diff --git a/crates/zed/src/languages.rs b/crates/zed/src/languages.rs
index 2c59860bd5..af0fc62512 100644
--- a/crates/zed/src/languages.rs
+++ b/crates/zed/src/languages.rs
@@ -287,6 +287,7 @@ pub fn init(
     language("uiua", vec![Arc::new(uiua::UiuaLanguageServer {})]);
     language("proto", vec![]);
     language("terraform", vec![]);
+    language("terraform-vars", vec![]);
     language("hcl", vec![]);
 }
 
diff --git a/crates/zed/src/languages/terraform-vars/config.toml b/crates/zed/src/languages/terraform-vars/config.toml
new file mode 100644
index 0000000000..12ed7e236c
--- /dev/null
+++ b/crates/zed/src/languages/terraform-vars/config.toml
@@ -0,0 +1,14 @@
+name = "Terraform Vars"
+grammar = "hcl"
+path_suffixes = ["tfvars"]
+line_comments = ["# ", "// "]
+block_comment = ["/*", "*/"]
+autoclose_before = ",}])"
+brackets = [
+    { start = "{", end = "}", close = true, newline = true },
+    { start = "[", end = "]", close = true, newline = true },
+    { start = "(", end = ")", close = true, newline = true },
+    { start = "\"", end = "\"", close = true, newline = false, not_in = ["comment", "string"] },
+    { start = "'", end = "'", close = true, newline = false, not_in = ["comment", "string"] },
+    { start = "/*", end = " */", close = true, newline = false, not_in = ["comment", "string"] },
+]
diff --git a/crates/zed/src/languages/terraform-vars/highlights.scm b/crates/zed/src/languages/terraform-vars/highlights.scm
new file mode 100644
index 0000000000..f123c3232d
--- /dev/null
+++ b/crates/zed/src/languages/terraform-vars/highlights.scm
@@ -0,0 +1,159 @@
+; https://github.com/nvim-treesitter/nvim-treesitter/blob/cb79d2446196d25607eb1d982c96939abdf67b8e/queries/hcl/highlights.scm
+; highlights.scm
+[
+  "!"
+  "\*"
+  "/"
+  "%"
+  "\+"
+  "-"
+  ">"
+  ">="
+  "<"
+  "<="
+  "=="
+  "!="
+  "&&"
+  "||"
+] @operator
+
+[
+  "{"
+  "}"
+  "["
+  "]"
+  "("
+  ")"
+] @punctuation.bracket
+
+[
+  "."
+  ".*"
+  ","
+  "[*]"
+] @punctuation.delimiter
+
+[
+  (ellipsis)
+  "\?"
+  "=>"
+] @punctuation.special
+
+[
+  ":"
+  "="
+] @punctuation
+
+[
+  "for"
+  "endfor"
+  "in"
+  "if"
+  "else"
+  "endif"
+] @keyword
+
+[
+  (quoted_template_start) ; "
+  (quoted_template_end) ; "
+  (template_literal) ; non-interpolation/directive content
+] @string
+
+[
+  (heredoc_identifier) ; END
+  (heredoc_start) ; << or <<-
+] @punctuation.delimiter
+
+[
+  (template_interpolation_start) ; ${
+  (template_interpolation_end) ; }
+  (template_directive_start) ; %{
+  (template_directive_end) ; }
+  (strip_marker) ; ~
+] @punctuation.special
+
+(numeric_lit) @number
+
+(bool_lit) @boolean
+
+(null_lit) @constant
+
+(comment) @comment
+
+(identifier) @variable
+
+(body
+  (block
+    (identifier) @keyword))
+
+(body
+  (block
+    (body
+      (block
+        (identifier) @type))))
+
+(function_call
+  (identifier) @function)
+
+(attribute
+  (identifier) @variable)
+
+; { key: val }
+;
+; highlight identifier keys as though they were block attributes
+(object_elem
+  key:
+    (expression
+      (variable_expr
+        (identifier) @variable)))
+
+; var.foo, data.bar
+;
+; first element in get_attr is a variable.builtin or a reference to a variable.builtin
+(expression
+  (variable_expr
+    (identifier) @variable)
+  (get_attr
+    (identifier) @variable))
+
+; https://github.com/nvim-treesitter/nvim-treesitter/blob/cb79d2446196d25607eb1d982c96939abdf67b8e/queries/terraform/highlights.scm
+; Terraform specific references
+;
+;
+; local/module/data/var/output
+(expression
+  (variable_expr
+    (identifier) @variable
+    (#any-of? @variable "data" "var" "local" "module" "output"))
+  (get_attr
+    (identifier) @variable))
+
+; path.root/cwd/module
+(expression
+  (variable_expr
+    (identifier) @type
+    (#eq? @type "path"))
+  (get_attr
+    (identifier) @variable
+    (#any-of? @variable "root" "cwd" "module")))
+
+; terraform.workspace
+(expression
+  (variable_expr
+    (identifier) @type
+    (#eq? @type "terraform"))
+  (get_attr
+    (identifier) @variable
+    (#any-of? @variable "workspace")))
+
+; Terraform specific keywords
+; FIXME: ideally only for identifiers under a `variable` block to minimize false positives
+((identifier) @type
+  (#any-of? @type "bool" "string" "number" "object" "tuple" "list" "map" "set" "any"))
+
+(object_elem
+  val:
+    (expression
+      (variable_expr
+        (identifier) @type
+        (#any-of? @type "bool" "string" "number" "object" "tuple" "list" "map" "set" "any"))))
diff --git a/crates/zed/src/languages/terraform-vars/indents.scm b/crates/zed/src/languages/terraform-vars/indents.scm
new file mode 100644
index 0000000000..95ad93df1d
--- /dev/null
+++ b/crates/zed/src/languages/terraform-vars/indents.scm
@@ -0,0 +1,14 @@
+; https://github.com/nvim-treesitter/nvim-treesitter/blob/ce4adf11cfe36fc5b0e5bcdce0c7c6e8fbc9798a/queries/hcl/indents.scm
+[
+  (block)
+  (object)
+  (tuple)
+  (function_call)
+] @indent
+
+(_ "[" "]" @end) @indent
+(_ "(" ")" @end) @indent
+(_ "{" "}" @end) @indent
+
+; https://github.com/nvim-treesitter/nvim-treesitter/blob/ce4adf11cfe36fc5b0e5bcdce0c7c6e8fbc9798a/queries/terraform/indents.scm
+; inherits: hcl
diff --git a/crates/zed/src/languages/terraform-vars/injections.scm b/crates/zed/src/languages/terraform-vars/injections.scm
new file mode 100644
index 0000000000..b41ee95d40
--- /dev/null
+++ b/crates/zed/src/languages/terraform-vars/injections.scm
@@ -0,0 +1,9 @@
+; https://github.com/nvim-treesitter/nvim-treesitter/blob/ce4adf11cfe36fc5b0e5bcdce0c7c6e8fbc9798a/queries/hcl/injections.scm
+
+(heredoc_template
+  (template_literal) @content
+  (heredoc_identifier) @language
+  (#downcase! @language))
+
+; https://github.com/nvim-treesitter/nvim-treesitter/blob/ce4adf11cfe36fc5b0e5bcdce0c7c6e8fbc9798a/queries/terraform/injections.scm
+; inherits: hcl
diff --git a/crates/zed/src/languages/terraform/config.toml b/crates/zed/src/languages/terraform/config.toml
index 11fe6fcd31..c2401c24ca 100644
--- a/crates/zed/src/languages/terraform/config.toml
+++ b/crates/zed/src/languages/terraform/config.toml
@@ -1,6 +1,6 @@
 name = "Terraform"
 grammar = "hcl"
-path_suffixes = ["tf", "tfvars"]
+path_suffixes = ["tf"]
 line_comments = ["# ", "// "]
 block_comment = ["/*", "*/"]
 autoclose_before = ",}])"