diff --git a/d2ast/d2ast.go b/d2ast/d2ast.go
index a5be3fa98..d49b1b268 100644
--- a/d2ast/d2ast.go
+++ b/d2ast/d2ast.go
@@ -423,6 +423,7 @@ func (s *BlockString) value()        {}
 func (a *Array) value()              {}
 func (m *Map) value()                {}
 func (i *Import) value()             {}
+func (i *Substitution) value()       {}
 
 func (n *Null) scalar()               {}
 func (b *Boolean) scalar()            {}
@@ -901,6 +902,7 @@ type ValueBox struct {
 	Array              *Array              `json:"array,omitempty"`
 	Map                *Map                `json:"map,omitempty"`
 	Import             *Import             `json:"import,omitempty"`
+	Substitution       *Substitution       `json:"substitution,omitempty"`
 }
 
 func (vb ValueBox) Unbox() Value {
@@ -925,6 +927,8 @@ func (vb ValueBox) Unbox() Value {
 		return vb.Map
 	case vb.Import != nil:
 		return vb.Import
+	case vb.Substitution != nil:
+		return vb.Substitution
 	default:
 		return nil
 	}
@@ -953,6 +957,8 @@ func MakeValueBox(v Value) ValueBox {
 		vb.Map = v
 	case *Import:
 		vb.Import = v
+	case *Substitution:
+		vb.Substitution = v
 	}
 	return vb
 }
diff --git a/d2compiler/compile.go b/d2compiler/compile.go
index fdb24e551..4c11ac5dd 100644
--- a/d2compiler/compile.go
+++ b/d2compiler/compile.go
@@ -1,6 +1,7 @@
 package d2compiler
 
 import (
+	"encoding/json"
 	"encoding/xml"
 	"fmt"
 	"io"
@@ -64,6 +65,8 @@ func compileIR(ast *d2ast.Map, m *d2ir.Map) (*d2graph.Graph, error) {
 	g := d2graph.NewGraph()
 	g.AST = ast
 	c.compileBoard(g, m)
+	b, _ := json.MarshalIndent(m, "", "  ")
+	println("\033[1;31m--- DEBUG:", string(b), "\033[m")
 	if len(c.err.Errors) > 0 {
 		return nil, c.err
 	}
@@ -277,6 +280,26 @@ func (c *compiler) compileField(obj *d2graph.Object, f *d2ir.Field) {
 			}
 		}
 		return
+	} else if f.Name == "vars" {
+		if f.Map() != nil {
+			if len(f.Map().Edges) > 0 {
+				c.errorf(f.Map().Edges[0].LastRef().AST(), "vars cannot contain an edge")
+			}
+			// for _, varField := range f.Map().Fields {
+			//   if varField.Map() != nil {
+			//     c.errorf(varField.LastRef().AST(), "vars must be simple")
+			//   }
+			//   for _, cf := range classesField.Map().Fields {
+			//     if _, ok := d2graph.ReservedKeywords[cf.Name]; !ok {
+			//       c.errorf(cf.LastRef().AST(), "%s is an invalid class field, must be reserved keyword", cf.Name)
+			//     }
+			//     if cf.Name == "class" {
+			//       c.errorf(cf.LastRef().AST(), `"class" cannot appear within "classes"`)
+			//     }
+			//   }
+			// }
+		}
+		return
 	} else if isReserved {
 		c.compileReserved(&obj.Attributes, f)
 		return
diff --git a/d2compiler/compile_test.go b/d2compiler/compile_test.go
index f0dbaa1bb..08fef43fd 100644
--- a/d2compiler/compile_test.go
+++ b/d2compiler/compile_test.go
@@ -2744,6 +2744,7 @@ func TestCompile2(t *testing.T) {
 	t.Run("boards", testBoards)
 	t.Run("seqdiagrams", testSeqDiagrams)
 	t.Run("nulls", testNulls)
+	t.Run("vars", testVars)
 }
 
 func testBoards(t *testing.T) {
@@ -3168,6 +3169,78 @@ scenarios: {
 	})
 }
 
+func testVars(t *testing.T) {
+	t.Parallel()
+
+	t.Run("basic", func(t *testing.T) {
+		t.Parallel()
+
+		tca := []struct {
+			name string
+			skip bool
+			run  func(t *testing.T)
+		}{
+			{
+				name: "label",
+				run: func(t *testing.T) {
+					g := assertCompile(t, `
+vars: {
+  x: im a var
+}
+hi: ${x}
+`, "")
+					assert.Equal(t, 1, len(g.Objects))
+					assert.Equal(t, "im a var", g.Objects[0].Label.Value)
+				},
+			},
+		}
+
+		for _, tc := range tca {
+			tc := tc
+			t.Run(tc.name, func(t *testing.T) {
+				t.Parallel()
+				if tc.skip {
+					t.SkipNow()
+				}
+				tc.run(t)
+			})
+		}
+	})
+
+	t.Run("errors", func(t *testing.T) {
+		t.Parallel()
+
+		tca := []struct {
+			name string
+			skip bool
+			run  func(t *testing.T)
+		}{
+			{
+				name: "missing",
+				run: func(t *testing.T) {
+					assertCompile(t, `
+vars: {
+  x: hey
+}
+hi: ${z}
+`, "d2/testdata/d2compiler/TestCompile2/vars/errors/missing.d2:5:1: could not resolve variable z")
+				},
+			},
+		}
+
+		for _, tc := range tca {
+			tc := tc
+			t.Run(tc.name, func(t *testing.T) {
+				t.Parallel()
+				if tc.skip {
+					t.SkipNow()
+				}
+				tc.run(t)
+			})
+		}
+	})
+}
+
 func assertCompile(t *testing.T, text string, expErr string) *d2graph.Graph {
 	d2Path := fmt.Sprintf("d2/testdata/d2compiler/%v.d2", t.Name())
 	g, err := d2compiler.Compile(d2Path, strings.NewReader(text), nil)
diff --git a/d2ir/compile.go b/d2ir/compile.go
index f5d92d043..27c11233b 100644
--- a/d2ir/compile.go
+++ b/d2ir/compile.go
@@ -53,6 +53,8 @@ func Compile(ast *d2ast.Map, opts *CompileOptions) (*Map, error) {
 
 	c.compileMap(m, ast, ast)
 	c.compileClasses(m)
+	c.compileVars(m)
+	c.compileSubstitutions(m)
 	if !c.err.Empty() {
 		return nil, c.err
 	}
@@ -96,6 +98,81 @@ func (c *compiler) compileClasses(m *Map) {
 	}
 }
 
+func (c *compiler) compileSubstitutions(m *Map) {
+	vars := m.GetField("vars")
+	for _, f := range m.Fields {
+		// No substitutions within vars itself
+		if f.Name == "vars" {
+			continue
+		}
+		for _, ref := range f.References {
+			if ref.Context.Key != nil && ref.Context.Key.Value.Substitution != nil {
+				var resolved *Field
+				m := vars
+				for _, p := range ref.Context.Key.Value.Substitution.Path {
+					r := m.Map().GetField(p.Unbox().ScalarString())
+					if r == nil {
+						resolved = nil
+						break
+					}
+					m = r
+					resolved = r
+				}
+				if resolved == nil {
+					c.errorf(ref.Context.Key, "could not resolve variable %s", strings.Join(ref.Context.Key.Value.Substitution.IDA(), "."))
+				} else {
+					// TODO do i need this
+					// ref.Context.Key.Value = d2ast.MakeValueBox(resolved.Primary().Value)
+
+					// TODO maps
+					f.Primary_ = &Scalar{
+						parent: f,
+						Value:  resolved.Primary().Value,
+					}
+				}
+				ref.Context.Key.Value.Substitution = nil
+			}
+		}
+	}
+}
+
+func (c *compiler) compileVars(m *Map) {
+	vars := m.GetField("vars")
+	if vars == nil || vars.Map() == nil {
+		return
+	}
+
+	layersField := m.GetField("layers")
+	if layersField == nil {
+		return
+	}
+	layers := layersField.Map()
+	if layers == nil {
+		return
+	}
+
+	for _, lf := range layers.Fields {
+		if lf.Map() == nil || lf.Primary() != nil {
+			c.errorf(lf.References[0].Context.Key, "invalid layer")
+			continue
+		}
+		l := lf.Map()
+		lVars := l.GetField("vars")
+
+		if lVars == nil {
+			lVars = vars.Copy(l).(*Field)
+			l.Fields = append(l.Fields, lVars)
+		} else {
+			base := vars.Copy(l).(*Field)
+			OverlayMap(base.Map(), lVars.Map())
+			l.DeleteField("vars")
+			l.Fields = append(l.Fields, base)
+		}
+
+		c.compileVars(l)
+	}
+}
+
 func (c *compiler) overlay(base *Map, f *Field) {
 	if f.Map() == nil || f.Primary() != nil {
 		c.errorf(f.References[0].Context.Key, "invalid %s", NodeBoardKind(f))
@@ -244,6 +321,10 @@ func (c *compiler) compileField(dst *Map, kp *d2ast.KeyPath, refctx *RefContext)
 				c.compileClasses(f.Map())
 			}
 		}
+	} else if refctx.Key.Value.Substitution != nil {
+		// b, _ := json.MarshalIndent(refctx.Key.Value.Substitution.IDA(), "", "  ")
+		// println("\033[1;31m--- DEBUG:", string(b), "\033[m")
+		// println("\033[1;31m--- DEBUG:", "=======what===============", "\033[m")
 	} else if refctx.Key.Value.ScalarBox().Unbox() != nil {
 		// If the link is a board, we need to transform it into an absolute path.
 		if f.Name == "link" {
diff --git a/d2parser/parse.go b/d2parser/parse.go
index fa64531a3..490505e4d 100644
--- a/d2parser/parse.go
+++ b/d2parser/parse.go
@@ -1596,6 +1596,9 @@ func (p *parser) parseValue() d2ast.ValueBox {
 	case '@':
 		box.Import = p.parseImport(false)
 		return box
+	case '$':
+		box.Substitution = p.parseSubstitution(false)
+		return box
 	}
 
 	p.replay(r)
diff --git a/testdata/d2compiler/TestCompile2/vars/basic/label.exp.json b/testdata/d2compiler/TestCompile2/vars/basic/label.exp.json
new file mode 100644
index 000000000..0270f685c
--- /dev/null
+++ b/testdata/d2compiler/TestCompile2/vars/basic/label.exp.json
@@ -0,0 +1,168 @@
+{
+  "graph": {
+    "name": "",
+    "isFolderOnly": false,
+    "ast": {
+      "range": "d2/testdata/d2compiler/TestCompile2/vars/basic/label.d2,0:0:0-5:0:34",
+      "nodes": [
+        {
+          "map_key": {
+            "range": "d2/testdata/d2compiler/TestCompile2/vars/basic/label.d2,1:0:1-3:1:24",
+            "key": {
+              "range": "d2/testdata/d2compiler/TestCompile2/vars/basic/label.d2,1:0:1-1:4:5",
+              "path": [
+                {
+                  "unquoted_string": {
+                    "range": "d2/testdata/d2compiler/TestCompile2/vars/basic/label.d2,1:0:1-1:4:5",
+                    "value": [
+                      {
+                        "string": "vars",
+                        "raw_string": "vars"
+                      }
+                    ]
+                  }
+                }
+              ]
+            },
+            "primary": {},
+            "value": {
+              "map": {
+                "range": "d2/testdata/d2compiler/TestCompile2/vars/basic/label.d2,1:6:7-3:1:24",
+                "nodes": [
+                  {
+                    "map_key": {
+                      "range": "d2/testdata/d2compiler/TestCompile2/vars/basic/label.d2,2:2:11-2:13:22",
+                      "key": {
+                        "range": "d2/testdata/d2compiler/TestCompile2/vars/basic/label.d2,2:2:11-2:3:12",
+                        "path": [
+                          {
+                            "unquoted_string": {
+                              "range": "d2/testdata/d2compiler/TestCompile2/vars/basic/label.d2,2:2:11-2:3:12",
+                              "value": [
+                                {
+                                  "string": "x",
+                                  "raw_string": "x"
+                                }
+                              ]
+                            }
+                          }
+                        ]
+                      },
+                      "primary": {},
+                      "value": {
+                        "unquoted_string": {
+                          "range": "d2/testdata/d2compiler/TestCompile2/vars/basic/label.d2,2:5:14-2:13:22",
+                          "value": [
+                            {
+                              "string": "im a var",
+                              "raw_string": "im a var"
+                            }
+                          ]
+                        }
+                      }
+                    }
+                  }
+                ]
+              }
+            }
+          }
+        },
+        {
+          "map_key": {
+            "range": "d2/testdata/d2compiler/TestCompile2/vars/basic/label.d2,4:0:25-4:8:33",
+            "key": {
+              "range": "d2/testdata/d2compiler/TestCompile2/vars/basic/label.d2,4:0:25-4:2:27",
+              "path": [
+                {
+                  "unquoted_string": {
+                    "range": "d2/testdata/d2compiler/TestCompile2/vars/basic/label.d2,4:0:25-4:2:27",
+                    "value": [
+                      {
+                        "string": "hi",
+                        "raw_string": "hi"
+                      }
+                    ]
+                  }
+                }
+              ]
+            },
+            "primary": {},
+            "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": "hi",
+        "id_val": "hi",
+        "references": [
+          {
+            "key": {
+              "range": "d2/testdata/d2compiler/TestCompile2/vars/basic/label.d2,4:0:25-4:2:27",
+              "path": [
+                {
+                  "unquoted_string": {
+                    "range": "d2/testdata/d2compiler/TestCompile2/vars/basic/label.d2,4:0:25-4:2:27",
+                    "value": [
+                      {
+                        "string": "hi",
+                        "raw_string": "hi"
+                      }
+                    ]
+                  }
+                }
+              ]
+            },
+            "key_path_index": 0,
+            "map_key_edge_index": -1
+          }
+        ],
+        "attributes": {
+          "label": {
+            "value": "im a var"
+          },
+          "labelDimensions": {
+            "width": 0,
+            "height": 0
+          },
+          "style": {},
+          "near_key": null,
+          "shape": {
+            "value": "rectangle"
+          },
+          "direction": {
+            "value": ""
+          },
+          "constraint": null
+        },
+        "zIndex": 0
+      }
+    ]
+  },
+  "err": null
+}
diff --git a/testdata/d2compiler/TestCompile2/vars/errors/missing.exp.json b/testdata/d2compiler/TestCompile2/vars/errors/missing.exp.json
new file mode 100644
index 000000000..64d495784
--- /dev/null
+++ b/testdata/d2compiler/TestCompile2/vars/errors/missing.exp.json
@@ -0,0 +1,11 @@
+{
+  "graph": null,
+  "err": {
+    "errs": [
+      {
+        "range": "d2/testdata/d2compiler/TestCompile2/vars/errors/missing.d2,4:0:20-4:8:28",
+        "errmsg": "d2/testdata/d2compiler/TestCompile2/vars/errors/missing.d2:5:1: could not resolve variable z"
+      }
+    ]
+  }
+}