diff --git a/CHANGELOG.md b/CHANGELOG.md
index 323af91bd25..f120a54eedf 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -5,6 +5,7 @@
 1. [12663](https://github.com/influxdata/influxdb/pull/12663): Insert flux function near cursor in flux editor
 1. [12678](https://github.com/influxdata/influxdb/pull/12678): Enable the use of variables in the Data Explorer and Cell Editor Overlay
 1. [12655](https://github.com/influxdata/influxdb/pull/12655): Add a variable control bar to dashboards to select values for variables.
+1. [12706](https://github.com/influxdata/influxdb/pull/12706): Add ability to add variable to script from the side menu.
 
 ### Bug Fixes
 
diff --git a/ui/src/timeMachine/components/TimeMachineFluxEditor.tsx b/ui/src/timeMachine/components/TimeMachineFluxEditor.tsx
index a827c4ec02c..b62c681dcf3 100644
--- a/ui/src/timeMachine/components/TimeMachineFluxEditor.tsx
+++ b/ui/src/timeMachine/components/TimeMachineFluxEditor.tsx
@@ -7,7 +7,7 @@ import {Position} from 'codemirror'
 import FluxEditor from 'src/shared/components/FluxEditor'
 import Threesizer from 'src/shared/components/threesizer/Threesizer'
 import FluxFunctionsToolbar from 'src/timeMachine/components/fluxFunctionsToolbar/FluxFunctionsToolbar'
-import VariablesToolbar from 'src/timeMachine/components/variableToolbar/VariableToolbar'
+import VariableToolbar from 'src/timeMachine/components/variableToolbar/VariableToolbar'
 import ToolbarTab from 'src/timeMachine/components/ToolbarTab'
 
 // Actions
@@ -16,7 +16,8 @@ import {saveAndExecuteQueries} from 'src/timeMachine/actions/queries'
 
 // Utils
 import {getActiveQuery} from 'src/timeMachine/selectors'
-import {insertFluxFunction} from 'src/timeMachine/utils/scriptInsertion'
+import {insertFluxFunction} from 'src/timeMachine/utils/insertFunction'
+import {insertVariable} from 'src/timeMachine/utils/insertVariable'
 
 // Constants
 import {HANDLE_VERTICAL, HANDLE_NONE} from 'src/shared/constants'
@@ -114,13 +115,31 @@ class TimeMachineFluxEditor extends PureComponent<Props, State> {
       )
     }
 
-    return <VariablesToolbar />
+    return <VariableToolbar onClickVariable={this.handleInsertVariable} />
   }
 
   private handleCursorPosition = (position: Position): void => {
     this.cursorPosition = position
   }
 
+  private handleInsertVariable = async (
+    variableName: string
+  ): Promise<void> => {
+    const {activeQueryText} = this.props
+    const {line, ch} = this.cursorPosition
+
+    const {updatedScript, cursorPosition} = insertVariable(
+      line,
+      ch,
+      activeQueryText,
+      variableName
+    )
+
+    await this.props.onSetActiveQueryText(updatedScript)
+
+    this.handleCursorPosition(cursorPosition)
+  }
+
   private handleInsertFluxFunction = async (
     functionName: string,
     fluxFunction: string
diff --git a/ui/src/timeMachine/components/variableToolbar/VariableItem.tsx b/ui/src/timeMachine/components/variableToolbar/VariableItem.tsx
index 6eaec83df51..30b5a8f85b4 100644
--- a/ui/src/timeMachine/components/variableToolbar/VariableItem.tsx
+++ b/ui/src/timeMachine/components/variableToolbar/VariableItem.tsx
@@ -7,12 +7,17 @@ import BoxTooltip from 'src/shared/components/BoxTooltip'
 
 // Types
 import {Variable} from '@influxdata/influx'
+import VariableLabel from 'src/timeMachine/components/variableToolbar/VariableLabel'
 
 interface Props {
   variable: Variable
+  onClickVariable: (variableName: string) => void
 }
 
-const VariableItem: FunctionComponent<Props> = ({variable}) => {
+const VariableItem: FunctionComponent<Props> = ({
+  variable,
+  onClickVariable,
+}) => {
   const trigger = useRef<HTMLDivElement>(null)
   const [tooltipVisible, setTooltipVisible] = useState(false)
 
@@ -29,7 +34,7 @@ const VariableItem: FunctionComponent<Props> = ({variable}) => {
       onMouseLeave={() => setTooltipVisible(false)}
       ref={trigger}
     >
-      <div className="variables-toolbar--label">{variable.name}</div>
+      <VariableLabel name={variable.name} onClickVariable={onClickVariable} />
       {tooltipVisible && (
         <BoxTooltip triggerRect={triggerRect as DOMRect}>
           <VariableTooltipContents variableID={variable.id} />
diff --git a/ui/src/timeMachine/components/variableToolbar/VariableLabel.tsx b/ui/src/timeMachine/components/variableToolbar/VariableLabel.tsx
new file mode 100644
index 00000000000..76a35c66126
--- /dev/null
+++ b/ui/src/timeMachine/components/variableToolbar/VariableLabel.tsx
@@ -0,0 +1,21 @@
+import React, {FunctionComponent} from 'react'
+
+interface Props {
+  name: string
+  onClickVariable: (name: string) => void
+}
+
+const VariableLabel: FunctionComponent<Props> = ({onClickVariable, name}) => {
+  return (
+    <div
+      className="variables-toolbar--label"
+      onClick={() => {
+        onClickVariable(name)
+      }}
+    >
+      {name}
+    </div>
+  )
+}
+
+export default VariableLabel
diff --git a/ui/src/timeMachine/components/variableToolbar/VariableToolbar.tsx b/ui/src/timeMachine/components/variableToolbar/VariableToolbar.tsx
index 4a7f8526e2d..f16d26c6093 100644
--- a/ui/src/timeMachine/components/variableToolbar/VariableToolbar.tsx
+++ b/ui/src/timeMachine/components/variableToolbar/VariableToolbar.tsx
@@ -18,11 +18,18 @@ import 'src/timeMachine/components/variableToolbar/VariableToolbar.scss'
 import {Variable} from '@influxdata/influx'
 import {AppState} from 'src/types/v2'
 
+interface OwnProps {
+  onClickVariable: (variableName: string) => void
+}
+
 interface StateProps {
   variables: Variable[]
 }
 
-const VariableToolbar: FunctionComponent<StateProps> = ({variables}) => {
+const VariableToolbar: FunctionComponent<OwnProps & StateProps> = ({
+  variables,
+  onClickVariable,
+}) => {
   const [searchTerm, setSearchTerm] = useState('')
 
   return (
@@ -33,7 +40,11 @@ const VariableToolbar: FunctionComponent<StateProps> = ({variables}) => {
           {variables
             .filter(v => v.name.includes(searchTerm))
             .map(v => (
-              <VariableItem variable={v} key={v.id} />
+              <VariableItem
+                variable={v}
+                key={v.id}
+                onClickVariable={onClickVariable}
+              />
             ))}
         </div>
       </FancyScrollbar>
diff --git a/ui/src/timeMachine/utils/scriptInsertion.ts b/ui/src/timeMachine/utils/insertFunction.ts
similarity index 100%
rename from ui/src/timeMachine/utils/scriptInsertion.ts
rename to ui/src/timeMachine/utils/insertFunction.ts
diff --git a/ui/src/timeMachine/utils/insertVariable.ts b/ui/src/timeMachine/utils/insertVariable.ts
new file mode 100644
index 00000000000..44d6fa0c883
--- /dev/null
+++ b/ui/src/timeMachine/utils/insertVariable.ts
@@ -0,0 +1,60 @@
+import {Position} from 'codemirror'
+
+const rejoinScript = (scriptLines: string[]): string => {
+  return scriptLines.join('\n')
+}
+
+const getCursorPosition = (
+  currentLineNumber: number,
+  currentCharacterNumber: number,
+  variableName: string
+) => {
+  return {
+    line: currentLineNumber,
+    ch: currentCharacterNumber + formatVariable(variableName).length,
+  }
+}
+
+const insertAtCharacter = (
+  lineNumber: number,
+  characterNumber: number,
+  scriptLines: string[],
+  variableName: string
+): string => {
+  const lineToEdit = scriptLines[lineNumber]
+  const front = lineToEdit.slice(0, characterNumber)
+  const back = lineToEdit.slice(characterNumber, lineToEdit.length)
+
+  const updatedLine = `${front}${formatVariable(variableName)}${back}`
+  scriptLines[lineNumber] = updatedLine
+
+  return rejoinScript(scriptLines)
+}
+
+const formatVariable = (variableName: string): string => {
+  return `v.${variableName}`
+}
+
+export const insertVariable = (
+  currentLineNumber: number,
+  currentCharacterNumber: number,
+  currentScript: string,
+  variableName: string
+): {updatedScript: string; cursorPosition: Position} => {
+  const scriptLines = currentScript.split('\n')
+
+  const updatedScript = insertAtCharacter(
+    currentLineNumber,
+    currentCharacterNumber,
+    scriptLines,
+    variableName
+  )
+
+  const updatedCursorPosition = getCursorPosition(
+    currentLineNumber,
+    currentCharacterNumber,
+    variableName
+  )
+
+  return {updatedScript, cursorPosition: updatedCursorPosition}
+}