diff --git a/packages/bruno-app/src/components/FolderSettings/Vars/StyledWrapper.js b/packages/bruno-app/src/components/FolderSettings/Vars/StyledWrapper.js
new file mode 100644
index 000000000..44b01b464
--- /dev/null
+++ b/packages/bruno-app/src/components/FolderSettings/Vars/StyledWrapper.js
@@ -0,0 +1,9 @@
+import styled from 'styled-components';
+
+const StyledWrapper = styled.div`
+  div.title {
+    color: var(--color-tab-inactive);
+  }
+`;
+
+export default StyledWrapper;
diff --git a/packages/bruno-app/src/components/FolderSettings/Vars/VarsTable/StyledWrapper.js b/packages/bruno-app/src/components/FolderSettings/Vars/VarsTable/StyledWrapper.js
new file mode 100644
index 000000000..efacc8288
--- /dev/null
+++ b/packages/bruno-app/src/components/FolderSettings/Vars/VarsTable/StyledWrapper.js
@@ -0,0 +1,56 @@
+import styled from 'styled-components';
+
+const Wrapper = styled.div`
+  table {
+    width: 100%;
+    border-collapse: collapse;
+    font-weight: 600;
+    table-layout: fixed;
+
+    thead,
+    td {
+      border: 1px solid ${(props) => props.theme.table.border};
+    }
+
+    thead {
+      color: ${(props) => props.theme.table.thead.color};
+      font-size: 0.8125rem;
+      user-select: none;
+    }
+    td {
+      padding: 6px 10px;
+
+      &:nth-child(1) {
+        width: 30%;
+      }
+
+      &:nth-child(3) {
+        width: 70px;
+      }
+    }
+  }
+
+  .btn-add-var {
+    font-size: 0.8125rem;
+  }
+
+  input[type='text'] {
+    width: 100%;
+    border: solid 1px transparent;
+    outline: none !important;
+    background-color: inherit;
+
+    &:focus {
+      outline: none !important;
+      border: solid 1px transparent;
+    }
+  }
+
+  input[type='checkbox'] {
+    cursor: pointer;
+    position: relative;
+    top: 1px;
+  }
+`;
+
+export default Wrapper;
diff --git a/packages/bruno-app/src/components/FolderSettings/Vars/VarsTable/index.js b/packages/bruno-app/src/components/FolderSettings/Vars/VarsTable/index.js
new file mode 100644
index 000000000..dcd84d73c
--- /dev/null
+++ b/packages/bruno-app/src/components/FolderSettings/Vars/VarsTable/index.js
@@ -0,0 +1,161 @@
+import React from 'react';
+import cloneDeep from 'lodash/cloneDeep';
+import { IconTrash } from '@tabler/icons';
+import { useDispatch } from 'react-redux';
+import { useTheme } from 'providers/Theme';
+import { saveFolderRoot } from 'providers/ReduxStore/slices/collections/actions';
+import SingleLineEditor from 'components/SingleLineEditor';
+import Tooltip from 'components/Tooltip';
+import StyledWrapper from './StyledWrapper';
+import toast from 'react-hot-toast';
+import { variableNameRegex } from 'utils/common/regex';
+import { addFolderVar, deleteFolderVar, updateFolderVar } from 'providers/ReduxStore/slices/collections/index';
+
+const VarsTable = ({ folder, collection, vars, varType }) => {
+  const dispatch = useDispatch();
+  const { storedTheme } = useTheme();
+
+  const addVar = () => {
+    dispatch(
+      addFolderVar({
+        collectionUid: collection.uid,
+        folderUid: folder.uid,
+        type: varType
+      })
+    );
+  };
+
+  const onSave = () => dispatch(saveFolderRoot(collection.uid, folder.uid));
+  const handleVarChange = (e, v, type) => {
+    const _var = cloneDeep(v);
+    switch (type) {
+      case 'name': {
+        const value = e.target.value;
+
+        if (variableNameRegex.test(value) === false) {
+          toast.error(
+            'Variable contains invalid characters! Variables must only contain alpha-numeric characters, "-", "_", "."'
+          );
+          return;
+        }
+
+        _var.name = value;
+        break;
+      }
+      case 'value': {
+        _var.value = e.target.value;
+        break;
+      }
+      case 'enabled': {
+        _var.enabled = e.target.checked;
+        break;
+      }
+    }
+    dispatch(
+      updateFolderVar({
+        type: varType,
+        var: _var,
+        folderUid: folder.uid,
+        collectionUid: collection.uid
+      })
+    );
+  };
+
+  const handleRemoveVar = (_var) => {
+    dispatch(
+      deleteFolderVar({
+        type: varType,
+        varUid: _var.uid,
+        folderUid: folder.uid,
+        collectionUid: collection.uid
+      })
+    );
+  };
+
+  return (
+    <StyledWrapper className="w-full">
+      <table>
+        <thead>
+          <tr>
+            <td>Name</td>
+            {varType === 'request' ? (
+              <td>
+                <div className="flex items-center">
+                  <span>Value</span>
+                  <Tooltip text="You can write any valid JS Template Literal here" tooltipId="request-var" />
+                </div>
+              </td>
+            ) : (
+              <td>
+                <div className="flex items-center">
+                  <span>Expr</span>
+                  <Tooltip text="You can write any valid JS expression here" tooltipId="response-var" />
+                </div>
+              </td>
+            )}
+            <td></td>
+          </tr>
+        </thead>
+        <tbody>
+          {vars && vars.length
+            ? vars.map((_var) => {
+                return (
+                  <tr key={_var.uid}>
+                    <td>
+                      <input
+                        type="text"
+                        autoComplete="off"
+                        autoCorrect="off"
+                        autoCapitalize="off"
+                        spellCheck="false"
+                        value={_var.name}
+                        className="mousetrap"
+                        onChange={(e) => handleVarChange(e, _var, 'name')}
+                      />
+                    </td>
+                    <td>
+                      <SingleLineEditor
+                        value={_var.value}
+                        theme={storedTheme}
+                        onSave={onSave}
+                        onChange={(newValue) =>
+                          handleVarChange(
+                            {
+                              target: {
+                                value: newValue
+                              }
+                            },
+                            _var,
+                            'value'
+                          )
+                        }
+                        collection={collection}
+                      />
+                    </td>
+                    <td>
+                      <div className="flex items-center">
+                        <input
+                          type="checkbox"
+                          checked={_var.enabled}
+                          tabIndex="-1"
+                          className="mr-3 mousetrap"
+                          onChange={(e) => handleVarChange(e, _var, 'enabled')}
+                        />
+                        <button tabIndex="-1" onClick={() => handleRemoveVar(_var)}>
+                          <IconTrash strokeWidth={1.5} size={20} />
+                        </button>
+                      </div>
+                    </td>
+                  </tr>
+                );
+              })
+            : null}
+        </tbody>
+      </table>
+      <button className="btn-add-var text-link pr-2 py-3 mt-2 select-none" onClick={addVar}>
+        + Add
+      </button>
+    </StyledWrapper>
+  );
+};
+export default VarsTable;
diff --git a/packages/bruno-app/src/components/FolderSettings/Vars/index.js b/packages/bruno-app/src/components/FolderSettings/Vars/index.js
new file mode 100644
index 000000000..8f9cab4d2
--- /dev/null
+++ b/packages/bruno-app/src/components/FolderSettings/Vars/index.js
@@ -0,0 +1,32 @@
+import React from 'react';
+import get from 'lodash/get';
+import VarsTable from './VarsTable';
+import StyledWrapper from './StyledWrapper';
+import { saveFolderRoot } from 'providers/ReduxStore/slices/collections/actions';
+import { useDispatch } from 'react-redux';
+
+const Vars = ({ collection, folder }) => {
+  const dispatch = useDispatch();
+  const requestVars = get(folder, 'root.request.vars.req', []);
+  const responseVars = get(folder, 'root.request.vars.res', []);
+  const handleSave = () => dispatch(saveFolderRoot(collection.uid, folder.uid));
+  return (
+    <StyledWrapper className="w-full flex flex-col">
+      <div className="flex-1 mt-2">
+        <div className="mb-1 title text-xs">Pre Request</div>
+        <VarsTable folder={folder} collection={collection} vars={requestVars} varType="request" />
+      </div>
+      <div className="flex-1">
+        <div className="mt-1 mb-1 title text-xs">Post Response</div>
+        <VarsTable folder={folder} collection={collection} vars={responseVars} varType="response" />
+      </div>
+      <div className="mt-6">
+        <button type="submit" className="submit btn btn-sm btn-secondary" onClick={handleSave}>
+          Save
+        </button>
+      </div>
+    </StyledWrapper>
+  );
+};
+
+export default Vars;
diff --git a/packages/bruno-app/src/components/FolderSettings/index.js b/packages/bruno-app/src/components/FolderSettings/index.js
index 233cd1139..6dcd9cfd2 100644
--- a/packages/bruno-app/src/components/FolderSettings/index.js
+++ b/packages/bruno-app/src/components/FolderSettings/index.js
@@ -6,6 +6,7 @@ import Headers from './Headers';
 import Script from './Script';
 import Tests from './Tests';
 import StyledWrapper from './StyledWrapper';
+import Vars from './Vars';
 
 const FolderSettings = ({ collection, folder }) => {
   const dispatch = useDispatch();
@@ -36,6 +37,9 @@ const FolderSettings = ({ collection, folder }) => {
       case 'test': {
         return <Tests collection={collection} folder={folder} />;
       }
+      case 'vars': {
+        return <Vars collection={collection} folder={folder} />;
+      }
     }
   };
 
@@ -58,6 +62,9 @@ const FolderSettings = ({ collection, folder }) => {
           <div className={getTabClassname('test')} role="tab" onClick={() => setTab('test')}>
             Test
           </div>
+          <div className={getTabClassname('vars')} role="tab" onClick={() => setTab('vars')}>
+            Vars
+          </div>
         </div>
         <section className={`flex mt-4 h-full`}>{getTabPanel(tab)}</section>
       </div>
diff --git a/packages/bruno-app/src/providers/ReduxStore/slices/collections/index.js b/packages/bruno-app/src/providers/ReduxStore/slices/collections/index.js
index ac54e6701..90927fa8e 100644
--- a/packages/bruno-app/src/providers/ReduxStore/slices/collections/index.js
+++ b/packages/bruno-app/src/providers/ReduxStore/slices/collections/index.js
@@ -1168,6 +1168,78 @@ export const collectionsSlice = createSlice({
         set(folder, 'root.request.headers', headers);
       }
     },
+    addFolderVar: (state, action) => {
+      const collection = findCollectionByUid(state.collections, action.payload.collectionUid);
+      const folder = collection ? findItemInCollection(collection, action.payload.folderUid) : null;
+      const type = action.payload.type;
+      if (folder) {
+        if (type === 'request') {
+          const vars = get(folder, 'root.request.vars.req', []);
+          vars.push({
+            uid: uuid(),
+            name: '',
+            value: '',
+            type: 'request',
+            enabled: true
+          });
+          set(folder, 'root.request.vars.req', vars);
+        } else if (type === 'response') {
+          const vars = get(folder, 'root.request.vars.res', []);
+          vars.push({
+            uid: uuid(),
+            name: '',
+            value: '',
+            type: 'response',
+            enabled: true
+          });
+          set(folder, 'root.request.vars.res', vars);
+        }
+      }
+    },
+    updateFolderVar: (state, action) => {
+      const collection = findCollectionByUid(state.collections, action.payload.collectionUid);
+      const folder = collection ? findItemInCollection(collection, action.payload.folderUid) : null;
+      const type = action.payload.type;
+      if (folder) {
+        if (type === 'request') {
+          let vars = get(folder, 'root.request.vars.req', []);
+          const _var = find(vars, (h) => h.uid === action.payload.var.uid);
+          if (_var) {
+            _var.name = action.payload.var.name;
+            _var.value = action.payload.var.value;
+            _var.description = action.payload.var.description;
+            _var.enabled = action.payload.var.enabled;
+          }
+          set(folder, 'root.request.vars.req', vars);
+        } else if (type === 'response') {
+          let vars = get(folder, 'root.request.vars.res', []);
+          const _var = find(vars, (h) => h.uid === action.payload.var.uid);
+          if (_var) {
+            _var.name = action.payload.var.name;
+            _var.value = action.payload.var.value;
+            _var.description = action.payload.var.description;
+            _var.enabled = action.payload.var.enabled;
+          }
+          set(folder, 'root.request.vars.res', vars);
+        }
+      }
+    },
+    deleteFolderVar: (state, action) => {
+      const collection = findCollectionByUid(state.collections, action.payload.collectionUid);
+      const folder = collection ? findItemInCollection(collection, action.payload.folderUid) : null;
+      const type = action.payload.type;
+      if (folder) {
+        if (type === 'request') {
+          let vars = get(folder, 'root.request.vars.req', []);
+          vars = filter(vars, (h) => h.uid !== action.payload.varUid);
+          set(folder, 'root.request.vars.req', vars);
+        } else if (type === 'response') {
+          let vars = get(folder, 'root.request.vars.res', []);
+          vars = filter(vars, (h) => h.uid !== action.payload.varUid);
+          set(folder, 'root.request.vars.res', vars);
+        }
+      }
+    },
     updateFolderRequestScript: (state, action) => {
       const collection = findCollectionByUid(state.collections, action.payload.collectionUid);
       const folder = collection ? findItemInCollection(collection, action.payload.folderUid) : null;
@@ -1609,6 +1681,9 @@ export const {
   addFolderHeader,
   updateFolderHeader,
   deleteFolderHeader,
+  addFolderVar,
+  updateFolderVar,
+  deleteFolderVar,
   updateFolderRequestScript,
   updateFolderResponseScript,
   updateFolderTests,
diff --git a/packages/bruno-electron/src/bru/index.js b/packages/bruno-electron/src/bru/index.js
index 84d2e3099..07041b93b 100644
--- a/packages/bruno-electron/src/bru/index.js
+++ b/packages/bruno-electron/src/bru/index.js
@@ -52,7 +52,7 @@ const jsonToCollectionBru = (json) => {
       },
       vars: {
         req: _.get(json, 'request.vars.req', []),
-        res: _.get(json, 'request.vars.req', [])
+        res: _.get(json, 'request.vars.res', [])
       },
       tests: _.get(json, 'request.tests', ''),
       docs: _.get(json, 'docs', '')
diff --git a/packages/bruno-electron/src/ipc/network/index.js b/packages/bruno-electron/src/ipc/network/index.js
index 6ebb8071c..f4223c2a7 100644
--- a/packages/bruno-electron/src/ipc/network/index.js
+++ b/packages/bruno-electron/src/ipc/network/index.js
@@ -418,7 +418,7 @@ const registerNetworkIpc = (mainWindow) => {
 
     // run post-response script
     let scriptResult;
-    const responseScript = compact([get(collectionRoot, 'request.script.res'), get(request, 'script.res')]).join(
+    const responseScript = compact([get(request, 'script.res'), get(collectionRoot, 'request.script.res')]).join(
       os.EOL
     );
     if (responseScript?.length) {
@@ -602,8 +602,8 @@ const registerNetworkIpc = (mainWindow) => {
 
       // run tests
       const testFile = compact([
-        get(collectionRoot, 'request.tests'),
-        item.draft ? get(item.draft, 'request.tests') : get(item, 'request.tests')
+        item.draft ? get(item.draft, 'request.tests') : get(item, 'request.tests'),
+        get(collectionRoot, 'request.tests')
       ]).join(os.EOL);
       if (typeof testFile === 'string') {
         const testRuntime = new TestRuntime();
diff --git a/packages/bruno-electron/src/ipc/network/prepare-request.js b/packages/bruno-electron/src/ipc/network/prepare-request.js
index 08082a251..6f0331c2a 100644
--- a/packages/bruno-electron/src/ipc/network/prepare-request.js
+++ b/packages/bruno-electron/src/ipc/network/prepare-request.js
@@ -18,6 +18,13 @@ const mergeFolderLevelHeaders = (request, requestTreePath) => {
           folderHeaders.set(header.name, header.value);
         }
       });
+    } else {
+      let headers = get(i, 'request.headers', []);
+      headers.forEach((header) => {
+        if (header.enabled) {
+          folderHeaders.set(header.name, header.value);
+        }
+      });
     }
   }
 
@@ -38,10 +45,84 @@ const mergeFolderLevelHeaders = (request, requestTreePath) => {
   request.headers = Array.from(requestHeadersMap, ([name, value]) => ({ name, value, enabled: true }));
 };
 
+const mergeFolderLevelVars = (request, requestTreePath) => {
+  let folderReqVars = new Map();
+  for (let i of requestTreePath) {
+    if (i.type === 'folder') {
+      let vars = get(i, 'root.request.vars.req', []);
+      vars.forEach((_var) => {
+        if (_var.enabled) {
+          folderReqVars.set(_var.name, _var.value);
+        }
+      });
+    } else {
+      let vars = get(i, 'request.vars.req', []);
+      vars.forEach((_var) => {
+        if (_var.enabled) {
+          folderReqVars.set(_var.name, _var.value);
+        }
+      });
+    }
+  }
+  let mergedFolderReqVars = Array.from(folderReqVars, ([name, value]) => ({ name, value, enabled: true }));
+  let requestReqVars = request?.vars?.req || [];
+  let requestReqVarsMap = new Map();
+  for (let _var of requestReqVars) {
+    if (_var.enabled) {
+      requestReqVarsMap.set(_var.name, _var.value);
+    }
+  }
+  mergedFolderReqVars.forEach((_var) => {
+    requestReqVarsMap.set(_var.name, _var.value);
+  });
+  request.vars.req = Array.from(requestReqVarsMap, ([name, value]) => ({
+    name,
+    value,
+    enabled: true,
+    type: 'request'
+  }));
+
+  let folderResVars = new Map();
+  for (let i of requestTreePath) {
+    if (i.type === 'folder') {
+      let vars = get(i, 'root.request.vars.res', []);
+      vars.forEach((_var) => {
+        if (_var.enabled) {
+          folderResVars.set(_var.name, _var.value);
+        }
+      });
+    } else {
+      let vars = get(i, 'request.vars.res', []);
+      vars.forEach((_var) => {
+        if (_var.enabled) {
+          folderResVars.set(_var.name, _var.value);
+        }
+      });
+    }
+  }
+  let mergedFolderResVars = Array.from(folderResVars, ([name, value]) => ({ name, value, enabled: true }));
+  let requestResVars = request?.vars?.res || [];
+  let requestResVarsMap = new Map();
+  for (let _var of requestResVars) {
+    if (_var.enabled) {
+      requestResVarsMap.set(_var.name, _var.value);
+    }
+  }
+  mergedFolderResVars.forEach((_var) => {
+    requestResVarsMap.set(_var.name, _var.value);
+  });
+  request.vars.res = Array.from(requestResVarsMap, ([name, value]) => ({
+    name,
+    value,
+    enabled: true,
+    type: 'response'
+  }));
+};
+
 const mergeFolderLevelScripts = (request, requestTreePath) => {
   let folderCombinedPreReqScript = [];
   let folderCombinedPostResScript = [];
-  let folderCombinedTests = [];
+  let folderCombinedTests = '';
   for (let i of requestTreePath) {
     if (i.type === 'folder') {
       let preReqScript = get(i, 'root.request.script.req', '');
@@ -54,16 +135,15 @@ const mergeFolderLevelScripts = (request, requestTreePath) => {
         folderCombinedPostResScript.push(postResScript);
       }
 
-      let tests = get(i, 'root.request.tests', []);
-      if (tests && tests?.trim() !== '') {
-        folderCombinedTests.push(tests);
+      let tests = get(i, 'root.request.tests', '');
+      if (tests?.trim?.() !== '') {
+        folderCombinedTests = `${folderCombinedTests} \n ${tests} \n`;
       }
     }
   }
 
   if (folderCombinedPreReqScript.length) {
     request.script.req = compact([...folderCombinedPreReqScript, request?.script?.req || '']).join(os.EOL);
-    console.log('request.script.req', request.script.req);
   }
 
   if (folderCombinedPostResScript.length) {
@@ -71,7 +151,7 @@ const mergeFolderLevelScripts = (request, requestTreePath) => {
   }
 
   if (folderCombinedTests.length) {
-    request.tests = compact([request?.tests || '', ...folderCombinedTests.reverse()]).join(os.EOL);
+    request.tests = `${request?.tests} \n ${folderCombinedTests}`;
   }
 };
 
@@ -225,6 +305,7 @@ const prepareRequest = (item, collection) => {
   if (requestTreePath && requestTreePath.length > 0) {
     mergeFolderLevelHeaders(request, requestTreePath);
     mergeFolderLevelScripts(request, requestTreePath);
+    mergeFolderLevelVars(request, requestTreePath);
   }
 
   each(request.headers, (h) => {
diff --git a/packages/bruno-electron/tests/network/prepare-request.spec.js b/packages/bruno-electron/tests/network/prepare-request.spec.js
index 833f58310..e3441953b 100644
--- a/packages/bruno-electron/tests/network/prepare-request.spec.js
+++ b/packages/bruno-electron/tests/network/prepare-request.spec.js
@@ -7,14 +7,14 @@ describe('prepare-request: prepareRequest', () => {
     it('If request body is valid JSON', async () => {
       const body = { mode: 'json', json: '{\n"test": "{{someVar}}" // comment\n}' };
       const expected = { test: '{{someVar}}' };
-      const result = prepareRequest({ body });
+      const result = prepareRequest({ request: { body } }, {});
       expect(result.data).toEqual(expected);
     });
 
     it('If request body is not valid JSON', async () => {
       const body = { mode: 'json', json: '{\n"test": {{someVar}} // comment\n}' };
       const expected = '{\n"test": {{someVar}} \n}';
-      const result = prepareRequest({ body });
+      const result = prepareRequest({ request: { body } }, {});
       expect(result.data).toEqual(expected);
     });
   });