diff --git a/packages/grafana-data/src/index.ts b/packages/grafana-data/src/index.ts
index 631b4374ab6..2a190301d1d 100644
--- a/packages/grafana-data/src/index.ts
+++ b/packages/grafana-data/src/index.ts
@@ -814,7 +814,11 @@ export {
 export {
   type Action,
   type ActionModel,
+  type ActionVariable,
+  type ActionVariableInput,
+  ActionType,
   HttpRequestMethod,
+  ActionVariableType,
   defaultActionConfig,
   contentTypeOptions,
   httpMethodOptions,
diff --git a/packages/grafana-data/src/types/action.ts b/packages/grafana-data/src/types/action.ts
index 06a61e53ecd..3a637ffa071 100644
--- a/packages/grafana-data/src/types/action.ts
+++ b/packages/grafana-data/src/types/action.ts
@@ -1,4 +1,4 @@
-import { CSSProperties } from 'react';
+import { CSSProperties, ReactNode } from 'react';
 
 import { SelectableValue } from './select';
 
@@ -18,6 +18,7 @@ export interface Action {
   [ActionType.Fetch]: FetchOptions;
   confirmation?: string;
   oneClick?: boolean;
+  variables?: ActionVariable[];
   style?: ActionButtonCssProperties;
 }
 
@@ -26,10 +27,21 @@ export interface Action {
  */
 export interface ActionModel<T = any> {
   title: string;
-  onClick: (event: any, origin?: any) => void;
-  confirmation?: string;
+  onClick: (event: any, origin?: any, actionVars?: ActionVariableInput) => void;
+  confirmation: (actionVars?: ActionVariableInput) => ReactNode;
   oneClick?: boolean;
   style: ActionButtonCssProperties;
+  variables?: ActionVariable[];
+}
+
+export type ActionVariable = {
+  key: string;
+  name: string;
+  type: ActionVariableType;
+};
+
+export enum ActionVariableType {
+  String = 'string',
 }
 
 interface FetchOptions {
@@ -70,3 +82,5 @@ export const defaultActionConfig: Action = {
     headers: [['Content-Type', 'application/json']],
   },
 };
+
+export type ActionVariableInput = { [key: string]: string };
diff --git a/packages/grafana-ui/src/components/Actions/ActionButton.tsx b/packages/grafana-ui/src/components/Actions/ActionButton.tsx
index 9d2987dc47d..55b8d3baf32 100644
--- a/packages/grafana-ui/src/components/Actions/ActionButton.tsx
+++ b/packages/grafana-ui/src/components/Actions/ActionButton.tsx
@@ -1,12 +1,14 @@
 import { useState } from 'react';
 
-import { ActionModel, Field } from '@grafana/data';
+import { ActionModel, Field, ActionVariableInput } from '@grafana/data';
 
 import { useTheme2 } from '../../themes';
 import { t } from '../../utils/i18n';
 import { Button, ButtonProps } from '../Button';
 import { ConfirmModal } from '../ConfirmModal/ConfirmModal';
 
+import { VariablesInputModal } from './VariablesInputModal';
+
 type ActionButtonProps = ButtonProps & {
   action: ActionModel<Field>;
 };
@@ -21,27 +23,52 @@ export function ActionButton({ action, ...buttonProps }: ActionButtonProps) {
 
   const [showConfirm, setShowConfirm] = useState(false);
 
+  // Action variables
+  const [showVarsModal, setShowVarsModal] = useState(false);
+  const [actionVars, setActionVars] = useState<ActionVariableInput>({});
+
+  const actionHasVariables = action.variables && action.variables.length > 0;
+
+  const onClick = () => {
+    if (actionHasVariables) {
+      setShowVarsModal(true);
+    } else {
+      setShowConfirm(true);
+    }
+  };
+
   return (
     <>
       <Button
         variant="primary"
         size="sm"
-        onClick={() => setShowConfirm(true)}
+        onClick={onClick}
         {...buttonProps}
         style={{ width: 'fit-content', backgroundColor, color: textColor }}
       >
         {action.title}
       </Button>
+
+      {actionHasVariables && showVarsModal && (
+        <VariablesInputModal
+          onDismiss={() => setShowVarsModal(false)}
+          action={action}
+          onShowConfirm={() => setShowConfirm(true)}
+          variables={actionVars}
+          setVariables={setActionVars}
+        />
+      )}
+
       {showConfirm && (
         <ConfirmModal
           isOpen={true}
           title={t('grafana-ui.action-editor.button.confirm-action', 'Confirm action')}
-          body={action.confirmation}
+          body={action.confirmation(actionVars)}
           confirmText={t('grafana-ui.action-editor.button.confirm', 'Confirm')}
           confirmButtonVariant="primary"
           onConfirm={() => {
             setShowConfirm(false);
-            action.onClick(new MouseEvent('click'));
+            action.onClick(new MouseEvent('click'), null, actionVars);
           }}
           onDismiss={() => {
             setShowConfirm(false);
diff --git a/packages/grafana-ui/src/components/Actions/VariablesInputModal.tsx b/packages/grafana-ui/src/components/Actions/VariablesInputModal.tsx
new file mode 100644
index 00000000000..73be7916e72
--- /dev/null
+++ b/packages/grafana-ui/src/components/Actions/VariablesInputModal.tsx
@@ -0,0 +1,72 @@
+import { css } from '@emotion/css';
+
+import { ActionModel, ActionVariableInput } from '@grafana/data';
+
+import { useStyles2 } from '../../themes';
+import { t } from '../../utils/i18n';
+import { Button } from '../Button/Button';
+import { Field } from '../Forms/Field';
+import { FieldSet } from '../Forms/FieldSet';
+import { Input } from '../Input/Input';
+import { Modal } from '../Modal/Modal';
+
+interface Props {
+  action: ActionModel;
+  onDismiss: () => void;
+  onShowConfirm: () => void;
+  variables: ActionVariableInput;
+  setVariables: (vars: ActionVariableInput) => void;
+}
+
+/**
+ * @internal
+ */
+export function VariablesInputModal({ action, onDismiss, onShowConfirm, variables, setVariables }: Props) {
+  const styles = useStyles2(getStyles);
+
+  const onModalContinue = () => {
+    onDismiss();
+    onShowConfirm();
+  };
+
+  return (
+    <Modal
+      isOpen={true}
+      title={t('grafana-ui.action-editor.button.action-variables-title', 'Action variables')}
+      onDismiss={onDismiss}
+      className={styles.variablesModal}
+    >
+      <FieldSet>
+        {action.variables!.map((variable) => (
+          <Field key={variable.name} label={variable.name}>
+            <Input
+              type="text"
+              value={variables[variable.key] ?? ''}
+              onChange={(e) => {
+                setVariables({ ...variables, [variable.key]: e.currentTarget.value });
+              }}
+              placeholder={t('grafana-ui.action-editor.button.variable-value-placeholder', 'Value')}
+              width={20}
+            />
+          </Field>
+        ))}
+      </FieldSet>
+      <Modal.ButtonRow>
+        <Button variant="secondary" onClick={onDismiss}>
+          {t('grafana-ui.action-editor.close', 'Close')}
+        </Button>
+        <Button variant="primary" onClick={onModalContinue}>
+          {t('grafana-ui.action-editor.continue', 'Continue')}
+        </Button>
+      </Modal.ButtonRow>
+    </Modal>
+  );
+}
+
+const getStyles = () => {
+  return {
+    variablesModal: css({
+      zIndex: 10000,
+    }),
+  };
+};
diff --git a/packages/grafana-ui/src/components/Table/DataLinksActionsTooltip.test.tsx b/packages/grafana-ui/src/components/Table/DataLinksActionsTooltip.test.tsx
index 53bb472f54b..e6918901f2b 100644
--- a/packages/grafana-ui/src/components/Table/DataLinksActionsTooltip.test.tsx
+++ b/packages/grafana-ui/src/components/Table/DataLinksActionsTooltip.test.tsx
@@ -19,6 +19,7 @@ describe('DataLinksActionsTooltip', () => {
   const mockAction: ActionModel = {
     title: 'Action1',
     onClick: jest.fn(),
+    confirmation: jest.fn(),
     style: { backgroundColor: '#ff0000' },
   };
 
diff --git a/packages/grafana-ui/src/components/uPlot/plugins/TooltipPlugin2.tsx b/packages/grafana-ui/src/components/uPlot/plugins/TooltipPlugin2.tsx
index b5b0bcef2c4..649e1a377d2 100644
--- a/packages/grafana-ui/src/components/uPlot/plugins/TooltipPlugin2.tsx
+++ b/packages/grafana-ui/src/components/uPlot/plugins/TooltipPlugin2.tsx
@@ -228,8 +228,11 @@ export const TooltipPlugin2 = ({
 
     // in some ways this is similar to ClickOutsideWrapper.tsx
     const downEventOutside = (e: Event) => {
+      // this tooltip is Portaled, but actions inside it create forms in Modals
+      const isModalOrPortaled = '[role="dialog"], #grafana-portal-container';
+
       // eslint-disable-next-line @typescript-eslint/consistent-type-assertions
-      if (!domRef.current!.contains(e.target as Node)) {
+      if ((e.target as HTMLElement).closest(isModalOrPortaled) == null) {
         dismiss();
       }
     };
diff --git a/public/app/features/actions/ActionEditor.tsx b/public/app/features/actions/ActionEditor.tsx
index b9595c8d16a..9e94c088574 100644
--- a/public/app/features/actions/ActionEditor.tsx
+++ b/public/app/features/actions/ActionEditor.tsx
@@ -1,7 +1,14 @@
 import { css } from '@emotion/css';
 import { memo } from 'react';
 
-import { Action, GrafanaTheme2, httpMethodOptions, HttpRequestMethod, VariableSuggestion } from '@grafana/data';
+import {
+  Action,
+  GrafanaTheme2,
+  httpMethodOptions,
+  HttpRequestMethod,
+  VariableSuggestion,
+  ActionVariable,
+} from '@grafana/data';
 import { useTranslate } from '@grafana/i18n';
 import {
   Switch,
@@ -17,6 +24,7 @@ import {
 
 import { HTMLElementType, SuggestionsInput } from '../transformers/suggestionsInput/SuggestionsInput';
 
+import { ActionVariablesEditor } from './ActionVariablesEditor';
 import { ParamsEditor } from './ParamsEditor';
 
 interface ActionEditorProps {
@@ -75,6 +83,13 @@ export const ActionEditor = memo(({ index, value, onChange, suggestions, showOne
     });
   };
 
+  const onVariablesChange = (variables: ActionVariable[]) => {
+    onChange(index, {
+      ...value,
+      variables,
+    });
+  };
+
   const onQueryParamsChange = (queryParams: Array<[string, string]>) => {
     onChange(index, {
       ...value,
@@ -205,6 +220,14 @@ export const ActionEditor = memo(({ index, value, onChange, suggestions, showOne
         </InlineField>
       </InlineFieldRow>
 
+      <Field
+        label={t('grafana-ui.action-editor.modal.action-variables', 'Variables')}
+        className={styles.fieldGap}
+        noMargin
+      >
+        <ActionVariablesEditor onChange={onVariablesChange} value={value.variables ?? []} />
+      </Field>
+
       <Field
         label={t('grafana-ui.action-editor.modal.action-query-params', 'Query parameters')}
         className={styles.fieldGap}
diff --git a/public/app/features/actions/ActionVariablesEditor.test.tsx b/public/app/features/actions/ActionVariablesEditor.test.tsx
new file mode 100644
index 00000000000..7527b33e27b
--- /dev/null
+++ b/public/app/features/actions/ActionVariablesEditor.test.tsx
@@ -0,0 +1,110 @@
+import { render, screen } from '@testing-library/react';
+import userEvent from '@testing-library/user-event';
+
+import { ActionVariableType } from '@grafana/data';
+
+import { ActionVariablesEditor } from './ActionVariablesEditor';
+
+describe('ActionVariablesEditor', () => {
+  const mockOnChange = jest.fn();
+
+  beforeEach(() => {
+    mockOnChange.mockClear();
+  });
+
+  it('renders empty state correctly', () => {
+    render(<ActionVariablesEditor value={[]} onChange={mockOnChange} />);
+
+    expect(screen.getByPlaceholderText('Key')).toBeInTheDocument();
+    expect(screen.getByPlaceholderText('Name')).toBeInTheDocument();
+    expect(screen.getByPlaceholderText('Type')).toBeInTheDocument();
+    expect(screen.getByRole('button', { name: 'Add' })).toBeDisabled();
+  });
+
+  it('enables add button when both key and name are filled', async () => {
+    render(<ActionVariablesEditor value={[]} onChange={mockOnChange} />);
+
+    const keyInput = screen.getByPlaceholderText('Key');
+    const nameInput = screen.getByPlaceholderText('Name');
+    const addButton = screen.getByRole('button', { name: 'Add' });
+
+    expect(addButton).toBeDisabled();
+
+    await userEvent.type(keyInput, 'testKey');
+    await userEvent.type(nameInput, 'testName');
+
+    expect(addButton).not.toBeDisabled();
+  });
+
+  it('adds a new variable when add button is clicked', async () => {
+    render(<ActionVariablesEditor value={[]} onChange={mockOnChange} />);
+
+    const keyInput = screen.getByPlaceholderText('Key');
+    const nameInput = screen.getByPlaceholderText('Name');
+    const addButton = screen.getByRole('button', { name: 'Add' });
+
+    await userEvent.type(keyInput, 'testKey');
+    await userEvent.type(nameInput, 'testName');
+    await userEvent.click(addButton);
+
+    expect(mockOnChange).toHaveBeenCalledWith([
+      {
+        key: 'testKey',
+        name: 'testName',
+        type: ActionVariableType.String,
+      },
+    ]);
+
+    expect(keyInput).toHaveValue('');
+    expect(nameInput).toHaveValue('');
+  });
+
+  it('removes a variable when delete button is clicked', async () => {
+    const existingVariables = [
+      { key: 'key1', name: 'name1', type: ActionVariableType.String },
+      { key: 'key2', name: 'name2', type: ActionVariableType.String },
+    ];
+
+    render(<ActionVariablesEditor value={existingVariables} onChange={mockOnChange} />);
+
+    const deleteButtons = screen.getAllByRole('button', { name: 'Delete' });
+    await userEvent.click(deleteButtons[0]);
+
+    expect(mockOnChange).toHaveBeenCalledWith([{ key: 'key2', name: 'name2', type: ActionVariableType.String }]);
+  });
+
+  it('sorts variables by key when adding new ones', async () => {
+    const existingVariables = [{ key: 'key2', name: 'name2', type: ActionVariableType.String }];
+
+    render(<ActionVariablesEditor value={existingVariables} onChange={mockOnChange} />);
+
+    const keyInput = screen.getByPlaceholderText('Key');
+    const nameInput = screen.getByPlaceholderText('Name');
+    const addButton = screen.getByRole('button', { name: 'Add' });
+
+    await userEvent.type(keyInput, 'key1');
+    await userEvent.type(nameInput, 'name1');
+    await userEvent.click(addButton);
+
+    expect(mockOnChange).toHaveBeenCalledWith([
+      { key: 'key1', name: 'name1', type: ActionVariableType.String },
+      { key: 'key2', name: 'name2', type: ActionVariableType.String },
+    ]);
+  });
+
+  it('updates existing variable when adding with same key', async () => {
+    const existingVariables = [{ key: 'key1', name: 'oldName', type: ActionVariableType.String }];
+
+    render(<ActionVariablesEditor value={existingVariables} onChange={mockOnChange} />);
+
+    const keyInput = screen.getByPlaceholderText('Key');
+    const nameInput = screen.getByPlaceholderText('Name');
+    const addButton = screen.getByRole('button', { name: 'Add' });
+
+    await userEvent.type(keyInput, 'key1');
+    await userEvent.type(nameInput, 'newName');
+    await userEvent.click(addButton);
+
+    expect(mockOnChange).toHaveBeenCalledWith([{ key: 'key1', name: 'newName', type: ActionVariableType.String }]);
+  });
+});
diff --git a/public/app/features/actions/ActionVariablesEditor.tsx b/public/app/features/actions/ActionVariablesEditor.tsx
new file mode 100644
index 00000000000..7c264b53a6c
--- /dev/null
+++ b/public/app/features/actions/ActionVariablesEditor.tsx
@@ -0,0 +1,107 @@
+import { useState } from 'react';
+
+import { ActionVariable, ActionVariableType } from '@grafana/data';
+import { useTranslate } from '@grafana/i18n';
+import { IconButton, Input, Stack, Combobox, ComboboxOption } from '@grafana/ui';
+
+interface Props {
+  onChange: (v: ActionVariable[]) => void;
+  value: ActionVariable[];
+}
+
+export const ActionVariablesEditor = ({ value, onChange }: Props) => {
+  const [key, setKey] = useState('');
+  const [name, setName] = useState('');
+  const [type, setType] = useState<ActionVariableType>(ActionVariableType.String);
+
+  const { t } = useTranslate();
+
+  const changeKey = (key: string) => {
+    setKey(key);
+  };
+
+  const changeName = (name: string) => {
+    setName(name);
+  };
+
+  const changeType = (type: ComboboxOption) => {
+    // eslint-disable-next-line @typescript-eslint/consistent-type-assertions
+    setType(type.value as ActionVariableType);
+  };
+
+  const addVariable = () => {
+    let newVariables: ActionVariable[];
+
+    if (value) {
+      newVariables = value.filter((e) => e.key !== key);
+    } else {
+      newVariables = [];
+    }
+
+    newVariables.push({ key, name, type });
+    newVariables.sort((a, b) => a.key.localeCompare(b.key));
+    onChange(newVariables);
+
+    setKey('');
+    setName('');
+    setType(ActionVariableType.String);
+  };
+
+  const removeVariable = (key: string) => () => {
+    const updatedVariables = value.filter((variable) => variable.key !== key);
+    onChange(updatedVariables);
+  };
+
+  const isAddButtonDisabled = name === '' || key === '';
+
+  const variableTypeOptions: ComboboxOption[] = [{ label: 'string', value: ActionVariableType.String }];
+
+  return (
+    <div>
+      <Stack direction="row">
+        <Input
+          value={key}
+          onChange={(e) => changeKey(e.currentTarget.value)}
+          placeholder={t('actions.params-editor.placeholder-key', 'Key')}
+          width={300}
+        />
+        <Input
+          value={name}
+          onChange={(e) => changeName(e.currentTarget.value)}
+          placeholder={t('actions.params-editor.placeholder-name', 'Name')}
+          width={300}
+        />
+        <Combobox
+          value={type}
+          onChange={changeType}
+          placeholder={t('actions.variables-editor.placeholder-type', 'Type')}
+          options={variableTypeOptions}
+          maxWidth={100}
+          minWidth={10}
+          width={'auto'}
+        />
+        <IconButton
+          aria-label={t('actions.params-editor.aria-label-add', 'Add')}
+          name="plus-circle"
+          onClick={() => addVariable()}
+          disabled={isAddButtonDisabled}
+        />
+      </Stack>
+
+      <Stack direction="column">
+        {value.map((entry) => (
+          <Stack key={entry.key} direction="row">
+            <Input disabled value={entry.key} width={300} />
+            <Input disabled value={entry.name} width={300} />
+            <Input disabled value={entry.type} width={100} />
+            <IconButton
+              aria-label={t('actions.params-editor.aria-label-delete', 'Delete')}
+              onClick={removeVariable(entry.key)}
+              name="trash-alt"
+            />
+          </Stack>
+        ))}
+      </Stack>
+    </div>
+  );
+};
diff --git a/public/app/features/actions/utils.test.ts b/public/app/features/actions/utils.test.ts
new file mode 100644
index 00000000000..959128f908c
--- /dev/null
+++ b/public/app/features/actions/utils.test.ts
@@ -0,0 +1,151 @@
+import { Action, ActionType, ActionVariableInput, ActionVariableType } from '@grafana/data';
+
+import { HttpRequestMethod } from '../../plugins/panel/canvas/panelcfg.gen';
+
+import { buildActionRequest, genReplaceActionVars } from './utils';
+
+describe('interpolateActionVariables', () => {
+  const actionMock = (): Action => ({
+    title: 'Thermostat Control',
+    type: ActionType.Fetch,
+    variables: [
+      { key: 'thermostat1', name: 'First Floor Thermostat', type: ActionVariableType.String },
+      { key: 'thermostat2', name: 'Second Floor Thermostat', type: ActionVariableType.String },
+    ],
+    fetch: {
+      url: 'http://test.com/api/thermostats/$thermostat1/sync/$thermostat2',
+      method: HttpRequestMethod.POST,
+      body: JSON.stringify({
+        primary: 'Device-$thermostat1',
+        data: {
+          secondary: 'Room-$thermostat2',
+          settings: {
+            syncMode: 'Mode-$thermostat1',
+          },
+        },
+      }),
+      headers: [
+        ['Device-ID', 'Thermostat-$thermostat1'],
+        ['Content-Type', 'application/json'],
+      ],
+      queryParams: [
+        ['primary', 'Device-$thermostat1'],
+        ['secondary', 'Room-$thermostat2'],
+        ['mode', 'sync'],
+      ],
+    },
+  });
+
+  it('should return original action if no variables or actionVars are provided', () => {
+    const action: Action = {
+      title: 'Test',
+      type: ActionType.Fetch,
+      [ActionType.Fetch]: {
+        url: 'http://test.com/api/',
+        method: HttpRequestMethod.GET,
+      },
+    };
+    const actionVars: ActionVariableInput = {};
+
+    const request = buildActionRequest(
+      action,
+      genReplaceActionVars((str) => str, action, actionVars)
+    );
+    expect(request).toEqual({
+      headers: {
+        'X-Grafana-Action': '1',
+      },
+      method: 'GET',
+      url: 'http://test.com/api/',
+    });
+  });
+
+  it('should interpolate variables in URL', () => {
+    const action = actionMock();
+    const actionVars: ActionVariableInput = {
+      thermostat1: 'T-001',
+      thermostat2: 'T-002',
+    };
+
+    const request = buildActionRequest(
+      action,
+      genReplaceActionVars((str) => str, action, actionVars)
+    );
+    expect(request.url).toBe(
+      'http://test.com/api/thermostats/T-001/sync/T-002?primary=Device-T-001&secondary=Room-T-002&mode=sync'
+    );
+  });
+
+  it('should interpolate variables in request body', () => {
+    const action = actionMock();
+    const actionVars: ActionVariableInput = {
+      thermostat1: 'T-001',
+      thermostat2: 'T-002',
+    };
+
+    const request = buildActionRequest(
+      action,
+      genReplaceActionVars((str) => str, action, actionVars)
+    );
+    expect(JSON.parse(request.data)).toEqual({
+      primary: 'Device-T-001',
+      data: {
+        secondary: 'Room-T-002',
+        settings: {
+          syncMode: 'Mode-T-001',
+        },
+      },
+    });
+  });
+
+  it('should interpolate variables in headers', () => {
+    const action = actionMock();
+    const actionVars: ActionVariableInput = {
+      thermostat1: 'T-001',
+      thermostat2: 'T-002',
+    };
+
+    const request = buildActionRequest(
+      action,
+      genReplaceActionVars((str) => str, action, actionVars)
+    );
+    expect(request.headers).toEqual({
+      'Content-Type': 'application/json',
+      'Device-ID': 'Thermostat-T-001',
+      'X-Grafana-Action': '1',
+    });
+  });
+
+  it('should interpolate variables in query params', () => {
+    const action = actionMock();
+    const actionVars: ActionVariableInput = {
+      thermostat1: 'T-001',
+      thermostat2: 'T-002',
+    };
+
+    const request = buildActionRequest(
+      action,
+      genReplaceActionVars((str) => str, action, actionVars)
+    );
+    expect(request.url).toEqual(
+      'http://test.com/api/thermostats/T-001/sync/T-002?primary=Device-T-001&secondary=Room-T-002&mode=sync'
+    );
+  });
+
+  it('should only interpolate provided variables', () => {
+    const action = actionMock();
+    const actionVars: ActionVariableInput = {
+      thermostat1: 'T-001',
+      // thermostat2 is not provided
+    };
+
+    const request = buildActionRequest(
+      action,
+      genReplaceActionVars((str) => str, action, actionVars)
+    );
+    expect(request.url).toBe(
+      'http://test.com/api/thermostats/T-001/sync/$thermostat2?primary=Device-T-001&secondary=Room-%24thermostat2&mode=sync'
+    );
+    expect(JSON.parse(request.data).data.secondary).toBe('Room-$thermostat2');
+  });
+});
diff --git a/public/app/features/actions/utils.ts b/public/app/features/actions/utils.ts
index e8771075178..8c78f5ce6a9 100644
--- a/public/app/features/actions/utils.ts
+++ b/public/app/features/actions/utils.ts
@@ -1,6 +1,7 @@
 import {
   Action,
   ActionModel,
+  ActionVariableInput,
   AppEvents,
   DataContextScopedVar,
   DataFrame,
@@ -13,12 +14,35 @@ import {
   textUtil,
   ValueLinkConfig,
 } from '@grafana/data';
-import { BackendSrvRequest, getBackendSrv, config as grafanaConfig } from '@grafana/runtime';
+import { BackendSrvRequest, config as grafanaConfig, getBackendSrv } from '@grafana/runtime';
 import { appEvents } from 'app/core/core';
 
 import { HttpRequestMethod } from '../../plugins/panel/canvas/panelcfg.gen';
 import { createAbsoluteUrl, RelativeUrl } from '../alerting/unified/utils/url';
 
+/** @internal */
+export const genReplaceActionVars = (
+  boundReplaceVariables: InterpolateFunction,
+  action: Action,
+  actionVars?: ActionVariableInput
+): InterpolateFunction => {
+  return (value, scopedVars, format) => {
+    if (action.variables && actionVars) {
+      value = value.replace(/\$\w+/g, (matched) => {
+        const name = matched.slice(1);
+
+        if (action.variables!.some((action) => action.key === name) && actionVars[name] != null) {
+          return actionVars[name];
+        }
+
+        return matched;
+      });
+    }
+
+    return boundReplaceVariables(value, scopedVars, format);
+  };
+};
+
 /** @internal */
 export const getActions = (
   frame: DataFrame,
@@ -50,22 +74,40 @@ export const getActions = (
       dataContext.value.calculatedValue = config.calculatedValue;
     }
 
-    const title = replaceVariables(action.title, actionScopedVars);
-    const confirmation = replaceVariables(
-      action.confirmation || `Are you sure you want to ${action.title}?`,
-      actionScopedVars
-    );
-
     const actionModel: ActionModel<Field> = {
-      title,
-      confirmation,
-      onClick: (evt: MouseEvent, origin: Field) => {
-        buildActionOnClick(action, boundReplaceVariables);
+      title: replaceVariables(action.title, actionScopedVars),
+      confirmation: (actionVars?: ActionVariableInput) =>
+        genReplaceActionVars(
+          boundReplaceVariables,
+          action,
+          actionVars
+        )(action.confirmation || `Are you sure you want to ${action.title}?`),
+      onClick: (evt: MouseEvent, origin: Field, actionVars?: ActionVariableInput) => {
+        let request = buildActionRequest(action, genReplaceActionVars(boundReplaceVariables, action, actionVars));
+
+        try {
+          getBackendSrv()
+            .fetch(request)
+            .subscribe({
+              error: (error) => {
+                appEvents.emit(AppEvents.alertError, ['An error has occurred. Check console output for more details.']);
+                console.error(error);
+              },
+              complete: () => {
+                appEvents.emit(AppEvents.alertSuccess, ['API call was successful']);
+              },
+            });
+        } catch (error) {
+          appEvents.emit(AppEvents.alertError, ['An error has occurred. Check console output for more details.']);
+          console.error(error);
+          return;
+        }
       },
       oneClick: action.oneClick ?? false,
       style: {
         backgroundColor: action.style?.backgroundColor ?? grafanaConfig.theme2.colors.secondary.main,
       },
+      variables: action.variables,
     };
 
     return actionModel;
@@ -75,52 +117,36 @@ export const getActions = (
 };
 
 /** @internal */
-const buildActionOnClick = (action: Action, replaceVariables: InterpolateFunction) => {
-  try {
-    const url = new URL(getUrl(replaceVariables(action.fetch.url)));
+export const buildActionRequest = (action: Action, replaceVariables: InterpolateFunction) => {
+  const url = new URL(getUrl(replaceVariables(action.fetch.url)));
 
-    const requestHeaders: Record<string, string> = {};
+  const requestHeaders: Record<string, string> = {};
 
-    let request: BackendSrvRequest = {
-      url: url.toString(),
-      method: action.fetch.method,
-      data: getData(action, replaceVariables),
-      headers: requestHeaders,
-    };
+  let request: BackendSrvRequest = {
+    url: url.toString(),
+    method: action.fetch.method,
+    data: getData(action, replaceVariables),
+    headers: requestHeaders,
+  };
 
-    if (action.fetch.headers) {
-      action.fetch.headers.forEach(([name, value]) => {
-        requestHeaders[replaceVariables(name)] = replaceVariables(value);
-      });
-    }
+  if (action.fetch.headers) {
+    action.fetch.headers.forEach(([name, value]) => {
+      requestHeaders[replaceVariables(name)] = replaceVariables(value);
+    });
+  }
 
-    if (action.fetch.queryParams) {
-      action.fetch.queryParams?.forEach(([name, value]) => {
-        url.searchParams.append(replaceVariables(name), replaceVariables(value));
-      });
+  if (action.fetch.queryParams) {
+    action.fetch.queryParams?.forEach(([name, value]) => {
+      url.searchParams.append(replaceVariables(name), replaceVariables(value));
+    });
 
-      request.url = url.toString();
-    }
+    request.url = url.toString();
+  }
 
-    requestHeaders['X-Grafana-Action'] = '1';
-    request.headers = requestHeaders;
+  requestHeaders['X-Grafana-Action'] = '1';
+  request.headers = requestHeaders;
 
-    getBackendSrv()
-      .fetch(request)
-      .subscribe({
-        error: (error) => {
-          appEvents.emit(AppEvents.alertError, ['An error has occurred. Check console output for more details.']);
-          console.error(error);
-        },
-        complete: () => {
-          appEvents.emit(AppEvents.alertSuccess, ['API call was successful']);
-        },
-      });
-  } catch (error) {
-    appEvents.emit(AppEvents.alertError, ['An error has occurred. Check console output for more details.']);
-    console.error(error);
-    return;
-  }
+  return request;
 };
 
 /** @internal */
diff --git a/public/app/features/canvas/runtime/element.tsx b/public/app/features/canvas/runtime/element.tsx
index 9264d6fd985..a94a46c122d 100644
--- a/public/app/features/canvas/runtime/element.tsx
+++ b/public/app/features/canvas/runtime/element.tsx
@@ -752,7 +752,7 @@ export class ElementState implements LayerElement {
           <ConfirmModal
             isOpen={true}
             title={t('grafana-ui.action-editor.button.confirm-action', 'Confirm action')}
-            body={action.confirmation}
+            body={action.confirmation(/** TODO: implement actionVars */)}
             confirmText={t('grafana-ui.action-editor.button.confirm', 'Confirm')}
             confirmButtonVariant="primary"
             onConfirm={() => {
diff --git a/public/locales/en-US/grafana.json b/public/locales/en-US/grafana.json
index 612002cf70d..f80a38f77f9 100644
--- a/public/locales/en-US/grafana.json
+++ b/public/locales/en-US/grafana.json
@@ -57,7 +57,11 @@
       "aria-label-add": "Add",
       "aria-label-delete": "Delete",
       "placeholder-key": "Key",
+      "placeholder-name": "Name",
       "placeholder-value": "Value"
+    },
+    "variables-editor": {
+      "placeholder-type": "Type"
     }
   },
   "admin": {
@@ -5404,10 +5408,14 @@
   "grafana-ui": {
     "action-editor": {
       "button": {
+        "action-variables-title": "Action variables",
         "confirm": "Confirm",
         "confirm-action": "Confirm action",
-        "style": "Button style"
+        "style": "Button style",
+        "variable-value-placeholder": "Value"
       },
+      "close": "Close",
+      "continue": "Continue",
       "inline": {
         "add-action": "Add action",
         "edit-action": "Edit action"
@@ -5418,6 +5426,7 @@
         "action-query-params": "Query parameters",
         "action-title": "Title",
         "action-title-placeholder": "Action title",
+        "action-variables": "Variables",
         "one-click-description": "Only one link or action can have one click enabled at a time"
       }
     },