The purpose of this article is to describe manifestations and consequences of the impact of the environmental policy of the European Union on selected tools of the Common Agricultural Policy (CAP). The author used descriptive analysis of the EU strategic documents related to both policies. The descriptive analysis also refers to the accompanying legislation and to factual material based on statistical data on the implementation of the CAP instruments shaped under the influence of environmental policy. Other data shows the changes in the impact of agriculture on environment. The main mechanism of the impact of environmental policy on the CAP is based on the principle of integration of environmental policies with sectoral policies. It was reinforced in subsequent EU environment action programmes. Thanks to the implementation of that principle, the environmental implications were reflected in the changes of CAP. Special attention has been paid to the latest solutions: seventh EU environmental action programme and climate and energy package. They have affected both the development of an environmental policy and its relations with the CAP. As a result, the EU modified the instruments of I and II pillar (direct payments, agri-environmental programmes, support for organic farming) in such a way as to have a more beneficial impact on the environment. This also applies to the standards directly applicable to farmers (cross-compliance). The regulations of water protection, climate change, biodiversity and soils in conjunction with the economic instruments of the CAP contributed to the limitation of agricultural negative impact on environment.