diff --git a/railties/lib/commands/dbconsole.rb b/railties/lib/commands/dbconsole.rb
index 28c3a3e..3e5010c 100644
--- a/railties/lib/commands/dbconsole.rb
+++ b/railties/lib/commands/dbconsole.rb
@@ -1,3 +1,4 @@
+require 'erb'
 require 'yaml'
 require 'optparse'
 
@@ -8,7 +9,7 @@ OptionParser.new do |opt|
 end
 
 env = ARGV.first || ENV['RAILS_ENV'] || 'development'
-unless config = YAML.load_file(RAILS_ROOT + "/config/database.yml")[env]
+unless config = YAML::load(ERB.new(IO.read(RAILS_ROOT + "/config/database.yml")).result)[env]
   abort "No database is configured for the environment '#{env}'"
 end