diff --git a/aws/resource_aws_codebuild_project.go b/aws/resource_aws_codebuild_project.go
index 32745251606..5df8bf37fd6 100644
--- a/aws/resource_aws_codebuild_project.go
+++ b/aws/resource_aws_codebuild_project.go
@@ -13,6 +13,7 @@ import (
 	"github.com/hashicorp/terraform/helper/hashcode"
 	"github.com/hashicorp/terraform/helper/resource"
 	"github.com/hashicorp/terraform/helper/schema"
+	"github.com/hashicorp/terraform/helper/validation"
 )
 
 func resourceAwsCodeBuildProject() *schema.Resource {
@@ -95,6 +96,14 @@ func resourceAwsCodeBuildProject() *schema.Resource {
 										Type:     schema.TypeString,
 										Required: true,
 									},
+									"type": {
+										Type:     schema.TypeString,
+										Optional: true,
+										ValidateFunc: validation.StringInSlice([]string{
+											codebuild.EnvironmentVariableTypeParameterStore,
+											codebuild.EnvironmentVariableTypePlaintext,
+										}, false),
+									},
 								},
 							},
 						},
@@ -314,6 +323,10 @@ func expandProjectEnvironment(d *schema.ResourceData) *codebuild.ProjectEnvironm
 					projectEnvironmentVar.Value = &v
 				}
 
+				if v := config["type"].(string); v != "" {
+					projectEnvironmentVar.Type = &v
+				}
+
 				projectEnvironmentVariables = append(projectEnvironmentVariables, projectEnvironmentVar)
 			}
 
@@ -626,6 +639,9 @@ func environmentVariablesToMap(environmentVariables []*codebuild.EnvironmentVari
 			item := map[string]interface{}{}
 			item["name"] = *env.Name
 			item["value"] = *env.Value
+			if env.Type != nil {
+				item["type"] = *env.Type
+			}
 			envVariables = append(envVariables, item)
 		}
 	}
diff --git a/aws/resource_aws_codebuild_project_test.go b/aws/resource_aws_codebuild_project_test.go
index e79e49a8ff2..120a02e4bc0 100644
--- a/aws/resource_aws_codebuild_project_test.go
+++ b/aws/resource_aws_codebuild_project_test.go
@@ -388,8 +388,9 @@ resource "aws_codebuild_project" "foo" {
     type         = "LINUX_CONTAINER"
 
     environment_variable = {
-      "name"  = "SOME_KEY"
-      "value" = "SOME_VALUE"
+      name  = "SOME_KEY"
+      value = "SOME_VALUE"
+      type = "PLAINTEXT"
     }
   }
 
@@ -471,8 +472,9 @@ resource "aws_codebuild_project" "foo" {
     type         = "LINUX_CONTAINER"
 
     environment_variable = {
-      "name"  = "SOME_OTHERKEY"
-      "value" = "SOME_OTHERVALUE"
+      name  = "SOME_OTHERKEY"
+      value = "SOME_OTHERVALUE"
+      type = "PARAMETER_STORE"
     }
   }
 
diff --git a/website/docs/r/codebuild_project.html.markdown b/website/docs/r/codebuild_project.html.markdown
index bb6a0c22bb0..14a732568d8 100644
--- a/website/docs/r/codebuild_project.html.markdown
+++ b/website/docs/r/codebuild_project.html.markdown
@@ -134,6 +134,7 @@ The following arguments are supported:
 `environment_variable` supports the following:
 * `name` - (Required) The environment variable's name or key.
 * `value` - (Required) The environment variable's value.
+* `type` - (Optional) The type of environment variable. Valid values: `PARAMETER_STORE`, `PLAINTEXT`.
 
 `source` supports the following:
 
@@ -156,4 +157,3 @@ The following attributes are exported:
 * `encryption_key` - The AWS Key Management Service (AWS KMS) customer master key (CMK) that was used for encrypting the build project's build output artifacts.
 * `name` - The projects name.
 * `service_role` - The ARN of the IAM service role.
-