diff --git a/extensions/sql-database-projects/src/common/constants.ts b/extensions/sql-database-projects/src/common/constants.ts
index 5920ad3f77..dc3f385853 100644
--- a/extensions/sql-database-projects/src/common/constants.ts
+++ b/extensions/sql-database-projects/src/common/constants.ts
@@ -158,6 +158,7 @@ export const chooseSqlcmdVarsToModify = localize('chooseSqlcmdVarsToModify', "Ch
 export const enterNewValueForVar = (varName: string) => localize('enterNewValueForVar', "Enter new default value for variable '{0}'", varName);
 export const enterNewSqlCmdVariableName = localize('enterNewSqlCmdVariableName', "Enter new SQLCMD Variable name");
 export const enterNewSqlCmdVariableDefaultValue = (varName: string) => localize('enterNewSqlCmdVariableDefaultValue', "Enter default value for SQLCMD variable '{0}'", varName);
+export const addSqlCmdVariableWithoutDefaultValue = (varName: string) => localize('addSqlCmdVariableWithoutDefaultValue', "Add SQLCMD variable '{0}' to project without default value?", varName);
 export const sqlcmdVariableAlreadyExists = localize('sqlcmdVariableAlreadyExists', "A SQLCMD Variable with the same name already exists in this project");
 export const resetAllVars = localize('resetAllVars', "Reset all variables");
 export const createNew = localize('createNew', "Create New");
diff --git a/extensions/sql-database-projects/src/controllers/projectController.ts b/extensions/sql-database-projects/src/controllers/projectController.ts
index 167c005ca2..11f899b8cf 100644
--- a/extensions/sql-database-projects/src/controllers/projectController.ts
+++ b/extensions/sql-database-projects/src/controllers/projectController.ts
@@ -993,14 +993,21 @@ export class ProjectsController {
 			return;
 		}
 
-		const defaultValue = await vscode.window.showInputBox(
+		let defaultValue = await vscode.window.showInputBox(
 			{
 				title: constants.enterNewSqlCmdVariableDefaultValue(variableName),
 				ignoreFocusOut: true
 			});
 
 		if (!defaultValue) {
-			return;
+			// prompt asking if they want to add to add a sqlcmd variable without a default value
+			const result = await vscode.window.showInformationMessage(constants.addSqlCmdVariableWithoutDefaultValue(variableName), constants.yesString, constants.noString);
+
+			if (result === constants.noString) {
+				return;
+			} else {
+				defaultValue = '';
+			}
 		}
 
 		await project.addSqlCmdVariable(variableName, defaultValue);
diff --git a/extensions/sql-database-projects/src/test/projectController.test.ts b/extensions/sql-database-projects/src/test/projectController.test.ts
index 2898d5f3d6..46398f7d6a 100644
--- a/extensions/sql-database-projects/src/test/projectController.test.ts
+++ b/extensions/sql-database-projects/src/test/projectController.test.ts
@@ -1116,6 +1116,40 @@ describe('ProjectsController', function (): void {
 			should(project.sqlCmdVariables.size).equal(3, 'The project should have 3 sqlcmd variable after adding a new one');
 		});
 
+		it('Should add sqlcmd variable without DefaultValue', async function (): Promise<void> {
+			let project = await testUtils.createTestProject(this.test, baselines.openSdkStyleSqlProjectBaseline);
+			const sqlProjectsService = await utils.getSqlProjectsService();
+			await sqlProjectsService.openProject(project.projectFilePath);
+
+			const projController = new ProjectsController(testContext.outputChannel);
+			const projRoot = new ProjectRootTreeItem(project);
+
+			should(project.sqlCmdVariables.size).equal(2, 'The project should start with 2 sqlcmd variables');
+
+			const inputBoxStub = sinon.stub(vscode.window, 'showInputBox');
+			inputBoxStub.onFirstCall().resolves('newVariable');
+			inputBoxStub.onSecondCall().resolves(undefined);
+			const infoMessageStub = sinon.stub(vscode.window, 'showInformationMessage');
+			infoMessageStub.onFirstCall().returns(<any>Promise.resolve(constants.noString));
+			await projController.addSqlCmdVariable(createWorkspaceTreeItem(projRoot.children.find(x => x.friendlyName === constants.sqlcmdVariablesNodeName)!));
+
+			// reload project
+			project = await Project.openProject(project.projectFilePath);
+			should(project.sqlCmdVariables.size).equal(2, 'The project should still have 2 sqlcmd variables if no was selected for adding sqlcmd variable without a DefaultValue');
+
+			inputBoxStub.reset();
+			inputBoxStub.onFirstCall().resolves('newVariable');
+			inputBoxStub.onSecondCall().resolves(undefined);
+			infoMessageStub.onSecondCall().returns(<any>Promise.resolve(constants.yesString));
+			await projController.addSqlCmdVariable(createWorkspaceTreeItem(projRoot.children.find(x => x.friendlyName === constants.sqlcmdVariablesNodeName)!));
+
+			// reload project
+			project = await Project.openProject(project.projectFilePath);
+			should(project.sqlCmdVariables.size).equal(3, 'The project should have 3 sqlcmd variable after adding a new one without a DefaultValue');
+			should(project.sqlCmdVariables.get('newVariable')).equal('', 'The default value of newVariable should be an empty string');
+		});
+
+
 		it('Should update sqlcmd variable', async function (): Promise<void> {
 			let project = await testUtils.createTestProject(this.test, baselines.openSdkStyleSqlProjectBaseline);
 			const sqlProjectsService = await utils.getSqlProjectsService();