@@ -12,7 +12,7 @@ type PromptTemplate = {
 
 const ADD_NEW_TEMPLATE_LABEL = '$(add) New prompt template...'
 
-export const handle_show_prompt_template_quick_pick = async (
+export const handle_prompt_template_quick_pick = async (
   prompt_view_provider: PromptViewProvider
 ): Promise<void> => {
   const prompt_type: WebPromptType | ApiPromptType | undefined =
@@ -220,10 +220,16 @@ export const handle_show_prompt_template_quick_pick = async (
 
   templates_quick_pick.items = create_template_items(prompt_templates)
 
+  const first_template_item = templates_quick_pick.items.find((i) => i.template)
+  if (first_template_item) {
+    templates_quick_pick.activeItems = [first_template_item]
+  }
+
   const disposables: vscode.Disposable[] = []
   let is_disposed = false
   let notification_count = 0
   let is_template_accepted = false
+  let is_entering_variables = false
 
   disposables.push(
     templates_quick_pick.onDidTriggerButton((_button) => {
@@ -262,14 +268,15 @@ export const handle_show_prompt_template_quick_pick = async (
             templates_quick_pick.show()
           }
         }
+
+        is_editing_template = false
       } else if (
         'template' in selected_template &&
         selected_template.template &&
         typeof selected_template.index == 'number'
       ) {
-        is_template_accepted = true
+        is_entering_variables = true
         templates_quick_pick.hide()
-        is_disposed = true
 
         // Move the selected template to the top of the list for easier access next time
         if (selected_template.index > 0) {
@@ -300,13 +307,106 @@ export const handle_show_prompt_template_quick_pick = async (
           ])
         ]
 
+        const variable_values: Record<string, string> = {}
+        let cancelled = false
+        let go_back_to_templates = false
+
         if (variables.length > 0) {
-          for (const variable of variables) {
-            const value = await vscode.window.showInputBox({
-              title: 'Enter Variable',
-              placeHolder: variable
+          let i = 0
+          while (i < variables.length) {
+            const variable = variables[i]
+
+            const result = await new Promise<{
+              value?: string
+              back: boolean
+              cancel: boolean
+            }>((resolve) => {
+              const input = vscode.window.createInputBox()
+              input.title = 'Enter Variable'
+              input.placeholder = variable
+              input.value = variable_values[variable] || ''
+              input.buttons = [vscode.QuickInputButtons.Back]
+
+              let resolved = false
+              const input_disposables: vscode.Disposable[] = []
+
+              input_disposables.push(
+                input.onDidTriggerButton((button) => {
+                  if (button === vscode.QuickInputButtons.Back) {
+                    resolved = true
+                    input.hide()
+                    resolve({ back: true, cancel: false })
+                  }
+                }),
+                input.onDidAccept(() => {
+                  resolved = true
+                  const val = input.value
+                  input.hide()
+                  resolve({ value: val, back: false, cancel: false })
+                }),
+                input.onDidHide(() => {
+                  if (!resolved) {
+                    resolve({ cancel: true, back: false })
+                  }
+                  input_disposables.forEach((d) => d.dispose())
+                  input.dispose()
+                })
+              )
+
+              input.show()
             })
 
+            if (result.cancel) {
+              cancelled = true
+              break
+            }
+
+            if (result.back) {
+              if (i === 0) {
+                go_back_to_templates = true
+                break
+              } else {
+                i--
+                continue
+              }
+            }
+
+            if (result.value !== undefined) {
+              variable_values[variable] = result.value
+              i++
+            }
+          }
+
+          if (cancelled) {
+            is_entering_variables = false
+            is_disposed = true
+            prompt_view_provider.send_message({
+              command: 'FOCUS_PROMPT_FIELD'
+            })
+            disposables.forEach((d) => d.dispose())
+            return
+          }
+
+          if (go_back_to_templates) {
+            is_entering_variables = false
+            templates_quick_pick.items = create_template_items(
+              prompt_templates,
+              templates_quick_pick.value
+            )
+
+            const attempted_item = templates_quick_pick.items.find(
+              (i) => i.template === selected_template.template
+            )
+            if (attempted_item) {
+              templates_quick_pick.activeItems = [attempted_item]
+            }
+
+            templates_quick_pick.show()
+            return
+          }
+
+          for (const variable of variables) {
+            const value = variable_values[variable]
             if (value) {
               const double_regex = new RegExp(
                 `\\{\\{\\s*${variable.replace(
@@ -328,6 +428,10 @@ export const handle_show_prompt_template_quick_pick = async (
           }
         }
 
+        is_entering_variables = false
+        is_template_accepted = true
+        is_disposed = true
+
         const current_text = prompt_view_provider.current_instruction
         const is_after_slash = current_text
           .slice(0, prompt_view_provider.caret_position)
@@ -340,6 +444,7 @@ export const handle_show_prompt_template_quick_pick = async (
         prompt_view_provider.send_message({
           command: 'FOCUS_PROMPT_FIELD'
         })
+        disposables.forEach((d) => d.dispose())
       }
     }),
     templates_quick_pick.onDidChangeValue((value) => {
@@ -459,9 +564,14 @@ export const handle_show_prompt_template_quick_pick = async (
       }
     }),
     templates_quick_pick.onDidHide(() => {
-      if (is_editing_template || notification_count > 0) {
+      if (
+        is_editing_template ||
+        notification_count > 0 ||
+        is_entering_variables
+      ) {
         // We are editing a template, which involves showing input boxes that hide the quick pick.
         // Or we are showing a dialog (warning/info message) which also hides the quick pick.
+        // Or we are filling out variables for the template which hides the quick pick.
         // We don't want to dispose of everything in these cases.
         return
       }
 
@@ -15,7 +15,7 @@ export * from './handle-save-instructions'
 export * from './handle-reorder-web-configurations'
 export * from './handle-toggle-pinned-web-configuration'
 export * from './handle-autofill'
-export * from './handle-show-prompt-template-quick-pick'
+export * from './handle-prompt-template-quick-pick'
 export * from './handle-create-web-configuration'
 export * from './handle-update-web-configuration'
 export * from './handle-pick-chatbot'
 
@@ -42,7 +42,7 @@ import {
   handle_get_mode,
   handle_get_workspace_state,
   handle_get_version,
-  handle_show_prompt_template_quick_pick,
+  handle_prompt_template_quick_pick,
   handle_get_api_configurations,
   handle_reorder_api_configurations,
   handle_toggle_pinned_api_configuration,
@@ -751,7 +751,7 @@ export class PromptViewProvider implements vscode.WebviewViewProvider {
           } else if (message.command == 'MAKE_API_CALL') {
             await handle_make_api_call(this, message)
           } else if (message.command == 'SHOW_PROMPT_TEMPLATE_QUICK_PICK') {
-            await handle_show_prompt_template_quick_pick(this)
+            await handle_prompt_template_quick_pick(this)
           } else if (message.command == 'GET_WEB_PROMPT_TYPE') {
             handle_get_web_prompt_type(this)
           } else if (message.command == 'CANCEL_API_REQUEST') {