diff --git a/package.json b/package.json
index aff482298..d7fe00c3f 100644
--- a/package.json
+++ b/package.json
@@ -226,6 +226,12 @@
                 "shortTitle": "%containerApps.editEnvironmentVariableValue.shortTitle%",
                 "category": "Azure Container Apps"
             },
+            {
+                "command": "containerApps.convertEnvironmentVariable",
+                "title": "%containerApps.convertEnvironmentVariable.title%",
+                "shortTitle": "%containerApps.convertEnvironmentVariable.shortTitle%",
+                "category": "Azure Container Apps"
+            },
             {
                 "command": "containerApps.editEnvironmentVariables",
                 "title": "%containerApps.editEnvironmentVariables%",
@@ -522,6 +528,11 @@
                     "when": "view =~ /(azureResourceGroups|azureFocusView)/ && viewItem =~ /environmentVariableItem/i",
                     "group": "1@2"
                 },
+                {
+                    "command": "containerApps.convertEnvironmentVariable",
+                    "when": "view =~ /(azureResourceGroups|azureFocusView)/ && viewItem =~ /environmentVariableItem/i",
+                    "group": "1@3"
+                },
                 {
                     "command": "containerApps.deleteEnvironmentVariable",
                     "when": "view =~ /(azureResourceGroups|azureFocusView)/ && viewItem =~ /environmentVariableItem/i",
diff --git a/package.nls.json b/package.nls.json
index c0ecc08b7..5f4caa2ef 100644
--- a/package.nls.json
+++ b/package.nls.json
@@ -17,6 +17,8 @@
     "containerApps.editEnvironmentVariableName.shortTitle": "Edit Name...",
     "containerApps.editEnvironmentVariableValue.title": "Edit Environment Variable Value...",
     "containerApps.editEnvironmentVariableValue.shortTitle": "Edit Value...",
+    "containerApps.convertEnvironmentVariable.title": "Convert Environment Variable to Secret...",
+    "containerApps.convertEnvironmentVariable.shortTitle": "Convert to Secret...",
     "containerApps.editEnvironmentVariables": "Edit Environment Variables (.env)...",
     "containerApps.deleteEnvironmentVariable.title": "Delete Environment Variable...",
     "containerApps.deleteEnvironmentVariable.shortTitle": "Delete...",
diff --git a/src/commands/EXECUTE_PRIORITY.md b/src/commands/EXECUTE_PRIORITY.md
index 36f189686..f7eaf23d1 100644
--- a/src/commands/EXECUTE_PRIORITY.md
+++ b/src/commands/EXECUTE_PRIORITY.md
@@ -93,15 +93,28 @@ When creating or updating resources, execute steps should occupy certain priorit
 - SecretCreateStep: 820
 - SecretUpdateStep: 850
 
-### 8. Unallocated Space
+### 8. Environment Variables
 
-<b>Priority Range</b>: 900 - 1090
+<b>Priority Range</b>: 900 - 990
+
+#### Steps
+<!-- Bulk edit -->
+- EnvironmentVariablesEditDraftStep: 920 (single command)
+
+<!-- Single edit -->
+- EnvironmentVariableAddDraftStep: 940 (single command)
+- EnvironmentVariableEditDraftStep: 960 (single command)
+- EnvironmentVariableDeleteDraftStep: 980 (single command)
+
+### 9. Unallocated Space
+
+<b>Priority Range</b>: 1000 - 1090
 
 #### Steps
 
 - Reserved for future commands TBD.
 
-### 9. Scaling
+### 10. Scaling
 
 <b>Priority Range</b>: 1100 - 1190
 
@@ -109,7 +122,7 @@ When creating or updating resources, execute steps should occupy certain priorit
 
 - AddScaleRuleStep: 1120 (revision draft)
 
-### 10. Unallocated Space
+### 11. Unallocated Space
 
 <b>Priority Range</b>: 1200 - 1390
 
@@ -117,7 +130,7 @@ When creating or updating resources, execute steps should occupy certain priorit
 
 - Reserved for future commands TBD.
 
-### 11. Deploy
+### 12. Deploy
 
 <b>Priority Range</b>: 1400 - 1490
 
diff --git a/src/commands/environmentVariables/addEnvironmentVariable/EnvironmentVariableAddDraftStep.ts b/src/commands/environmentVariables/addEnvironmentVariable/EnvironmentVariableAddDraftStep.ts
index 57b266290..8061208b0 100644
--- a/src/commands/environmentVariables/addEnvironmentVariable/EnvironmentVariableAddDraftStep.ts
+++ b/src/commands/environmentVariables/addEnvironmentVariable/EnvironmentVariableAddDraftStep.ts
@@ -12,7 +12,7 @@ import { RevisionDraftUpdateBaseStep } from "../../revisionDraft/RevisionDraftUp
 import { type EnvironmentVariableAddContext } from "./EnvironmentVariableAddContext";
 
 export class EnvironmentVariableAddDraftStep<T extends EnvironmentVariableAddContext> extends RevisionDraftUpdateBaseStep<T> {
-    public priority: number = 590;
+    public priority: number = 940;
 
     constructor(baseItem: ContainerAppItem | RevisionsItemModel) {
         super(baseItem);
diff --git a/src/commands/environmentVariables/convertEnvironmentVariable/EnvironmentVariableConvertContext.ts b/src/commands/environmentVariables/convertEnvironmentVariable/EnvironmentVariableConvertContext.ts
new file mode 100644
index 000000000..cc5a3e454
--- /dev/null
+++ b/src/commands/environmentVariables/convertEnvironmentVariable/EnvironmentVariableConvertContext.ts
@@ -0,0 +1,16 @@
+/*---------------------------------------------------------------------------------------------
+*  Copyright (c) Microsoft Corporation. All rights reserved.
+*  Licensed under the MIT License. See License.md in the project root for license information.
+*--------------------------------------------------------------------------------------------*/
+
+import { type ContainerUpdateTelemetryProps as TelemetryProps } from "../../../telemetry/commandTelemetryProps";
+import { type SetTelemetryProps } from "../../../telemetry/SetTelemetryProps";
+import { type ISecretContext } from "../../secret/ISecretContext";
+import { type EnvironmentVariableEditBaseContext } from "../editEnvironmentVariable/EnvironmentVariableEditContext";
+
+export interface EnvironmentVariableConvertBaseContext extends EnvironmentVariableEditBaseContext, ISecretContext {
+    // Make newSecretValue required
+    newSecretValue: string;
+}
+
+export type EnvironmentVariableConvertContext = EnvironmentVariableConvertBaseContext & SetTelemetryProps<TelemetryProps>;
diff --git a/src/commands/environmentVariables/convertEnvironmentVariable/convertEnvironmentVariable.ts b/src/commands/environmentVariables/convertEnvironmentVariable/convertEnvironmentVariable.ts
new file mode 100644
index 000000000..0b389d50f
--- /dev/null
+++ b/src/commands/environmentVariables/convertEnvironmentVariable/convertEnvironmentVariable.ts
@@ -0,0 +1,68 @@
+/*---------------------------------------------------------------------------------------------
+*  Copyright (c) Microsoft Corporation. All rights reserved.
+*  Licensed under the MIT License. See License.md in the project root for license information.
+*--------------------------------------------------------------------------------------------*/
+
+import { AzureWizard, createSubscriptionContext, nonNullValueAndProp, type IActionContext, type ISubscriptionContext } from "@microsoft/vscode-azext-utils";
+import { type EnvironmentVariableItem } from "../../../tree/containers/EnvironmentVariableItem";
+import { createActivityContext } from "../../../utils/activityUtils";
+import { getManagedEnvironmentFromContainerApp } from "../../../utils/getResourceUtils";
+import { getVerifyProvidersStep } from "../../../utils/getVerifyProvidersStep";
+import { localize } from "../../../utils/localize";
+import { pickEnvironmentVariable } from "../../../utils/pickItem/pickEnvironmentVariables";
+import { isTemplateItemEditable, TemplateItemNotEditableError } from "../../../utils/revisionDraftUtils";
+import { RevisionDraftDeployPromptStep } from "../../revisionDraft/RevisionDraftDeployPromptStep";
+import { SecretCreateStep } from "../../secret/addSecret/SecretCreateStep";
+import { SecretNameStep } from "../../secret/addSecret/SecretNameStep";
+import { EnvironmentVariableType } from "../addEnvironmentVariable/EnvironmentVariableTypeListStep";
+import { EnvironmentVariableEditDraftStep } from "../editEnvironmentVariable/EnvironmentVariableEditDraftStep";
+import { type EnvironmentVariableConvertContext } from "./EnvironmentVariableConvertContext";
+
+/**
+ * Automatically convert a 'Manual Input' environment variable to use a container app secret instead
+ */
+export async function convertEnvironmentVariable(context: IActionContext, node?: EnvironmentVariableItem): Promise<void> {
+    const item: EnvironmentVariableItem = node ?? await pickEnvironmentVariable(context, { autoSelectDraft: true });
+    const { subscription, containerApp } = item;
+
+    if (!isTemplateItemEditable(item)) {
+        throw new TemplateItemNotEditableError(item);
+    }
+
+    if (item.envVariable.secretRef) {
+        throw new Error(localize('alreadySecret', 'The environment variable you chose to convert already uses a secret reference.'));
+    }
+
+    const subscriptionContext: ISubscriptionContext = createSubscriptionContext(subscription);
+    const wizardContext: EnvironmentVariableConvertContext = {
+        ...context,
+        ...subscriptionContext,
+        ...await createActivityContext(true),
+        subscription,
+        managedEnvironment: await getManagedEnvironmentFromContainerApp({ ...context, ...subscriptionContext }, containerApp),
+        containerApp,
+        containersIdx: item.containersIdx,
+        environmentVariable: item.envVariable,
+        newSecretValue: nonNullValueAndProp(item.envVariable, 'value'),
+        newEnvironmentVariableType: EnvironmentVariableType.SecretRef,
+        isDraftCommand: true,
+    };
+    wizardContext.telemetry.properties.revisionMode = containerApp.revisionsMode;
+
+    const wizard: AzureWizard<EnvironmentVariableConvertContext> = new AzureWizard(wizardContext, {
+        title: localize('convertEnvironmentVariableTitle', 'Convert environment variable "{0}" to use a secret (draft)', wizardContext.environmentVariable.name),
+        promptSteps: [
+            new SecretNameStep(),
+            new RevisionDraftDeployPromptStep(),
+        ],
+        executeSteps: [
+            getVerifyProvidersStep<EnvironmentVariableConvertContext>(),
+            new SecretCreateStep(),
+            new EnvironmentVariableEditDraftStep(item),
+        ],
+    });
+
+    await wizard.prompt();
+    wizardContext.activityTitle = localize('convertEnvironmentVariableActivityTitle', 'Convert environment variable "{0}" to use secret "{1}" (draft)', wizardContext.environmentVariable.name, wizardContext.newSecretName);
+    await wizard.execute();
+}
diff --git a/src/commands/environmentVariables/deleteEnvironmentVariable/EnvironmentVariableDeleteDraftStep.ts b/src/commands/environmentVariables/deleteEnvironmentVariable/EnvironmentVariableDeleteDraftStep.ts
index bc6d9d40f..0f8cbbaa6 100644
--- a/src/commands/environmentVariables/deleteEnvironmentVariable/EnvironmentVariableDeleteDraftStep.ts
+++ b/src/commands/environmentVariables/deleteEnvironmentVariable/EnvironmentVariableDeleteDraftStep.ts
@@ -12,7 +12,7 @@ import { RevisionDraftUpdateBaseStep } from "../../revisionDraft/RevisionDraftUp
 import { type EnvironmentVariableDeleteContext } from "./EnvironmentVariableDeleteContext";
 
 export class EnvironmentVariableDeleteDraftStep<T extends EnvironmentVariableDeleteContext> extends RevisionDraftUpdateBaseStep<T> {
-    public priority: number = 590;
+    public priority: number = 980;
 
     constructor(baseItem: ContainerAppItem | RevisionsItemModel) {
         super(baseItem);
diff --git a/src/commands/environmentVariables/editEnvironmentVariable/EnvironmentVariableEditContext.ts b/src/commands/environmentVariables/editEnvironmentVariable/EnvironmentVariableEditContext.ts
index 1948620ca..1f2e79cbd 100644
--- a/src/commands/environmentVariables/editEnvironmentVariable/EnvironmentVariableEditContext.ts
+++ b/src/commands/environmentVariables/editEnvironmentVariable/EnvironmentVariableEditContext.ts
@@ -6,9 +6,9 @@
 import { type EnvironmentVar } from "@azure/arm-appcontainers";
 import { type SetTelemetryProps } from "../../../telemetry/SetTelemetryProps";
 import { type ContainerUpdateTelemetryProps as TelemetryProps } from "../../../telemetry/commandTelemetryProps";
-import { type EnvironmentVariableAddContext } from "../addEnvironmentVariable/EnvironmentVariableAddContext";
+import { type EnvironmentVariableAddBaseContext } from "../addEnvironmentVariable/EnvironmentVariableAddContext";
 
-export interface EnvironmentVariableEditBaseContext extends EnvironmentVariableAddContext {
+export interface EnvironmentVariableEditBaseContext extends EnvironmentVariableAddBaseContext {
     // Require the environment variable upfront so we can make edits
     environmentVariable: EnvironmentVar;
 }
diff --git a/src/commands/environmentVariables/editEnvironmentVariable/EnvironmentVariableEditDraftStep.ts b/src/commands/environmentVariables/editEnvironmentVariable/EnvironmentVariableEditDraftStep.ts
index f85ea1248..b75c1d101 100644
--- a/src/commands/environmentVariables/editEnvironmentVariable/EnvironmentVariableEditDraftStep.ts
+++ b/src/commands/environmentVariables/editEnvironmentVariable/EnvironmentVariableEditDraftStep.ts
@@ -4,7 +4,7 @@
  *--------------------------------------------------------------------------------------------*/
 
 import { type Container, type EnvironmentVar } from "@azure/arm-appcontainers";
-import { nonNullValue } from "@microsoft/vscode-azext-utils";
+import { activityFailContext, activityFailIcon, activitySuccessContext, activitySuccessIcon, createUniversallyUniqueContextValue, GenericParentTreeItem, GenericTreeItem, nonNullValue, type ExecuteActivityOutput } from "@microsoft/vscode-azext-utils";
 import { type Progress } from "vscode";
 import { type ContainerAppItem } from "../../../tree/ContainerAppItem";
 import { type RevisionsItemModel } from "../../../tree/revisionManagement/RevisionItem";
@@ -14,7 +14,7 @@ import { EnvironmentVariableType } from "../addEnvironmentVariable/EnvironmentVa
 import { type EnvironmentVariableEditContext } from "./EnvironmentVariableEditContext";
 
 export class EnvironmentVariableEditDraftStep<T extends EnvironmentVariableEditContext> extends RevisionDraftUpdateBaseStep<T> {
-    public priority: number = 590;
+    public priority: number = 960;
 
     constructor(baseItem: ContainerAppItem | RevisionsItemModel) {
         super(baseItem);
@@ -49,4 +49,26 @@ export class EnvironmentVariableEditDraftStep<T extends EnvironmentVariableEditC
     public shouldExecute(context: T): boolean {
         return !!context.environmentVariable;
     }
+
+    public createSuccessOutput(): ExecuteActivityOutput {
+        return {
+            item: new GenericTreeItem(undefined, {
+                contextValue: createUniversallyUniqueContextValue(['environmentVariableEditDraftStepSuccessItem', activitySuccessContext]),
+                label: localize('editEnvironmentVariable', 'Edit environment variable (draft)'),
+                iconPath: activitySuccessIcon
+            }),
+            message: localize('editEnvironmentVariableSuccess', 'Edited environment variable (draft)')
+        };
+    }
+
+    public createFailOutput(): ExecuteActivityOutput {
+        return {
+            item: new GenericParentTreeItem(undefined, {
+                contextValue: createUniversallyUniqueContextValue(['environmentVariableEditDraftStepFailItem', activityFailContext]),
+                label: localize('editEnvironmentVariable', 'Edit environment variable (draft)'),
+                iconPath: activityFailIcon
+            }),
+            message: localize('editEnvironmentVariableFail', 'Failed to edit environment variable (draft).')
+        };
+    }
 }
diff --git a/src/commands/environmentVariables/editEnvironmentVariables/EnvironmentVariablesEditDraftStep.ts b/src/commands/environmentVariables/editEnvironmentVariables/EnvironmentVariablesEditDraftStep.ts
index c6b1ec199..25bb1f479 100644
--- a/src/commands/environmentVariables/editEnvironmentVariables/EnvironmentVariablesEditDraftStep.ts
+++ b/src/commands/environmentVariables/editEnvironmentVariables/EnvironmentVariablesEditDraftStep.ts
@@ -12,7 +12,7 @@ import { RevisionDraftUpdateBaseStep } from "../../revisionDraft/RevisionDraftUp
 import { type EnvironmentVariablesEditContext } from "./EnvironmentVariablesEditContext";
 
 export class EnvironmentVariablesEditDraftStep<T extends EnvironmentVariablesEditContext> extends RevisionDraftUpdateBaseStep<T> {
-    public priority: number = 590;
+    public priority: number = 920;
 
     constructor(baseItem: ContainerAppItem | RevisionsItemModel) {
         super(baseItem);
diff --git a/src/commands/secret/addSecret/SecretCreateStep.ts b/src/commands/secret/addSecret/SecretCreateStep.ts
index ab90c74d7..d7451a334 100644
--- a/src/commands/secret/addSecret/SecretCreateStep.ts
+++ b/src/commands/secret/addSecret/SecretCreateStep.ts
@@ -3,16 +3,21 @@
  *  Licensed under the MIT License. See License.txt in the project root for license information.
  *--------------------------------------------------------------------------------------------*/
 
-import { AzureWizardExecuteStep, nonNullProp } from "@microsoft/vscode-azext-utils";
+import { nonNullProp } from "@microsoft/vscode-azext-utils";
 import { type Progress } from "vscode";
 import { ext } from "../../../extensionVariables";
 import { getContainerEnvelopeWithSecrets, type ContainerAppModel } from "../../../tree/ContainerAppItem";
 import { localize } from "../../../utils/localize";
+import { AzureWizardActivityOutputExecuteStep } from "../../AzureWizardActivityOutputExecuteStep";
 import { updateContainerApp } from "../../updateContainerApp";
 import { type ISecretContext } from "../ISecretContext";
 
-export class SecretCreateStep extends AzureWizardExecuteStep<ISecretContext> {
+export class SecretCreateStep<T extends ISecretContext> extends AzureWizardActivityOutputExecuteStep<T> {
     public priority: number = 820;
+    public stepName: string = 'secretCreateStep';
+    protected getSuccessString = (context: T) => localize('createSecretSuccess', 'Successfully created secret "{0}" for container app "{1}".', context.secretName, context.containerApp?.name);
+    protected getFailString = (context: T) => localize('createSecretFail', 'Failed to create secret "{0}" for container app "{1}".', context.newSecretName, context.containerApp?.name);
+    protected getTreeItemLabel = (context: T) => localize('createSecretLabel', 'Create secret "{0}" for container app "{1}"', context.secretName, context.containerApp?.name);
 
     public async execute(context: ISecretContext, progress: Progress<{ message?: string | undefined; increment?: number | undefined }>): Promise<void> {
         const containerApp: ContainerAppModel = nonNullProp(context, 'containerApp');