diff --git a/mmv1/api/resource/step.go b/mmv1/api/resource/step.go
index dc6d4d5ccc44..c4c1ff7e19e3 100644
--- a/mmv1/api/resource/step.go
+++ b/mmv1/api/resource/step.go
@@ -87,10 +87,12 @@ type Step struct {
 	//         "network": nameOfVpc
 	//         ...
 	//       }
+	// NOTE: Keys in TestVarsOverrides will apply to a matching key in EITHER Vars or PrefixedVars.
 	TestVarsOverrides map[string]string `yaml:"test_vars_overrides,omitempty"`
 
 	// Hash to provider custom override values for generating oics config
 	// See test_vars_overrides for more details
+	// NOTE: Keys in OicsVarsOverrides will apply to a matching key in EITHER Vars or PrefixedVars for OiCS generation.
 	OicsVarsOverrides map[string]string `yaml:"oics_vars_overrides,omitempty"`
 
 	// The version name of the test step's version if it's different than the
@@ -119,7 +121,11 @@ func (s *Step) TestStepSlug(productName, resourceName string) string {
 }
 
 func (s *Step) Validate(rName, sName string) (es []error) {
-	// TODO: Add check identifier when it's implemented
+	for k := range s.Vars {
+		if _, exists := s.PrefixedVars[k]; exists {
+			es = append(es, fmt.Errorf("variable key '%s' cannot exist in both 'vars' and 'prefixed_vars' for step '%s' in sample '%s' of resource '%s'", k, s.Name, sName, rName))
+		}
+	}
 	if s.Name == "" {
 		es = append(es, fmt.Errorf("missing `name` for one step in test sample %s in resource %s", sName, rName))
 	}
@@ -204,6 +210,10 @@ func (s *Step) SetHCLText(sysfs fs.FS) {
 		testPrefixedVars[key] = fmt.Sprintf("%s%%{random_suffix}", newVal)
 	}
 
+	for key := range originalVars {
+		testVars[key] = fmt.Sprintf("%%{%s}", key)
+	}
+
 	// Apply overrides from YAML
 	for key := range s.TestVarsOverrides {
 		testPrefixedVars[key] = fmt.Sprintf("%%{%s}", key)
@@ -305,12 +315,14 @@ func SubstituteTestPaths(config string) string {
 // Executes step configuration templates for documentation and tests
 func (s *Step) SetOiCSHCLText(sysfs fs.FS) {
 	originalPrefixedVars := s.PrefixedVars
+	originalVars := s.Vars
 
 	// // Remove region tags
 	re1 := regexp.MustCompile(`# \[[a-zA-Z_ ]+\]\n`)
 	re2 := regexp.MustCompile(`\n# \[[a-zA-Z_ ]+\]`)
 
 	testPrefixedVars := make(map[string]string)
+	testVars := make(map[string]string)
 	for key, value := range originalPrefixedVars {
 		testPrefixedVars[key] = fmt.Sprintf("%s-${local.name_suffix}", value)
 	}
@@ -318,9 +330,11 @@ func (s *Step) SetOiCSHCLText(sysfs fs.FS) {
 	// Apply overrides from YAML
 	for key, value := range s.OicsVarsOverrides {
 		testPrefixedVars[key] = value
+		testVars[key] = value
 	}
 
 	s.PrefixedVars = testPrefixedVars
+	s.Vars = testVars
 	s.OicsHCLText = s.ExecuteTemplate(sysfs)
 	s.OicsHCLText = regexp.MustCompile(`\n\n$`).ReplaceAllString(s.OicsHCLText, "\n")
 
@@ -331,4 +345,5 @@ func (s *Step) SetOiCSHCLText(sysfs fs.FS) {
 
 	// Reset the step
 	s.PrefixedVars = originalPrefixedVars
+	s.Vars = originalVars
 }
diff --git a/mmv1/templates/terraform/samples/base_configs/test_file.go.tmpl b/mmv1/templates/terraform/samples/base_configs/test_file.go.tmpl
index 86ac50bcaa31..0a35cacc785c 100644
--- a/mmv1/templates/terraform/samples/base_configs/test_file.go.tmpl
+++ b/mmv1/templates/terraform/samples/base_configs/test_file.go.tmpl
@@ -86,18 +86,31 @@ func TestAcc{{ $s.TestSampleSlug $.Res.ProductMetadata.Name $.Res.Name }}(t *tes
 	})
 	{{- end }}
 
+	{{- $stepCount := len $s.TestSteps }}
+	{{- if gt $stepCount 1 }}
+	randomSuffix := acctest.RandString(t, 10)
+	{{- end }}
+
 	{{- range $i, $st := $s.TestSteps }}
 	{{- if eq $i 0 }}
 
 	context := map[string]interface{}{
 	{{- else }}
+	
 	context_{{ $i }} := map[string]interface{}{
 	{{- end }}
 		{{- template "EnvVarContext" dict "TestEnvVars" $st.TestEnvVars "HasNewLine" false}}
+		{{- range $varKey, $varVal := $st.Vars }}
+		"{{$varKey}}": {{ $varVal }},
+		{{- end }}
 		{{- range $varKey, $varVal := $st.TestVarsOverrides }}
-		"{{$varKey}}": {{$varVal}},
+		"{{$varKey}}": {{ $varVal }},
 		{{- end }}
+	{{- if gt $stepCount 1 }}
+		"random_suffix": randomSuffix,
+	{{- else }}
 		"random_suffix": acctest.RandString(t, 10),
+	{{- end }}
 	}
 	{{- end }}