diff --git a/extract/variable.go b/extract/variable.go
new file mode 100644
index 0000000..2385a54
--- /dev/null
+++ b/extract/variable.go
@@ -0,0 +1,104 @@
+package extract
+
+import (
+	"fmt"
+
+	"github.com/aquasecurity/trivy/pkg/iac/terraform"
+	"github.com/hashicorp/hcl/v2"
+	"github.com/hashicorp/hcl/v2/ext/typeexpr"
+	"github.com/zclconf/go-cty/cty"
+	"github.com/zclconf/go-cty/cty/convert"
+
+	"github.com/coder/preview/types"
+)
+
+// VariableFromBlock extracts a terraform variable, but not its final resolved value.
+// code taken mostly from https://github.com/aquasecurity/trivy/blob/main/pkg/iac/scanners/terraform/parser/evaluator.go#L479
+func VariableFromBlock(block *terraform.Block) (tfVar types.Variable) {
+	defer func() {
+		// Extra safety mechanism to ensure that if a panic occurs, we do not break
+		// everything else.
+		if r := recover(); r != nil {
+			tfVar = types.Variable{
+				Name: block.Label(),
+				Diagnostics: types.Diagnostics{
+					{
+						Severity: hcl.DiagError,
+						Summary:  "Panic occurred in extracting variable. This should not happen, please report this to Coder.",
+						Detail:   fmt.Sprintf("panic in variable extract: %+v", r),
+					},
+				},
+			}
+		}
+	}()
+
+	attributes := block.Attributes()
+
+	var valType cty.Type
+	var defaults *typeexpr.Defaults
+
+	if typeAttr, exists := attributes["type"]; exists {
+		ty, def, err := typeAttr.DecodeVarType()
+		if err != nil {
+			var subject hcl.Range
+			if typeAttr.HCLAttribute() != nil {
+				subject = typeAttr.HCLAttribute().Range
+			}
+			return types.Variable{
+				Name: block.Label(),
+				Diagnostics: types.Diagnostics{&hcl.Diagnostic{
+					Severity: hcl.DiagError,
+					Summary:  "Failed to decode variable type for " + block.Label(),
+					Detail:   err.Error(),
+					Subject:  &subject,
+				}},
+			}
+		}
+		valType = ty
+		defaults = def
+	}
+
+	var val cty.Value
+	var defSubject hcl.Range
+	if def, exists := attributes["default"]; exists {
+		val = def.NullableValue()
+		defSubject = def.HCLAttribute().Range
+	}
+
+	if valType != cty.NilType {
+		// TODO: If this code ever extracts the actual value of the variable,
+		// then we need to source the value from that, rather than the default.
+		if defaults != nil {
+			val = defaults.Apply(val)
+		}
+
+		canConvert := !val.IsNull() && val.IsWhollyKnown() && valType != cty.NilType
+
+		if canConvert {
+			typedVal, err := convert.Convert(val, valType)
+			if err != nil {
+				return types.Variable{
+					Name: block.Label(),
+					Diagnostics: types.Diagnostics{&hcl.Diagnostic{
+						Severity: hcl.DiagError,
+						Summary: fmt.Sprintf("Failed to convert variable default value to type %q for %q",
+							valType.FriendlyNameForConstraint(), block.Label()),
+						Detail:  err.Error(),
+						Subject: &defSubject,
+					}},
+				}
+			}
+			val = typedVal
+		}
+	} else {
+		valType = val.Type()
+	}
+	return types.Variable{
+		Name:        block.Label(),
+		Default:     val,
+		Type:        valType,
+		Description: optionalString(block, "description"),
+		Nullable:    optionalBoolean(block, "nullable"),
+		Sensitive:   optionalBoolean(block, "sensitive"),
+	}
+}
diff --git a/preview.go b/preview.go
index 06db808..ea4154a 100644
--- a/preview.go
+++ b/preview.go
@@ -42,6 +42,7 @@ type Output struct {
 	Parameters    []types.Parameter `json:"parameters"`
 	WorkspaceTags types.TagBlocks   `json:"workspace_tags"`
 	Presets       []types.Preset    `json:"presets"`
+	Variables     []types.Variable  `json:"variables"`
 	// Files is included for printing diagnostics.
 	// They can be marshalled, but not unmarshalled. This is a limitation
 	// of the HCL library.
@@ -181,6 +182,7 @@ func Preview(ctx context.Context, input Input, dir fs.FS) (output *Output, diagn
 	rp, rpDiags := parameters(modules)
 	presets := presets(modules, rp)
 	tags, tagDiags := workspaceTags(modules, p.Files())
+	vars := variables(modules)
 
 	// Add warnings
 	diags = diags.Extend(warnings(modules))
@@ -191,6 +193,7 @@ func Preview(ctx context.Context, input Input, dir fs.FS) (output *Output, diagn
 		WorkspaceTags: tags,
 		Presets:       presets,
 		Files:         p.Files(),
+		Variables:     vars,
 	}, diags.Extend(rpDiags).Extend(tagDiags)
 }
 
diff --git a/preview_test.go b/preview_test.go
index 435fb93..c75cf6a 100644
--- a/preview_test.go
+++ b/preview_test.go
@@ -16,6 +16,7 @@ import (
 	"github.com/zclconf/go-cty/cty"
 
 	"github.com/coder/preview"
+	"github.com/coder/preview/hclext"
 	"github.com/coder/preview/types"
 	"github.com/coder/terraform-provider-coder/v2/provider"
 )
@@ -43,6 +44,7 @@ func Test_Extract(t *testing.T) {
 		expTags     map[string]string
 		unknownTags []string
 		params      map[string]assertParam
+		variables   map[string]assertVariable
 		presets     func(t *testing.T, presets []types.Preset)
 		warnings    []*regexp.Regexp
 	}{
@@ -77,6 +79,18 @@ func Test_Extract(t *testing.T) {
 					formType(provider.ParameterFormTypeRadio),
 				"numerical": ap().value("5"),
 			},
+			variables: map[string]assertVariable{
+				"string": av().def(cty.StringVal("Hello, world!")).typeEq(cty.String).
+					description("test").nullable(true).sensitive(true),
+				"number":        av().def(cty.NumberIntVal(7)).typeEq(cty.Number),
+				"boolean":       av().def(cty.BoolVal(true)).typeEq(cty.Bool),
+				"coerce_string": av().def(cty.StringVal("5")).typeEq(cty.String),
+				"complex": av().typeEq(cty.Object(map[string]cty.Type{
+					"list": cty.List(cty.String),
+					"name": cty.String,
+					"age":  cty.Number,
+				})),
+			},
 		},
 		{
 			name:        "conditional-no-inputs",
@@ -149,6 +163,11 @@ func Test_Extract(t *testing.T) {
 				"indexed_0": ap(),
 				"indexed_1": ap(),
 			},
+			variables: map[string]assertVariable{
+				"regions": av().def(cty.SetVal([]cty.Value{
+					cty.StringVal("us"), cty.StringVal("eu"), cty.StringVal("au"),
+				})).typeEq(cty.Set(cty.String)),
+			},
 		},
 		{
 			name: "external docker resource without plan data",
@@ -222,6 +241,9 @@ func Test_Extract(t *testing.T) {
 					def("m7gd.8xlarge").
 					value("m7gd.8xlarge"),
 			},
+			variables: map[string]assertVariable{
+				"regions": av().typeEq(cty.List(cty.String)),
+			},
 		},
 		{
 			name:    "empty file",
@@ -434,6 +456,9 @@ func Test_Extract(t *testing.T) {
 				"team":           ap().optVals("frontend", "backend", "fullstack"),
 				"jetbrains_ide":  ap(),
 			},
+			variables: map[string]assertVariable{
+				"security": av().def(cty.StringVal("high")).typeEq(cty.String),
+			},
 		},
 		{
 			name:    "count",
@@ -528,6 +553,17 @@ func Test_Extract(t *testing.T) {
 					optVals("GO", "IU", "PY").
 					optNames("GoLand 2024.3", "IntelliJ IDEA Ultimate 2024.3", "PyCharm Professional 2024.3"),
 			},
+			variables: map[string]assertVariable{
+				"jetbrains_ides":     av().typeEq(cty.List(cty.String)).description("The list of IDE product codes."),
+				"releases_base_link": av(),
+				"channel":            av(),
+				"download_base_link": av(),
+				"arch":               av(),
+				"jetbrains_ide_versions": av().typeEq(cty.Map(cty.Object(map[string]cty.Type{
+					"build_number": cty.String,
+					"version":      cty.String,
+				}))),
+			},
 		},
 		{
 			name:    "tfvars_from_file",
@@ -541,6 +577,12 @@ func Test_Extract(t *testing.T) {
 				"variable_values": ap().
 					def("alex").optVals("alex", "bob", "claire", "jason"),
 			},
+			variables: map[string]assertVariable{
+				"one":   av(),
+				"two":   av(),
+				"three": av(),
+				"four":  av(),
+			},
 		},
 		{
 			name:    "tfvars_from_input",
@@ -559,6 +601,12 @@ func Test_Extract(t *testing.T) {
 				"variable_values": ap().
 					def("andrew").optVals("andrew", "bill", "carter", "jason"),
 			},
+			variables: map[string]assertVariable{
+				"one":   av(),
+				"two":   av(),
+				"three": av(),
+				"four":  av(),
+			},
 		},
 		{
 			name:        "unknownoption",
@@ -570,6 +618,9 @@ func Test_Extract(t *testing.T) {
 				"unknown": apWithDiags().
 					errorDiagnostics("The set of options cannot be resolved"),
 			},
+			variables: map[string]assertVariable{
+				"unknown": av().def(cty.NilVal),
+			},
 		},
 	} {
 		t.Run(tc.name, func(t *testing.T) {
@@ -637,10 +688,80 @@ func Test_Extract(t *testing.T) {
 			if tc.presets != nil {
 				tc.presets(t, output.Presets)
 			}
+
+			// Assert variables
+			require.Len(t, output.Variables, len(tc.variables), "wrong number of variables expected")
+			for _, variable := range output.Variables {
+				check, ok := tc.variables[variable.Name]
+				require.True(t, ok, "unknown variable %s", variable.Name)
+				check(t, variable)
+			}
 		})
 	}
 }
 
+type assertVariable func(t *testing.T, variable types.Variable)
+
+func av() assertVariable {
+	return func(t *testing.T, v types.Variable) {
+		t.Helper()
+		assert.Empty(t, v.Diagnostics, "variable should have no diagnostics")
+	}
+}
+
+func avWithDiags() assertVariable {
+	return func(t *testing.T, parameter types.Variable) {}
+}
+
+func (a assertVariable) errorDiagnostics(patterns ...string) assertVariable {
+	return a.diagnostics(hcl.DiagError, patterns...)
+}
+
+func (a assertVariable) warnDiagnostics(patterns ...string) assertVariable {
+	return a.diagnostics(hcl.DiagWarning, patterns...)
+}
+
+func (a assertVariable) diagnostics(sev hcl.DiagnosticSeverity, patterns ...string) assertVariable {
+	shadow := patterns
+	return a.extend(func(t *testing.T, v types.Variable) {
+		assertDiags(t, sev, v.Diagnostics, shadow...)
+	})
+}
+
+func (a assertVariable) nullable(n bool) assertVariable {
+	return a.extend(func(t *testing.T, v types.Variable) {
+		assert.Equal(t, v.Nullable, n, "variable nullable check")
+	})
+}
+
+func (a assertVariable) typeEq(ty cty.Type) assertVariable {
+	return a.extend(func(t *testing.T, v types.Variable) {
+		assert.Truef(t, ty.Equals(v.Type), "%q variable type equality check", v.Name)
+	})
+}
+
+func (a assertVariable) def(def cty.Value) assertVariable {
+	return a.extend(func(t *testing.T, v types.Variable) {
+		if !assert.Truef(t, def.Equals(v.Default).True(), "%q variable default equality check", v.Name) {
+			exp, _ := hclext.AsString(def)
+			got, _ := hclext.AsString(v.Default)
+			t.Logf("Expected: %s, Value: %s", exp, got)
+		}
+	})
+}
+
+func (a assertVariable) sensitive(s bool) assertVariable {
+	return a.extend(func(t *testing.T, v types.Variable) {
+		assert.Equal(t, v.Sensitive, s, "variable sensitive check")
+	})
+}
+
+func (a assertVariable) description(d string) assertVariable {
+	return a.extend(func(t *testing.T, v types.Variable) {
+		assert.Equal(t, v.Description, d, "variable description check")
+	})
+}
+
 type assertParam func(t *testing.T, parameter types.Parameter)
 
 func ap() assertParam {
@@ -665,23 +786,7 @@ func (a assertParam) warnDiagnostics(patterns ...string) assertParam {
 func (a assertParam) diagnostics(sev hcl.DiagnosticSeverity, patterns ...string) assertParam {
 	shadow := patterns
 	return a.extend(func(t *testing.T, parameter types.Parameter) {
-		checks := make([]string, len(shadow))
-		copy(checks, shadow)
-
-	DiagLoop:
-		for _, diag := range parameter.Diagnostics {
-			if diag.Severity != sev {
-				continue
-			}
-			for i, pat := range checks {
-				if strings.Contains(diag.Summary, pat) || strings.Contains(diag.Detail, pat) {
-					checks = append(checks[:i], checks[i+1:]...)
-					break DiagLoop
-				}
-			}
-		}
-
-		assert.Equal(t, []string{}, checks, "missing expected diagnostic errors")
+		assertDiags(t, sev, parameter.Diagnostics, shadow...)
 	})
 }
 
@@ -771,3 +876,37 @@ func (a assertParam) extend(f assertParam) assertParam {
 		f(t, parameter)
 	}
 }
+
+//nolint:revive
+func (a assertVariable) extend(f assertVariable) assertVariable {
+	if a == nil {
+		a = func(t *testing.T, v types.Variable) {}
+	}
+
+	return func(t *testing.T, v types.Variable) {
+		t.Helper()
+		(a)(t, v)
+		f(t, v)
+	}
+}
+
+func assertDiags(t *testing.T, sev hcl.DiagnosticSeverity, diags types.Diagnostics, patterns ...string) {
+	t.Helper()
+	checks := make([]string, len(patterns))
+	copy(checks, patterns)
+
+DiagLoop:
+	for _, diag := range diags {
+		if diag.Severity != sev {
+			continue
+		}
+		for i, pat := range checks {
+			if strings.Contains(diag.Summary, pat) || strings.Contains(diag.Detail, pat) {
+				checks = append(checks[:i], checks[i+1:]...)
+				break DiagLoop
+			}
+		}
+	}
+
+	assert.Equal(t, []string{}, checks, "missing expected diagnostic errors")
+}
diff --git a/testdata/static/main.tf b/testdata/static/main.tf
index 0260e72..2f0a642 100644
--- a/testdata/static/main.tf
+++ b/testdata/static/main.tf
@@ -12,6 +12,40 @@ terraform {
   }
 }
 
+variable "string" {
+  default = "Hello, world!"
+  nullable = true
+  sensitive =  true
+  description = "test"
+}
+
+variable "number" {
+  default = 7
+}
+
+variable "boolean" {
+  default = true
+}
+
+variable "coerce_string" {
+  default = 5 // This will be coerced to a string
+  type = string
+}
+
+variable "complex" {
+  type = object({
+    list   = list(string)
+    name = string
+    age  = number
+  })
+  default = {
+    list = []
+    name = "John Doe"
+    age  = 30
+  }
+}
+
+
 data "coder_workspace_tags" "custom_workspace_tags" {
   tags = {
     "zone"        = "developers"
diff --git a/testdata/unknownoption/main.tf b/testdata/unknownoption/main.tf
index c1943e6..1ac5c91 100644
--- a/testdata/unknownoption/main.tf
+++ b/testdata/unknownoption/main.tf
@@ -13,6 +13,10 @@ terraform {
   }
 }
 
+variable "unknown" {
+  default = null
+}
+
 data "coder_parameter" "unknown" {
   name = "unknown"
   display_name = "Unknown Option Example"
diff --git a/types/terraform.go b/types/terraform.go
new file mode 100644
index 0000000..d8fb0a6
--- /dev/null
+++ b/types/terraform.go
@@ -0,0 +1,19 @@
+package types
+
+import (
+	"github.com/zclconf/go-cty/cty"
+)
+
+type Variable struct {
+	Name string `json:"name"`
+	// Unsure how cty values json marshal
+	Default     cty.Value `json:"default"`
+	Type        cty.Type  `json:"type"`
+	Description string    `json:"description"`
+	Nullable    bool      `json:"nullable"`
+	Sensitive   bool      `json:"sensitive"`
+
+	// Variables also have 'Validation', which is currently not implemented.
+
+	Diagnostics Diagnostics `json:"diagnostics"`
+}
diff --git a/variables.go b/variables.go
new file mode 100644
index 0000000..9ce7b26
--- /dev/null
+++ b/variables.go
@@ -0,0 +1,32 @@
+package preview
+
+import (
+	"slices"
+	"strings"
+
+	"github.com/aquasecurity/trivy/pkg/iac/terraform"
+
+	"github.com/coder/preview/extract"
+	"github.com/coder/preview/types"
+)
+
+func variables(modules terraform.Modules) []types.Variable {
+	vars := make([]types.Variable, 0)
+
+	for _, mod := range modules {
+		// Only extract variables from root modules. Child modules have their
+		// vars set in the parent module.
+		if mod.Parent() == nil {
+			variableBlocks := mod.GetBlocks().OfType("variable")
+			for _, block := range variableBlocks {
+				vars = append(vars, extract.VariableFromBlock(block))
+			}
+		}
+	}
+
+	// Sort the variables by name for consistency
+	slices.SortFunc(vars, func(a, b types.Variable) int {
+		return strings.Compare(a.Name, b.Name)
+	})
+	return vars
+}