diff --git a/src/Microsoft.DotNet.Interactive.SqlServer/MsSqlKernel.cs b/src/Microsoft.DotNet.Interactive.SqlServer/MsSqlKernel.cs
index 9c2e8cdc76..9571f7f1b2 100644
--- a/src/Microsoft.DotNet.Interactive.SqlServer/MsSqlKernel.cs
+++ b/src/Microsoft.DotNet.Interactive.SqlServer/MsSqlKernel.cs
@@ -48,11 +48,6 @@ public override async Task ConnectAsync()
 
     protected override string CreateVariableDeclaration(string name, object value)
     {
-        if (value is PasswordString ps)
-        {
-            value = ps.GetClearTextPassword();
-        }
-
         return $"DECLARE @{name} {MapToSqlDataType(name, value)} = {MapToSqlValueDeclaration(value)};";
 
         static string MapToSqlDataType(string name, object value)
@@ -92,10 +87,6 @@ protected override bool CanDeclareVariable(string name, object value, out string
         msg = default;
         try
         {
-            if (value is PasswordString)
-            {
-                return true;
-            }
             SqlMetaData.InferFromValue(
                 value,
                 name);
diff --git a/src/Microsoft.DotNet.Interactive.SqlServer/ToolsServiceKernel.cs b/src/Microsoft.DotNet.Interactive.SqlServer/ToolsServiceKernel.cs
index ba365599f5..692eb9b053 100644
--- a/src/Microsoft.DotNet.Interactive.SqlServer/ToolsServiceKernel.cs
+++ b/src/Microsoft.DotNet.Interactive.SqlServer/ToolsServiceKernel.cs
@@ -399,7 +399,14 @@ private string PrependVariableDeclarationsToCode(SubmitCode command, KernelInvoc
 
         foreach (var variableNameAndValue in _variables)
         {
-            var declareStatement = CreateVariableDeclaration(variableNameAndValue.Key, variableNameAndValue.Value);
+            var value = variableNameAndValue.Value;
+
+            if (value is PasswordString ps)
+            {
+                value = ps.GetClearTextPassword();
+            }
+
+            var declareStatement = CreateVariableDeclaration(variableNameAndValue.Key, value);
 
             var displayStatement = declareStatement;
 
@@ -442,6 +449,11 @@ private string PrependVariableDeclarationsToCode(SubmitCode command, KernelInvoc
                 throw new ArgumentNullException(nameof(value), $"Sharing null values is not supported at this time.");
             }
 
+            if (value is PasswordString ps)
+            {
+                value = ps.GetClearTextPassword();
+            }
+
             if (!CanDeclareVariable(name, value, out string msg))
             {
                 throw new ArgumentException($"Cannot support value of Type {value.GetType()}. {msg}");