diff --git a/internal/terraform/ast/variables.go b/internal/terraform/ast/variables.go
index 5245ac68f..56453326c 100644
--- a/internal/terraform/ast/variables.go
+++ b/internal/terraform/ast/variables.go
@@ -16,16 +16,25 @@ func NewVarsFilename(name string) (VarsFilename, bool) {
 }
 
 func IsVarsFilename(name string) bool {
-	return strings.HasSuffix(name, ".tfvars") && !isIgnoredFile(name)
+	return (strings.HasSuffix(name, ".tfvars") ||
+		strings.HasSuffix(name, ".tfvars.json")) &&
+		!isIgnoredFile(name)
 }
 
 func (vf VarsFilename) String() string {
 	return string(vf)
 }
 
+func (vf VarsFilename) IsJSON() bool {
+	return strings.HasSuffix(string(vf), ".json")
+}
+
 func (vf VarsFilename) IsAutoloaded() bool {
 	name := string(vf)
-	return strings.HasSuffix(name, ".auto.tfvars") || name == "terraform.tfvars"
+	return strings.HasSuffix(name, ".auto.tfvars") ||
+		strings.HasSuffix(name, ".auto.tfvars.json") ||
+		name == "terraform.tfvars" ||
+		name == "terraform.tfvars.json"
 }
 
 type VarsFiles map[VarsFilename]*hcl.File
diff --git a/internal/terraform/parser/variables.go b/internal/terraform/parser/variables.go
index 943da9eef..20837b668 100644
--- a/internal/terraform/parser/variables.go
+++ b/internal/terraform/parser/variables.go
@@ -3,8 +3,6 @@ package parser
 import (
 	"path/filepath"
 
-	"github.com/hashicorp/hcl/v2"
-	"github.com/hashicorp/hcl/v2/hclsyntax"
 	"github.com/hashicorp/terraform-ls/internal/terraform/ast"
 )
 
@@ -35,8 +33,10 @@ func ParseVariableFiles(fs FS, modPath string) (ast.VarsFiles, ast.VarsDiags, er
 			return nil, nil, err
 		}
 
-		f, pDiags := hclsyntax.ParseConfig(src, name, hcl.InitialPos)
 		filename := ast.VarsFilename(name)
+
+		f, pDiags := parseFile(src, filename)
+
 		diags[filename] = pDiags
 		if f != nil {
 			files[filename] = f