diff --git a/acceptance/bundle/variables/complex-transitive-deep/databricks.yml b/acceptance/bundle/variables/complex-transitive-deep/databricks.yml
new file mode 100644
index 0000000000..1357c291a5
--- /dev/null
+++ b/acceptance/bundle/variables/complex-transitive-deep/databricks.yml
@@ -0,0 +1,21 @@
+bundle:
+  name: complex-transitive
+
+variables:
+  catalog:
+    default: hive_metastore
+  spark_conf_1:
+    default:
+      "spark.databricks.sql.initial.catalog.name": ${var.catalog}
+  spark_conf:
+    default: ${var.spark_conf_1}
+  etl_cluster_config:
+    type: complex
+    default:
+      spark_version: 14.3.x-scala2.12
+      runtime_engine: PHOTON
+      spark_conf: ${var.spark_conf}
+
+resources:
+  clusters:
+    my_cluster: ${var.etl_cluster_config}
diff --git a/acceptance/bundle/variables/complex-transitive-deep/output.txt b/acceptance/bundle/variables/complex-transitive-deep/output.txt
new file mode 100644
index 0000000000..a031e04971
--- /dev/null
+++ b/acceptance/bundle/variables/complex-transitive-deep/output.txt
@@ -0,0 +1,3 @@
+{
+  "spark.databricks.sql.initial.catalog.name": "${var.catalog}"
+}
diff --git a/acceptance/bundle/variables/complex-transitive-deep/script b/acceptance/bundle/variables/complex-transitive-deep/script
new file mode 100644
index 0000000000..52bb08ed49
--- /dev/null
+++ b/acceptance/bundle/variables/complex-transitive-deep/script
@@ -0,0 +1,2 @@
+# Currently, this incorrectly outputs variable reference instead of resolved value
+$CLI bundle validate -o json | jq '.resources.clusters.my_cluster.spark_conf'