diff --git a/qase-robotframework/changelog.md b/qase-robotframework/changelog.md
index c4933ea7..d0f52282 100644
--- a/qase-robotframework/changelog.md
+++ b/qase-robotframework/changelog.md
@@ -1,3 +1,9 @@
+# qase-robotframework 4.0.7
+
+## What's new
+
+- Fixed an issue with handling steps which contains variables.
+
 # qase-robotframework 4.0.6
 
 ## What's new
diff --git a/qase-robotframework/pyproject.toml b/qase-robotframework/pyproject.toml
index 5f656d63..e042708d 100644
--- a/qase-robotframework/pyproject.toml
+++ b/qase-robotframework/pyproject.toml
@@ -4,7 +4,7 @@ build-backend = "setuptools.build_meta"
 
 [project]
 name = "qase-robotframework"
-version = "4.0.6"
+version = "4.0.7"
 description = "Qase Robot Framework Plugin"
 readme = "README.md"
 authors = [{name = "Qase Team", email = "support@qase.io"}]
diff --git a/qase-robotframework/src/qase/robotframework/listener.py b/qase-robotframework/src/qase/robotframework/listener.py
index eceeb0a9..b35b8479 100644
--- a/qase-robotframework/src/qase/robotframework/listener.py
+++ b/qase-robotframework/src/qase/robotframework/listener.py
@@ -1,5 +1,6 @@
 import logging
 import pathlib
+import re
 import uuid
 
 from filelock import FileLock
@@ -193,7 +194,235 @@ def __extract_tests_with_suites(self, suite, parent_suites=None):
 
         return test_dict
 
-    def __parse_steps(self, result) -> List[Step]:
+    def __extract_resolved_variables(self, body_element, accumulated_vars: dict = None) -> dict:
+        """
+        Extract resolved variable values from log messages in the body element.
+        Robot Framework logs variable assignments in format: ${variable} = value
+        Returns a dictionary mapping variable names to their resolved values.
+        Accumulates variables from all nested messages recursively.
+        """
+        if accumulated_vars is None:
+            accumulated_vars = {}
+        
+        if not hasattr(body_element, "body"):
+            return accumulated_vars
+        
+        # Pattern to match variable assignments: ${variable} = value
+        # This matches patterns like: ${full_url} = https://jsonplaceholder.typicode.com/users
+        # Also handles nested variables like ${response.status_code}
+        # The pattern captures everything after '=' until end of line or next variable assignment
+        var_pattern = re.compile(r'\$\{([^}]+)\}\s*=\s*(.+?)(?=\s+\$\{|$)')
+        
+        # Also try to extract from BuiltIn API for variables that might not be in messages
+        try:
+            builtin = BuiltIn()
+        except Exception:
+            builtin = None
+        
+        for item in body_element.body:
+            if hasattr(item, "type") and item.type == "MESSAGE":
+                # Try different possible attributes for message content
+                message_text = None
+                if hasattr(item, "message"):
+                    message_text = str(item.message)
+                elif hasattr(item, "msg"):
+                    message_text = str(item.msg)
+                elif hasattr(item, "text"):
+                    message_text = str(item.text)
+                
+                if message_text:
+                    # Try to match variable assignment pattern
+                    match = var_pattern.search(message_text)
+                    if match:
+                        var_name = match.group(1)
+                        var_value = match.group(2).strip()
+                        # Remove trailing commas, semicolons, or other punctuation that might be captured
+                        var_value = var_value.rstrip(',;')
+                        # Store both with and without ${} for flexible matching
+                        accumulated_vars[var_name] = var_value
+                        accumulated_vars[f"${{{var_name}}}"] = var_value
+                        # Also handle nested variable access like response.status_code
+                        if '.' in var_name:
+                            parts = var_name.split('.')
+                            base_var = parts[0]
+                            accumulated_vars[f"${{{base_var}}}"] = var_value  # Store base variable too
+                    
+                    # Also try to extract variable names mentioned in the message
+                    # and resolve them via BuiltIn API if available
+                    if builtin:
+                        # Find all variable references in the message
+                        var_refs = re.findall(r'\$\{([^}]+)\}', message_text)
+                        for var_ref in var_refs:
+                            if var_ref not in accumulated_vars and f"${{{var_ref}}}" not in accumulated_vars:
+                                try:
+                                    var_value = builtin.get_variable_value(f"${{{var_ref}}}")
+                                    if var_value is not None:
+                                        accumulated_vars[var_ref] = str(var_value)
+                                        accumulated_vars[f"${{{var_ref}}}"] = str(var_value)
+                                except Exception:
+                                    pass
+            
+            # Recursively process nested body elements to accumulate variables
+            if hasattr(item, "body") and item.body:
+                self.__extract_resolved_variables(item, accumulated_vars)
+        
+        return accumulated_vars
+
+    def __resolve_variables_in_data(self, data: str, resolved_vars: dict) -> str:
+        """
+        Replace variable placeholders in data string with their resolved values.
+        Uses regex to match variable patterns and replace them with resolved values.
+        Aggressively uses BuiltIn API to resolve any remaining variables.
+        """
+        if not data:
+            return data
+        
+        result = data
+        # Sort by length (longest first) to handle nested variables correctly
+        sorted_vars = sorted(resolved_vars.items(), key=lambda x: len(x[0]), reverse=True)
+        
+        for var_placeholder, var_value in sorted_vars:
+            # Replace all occurrences of the variable placeholder
+            # Use regex to match exact variable patterns (e.g., ${var} but not ${var_suffix})
+            if var_placeholder.startswith('${') and var_placeholder.endswith('}'):
+                # Escape special regex characters in the variable name
+                escaped_var = re.escape(var_placeholder)
+                # Match the variable as a whole word/pattern
+                pattern = re.compile(escaped_var)
+                result = pattern.sub(str(var_value), result)
+            else:
+                # For non-brace variables, use simple string replacement
+                result = result.replace(var_placeholder, str(var_value))
+        
+        # Aggressively try to resolve any remaining variables using BuiltIn API
+        # This handles cases where variables weren't captured in messages,
+        # including object attributes like response.status_code
+        try:
+            builtin = BuiltIn()
+            
+            # Find all ${variable} patterns (scalar variables)
+            scalar_vars = re.findall(r'\$\{([^}]+)\}', result)
+            for var_name in scalar_vars:
+                # Skip if already resolved
+                if var_name in resolved_vars or f"${{{var_name}}}" in resolved_vars:
+                    continue
+                
+                try:
+                    # Handle cases like ${<Response [200]>.status_code} or ${response.status_code}
+                    if '.' in var_name and ('<' in var_name or '>' in var_name or not var_name.startswith('<')):
+                        # This is an object attribute access
+                        # Pattern: ${<Object [info]>.attribute} or ${object.attribute}
+                        parts = var_name.split('.')
+                        # Remove angle brackets and brackets if present from base name
+                        base_name = parts[0].strip('<>[]').strip()
+                        # Remove any text in brackets like [200]
+                        base_name = re.sub(r'\[.*?\]', '', base_name).strip()
+                        
+                        # Try to get base variable
+                        base_value = builtin.get_variable_value(f"${{{base_name}}}")
+                        if base_value is not None:
+                            # Try to get nested attribute
+                            current = base_value
+                            for attr in parts[1:]:
+                                if hasattr(current, attr):
+                                    current = getattr(current, attr)
+                                elif isinstance(current, dict) and attr in current:
+                                    current = current[attr]
+                                elif hasattr(current, '__getitem__'):
+                                    try:
+                                        current = current[attr]
+                                    except (KeyError, TypeError, IndexError):
+                                        current = None
+                                        break
+                                else:
+                                    current = None
+                                    break
+                            
+                            if current is not None:
+                                result = result.replace(f"${{{var_name}}}", str(current))
+                                continue
+                    
+                    # Try to get variable value normally
+                    var_value = builtin.get_variable_value(f"${{{var_name}}}")
+                    if var_value is not None:
+                        # Replace all occurrences
+                        result = result.replace(f"${{{var_name}}}", str(var_value))
+                except Exception:
+                    # If variable resolution fails, try alternative approaches
+                    if '.' in var_name:
+                        try:
+                            # Try to split and resolve nested attributes
+                            parts = var_name.split('.')
+                            # Remove angle brackets and brackets if present
+                            base_name = parts[0].strip('<>[]').strip()
+                            # Remove any text in brackets
+                            base_name = re.sub(r'\[.*?\]', '', base_name).strip()
+                            
+                            # Try to get base variable
+                            base_value = builtin.get_variable_value(f"${{{base_name}}}")
+                            if base_value is not None:
+                                # Try to get nested attribute
+                                current = base_value
+                                for attr in parts[1:]:
+                                    if hasattr(current, attr):
+                                        current = getattr(current, attr)
+                                    elif isinstance(current, dict) and attr in current:
+                                        current = current[attr]
+                                    elif hasattr(current, '__getitem__'):
+                                        try:
+                                            current = current[attr]
+                                        except (KeyError, TypeError, IndexError):
+                                            current = None
+                                            break
+                                    else:
+                                        current = None
+                                        break
+                                
+                                if current is not None:
+                                    result = result.replace(f"${{{var_name}}}", str(current))
+                        except Exception:
+                            pass
+            
+            # Find all @{variable} patterns (list variables)
+            list_vars = re.findall(r'@\{([^}]+)\}', result)
+            for var_name in list_vars:
+                try:
+                    var_value = builtin.get_variable_value(f"@{{{var_name}}}")
+                    if var_value is not None:
+                        # Convert list to string representation
+                        if isinstance(var_value, (list, tuple)):
+                            list_str = ', '.join(str(item) for item in var_value)
+                            result = result.replace(f"@{{{var_name}}}", list_str)
+                        else:
+                            result = result.replace(f"@{{{var_name}}}", str(var_value))
+                except Exception:
+                    pass
+            
+            # Also handle &{variable} patterns (dictionary variables)
+            dict_vars = re.findall(r'&\{([^}]+)\}', result)
+            for var_name in dict_vars:
+                try:
+                    var_value = builtin.get_variable_value(f"&{{{var_name}}}")
+                    if var_value is not None:
+                        result = result.replace(f"&{{{var_name}}}", str(var_value))
+                except Exception:
+                    pass
+                    
+        except Exception:
+            # If BuiltIn is not available or fails, continue with what we have
+            pass
+        
+        return result
+
+    def __parse_steps(self, result, accumulated_vars: dict = None) -> List[Step]:
+        """
+        Parse test steps from Robot Framework result, resolving variable values.
+        Accumulates resolved variables from all previous steps to resolve variables
+        in subsequent steps.
+        """
+        if accumulated_vars is None:
+            accumulated_vars = {}
+        
         steps = []
 
         for i in range(len(result.body)):
@@ -201,7 +430,7 @@ def __parse_steps(self, result) -> List[Step]:
                 continue
 
             if hasattr(result.body[i], "type") and result.body[i].type == "IF/ELSE ROOT":
-                condition_steps = self.__parse_condition_steps(result.body[i])
+                condition_steps = self.__parse_condition_steps(result.body[i], accumulated_vars.copy())
                 for step in condition_steps:
                     steps.append(step)
                 continue
@@ -236,6 +465,48 @@ def __parse_steps(self, result) -> List[Step]:
                     if hasattr(body_element, "values") and body_element.values:
                         data = ' '.join(str(val) for val in body_element.values)
 
+            # Extract resolved variable values from log messages in this step
+            # This will also accumulate variables from nested messages
+            step_resolved_vars = self.__extract_resolved_variables(body_element, accumulated_vars.copy())
+            
+            # Merge newly resolved variables into accumulated variables
+            accumulated_vars.update(step_resolved_vars)
+            
+            # Also try to resolve variables directly from BuiltIn API before resolving in data
+            # This helps with variables that weren't logged but are available in the context
+            if data:
+                try:
+                    builtin = BuiltIn()
+                    # Find all variable patterns in data
+                    all_vars = re.findall(r'[\$@&]\{([^}]+)\}', data)
+                    for var_name in all_vars:
+                        if var_name not in accumulated_vars and f"${{{var_name}}}" not in accumulated_vars:
+                            try:
+                                # Try scalar variable
+                                var_value = builtin.get_variable_value(f"${{{var_name}}}")
+                                if var_value is not None:
+                                    accumulated_vars[var_name] = str(var_value)
+                                    accumulated_vars[f"${{{var_name}}}"] = str(var_value)
+                            except Exception:
+                                try:
+                                    # Try list variable
+                                    var_value = builtin.get_variable_value(f"@{{{var_name}}}")
+                                    if var_value is not None:
+                                        if isinstance(var_value, (list, tuple)):
+                                            var_str = ', '.join(str(item) for item in var_value)
+                                        else:
+                                            var_str = str(var_value)
+                                        accumulated_vars[var_name] = var_str
+                                        accumulated_vars[f"@{{{var_name}}}"] = var_str
+                                except Exception:
+                                    pass
+                except Exception:
+                    pass
+            
+            # Resolve variables in data using all accumulated variables
+            if data and accumulated_vars:
+                data = self.__resolve_variables_in_data(data, accumulated_vars)
+
             step = Step(
                 step_type=StepType.GHERKIN,
                 id=str(uuid.uuid4()),
@@ -255,19 +526,23 @@ def __parse_steps(self, result) -> List[Step]:
             step.execution.end_time = result.body[i].end_time.timestamp()
 
             if hasattr(result.body[i], "body"):
-                step.steps = self.__parse_steps(result.body[i])
+                # Recursively parse nested steps, passing accumulated variables
+                step.steps = self.__parse_steps(result.body[i], accumulated_vars.copy())
 
             steps.append(step)
 
         return steps
 
-    def __parse_condition_steps(self, result_step) -> List[Step]:
+    def __parse_condition_steps(self, result_step, accumulated_vars: dict = None) -> List[Step]:
+        if accumulated_vars is None:
+            accumulated_vars = {}
+        
         steps = []
 
         for body_element in result_step.body:
             if hasattr(body_element, "type"):
                 step = Listener._create_gherkin_step_with_type(body_element)
-                child_steps = self.__parse_steps(body_element)
+                child_steps = self.__parse_steps(body_element, accumulated_vars.copy())
 
                 Listener._set_step_status_based_on_children(step, child_steps)
                 step.steps = child_steps