diff --git a/src/ast/mod.rs b/src/ast/mod.rs
index 2a687800a..2b7767ab1 100644
--- a/src/ast/mod.rs
+++ b/src/ast/mod.rs
@@ -1532,6 +1532,14 @@ pub enum DeclareAssignment {
     /// DECLARE c1 CURSOR FOR res
     /// ```
     For(Box<Expr>),
+
+    /// Expression via the `=` syntax.
+    ///
+    /// Example:
+    /// ```sql
+    /// DECLARE @variable AS INT = 100
+    /// ```
+    MsSqlAssignment(Box<Expr>),
 }
 
 impl fmt::Display for DeclareAssignment {
@@ -1546,6 +1554,9 @@ impl fmt::Display for DeclareAssignment {
             DeclareAssignment::DuckAssignment(expr) => {
                 write!(f, ":= {expr}")
             }
+            DeclareAssignment::MsSqlAssignment(expr) => {
+                write!(f, "= {expr}")
+            }
             DeclareAssignment::For(expr) => {
                 write!(f, "FOR {expr}")
             }
diff --git a/src/parser/mod.rs b/src/parser/mod.rs
index 7110402a4..9e7733013 100644
--- a/src/parser/mod.rs
+++ b/src/parser/mod.rs
@@ -4244,6 +4244,9 @@ impl<'a> Parser<'a> {
         if dialect_of!(self is SnowflakeDialect) {
             return self.parse_snowflake_declare();
         }
+        if dialect_of!(self is MsSqlDialect) {
+            return self.parse_mssql_declare();
+        }
 
         let name = self.parse_identifier(false)?;
 
@@ -4457,6 +4460,69 @@ impl<'a> Parser<'a> {
         Ok(Statement::Declare { stmts })
     }
 
+    /// Parse a [MsSql] `DECLARE` statement.
+    ///
+    /// Syntax:
+    /// ```text
+    /// DECLARE
+    // {
+    //   { @local_variable [AS] data_type [ = value ] }
+    //   | { @cursor_variable_name CURSOR }
+    // } [ ,...n ]
+    /// ```
+    /// [MsSql]: https://learn.microsoft.com/en-us/sql/t-sql/language-elements/declare-local-variable-transact-sql?view=sql-server-ver16
+    pub fn parse_mssql_declare(&mut self) -> Result<Statement, ParserError> {
+        let mut stmts = vec![];
+
+        loop {
+            let name = {
+                let ident = self.parse_identifier(false)?;
+                if !ident.value.starts_with('@') {
+                    Err(ParserError::TokenizerError(
+                        "Invalid MsSql variable declaration.".to_string(),
+                    ))
+                } else {
+                    Ok(ident)
+                }
+            }?;
+
+            let (declare_type, data_type) = match self.peek_token().token {
+                Token::Word(w) => match w.keyword {
+                    Keyword::CURSOR => {
+                        self.next_token();
+                        (Some(DeclareType::Cursor), None)
+                    }
+                    Keyword::AS => {
+                        self.next_token();
+                        (None, Some(self.parse_data_type()?))
+                    }
+                    _ => (None, Some(self.parse_data_type()?)),
+                },
+                _ => (None, Some(self.parse_data_type()?)),
+            };
+
+            let assignment = self.parse_mssql_variable_declaration_expression()?;
+
+            stmts.push(Declare {
+                names: vec![name],
+                data_type,
+                assignment,
+                declare_type,
+                binary: None,
+                sensitive: None,
+                scroll: None,
+                hold: None,
+                for_query: None,
+            });
+
+            if self.next_token() != Token::Comma {
+                break;
+            }
+        }
+
+        Ok(Statement::Declare { stmts })
+    }
+
     /// Parses the assigned expression in a variable declaration.
     ///
     /// Syntax:
@@ -4482,6 +4548,26 @@ impl<'a> Parser<'a> {
         })
     }
 
+    /// Parses the assigned expression in a variable declaration.
+    ///
+    /// Syntax:
+    /// ```text
+    /// [ = <expression>]
+    /// ```
+    pub fn parse_mssql_variable_declaration_expression(
+        &mut self,
+    ) -> Result<Option<DeclareAssignment>, ParserError> {
+        Ok(match self.peek_token().token {
+            Token::Eq => {
+                self.next_token(); // Skip `=`
+                Some(DeclareAssignment::MsSqlAssignment(Box::new(
+                    self.parse_expr()?,
+                )))
+            }
+            _ => None,
+        })
+    }
+
     // FETCH [ direction { FROM | IN } ] cursor INTO target;
     pub fn parse_fetch_statement(&mut self) -> Result<Statement, ParserError> {
         let direction = if self.parse_keyword(Keyword::NEXT) {
diff --git a/tests/sqlparser_mssql.rs b/tests/sqlparser_mssql.rs
index 353fb85d5..baff72f10 100644
--- a/tests/sqlparser_mssql.rs
+++ b/tests/sqlparser_mssql.rs
@@ -16,11 +16,15 @@
 
 #[macro_use]
 mod test_utils;
+
 use test_utils::*;
 
+use sqlparser::ast::DataType::{Int, Text};
+use sqlparser::ast::DeclareAssignment::MsSqlAssignment;
+use sqlparser::ast::Value::SingleQuotedString;
 use sqlparser::ast::*;
 use sqlparser::dialect::{GenericDialect, MsSqlDialect};
-use sqlparser::parser::ParserError;
+use sqlparser::parser::{Parser, ParserError};
 
 #[test]
 fn parse_mssql_identifiers() {
@@ -539,6 +543,64 @@ fn parse_substring_in_select() {
     }
 }
 
+#[test]
+fn parse_mssql_declare() {
+    let sql = "DECLARE @foo CURSOR, @bar INT, @baz AS TEXT = 'foobar';";
+    let ast = Parser::parse_sql(&MsSqlDialect {}, sql).unwrap();
+
+    assert_eq!(
+        vec![Statement::Declare {
+            stmts: vec![
+                Declare {
+                    names: vec![Ident {
+                        value: "@foo".to_string(),
+                        quote_style: None
+                    }],
+                    data_type: None,
+                    assignment: None,
+                    declare_type: Some(DeclareType::Cursor),
+                    binary: None,
+                    sensitive: None,
+                    scroll: None,
+                    hold: None,
+                    for_query: None
+                },
+                Declare {
+                    names: vec![Ident {
+                        value: "@bar".to_string(),
+                        quote_style: None
+                    }],
+                    data_type: Some(Int(None)),
+                    assignment: None,
+                    declare_type: None,
+                    binary: None,
+                    sensitive: None,
+                    scroll: None,
+                    hold: None,
+                    for_query: None
+                },
+                Declare {
+                    names: vec![Ident {
+                        value: "@baz".to_string(),
+                        quote_style: None
+                    }],
+                    data_type: Some(Text),
+                    assignment: Some(MsSqlAssignment(Box::new(Expr::Value(SingleQuotedString(
+                        "foobar".to_string()
+                    ))))),
+                    declare_type: None,
+                    binary: None,
+                    sensitive: None,
+                    scroll: None,
+                    hold: None,
+                    for_query: None
+                }
+            ]
+        }],
+        ast
+    );
+}
+
 fn ms() -> TestedDialects {
     TestedDialects {
         dialects: vec![Box::new(MsSqlDialect {})],