diff --git a/d2compiler/compile_test.go b/d2compiler/compile_test.go
index 8c28c3a2a..83ba27c33 100644
--- a/d2compiler/compile_test.go
+++ b/d2compiler/compile_test.go
@@ -3349,6 +3349,37 @@ layers: {
 					assert.Equal(t, "im y var", g.Layers[0].Objects[1].Label.Value)
 				},
 			},
+			{
+				name: "replace",
+				run: func(t *testing.T) {
+					g := assertCompile(t, `
+vars: {
+  x: im x var
+}
+
+scenarios: {
+  l: {
+    vars: {
+      x: im replaced x var
+    }
+    x: ${x}
+  }
+}
+layers: {
+  l2: {
+    vars: {
+      x: im replaced x var
+    }
+    x: ${x}
+  }
+}
+`, "")
+					assert.Equal(t, 1, len(g.Scenarios[0].Objects))
+					assert.Equal(t, "im replaced x var", g.Scenarios[0].Objects[0].Label.Value)
+					assert.Equal(t, 1, len(g.Layers[0].Objects))
+					assert.Equal(t, "im replaced x var", g.Layers[0].Objects[0].Label.Value)
+				},
+			},
 		}
 
 		for _, tc := range tca {
diff --git a/testdata/d2compiler/TestCompile2/vars/boards/replace.exp.json b/testdata/d2compiler/TestCompile2/vars/boards/replace.exp.json
new file mode 100644
index 000000000..a5a4d56e9
--- /dev/null
+++ b/testdata/d2compiler/TestCompile2/vars/boards/replace.exp.json
@@ -0,0 +1,769 @@
+{
+  "graph": {
+    "name": "",
+    "isFolderOnly": false,
+    "ast": {
+      "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,0:0:0-21:0:190",
+      "nodes": [
+        {
+          "map_key": {
+            "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,1:0:1-3:1:24",
+            "key": {
+              "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,1:0:1-1:4:5",
+              "path": [
+                {
+                  "unquoted_string": {
+                    "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,1:0:1-1:4:5",
+                    "value": [
+                      {
+                        "string": "vars",
+                        "raw_string": "vars"
+                      }
+                    ]
+                  }
+                }
+              ]
+            },
+            "primary": {},
+            "value": {
+              "map": {
+                "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,1:6:7-3:1:24",
+                "nodes": [
+                  {
+                    "map_key": {
+                      "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,2:2:11-2:13:22",
+                      "key": {
+                        "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,2:2:11-2:3:12",
+                        "path": [
+                          {
+                            "unquoted_string": {
+                              "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,2:2:11-2:3:12",
+                              "value": [
+                                {
+                                  "string": "x",
+                                  "raw_string": "x"
+                                }
+                              ]
+                            }
+                          }
+                        ]
+                      },
+                      "primary": {},
+                      "value": {
+                        "unquoted_string": {
+                          "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,2:5:14-2:13:22",
+                          "value": [
+                            {
+                              "string": "im x var",
+                              "raw_string": "im x var"
+                            }
+                          ]
+                        }
+                      }
+                    }
+                  }
+                ]
+              }
+            }
+          }
+        },
+        {
+          "map_key": {
+            "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,5:0:26-12:1:108",
+            "key": {
+              "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,5:0:26-5:9:35",
+              "path": [
+                {
+                  "unquoted_string": {
+                    "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,5:0:26-5:9:35",
+                    "value": [
+                      {
+                        "string": "scenarios",
+                        "raw_string": "scenarios"
+                      }
+                    ]
+                  }
+                }
+              ]
+            },
+            "primary": {},
+            "value": {
+              "map": {
+                "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,5:11:37-12:1:108",
+                "nodes": [
+                  {
+                    "map_key": {
+                      "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,6:2:41-11:3:106",
+                      "key": {
+                        "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,6:2:41-6:3:42",
+                        "path": [
+                          {
+                            "unquoted_string": {
+                              "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,6:2:41-6:3:42",
+                              "value": [
+                                {
+                                  "string": "l",
+                                  "raw_string": "l"
+                                }
+                              ]
+                            }
+                          }
+                        ]
+                      },
+                      "primary": {},
+                      "value": {
+                        "map": {
+                          "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,6:5:44-11:3:106",
+                          "nodes": [
+                            {
+                              "map_key": {
+                                "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,7:4:50-9:5:90",
+                                "key": {
+                                  "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,7:4:50-7:8:54",
+                                  "path": [
+                                    {
+                                      "unquoted_string": {
+                                        "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,7:4:50-7:8:54",
+                                        "value": [
+                                          {
+                                            "string": "vars",
+                                            "raw_string": "vars"
+                                          }
+                                        ]
+                                      }
+                                    }
+                                  ]
+                                },
+                                "primary": {},
+                                "value": {
+                                  "map": {
+                                    "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,7:10:56-9:5:90",
+                                    "nodes": [
+                                      {
+                                        "map_key": {
+                                          "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,8:6:64-8:26:84",
+                                          "key": {
+                                            "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,8:6:64-8:7:65",
+                                            "path": [
+                                              {
+                                                "unquoted_string": {
+                                                  "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,8:6:64-8:7:65",
+                                                  "value": [
+                                                    {
+                                                      "string": "x",
+                                                      "raw_string": "x"
+                                                    }
+                                                  ]
+                                                }
+                                              }
+                                            ]
+                                          },
+                                          "primary": {},
+                                          "value": {
+                                            "unquoted_string": {
+                                              "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,8:9:67-8:26:84",
+                                              "value": [
+                                                {
+                                                  "string": "im replaced x var",
+                                                  "raw_string": "im replaced x var"
+                                                }
+                                              ]
+                                            }
+                                          }
+                                        }
+                                      }
+                                    ]
+                                  }
+                                }
+                              }
+                            },
+                            {
+                              "map_key": {
+                                "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,10:4:95-10:11:102",
+                                "key": {
+                                  "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,10:4:95-10:5:96",
+                                  "path": [
+                                    {
+                                      "unquoted_string": {
+                                        "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,10:4:95-10:5:96",
+                                        "value": [
+                                          {
+                                            "string": "x",
+                                            "raw_string": "x"
+                                          }
+                                        ]
+                                      }
+                                    }
+                                  ]
+                                },
+                                "primary": {},
+                                "value": {
+                                  "substitution": {
+                                    "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,10:7:98-10:11:102",
+                                    "spread": false,
+                                    "path": [
+                                      {
+                                        "unquoted_string": {
+                                          "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,10:9:100-10:10:101",
+                                          "value": [
+                                            {
+                                              "string": "x",
+                                              "raw_string": "x"
+                                            }
+                                          ]
+                                        }
+                                      }
+                                    ]
+                                  }
+                                }
+                              }
+                            }
+                          ]
+                        }
+                      }
+                    }
+                  }
+                ]
+              }
+            }
+          }
+        },
+        {
+          "map_key": {
+            "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,13:0:109-20:1:189",
+            "key": {
+              "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,13:0:109-13:6:115",
+              "path": [
+                {
+                  "unquoted_string": {
+                    "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,13:0:109-13:6:115",
+                    "value": [
+                      {
+                        "string": "layers",
+                        "raw_string": "layers"
+                      }
+                    ]
+                  }
+                }
+              ]
+            },
+            "primary": {},
+            "value": {
+              "map": {
+                "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,13:8:117-20:1:189",
+                "nodes": [
+                  {
+                    "map_key": {
+                      "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,14:2:121-19:3:187",
+                      "key": {
+                        "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,14:2:121-14:4:123",
+                        "path": [
+                          {
+                            "unquoted_string": {
+                              "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,14:2:121-14:4:123",
+                              "value": [
+                                {
+                                  "string": "l2",
+                                  "raw_string": "l2"
+                                }
+                              ]
+                            }
+                          }
+                        ]
+                      },
+                      "primary": {},
+                      "value": {
+                        "map": {
+                          "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,14:6:125-19:3:187",
+                          "nodes": [
+                            {
+                              "map_key": {
+                                "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,15:4:131-17:5:171",
+                                "key": {
+                                  "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,15:4:131-15:8:135",
+                                  "path": [
+                                    {
+                                      "unquoted_string": {
+                                        "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,15:4:131-15:8:135",
+                                        "value": [
+                                          {
+                                            "string": "vars",
+                                            "raw_string": "vars"
+                                          }
+                                        ]
+                                      }
+                                    }
+                                  ]
+                                },
+                                "primary": {},
+                                "value": {
+                                  "map": {
+                                    "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,15:10:137-17:5:171",
+                                    "nodes": [
+                                      {
+                                        "map_key": {
+                                          "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,16:6:145-16:26:165",
+                                          "key": {
+                                            "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,16:6:145-16:7:146",
+                                            "path": [
+                                              {
+                                                "unquoted_string": {
+                                                  "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,16:6:145-16:7:146",
+                                                  "value": [
+                                                    {
+                                                      "string": "x",
+                                                      "raw_string": "x"
+                                                    }
+                                                  ]
+                                                }
+                                              }
+                                            ]
+                                          },
+                                          "primary": {},
+                                          "value": {
+                                            "unquoted_string": {
+                                              "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,16:9:148-16:26:165",
+                                              "value": [
+                                                {
+                                                  "string": "im replaced x var",
+                                                  "raw_string": "im replaced x var"
+                                                }
+                                              ]
+                                            }
+                                          }
+                                        }
+                                      }
+                                    ]
+                                  }
+                                }
+                              }
+                            },
+                            {
+                              "map_key": {
+                                "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,18:4:176-18:11:183",
+                                "key": {
+                                  "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,18:4:176-18:5:177",
+                                  "path": [
+                                    {
+                                      "unquoted_string": {
+                                        "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,18:4:176-18:5:177",
+                                        "value": [
+                                          {
+                                            "string": "x",
+                                            "raw_string": "x"
+                                          }
+                                        ]
+                                      }
+                                    }
+                                  ]
+                                },
+                                "primary": {},
+                                "value": {
+                                  "substitution": {
+                                    "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,18:7:179-18:11:183",
+                                    "spread": false,
+                                    "path": [
+                                      {
+                                        "unquoted_string": {
+                                          "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,18:9:181-18:10:182",
+                                          "value": [
+                                            {
+                                              "string": "x",
+                                              "raw_string": "x"
+                                            }
+                                          ]
+                                        }
+                                      }
+                                    ]
+                                  }
+                                }
+                              }
+                            }
+                          ]
+                        }
+                      }
+                    }
+                  }
+                ]
+              }
+            }
+          }
+        }
+      ]
+    },
+    "root": {
+      "id": "",
+      "id_val": "",
+      "attributes": {
+        "label": {
+          "value": ""
+        },
+        "labelDimensions": {
+          "width": 0,
+          "height": 0
+        },
+        "style": {},
+        "near_key": null,
+        "shape": {
+          "value": ""
+        },
+        "direction": {
+          "value": ""
+        },
+        "constraint": null
+      },
+      "zIndex": 0
+    },
+    "edges": null,
+    "objects": null,
+    "layers": [
+      {
+        "name": "l2",
+        "isFolderOnly": false,
+        "ast": {
+          "range": ",1:0:0-2:0:0",
+          "nodes": [
+            {
+              "map_key": {
+                "range": ",0:0:0-0:0:0",
+                "key": {
+                  "range": ",0:0:0-0:0:0",
+                  "path": [
+                    {
+                      "unquoted_string": {
+                        "range": ",0:0:0-0:0:0",
+                        "value": [
+                          {
+                            "string": "vars"
+                          }
+                        ]
+                      }
+                    }
+                  ]
+                },
+                "primary": {},
+                "value": {
+                  "map": {
+                    "range": ",1:0:0-2:0:0",
+                    "nodes": [
+                      {
+                        "map_key": {
+                          "range": ",0:0:0-0:0:0",
+                          "key": {
+                            "range": ",0:0:0-0:0:0",
+                            "path": [
+                              {
+                                "unquoted_string": {
+                                  "range": ",0:0:0-0:0:0",
+                                  "value": [
+                                    {
+                                      "string": "x"
+                                    }
+                                  ]
+                                }
+                              }
+                            ]
+                          },
+                          "primary": {
+                            "unquoted_string": {
+                              "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,16:9:148-16:26:165",
+                              "value": [
+                                {
+                                  "string": "im replaced x var",
+                                  "raw_string": "im replaced x var"
+                                }
+                              ]
+                            }
+                          },
+                          "value": {}
+                        }
+                      }
+                    ]
+                  }
+                }
+              }
+            },
+            {
+              "map_key": {
+                "range": ",0:0:0-0:0:0",
+                "key": {
+                  "range": ",0:0:0-0:0:0",
+                  "path": [
+                    {
+                      "unquoted_string": {
+                        "range": ",0:0:0-0:0:0",
+                        "value": [
+                          {
+                            "string": "x"
+                          }
+                        ]
+                      }
+                    }
+                  ]
+                },
+                "primary": {
+                  "unquoted_string": {
+                    "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,16:9:148-16:26:165",
+                    "value": [
+                      {
+                        "string": "im replaced x var",
+                        "raw_string": "im replaced x var"
+                      }
+                    ]
+                  }
+                },
+                "value": {}
+              }
+            }
+          ]
+        },
+        "root": {
+          "id": "",
+          "id_val": "",
+          "attributes": {
+            "label": {
+              "value": ""
+            },
+            "labelDimensions": {
+              "width": 0,
+              "height": 0
+            },
+            "style": {},
+            "near_key": null,
+            "shape": {
+              "value": ""
+            },
+            "direction": {
+              "value": ""
+            },
+            "constraint": null
+          },
+          "zIndex": 0
+        },
+        "edges": null,
+        "objects": [
+          {
+            "id": "x",
+            "id_val": "x",
+            "references": [
+              {
+                "key": {
+                  "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,18:4:176-18:5:177",
+                  "path": [
+                    {
+                      "unquoted_string": {
+                        "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,18:4:176-18:5:177",
+                        "value": [
+                          {
+                            "string": "x",
+                            "raw_string": "x"
+                          }
+                        ]
+                      }
+                    }
+                  ]
+                },
+                "key_path_index": 0,
+                "map_key_edge_index": -1
+              }
+            ],
+            "attributes": {
+              "label": {
+                "value": "im replaced x var"
+              },
+              "labelDimensions": {
+                "width": 0,
+                "height": 0
+              },
+              "style": {},
+              "near_key": null,
+              "shape": {
+                "value": "rectangle"
+              },
+              "direction": {
+                "value": ""
+              },
+              "constraint": null
+            },
+            "zIndex": 0
+          }
+        ]
+      }
+    ],
+    "scenarios": [
+      {
+        "name": "l",
+        "isFolderOnly": false,
+        "ast": {
+          "range": ",1:0:0-2:0:0",
+          "nodes": [
+            {
+              "map_key": {
+                "range": ",0:0:0-0:0:0",
+                "key": {
+                  "range": ",0:0:0-0:0:0",
+                  "path": [
+                    {
+                      "unquoted_string": {
+                        "range": ",0:0:0-0:0:0",
+                        "value": [
+                          {
+                            "string": "vars"
+                          }
+                        ]
+                      }
+                    }
+                  ]
+                },
+                "primary": {},
+                "value": {
+                  "map": {
+                    "range": ",1:0:0-2:0:0",
+                    "nodes": [
+                      {
+                        "map_key": {
+                          "range": ",0:0:0-0:0:0",
+                          "key": {
+                            "range": ",0:0:0-0:0:0",
+                            "path": [
+                              {
+                                "unquoted_string": {
+                                  "range": ",0:0:0-0:0:0",
+                                  "value": [
+                                    {
+                                      "string": "x"
+                                    }
+                                  ]
+                                }
+                              }
+                            ]
+                          },
+                          "primary": {
+                            "unquoted_string": {
+                              "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,8:9:67-8:26:84",
+                              "value": [
+                                {
+                                  "string": "im replaced x var",
+                                  "raw_string": "im replaced x var"
+                                }
+                              ]
+                            }
+                          },
+                          "value": {}
+                        }
+                      }
+                    ]
+                  }
+                }
+              }
+            },
+            {
+              "map_key": {
+                "range": ",0:0:0-0:0:0",
+                "key": {
+                  "range": ",0:0:0-0:0:0",
+                  "path": [
+                    {
+                      "unquoted_string": {
+                        "range": ",0:0:0-0:0:0",
+                        "value": [
+                          {
+                            "string": "x"
+                          }
+                        ]
+                      }
+                    }
+                  ]
+                },
+                "primary": {
+                  "unquoted_string": {
+                    "range": "d2/testdata/d2compiler/TestCompile2/vars/boards/replace.d2,8:9:67-8:26:84",
+                    "value": [
+                      {
+                        "string": "im replaced x var",
+                        "raw_string": "im replaced x var"
+                      }
+                    ]
+                  }
+                },
+                "value": {}
+              }
+            }
+          ]
+        },
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