diff --git a/package.json b/package.json
index e28935ce1..aff482298 100644
--- a/package.json
+++ b/package.json
@@ -220,6 +220,12 @@
                 "shortTitle": "%containerApps.editEnvironmentVariableName.shortTitle%",
                 "category": "Azure Container Apps"
             },
+            {
+                "command": "containerApps.editEnvironmentVariableValue",
+                "title": "%containerApps.editEnvironmentVariableValue.title%",
+                "shortTitle": "%containerApps.editEnvironmentVariableValue.shortTitle%",
+                "category": "Azure Container Apps"
+            },
             {
                 "command": "containerApps.editEnvironmentVariables",
                 "title": "%containerApps.editEnvironmentVariables%",
@@ -512,10 +518,15 @@
                     "group": "1@1"
                 },
                 {
-                    "command": "containerApps.deleteEnvironmentVariable",
+                    "command": "containerApps.editEnvironmentVariableValue",
                     "when": "view =~ /(azureResourceGroups|azureFocusView)/ && viewItem =~ /environmentVariableItem/i",
                     "group": "1@2"
                 },
+                {
+                    "command": "containerApps.deleteEnvironmentVariable",
+                    "when": "view =~ /(azureResourceGroups|azureFocusView)/ && viewItem =~ /environmentVariableItem/i",
+                    "group": "2@1"
+                },
                 {
                     "command": "containerApps.editScaleRange",
                     "when": "view =~ /(azureResourceGroups|azureFocusView)/ && viewItem =~ /scaleItem/i",
diff --git a/package.nls.json b/package.nls.json
index a093e6bfd..c0ecc08b7 100644
--- a/package.nls.json
+++ b/package.nls.json
@@ -15,6 +15,8 @@
     "containerApps.addEnvironmentVariable": "Add Environment Variable...",
     "containerApps.editEnvironmentVariableName.title": "Edit Environment Variable Name...",
     "containerApps.editEnvironmentVariableName.shortTitle": "Edit Name...",
+    "containerApps.editEnvironmentVariableValue.title": "Edit Environment Variable Value...",
+    "containerApps.editEnvironmentVariableValue.shortTitle": "Edit Value...",
     "containerApps.editEnvironmentVariables": "Edit Environment Variables (.env)...",
     "containerApps.deleteEnvironmentVariable.title": "Delete Environment Variable...",
     "containerApps.deleteEnvironmentVariable.shortTitle": "Delete...",
diff --git a/src/commands/environmentVariables/editEnvironmentVariable/EnvironmentVariableEditDraftStep.ts b/src/commands/environmentVariables/editEnvironmentVariable/EnvironmentVariableEditDraftStep.ts
index 9eaedc642..f85ea1248 100644
--- a/src/commands/environmentVariables/editEnvironmentVariable/EnvironmentVariableEditDraftStep.ts
+++ b/src/commands/environmentVariables/editEnvironmentVariable/EnvironmentVariableEditDraftStep.ts
@@ -10,6 +10,7 @@ import { type ContainerAppItem } from "../../../tree/ContainerAppItem";
 import { type RevisionsItemModel } from "../../../tree/revisionManagement/RevisionItem";
 import { localize } from "../../../utils/localize";
 import { RevisionDraftUpdateBaseStep } from "../../revisionDraft/RevisionDraftUpdateBaseStep";
+import { EnvironmentVariableType } from "../addEnvironmentVariable/EnvironmentVariableTypeListStep";
 import { type EnvironmentVariableEditContext } from "./EnvironmentVariableEditContext";
 
 export class EnvironmentVariableEditDraftStep<T extends EnvironmentVariableEditContext> extends RevisionDraftUpdateBaseStep<T> {
@@ -28,8 +29,19 @@ export class EnvironmentVariableEditDraftStep<T extends EnvironmentVariableEditC
 
         const environmentVariable: EnvironmentVar = nonNullValue(container.env.find(env => env.name === context.environmentVariable.name));
         environmentVariable.name = context.newEnvironmentVariableName ?? environmentVariable.name;
-        environmentVariable.value = context.newEnvironmentVariableManualInput ?? environmentVariable.value;
-        environmentVariable.secretRef = context.secretName ?? environmentVariable.secretRef;
+
+        switch (context.newEnvironmentVariableType) {
+            case EnvironmentVariableType.ManualInput:
+                environmentVariable.value = context.newEnvironmentVariableManualInput ?? '';
+                environmentVariable.secretRef = undefined;
+                break;
+            case EnvironmentVariableType.SecretRef:
+                environmentVariable.value = ''; // The server doesn't allow this value to be undefined
+                environmentVariable.secretRef = context.secretName;
+                break;
+            default:
+            // If no new environmentVariableValue, do nothing (i.e. keep the existing values the same)
+        }
 
         await this.updateRevisionDraftWithTemplate(context);
     }
diff --git a/src/commands/environmentVariables/editEnvironmentVariable/editEnvironmentVariableValue.ts b/src/commands/environmentVariables/editEnvironmentVariable/editEnvironmentVariableValue.ts
new file mode 100644
index 000000000..5651f2829
--- /dev/null
+++ b/src/commands/environmentVariables/editEnvironmentVariable/editEnvironmentVariableValue.ts
@@ -0,0 +1,56 @@
+/*---------------------------------------------------------------------------------------------
+*  Copyright (c) Microsoft Corporation. All rights reserved.
+*  Licensed under the MIT License. See License.md in the project root for license information.
+*--------------------------------------------------------------------------------------------*/
+
+import { AzureWizard, createSubscriptionContext, type IActionContext, type ISubscriptionContext } from "@microsoft/vscode-azext-utils";
+import { type EnvironmentVariableItem } from "../../../tree/containers/EnvironmentVariableItem";
+import { createActivityContext } from "../../../utils/activityUtils";
+import { getManagedEnvironmentFromContainerApp } from "../../../utils/getResourceUtils";
+import { getVerifyProvidersStep } from "../../../utils/getVerifyProvidersStep";
+import { localize } from "../../../utils/localize";
+import { pickEnvironmentVariable } from "../../../utils/pickItem/pickEnvironmentVariables";
+import { isTemplateItemEditable, TemplateItemNotEditableError } from "../../../utils/revisionDraftUtils";
+import { RevisionDraftDeployPromptStep } from "../../revisionDraft/RevisionDraftDeployPromptStep";
+import { EnvironmentVariableTypeListStep } from "../addEnvironmentVariable/EnvironmentVariableTypeListStep";
+import { type EnvironmentVariableEditContext } from "./EnvironmentVariableEditContext";
+import { EnvironmentVariableEditDraftStep } from "./EnvironmentVariableEditDraftStep";
+
+export async function editEnvironmentVariableValue(context: IActionContext, node?: EnvironmentVariableItem): Promise<void> {
+    const item: EnvironmentVariableItem = node ?? await pickEnvironmentVariable(context, { autoSelectDraft: true });
+    const { subscription, containerApp } = item;
+
+    if (!isTemplateItemEditable(item)) {
+        throw new TemplateItemNotEditableError(item);
+    }
+
+    const subscriptionContext: ISubscriptionContext = createSubscriptionContext(subscription);
+
+    const wizardContext: EnvironmentVariableEditContext = {
+        ...context,
+        ...subscriptionContext,
+        ...await createActivityContext(),
+        subscription,
+        managedEnvironment: await getManagedEnvironmentFromContainerApp({ ...context, ...subscriptionContext }, containerApp),
+        containerApp,
+        containersIdx: item.containersIdx,
+        environmentVariable: item.envVariable,
+        isDraftCommand: true,
+    };
+    wizardContext.telemetry.properties.revisionMode = containerApp.revisionsMode;
+
+    const wizard: AzureWizard<EnvironmentVariableEditContext> = new AzureWizard(wizardContext, {
+        title: localize('editEnvironmentVariableValue', 'Edit environment variable value for "{0}" (draft)', wizardContext.environmentVariable.name),
+        promptSteps: [
+            new EnvironmentVariableTypeListStep(),
+            new RevisionDraftDeployPromptStep(),
+        ],
+        executeSteps: [
+            getVerifyProvidersStep<EnvironmentVariableEditContext>(),
+            new EnvironmentVariableEditDraftStep(item),
+        ],
+    });
+
+    await wizard.prompt();
+    await wizard.execute();
+}
diff --git a/src/commands/registerCommands.ts b/src/commands/registerCommands.ts
index dbd775e9a..e89df6dac 100644
--- a/src/commands/registerCommands.ts
+++ b/src/commands/registerCommands.ts
@@ -19,6 +19,7 @@ import { editContainerApp } from './editContainerApp';
 import { addEnvironmentVariable } from './environmentVariables/addEnvironmentVariable/addEnvironmentVariable';
 import { deleteEnvironmentVariable } from './environmentVariables/deleteEnvironmentVariable/deleteEnvironmentVariable';
 import { editEnvironmentVariableName } from './environmentVariables/editEnvironmentVariable/editEnvironmentVariableName';
+import { editEnvironmentVariableValue } from './environmentVariables/editEnvironmentVariable/editEnvironmentVariableValue';
 import { editEnvironmentVariables } from './environmentVariables/editEnvironmentVariables/editEnvironmentVariables';
 import { connectToGitHub } from './gitHub/connectToGitHub/connectToGitHub';
 import { disconnectRepo } from './gitHub/disconnectRepo/disconnectRepo';
@@ -76,6 +77,7 @@ export function registerCommands(): void {
     // environment variables
     registerCommandWithTreeNodeUnwrapping('containerApps.addEnvironmentVariable', addEnvironmentVariable);
     registerCommandWithTreeNodeUnwrapping('containerApps.editEnvironmentVariableName', editEnvironmentVariableName);
+    registerCommandWithTreeNodeUnwrapping('containerApps.editEnvironmentVariableValue', editEnvironmentVariableValue);
     registerCommandWithTreeNodeUnwrapping('containerApps.editEnvironmentVariables', editEnvironmentVariables);
     registerCommandWithTreeNodeUnwrapping('containerApps.deleteEnvironmentVariable', deleteEnvironmentVariable);
 
@@ -117,7 +119,7 @@ export function registerCommands(): void {
     registerCommandWithTreeNodeUnwrapping('containerApps.addScaleRule', addScaleRule);
     registerCommandWithTreeNodeUnwrapping('containerApps.deleteScaleRule', deleteScaleRule);
 
-    //log streaming
+    // log streaming
     registerCommandWithTreeNodeUnwrapping('containerApps.startStreamingLogs', startStreamingLogs);
     registerCommandWithTreeNodeUnwrapping('containerApps.stopStreamingLogs', stopStreamingLogs);