diff --git a/site/src/pages/TemplateBuilder/BaseTemplateParametersStep.tsx b/site/src/pages/TemplateBuilder/BaseTemplateParametersStep.tsx
index b5f01f0763..b23cd716c1 100644
--- a/site/src/pages/TemplateBuilder/BaseTemplateParametersStep.tsx
+++ b/site/src/pages/TemplateBuilder/BaseTemplateParametersStep.tsx
@@ -11,7 +11,11 @@ import {
 	TemplateBuilderTitle,
 } from "#/pages/TemplateBuilder/TemplateBuilderHeader";
 import { cn } from "#/utils/cn";
-import type { ConfigurationFieldDefinition } from "./ConfigurationField";
+import {
+	type ConfigurationFieldDefinition,
+	ConfigurationFieldLabel,
+} from "./ConfigurationField";
+import { defaultPlaceholder } from "./defaultPlaceholder";
 import { TemplateConfiguration } from "./TemplateConfiguration";
 
 interface BaseTemplateParametersStepProps {
@@ -34,12 +38,13 @@ function variableToField(
 	onChange: (name: string, value: string) => void,
 ): ConfigurationFieldDefinition {
 	const id = `base-var-${variable.name}`;
+	const label = <ConfigurationFieldLabel variable={variable} />;
 
 	if (variable.type === "bool") {
 		return {
 			type: "switch",
 			id,
-			label: variable.name,
+			label,
 			description: variable.description || undefined,
 			required: variable.required,
 			checked: value === "true",
@@ -51,10 +56,12 @@ function variableToField(
 	return {
 		type: "text",
 		id,
-		label: variable.name,
+		label,
 		description: variable.description || undefined,
 		required: variable.required,
-		placeholder: variable.required ? "Required" : "Optional",
+		placeholder:
+			defaultPlaceholder(variable.default) ??
+			(variable.required ? "Required" : "Optional"),
 		field: {
 			name: variable.name,
 			id,
diff --git a/site/src/pages/TemplateBuilder/ConfigurationField.tsx b/site/src/pages/TemplateBuilder/ConfigurationField.tsx
index 0e7124d13a..b8e68550bf 100644
--- a/site/src/pages/TemplateBuilder/ConfigurationField.tsx
+++ b/site/src/pages/TemplateBuilder/ConfigurationField.tsx
@@ -1,4 +1,5 @@
 import type { FC, PropsWithChildren, ReactNode } from "react";
+import type { TemplateBuilderModuleVariable } from "#/api/typesGenerated";
 import { FormField } from "#/components/FormField/FormField";
 import { Label } from "#/components/Label/Label";
 import { RadioGroup, RadioGroupItem } from "#/components/RadioGroup/RadioGroup";
@@ -122,13 +123,15 @@ const SelectField: FC<SelectFieldDefinition> = ({
 		<div className="!col-end-1 flex flex-col gap-2">
 			<Label htmlFor={id}>
 				{label}
-				{required && (
+				{required ? (
 					<>
 						{" "}
 						<span className="text-sm font-bold text-content-destructive">
 							*
 						</span>
 					</>
+				) : (
+					<OptionalIndicator />
 				)}
 			</Label>
 			{description && (
@@ -170,13 +173,15 @@ const RadioField: FC<RadioFieldDefinition> = ({
 		<div className="flex flex-col gap-2">
 			<Label id={labelId}>
 				{label}
-				{required && (
+				{required ? (
 					<>
 						{" "}
 						<span className="text-sm font-bold text-content-destructive">
 							*
 						</span>
 					</>
+				) : (
+					<OptionalIndicator />
 				)}
 			</Label>
 			{description && (
@@ -293,13 +298,15 @@ const SwitchGroupField: FC<SwitchGroupFieldDefinition> = ({
 		<div className="flex flex-col gap-2">
 			<Label id={labelId}>
 				{label}
-				{required && (
+				{required ? (
 					<>
 						{" "}
 						<span className="text-sm font-bold text-content-destructive">
 							*
 						</span>
 					</>
+				) : (
+					<OptionalIndicator />
 				)}
 			</Label>
 			{description && (
@@ -335,3 +342,23 @@ export const ConfigurationFieldContainer: FC<PropsWithChildren> = ({
 		</div>
 	);
 };
+
+const OptionalIndicator: FC = () => {
+	return (
+		<>
+			{" "}
+			<span className="text-content-secondary">(optional)</span>
+		</>
+	);
+};
+
+export const ConfigurationFieldLabel: FC<{
+	variable: TemplateBuilderModuleVariable;
+}> = ({ variable }) => {
+	return (
+		<>
+			{variable.name}
+			{!variable.required && <OptionalIndicator />}
+		</>
+	);
+};
diff --git a/site/src/pages/TemplateBuilder/ModuleSettingsStep.tsx b/site/src/pages/TemplateBuilder/ModuleSettingsStep.tsx
index 428182a1a5..d1a720d8d1 100644
--- a/site/src/pages/TemplateBuilder/ModuleSettingsStep.tsx
+++ b/site/src/pages/TemplateBuilder/ModuleSettingsStep.tsx
@@ -11,7 +11,11 @@ import {
 	TemplateBuilderSubtitle,
 	TemplateBuilderTitle,
 } from "#/pages/TemplateBuilder/TemplateBuilderHeader";
-import type { ConfigurationFieldDefinition } from "./ConfigurationField";
+import {
+	type ConfigurationFieldDefinition,
+	ConfigurationFieldLabel,
+} from "./ConfigurationField";
+import { defaultPlaceholder } from "./defaultPlaceholder";
 import { ModuleConfiguration } from "./ModuleConfiguration";
 
 interface ModuleSettingsStepProps {
@@ -31,12 +35,13 @@ function variableToField(
 	onChange: (name: string, value: string) => void,
 ): ConfigurationFieldDefinition {
 	const id = `mod-${moduleId}-${variable.name}`;
+	const label = <ConfigurationFieldLabel variable={variable} />;
 
 	if (variable.type === "bool") {
 		return {
 			type: "switch",
 			id,
-			label: variable.name,
+			label,
 			description: variable.description || undefined,
 			required: variable.required,
 			checked: value === "true",
@@ -48,10 +53,12 @@ function variableToField(
 	return {
 		type: "text",
 		id,
-		label: variable.name,
+		label,
 		description: variable.description || undefined,
 		required: variable.required,
-		placeholder: variable.required ? "Required" : "Optional",
+		placeholder:
+			defaultPlaceholder(variable.default) ??
+			(variable.required ? "Required" : "Optional"),
 		field: {
 			name: variable.name,
 			id,
diff --git a/site/src/pages/TemplateBuilder/defaultPlaceholder.test.ts b/site/src/pages/TemplateBuilder/defaultPlaceholder.test.ts
new file mode 100644
index 0000000000..90eef2c455
--- /dev/null
+++ b/site/src/pages/TemplateBuilder/defaultPlaceholder.test.ts
@@ -0,0 +1,28 @@
+import { defaultPlaceholder } from "./defaultPlaceholder";
+
+describe("defaultPlaceholder", () => {
+	it("formats numeric defaults, including zero", () => {
+		expect(defaultPlaceholder(13337)).toBe("13337");
+		expect(defaultPlaceholder(0)).toBe("0");
+	});
+
+	it("formats boolean defaults", () => {
+		expect(defaultPlaceholder(false)).toBe("false");
+		expect(defaultPlaceholder(true)).toBe("true");
+	});
+
+	it("returns non-empty string defaults unchanged", () => {
+		expect(defaultPlaceholder("v0.10.0")).toBe("v0.10.0");
+	});
+
+	it("returns undefined for empty or absent defaults", () => {
+		expect(defaultPlaceholder("")).toBeUndefined();
+		expect(defaultPlaceholder(undefined)).toBeUndefined();
+		expect(defaultPlaceholder(null)).toBeUndefined();
+	});
+
+	it("returns undefined for object and array defaults", () => {
+		expect(defaultPlaceholder({ key: "value" })).toBeUndefined();
+		expect(defaultPlaceholder(["a", "b"])).toBeUndefined();
+	});
+});
diff --git a/site/src/pages/TemplateBuilder/defaultPlaceholder.ts b/site/src/pages/TemplateBuilder/defaultPlaceholder.ts
new file mode 100644
index 0000000000..9370ad64a5
--- /dev/null
+++ b/site/src/pages/TemplateBuilder/defaultPlaceholder.ts
@@ -0,0 +1,22 @@
+/**
+ * Coerces a module variable's `default` into placeholder text.
+ *
+ * `TemplateBuilderModuleVariable.default` is generated as
+ * `Record<string, string>` because every `json.RawMessage` field maps to that
+ * type, but the actual wire value is a JSON scalar (string, number, or
+ * boolean). The parameter is typed `unknown` so the generated value is accepted
+ * without a cast.
+ *
+ * An empty-string default returns `undefined` so callers fall back to their
+ * existing Required/Optional hint. Object or array defaults also return
+ * `undefined` since they have no meaningful placeholder representation.
+ */
+export function defaultPlaceholder(value: unknown): string | undefined {
+	if (typeof value === "number" || typeof value === "boolean") {
+		return String(value);
+	}
+	if (typeof value === "string" && value !== "") {
+		return value;
+	}
+	return undefined;
+}