Student transition from arithmetical understandings to algebraic reasoning is recognised as an important but complex process. An essential element of the transition is the development of a rich understanding of variables. Drawing on findings from a classroom-based study, this paper outlines the instructional tasks and pedagogical actions a teacher used to facilitate her students understanding of variables. The findings affirm that younger students can begin developing understanding of variables and use forms of algebraic notation to represent their mathematical ideas. Carefully designed tasks, specific pedagogical actions and extended discourse were all important elements in facilitating student understanding. (Contains 1 figure, 2 tables and 10 footnotes.) [For the complete proceedings, "Shaping the Future of Mathematics Education. Proceedings of the Annual Conference of the Mathematics Education Research Group of Australasia (33rd, Freemantle, Western Australia, Australia, July 3-7, 2010)," see ED520764.]