diff --git a/addons/block_code/block_code_plugin.gd b/addons/block_code/block_code_plugin.gd
index 80991aa0..2140879b 100644
--- a/addons/block_code/block_code_plugin.gd
+++ b/addons/block_code/block_code_plugin.gd
@@ -44,7 +44,9 @@ const DISABLED_CLASSES := [
 	"TitleBar",
 	"MainPanel",
 	"BlockCodePlugin",
-	"BlockCategoryButton"
+	"BlockCategoryButton",
+	"CreateVariableButton",
+	"VariableCategoryDisplay"
 ]
 
 
diff --git a/addons/block_code/block_script_data/block_script_data.gd b/addons/block_code/block_script_data/block_script_data.gd
index 4e933c41..3502ca73 100644
--- a/addons/block_code/block_script_data/block_script_data.gd
+++ b/addons/block_code/block_script_data/block_script_data.gd
@@ -3,12 +3,14 @@ extends Resource
 
 @export var script_inherits: String
 @export var block_trees: SerializedBlockTreeNodeArray
+@export var variables: Array[VariableResource]
 @export var generated_script: String
 @export var version: int
 
 
-func _init(p_script_inherits: String = "", p_block_trees: SerializedBlockTreeNodeArray = null, p_generated_script: String = "", p_version = 0):
+func _init(p_script_inherits: String = "", p_block_trees: SerializedBlockTreeNodeArray = null, p_variables: Array[VariableResource] = [], p_generated_script: String = "", p_version = 0):
 	script_inherits = p_script_inherits
 	block_trees = p_block_trees
 	generated_script = p_generated_script
+	variables = p_variables
 	version = p_version
diff --git a/addons/block_code/examples/pong_game/pong_game.tscn b/addons/block_code/examples/pong_game/pong_game.tscn
index 41c45314..02c6f96e 100644
--- a/addons/block_code/examples/pong_game/pong_game.tscn
+++ b/addons/block_code/examples/pong_game/pong_game.tscn
@@ -49,6 +49,7 @@ array = Array[ExtResource("4_qtggh")]([SubResource("Resource_uln40")])
 script = ExtResource("7_uuuue")
 script_inherits = "SimpleCharacter"
 block_trees = SubResource("Resource_4j61k")
+variables = Array[Resource("res://addons/block_code/ui/block_canvas/variable_resource.gd")]([])
 generated_script = "extends SimpleCharacter
 
 var VAR_DICT := {}
@@ -64,6 +65,7 @@ func _process(delta):
 	move_and_slide()
 
 "
+version = 0
 
 [sub_resource type="Resource" id="Resource_d4hry"]
 script = ExtResource("5_wr38c")
@@ -102,6 +104,7 @@ array = Array[ExtResource("4_qtggh")]([SubResource("Resource_75h61")])
 script = ExtResource("7_uuuue")
 script_inherits = "SimpleCharacter"
 block_trees = SubResource("Resource_r5rk4")
+variables = Array[Resource("res://addons/block_code/ui/block_canvas/variable_resource.gd")]([])
 generated_script = "extends SimpleCharacter
 
 var VAR_DICT := {}
@@ -117,66 +120,73 @@ func _process(delta):
 	move_and_slide()
 
 "
+version = 0
 
-[sub_resource type="Resource" id="Resource_lbd5h"]
+[sub_resource type="Resource" id="Resource_80onm"]
 script = ExtResource("5_wr38c")
 block_class = &"StatementBlock"
-serialized_props = [["block_name", "statement_block"], ["label", "StatementBlock"], ["color", Color(0.890196, 0.0588235, 0.752941, 1)], ["block_type", 2], ["position", Vector2(0, 0)], ["scope", ""], ["block_format", "Load file {file_path: STRING} as sound {name: STRING}"], ["statement", "VAR_DICT[{name}] = AudioStreamPlayer.new()
-VAR_DICT[{name}].name = {name}
-VAR_DICT[{name}].set_stream(load({file_path}))
-add_child(VAR_DICT[{name}])"], ["defaults", {}], ["param_input_strings", {
+serialized_props = [["block_name", "statement_block"], ["label", "StatementBlock"], ["color", Color(0.890196, 0.0588235, 0.752941, 1)], ["block_type", 2], ["position", Vector2(0, 0)], ["scope", ""], ["block_format", "Load file {file_path: STRING} as sound {name: STRING}"], ["statement", "
+var __sound = AudioStreamPlayer.new()
+__sound.name = {name}
+__sound.set_stream(load({file_path}))
+add_child(__sound)
+"], ["defaults", {}], ["param_input_strings", {
 "file_path": "res://addons/block_code/examples/pong_game/assets/score.ogg",
 "name": "score_sound"
 }]]
 
-[sub_resource type="Resource" id="Resource_6fxi6"]
+[sub_resource type="Resource" id="Resource_jfgyp"]
 script = ExtResource("4_qtggh")
-serialized_block = SubResource("Resource_lbd5h")
+serialized_block = SubResource("Resource_80onm")
 path_child_pairs = []
 
-[sub_resource type="Resource" id="Resource_4ns0q"]
+[sub_resource type="Resource" id="Resource_0qgyx"]
 script = ExtResource("5_wr38c")
 block_class = &"StatementBlock"
-serialized_props = [["block_name", "statement_block"], ["label", "StatementBlock"], ["color", Color(0.890196, 0.0588235, 0.752941, 1)], ["block_type", 2], ["position", Vector2(0, 0)], ["scope", ""], ["block_format", "Load file {file_path: STRING} as sound {name: STRING}"], ["statement", "VAR_DICT[{name}] = AudioStreamPlayer.new()
-VAR_DICT[{name}].name = {name}
-VAR_DICT[{name}].set_stream(load({file_path}))
-add_child(VAR_DICT[{name}])"], ["defaults", {}], ["param_input_strings", {
+serialized_props = [["block_name", "statement_block"], ["label", "StatementBlock"], ["color", Color(0.890196, 0.0588235, 0.752941, 1)], ["block_type", 2], ["position", Vector2(0, 0)], ["scope", ""], ["block_format", "Load file {file_path: STRING} as sound {name: STRING}"], ["statement", "
+var __sound = AudioStreamPlayer.new()
+__sound.name = {name}
+__sound.set_stream(load({file_path}))
+add_child(__sound)
+"], ["defaults", {}], ["param_input_strings", {
 "file_path": "res://addons/block_code/examples/pong_game/assets/wall_hit.ogg",
 "name": "wall_hit"
 }]]
 
-[sub_resource type="Resource" id="Resource_bp15q"]
+[sub_resource type="Resource" id="Resource_515lv"]
 script = ExtResource("4_qtggh")
-serialized_block = SubResource("Resource_4ns0q")
-path_child_pairs = [[NodePath("VBoxContainer/SnapPoint"), SubResource("Resource_6fxi6")]]
+serialized_block = SubResource("Resource_0qgyx")
+path_child_pairs = [[NodePath("VBoxContainer/SnapPoint"), SubResource("Resource_jfgyp")]]
 
-[sub_resource type="Resource" id="Resource_qlhw3"]
+[sub_resource type="Resource" id="Resource_na8wd"]
 script = ExtResource("5_wr38c")
 block_class = &"StatementBlock"
-serialized_props = [["block_name", "statement_block"], ["label", "StatementBlock"], ["color", Color(0.890196, 0.0588235, 0.752941, 1)], ["block_type", 2], ["position", Vector2(0, 0)], ["scope", ""], ["block_format", "Load file {file_path: STRING} as sound {name: STRING}"], ["statement", "VAR_DICT[{name}] = AudioStreamPlayer.new()
-VAR_DICT[{name}].name = {name}
-VAR_DICT[{name}].set_stream(load({file_path}))
-add_child(VAR_DICT[{name}])"], ["defaults", {}], ["param_input_strings", {
+serialized_props = [["block_name", "statement_block"], ["label", "StatementBlock"], ["color", Color(0.890196, 0.0588235, 0.752941, 1)], ["block_type", 2], ["position", Vector2(0, 0)], ["scope", ""], ["block_format", "Load file {file_path: STRING} as sound {name: STRING}"], ["statement", "
+var __sound = AudioStreamPlayer.new()
+__sound.name = {name}
+__sound.set_stream(load({file_path}))
+add_child(__sound)
+"], ["defaults", {}], ["param_input_strings", {
 "file_path": "res://addons/block_code/examples/pong_game/assets/paddle_hit.ogg",
 "name": "paddle_hit"
 }]]
 
-[sub_resource type="Resource" id="Resource_4o4ck"]
+[sub_resource type="Resource" id="Resource_bku44"]
 script = ExtResource("4_qtggh")
-serialized_block = SubResource("Resource_qlhw3")
-path_child_pairs = [[NodePath("VBoxContainer/SnapPoint"), SubResource("Resource_bp15q")]]
+serialized_block = SubResource("Resource_na8wd")
+path_child_pairs = [[NodePath("VBoxContainer/SnapPoint"), SubResource("Resource_515lv")]]
 
-[sub_resource type="Resource" id="Resource_sltlk"]
+[sub_resource type="Resource" id="Resource_2m4ct"]
 script = ExtResource("5_wr38c")
 block_class = &"EntryBlock"
 serialized_props = [["block_name", "ready_block"], ["label", "EntryBlock"], ["color", Color(0.980392, 0.34902, 0.337255, 1)], ["block_type", 1], ["position", Vector2(49, 42)], ["scope", ""], ["block_format", "On Ready"], ["statement", "func _ready():"], ["defaults", {}], ["param_input_strings", {}], ["signal_name", ""]]
 
-[sub_resource type="Resource" id="Resource_wlbg2"]
+[sub_resource type="Resource" id="Resource_lfbxc"]
 script = ExtResource("4_qtggh")
-serialized_block = SubResource("Resource_sltlk")
-path_child_pairs = [[NodePath("VBoxContainer/SnapPoint"), SubResource("Resource_4o4ck")]]
+serialized_block = SubResource("Resource_2m4ct")
+path_child_pairs = [[NodePath("VBoxContainer/SnapPoint"), SubResource("Resource_bku44")]]
 
-[sub_resource type="Resource" id="Resource_5ftwo"]
+[sub_resource type="Resource" id="Resource_0sepo"]
 script = ExtResource("5_wr38c")
 block_class = &"ParameterBlock"
 serialized_props = [["block_name", "parameter_block"], ["label", "Param"], ["color", Color(0.294118, 0.482353, 0.92549, 1)], ["block_type", 3], ["position", Vector2(0, 0)], ["scope", "
@@ -184,12 +194,12 @@ func _on_body_entered(_body: Node):
 	var body: NodePath = _body.get_path()
 "], ["block_format", "body"], ["statement", "body"], ["defaults", {}], ["variant_type", 22], ["param_input_strings", {}]]
 
-[sub_resource type="Resource" id="Resource_2kdpe"]
+[sub_resource type="Resource" id="Resource_k5cwt"]
 script = ExtResource("4_qtggh")
-serialized_block = SubResource("Resource_5ftwo")
+serialized_block = SubResource("Resource_0sepo")
 path_child_pairs = []
 
-[sub_resource type="Resource" id="Resource_282k5"]
+[sub_resource type="Resource" id="Resource_uucid"]
 script = ExtResource("5_wr38c")
 block_class = &"ParameterBlock"
 serialized_props = [["block_name", "parameter_block"], ["label", "Param"], ["color", Color(0.294118, 0.482353, 0.92549, 1)], ["block_type", 3], ["position", Vector2(0, 0)], ["scope", "
@@ -197,12 +207,12 @@ func _on_body_entered(_body: Node):
 	var body: NodePath = _body.get_path()
 "], ["block_format", "body"], ["statement", "body"], ["defaults", {}], ["variant_type", 22], ["param_input_strings", {}]]
 
-[sub_resource type="Resource" id="Resource_rofb0"]
+[sub_resource type="Resource" id="Resource_64xkq"]
 script = ExtResource("4_qtggh")
-serialized_block = SubResource("Resource_282k5")
+serialized_block = SubResource("Resource_uucid")
 path_child_pairs = []
 
-[sub_resource type="Resource" id="Resource_7ldo3"]
+[sub_resource type="Resource" id="Resource_76m34"]
 script = ExtResource("5_wr38c")
 block_class = &"ParameterBlock"
 serialized_props = [["block_name", "parameter_block"], ["label", "Param"], ["color", Color(0.294118, 0.482353, 0.92549, 1)], ["block_type", 3], ["position", Vector2(0, 0)], ["scope", ""], ["block_format", "Is {node: NODE_PATH} in group {group: STRING}"], ["statement", "get_node({node}).is_in_group({group})"], ["defaults", {}], ["variant_type", 1], ["param_input_strings", {
@@ -210,17 +220,20 @@ serialized_props = [["block_name", "parameter_block"], ["label", "Param"], ["col
 "node": ""
 }]]
 
-[sub_resource type="Resource" id="Resource_nqdjc"]
+[sub_resource type="Resource" id="Resource_fmoex"]
 script = ExtResource("4_qtggh")
-serialized_block = SubResource("Resource_7ldo3")
-path_child_pairs = [[NodePath("MarginContainer/HBoxContainer/ParameterInput0/SnapPoint"), SubResource("Resource_rofb0")]]
+serialized_block = SubResource("Resource_76m34")
+path_child_pairs = [[NodePath("MarginContainer/HBoxContainer/ParameterInput0/SnapPoint"), SubResource("Resource_64xkq")]]
 
-[sub_resource type="Resource" id="Resource_j6m6b"]
+[sub_resource type="Resource" id="Resource_d7dfr"]
 script = ExtResource("5_wr38c")
 block_class = &"StatementBlock"
-serialized_props = [["block_name", "statement_block"], ["label", "StatementBlock"], ["color", Color(0.890196, 0.0588235, 0.752941, 1)], ["block_type", 2], ["position", Vector2(0, 0)], ["scope", ""], ["block_format", "Play the sound {name: STRING} with Volume dB {db: FLOAT} and Pitch Scale {pitch: FLOAT}"], ["statement", "VAR_DICT[{name}].volume_db = {db}
-VAR_DICT[{name}].pitch_scale = {pitch}
-VAR_DICT[{name}].play()"], ["defaults", {
+serialized_props = [["block_name", "statement_block"], ["label", "StatementBlock"], ["color", Color(0.890196, 0.0588235, 0.752941, 1)], ["block_type", 2], ["position", Vector2(0, 0)], ["scope", ""], ["block_format", "Play the sound {name: STRING} with Volume dB {db: FLOAT} and Pitch Scale {pitch: FLOAT}"], ["statement", "
+var __sound_node = get_node({name})
+__sound_node.volume_db = {db}
+__sound_node.pitch_scale = {pitch}
+__sound_node.play()
+"], ["defaults", {
 "db": "0.0",
 "pitch": "1.0"
 }], ["param_input_strings", {
@@ -229,12 +242,12 @@ VAR_DICT[{name}].play()"], ["defaults", {
 "pitch": "1.0"
 }]]
 
-[sub_resource type="Resource" id="Resource_scf28"]
+[sub_resource type="Resource" id="Resource_oqnor"]
 script = ExtResource("4_qtggh")
-serialized_block = SubResource("Resource_j6m6b")
+serialized_block = SubResource("Resource_d7dfr")
 path_child_pairs = []
 
-[sub_resource type="Resource" id="Resource_2mpvd"]
+[sub_resource type="Resource" id="Resource_uibbi"]
 script = ExtResource("5_wr38c")
 block_class = &"ParameterBlock"
 serialized_props = [["block_name", "parameter_block"], ["label", "Param"], ["color", Color(0.294118, 0.482353, 0.92549, 1)], ["block_type", 3], ["position", Vector2(0, 0)], ["scope", "
@@ -242,12 +255,12 @@ func _on_body_entered(_body: Node):
 	var body: NodePath = _body.get_path()
 "], ["block_format", "body"], ["statement", "body"], ["defaults", {}], ["variant_type", 22], ["param_input_strings", {}]]
 
-[sub_resource type="Resource" id="Resource_1lxsg"]
+[sub_resource type="Resource" id="Resource_7jqxw"]
 script = ExtResource("4_qtggh")
-serialized_block = SubResource("Resource_2mpvd")
+serialized_block = SubResource("Resource_uibbi")
 path_child_pairs = []
 
-[sub_resource type="Resource" id="Resource_jiood"]
+[sub_resource type="Resource" id="Resource_nchna"]
 script = ExtResource("5_wr38c")
 block_class = &"ParameterBlock"
 serialized_props = [["block_name", "parameter_block"], ["label", "Param"], ["color", Color(0.294118, 0.482353, 0.92549, 1)], ["block_type", 3], ["position", Vector2(0, 0)], ["scope", ""], ["block_format", "Is {node: NODE_PATH} in group {group: STRING}"], ["statement", "get_node({node}).is_in_group({group})"], ["defaults", {}], ["variant_type", 1], ["param_input_strings", {
@@ -255,17 +268,20 @@ serialized_props = [["block_name", "parameter_block"], ["label", "Param"], ["col
 "node": ""
 }]]
 
-[sub_resource type="Resource" id="Resource_cxr6m"]
+[sub_resource type="Resource" id="Resource_35nkf"]
 script = ExtResource("4_qtggh")
-serialized_block = SubResource("Resource_jiood")
-path_child_pairs = [[NodePath("MarginContainer/HBoxContainer/ParameterInput0/SnapPoint"), SubResource("Resource_1lxsg")]]
+serialized_block = SubResource("Resource_nchna")
+path_child_pairs = [[NodePath("MarginContainer/HBoxContainer/ParameterInput0/SnapPoint"), SubResource("Resource_7jqxw")]]
 
-[sub_resource type="Resource" id="Resource_4luxm"]
+[sub_resource type="Resource" id="Resource_fywef"]
 script = ExtResource("5_wr38c")
 block_class = &"StatementBlock"
-serialized_props = [["block_name", "statement_block"], ["label", "StatementBlock"], ["color", Color(0.890196, 0.0588235, 0.752941, 1)], ["block_type", 2], ["position", Vector2(0, 0)], ["scope", ""], ["block_format", "Play the sound {name: STRING} with Volume dB {db: FLOAT} and Pitch Scale {pitch: FLOAT}"], ["statement", "VAR_DICT[{name}].volume_db = {db}
-VAR_DICT[{name}].pitch_scale = {pitch}
-VAR_DICT[{name}].play()"], ["defaults", {
+serialized_props = [["block_name", "statement_block"], ["label", "StatementBlock"], ["color", Color(0.890196, 0.0588235, 0.752941, 1)], ["block_type", 2], ["position", Vector2(0, 0)], ["scope", ""], ["block_format", "Play the sound {name: STRING} with Volume dB {db: FLOAT} and Pitch Scale {pitch: FLOAT}"], ["statement", "
+var __sound_node = get_node({name})
+__sound_node.volume_db = {db}
+__sound_node.pitch_scale = {pitch}
+__sound_node.play()
+"], ["defaults", {
 "db": "0.0",
 "pitch": "1.0"
 }], ["param_input_strings", {
@@ -274,36 +290,36 @@ VAR_DICT[{name}].play()"], ["defaults", {
 "pitch": "1.0"
 }]]
 
-[sub_resource type="Resource" id="Resource_e1yr3"]
+[sub_resource type="Resource" id="Resource_pucal"]
 script = ExtResource("4_qtggh")
-serialized_block = SubResource("Resource_4luxm")
+serialized_block = SubResource("Resource_fywef")
 path_child_pairs = []
 
-[sub_resource type="Resource" id="Resource_v4fm4"]
+[sub_resource type="Resource" id="Resource_8nvnv"]
 script = ExtResource("5_wr38c")
 block_class = &"ControlBlock"
 serialized_props = [["block_name", "control_block"], ["label", "Control Block"], ["color", Color(0.270588, 0.666667, 0.94902, 1)], ["block_type", 2], ["position", Vector2(0, 0)], ["scope", ""], ["block_formats", ["if    {condition: BOOL}"]], ["statements", ["if {condition}:"]], ["defaults", {}], ["param_input_strings_array", [{
 "condition": false
 }]]]
 
-[sub_resource type="Resource" id="Resource_2s53u"]
+[sub_resource type="Resource" id="Resource_r8172"]
 script = ExtResource("4_qtggh")
-serialized_block = SubResource("Resource_v4fm4")
-path_child_pairs = [[NodePath("VBoxContainer/MarginContainer/Rows/Row0/RowHBoxContainer/RowHBox/ParameterInput0/SnapPoint"), SubResource("Resource_cxr6m")], [NodePath("VBoxContainer/MarginContainer/Rows/SnapContainer0/SnapPoint"), SubResource("Resource_e1yr3")]]
+serialized_block = SubResource("Resource_8nvnv")
+path_child_pairs = [[NodePath("VBoxContainer/MarginContainer/Rows/Row0/RowHBoxContainer/RowHBox/ParameterInput0/SnapPoint"), SubResource("Resource_35nkf")], [NodePath("VBoxContainer/MarginContainer/Rows/SnapContainer0/SnapPoint"), SubResource("Resource_pucal")]]
 
-[sub_resource type="Resource" id="Resource_1st46"]
+[sub_resource type="Resource" id="Resource_fl4h4"]
 script = ExtResource("5_wr38c")
 block_class = &"ControlBlock"
 serialized_props = [["block_name", "control_block"], ["label", "Control Block"], ["color", Color(0.270588, 0.666667, 0.94902, 1)], ["block_type", 2], ["position", Vector2(0, 0)], ["scope", ""], ["block_formats", ["if    {condition: BOOL}"]], ["statements", ["if {condition}:"]], ["defaults", {}], ["param_input_strings_array", [{
 "condition": false
 }]]]
 
-[sub_resource type="Resource" id="Resource_ci12p"]
+[sub_resource type="Resource" id="Resource_3xq0k"]
 script = ExtResource("4_qtggh")
-serialized_block = SubResource("Resource_1st46")
-path_child_pairs = [[NodePath("VBoxContainer/MarginContainer/Rows/Row0/RowHBoxContainer/RowHBox/ParameterInput0/SnapPoint"), SubResource("Resource_nqdjc")], [NodePath("VBoxContainer/MarginContainer/Rows/SnapContainer0/SnapPoint"), SubResource("Resource_scf28")], [NodePath("VBoxContainer/SnapPoint"), SubResource("Resource_2s53u")]]
+serialized_block = SubResource("Resource_fl4h4")
+path_child_pairs = [[NodePath("VBoxContainer/MarginContainer/Rows/Row0/RowHBoxContainer/RowHBox/ParameterInput0/SnapPoint"), SubResource("Resource_fmoex")], [NodePath("VBoxContainer/MarginContainer/Rows/SnapContainer0/SnapPoint"), SubResource("Resource_oqnor")], [NodePath("VBoxContainer/SnapPoint"), SubResource("Resource_r8172")]]
 
-[sub_resource type="Resource" id="Resource_gpji8"]
+[sub_resource type="Resource" id="Resource_eiexb"]
 script = ExtResource("5_wr38c")
 block_class = &"EntryBlock"
 serialized_props = [["block_name", "entry_block"], ["label", "EntryBlock"], ["color", Color(0.294118, 0.482353, 0.92549, 1)], ["block_type", 1], ["position", Vector2(50, 226)], ["scope", ""], ["block_format", "On [body: NODE_PATH] entered"], ["statement", "
@@ -311,27 +327,30 @@ func _on_body_entered(_body: Node):
 	var body: NodePath = _body.get_path()
 "], ["defaults", {}], ["param_input_strings", {}], ["signal_name", "body_entered"]]
 
-[sub_resource type="Resource" id="Resource_kidbc"]
+[sub_resource type="Resource" id="Resource_gg652"]
 script = ExtResource("4_qtggh")
-serialized_block = SubResource("Resource_gpji8")
-path_child_pairs = [[NodePath("VBoxContainer/TopMarginContainer/MarginContainer/HBoxContainer/ParameterOutput0/SnapPoint"), SubResource("Resource_2kdpe")], [NodePath("VBoxContainer/SnapPoint"), SubResource("Resource_ci12p")]]
+serialized_block = SubResource("Resource_eiexb")
+path_child_pairs = [[NodePath("VBoxContainer/TopMarginContainer/MarginContainer/HBoxContainer/ParameterOutput0/SnapPoint"), SubResource("Resource_k5cwt")], [NodePath("VBoxContainer/SnapPoint"), SubResource("Resource_3xq0k")]]
 
-[sub_resource type="Resource" id="Resource_s53m4"]
+[sub_resource type="Resource" id="Resource_py8f3"]
 script = ExtResource("5_wr38c")
 block_class = &"ParameterBlock"
 serialized_props = [["block_name", "parameter_block"], ["label", "Param"], ["color", Color(0.0117647, 0.666667, 0.454902, 1)], ["block_type", 3], ["position", Vector2(0, 0)], ["scope", ""], ["block_format", "Viewport Center"], ["statement", "(func (): var transform: Transform2D = get_viewport_transform(); var scale: Vector2 = transform.get_scale(); return -transform.origin / scale + get_viewport_rect().size / scale / 2).call()"], ["defaults", {}], ["variant_type", 5], ["param_input_strings", {}]]
 
-[sub_resource type="Resource" id="Resource_l3fka"]
+[sub_resource type="Resource" id="Resource_kck4x"]
 script = ExtResource("4_qtggh")
-serialized_block = SubResource("Resource_s53m4")
+serialized_block = SubResource("Resource_py8f3")
 path_child_pairs = []
 
-[sub_resource type="Resource" id="Resource_5id23"]
+[sub_resource type="Resource" id="Resource_fyaul"]
 script = ExtResource("5_wr38c")
 block_class = &"StatementBlock"
-serialized_props = [["block_name", "statement_block"], ["label", "StatementBlock"], ["color", Color(0.890196, 0.0588235, 0.752941, 1)], ["block_type", 2], ["position", Vector2(0, 0)], ["scope", ""], ["block_format", "Play the sound {name: STRING} with Volume dB {db: FLOAT} and Pitch Scale {pitch: FLOAT}"], ["statement", "VAR_DICT[{name}].volume_db = {db}
-VAR_DICT[{name}].pitch_scale = {pitch}
-VAR_DICT[{name}].play()"], ["defaults", {
+serialized_props = [["block_name", "statement_block"], ["label", "StatementBlock"], ["color", Color(0.890196, 0.0588235, 0.752941, 1)], ["block_type", 2], ["position", Vector2(0, 0)], ["scope", ""], ["block_format", "Play the sound {name: STRING} with Volume dB {db: FLOAT} and Pitch Scale {pitch: FLOAT}"], ["statement", "
+var __sound_node = get_node({name})
+__sound_node.volume_db = {db}
+__sound_node.pitch_scale = {pitch}
+__sound_node.play()
+"], ["defaults", {
 "db": "0.0",
 "pitch": "1.0"
 }], ["param_input_strings", {
@@ -340,83 +359,87 @@ VAR_DICT[{name}].play()"], ["defaults", {
 "pitch": "1.0"
 }]]
 
-[sub_resource type="Resource" id="Resource_2xngh"]
+[sub_resource type="Resource" id="Resource_1o8v3"]
 script = ExtResource("4_qtggh")
-serialized_block = SubResource("Resource_5id23")
+serialized_block = SubResource("Resource_fyaul")
 path_child_pairs = []
 
-[sub_resource type="Resource" id="Resource_4nxq2"]
+[sub_resource type="Resource" id="Resource_5fsso"]
 script = ExtResource("5_wr38c")
 block_class = &"StatementBlock"
 serialized_props = [["block_name", "statement_block"], ["label", "StatementBlock"], ["color", Color(0.439216, 0.501961, 0.564706, 1)], ["block_type", 2], ["position", Vector2(0, 0)], ["scope", ""], ["block_format", "Set Physics Position {position: VECTOR2}"], ["statement", "PhysicsServer2D.body_set_state(get_rid(),PhysicsServer2D.BODY_STATE_TRANSFORM,Transform2D.IDENTITY.translated({position}))"], ["defaults", {}], ["param_input_strings", {
 "position": "960,544"
 }]]
 
-[sub_resource type="Resource" id="Resource_jy6wp"]
+[sub_resource type="Resource" id="Resource_uyy35"]
 script = ExtResource("4_qtggh")
-serialized_block = SubResource("Resource_4nxq2")
-path_child_pairs = [[NodePath("VBoxContainer/TopMarginContainer/MarginContainer/HBoxContainer/ParameterInput0/SnapPoint"), SubResource("Resource_l3fka")], [NodePath("VBoxContainer/SnapPoint"), SubResource("Resource_2xngh")]]
+serialized_block = SubResource("Resource_5fsso")
+path_child_pairs = [[NodePath("VBoxContainer/TopMarginContainer/MarginContainer/HBoxContainer/ParameterInput0/SnapPoint"), SubResource("Resource_kck4x")], [NodePath("VBoxContainer/SnapPoint"), SubResource("Resource_1o8v3")]]
 
-[sub_resource type="Resource" id="Resource_ysjrw"]
+[sub_resource type="Resource" id="Resource_f3xvu"]
 script = ExtResource("5_wr38c")
 block_class = &"EntryBlock"
 serialized_props = [["block_name", "entry_block"], ["label", "EntryBlock"], ["color", Color(0.941176, 0.764706, 0, 1)], ["block_type", 1], ["position", Vector2(51, 616)], ["scope", ""], ["block_format", "Define method {method_name: NIL}"], ["statement", "func {method_name}():"], ["defaults", {}], ["param_input_strings", {
 "method_name": "reset"
 }], ["signal_name", ""]]
 
-[sub_resource type="Resource" id="Resource_y82yh"]
+[sub_resource type="Resource" id="Resource_n4cap"]
 script = ExtResource("4_qtggh")
-serialized_block = SubResource("Resource_ysjrw")
-path_child_pairs = [[NodePath("VBoxContainer/SnapPoint"), SubResource("Resource_jy6wp")]]
+serialized_block = SubResource("Resource_f3xvu")
+path_child_pairs = [[NodePath("VBoxContainer/SnapPoint"), SubResource("Resource_uyy35")]]
 
-[sub_resource type="Resource" id="Resource_vlu5s"]
+[sub_resource type="Resource" id="Resource_gn6n3"]
 script = ExtResource("6_ppdc3")
-array = Array[ExtResource("4_qtggh")]([SubResource("Resource_wlbg2"), SubResource("Resource_kidbc"), SubResource("Resource_y82yh")])
+array = Array[ExtResource("4_qtggh")]([SubResource("Resource_lfbxc"), SubResource("Resource_gg652"), SubResource("Resource_n4cap")])
 
 [sub_resource type="Resource" id="Resource_hnwk2"]
 script = ExtResource("7_uuuue")
 script_inherits = "RigidBody2D"
-block_trees = SubResource("Resource_vlu5s")
+block_trees = SubResource("Resource_gn6n3")
+variables = Array[Resource("res://addons/block_code/ui/block_canvas/variable_resource.gd")]([])
 generated_script = "extends RigidBody2D
 
-var VAR_DICT := {}
 
 func _ready():
-	VAR_DICT['paddle_hit'] = AudioStreamPlayer.new()
-	VAR_DICT['paddle_hit'].name = 'paddle_hit'
-	VAR_DICT['paddle_hit'].set_stream(load('res://addons/block_code/examples/pong_game/assets/paddle_hit.ogg'))
-	add_child(VAR_DICT['paddle_hit'])
-	VAR_DICT['wall_hit'] = AudioStreamPlayer.new()
-	VAR_DICT['wall_hit'].name = 'wall_hit'
-	VAR_DICT['wall_hit'].set_stream(load('res://addons/block_code/examples/pong_game/assets/wall_hit.ogg'))
-	add_child(VAR_DICT['wall_hit'])
-	VAR_DICT['score_sound'] = AudioStreamPlayer.new()
-	VAR_DICT['score_sound'].name = 'score_sound'
-	VAR_DICT['score_sound'].set_stream(load('res://addons/block_code/examples/pong_game/assets/score.ogg'))
-	add_child(VAR_DICT['score_sound'])
+	var __sound_1 = AudioStreamPlayer.new()
+	__sound_1.name = 'paddle_hit'
+	__sound_1.set_stream(load('res://addons/block_code/examples/pong_game/assets/paddle_hit.ogg'))
+	add_child(__sound_1)
+	var __sound_2 = AudioStreamPlayer.new()
+	__sound_2.name = 'wall_hit'
+	__sound_2.set_stream(load('res://addons/block_code/examples/pong_game/assets/wall_hit.ogg'))
+	add_child(__sound_2)
+	var __sound_3 = AudioStreamPlayer.new()
+	__sound_3.name = 'score_sound'
+	__sound_3.set_stream(load('res://addons/block_code/examples/pong_game/assets/score.ogg'))
+	add_child(__sound_3)
 
 
 func _on_body_entered(_body: Node):
 	var body: NodePath = _body.get_path()
 
 	if get_node(body).is_in_group('paddles'):
-		VAR_DICT['paddle_hit'].volume_db = 0.0
-		VAR_DICT['paddle_hit'].pitch_scale = 1.0
-		VAR_DICT['paddle_hit'].play()
+		var __sound_node_1 = get_node('paddle_hit')
+		__sound_node_1.volume_db = 0.0
+		__sound_node_1.pitch_scale = 1.0
+		__sound_node_1.play()
 	if get_node(body).is_in_group('walls'):
-		VAR_DICT['wall_hit'].volume_db = 0.0
-		VAR_DICT['wall_hit'].pitch_scale = 1.0
-		VAR_DICT['wall_hit'].play()
+		var __sound_node_2 = get_node('wall_hit')
+		__sound_node_2.volume_db = 0.0
+		__sound_node_2.pitch_scale = 1.0
+		__sound_node_2.play()
 
 func reset():
 	PhysicsServer2D.body_set_state(get_rid(),PhysicsServer2D.BODY_STATE_TRANSFORM,Transform2D.IDENTITY.translated((func (): var transform: Transform2D = get_viewport_transform(); var scale: Vector2 = transform.get_scale(); return -transform.origin / scale + get_viewport_rect().size / scale / 2).call()))
-	VAR_DICT['score_sound'].volume_db = 0.0
-	VAR_DICT['score_sound'].pitch_scale = 1.0
-	VAR_DICT['score_sound'].play()
+	var __sound_node_1 = get_node('score_sound')
+	__sound_node_1.volume_db = 0.0
+	__sound_node_1.pitch_scale = 1.0
+	__sound_node_1.play()
 
 func _init():
 	body_entered.connect(_on_body_entered)
 "
+version = 0
 
 [sub_resource type="Resource" id="Resource_tasas"]
 script = ExtResource("5_wr38c")
@@ -516,6 +539,7 @@ array = Array[ExtResource("4_qtggh")]([SubResource("Resource_jwpt1")])
 script = ExtResource("7_uuuue")
 script_inherits = "Area2D"
 block_trees = SubResource("Resource_7qerp")
+variables = Array[Resource("res://addons/block_code/ui/block_canvas/variable_resource.gd")]([])
 generated_script = "extends Area2D
 
 var VAR_DICT := {}
@@ -531,6 +555,7 @@ func _on_body_entered(_body: Node2D):
 func _init():
 	body_entered.connect(_on_body_entered)
 "
+version = 0
 
 [sub_resource type="Resource" id="Resource_doveu"]
 script = ExtResource("5_wr38c")
@@ -630,6 +655,7 @@ array = Array[ExtResource("4_qtggh")]([SubResource("Resource_uj1xx")])
 script = ExtResource("7_uuuue")
 script_inherits = "Area2D"
 block_trees = SubResource("Resource_xphhp")
+variables = Array[Resource("res://addons/block_code/ui/block_canvas/variable_resource.gd")]([])
 generated_script = "extends Area2D
 
 var VAR_DICT := {}
@@ -645,6 +671,7 @@ func _on_body_entered(_body: Node2D):
 func _init():
 	body_entered.connect(_on_body_entered)
 "
+version = 0
 
 [sub_resource type="Resource" id="Resource_nh5qb"]
 script = ExtResource("5_wr38c")
@@ -748,6 +775,7 @@ array = Array[ExtResource("4_qtggh")]([SubResource("Resource_kt2b1"), SubResourc
 script = ExtResource("7_uuuue")
 script_inherits = "SimpleScoring"
 block_trees = SubResource("Resource_c8btv")
+variables = Array[Resource("res://addons/block_code/ui/block_canvas/variable_resource.gd")]([])
 generated_script = "extends SimpleScoring
 
 var VAR_DICT := {}
@@ -764,6 +792,7 @@ func goal_left():
 	score_right += 1
 
 "
+version = 0
 
 [node name="Pong" type="Node2D"]
 
diff --git a/addons/block_code/instruction_tree/instruction_tree.gd b/addons/block_code/instruction_tree/instruction_tree.gd
index 5122074e..f8781100 100644
--- a/addons/block_code/instruction_tree/instruction_tree.gd
+++ b/addons/block_code/instruction_tree/instruction_tree.gd
@@ -14,6 +14,34 @@ class TreeNode:
 		children.append(node)
 
 
+class IDHandler:
+	static var counts: Dictionary = {}
+
+	static func reset():
+		counts = {}
+
+	static func get_unique_id(str: String) -> int:
+		if not counts.has(str):
+			counts[str] = 0
+
+		counts[str] += 1
+
+		return counts[str]
+
+	static func make_unique(formatted_string: String) -> String:
+		var unique_string = formatted_string
+		var regex = RegEx.new()
+		regex.compile("\\b__[^\\s]+")
+		var ids: Dictionary = {}
+		for result in regex.search_all(formatted_string):
+			var result_string = result.get_string()
+			if not ids.has(result_string):
+				ids[result_string] = get_unique_id(result_string)
+			unique_string = unique_string.replace(result_string, result_string + "_%d" % ids[result_string])
+
+		return unique_string
+
+
 func generate_text(root_node: TreeNode, start_depth: int = 0) -> String:
 	var out = PackedStringArray()
 	generate_text_recursive(root_node, start_depth, out)
diff --git a/addons/block_code/types/types.gd b/addons/block_code/types/types.gd
index e4f6ed64..afe4c13e 100644
--- a/addons/block_code/types/types.gd
+++ b/addons/block_code/types/types.gd
@@ -36,6 +36,7 @@ const cast_relationships = [
 	[TYPE_INT, TYPE_STRING, "str(%s)"],
 	[TYPE_FLOAT, TYPE_STRING, "str(%s)"],
 	[TYPE_COLOR, TYPE_STRING, "str(%s)"],
+	[TYPE_VECTOR2, TYPE_STRING, "str(%s)"],
 ]
 
 # Directed graph, edges are CastGraphEdge
diff --git a/addons/block_code/ui/block_canvas/node_block_canvas/node_block_canvas.gd b/addons/block_code/ui/block_canvas/node_block_canvas/node_block_canvas.gd
index 27ede777..aab18d5e 100644
--- a/addons/block_code/ui/block_canvas/node_block_canvas/node_block_canvas.gd
+++ b/addons/block_code/ui/block_canvas/node_block_canvas/node_block_canvas.gd
@@ -3,7 +3,7 @@ class_name NodeBlockCanvas
 extends BlockCanvas
 
 
-func generate_script_from_current_window(script_inherits: String = ""):
+func generate_script_from_current_window(bsd: BlockScriptData):
 	# TODO: implement multiple windows
 	var current_window := _window
 
@@ -21,9 +21,12 @@ func generate_script_from_current_window(script_inherits: String = ""):
 
 	var script: String = ""
 
-	script += "extends %s\n\n" % script_inherits
+	script += "extends %s\n\n" % bsd.script_inherits
 
-	script += "var VAR_DICT := {}\n\n"
+	for variable in bsd.variables:
+		script += "var %s: %s\n\n" % [variable.var_name, type_string(variable.var_type)]
+
+	script += "\n"
 
 	var init_func = InstructionTree.TreeNode.new("func _init():")
 
@@ -43,6 +46,8 @@ func _generate_script_from_entry_blocks(entry_statement: String, entry_blocks: A
 	var signal_node: InstructionTree.TreeNode
 	var is_empty = true
 
+	InstructionTree.IDHandler.reset()
+
 	for entry_block in entry_blocks:
 		var next_block := entry_block.bottom_snap.get_snapped_block()
 
diff --git a/addons/block_code/ui/block_canvas/variable_resource.gd b/addons/block_code/ui/block_canvas/variable_resource.gd
new file mode 100644
index 00000000..119d4371
--- /dev/null
+++ b/addons/block_code/ui/block_canvas/variable_resource.gd
@@ -0,0 +1,10 @@
+class_name VariableResource
+extends Resource
+
+@export var var_name: String
+@export var var_type: Variant.Type
+
+
+func _init(p_var_name: String = "", p_var_type: Variant.Type = TYPE_NIL):
+	var_name = p_var_name
+	var_type = p_var_type
diff --git a/addons/block_code/ui/blocks/control_block/control_block.gd b/addons/block_code/ui/blocks/control_block/control_block.gd
index 1b58522e..0eba1449 100644
--- a/addons/block_code/ui/blocks/control_block/control_block.gd
+++ b/addons/block_code/ui/blocks/control_block/control_block.gd
@@ -45,6 +45,8 @@ func get_instruction_node() -> InstructionTree.TreeNode:
 		for pair in param_name_input_pairs_array[i]:
 			formatted_statement = formatted_statement.replace("{%s}" % pair[0], pair[1].get_string())
 
+		formatted_statement = InstructionTree.IDHandler.make_unique(formatted_statement)
+
 		var new_node := InstructionTree.TreeNode.new(formatted_statement)
 		if i == 0:
 			node = new_node
diff --git a/addons/block_code/ui/blocks/parameter_block/parameter_block.gd b/addons/block_code/ui/blocks/parameter_block/parameter_block.gd
index 2ee9b51f..95a2b7b4 100644
--- a/addons/block_code/ui/blocks/parameter_block/parameter_block.gd
+++ b/addons/block_code/ui/blocks/parameter_block/parameter_block.gd
@@ -55,6 +55,8 @@ func get_parameter_string() -> String:
 	for pair in param_name_input_pairs:
 		formatted_statement = formatted_statement.replace("{%s}" % pair[0], pair[1].get_string())
 
+	formatted_statement = InstructionTree.IDHandler.make_unique(formatted_statement)
+
 	return formatted_statement
 
 
diff --git a/addons/block_code/ui/blocks/statement_block/statement_block.gd b/addons/block_code/ui/blocks/statement_block/statement_block.gd
index 15015795..20aa2e58 100644
--- a/addons/block_code/ui/blocks/statement_block/statement_block.gd
+++ b/addons/block_code/ui/blocks/statement_block/statement_block.gd
@@ -58,6 +58,8 @@ func get_instruction_node() -> InstructionTree.TreeNode:
 	for pair in param_name_input_pairs:
 		formatted_statement = formatted_statement.replace("{%s}" % pair[0], pair[1].get_string())
 
+	formatted_statement = InstructionTree.IDHandler.make_unique(formatted_statement)
+
 	var statement_lines := formatted_statement.split("\n")
 
 	var root: InstructionTree.TreeNode = InstructionTree.TreeNode.new(statement_lines[0])
diff --git a/addons/block_code/ui/main_panel.gd b/addons/block_code/ui/main_panel.gd
index 45f0f59e..afc9ce61 100644
--- a/addons/block_code/ui/main_panel.gd
+++ b/addons/block_code/ui/main_panel.gd
@@ -32,6 +32,7 @@ var undo_redo: EditorUndoRedoManager:
 
 func _ready():
 	_picker.block_picked.connect(_drag_manager.copy_picked_block_and_drag)
+	_picker.variable_created.connect(_create_variable)
 	_block_canvas.reconnect_block.connect(_drag_manager.connect_block_canvas_signals)
 	_drag_manager.block_dropped.connect(save_script)
 	_drag_manager.block_modified.connect(save_script)
@@ -142,7 +143,7 @@ func save_script():
 	undo_redo.add_undo_property(_current_block_code_node.block_script, "generated_script", _current_block_code_node.block_script.generated_script)
 
 	var block_trees := _block_canvas.get_canvas_block_trees()
-	var generated_script = _block_canvas.generate_script_from_current_window(block_script.script_inherits)
+	var generated_script = _block_canvas.generate_script_from_current_window(block_script)
 	block_script.block_trees = block_trees
 	block_script.generated_script = generated_script
 	block_script.version = Constants.CURRENT_DATA_VERSION
@@ -174,7 +175,7 @@ func _print_generated_script():
 	if _current_block_code_node == null:
 		return
 	var block_script: BlockScriptData = _current_block_code_node.block_script
-	var script: String = _block_canvas.generate_script_from_current_window(block_script.script_inherits)
+	var script: String = _block_canvas.generate_script_from_current_window(block_script)
 	print(script)
 	print("Debug script! (not saved)")
 
@@ -252,3 +253,22 @@ func _set_selection(nodes: Array[Node]):
 	EditorInterface.get_selection().clear()
 	for node in nodes:
 		EditorInterface.get_selection().add_node(node)
+
+
+func _create_variable(variable: VariableResource):
+	if _current_block_code_node == null:
+		print("No script loaded to add variable to.")
+		return
+
+	var block_script: BlockScriptData = _current_block_code_node.block_script
+
+	undo_redo.create_action("Create variable %s in %s's block code script" % [variable.var_name, _current_block_code_node.get_parent().name])
+	undo_redo.add_undo_property(_current_block_code_node.block_script, "variables", _current_block_code_node.block_script.variables)
+
+	var new_variables = block_script.variables.duplicate()
+	new_variables.append(variable)
+
+	undo_redo.add_do_property(_current_block_code_node.block_script, "variables", new_variables)
+	undo_redo.commit_action()
+
+	_picker.reload_variables(new_variables)
diff --git a/addons/block_code/ui/picker/categories/category_factory.gd b/addons/block_code/ui/picker/categories/category_factory.gd
index ba85a11e..ac4ae36f 100644
--- a/addons/block_code/ui/picker/categories/category_factory.gd
+++ b/addons/block_code/ui/picker/categories/category_factory.gd
@@ -204,7 +204,7 @@ static func get_general_blocks() -> Array[Block]:
 
 	b = BLOCKS["control_block"].instantiate()
 	b.block_formats = ["repeat {number: INT}"]
-	b.statements = ["for i in {number}:"]
+	b.statements = ["for __i in {number}:"]
 	b.category = "Loops"
 	block_list.append(b)
 
@@ -328,38 +328,6 @@ static func get_general_blocks() -> Array[Block]:
 
 #endregion
 #region Variables
-
-	b = BLOCKS["statement_block"].instantiate()
-	b.block_format = "Set String {var: STRING} {value: STRING}"
-	b.statement = "VAR_DICT[{var}] = {value}"
-	b.category = "Variables"
-	block_list.append(b)
-
-	b = BLOCKS["parameter_block"].instantiate()
-	b.block_format = "Get String {var: STRING}"
-	b.statement = "VAR_DICT[{var}]"
-	b.category = "Variables"
-	block_list.append(b)
-
-	b = BLOCKS["statement_block"].instantiate()
-	b.block_format = "Set Int {var: STRING} {value: INT}"
-	b.statement = "VAR_DICT[{var}] = {value}"
-	b.category = "Variables"
-	block_list.append(b)
-
-	b = BLOCKS["parameter_block"].instantiate()
-	b.variant_type = TYPE_INT
-	b.block_format = "Get Int {var: STRING}"
-	b.statement = "VAR_DICT[{var}]"
-	b.category = "Variables"
-	block_list.append(b)
-
-	b = BLOCKS["parameter_block"].instantiate()
-	b.block_format = "To String {int: INT}"
-	b.statement = "str({int})"
-	b.category = "Variables"
-	block_list.append(b)
-
 	b = BLOCKS["parameter_block"].instantiate()
 	b.variant_type = TYPE_VECTOR2
 	b.block_format = "Vector2 x: {x: FLOAT} y: {y: FLOAT}"
@@ -455,10 +423,10 @@ static func get_general_blocks() -> Array[Block]:
 	b.block_format = "Load file {file_path: STRING} as sound {name: STRING}"
 	b.statement = (
 		"""
-		VAR_DICT[{name}] = AudioStreamPlayer.new()
-		VAR_DICT[{name}].name = {name}
-		VAR_DICT[{name}].set_stream(load({file_path}))
-		add_child(VAR_DICT[{name}])
+		var __sound = AudioStreamPlayer.new()
+		__sound.name = {name}
+		__sound.set_stream(load({file_path}))
+		add_child(__sound)
 		"""
 		. dedent()
 	)
@@ -471,9 +439,10 @@ static func get_general_blocks() -> Array[Block]:
 	b.block_format = "Play the sound {name: STRING} with Volume dB {db: FLOAT} and Pitch Scale {pitch: FLOAT}"
 	b.statement = (
 		"""
-		VAR_DICT[{name}].volume_db = {db}
-		VAR_DICT[{name}].pitch_scale = {pitch}
-		VAR_DICT[{name}].play()
+		var __sound_node = get_node({name})
+		__sound_node.volume_db = {db}
+		__sound_node.pitch_scale = {pitch}
+		__sound_node.play()
 		"""
 		. dedent()
 	)
@@ -513,10 +482,10 @@ static func get_general_blocks() -> Array[Block]:
 static func property_to_blocklist(property: Dictionary) -> Array[Block]:
 	var block_list: Array[Block] = []
 
-	var block_type = property.type
+	var variant_type = property.type
 
-	if block_type:
-		var type_string: String = Types.VARIANT_TYPE_TO_STRING[block_type]
+	if variant_type:
+		var type_string: String = Types.VARIANT_TYPE_TO_STRING[variant_type]
 
 		var b = BLOCKS["statement_block"].instantiate()
 		b.block_format = "Set %s to {value: %s}" % [property.name.capitalize(), type_string]
@@ -531,7 +500,7 @@ static func property_to_blocklist(property: Dictionary) -> Array[Block]:
 		block_list.append(b)
 
 		b = BLOCKS["parameter_block"].instantiate()
-		b.block_type = block_type
+		b.variant_type = variant_type
 		b.block_format = "%s" % property.name.capitalize()
 		b.statement = "%s" % property.name
 		b.category = property.category
@@ -766,3 +735,27 @@ static func _get_input_blocks() -> Array[Block]:
 				InputMap.action_add_event(action, event)
 
 	return block_list
+
+
+static func get_variable_blocks(variables: Array[VariableResource]):
+	var block_list: Array[Block]
+
+	for variable in variables:
+		var type_string: String = Types.VARIANT_TYPE_TO_STRING[variable.var_type]
+
+		var b = BLOCKS["parameter_block"].instantiate()
+		b.variant_type = variable.var_type
+		b.block_format = variable.var_name
+		b.statement = variable.var_name
+		# HACK: Color the blocks since they are outside of the normal picker system
+		b.color = BUILTIN_PROPS["Variables"].color
+		block_list.append(b)
+
+		b = BLOCKS["statement_block"].instantiate()
+		b.block_type = Types.BlockType.EXECUTE
+		b.block_format = "Set %s to {value: %s}" % [variable.var_name, type_string]
+		b.statement = "%s = {value}" % [variable.var_name]
+		b.color = BUILTIN_PROPS["Variables"].color
+		block_list.append(b)
+
+	return block_list
diff --git a/addons/block_code/ui/picker/categories/variable_category/create_variable_button.gd b/addons/block_code/ui/picker/categories/variable_category/create_variable_button.gd
new file mode 100644
index 00000000..85959cc9
--- /dev/null
+++ b/addons/block_code/ui/picker/categories/variable_category/create_variable_button.gd
@@ -0,0 +1,15 @@
+@tool
+class_name CreateVariableButton
+extends MarginContainer
+
+signal create_variable(var_name: String, var_type: String)
+
+@onready var _create_variable_dialog := %CreateVariableDialog
+
+
+func _on_create_button_pressed():
+	_create_variable_dialog.visible = true
+
+
+func _on_create_variable_dialog_create_variable(var_name, var_type):
+	create_variable.emit(var_name, var_type)
diff --git a/addons/block_code/ui/picker/categories/variable_category/create_variable_button.tscn b/addons/block_code/ui/picker/categories/variable_category/create_variable_button.tscn
new file mode 100644
index 00000000..74770a6c
--- /dev/null
+++ b/addons/block_code/ui/picker/categories/variable_category/create_variable_button.tscn
@@ -0,0 +1,20 @@
+[gd_scene load_steps=3 format=3 uid="uid://t0eoc4ekvjr1"]
+
+[ext_resource type="Script" path="res://addons/block_code/ui/picker/categories/variable_category/create_variable_button.gd" id="1_cw6c3"]
+[ext_resource type="PackedScene" uid="uid://dbrm7wwkao0c0" path="res://addons/block_code/ui/picker/categories/variable_category/create_variable_dialog.tscn" id="2_udpg5"]
+
+[node name="CreateVariableButton" type="MarginContainer"]
+size_flags_horizontal = 0
+theme_override_constants/margin_bottom = 12
+script = ExtResource("1_cw6c3")
+
+[node name="CreateButton" type="Button" parent="."]
+layout_mode = 2
+text = "Create New Variable"
+
+[node name="CreateVariableDialog" parent="." instance=ExtResource("2_udpg5")]
+unique_name_in_owner = true
+visible = false
+
+[connection signal="pressed" from="CreateButton" to="." method="_on_create_button_pressed"]
+[connection signal="create_variable" from="CreateVariableDialog" to="." method="_on_create_variable_dialog_create_variable"]
diff --git a/addons/block_code/ui/picker/categories/variable_category/create_variable_dialog.gd b/addons/block_code/ui/picker/categories/variable_category/create_variable_dialog.gd
new file mode 100644
index 00000000..af1db397
--- /dev/null
+++ b/addons/block_code/ui/picker/categories/variable_category/create_variable_dialog.gd
@@ -0,0 +1,100 @@
+@tool
+extends ConfirmationDialog
+
+signal create_variable(var_name: String, var_type: String)
+
+@onready var _variable_input := %VariableInput
+@onready var _type_option := %TypeOption
+@onready var _messages := %Messages
+
+const available_types = ["STRING", "BOOL", "INT", "FLOAT", "VECTOR2", "COLOR"]
+
+
+func _ready():
+	_type_option.clear()
+
+	for type in available_types:
+		_type_option.add_item(type)
+
+	check_errors(_variable_input.text)
+
+
+func _clear():
+	_variable_input.text = ""
+	check_errors(_variable_input.text)
+	_type_option.select(0)
+
+
+func _on_variable_input_text_changed(new_text):
+	get_ok_button().disabled = check_errors(new_text)
+
+
+func check_errors(new_var_name: String) -> bool:
+	if new_var_name.contains(" "):
+		var caret_column = _variable_input.caret_column
+		new_var_name = new_var_name.replace(" ", "_")
+		_variable_input.text = new_var_name
+		_variable_input.caret_column = caret_column
+
+	_messages.clear()
+
+	var errors: Array = []
+
+	if new_var_name == "":
+		errors.append("Variable requires a name")
+	elif new_var_name == "_":
+		errors.append("Variable name cannot be a single underscore")
+	elif RegEx.create_from_string("^[0-9]").search(new_var_name) != null:
+		errors.append("Variable name cannot start with numbers")
+
+	if new_var_name.begins_with("__"):
+		errors.append("Variable name cannot start with two underscores")
+
+	if RegEx.create_from_string("[^_a-zA-Z0-9-]+").search(new_var_name) != null:
+		errors.append("Variable name cannot contain special characters")
+
+	var duplicate_variable_name := false
+	var current_block_code = BlockCodePlugin.main_panel._current_block_code_node
+	if current_block_code:
+		var current_bsd = current_block_code.block_script
+		if current_bsd:
+			for variable in current_bsd.variables:
+				if variable.var_name == new_var_name:
+					duplicate_variable_name = true
+					break
+
+	if duplicate_variable_name:
+		errors.append("Variable already exists")
+
+	if errors.is_empty():
+		_messages.push_context()
+		_messages.push_color(Color("73F27F"))
+		_messages.push_list(0, RichTextLabel.LIST_DOTS, false)
+
+		_messages.add_text("Will create new variable")
+
+		_messages.pop_context()
+
+		return false
+	else:
+		_messages.push_context()
+		_messages.push_color(Color("FF786B"))
+		_messages.push_list(0, RichTextLabel.LIST_DOTS, false)
+
+		for error in errors:
+			_messages.add_text(error)
+			_messages.newline()
+
+		_messages.pop_context()
+
+		return true
+
+
+func _on_confirmed():
+	if not check_errors(_variable_input.text):
+		create_variable.emit(_variable_input.text, _type_option.get_item_text(_type_option.selected))
+	_clear()
+
+
+func _on_canceled():
+	_clear()
diff --git a/addons/block_code/ui/picker/categories/variable_category/create_variable_dialog.tscn b/addons/block_code/ui/picker/categories/variable_category/create_variable_dialog.tscn
new file mode 100644
index 00000000..f8678a2f
--- /dev/null
+++ b/addons/block_code/ui/picker/categories/variable_category/create_variable_dialog.tscn
@@ -0,0 +1,68 @@
+[gd_scene load_steps=2 format=3 uid="uid://dbrm7wwkao0c0"]
+
+[ext_resource type="Script" path="res://addons/block_code/ui/picker/categories/variable_category/create_variable_dialog.gd" id="1_b52me"]
+
+[node name="CreateVariableDialog" type="ConfirmationDialog"]
+title = "Create New Variable"
+initial_position = 1
+size = Vector2i(300, 183)
+visible = true
+ok_button_text = "Create"
+script = ExtResource("1_b52me")
+
+[node name="VBoxContainer" type="VBoxContainer" parent="."]
+offset_left = 8.0
+offset_top = 8.0
+offset_right = 292.0
+offset_bottom = 134.0
+
+[node name="GridContainer" type="GridContainer" parent="VBoxContainer"]
+layout_mode = 2
+columns = 2
+
+[node name="Label" type="Label" parent="VBoxContainer/GridContainer"]
+layout_mode = 2
+text = "Name "
+
+[node name="VariableInput" type="LineEdit" parent="VBoxContainer/GridContainer"]
+unique_name_in_owner = true
+layout_mode = 2
+
+[node name="Label2" type="Label" parent="VBoxContainer/GridContainer"]
+layout_mode = 2
+text = "Type "
+
+[node name="TypeOption" type="OptionButton" parent="VBoxContainer/GridContainer"]
+unique_name_in_owner = true
+layout_mode = 2
+size_flags_horizontal = 3
+item_count = 6
+selected = 0
+popup/item_0/text = "STRING"
+popup/item_0/id = 0
+popup/item_1/text = "BOOL"
+popup/item_1/id = 1
+popup/item_2/text = "INT"
+popup/item_2/id = 2
+popup/item_3/text = "FLOAT"
+popup/item_3/id = 3
+popup/item_4/text = "VECTOR2"
+popup/item_4/id = 4
+popup/item_5/text = "COLOR"
+popup/item_5/id = 5
+
+[node name="ErrorsContainer" type="MarginContainer" parent="VBoxContainer"]
+layout_mode = 2
+size_flags_vertical = 3
+theme_override_constants/margin_top = 8
+
+[node name="Messages" type="RichTextLabel" parent="VBoxContainer/ErrorsContainer"]
+unique_name_in_owner = true
+custom_minimum_size = Vector2(0, 48)
+layout_mode = 2
+theme_override_constants/line_separation = 4
+fit_content = true
+
+[connection signal="canceled" from="." to="." method="_on_canceled"]
+[connection signal="confirmed" from="." to="." method="_on_confirmed"]
+[connection signal="text_changed" from="VBoxContainer/GridContainer/VariableInput" to="." method="_on_variable_input_text_changed"]
diff --git a/addons/block_code/ui/picker/categories/variable_category/variable_category_display.gd b/addons/block_code/ui/picker/categories/variable_category/variable_category_display.gd
new file mode 100644
index 00000000..03de2a0b
--- /dev/null
+++ b/addons/block_code/ui/picker/categories/variable_category/variable_category_display.gd
@@ -0,0 +1,15 @@
+@tool
+class_name VariableCategoryDisplay
+extends BlockCategoryDisplay
+
+signal variable_created(variable: VariableResource)
+
+@onready var variable_blocks := %VariableBlocks
+
+
+func _ready():
+	super()
+
+
+func _on_create_variable(var_name, var_type):
+	variable_created.emit(VariableResource.new(var_name, Types.STRING_TO_VARIANT_TYPE[var_type]))
diff --git a/addons/block_code/ui/picker/categories/variable_category/variable_category_display.tscn b/addons/block_code/ui/picker/categories/variable_category/variable_category_display.tscn
new file mode 100644
index 00000000..dd681c30
--- /dev/null
+++ b/addons/block_code/ui/picker/categories/variable_category/variable_category_display.tscn
@@ -0,0 +1,22 @@
+[gd_scene load_steps=4 format=3 uid="uid://byne4g2yvdf3"]
+
+[ext_resource type="PackedScene" uid="uid://duhpwtfo3k0sk" path="res://addons/block_code/ui/picker/categories/block_category_display.tscn" id="1_vermd"]
+[ext_resource type="Script" path="res://addons/block_code/ui/picker/categories/variable_category/variable_category_display.gd" id="2_ggvi7"]
+[ext_resource type="PackedScene" uid="uid://t0eoc4ekvjr1" path="res://addons/block_code/ui/picker/categories/variable_category/create_variable_button.tscn" id="3_gjvnq"]
+
+[node name="VariableCategoryDisplay" instance=ExtResource("1_vermd")]
+script = ExtResource("2_ggvi7")
+
+[node name="CreateVariableButton" parent="VBoxContainer" index="1" instance=ExtResource("3_gjvnq")]
+layout_mode = 2
+
+[node name="VariableBlocks" type="VBoxContainer" parent="VBoxContainer" index="2"]
+unique_name_in_owner = true
+layout_mode = 2
+theme_override_constants/separation = 14
+
+[node name="Spacer" type="Control" parent="VBoxContainer" index="3"]
+custom_minimum_size = Vector2(0, 30)
+layout_mode = 2
+
+[connection signal="create_variable" from="VBoxContainer/CreateVariableButton" to="." method="_on_create_variable"]
diff --git a/addons/block_code/ui/picker/picker.gd b/addons/block_code/ui/picker/picker.gd
index 64d9a1b7..a18e5d4b 100644
--- a/addons/block_code/ui/picker/picker.gd
+++ b/addons/block_code/ui/picker/picker.gd
@@ -3,6 +3,7 @@ class_name Picker
 extends MarginContainer
 
 signal block_picked(block: Block)
+signal variable_created(variable: VariableResource)
 
 @onready var _block_list := %BlockList
 @onready var _block_scroll := %BlockScroll
@@ -10,6 +11,7 @@ signal block_picked(block: Block)
 @onready var _widget_container := %WidgetContainer
 
 var scroll_tween: Tween
+var _variable_category_display: VariableCategoryDisplay = null
 
 
 func bsd_selected(bsd: BlockScriptData):
@@ -35,6 +37,7 @@ func bsd_selected(bsd: BlockScriptData):
 	blocks_to_add.append_array(CategoryFactory.get_inherited_blocks(parent_class))
 
 	init_picker(blocks_to_add, categories_to_add)
+	reload_variables(bsd.variables)
 
 
 func reset_picker():
@@ -60,7 +63,14 @@ func init_picker(extra_blocks: Array[Block] = [], extra_categories: Array[BlockC
 
 		_category_list.add_child(block_category_button)
 
-		var block_category_display := preload("res://addons/block_code/ui/picker/categories/block_category_display.tscn").instantiate()
+		var block_category_display: BlockCategoryDisplay
+		if category.name != "Variables":
+			block_category_display = preload("res://addons/block_code/ui/picker/categories/block_category_display.tscn").instantiate()
+		else:
+			block_category_display = preload("res://addons/block_code/ui/picker/categories/variable_category/variable_category_display.tscn").instantiate()
+			block_category_display.variable_created.connect(func(variable): variable_created.emit(variable))
+			_variable_category_display = block_category_display
+
 		block_category_display.category = category
 
 		_block_list.add_child(block_category_display)
@@ -92,3 +102,19 @@ func _category_selected(category: BlockCategory):
 
 func set_collapsed(collapsed: bool):
 	_widget_container.visible = not collapsed
+
+
+func reload_variables(variables: Array[VariableResource]):
+	if _variable_category_display:
+		for c in _variable_category_display.variable_blocks.get_children():
+			c.queue_free()
+
+		var i := 1
+		for block in CategoryFactory.get_variable_blocks(variables):
+			_variable_category_display.variable_blocks.add_child(block)
+			block.drag_started.connect(_block_picked)
+			if i % 2 == 0:
+				var spacer := Control.new()
+				spacer.custom_minimum_size.y = 12
+				_variable_category_display.variable_blocks.add_child(spacer)
+			i += 1