diff --git a/CHANGELOG.md b/CHANGELOG.md
index 673a1ac8f..6815b0c8d 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -12,6 +12,7 @@ IMPROVEMENTS:
 
 BUG FIXES:
 
+  * core: Default variable file "terraform.tfvars" is auto-loaded. [GH-59]
   * providers/cloudflare: Include the proper bins so the cloudflare
     provider is compiled
   * providers/aws: Engine version for RDS now properly set [GH-118]
diff --git a/command/apply.go b/command/apply.go
index a1453bf99..41d44db14 100644
--- a/command/apply.go
+++ b/command/apply.go
@@ -23,7 +23,7 @@ func (c *ApplyCommand) Run(args []string) int {
 	var refresh bool
 	var statePath, stateOutPath, backupPath string
 
-	args = c.Meta.process(args)
+	args = c.Meta.process(args, true)
 
 	cmdFlags := c.Meta.flagSet("apply")
 	cmdFlags.BoolVar(&refresh, "refresh", true, "refresh")
diff --git a/command/apply_test.go b/command/apply_test.go
index 7b8289ea2..9a5edcf60 100644
--- a/command/apply_test.go
+++ b/command/apply_test.go
@@ -652,6 +652,57 @@ func TestApply_varFile(t *testing.T) {
 	}
 }
 
+func TestApply_varFileDefault(t *testing.T) {
+	varFileDir := testTempDir(t)
+	varFilePath := filepath.Join(varFileDir, "terraform.tfvars")
+	if err := ioutil.WriteFile(varFilePath, []byte(applyVarFile), 0644); err != nil {
+		t.Fatalf("err: %s", err)
+	}
+
+	statePath := testTempFile(t)
+
+	cwd, err := os.Getwd()
+	if err != nil {
+		t.Fatalf("err: %s", err)
+	}
+	if err := os.Chdir(varFileDir); err != nil {
+		t.Fatalf("err: %s", err)
+	}
+	defer os.Chdir(cwd)
+
+	p := testProvider()
+	ui := new(cli.MockUi)
+	c := &ApplyCommand{
+		Meta: Meta{
+			ContextOpts: testCtxConfig(p),
+			Ui:          ui,
+		},
+	}
+
+	actual := ""
+	p.DiffFn = func(
+		s *terraform.ResourceState,
+		c *terraform.ResourceConfig) (*terraform.ResourceDiff, error) {
+		if v, ok := c.Config["value"]; ok {
+			actual = v.(string)
+		}
+
+		return &terraform.ResourceDiff{}, nil
+	}
+
+	args := []string{
+		"-state", statePath,
+		testFixturePath("apply-vars"),
+	}
+	if code := c.Run(args); code != 0 {
+		t.Fatalf("bad: %d\n\n%s", code, ui.ErrorWriter.String())
+	}
+
+	if actual != "bar" {
+		t.Fatal("didn't work")
+	}
+}
+
 func TestApply_backup(t *testing.T) {
 	originalState := &terraform.State{
 		Resources: map[string]*terraform.ResourceState{
diff --git a/command/command.go b/command/command.go
index faa9cfcc3..840c2ae1d 100644
--- a/command/command.go
+++ b/command/command.go
@@ -10,6 +10,9 @@ import (
 // DefaultStateFilename is the default filename used for the state file.
 const DefaultStateFilename = "terraform.tfstate"
 
+// DefaultVarsFilename is the default filename used for vars
+const DefaultVarsFilename = "terraform.tfvars"
+
 // DefaultBackupExtention is added to the state file to form the path
 const DefaultBackupExtention = ".backup"
 
diff --git a/command/command_test.go b/command/command_test.go
index b1541f406..09f8022f2 100644
--- a/command/command_test.go
+++ b/command/command_test.go
@@ -116,3 +116,12 @@ func testTempFile(t *testing.T) string {
 
 	return result
 }
+
+func testTempDir(t *testing.T) string {
+	d, err := ioutil.TempDir("", "tf")
+	if err != nil {
+		t.Fatalf("err: %s", err)
+	}
+
+	return d
+}
diff --git a/command/graph.go b/command/graph.go
index 49b1a5e5b..f974f1668 100644
--- a/command/graph.go
+++ b/command/graph.go
@@ -16,7 +16,7 @@ type GraphCommand struct {
 }
 
 func (c *GraphCommand) Run(args []string) int {
-	args = c.Meta.process(args)
+	args = c.Meta.process(args, false)
 
 	cmdFlags := flag.NewFlagSet("graph", flag.ContinueOnError)
 	cmdFlags.Usage = func() { c.Ui.Error(c.Help()) }
diff --git a/command/meta.go b/command/meta.go
index 0867ffdda..cf09be0a2 100644
--- a/command/meta.go
+++ b/command/meta.go
@@ -134,7 +134,7 @@ func (m *Meta) flagSet(n string) *flag.FlagSet {
 // process will process the meta-parameters out of the arguments. This
 // will potentially modify the args in-place. It will return the resulting
 // slice.
-func (m *Meta) process(args []string) []string {
+func (m *Meta) process(args []string, vars bool) []string {
 	// We do this so that we retain the ability to technically call
 	// process multiple times, even if we have no plans to do so
 	if m.oldUi != nil {
@@ -159,6 +159,17 @@ func (m *Meta) process(args []string) []string {
 		Ui:         m.oldUi,
 	}
 
+	// If we support vars and the default var file exists, add it to
+	// the args...
+	if vars {
+		if _, err := os.Stat(DefaultVarsFilename); err == nil {
+			args = append(args, "", "")
+			copy(args[2:], args[0:])
+			args[0] = "-var-file"
+			args[1] = DefaultVarsFilename
+		}
+	}
+
 	return args
 }
 
diff --git a/command/meta_test.go b/command/meta_test.go
index 0b46ebaea..ae209fe6a 100644
--- a/command/meta_test.go
+++ b/command/meta_test.go
@@ -14,7 +14,7 @@ func TestMetaColorize(t *testing.T) {
 	m.Color = true
 	args = []string{"foo", "bar"}
 	args2 = []string{"foo", "bar"}
-	args = m.process(args)
+	args = m.process(args, false)
 	if !reflect.DeepEqual(args, args2) {
 		t.Fatalf("bad: %#v", args)
 	}
@@ -26,7 +26,7 @@ func TestMetaColorize(t *testing.T) {
 	m = new(Meta)
 	args = []string{"foo", "bar"}
 	args2 = []string{"foo", "bar"}
-	args = m.process(args)
+	args = m.process(args, false)
 	if !reflect.DeepEqual(args, args2) {
 		t.Fatalf("bad: %#v", args)
 	}
@@ -38,7 +38,7 @@ func TestMetaColorize(t *testing.T) {
 	m = new(Meta)
 	args = []string{"foo", "-no-color", "bar"}
 	args2 = []string{"foo", "bar"}
-	args = m.process(args)
+	args = m.process(args, false)
 	if !reflect.DeepEqual(args, args2) {
 		t.Fatalf("bad: %#v", args)
 	}
diff --git a/command/output.go b/command/output.go
index 6c9d94b8e..ab7292dd6 100644
--- a/command/output.go
+++ b/command/output.go
@@ -18,7 +18,7 @@ type OutputCommand struct {
 func (c *OutputCommand) Run(args []string) int {
 	var statePath string
 
-	args = c.Meta.process(args)
+	args = c.Meta.process(args, false)
 
 	cmdFlags := flag.NewFlagSet("output", flag.ContinueOnError)
 	cmdFlags.StringVar(&statePath, "state", DefaultStateFilename, "path")
diff --git a/command/plan.go b/command/plan.go
index 322bc6fa4..5b77f956b 100644
--- a/command/plan.go
+++ b/command/plan.go
@@ -19,7 +19,7 @@ func (c *PlanCommand) Run(args []string) int {
 	var destroy, refresh bool
 	var outPath, statePath, backupPath string
 
-	args = c.Meta.process(args)
+	args = c.Meta.process(args, true)
 
 	cmdFlags := c.Meta.flagSet("plan")
 	cmdFlags.BoolVar(&destroy, "destroy", false, "destroy")
diff --git a/command/plan_test.go b/command/plan_test.go
index d02dba1b2..af211cd2f 100644
--- a/command/plan_test.go
+++ b/command/plan_test.go
@@ -370,6 +370,54 @@ func TestPlan_varFile(t *testing.T) {
 	}
 }
 
+func TestPlan_varFileDefault(t *testing.T) {
+	varFileDir := testTempDir(t)
+	varFilePath := filepath.Join(varFileDir, "terraform.tfvars")
+	if err := ioutil.WriteFile(varFilePath, []byte(planVarFile), 0644); err != nil {
+		t.Fatalf("err: %s", err)
+	}
+
+	cwd, err := os.Getwd()
+	if err != nil {
+		t.Fatalf("err: %s", err)
+	}
+	if err := os.Chdir(varFileDir); err != nil {
+		t.Fatalf("err: %s", err)
+	}
+	defer os.Chdir(cwd)
+
+	p := testProvider()
+	ui := new(cli.MockUi)
+	c := &PlanCommand{
+		Meta: Meta{
+			ContextOpts: testCtxConfig(p),
+			Ui:          ui,
+		},
+	}
+
+	actual := ""
+	p.DiffFn = func(
+		s *terraform.ResourceState,
+		c *terraform.ResourceConfig) (*terraform.ResourceDiff, error) {
+		if v, ok := c.Config["value"]; ok {
+			actual = v.(string)
+		}
+
+		return nil, nil
+	}
+
+	args := []string{
+		testFixturePath("plan-vars"),
+	}
+	if code := c.Run(args); code != 0 {
+		t.Fatalf("bad: %d\n\n%s", code, ui.ErrorWriter.String())
+	}
+
+	if actual != "bar" {
+		t.Fatal("didn't work")
+	}
+}
+
 func TestPlan_backup(t *testing.T) {
 	// Write out some prior state
 	tf, err := ioutil.TempFile("", "tf")
diff --git a/command/refresh.go b/command/refresh.go
index 1603a75c8..a3f536bd0 100644
--- a/command/refresh.go
+++ b/command/refresh.go
@@ -18,7 +18,7 @@ type RefreshCommand struct {
 func (c *RefreshCommand) Run(args []string) int {
 	var statePath, stateOutPath, backupPath string
 
-	args = c.Meta.process(args)
+	args = c.Meta.process(args, true)
 
 	cmdFlags := c.Meta.flagSet("refresh")
 	cmdFlags.StringVar(&statePath, "state", DefaultStateFilename, "path")
diff --git a/command/refresh_test.go b/command/refresh_test.go
index 976612eaf..145c4699a 100644
--- a/command/refresh_test.go
+++ b/command/refresh_test.go
@@ -408,6 +408,57 @@ func TestRefresh_varFile(t *testing.T) {
 	}
 }
 
+func TestRefresh_varFileDefault(t *testing.T) {
+	state := &terraform.State{
+		Resources: map[string]*terraform.ResourceState{
+			"test_instance.foo": &terraform.ResourceState{
+				ID:   "bar",
+				Type: "test_instance",
+			},
+		},
+	}
+	statePath := testStateFile(t, state)
+
+	p := testProvider()
+	ui := new(cli.MockUi)
+	c := &RefreshCommand{
+		Meta: Meta{
+			ContextOpts: testCtxConfig(p),
+			Ui:          ui,
+		},
+	}
+
+	varFileDir := testTempDir(t)
+	varFilePath := filepath.Join(varFileDir, "terraform.tfvars")
+	if err := ioutil.WriteFile(varFilePath, []byte(refreshVarFile), 0644); err != nil {
+		t.Fatalf("err: %s", err)
+	}
+
+	cwd, err := os.Getwd()
+	if err != nil {
+		t.Fatalf("err: %s", err)
+	}
+	if err := os.Chdir(varFileDir); err != nil {
+		t.Fatalf("err: %s", err)
+	}
+	defer os.Chdir(cwd)
+
+	args := []string{
+		"-state", statePath,
+		testFixturePath("refresh-var"),
+	}
+	if code := c.Run(args); code != 0 {
+		t.Fatalf("bad: %d\n\n%s", code, ui.ErrorWriter.String())
+	}
+
+	if !p.ConfigureCalled {
+		t.Fatal("configure should be called")
+	}
+	if p.ConfigureConfig.Config["value"].(string) != "bar" {
+		t.Fatalf("bad: %#v", p.ConfigureConfig.Config)
+	}
+}
+
 func TestRefresh_backup(t *testing.T) {
 	state := &terraform.State{
 		Resources: map[string]*terraform.ResourceState{
diff --git a/command/show.go b/command/show.go
index 6f7a895b8..8660dbc54 100644
--- a/command/show.go
+++ b/command/show.go
@@ -16,7 +16,7 @@ type ShowCommand struct {
 }
 
 func (c *ShowCommand) Run(args []string) int {
-	args = c.Meta.process(args)
+	args = c.Meta.process(args, false)
 
 	cmdFlags := flag.NewFlagSet("show", flag.ContinueOnError)
 	cmdFlags.Usage = func() { c.Ui.Error(c.Help()) }
diff --git a/command/version.go b/command/version.go
index 999af7abf..17015e604 100644
--- a/command/version.go
+++ b/command/version.go
@@ -21,7 +21,7 @@ func (c *VersionCommand) Help() string {
 func (c *VersionCommand) Run(args []string) int {
 	var versionString bytes.Buffer
 
-	args = c.Meta.process(args)
+	args = c.Meta.process(args, false)
 
 	fmt.Fprintf(&versionString, "Terraform v%s", c.Version)
 	if c.VersionPrerelease != "" {