diff --git a/src/pytfe/resources/variable.py b/src/pytfe/resources/variable.py
index 60ee9245..ca160c25 100644
--- a/src/pytfe/resources/variable.py
+++ b/src/pytfe/resources/variable.py
@@ -36,12 +36,7 @@ def list(
             # Add any options if needed in the future
             pass
 
-        for item in self._list(path, params=params):
-            attr = item.get("attributes", {}) or {}
-            var_id = item.get("id", "")
-            variable_data = dict(attr)
-            variable_data["id"] = var_id
-            yield Variable(**variable_data)
+        yield from self._list_variables(path, params=params)
 
     def list_all(
         self, workspace_id: str, options: VariableListOptions | None = None
@@ -56,7 +51,15 @@ def list_all(
             # Add any options if needed in the future
             pass
 
-        for item in self._list(path, params=params):
+        yield from self._list_variables(path, params=params)
+
+    def _list_variables(
+        self, path: str, *, params: dict[str, Any]
+    ) -> Iterator[Variable]:
+        response = self.t.request("GET", path, params=params)
+        data = response.json().get("data", [])
+
+        for item in data:
             attr = item.get("attributes", {}) or {}
             var_id = item.get("id", "")
             variable_data = dict(attr)
diff --git a/tests/units/test_variable.py b/tests/units/test_variable.py
new file mode 100644
index 00000000..d9ecaf59
--- /dev/null
+++ b/tests/units/test_variable.py
@@ -0,0 +1,70 @@
+# Copyright IBM Corp. 2025, 2026
+# SPDX-License-Identifier: MPL-2.0
+
+from unittest.mock import Mock
+
+import pytest
+
+from pytfe.models.variable import CategoryType, Variable
+from pytfe.resources.variable import Variables
+
+
+class TestVariables:
+    def setup_method(self):
+        self.mock_transport = Mock()
+        self.variables_service = Variables(self.mock_transport)
+        self.workspace_id = "ws-test123"
+
+    def _mock_response(self, count: int) -> Mock:
+        mock_response = Mock()
+        mock_response.json.return_value = {
+            "data": [
+                {
+                    "id": f"var-{index}",
+                    "type": "vars",
+                    "attributes": {
+                        "key": f"key_{index}",
+                        "value": f"value_{index}",
+                        "category": "env",
+                        "hcl": False,
+                        "sensitive": False,
+                    },
+                }
+                for index in range(count)
+            ],
+            "meta": None,
+        }
+        return mock_response
+
+    def test_list_variables_uses_single_unpaginated_request(self):
+        self.mock_transport.request.return_value = self._mock_response(101)
+
+        result = list(self.variables_service.list(self.workspace_id))
+
+        assert len(result) == 101
+        assert isinstance(result[0], Variable)
+        assert result[0].id == "var-0"
+        assert result[0].key == "key_0"
+        assert result[0].category == CategoryType.ENV
+        self.mock_transport.request.assert_called_once_with(
+            "GET", f"/api/v2/workspaces/{self.workspace_id}/vars", params={}
+        )
+
+    def test_list_all_variables_uses_single_unpaginated_request(self):
+        self.mock_transport.request.return_value = self._mock_response(101)
+
+        result = list(self.variables_service.list_all(self.workspace_id))
+
+        assert len(result) == 101
+        assert result[100].id == "var-100"
+        self.mock_transport.request.assert_called_once_with(
+            "GET", f"/api/v2/workspaces/{self.workspace_id}/all-vars", params={}
+        )
+
+    def test_list_variables_invalid_workspace_id(self):
+        with pytest.raises(ValueError, match="invalid workspace ID"):
+            list(self.variables_service.list(""))
+
+    def test_list_all_variables_invalid_workspace_id(self):
+        with pytest.raises(ValueError, match="invalid workspace ID"):
+            list(self.variables_service.list_all(""))