diff --git a/.chloggen/unify-env-var-gate-stable.yaml b/.chloggen/unify-env-var-gate-stable.yaml
new file mode 100644
index 00000000000..e75a001f686
--- /dev/null
+++ b/.chloggen/unify-env-var-gate-stable.yaml
@@ -0,0 +1,25 @@
+# Use this changelog template to create an entry for release notes.
+
+# One of 'breaking', 'deprecation', 'new_component', 'enhancement', 'bug_fix'
+change_type: breaking
+
+# The name of the component, or a single word describing the area of concern, (e.g. otlpreceiver)
+component: confmap
+
+# A brief description of the change.  Surround your text with quotes ("") if it needs to start with a backtick (`).
+note: Set the `confmap.unifyEnvVarExpansion` feature gate to Stable. Expansion of `$FOO` env vars is no longer supported.  Use `${FOO}` or `${env:FOO}` instead.
+
+# One or more tracking issues or pull requests related to the change
+issues: [10508]
+
+# (Optional) One or more lines of additional information to render under the primary note.
+# These lines will be padded with 2 spaces and then inserted directly into the document.
+# Use pipe (|) for multiline entries.
+subtext:
+
+# Optional: The change log or logs in which this entry should be included.
+# e.g. '[user]' or '[user, api]'
+# Include 'user' if the change is relevant to end users.
+# Include 'api' if there is a change to a library API.
+# Default: '[user]'
+change_logs: []
diff --git a/confmap/converter/expandconverter/expand_test.go b/confmap/converter/expandconverter/expand_test.go
deleted file mode 100644
index 4c7ff254e15..00000000000
--- a/confmap/converter/expandconverter/expand_test.go
+++ /dev/null
@@ -1,367 +0,0 @@
-// Copyright The OpenTelemetry Authors
-// SPDX-License-Identifier: Apache-2.0
-
-package expandconverter
-
-import (
-	"context"
-	"fmt"
-	"path/filepath"
-	"testing"
-
-	"github.com/stretchr/testify/assert"
-	"github.com/stretchr/testify/require"
-	"go.uber.org/zap"
-	"go.uber.org/zap/zapcore"
-	"go.uber.org/zap/zaptest/observer"
-
-	"go.opentelemetry.io/collector/confmap"
-	"go.opentelemetry.io/collector/confmap/confmaptest"
-	"go.opentelemetry.io/collector/confmap/internal/envvar"
-	"go.opentelemetry.io/collector/featuregate"
-	"go.opentelemetry.io/collector/internal/globalgates"
-)
-
-func TestNewExpandConverter(t *testing.T) {
-	var testCases = []struct {
-		name string // test case name (also file name containing config yaml)
-	}{
-		{name: "expand-with-no-env.yaml"},
-		{name: "expand-with-partial-env.yaml"},
-		{name: "expand-with-all-env.yaml"},
-	}
-
-	const valueExtra = "some string"
-	const valueExtraMapValue = "some map value"
-	const valueExtraListMapValue = "some list map value"
-	const valueExtraListElement = "some list value"
-	t.Setenv("EXTRA", valueExtra)
-	t.Setenv("EXTRA_MAP_VALUE_1", valueExtraMapValue+"_1")
-	t.Setenv("EXTRA_MAP_VALUE_2", valueExtraMapValue+"_2")
-	t.Setenv("EXTRA_LIST_MAP_VALUE_1", valueExtraListMapValue+"_1")
-	t.Setenv("EXTRA_LIST_MAP_VALUE_2", valueExtraListMapValue+"_2")
-	t.Setenv("EXTRA_LIST_VALUE_1", valueExtraListElement+"_1")
-	t.Setenv("EXTRA_LIST_VALUE_2", valueExtraListElement+"_2")
-
-	expectedCfgMap, errExpected := confmaptest.LoadConf(filepath.Join("testdata", "expand-with-no-env.yaml"))
-	require.NoError(t, errExpected, "Unable to get expected config")
-
-	for _, test := range testCases {
-		t.Run(test.name, func(t *testing.T) {
-			require.NoError(t, featuregate.GlobalRegistry().Set(globalgates.UseUnifiedEnvVarExpansionRules.ID(), false))
-			t.Cleanup(func() {
-				require.NoError(t, featuregate.GlobalRegistry().Set(globalgates.UseUnifiedEnvVarExpansionRules.ID(), true))
-			})
-
-			conf, err := confmaptest.LoadConf(filepath.Join("testdata", test.name))
-			require.NoError(t, err, "Unable to get config")
-
-			// Test that expanded configs are the same with the simple config with no env vars.
-			require.NoError(t, createConverter().Convert(context.Background(), conf))
-			assert.Equal(t, expectedCfgMap.ToStringMap(), conf.ToStringMap())
-		})
-	}
-}
-
-func TestNewExpandConverter_UseUnifiedEnvVarExpansionRules(t *testing.T) {
-	require.NoError(t, featuregate.GlobalRegistry().Set(globalgates.UseUnifiedEnvVarExpansionRules.ID(), true))
-	t.Cleanup(func() {
-		require.NoError(t, featuregate.GlobalRegistry().Set(globalgates.UseUnifiedEnvVarExpansionRules.ID(), false))
-	})
-
-	const valueExtra = "some string"
-	const valueExtraMapValue = "some map value"
-	const valueExtraListMapValue = "some list map value"
-	const valueExtraListElement = "some list value"
-	t.Setenv("EXTRA", valueExtra)
-	t.Setenv("EXTRA_MAP_VALUE_1", valueExtraMapValue+"_1")
-	t.Setenv("EXTRA_MAP_VALUE_2", valueExtraMapValue+"_2")
-	t.Setenv("EXTRA_LIST_MAP_VALUE_1", valueExtraListMapValue+"_1")
-	t.Setenv("EXTRA_LIST_MAP_VALUE_2", valueExtraListMapValue+"_2")
-	t.Setenv("EXTRA_LIST_VALUE_1", valueExtraListElement+"_1")
-	t.Setenv("EXTRA_LIST_VALUE_2", valueExtraListElement+"_2")
-
-	conf, err := confmaptest.LoadConf(filepath.Join("testdata", "expand-with-all-env.yaml"))
-	require.NoError(t, err, "Unable to get config")
-
-	// Test that expanded configs are the same with the simple config with no env vars.
-	require.ErrorContains(t, createConverter().Convert(context.Background(), conf), "variable substitution using $VAR has been deprecated in favor of ${VAR} and ${env:VAR}")
-}
-
-func TestNewExpandConverter_EscapedMaps(t *testing.T) {
-	const receiverExtraMapValue = "some map value"
-	t.Setenv("MAP_VALUE", receiverExtraMapValue)
-
-	conf := confmap.NewFromStringMap(
-		map[string]any{
-			"test_string_map": map[string]any{
-				"recv": "$MAP_VALUE",
-			},
-			"test_interface_map": map[any]any{
-				"recv": "$MAP_VALUE",
-			}},
-	)
-	require.NoError(t, createConverter().Convert(context.Background(), conf))
-
-	expectedMap := map[string]any{
-		"test_string_map": map[string]any{
-			"recv": receiverExtraMapValue,
-		},
-		"test_interface_map": map[string]any{
-			"recv": receiverExtraMapValue,
-		}}
-	assert.Equal(t, expectedMap, conf.ToStringMap())
-}
-
-func TestNewExpandConverter_EscapedEnvVars(t *testing.T) {
-	const receiverExtraMapValue = "some map value"
-	t.Setenv("MAP_VALUE_2", receiverExtraMapValue)
-
-	// Retrieve the config
-	conf, err := confmaptest.LoadConf(filepath.Join("testdata", "expand-escaped-env.yaml"))
-	require.NoError(t, err, "Unable to get config")
-
-	expectedMap := map[string]any{
-		"test_map": map[string]any{
-			// $$ -> escaped $
-			"recv.1": "$MAP_VALUE_1",
-			// $$$ -> escaped $ + substituted env var
-			"recv.2": "$" + receiverExtraMapValue,
-			// $$$$ -> two escaped $
-			"recv.3": "$$MAP_VALUE_3",
-			// escaped $ in the middle
-			"recv.4": "some${MAP_VALUE_4}text",
-			// $$$$ -> two escaped $
-			"recv.5": "${ONE}${TWO}",
-			// trailing escaped $
-			"recv.6": "text$",
-			// escaped $ alone
-			"recv.7": "$",
-		}}
-	require.NoError(t, createConverter().Convert(context.Background(), conf))
-	assert.Equal(t, expectedMap, conf.ToStringMap())
-}
-
-func TestNewExpandConverterHostPort(t *testing.T) {
-	t.Setenv("HOST", "127.0.0.1")
-	t.Setenv("PORT", "4317")
-
-	var testCases = []struct {
-		name     string
-		input    map[string]any
-		expected map[string]any
-	}{
-		{
-			name: "brackets",
-			input: map[string]any{
-				"test": "${HOST}:${PORT}",
-			},
-			expected: map[string]any{
-				"test": "127.0.0.1:4317",
-			},
-		},
-		{
-			name: "no brackets",
-			input: map[string]any{
-				"test": "$HOST:$PORT",
-			},
-			expected: map[string]any{
-				"test": "127.0.0.1:4317",
-			},
-		},
-		{
-			name: "mix",
-			input: map[string]any{
-				"test": "${HOST}:$PORT",
-			},
-			expected: map[string]any{
-				"test": "127.0.0.1:4317",
-			},
-		},
-		{
-			name: "reverse mix",
-			input: map[string]any{
-				"test": "$HOST:${PORT}",
-			},
-			expected: map[string]any{
-				"test": "127.0.0.1:4317",
-			},
-		},
-	}
-	for _, tt := range testCases {
-		t.Run(tt.name, func(t *testing.T) {
-			conf := confmap.NewFromStringMap(tt.input)
-			require.NoError(t, createConverter().Convert(context.Background(), conf))
-			assert.Equal(t, tt.expected, conf.ToStringMap())
-		})
-	}
-}
-
-func NewTestConverter() (confmap.Converter, *observer.ObservedLogs) {
-	core, logs := observer.New(zapcore.InfoLevel)
-	conv := converter{loggedDeprecations: make(map[string]struct{}), logger: zap.New(core)}
-	return conv, logs
-}
-
-func TestDeprecatedWarning(t *testing.T) {
-	msgTemplate := `Variable substitution using $VAR will be deprecated in favor of ${VAR} and ${env:VAR}, please update $%s`
-	t.Setenv("HOST", "127.0.0.1")
-	t.Setenv("PORT", "4317")
-
-	t.Setenv("HOST_NAME", "127.0.0.2")
-	t.Setenv("HOSTNAME", "127.0.0.3")
-
-	t.Setenv("BAD!HOST", "127.0.0.2")
-
-	var testCases = []struct {
-		name             string
-		input            map[string]any
-		expectedOutput   map[string]any
-		expectedWarnings []string
-		expectedError    error
-	}{
-		{
-			name: "no warning",
-			input: map[string]any{
-				"test": "${HOST}:${PORT}",
-			},
-			expectedOutput: map[string]any{
-				"test": "127.0.0.1:4317",
-			},
-			expectedWarnings: []string{},
-			expectedError:    nil,
-		},
-		{
-			name: "one deprecated var",
-			input: map[string]any{
-				"test": "${HOST}:$PORT",
-			},
-			expectedOutput: map[string]any{
-				"test": "127.0.0.1:4317",
-			},
-			expectedWarnings: []string{"PORT"},
-			expectedError:    nil,
-		},
-		{
-			name: "two deprecated vars",
-			input: map[string]any{
-				"test": "$HOST:$PORT",
-			},
-			expectedOutput: map[string]any{
-				"test": "127.0.0.1:4317",
-			},
-			expectedWarnings: []string{"HOST", "PORT"},
-			expectedError:    nil,
-		},
-		{
-			name: "one depracated serveral times",
-			input: map[string]any{
-				"test":  "$HOST,$HOST",
-				"test2": "$HOST",
-			},
-			expectedOutput: map[string]any{
-				"test":  "127.0.0.1,127.0.0.1",
-				"test2": "127.0.0.1",
-			},
-			expectedWarnings: []string{"HOST"},
-			expectedError:    nil,
-		},
-		{
-			name: "one warning",
-			input: map[string]any{
-				"test": "$HOST_NAME,${HOSTNAME}",
-			},
-			expectedOutput: map[string]any{
-				"test": "127.0.0.2,127.0.0.3",
-			},
-			expectedWarnings: []string{"HOST_NAME"},
-			expectedError:    nil,
-		},
-		{
-			name: "malformed environment variable",
-			input: map[string]any{
-				"test": "${BAD!HOST}",
-			},
-			expectedOutput: map[string]any{
-				"test": "blah",
-			},
-			expectedWarnings: []string{},
-			expectedError:    fmt.Errorf("environment variable \"BAD!HOST\" has invalid name: must match regex %s", envvar.ValidationRegexp),
-		},
-		{
-			name: "malformed environment variable number",
-			input: map[string]any{
-				"test": "${2BADHOST}",
-			},
-			expectedOutput: map[string]any{
-				"test": "blah",
-			},
-			expectedWarnings: []string{},
-			expectedError:    fmt.Errorf("environment variable \"2BADHOST\" has invalid name: must match regex %s", envvar.ValidationRegexp),
-		},
-		{
-			name: "malformed environment variable unicode",
-			input: map[string]any{
-				"test": "${😊BADHOST}",
-			},
-			expectedOutput: map[string]any{
-				"test": "blah",
-			},
-			expectedWarnings: []string{},
-			expectedError:    fmt.Errorf("environment variable \"😊BADHOST\" has invalid name: must match regex %s", envvar.ValidationRegexp),
-		},
-	}
-
-	for _, tt := range testCases {
-		t.Run(tt.name, func(t *testing.T) {
-			conf := confmap.NewFromStringMap(tt.input)
-			conv, logs := NewTestConverter()
-			err := conv.Convert(context.Background(), conf)
-			assert.Equal(t, tt.expectedError, err)
-			if tt.expectedError == nil {
-				assert.Equal(t, tt.expectedOutput, conf.ToStringMap())
-			}
-			assert.Equal(t, len(tt.expectedWarnings), len(logs.All()))
-			for i, variable := range tt.expectedWarnings {
-				errorMsg := fmt.Sprintf(msgTemplate, variable)
-				assert.Equal(t, errorMsg, logs.All()[i].Message)
-			}
-		})
-	}
-}
-
-func TestNewExpandConverterWithErrors(t *testing.T) {
-	var testCases = []struct {
-		name          string // test case name (also file name containing config yaml)
-		expectedError error
-	}{
-		{
-			name:          "expand-list-error.yaml",
-			expectedError: fmt.Errorf("environment variable \"EXTRA_LIST_^VALUE_2\" has invalid name: must match regex %s", envvar.ValidationRegexp),
-		},
-		{
-			name:          "expand-list-map-error.yaml",
-			expectedError: fmt.Errorf("environment variable \"EXTRA_LIST_MAP_V#ALUE_2\" has invalid name: must match regex %s", envvar.ValidationRegexp),
-		},
-		{
-			name:          "expand-map-error.yaml",
-			expectedError: fmt.Errorf("environment variable \"EX#TRA\" has invalid name: must match regex %s", envvar.ValidationRegexp),
-		},
-	}
-
-	for _, test := range testCases {
-		t.Run(test.name, func(t *testing.T) {
-			conf, err := confmaptest.LoadConf(filepath.Join("testdata", "errors", test.name))
-			require.NoError(t, err, "Unable to get config")
-
-			// Test that expanded configs are the same with the simple config with no env vars.
-			err = createConverter().Convert(context.Background(), conf)
-
-			assert.Equal(t, test.expectedError, err)
-		})
-	}
-}
-
-func createConverter() confmap.Converter {
-	return NewFactory().Create(confmap.ConverterSettings{Logger: zap.NewNop()})
-}
diff --git a/confmap/converter/expandconverter/go.mod b/confmap/converter/expandconverter/go.mod
index f6b64102757..a0b3216d4b4 100644
--- a/confmap/converter/expandconverter/go.mod
+++ b/confmap/converter/expandconverter/go.mod
@@ -3,16 +3,13 @@ module go.opentelemetry.io/collector/confmap/converter/expandconverter
 go 1.21.0
 
 require (
-	github.com/stretchr/testify v1.9.0
 	go.opentelemetry.io/collector/confmap v0.106.1
-	go.opentelemetry.io/collector/featuregate v1.12.0
 	go.opentelemetry.io/collector/internal/globalgates v0.106.1
 	go.uber.org/goleak v1.3.0
 	go.uber.org/zap v1.27.0
 )
 
 require (
-	github.com/davecgh/go-spew v1.1.1 // indirect
 	github.com/go-viper/mapstructure/v2 v2.0.0 // indirect
 	github.com/hashicorp/go-version v1.7.0 // indirect
 	github.com/knadh/koanf/maps v0.1.1 // indirect
@@ -20,7 +17,7 @@ require (
 	github.com/knadh/koanf/v2 v2.1.1 // indirect
 	github.com/mitchellh/copystructure v1.2.0 // indirect
 	github.com/mitchellh/reflectwalk v1.0.2 // indirect
-	github.com/pmezard/go-difflib v1.0.0 // indirect
+	go.opentelemetry.io/collector/featuregate v1.12.0 // indirect
 	go.uber.org/multierr v1.11.0 // indirect
 	gopkg.in/yaml.v3 v3.0.1 // indirect
 )
diff --git a/confmap/internal/e2e/expand_test.go b/confmap/internal/e2e/expand_test.go
index 018725d30d5..b6a41fafc26 100644
--- a/confmap/internal/e2e/expand_test.go
+++ b/confmap/internal/e2e/expand_test.go
@@ -5,7 +5,6 @@ package e2etest
 
 import (
 	"context"
-	"fmt"
 	"path/filepath"
 	"testing"
 
@@ -13,82 +12,90 @@ import (
 	"github.com/stretchr/testify/require"
 
 	"go.opentelemetry.io/collector/confmap"
-	"go.opentelemetry.io/collector/confmap/converter/expandconverter"
 	"go.opentelemetry.io/collector/confmap/provider/envprovider"
 	"go.opentelemetry.io/collector/confmap/provider/fileprovider"
-	"go.opentelemetry.io/collector/confmap/provider/yamlprovider"
 )
 
-// Test_EscapedEnvVars tests that the resolver supports escaped env vars working together with expand converter.
-func Test_EscapedEnvVars(t *testing.T) {
-	tests := []struct {
-		name   string
-		scheme string
-	}{
-		{
-			name:   "no_default_scheme",
-			scheme: "",
-		},
-		{
-			name:   "env",
-			scheme: "env",
-		},
-	}
-
+func Test_EscapedEnvVars_NoDefaultScheme(t *testing.T) {
 	const expandedValue = "some expanded value"
 	t.Setenv("ENV_VALUE", expandedValue)
+	t.Setenv("ENV_LIST", "['$$ESCAPE_ME','$${ESCAPE_ME}','$${env:ESCAPE_ME}']")
+	t.Setenv("ENV_MAP", "{'key1':'$$ESCAPE_ME','key2':'$${ESCAPE_ME}','key3':'$${env:ESCAPE_ME}'}")
 
-	expectedFailures := map[string]string{
-		"$ENV_VALUE":   "variable substitution using $VAR has been deprecated in favor of ${VAR} and ${env:VAR}",
-		"$$$ENV_VALUE": "variable substitution using $VAR has been deprecated in favor of ${VAR} and ${env:VAR}",
+	expectedMap := map[string]any{
+		"test_map": map[string]any{
+			"key1":  "$ENV_VALUE",
+			"key2":  "$$ENV_VALUE",
+			"key3":  "$${ENV_VALUE}",
+			"key4":  "some${ENV_VALUE}text",
+			"key5":  "some${ENV_VALUE}text",
+			"key6":  "${ONE}${TWO}",
+			"key7":  "text$",
+			"key8":  "$",
+			"key9":  "${1}${env:2}",
+			"key10": "some${env:ENV_VALUE}text",
+			"key11": "${env:${ENV_VALUE}}",
+			"key12": "${env:${ENV_VALUE}}",
+			"key13": "env:MAP_VALUE_2}${ENV_VALUE}{",
+			"key14": "$" + expandedValue,
+			"key15": "$ENV_VALUE",
+			"key16": []any{"$ESCAPE_ME", "${ESCAPE_ME}", "${env:ESCAPE_ME}"},
+			"key17": map[string]any{"key1": "$ESCAPE_ME", "key2": "${ESCAPE_ME}", "key3": "${env:ESCAPE_ME}"},
+		},
 	}
 
-	for _, tt := range tests {
-		t.Run(tt.name, func(t *testing.T) {
-			expectedMap := map[string]any{
-				"test_map": map[string]any{
-					"key1":  "$ENV_VALUE",
-					"key2":  "$$ENV_VALUE",
-					"key3":  "$" + expandedValue,
-					"key4":  "some" + expandedValue + "text",
-					"key5":  "some${ENV_VALUE}text",
-					"key6":  "${ONE}${TWO}",
-					"key7":  "text$",
-					"key8":  "$",
-					"key9":  "${1}${env:2}",
-					"key10": "some${env:ENV_VALUE}text",
-					"key11": "${env:" + expandedValue + "}",
-					"key12": "${env:${ENV_VALUE}}",
-					"key13": "env:MAP_VALUE_2}${ENV_VALUE}{",
-					"key14": "$" + expandedValue,
-				},
-			}
+	resolver, err := confmap.NewResolver(confmap.ResolverSettings{
+		URIs:              []string{filepath.Join("testdata", "expand-escaped-env.yaml")},
+		ProviderFactories: []confmap.ProviderFactory{fileprovider.NewFactory(), envprovider.NewFactory()},
+		DefaultScheme:     "",
+	})
+	require.NoError(t, err)
 
-			resolver, err := confmap.NewResolver(confmap.ResolverSettings{
-				URIs:               []string{filepath.Join("testdata", "expand-escaped-env.yaml")},
-				ProviderFactories:  []confmap.ProviderFactory{fileprovider.NewFactory(), envprovider.NewFactory()},
-				ConverterFactories: []confmap.ConverterFactory{expandconverter.NewFactory()},
-				DefaultScheme:      tt.scheme,
-			})
-			require.NoError(t, err)
+	// Test that expanded configs are the same with the simple config with no env vars.
+	cfgMap, err := resolver.Resolve(context.Background())
+	require.NoError(t, err)
+	m := cfgMap.ToStringMap()
+	assert.Equal(t, expectedMap, m)
+}
 
-			// Test that expanded configs are the same with the simple config with no env vars.
-			cfgMap, err := resolver.Resolve(context.Background())
-			require.NoError(t, err)
-			m := cfgMap.ToStringMap()
-			assert.Equal(t, expectedMap, m)
+func Test_EscapedEnvVars_DefaultScheme(t *testing.T) {
+	const expandedValue = "some expanded value"
+	t.Setenv("ENV_VALUE", expandedValue)
+	t.Setenv("ENV_LIST", "['$$ESCAPE_ME','$${ESCAPE_ME}','$${env:ESCAPE_ME}']")
+	t.Setenv("ENV_MAP", "{'key1':'$$ESCAPE_ME','key2':'$${ESCAPE_ME}','key3':'$${env:ESCAPE_ME}'}")
 
-			for val, expectedErr := range expectedFailures {
-				resolver, err = confmap.NewResolver(confmap.ResolverSettings{
-					URIs:               []string{fmt.Sprintf("yaml: test: %s", val)},
-					ProviderFactories:  []confmap.ProviderFactory{yamlprovider.NewFactory(), envprovider.NewFactory()},
-					ConverterFactories: []confmap.ConverterFactory{expandconverter.NewFactory()},
-					DefaultScheme:      tt.scheme,
-				})
-				require.NoError(t, err)
-				_, err := resolver.Resolve(context.Background())
-				require.ErrorContains(t, err, expectedErr)
-			}
-		})
+	expectedMap := map[string]any{
+		"test_map": map[string]any{
+			"key1":  "$ENV_VALUE",
+			"key2":  "$$ENV_VALUE",
+			"key3":  "$" + expandedValue,
+			"key4":  "some" + expandedValue + "text",
+			"key5":  "some${ENV_VALUE}text",
+			"key6":  "${ONE}${TWO}",
+			"key7":  "text$",
+			"key8":  "$",
+			"key9":  "${1}${env:2}",
+			"key10": "some${env:ENV_VALUE}text",
+			"key11": "${env:" + expandedValue + "}",
+			"key12": "${env:${ENV_VALUE}}",
+			"key13": "env:MAP_VALUE_2}${ENV_VALUE}{",
+			"key14": "$" + expandedValue,
+			"key15": "$ENV_VALUE",
+			"key16": []any{"$ESCAPE_ME", "${ESCAPE_ME}", "${env:ESCAPE_ME}"},
+			"key17": map[string]any{"key1": "$ESCAPE_ME", "key2": "${ESCAPE_ME}", "key3": "${env:ESCAPE_ME}"},
+		},
 	}
+
+	resolver, err := confmap.NewResolver(confmap.ResolverSettings{
+		URIs:              []string{filepath.Join("testdata", "expand-escaped-env.yaml")},
+		ProviderFactories: []confmap.ProviderFactory{fileprovider.NewFactory(), envprovider.NewFactory()},
+		DefaultScheme:     "env",
+	})
+	require.NoError(t, err)
+
+	// Test that expanded configs are the same with the simple config with no env vars.
+	cfgMap, err := resolver.Resolve(context.Background())
+	require.NoError(t, err)
+	m := cfgMap.ToStringMap()
+	assert.Equal(t, expectedMap, m)
 }
diff --git a/confmap/internal/e2e/go.mod b/confmap/internal/e2e/go.mod
index 6b7913c671b..1792377658f 100644
--- a/confmap/internal/e2e/go.mod
+++ b/confmap/internal/e2e/go.mod
@@ -5,10 +5,8 @@ go 1.21.0
 require (
 	github.com/stretchr/testify v1.9.0
 	go.opentelemetry.io/collector/confmap v0.106.1
-	go.opentelemetry.io/collector/confmap/converter/expandconverter v0.106.1
 	go.opentelemetry.io/collector/confmap/provider/envprovider v0.106.1
 	go.opentelemetry.io/collector/confmap/provider/fileprovider v0.106.1
-	go.opentelemetry.io/collector/confmap/provider/yamlprovider v0.106.1
 	go.opentelemetry.io/collector/featuregate v1.12.0
 	go.opentelemetry.io/collector/internal/globalgates v0.106.1
 )
@@ -34,10 +32,6 @@ replace go.opentelemetry.io/collector/confmap/provider/fileprovider => ../../pro
 
 replace go.opentelemetry.io/collector/confmap/provider/envprovider => ../../provider/envprovider
 
-replace go.opentelemetry.io/collector/confmap/provider/yamlprovider => ../../provider/yamlprovider
-
 replace go.opentelemetry.io/collector/featuregate => ../../../featuregate
 
 replace go.opentelemetry.io/collector/internal/globalgates => ../../../internal/globalgates
-
-replace go.opentelemetry.io/collector/confmap/converter/expandconverter => ../../converter/expandconverter
diff --git a/confmap/internal/e2e/testdata/expand-escaped-env.yaml b/confmap/internal/e2e/testdata/expand-escaped-env.yaml
index ae8cb280ede..74a1d9fa2af 100644
--- a/confmap/internal/e2e/testdata/expand-escaped-env.yaml
+++ b/confmap/internal/e2e/testdata/expand-escaped-env.yaml
@@ -27,3 +27,9 @@ test_map:
   key13: "env:MAP_VALUE_2}$${ENV_VALUE}{"
   # $$$ -> escaped $ + expanded env var
   key14: "$$${env:ENV_VALUE}"
+  # $ -> $
+  key15: "$ENV_VALUE"
+  # list is escaped
+  key16: "${env:ENV_LIST}"
+  # map is escaped
+  key17: "${env:ENV_MAP}"
diff --git a/confmap/internal/e2e/types_test.go b/confmap/internal/e2e/types_test.go
index 88dbe5a7162..2d72b624313 100644
--- a/confmap/internal/e2e/types_test.go
+++ b/confmap/internal/e2e/types_test.go
@@ -47,6 +47,7 @@ func NewResolver(t testing.TB, path string) *confmap.Resolver {
 			fileprovider.NewFactory(),
 			envprovider.NewFactory(),
 		},
+		DefaultScheme: "env",
 	})
 	require.NoError(t, err)
 	return resolver
@@ -244,6 +245,8 @@ func TestTypeCasting(t *testing.T) {
 }
 
 func TestStrictTypeCasting(t *testing.T) {
+	t.Setenv("ENV_VALUE", "testreceiver")
+
 	values := []Test{
 		{
 			value:       "123",
@@ -393,6 +396,66 @@ func TestStrictTypeCasting(t *testing.T) {
 			targetField: TargetFieldInlineString,
 			expected:    "inline field with [filelog,windowseventlog/application] expansion",
 		},
+		{
+			value:       "$$ENV",
+			targetField: TargetFieldString,
+			expected:    "$ENV",
+		},
+		{
+			value:       "$$ENV",
+			targetField: TargetFieldInlineString,
+			expected:    "inline field with $ENV expansion",
+		},
+		{
+			value:       "$${ENV}",
+			targetField: TargetFieldString,
+			expected:    "${ENV}",
+		},
+		{
+			value:       "$${ENV}",
+			targetField: TargetFieldInlineString,
+			expected:    "inline field with ${ENV} expansion",
+		},
+		{
+			value:       "$${env:ENV}",
+			targetField: TargetFieldString,
+			expected:    "${env:ENV}",
+		},
+		{
+			value:       "$${env:ENV}",
+			targetField: TargetFieldInlineString,
+			expected:    "inline field with ${env:ENV} expansion",
+		},
+		{
+			value:       `[filelog,${env:ENV_VALUE}]`,
+			targetField: TargetFieldString,
+			expected:    "[filelog,testreceiver]",
+		},
+		{
+			value:       `[filelog,${ENV_VALUE}]`,
+			targetField: TargetFieldString,
+			expected:    "[filelog,testreceiver]",
+		},
+		{
+			value:       `["filelog","$${env:ENV_VALUE}"]`,
+			targetField: TargetFieldString,
+			expected:    `["filelog","${env:ENV_VALUE}"]`,
+		},
+		{
+			value:       `["filelog","$${ENV_VALUE}"]`,
+			targetField: TargetFieldString,
+			expected:    `["filelog","${ENV_VALUE}"]`,
+		},
+		{
+			value:       `["filelog","$$ENV_VALUE"]`,
+			targetField: TargetFieldString,
+			expected:    `["filelog","$ENV_VALUE"]`,
+		},
+		{
+			value:       `["filelog","$ENV_VALUE"]`,
+			targetField: TargetFieldString,
+			expected:    `["filelog","$ENV_VALUE"]`,
+		},
 	}
 
 	previousValue := globalgates.StrictlyTypedInputGate.IsEnabled()
@@ -595,7 +658,58 @@ func TestStructMappingIssue10787(t *testing.T) {
 	}()
 
 	resolver := NewResolver(t, "types_expand.yaml")
-	t.Setenv("ENV", `# ${hello.world}
+	t.Setenv("ENV", `# this is a comment
+logging:
+  verbosity: detailed`)
+	conf, err := resolver.Resolve(context.Background())
+	require.NoError(t, err)
+
+	type Logging struct {
+		Verbosity string `mapstructure:"verbosity"`
+	}
+	type Exporters struct {
+		Logging Logging `mapstructure:"logging"`
+	}
+	type Target struct {
+		Field Exporters `mapstructure:"field"`
+	}
+
+	var cfg Target
+	err = conf.Unmarshal(&cfg)
+	require.NoError(t, err)
+	require.Equal(t,
+		Target{Field: Exporters{
+			Logging: Logging{
+				Verbosity: "detailed",
+			},
+		}},
+		cfg,
+	)
+
+	confStr, err := resolver.Resolve(context.Background())
+	require.NoError(t, err)
+	var cfgStr TargetConfig[string]
+	err = confStr.Unmarshal(&cfgStr)
+	require.NoError(t, err)
+	require.Equal(t, `# this is a comment
+logging:
+  verbosity: detailed`,
+		cfgStr.Field,
+	)
+}
+
+func TestStructMappingIssue10787_ExpandComment(t *testing.T) {
+	previousValue := globalgates.StrictlyTypedInputGate.IsEnabled()
+	err := featuregate.GlobalRegistry().Set(globalgates.StrictlyTypedInputID, true)
+	require.NoError(t, err)
+	defer func() {
+		seterr := featuregate.GlobalRegistry().Set(globalgates.StrictlyTypedInputID, previousValue)
+		require.NoError(t, seterr)
+	}()
+
+	resolver := NewResolver(t, "types_expand.yaml")
+	t.Setenv("EXPAND_ME", "an expanded env var")
+	t.Setenv("ENV", `# this is a comment with ${EXPAND_ME}
 logging:
   verbosity: detailed`)
 	conf, err := resolver.Resolve(context.Background())
@@ -628,7 +742,7 @@ logging:
 	var cfgStr TargetConfig[string]
 	err = confStr.Unmarshal(&cfgStr)
 	require.NoError(t, err)
-	require.Equal(t, `# ${hello.world}
+	require.Equal(t, `# this is a comment with an expanded env var
 logging:
   verbosity: detailed`,
 		cfgStr.Field,
diff --git a/confmap/resolver.go b/confmap/resolver.go
index f3a7c7092e3..e635ea99564 100644
--- a/confmap/resolver.go
+++ b/confmap/resolver.go
@@ -181,7 +181,7 @@ func (mr *Resolver) Resolve(ctx context.Context) (*Conf, error) {
 		if err != nil {
 			return nil, err
 		}
-		cfgMap[k] = val
+		cfgMap[k] = escapeDollarSigns(val)
 	}
 	retMap = NewFromStringMap(cfgMap)
 
@@ -195,6 +195,31 @@ func (mr *Resolver) Resolve(ctx context.Context) (*Conf, error) {
 	return retMap, nil
 }
 
+func escapeDollarSigns(val any) any {
+	switch v := val.(type) {
+	case string:
+		return strings.ReplaceAll(v, "$$", "$")
+	case expandedValue:
+		v.Original = strings.ReplaceAll(v.Original, "$$", "$")
+		v.Value = escapeDollarSigns(v.Value)
+		return v
+	case []any:
+		nslice := make([]any, len(v))
+		for i, x := range v {
+			nslice[i] = escapeDollarSigns(x)
+		}
+		return nslice
+	case map[string]any:
+		nmap := make(map[string]any, len(v))
+		for k, x := range v {
+			nmap[k] = escapeDollarSigns(x)
+		}
+		return nmap
+	default:
+		return val
+	}
+}
+
 // Watch blocks until any configuration change was detected or an unrecoverable error
 // happened during monitoring the configuration changes.
 //
diff --git a/internal/globalgates/globalgates.go b/internal/globalgates/globalgates.go
index 6cf27950b15..346bd2d64fd 100644
--- a/internal/globalgates/globalgates.go
+++ b/internal/globalgates/globalgates.go
@@ -6,8 +6,9 @@ package globalgates // import "go.opentelemetry.io/collector/internal/globalgate
 import "go.opentelemetry.io/collector/featuregate"
 
 var UseUnifiedEnvVarExpansionRules = featuregate.GlobalRegistry().MustRegister("confmap.unifyEnvVarExpansion",
-	featuregate.StageBeta,
+	featuregate.StageStable,
 	featuregate.WithRegisterFromVersion("v0.103.0"),
+	featuregate.WithRegisterToVersion("v0.109.0"),
 	featuregate.WithRegisterDescription("`${FOO}` will now be expanded as if it was `${env:FOO}` and no longer expands $ENV syntax. See https://github.com/open-telemetry/opentelemetry-collector/blob/main/docs/rfcs/env-vars.md for more details. When this feature gate is stable, expandconverter will be removed."))
 
 const StrictlyTypedInputID = "confmap.strictlyTypedInput"
diff --git a/otelcol/command_test.go b/otelcol/command_test.go
index 42b2212b06e..1a5680fe4ab 100644
--- a/otelcol/command_test.go
+++ b/otelcol/command_test.go
@@ -15,7 +15,6 @@ import (
 	"go.opentelemetry.io/collector/component"
 	"go.opentelemetry.io/collector/confmap"
 	"go.opentelemetry.io/collector/featuregate"
-	"go.opentelemetry.io/collector/internal/globalgates"
 )
 
 func TestNewCommandVersion(t *testing.T) {
@@ -139,10 +138,6 @@ func Test_UseUnifiedEnvVarExpansionRules(t *testing.T) {
 	}
 	for _, tt := range tests {
 		t.Run(tt.name, func(t *testing.T) {
-			require.NoError(t, featuregate.GlobalRegistry().Set(globalgates.UseUnifiedEnvVarExpansionRules.ID(), true))
-			t.Cleanup(func() {
-				require.NoError(t, featuregate.GlobalRegistry().Set(globalgates.UseUnifiedEnvVarExpansionRules.ID(), false))
-			})
 			fileProvider := newFakeProvider("file", func(_ context.Context, _ string, _ confmap.WatcherFunc) (*confmap.Retrieved, error) {
 				return &confmap.Retrieved{}, nil
 			})
diff --git a/otelcol/command_validate_test.go b/otelcol/command_validate_test.go
index 03f93f51d16..9c0240910bc 100644
--- a/otelcol/command_validate_test.go
+++ b/otelcol/command_validate_test.go
@@ -30,6 +30,7 @@ func TestValidateSubCommandInvalidComponents(t *testing.T) {
 		ResolverSettings: confmap.ResolverSettings{
 			URIs:              []string{filePath},
 			ProviderFactories: []confmap.ProviderFactory{fileProvider},
+			DefaultScheme:     "file",
 		},
 	}}, flags(featuregate.GlobalRegistry()))
 	err := cmd.Execute()