diff --git a/src/DacpacTool/Extensions.cs b/src/DacpacTool/Extensions.cs
index 9ddb4e18..9ed4d7ae 100644
--- a/src/DacpacTool/Extensions.cs
+++ b/src/DacpacTool/Extensions.cs
@@ -204,16 +204,28 @@ public static IEnumerable<string> GetReferencedDacPackages(this TSqlModel model)
             return result;
         }
 
-        public static void AddSqlCmdVariables(this TSqlModel model, string[] variableNames)
+        public static void AddSqlCmdVariables(this TSqlModel model, string[] variables)
         {
             var dataSchemaModel = GetDataSchemaModel(model);
 
             var customData = Activator.CreateInstance(Type.GetType("Microsoft.Data.Tools.Schema.SchemaModel.CustomSchemaData, Microsoft.Data.Tools.Schema.Sql"), "SqlCmdVariables", "SqlCmdVariable");
 
-            foreach (var variableName in variableNames)
+            foreach (var variable in variables)
             {
+                var varWithValue = variable.Split('=', 2);
+                var variableName = varWithValue[0];
+                string variableDefaultValue = string.Empty;
+
+                if (varWithValue.Length > 1 && varWithValue[1] != string.Empty)
+                {
+                    variableDefaultValue = varWithValue[1];
+                    Console.WriteLine($"Adding SqlCmd variable {variableName} with default value {variableDefaultValue}");
+                }
+                else
+                    Console.WriteLine($"Adding SqlCmd variable {variableName}");
+
                 var setMetadataMethod = customData.GetType().GetMethod("SetMetadata", BindingFlags.Public | BindingFlags.Instance);
-                setMetadataMethod.Invoke(customData, new object[] { variableName, string.Empty });
+                setMetadataMethod.Invoke(customData, new object[] { variableName, variableDefaultValue });
             }
 
             AddCustomData(dataSchemaModel, customData);
diff --git a/src/DacpacTool/PackageBuilder.cs b/src/DacpacTool/PackageBuilder.cs
index 92dc7cf8..3ad0b101 100644
--- a/src/DacpacTool/PackageBuilder.cs
+++ b/src/DacpacTool/PackageBuilder.cs
@@ -50,17 +50,12 @@ private void ValidateReference(string referenceFile)
             }
         }
 
-        public void AddSqlCmdVariables(string[] variableNames)
+        public void AddSqlCmdVariables(string[] variables)
         {
             // Ensure that the model has been created
             EnsureModelCreated();
 
-            foreach (var variableName in variableNames)
-            {
-                Console.WriteLine($"Adding SqlCmd variable {variableName}");
-            }
-
-            Model.AddSqlCmdVariables(variableNames);
+            Model.AddSqlCmdVariables(variables);
         }
 
         public void AddInputFile(FileInfo inputFile)
diff --git a/src/MSBuild.Sdk.SqlProj/Sdk/Sdk.targets b/src/MSBuild.Sdk.SqlProj/Sdk/Sdk.targets
index de375573..ed75ac80 100644
--- a/src/MSBuild.Sdk.SqlProj/Sdk/Sdk.targets
+++ b/src/MSBuild.Sdk.SqlProj/Sdk/Sdk.targets
@@ -221,7 +221,7 @@
       <InputFileArguments>-i &quot;$(IntermediateOutputPath)$(MSBuildProjectName).InputFiles.txt&quot;</InputFileArguments>
       <BuildPropertyArguments>@(BuildPropertyNames->'-bp %(Identity)=%(PropertyValue)', ' ')</BuildPropertyArguments>
       <DeployPropertyArguments>@(DeployPropertyNames->'-dp %(Identity)=%(PropertyValue)', ' ')</DeployPropertyArguments>
-      <SqlCmdVariableArguments>@(SqlCmdVariable->'-sc %(Identity)', ' ')</SqlCmdVariableArguments>
+      <SqlCmdVariableArguments>@(SqlCmdVariable->'-sc %(Identity)=%(DefaultValue)', ' ')</SqlCmdVariableArguments>
       <PreDeploymentScriptArgument>@(PreDeploy->'--predeploy %(Identity)', ' ')</PreDeploymentScriptArgument>
       <PostDeploymentScriptArgument>@(PostDeploy->'--postdeploy %(Identity)', ' ')</PostDeploymentScriptArgument>
       <RefactorLogScriptArgument>@(RefactorLog->'--refactorlog %(Identity)', ' ')</RefactorLogScriptArgument>
diff --git a/test/DacpacTool.Tests/PackageBuilderTests.cs b/test/DacpacTool.Tests/PackageBuilderTests.cs
index 6de50b2e..53f8c004 100644
--- a/test/DacpacTool.Tests/PackageBuilderTests.cs
+++ b/test/DacpacTool.Tests/PackageBuilderTests.cs
@@ -222,6 +222,45 @@ public void AddSqlCmdvariable()
             tempFile.Delete();
         }
 
+        [TestMethod]
+        public void AddSqlCmdvariableWithDefaultValue()
+        {
+            // Arrange
+            var first = "DbReader=dbReaderValue";
+            var second = "DbWriter=dbWriterValue";
+            var tempFile = new FileInfo(Path.GetTempFileName());
+            var packageBuilder = new PackageBuilder();
+            packageBuilder.SetMetadata("MyPackage", "1.0.0.0");
+            packageBuilder.UsingVersion(SqlServerVersion.Sql150);
+
+            // Act
+            packageBuilder.AddSqlCmdVariables(new string[] { first, second });
+
+            // Assert
+            packageBuilder.ValidateModel();
+            packageBuilder.SaveToDisk(tempFile);
+            var headerParser = new DacpacHeaderParser.HeaderParser(tempFile.FullName);
+
+            headerParser.GetCustomData()
+                .Where(d => d.Category == "SqlCmdVariables"
+                    && d.Type == "SqlCmdVariable")
+                .SelectMany(d => d.Items)
+                .Where(i => i.Name == "DbReader"
+                    && i.Value == "dbReaderValue")
+                .ToList().Count.ShouldBe(1);
+
+            headerParser.GetCustomData()
+                .Where(d => d.Category == "SqlCmdVariables"
+                    && d.Type == "SqlCmdVariable")
+                .SelectMany(d => d.Items)
+                .Where(i => i.Name == "DbWriter"
+                    && i.Value == "dbWriterValue")
+                .ToList().Count.ShouldBe(1);
+
+            // Cleanup
+            tempFile.Delete();
+        }
+
         [TestMethod]
         public void AddPreDeployment_FilesExist()
         {