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The explosion of biobank data offers unprecedented opportunities for gene-environment interaction (GxE) studies of complex diseases because of the large sample sizes and the rich collection in genetic and non-genetic information. However, the extremely large sample size also introduces new computational challenges in G×E assessment, especially for set-based G×E variance component (VC) tests, which are a widely used strategy to boost overall G×E signals and to evaluate the joint G×E effect of multiple variants from a biologically meaningful unit (e.g., gene). In this work, we focus on continuous traits and present SEAGLE, a S calable E xact A l G orithm for L arge-scale set-based G× E tests, to permit G×E VC tests for biobank-scale data. SEAGLE employs modern matrix computations to calculate the test statistic and p -value of the GxE VC test in a computationally efficient fashion, without imposing additional assumptions or relying on approximations. SEAGLE can easily accommodate sample sizes in the order of 10 5 , is implementable on standard laptops, and does not require specialized computing equipment. We demonstrate the performance of SEAGLE using extensive simulations. We illustrate its utility by conducting genome-wide gene-based G×E analysis on the Taiwan Biobank data to explore the interaction of gene and physical activity status on body mass index.