diff --git a/x-pack/plugins/fleet/common/services/validate_package_policy.ts b/x-pack/plugins/fleet/common/services/validate_package_policy.ts
index 4d54fda6e5df5..3d0e8bed2aafa 100644
--- a/x-pack/plugins/fleet/common/services/validate_package_policy.ts
+++ b/x-pack/plugins/fleet/common/services/validate_package_policy.ts
@@ -55,6 +55,7 @@ export const validatePackagePolicy = (
     description: null,
     namespace: null,
     inputs: {},
+    vars: {},
   };
   const namespaceValidation = isValidNamespace(packagePolicy.namespace);
 
diff --git a/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/step_define_package_policy.tsx b/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/step_define_package_policy.tsx
index 7f67452e2f230..faaf140258dd4 100644
--- a/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/step_define_package_policy.tsx
+++ b/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/step_define_package_policy.tsx
@@ -208,9 +208,9 @@ export const StepDefinePackagePolicy: React.FunctionComponent<{
 
           {/* Required vars */}
           {requiredVars.map((varDef) => {
-            const { name: varName, type: varType } = varDef;
-            if (!packagePolicy.vars || !packagePolicy.vars[varName]) return null;
-            const value = packagePolicy.vars[varName].value;
+            const { name: varName, type: varType, default: defaultValue } = varDef;
+            const value = packagePolicy.vars?.[varName]?.value ?? defaultValue;
+
             return (
               <EuiFlexItem key={varName}>
                 <PackagePolicyInputVarField