diff --git a/infrastructure/terraform/environments/staging/terraform.tfvars b/infrastructure/terraform/environments/staging/terraform.tfvars
new file mode 100644
index 0000000..d3e87e2
--- /dev/null
+++ b/infrastructure/terraform/environments/staging/terraform.tfvars
@@ -0,0 +1,72 @@
+# Environment identifier
+# Used for resource tagging and environment-specific configurations
+environment = "staging"
+
+# AWS Region configuration
+# US East 1 selected for development team proximity and service availability
+region = "us-east-1"
+
+# PostgreSQL Database Configuration
+# Optimized for staging environment with cost-effective settings while maintaining functionality
+database_config = {
+  # t3.medium provides balanced compute and memory for staging workloads
+  instance_class = "db.t3.medium"
+  
+  # 20GB storage allocation sufficient for staging data requirements
+  allocated_storage = 20
+  
+  # PostgreSQL 14.6 as specified in technical requirements
+  engine_version = "14.6"
+  
+  # 100 connections adequate for staging concurrent users
+  max_connections = 100
+  
+  # 7-day backup retention for staging environment
+  backup_retention_period = 7
+  
+  # Multi-AZ disabled for cost optimization in staging
+  multi_az = false
+  
+  # PostgreSQL 14 parameter group family
+  parameter_group_family = "postgres14"
+  
+  # Staging-specific security settings
+  deletion_protection = false
+  skip_final_snapshot = true
+  
+  # Maintenance and backup windows during off-peak hours
+  maintenance_window = "Mon:03:00-Mon:04:00"
+  backup_window = "02:00-03:00"
+}
+
+# Redis Cache Configuration
+# Balanced performance and cost optimization for staging environment
+cache_config = {
+  # t4g.medium provides cost-effective performance for staging workloads
+  node_type = "cache.t4g.medium"
+  
+  # 2 nodes for basic redundancy in staging
+  num_cache_nodes = 2
+  
+  # 2GB memory allocation sufficient for staging cache requirements
+  memory_size_mb = 2048
+  
+  # Redis 6.x as specified in technical requirements
+  parameter_group_family = "redis6.x"
+  
+  # Staging-specific availability settings
+  automatic_failover_enabled = false
+  
+  # Reduced snapshot retention for staging
+  snapshot_retention_limit = 3
+  
+  # Maintenance and snapshot windows during off-peak hours
+  snapshot_window = "04:00-05:00"
+  maintenance_window = "sun:05:00-sun:06:00"
+  
+  # Standard Redis port
+  port = 6379
+  
+  # Allow immediate application of changes in staging
+  apply_immediately = true
+}
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