diff --git a/backend/windmill-store/src/resources.rs b/backend/windmill-store/src/resources.rs
index 8fa04f7780..3cc878035c 100644
--- a/backend/windmill-store/src/resources.rs
+++ b/backend/windmill-store/src/resources.rs
@@ -517,6 +517,7 @@ pub async fn get_resource_value_interpolated_internal<'a>(
             value,
             &job_id,
             token_for_context,
+            0,
         )
         .await?;
         if allow_cache {
@@ -535,6 +536,7 @@ pub async fn transform_json_value(
     v: Value,
     job_id: &Option<Uuid>,
     token: Option<&str>,
+    depth: u8,
 ) -> Result<Value> {
     match v {
         Value::String(y) if y.starts_with("$var:") => {
@@ -563,7 +565,8 @@ pub async fn transform_json_value(
             tx.commit().await?;
             let v = not_found_if_none(v, "Resource", path)?;
             if let Some(v) = v {
-                transform_json_value(db_with_opt_authed, workspace, v, job_id, token).await
+                transform_json_value(db_with_opt_authed, workspace, v, job_id, token, depth + 1)
+                    .await
             } else {
                 Ok(Value::Null)
             }
@@ -636,10 +639,41 @@ pub async fn transform_json_value(
                 .unwrap_or_else(|| y);
             Ok(serde_json::json!(value))
         }
+        Value::Array(mut arr) if depth <= 2 && arr.len() <= 1000 => {
+            for i in 0..arr.len() {
+                let val = std::mem::take(&mut arr[i]);
+                arr[i] = transform_json_value(
+                    db_with_opt_authed,
+                    workspace,
+                    val,
+                    job_id,
+                    token,
+                    depth + 1,
+                )
+                .await?;
+            }
+            Ok(Value::Array(arr))
+        }
+        Value::Array(arr) => {
+            if arr.len() > 1000 {
+                tracing::warn!(
+                    "Array with {} items exceeds 1000 item limit for variable/resource resolution, skipping",
+                    arr.len()
+                );
+            }
+            Ok(Value::Array(arr))
+        }
         Value::Object(mut m) => {
             for (a, b) in m.clone().into_iter() {
-                let v =
-                    transform_json_value(db_with_opt_authed, workspace, b, job_id, token).await?;
+                let v = transform_json_value(
+                    db_with_opt_authed,
+                    workspace,
+                    b,
+                    job_id,
+                    token,
+                    depth + 1,
+                )
+                .await?;
                 m.insert(a.clone(), v);
             }
             Ok(Value::Object(m))
@@ -1822,6 +1856,7 @@ pub async fn interpolate(
         value,
         &None,
         None,
+        0,
     )
     .await?
     {
@@ -1829,3 +1864,84 @@ pub async fn interpolate(
         v => Err(anyhow::anyhow!("Expected string, got {:?}", v)),
     }
 }
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+    use serde_json::json;
+    use windmill_common::audit::AuditAuthor;
+    use windmill_common::db::DbWithOptAuthed;
+
+    fn test_db_with_opt_authed(db: DB) -> DbWithOptAuthed<'static, ApiAuthed> {
+        DbWithOptAuthed::DB {
+            db,
+            audit_author: AuditAuthor {
+                username: "test".to_string(),
+                email: "test@test.com".to_string(),
+                username_override: None,
+                token_prefix: None,
+            },
+        }
+    }
+
+    #[tokio::test]
+    async fn test_transform_array_over_1000_passthrough() {
+        let db_url = std::env::var("DATABASE_URL")
+            .unwrap_or("postgres://postgres:changeme@localhost:5432/windmill".to_string());
+        let pool = sqlx::PgPool::connect(&db_url).await.unwrap();
+        let dba = test_db_with_opt_authed(pool);
+
+        let arr: Vec<Value> = (0..1001).map(|i| json!(format!("$var:x/{i}"))).collect();
+        let input = Value::Array(arr.clone());
+
+        let result = transform_json_value(&dba, "test", input, &None, None, 0)
+            .await
+            .unwrap();
+
+        assert_eq!(result, Value::Array(arr));
+    }
+
+    #[tokio::test]
+    async fn test_transform_array_non_matching_strings_passthrough() {
+        let db_url = std::env::var("DATABASE_URL")
+            .unwrap_or("postgres://postgres:changeme@localhost:5432/windmill".to_string());
+        let pool = sqlx::PgPool::connect(&db_url).await.unwrap();
+        let dba = test_db_with_opt_authed(pool);
+
+        let input = json!(["hello", "world", 42, true, null, {"key": "val"}]);
+
+        let result = transform_json_value(&dba, "test", input.clone(), &None, None, 0)
+            .await
+            .unwrap();
+
+        assert_eq!(result, input);
+    }
+
+    #[tokio::test]
+    async fn test_transform_array_resolved_inside_object() {
+        let db_url = std::env::var("DATABASE_URL")
+            .unwrap_or("postgres://postgres:changeme@localhost:5432/windmill".to_string());
+        let pool = sqlx::PgPool::connect(&db_url).await.unwrap();
+        let dba = test_db_with_opt_authed(pool);
+
+        let input = json!({"urls": ["$var:u/test/nonexistent", "plain"]});
+
+        let result = transform_json_value(&dba, "test", input, &None, None, 0).await;
+
+        assert!(result.is_err());
+    }
+
+    #[tokio::test]
+    async fn test_transform_array_attempts_matching_items() {
+        let db_url = std::env::var("DATABASE_URL")
+            .unwrap_or("postgres://postgres:changeme@localhost:5432/windmill".to_string());
+        let pool = sqlx::PgPool::connect(&db_url).await.unwrap();
+        let dba = test_db_with_opt_authed(pool);
+
+        let input = json!(["$var:u/test/nonexistent", "plain"]);
+
+        let result = transform_json_value(&dba, "test", input, &None, None, 0).await;
+
+        assert!(result.is_err());
+    }
+}
diff --git a/backend/windmill-worker/src/common.rs b/backend/windmill-worker/src/common.rs
index abcb2dbbdd..1be0f474da 100644
--- a/backend/windmill-worker/src/common.rs
+++ b/backend/windmill-worker/src/common.rs
@@ -170,7 +170,8 @@ pub async fn transform_json<'a>(
             let value = serde_json::from_str(inner_vs).map_err(|e| {
                 error::Error::internal_err(format!("Error while parsing inner arg: {e:#}"))
             })?;
-            let transformed = transform_json_value(&k, &client, workspace, value, job, db).await?;
+            let transformed =
+                transform_json_value(&k, &client, workspace, value, job, db, 0).await?;
             let as_raw = serde_json::from_value(transformed).map_err(|e| {
                 error::Error::internal_err(format!("Error while parsing inner arg: {e:#}"))
             })?;
@@ -196,7 +197,8 @@ pub async fn transform_json_as_values<'a>(
             let value = serde_json::from_str(inner_vs).map_err(|e| {
                 error::Error::internal_err(format!("Error while parsing inner arg: {e:#}"))
             })?;
-            let transformed = transform_json_value(&k, &client, workspace, value, job, db).await?;
+            let transformed =
+                transform_json_value(&k, &client, workspace, value, job, db, 0).await?;
             let as_raw = serde_json::from_value(transformed).map_err(|e| {
                 error::Error::internal_err(format!("Error while parsing inner arg: {e:#}"))
             })?;
@@ -237,6 +239,7 @@ pub async fn transform_json_value(
     v: Value,
     job: &MiniPulledJob,
     conn: &Connection,
+    depth: u8,
 ) -> error::Result<Value> {
     match v {
         Value::String(y) if y.starts_with("$var:") => {
@@ -306,11 +309,28 @@ pub async fn transform_json_value(
                 .unwrap_or_else(|| y);
             Ok(json!(value))
         }
+        Value::Array(mut arr) if depth <= 2 && arr.len() <= 1000 => {
+            for i in 0..arr.len() {
+                let val = std::mem::take(&mut arr[i]);
+                arr[i] = transform_json_value(name, client, workspace, val, job, conn, depth + 1)
+                    .await?;
+            }
+            Ok(Value::Array(arr))
+        }
+        Value::Array(arr) => {
+            if arr.len() > 1000 {
+                tracing::warn!(
+                    "Array with {} items exceeds 1000 item limit for variable/resource resolution, skipping",
+                    arr.len()
+                );
+            }
+            Ok(Value::Array(arr))
+        }
         Value::Object(mut m) => {
             for (a, b) in m.clone().into_iter() {
                 m.insert(
                     a.clone(),
-                    transform_json_value(&a, client, workspace, b, job, conn).await?,
+                    transform_json_value(&a, client, workspace, b, job, conn, depth + 1).await?,
                 );
             }
             Ok(Value::Object(m))
@@ -1408,3 +1428,128 @@ impl MaybeLock {
         }
     }
 }
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+    use serde_json::json;
+    use windmill_common::client::AuthedClient;
+
+    fn test_client() -> AuthedClient {
+        AuthedClient::new(
+            "http://localhost:0".to_string(),
+            "test".to_string(),
+            "test-token".to_string(),
+            None,
+        )
+    }
+
+    fn test_job() -> MiniPulledJob {
+        MiniPulledJob {
+            workspace_id: "test".to_string(),
+            id: uuid::Uuid::nil(),
+            args: None,
+            parent_job: None,
+            created_by: "test".to_string(),
+            scheduled_for: chrono::Utc::now(),
+            started_at: None,
+            runnable_path: None,
+            kind: windmill_common::jobs::JobKind::Noop,
+            runnable_id: None,
+            canceled_reason: None,
+            canceled_by: None,
+            permissioned_as: "test".to_string(),
+            permissioned_as_email: "test@test.com".to_string(),
+            flow_status: None,
+            tag: "test".to_string(),
+            script_lang: None,
+            same_worker: false,
+            pre_run_error: None,
+            concurrent_limit: None,
+            concurrency_time_window_s: None,
+            flow_innermost_root_job: None,
+            root_job: None,
+            timeout: None,
+            flow_step_id: None,
+            cache_ttl: None,
+            cache_ignore_s3_path: None,
+            priority: None,
+            preprocessed: None,
+            script_entrypoint_override: None,
+            trigger: None,
+            trigger_kind: None,
+            visible_to_owner: false,
+            permissioned_as_end_user_email: None,
+            runnable_settings_handle: None,
+        }
+    }
+
+    #[tokio::test]
+    async fn test_transform_array_over_1000_passthrough() {
+        let db_url = std::env::var("DATABASE_URL")
+            .unwrap_or("postgres://postgres:changeme@localhost:5432/windmill".to_string());
+        let pool = sqlx::PgPool::connect(&db_url).await.unwrap();
+        let conn = Connection::Sql(pool);
+        let client = test_client();
+        let job = test_job();
+
+        let arr: Vec<Value> = (0..1001).map(|i| json!(format!("$var:x/{i}"))).collect();
+        let input = Value::Array(arr.clone());
+
+        let result = transform_json_value("test", &client, "test", input, &job, &conn, 0)
+            .await
+            .unwrap();
+
+        assert_eq!(result, Value::Array(arr));
+    }
+
+    #[tokio::test]
+    async fn test_transform_array_non_matching_strings_passthrough() {
+        let db_url = std::env::var("DATABASE_URL")
+            .unwrap_or("postgres://postgres:changeme@localhost:5432/windmill".to_string());
+        let pool = sqlx::PgPool::connect(&db_url).await.unwrap();
+        let conn = Connection::Sql(pool);
+        let client = test_client();
+        let job = test_job();
+
+        let input = json!(["hello", "world", 42, true, null, {"key": "val"}]);
+
+        let result = transform_json_value("test", &client, "test", input.clone(), &job, &conn, 0)
+            .await
+            .unwrap();
+
+        assert_eq!(result, input);
+    }
+
+    #[tokio::test]
+    async fn test_transform_array_resolved_inside_object() {
+        let db_url = std::env::var("DATABASE_URL")
+            .unwrap_or("postgres://postgres:changeme@localhost:5432/windmill".to_string());
+        let pool = sqlx::PgPool::connect(&db_url).await.unwrap();
+        let conn = Connection::Sql(pool);
+        let client = test_client();
+        let job = test_job();
+
+        let input = json!({"urls": ["$var:u/test/nonexistent", "plain"]});
+
+        let result = transform_json_value("test", &client, "test", input, &job, &conn, 0).await;
+
+        assert!(result.is_err());
+    }
+
+    #[tokio::test]
+    async fn test_transform_array_attempts_matching_items() {
+        let db_url = std::env::var("DATABASE_URL")
+            .unwrap_or("postgres://postgres:changeme@localhost:5432/windmill".to_string());
+        let pool = sqlx::PgPool::connect(&db_url).await.unwrap();
+        let conn = Connection::Sql(pool);
+        let client = test_client();
+        let job = test_job();
+
+        let input = json!(["$var:u/test/nonexistent", "plain"]);
+
+        let result = transform_json_value("test", &client, "test", input, &job, &conn, 0).await;
+
+        assert!(result.is_err());
+    }
+}