)
+
+			if tc.wantIgnoring == "" {
+				assert.NotContains(t, buf.String(), "Ignoring")
+			} else {
+				assert.Contains(t, buf.String(), tc.wantIgnoring+"\n")
+			}
+		})
+	}
+}
+
 func TestSetUserAuthHidden(t *testing.T) {
 	root := &cli.Command{Flags: globalFlags}
 	for _, cmds := range [][]*cli.Command{ProjectCommands, WorkspaceCommands, UserCommands, CloudCommands, AgentCommands} {