diff --git a/runtime/reconcilers/source.go b/runtime/reconcilers/source.go
index 442e094d7bc..0cdc2c99221 100644
--- a/runtime/reconcilers/source.go
+++ b/runtime/reconcilers/source.go
@@ -11,6 +11,7 @@ import (
 
 	runtimev1 "github.com/rilldata/rill/proto/gen/rill/runtime/v1"
 	"github.com/rilldata/rill/runtime"
+	"github.com/rilldata/rill/runtime/compilers/rillv1"
 	"github.com/rilldata/rill/runtime/drivers"
 	"github.com/rilldata/rill/runtime/pkg/pbutil"
 	"go.opentelemetry.io/otel/attribute"
@@ -176,7 +177,7 @@ func (r *SourceReconciler) Reconcile(ctx context.Context, n *runtimev1.ResourceN
 
 	// Execute ingestion
 	r.C.Logger.Info("Ingesting source data", slog.String("name", n.Name), slog.String("connector", connector))
-	ingestErr := r.ingestSource(ctx, src.Spec, stagingTableName)
+	ingestErr := r.ingestSource(ctx, self, stagingTableName)
 	if ingestErr != nil {
 		ingestErr = fmt.Errorf("failed to ingest source: %w", ingestErr)
 	}
@@ -308,7 +309,8 @@ func (r *SourceReconciler) setTriggerFalse(ctx context.Context, n *runtimev1.Res
 // ingestSource ingests the source into a table with tableName.
 // It does NOT drop the table if ingestion fails after the table has been created.
 // It will return an error if the sink connector is not an OLAP.
-func (r *SourceReconciler) ingestSource(ctx context.Context, src *runtimev1.SourceSpec, tableName string) (outErr error) {
+func (r *SourceReconciler) ingestSource(ctx context.Context, self *runtimev1.Resource, tableName string) (outErr error) {
+	src := self.Resource.(*runtimev1.Resource_Source).Source.GetSpec()
 	// Get connections and transporter
 	srcConn, release1, err := r.C.AcquireConn(ctx, src.SourceConnector)
 	if err != nil {
@@ -329,7 +331,7 @@ func (r *SourceReconciler) ingestSource(ctx context.Context, src *runtimev1.Sour
 	}
 
 	// Get source and sink configs
-	srcConfig, err := driversSource(srcConn, src.Properties)
+	srcConfig, err := r.driversSource(ctx, self, src.Properties)
 	if err != nil {
 		return err
 	}
@@ -382,8 +384,21 @@ func (r *SourceReconciler) ingestSource(ctx context.Context, src *runtimev1.Sour
 	return err
 }
 
-func driversSource(conn drivers.Handle, propsPB *structpb.Struct) (map[string]any, error) {
+func (r *SourceReconciler) driversSource(ctx context.Context, self *runtimev1.Resource, propsPB *structpb.Struct) (map[string]any, error) {
 	props := propsPB.AsMap()
+	spec := self.Resource.(*runtimev1.Resource_Source).Source.Spec
+	state := self.Resource.(*runtimev1.Resource_Source).Source.State
+
+	var err error
+	props, err = resolveTemplateProps(ctx, props, rillv1.TemplateResource{
+		Meta:  self.Meta,
+		Spec:  spec,
+		State: state,
+	}, r.C)
+	if err != nil {
+		return nil, err
+	}
+
 	return props, nil
 }
 
diff --git a/runtime/reconcilers/util.go b/runtime/reconcilers/util.go
index d9105d8c334..11f41e593fb 100644
--- a/runtime/reconcilers/util.go
+++ b/runtime/reconcilers/util.go
@@ -9,6 +9,7 @@ import (
 
 	runtimev1 "github.com/rilldata/rill/proto/gen/rill/runtime/v1"
 	"github.com/rilldata/rill/runtime"
+	compilerv1 "github.com/rilldata/rill/runtime/compilers/rillv1"
 	"github.com/rilldata/rill/runtime/drivers"
 	"github.com/robfig/cron/v3"
 )
@@ -154,3 +155,48 @@ func safeSQLName(name string) string {
 	}
 	return fmt.Sprintf("\"%s\"", strings.ReplaceAll(name, "\"", "\"\""))
 }
+
+func resolveTemplateProps(ctx context.Context, props map[string]any, self compilerv1.TemplateResource, c *runtime.Controller) (map[string]any, error) {
+	inst, err := c.Runtime.Instance(ctx, c.InstanceID)
+	if err != nil {
+		return nil, err
+	}
+	vars := inst.ResolveVariables()
+
+	for key, value := range props {
+		strValue, ok := value.(string)
+		if !ok {
+			continue
+		}
+
+		strValue, err = compilerv1.ResolveTemplate(strValue, compilerv1.TemplateData{
+			User:       map[string]interface{}{},
+			Variables:  vars,
+			ExtraProps: map[string]interface{}{},
+			Self:       self,
+			Resolve: func(ref compilerv1.ResourceName) (string, error) {
+				return safeSQLName(ref.Name), nil
+			},
+			Lookup: func(name compilerv1.ResourceName) (compilerv1.TemplateResource, error) {
+				if name.Kind == compilerv1.ResourceKindUnspecified {
+					return compilerv1.TemplateResource{}, fmt.Errorf("can't resolve name %q without kind specified", name.Name)
+				}
+				res, err := c.Get(ctx, resourceNameFromCompiler(name), false)
+				if err != nil {
+					return compilerv1.TemplateResource{}, err
+				}
+				return compilerv1.TemplateResource{
+					Meta:  res.Meta,
+					Spec:  res.Resource.(*runtimev1.Resource_Model).Model.Spec,
+					State: res.Resource.(*runtimev1.Resource_Model).Model.State,
+				}, nil
+			},
+		})
+		if err != nil {
+			return nil, fmt.Errorf("failed to resolve template: %w", err)
+		}
+
+		props[key] = strValue
+	}
+	return props, nil
+}