diff --git a/runtime/reconcilers/source.go b/runtime/reconcilers/source.go
index a78db2e5272..473b0b89eed 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)
 	} else if !r.C.Runtime.AllowHostAccess() {
@@ -312,7 +313,9 @@ 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.GetSource().Spec
+
 	// Get connections and transporter
 	srcConn, release1, err := r.C.AcquireConn(ctx, src.SourceConnector)
 	if err != nil {
@@ -333,7 +336,7 @@ 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
 	}
@@ -386,9 +389,14 @@ func (r *SourceReconciler) ingestSource(ctx context.Context, src *runtimev1.Sour
 	return err
 }
 
-func driversSource(conn drivers.Handle, propsPB *structpb.Struct) (map[string]any, error) {
-	props := propsPB.AsMap()
-	return props, nil
+func (r *SourceReconciler) driversSource(ctx context.Context, self *runtimev1.Resource, propsPB *structpb.Struct) (map[string]any, error) {
+	tself := rillv1.TemplateResource{
+		Meta:  self.Meta,
+		Spec:  self.GetSource().Spec,
+		State: self.GetSource().State,
+	}
+
+	return resolveTemplatedProps(ctx, r.C, tself, propsPB.AsMap())
 }
 
 func driversSink(conn drivers.Handle, tableName string) (map[string]any, error) {
diff --git a/runtime/reconcilers/util.go b/runtime/reconcilers/util.go
index a0c34ff6a39..baf5835170e 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"
 	"golang.org/x/exp/slog"
@@ -184,3 +185,75 @@ func logTableNameAndType(ctx context.Context, c *runtime.Controller, connector,
 
 	c.Logger.Info("LogTableNameAndType: ", slog.String("name", name), slog.String("schema", strings.Join(colTyp, ", ")))
 }
+
+func resolveTemplatedProps(ctx context.Context, c *runtime.Controller, self compilerv1.TemplateResource, props map[string]any) (map[string]any, error) {
+	inst, err := c.Runtime.Instance(ctx, c.InstanceID)
+	if err != nil {
+		return nil, err
+	}
+	vars := inst.ResolveVariables()
+
+	templateData := 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
+		},
+	}
+
+	for key, value := range props {
+		res, err := convert(value, &templateData)
+		if err != nil {
+			return nil, fmt.Errorf("failed to convert property %q: %w", key, err)
+		}
+		props[key] = res
+	}
+	return props, nil
+}
+
+func convert(value any, templateData *compilerv1.TemplateData) (res any, err error) {
+	switch v := value.(type) {
+	case string:
+		res, err = compilerv1.ResolveTemplate(v, *templateData)
+		if err != nil {
+			return nil, fmt.Errorf("failed to resolve template: %w", err)
+		}
+	case map[string]any:
+		for key, item := range v {
+			item, err = convert(item, templateData)
+			if err != nil {
+				return nil, err
+			}
+			v[key] = item
+		}
+		res = v
+	case []any:
+		for i, item := range v {
+			item, err = convert(item, templateData)
+			if err != nil {
+				return nil, err
+			}
+			v[i] = item
+		}
+		res = v
+	default:
+		res = v
+	}
+	return
+}