diff --git a/libs/pages/application/src/lib/feature/page-settings-terraform-arguments-feature/page-settings-terraform-arguments-feature.spec.tsx b/libs/pages/application/src/lib/feature/page-settings-terraform-arguments-feature/page-settings-terraform-arguments-feature.spec.tsx
index 6c4edbbcdad..22e6b249150 100644
--- a/libs/pages/application/src/lib/feature/page-settings-terraform-arguments-feature/page-settings-terraform-arguments-feature.spec.tsx
+++ b/libs/pages/application/src/lib/feature/page-settings-terraform-arguments-feature/page-settings-terraform-arguments-feature.spec.tsx
@@ -1,10 +1,20 @@
 import { wrapWithReactHookForm } from '__tests__/utils/wrap-with-react-hook-form'
-import { useEditService, useService } from '@qovery/domains/services/feature'
+import * as servicesDomain from '@qovery/domains/services/feature'
 import { terraformFactoryMock } from '@qovery/shared/factories'
 import { renderWithProviders, screen } from '@qovery/shared/util-tests'
 import { PageSettingsTerraformArgumentsFeature } from './page-settings-terraform-arguments-feature'
 
-jest.mock('@qovery/domains/services/feature')
+const useServiceSpy = jest.spyOn(servicesDomain, 'useService') as jest.Mock
+const useEditServiceSpy = jest.spyOn(servicesDomain, 'useEditService') as jest.Mock
+
+jest.mock('@qovery/domains/variables/feature', () => ({
+  ...jest.requireActual('@qovery/domains/variables/feature'),
+  DropdownVariable: ({ children, onChange }: any) => (
+    <div data-testid="dropdown-variable" onClick={() => onChange('MY_VARIABLE')}>
+      {children}
+    </div>
+  ),
+}))
 
 // Mocking the Terraform service
 const mockService = terraformFactoryMock(1)[0]
@@ -19,12 +29,12 @@ const mockEditService = jest.fn()
 
 describe('PageSettingsTerraformArgumentsFeature', () => {
   beforeEach(() => {
-    useService.mockReturnValue({
+    useServiceSpy.mockReturnValue({
       data: mockService,
       isFetched: true,
       isLoading: false,
     })
-    useEditService.mockReturnValue({
+    useEditServiceSpy.mockReturnValue({
       mutate: mockEditService,
       isLoading: false,
     })
@@ -77,4 +87,93 @@ describe('PageSettingsTerraformArgumentsFeature', () => {
       },
     })
   })
+
+  it('should render variable interpolation wand button for each command', () => {
+    renderWithProviders(wrapWithReactHookForm(<PageSettingsTerraformArgumentsFeature />))
+
+    // Check that the wand button appears for each terraform command
+    const wandButtons = screen.getAllByTestId('dropdown-variable')
+    expect(wandButtons).toHaveLength(5) // init, validate, plan, apply, destroy
+  })
+
+  it('should add variable interpolation to empty input when wand is clicked', async () => {
+    const { userEvent } = renderWithProviders(wrapWithReactHookForm(<PageSettingsTerraformArgumentsFeature />))
+
+    const inputLabelForPlan = screen.getByText('Arguments for plan')
+    const inputForPlan = inputLabelForPlan.closest('div')?.querySelector('input')
+    expect(inputForPlan).toHaveValue('')
+
+    const wandButtons = screen.getAllByTestId('dropdown-variable')
+    const wandButtonForPlan = wandButtons[2]
+
+    // Click the wand button to add a variable
+    await userEvent.click(wandButtonForPlan)
+
+    // Check that the variable was added with correct interpolation syntax
+    expect(inputForPlan).toHaveValue('{{MY_VARIABLE}}')
+  })
+
+  it('should append variable interpolation to existing input when wand is clicked', async () => {
+    const { userEvent } = renderWithProviders(wrapWithReactHookForm(<PageSettingsTerraformArgumentsFeature />))
+
+    // Get the input for init command (which has default value '-auto-approve')
+    const inputLabelForInit = screen.getByText('Arguments for init')
+    const inputForInit = inputLabelForInit.closest('div')?.querySelector('input')
+    expect(inputForInit).toHaveValue('-auto-approve')
+
+    // Find the wand button for the init input (1st command)
+    const wandButtons = screen.getAllByTestId('dropdown-variable')
+    const wandButtonForInit = wandButtons[0]
+
+    // Click the wand button to add a variable
+    await userEvent.click(wandButtonForInit)
+
+    // Check that the variable was appended to existing value with space delimiter
+    expect(inputForInit).toHaveValue('-auto-approve {{MY_VARIABLE}}')
+  })
+
+  it('should correctly submit form with variable interpolation', async () => {
+    const { userEvent } = renderWithProviders(wrapWithReactHookForm(<PageSettingsTerraformArgumentsFeature />))
+
+    // Get the apply input and add a variable using the wand
+    const inputLabelForApply = screen.getByText('Arguments for apply')
+    const inputForApply = inputLabelForApply.closest('div')?.querySelector('input')
+    const wandButtons = screen.getAllByTestId('dropdown-variable')
+    const wandButtonForApply = wandButtons[3] // 0=init, 1=validate, 2=plan, 3=apply
+
+    // Add some text first
+    if (inputForApply) {
+      await userEvent.type(inputForApply, '-auto-approve')
+    }
+
+    // Click the wand button to add a variable
+    await userEvent.click(wandButtonForApply)
+
+    // Submit the form
+    const submitButton = screen.getByText('Save')
+    await userEvent.click(submitButton)
+
+    // Verify that the variable interpolation is correctly submitted
+    expect(mockEditService).toHaveBeenCalledWith({
+      serviceId: mockService.id,
+      payload: {
+        ...mockService,
+        terraform_files_source: {
+          git_repository: {
+            url: mockService.terraform_files_source?.git?.git_repository?.url ?? '',
+            branch: mockService.terraform_files_source?.git?.git_repository?.branch ?? '',
+            git_token_id: mockService.terraform_files_source?.git?.git_repository?.git_token_id ?? '',
+            root_path: mockService.terraform_files_source?.git?.git_repository?.root_path ?? '',
+          },
+        },
+        action_extra_arguments: {
+          init: ['-auto-approve'],
+          validate: [],
+          plan: [],
+          apply: ['-auto-approve', '{{MY_VARIABLE}}'],
+          destroy: ['bye'],
+        },
+      },
+    })
+  })
 })
diff --git a/libs/pages/application/src/lib/feature/page-settings-terraform-arguments-feature/page-settings-terraform-arguments-feature.tsx b/libs/pages/application/src/lib/feature/page-settings-terraform-arguments-feature/page-settings-terraform-arguments-feature.tsx
index 21a089afe3b..a71c90966b7 100644
--- a/libs/pages/application/src/lib/feature/page-settings-terraform-arguments-feature/page-settings-terraform-arguments-feature.tsx
+++ b/libs/pages/application/src/lib/feature/page-settings-terraform-arguments-feature/page-settings-terraform-arguments-feature.tsx
@@ -1,8 +1,10 @@
 import { Controller, FormProvider, useForm } from 'react-hook-form'
 import { useParams } from 'react-router-dom'
 import { useEditService, useService } from '@qovery/domains/services/feature'
+import { DropdownVariable } from '@qovery/domains/variables/feature'
 import { NeedHelp } from '@qovery/shared/assistant/feature'
-import { Button, Heading, InputText, Section } from '@qovery/shared/ui'
+import { Button, Heading, Icon, InputText, Section } from '@qovery/shared/ui'
+import { twMerge } from '@qovery/shared/util-js'
 import { buildEditServicePayload } from '@qovery/shared/util-services'
 
 const DELIMETER = ' '
@@ -138,6 +140,25 @@ export function PageSettingsTerraformArgumentsFeature() {
                       onChange={(e) => field.onChange(e.target.value.split(DELIMETER).filter((arg) => arg !== ''))}
                       label={`Arguments for ${command.name}`}
                       hint={command.hint}
+                      rightElement={
+                        <DropdownVariable
+                          environmentId={environmentId}
+                          onChange={(val) => {
+                            const currentValue = field.value?.join(DELIMETER) || ''
+                            const newValue = currentValue ? `${currentValue} {{${val}}}` : `{{${val}}}`
+                            field.onChange(newValue.split(DELIMETER).filter((arg) => arg !== ''))
+                          }}
+                        >
+                          <button
+                            className={twMerge(
+                              'flex items-center justify-center border-none bg-transparent px-1 text-neutral-350 hover:text-neutral-400'
+                            )}
+                            type="button"
+                          >
+                            <Icon className="text-sm" iconName="wand-magic-sparkles" />
+                          </button>
+                        </DropdownVariable>
+                      }
                     />
                   )}
                 />