diff --git a/docs/data-sources/parameter.md b/docs/data-sources/parameter.md
index 70750742..51d95262 100644
--- a/docs/data-sources/parameter.md
+++ b/docs/data-sources/parameter.md
@@ -32,6 +32,7 @@ Use this data source to configure editable options for workspaces.
 ### Read-Only
 
 - `id` (String) The ID of this resource.
+- `optional` (Boolean) Whether this value is optional.
 - `value` (String) The output value of the parameter.
 
 <a id="nestedblock--option"></a>
diff --git a/examples/resources/coder_parameter/resource.tf b/examples/resources/coder_parameter/resource.tf
index 248831bc..579e0735 100644
--- a/examples/resources/coder_parameter/resource.tf
+++ b/examples/resources/coder_parameter/resource.tf
@@ -70,3 +70,8 @@ data "coder_parameter" "cat_lives" {
     monotonic = "decreasing"
   }
 }
+
+data "coder_parameter" "fairy_tale" {
+  name = "Fairy Tale"
+  type = "string"
+}
diff --git a/provider/parameter.go b/provider/parameter.go
index 8df71221..e839f7ba 100644
--- a/provider/parameter.go
+++ b/provider/parameter.go
@@ -48,6 +48,7 @@ type Parameter struct {
 	Icon        string
 	Option      []Option
 	Validation  []Validation
+	Optional    bool
 }
 
 func parameterDataSource() *schema.Resource {
@@ -67,6 +68,7 @@ func parameterDataSource() *schema.Resource {
 				Icon        interface{}
 				Option      interface{}
 				Validation  interface{}
+				Optional    interface{}
 			}{
 				Value:       rd.Get("value"),
 				Name:        rd.Get("name"),
@@ -77,6 +79,14 @@ func parameterDataSource() *schema.Resource {
 				Icon:        rd.Get("icon"),
 				Option:      rd.Get("option"),
 				Validation:  rd.Get("validation"),
+				Optional: func() bool {
+					// This hack allows for checking if the "default" field is present in the .tf file.
+					// If "default" is missing or is "null", then it means that this field is required,
+					// and user must provide a value for it.
+					val := !rd.GetRawConfig().AsValueMap()["default"].IsNull()
+					rd.Set("optional", val)
+					return val
+				}(),
 			}, &parameter)
 			if err != nil {
 				return diag.Errorf("decode parameter: %s", err)
@@ -130,7 +140,6 @@ func parameterDataSource() *schema.Resource {
 					}
 				}
 			}
-
 			return nil
 		},
 		Schema: map[string]*schema.Schema{
@@ -268,6 +277,11 @@ func parameterDataSource() *schema.Resource {
 					},
 				},
 			},
+			"optional": {
+				Type:        schema.TypeBool,
+				Computed:    true,
+				Description: "Whether this value is optional.",
+			},
 		},
 	}
 }
diff --git a/provider/parameter_test.go b/provider/parameter_test.go
index ebb93988..d7a3c68c 100644
--- a/provider/parameter_test.go
+++ b/provider/parameter_test.go
@@ -266,6 +266,73 @@ data "coder_parameter" "region" {
 }
 `,
 		ExpectError: regexp.MustCompile("cannot have the same value"),
+	}, {
+		Name: "RequiredParameterNoDefault",
+		Config: `
+data "coder_parameter" "region" {
+	name = "Region"
+	type = "string"
+}`,
+		Check: func(state *terraform.ResourceState) {
+			for key, expected := range map[string]string{
+				"name":     "Region",
+				"type":     "string",
+				"optional": "false",
+			} {
+				require.Equal(t, expected, state.Primary.Attributes[key])
+			}
+		},
+	}, {
+		Name: "RequiredParameterDefaultNull",
+		Config: `
+data "coder_parameter" "region" {
+	name = "Region"
+	type = "string"
+	default = null
+}`,
+		Check: func(state *terraform.ResourceState) {
+			for key, expected := range map[string]string{
+				"name":     "Region",
+				"type":     "string",
+				"optional": "false",
+			} {
+				require.Equal(t, expected, state.Primary.Attributes[key])
+			}
+		},
+	}, {
+		Name: "OptionalParameterDefaultEmpty",
+		Config: `
+data "coder_parameter" "region" {
+	name = "Region"
+	type = "string"
+	default = ""
+}`,
+		Check: func(state *terraform.ResourceState) {
+			for key, expected := range map[string]string{
+				"name":     "Region",
+				"type":     "string",
+				"optional": "true",
+			} {
+				require.Equal(t, expected, state.Primary.Attributes[key])
+			}
+		},
+	}, {
+		Name: "OptionalParameterDefaultNotEmpty",
+		Config: `
+data "coder_parameter" "region" {
+	name = "Region"
+	type = "string"
+	default = "us-east-1"
+}`,
+		Check: func(state *terraform.ResourceState) {
+			for key, expected := range map[string]string{
+				"name":     "Region",
+				"type":     "string",
+				"optional": "true",
+			} {
+				require.Equal(t, expected, state.Primary.Attributes[key])
+			}
+		},
 	}} {
 		tc := tc
 		t.Run(tc.Name, func(t *testing.T) {