diff --git a/CHANGELOG.md b/CHANGELOG.md
index 5367d12..6def54e 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -4,6 +4,7 @@ All notable changes to this project will be documented in this file.
 ## [Unreleased]
 ### Fixed
 - variables in `FROM` should return `true` for `isDefined()` if it is defined in the `ARG` instructions above it ([#56](https://github.com/rcjsuen/dockerfile-ast/issues/56))
+- variables in `FROM` should return `true` for `isBuildVariable()` if it is defined in the `ARG` instructions above it ([#57](https://github.com/rcjsuen/dockerfile-ast/issues/57))
 
 ## [0.0.14] - 2019-04-28
 ### Added
diff --git a/src/instruction.ts b/src/instruction.ts
index 5a0e909..5fb1c74 100644
--- a/src/instruction.ts
+++ b/src/instruction.ts
@@ -8,6 +8,8 @@ import { Dockerfile } from './dockerfile';
 import { Line } from './line';
 import { Argument } from './argument';
 import { Variable } from './variable';
+import { Keyword } from './main';
+import { Arg } from './instructions/arg';
 
 export class Instruction extends Line {
 
@@ -569,6 +571,16 @@ export class Instruction extends Line {
     }
 
     private isBuildVariable(variable: string, line: number): boolean | undefined {
+        if (this.getKeyword() === Keyword.FROM) {
+            for (const initialArg of this.dockerfile.getInitialARGs()) {
+                const arg = initialArg as Arg;
+                const property = arg.getProperty();
+                if (property && variable === property.getName()) {
+                    return true;
+                }
+            }
+            return undefined;
+        }
         let image = this.dockerfile.getContainingImage(Position.create(line, 0));
         let envs = image.getENVs();
         for (let i = envs.length - 1; i >= 0; i--) {
diff --git a/test/variable.test.ts b/test/variable.test.ts
index 40bd424..d47912c 100644
--- a/test/variable.test.ts
+++ b/test/variable.test.ts
@@ -639,6 +639,38 @@ describe("Variable", () => {
         assert.equal(variable.toString(), "$var");
     });
 
+    it("undefined ARG variable before FROM", () => {
+        let dockerfile = DockerfileParser.parse("ARG\nFROM $image");
+        let variable = dockerfile.getInstructions()[1].getVariables()[0];
+        assert.equal(variable.getName(), "image");
+        assertRange(variable.getNameRange(), 1, 6, 1, 11);
+        assertRange(variable.getRange(), 1, 5, 1, 11);
+        assert.equal(variable.getModifier(), null);
+        assert.equal(variable.getModifierRange(), null);
+        assert.equal(variable.getSubstitutionParameter(), null);
+        assert.equal(variable.getSubstitutionRange(), null);
+        assert.equal(variable.isDefined(), false);
+        assert.equal(variable.isBuildVariable(), false);
+        assert.equal(variable.isEnvironmentVariable(), false);
+        assert.equal(variable.toString(), "$image");
+    });
+
+    it("declared ARG variable before FROM", () => {
+        let dockerfile = DockerfileParser.parse("ARG image\nFROM $image");
+        let variable = dockerfile.getInstructions()[1].getVariables()[0];
+        assert.equal(variable.getName(), "image");
+        assertRange(variable.getNameRange(), 1, 6, 1, 11);
+        assertRange(variable.getRange(), 1, 5, 1, 11);
+        assert.equal(variable.getModifier(), null);
+        assert.equal(variable.getModifierRange(), null);
+        assert.equal(variable.getSubstitutionParameter(), null);
+        assert.equal(variable.getSubstitutionRange(), null);
+        assert.equal(variable.isDefined(), true);
+        assert.equal(variable.isBuildVariable(), true);
+        assert.equal(variable.isEnvironmentVariable(), false);
+        assert.equal(variable.toString(), "$image");
+    });
+
     it("defined ARG variable to use in FROM", () => {
         let dockerfile = DockerfileParser.parse("ARG image=node\nFROM $image");
         let variable = dockerfile.getInstructions()[1].getVariables()[0];
@@ -650,6 +682,7 @@ describe("Variable", () => {
         assert.equal(variable.getSubstitutionParameter(), null);
         assert.equal(variable.getSubstitutionRange(), null);
         assert.equal(variable.isDefined(), true);
+        assert.equal(variable.isBuildVariable(), true);
         assert.equal(variable.isEnvironmentVariable(), false);
         assert.equal(variable.toString(), "$image");
     });