diff --git a/src/robocop/formatter/formatters/ReplaceEmptyValues.py b/src/robocop/formatter/formatters/ReplaceEmptyValues.py
index 716c340b2..bf88671df 100644
--- a/src/robocop/formatter/formatters/ReplaceEmptyValues.py
+++ b/src/robocop/formatter/formatters/ReplaceEmptyValues.py
@@ -2,12 +2,19 @@
 
 from typing import TYPE_CHECKING
 
-from robot.api.parsing import Token
+from robot.api.parsing import Keyword, KeywordSection, TestCase, TestCaseSection, Token
+
+try:  # RF7+
+    from robot.api.parsing import Var
+except ImportError:
+    Var = None
 
 from robocop.formatter.disablers import skip_if_disabled, skip_section_if_disabled
 from robocop.formatter.formatters import Formatter
 
 if TYPE_CHECKING:
+    from collections.abc import Sequence
+
     from robot.parsing.model.blocks import VariableSection
     from robot.parsing.model.statements import Variable
 
@@ -41,12 +48,99 @@ class ReplaceEmptyValues(Formatter):
     ...    ${EMPTY}
     ...    value3
     ```
+
+    By default, this formatter only processes the Variables section. You can configure
+    which sections to process using the ``sections`` parameter:
+    - ``variables`` (default) - only Variables section
+    - ``keywords`` - only Keywords section
+    - ``testcases`` - only Test Cases section
+    - ``all`` - all sections
+    - Comma-separated list - e.g., ``variables,keywords``
+
+    Configuration example in pyproject.toml:
+    ```toml
+    [tool.robocop.format]
+    configure = [
+        "ReplaceEmptyValues.sections=all",
+        # or
+        "ReplaceEmptyValues.sections=variables,keywords",
+    ]
+    ```
     """
 
     HANDLES_SKIP = frozenset({"skip_sections"})
 
+    def _replace_empty_args(
+        self, tokens: Sequence[Token], empty_value: str, *, trim_eol: bool = False
+    ) -> tuple[Token, ...]:
+        """Replace empty argument tokens while preserving continuation alignment."""
+        new_tokens = []
+        continuation_sep = Token(Token.SEPARATOR, self.formatting_config.continuation_indent)
+        prev_token = None
+        for token in tokens:
+            token_value = token.value or ""
+            if token.type == Token.ARGUMENT and not token_value.strip():
+                if not prev_token or prev_token.type != Token.SEPARATOR:
+                    new_tokens.append(continuation_sep)
+                new_tokens.append(Token(Token.ARGUMENT, empty_value))
+            else:
+                if trim_eol and token.type == Token.EOL and token.value:
+                    token.value = token.value.lstrip(" ")
+                new_tokens.append(token)
+            prev_token = token
+        return tuple(new_tokens)
+
+    def _insert_arg_after_token(self, tokens: Sequence[Token], anchor: Token, value: str) -> tuple[Token, ...]:
+        separator = Token(Token.SEPARATOR, self.formatting_config.separator)
+        new_tokens = []
+        for token in tokens:
+            new_tokens.append(token)
+            if token == anchor:
+                new_tokens.append(separator)
+                new_tokens.append(Token(Token.ARGUMENT, value))
+        return tuple(new_tokens)
+
+    @staticmethod
+    def _get_empty_value(var_name: str) -> str | None:
+        if var_name.startswith("${"):
+            return "${EMPTY}"
+        if var_name.startswith("@{"):
+            return "@{EMPTY}"
+        if var_name.startswith("&{"):
+            return "&{EMPTY}"
+        return None
+
+    def __init__(self, sections: str = "variables") -> None:
+        super().__init__()
+        if sections == "all":
+            self.enabled_sections = {"variables", "keywords", "testcases"}
+        else:
+            self.enabled_sections = {s.strip().lower() for s in sections.split(",")}
+
     @skip_section_if_disabled
     def visit_VariableSection(self, node: VariableSection) -> VariableSection:  # noqa: N802
+        if "variables" not in self.enabled_sections:
+            return node
+        return self.generic_visit(node)
+
+    @skip_section_if_disabled
+    def visit_TestCaseSection(self, node: TestCaseSection) -> TestCaseSection:  # noqa: N802
+        if "testcases" not in self.enabled_sections:
+            return node
+        return self.generic_visit(node)
+
+    @skip_section_if_disabled
+    def visit_KeywordSection(self, node: KeywordSection) -> KeywordSection:  # noqa: N802
+        if "keywords" not in self.enabled_sections:
+            return node
+        return self.generic_visit(node)
+
+    @skip_if_disabled
+    def visit_TestCase(self, node: TestCase) -> TestCase:  # noqa: N802
+        return self.generic_visit(node)
+
+    @skip_if_disabled
+    def visit_Keyword(self, node: Keyword) -> Keyword:  # noqa: N802
         return self.generic_visit(node)
 
     @skip_if_disabled
@@ -54,22 +148,32 @@ def visit_Variable(self, node: Variable) -> Variable:  # noqa: N802
         if node.errors or not node.name:
             return node
         args = node.get_tokens(Token.ARGUMENT)
-        sep = Token(Token.SEPARATOR, self.formatting_config.separator)
-        new_line_sep = Token(Token.SEPARATOR, self.formatting_config.continuation_indent)
         if args:
-            tokens = []
-            prev_token = None
-            for token in node.tokens:
-                if token.type == Token.ARGUMENT and not token.value:
-                    if not prev_token or prev_token.type != Token.SEPARATOR:
-                        tokens.append(new_line_sep)
-                    tokens.append(Token(Token.ARGUMENT, "${EMPTY}"))
-                else:
-                    if token.type == Token.EOL:
-                        token.value = token.value.lstrip(" ")
-                    tokens.append(token)
-                prev_token = token
+            node.tokens = self._replace_empty_args(node.tokens, "${EMPTY}", trim_eol=True)
+        else:
+            node.tokens = self._insert_arg_after_token(node.tokens, node.tokens[0], node.name[0] + "{EMPTY}")
+        return node
+
+    @skip_if_disabled
+    def visit_Var(self, node: Var) -> Var:  # noqa: N802
+        """Handle inline VAR statements to replace empty values with proper EMPTY variables."""
+        if Var is None or node.errors:
+            return node
+
+        variable_token = node.get_token(Token.VARIABLE)
+        if not variable_token:
+            return node
+
+        args = node.get_tokens(Token.ARGUMENT)
+        if any((arg.value or "").strip() for arg in args):
+            return node
+
+        empty_value = self._get_empty_value(variable_token.value)
+        if empty_value is None:
+            return node
+
+        if args:
+            node.tokens = self._replace_empty_args(node.tokens, empty_value)
         else:
-            tokens = [node.tokens[0], sep, Token(Token.ARGUMENT, node.name[0] + "{EMPTY}"), *node.tokens[1:]]
-        node.tokens = tokens
+            node.tokens = self._insert_arg_after_token(node.tokens, variable_token, empty_value)
         return node
diff --git a/tests/formatter/formatters/ReplaceEmptyValues/expected/all_sections.robot b/tests/formatter/formatters/ReplaceEmptyValues/expected/all_sections.robot
new file mode 100644
index 000000000..d7dbfbeca
--- /dev/null
+++ b/tests/formatter/formatters/ReplaceEmptyValues/expected/all_sections.robot
@@ -0,0 +1,18 @@
+*** Variables ***
+${EMPTY_SCALAR}     ${EMPTY}
+@{EMPTY_LIST}       @{EMPTY}
+&{EMPTY_DICT}       &{EMPTY}
+
+
+*** Test Cases ***
+Test With Empty Vars
+    VAR    ${empty_in_test}    ${EMPTY}
+    VAR    @{empty_list_test}    @{EMPTY}
+    Log    ${empty_in_test}
+
+
+*** Keywords ***
+Keyword With Empty Vars
+    VAR    ${empty_in_kw}    ${EMPTY}
+    VAR    &{empty_dict_kw}    &{EMPTY}
+    Log    ${empty_in_kw}
diff --git a/tests/formatter/formatters/ReplaceEmptyValues/expected/keywords.robot b/tests/formatter/formatters/ReplaceEmptyValues/expected/keywords.robot
new file mode 100644
index 000000000..5c787e996
--- /dev/null
+++ b/tests/formatter/formatters/ReplaceEmptyValues/expected/keywords.robot
@@ -0,0 +1,21 @@
+*** Keywords ***
+Keyword With Empty Vars
+    VAR    ${empty_scalar}    ${EMPTY}
+    VAR    @{empty_list}    @{EMPTY}
+    VAR    &{empty_dict}    &{EMPTY}
+    VAR    ${empty_scalar_cont}
+    ...    ${EMPTY}
+    VAR    ${scalar}    value
+    VAR    @{list}    item1    item2
+    VAR    &{dict}    key=value
+    Log    ${empty_scalar}
+
+Keyword With Traditional VAR
+    [Documentation]    Test with traditional Set Variable
+    ${empty}    Set Variable
+    ${filled}    Set Variable    value
+    RETURN    ${empty}
+
+Keyword With Empty Assignment
+    ${var1}    ${var2}    ${var3}    Get Multiple Values
+    Log Many    ${var1}    ${var2}    ${var3}
diff --git a/tests/formatter/formatters/ReplaceEmptyValues/expected/mixed_sections.robot b/tests/formatter/formatters/ReplaceEmptyValues/expected/mixed_sections.robot
new file mode 100644
index 000000000..8b2f1ec30
--- /dev/null
+++ b/tests/formatter/formatters/ReplaceEmptyValues/expected/mixed_sections.robot
@@ -0,0 +1,15 @@
+*** Variables ***
+${VAR_EMPTY}    ${EMPTY}
+@{VAR_LIST}     @{EMPTY}
+
+
+*** Test Cases ***
+Test Should Not Be Modified
+    VAR    ${empty_in_test}
+    Log    ${empty_in_test}
+
+
+*** Keywords ***
+Keyword With Empty Vars
+    VAR    ${empty_in_kw}    ${EMPTY}
+    Log    ${empty_in_kw}
diff --git a/tests/formatter/formatters/ReplaceEmptyValues/expected/testcases.robot b/tests/formatter/formatters/ReplaceEmptyValues/expected/testcases.robot
new file mode 100644
index 000000000..1ad68dd32
--- /dev/null
+++ b/tests/formatter/formatters/ReplaceEmptyValues/expected/testcases.robot
@@ -0,0 +1,21 @@
+*** Test Cases ***
+Test With Empty Vars
+    VAR    ${empty_scalar}    ${EMPTY}
+    VAR    @{empty_list}    @{EMPTY}
+    VAR    &{empty_dict}    &{EMPTY}
+    VAR    ${empty_scalar_cont}
+    ...    ${EMPTY}
+    VAR    ${scalar}    value
+    Log    ${empty_scalar}
+
+Test With Scoped VAR
+    VAR    ${empty_test}    ${EMPTY}    scope=TEST
+    VAR    ${empty_suite}    ${EMPTY}    scope=SUITE
+    VAR    ${empty_global}    ${EMPTY}    scope=GLOBAL
+    VAR    @{empty_list}    @{EMPTY}    scope=TEST
+    Log    ${empty_test}
+
+Test Traditional Assignment
+    ${empty}    Set Variable
+    ${filled}    Set Variable    value
+    Log    ${empty}
diff --git a/tests/formatter/formatters/ReplaceEmptyValues/source/all_sections.robot b/tests/formatter/formatters/ReplaceEmptyValues/source/all_sections.robot
new file mode 100644
index 000000000..2456fd380
--- /dev/null
+++ b/tests/formatter/formatters/ReplaceEmptyValues/source/all_sections.robot
@@ -0,0 +1,18 @@
+*** Variables ***
+${EMPTY_SCALAR}     ${EMPTY}
+@{EMPTY_LIST}       @{EMPTY}
+&{EMPTY_DICT}       &{EMPTY}
+
+
+*** Test Cases ***
+Test With Empty Vars
+    VAR    ${empty_in_test}
+    VAR    @{empty_list_test}
+    Log    ${empty_in_test}
+
+
+*** Keywords ***
+Keyword With Empty Vars
+    VAR    ${empty_in_kw}
+    VAR    &{empty_dict_kw}
+    Log    ${empty_in_kw}
diff --git a/tests/formatter/formatters/ReplaceEmptyValues/source/keywords.robot b/tests/formatter/formatters/ReplaceEmptyValues/source/keywords.robot
new file mode 100644
index 000000000..e6a845765
--- /dev/null
+++ b/tests/formatter/formatters/ReplaceEmptyValues/source/keywords.robot
@@ -0,0 +1,21 @@
+*** Keywords ***
+Keyword With Empty Vars
+    VAR    ${empty_scalar}
+    VAR    @{empty_list}
+    VAR    &{empty_dict}
+    VAR    ${empty_scalar_cont}
+    ...
+    VAR    ${scalar}    value
+    VAR    @{list}    item1    item2
+    VAR    &{dict}    key=value
+    Log    ${empty_scalar}
+
+Keyword With Traditional VAR
+    [Documentation]    Test with traditional Set Variable
+    ${empty}    Set Variable
+    ${filled}    Set Variable    value
+    RETURN    ${empty}
+
+Keyword With Empty Assignment
+    ${var1}    ${var2}    ${var3}    Get Multiple Values
+    Log Many    ${var1}    ${var2}    ${var3}
diff --git a/tests/formatter/formatters/ReplaceEmptyValues/source/mixed_sections.robot b/tests/formatter/formatters/ReplaceEmptyValues/source/mixed_sections.robot
new file mode 100644
index 000000000..017660f05
--- /dev/null
+++ b/tests/formatter/formatters/ReplaceEmptyValues/source/mixed_sections.robot
@@ -0,0 +1,15 @@
+*** Variables ***
+${VAR_EMPTY}    ${EMPTY}
+@{VAR_LIST}     @{EMPTY}
+
+
+*** Test Cases ***
+Test Should Not Be Modified
+    VAR    ${empty_in_test}
+    Log    ${empty_in_test}
+
+
+*** Keywords ***
+Keyword With Empty Vars
+    VAR    ${empty_in_kw}
+    Log    ${empty_in_kw}
diff --git a/tests/formatter/formatters/ReplaceEmptyValues/source/testcases.robot b/tests/formatter/formatters/ReplaceEmptyValues/source/testcases.robot
new file mode 100644
index 000000000..730e1d477
--- /dev/null
+++ b/tests/formatter/formatters/ReplaceEmptyValues/source/testcases.robot
@@ -0,0 +1,21 @@
+*** Test Cases ***
+Test With Empty Vars
+    VAR    ${empty_scalar}
+    VAR    @{empty_list}
+    VAR    &{empty_dict}
+    VAR    ${empty_scalar_cont}
+    ...
+    VAR    ${scalar}    value
+    Log    ${empty_scalar}
+
+Test With Scoped VAR
+    VAR    ${empty_test}    scope=TEST
+    VAR    ${empty_suite}    scope=SUITE
+    VAR    ${empty_global}    scope=GLOBAL
+    VAR    @{empty_list}    scope=TEST
+    Log    ${empty_test}
+
+Test Traditional Assignment
+    ${empty}    Set Variable
+    ${filled}    Set Variable    value
+    Log    ${empty}
diff --git a/tests/formatter/formatters/ReplaceEmptyValues/source/variables_only.robot b/tests/formatter/formatters/ReplaceEmptyValues/source/variables_only.robot
new file mode 100644
index 000000000..4f3dec0eb
--- /dev/null
+++ b/tests/formatter/formatters/ReplaceEmptyValues/source/variables_only.robot
@@ -0,0 +1,4 @@
+*** Variables ***
+${EMPTY_VAR}        ${EMPTY}
+@{EMPTY_LIST}       @{EMPTY}
+&{EMPTY_DICT}       &{EMPTY}
diff --git a/tests/formatter/formatters/ReplaceEmptyValues/test_formatter.py b/tests/formatter/formatters/ReplaceEmptyValues/test_formatter.py
index 0fa4c9aac..15aee033d 100644
--- a/tests/formatter/formatters/ReplaceEmptyValues/test_formatter.py
+++ b/tests/formatter/formatters/ReplaceEmptyValues/test_formatter.py
@@ -9,3 +9,57 @@ def test_formatter(self):
 
     def test_skip_section(self):
         self.compare(source="test.robot", skip_sections=["variables"], not_modified=True)
+
+    def test_keywords_section(self):
+        """Test formatting empty values in Keywords section only."""
+        configure = [f"{self.FORMATTER_NAME}.sections=keywords"]
+        self.compare(
+            source="keywords.robot",
+            expected="keywords.robot",
+            configure=configure,
+        )
+
+    def test_testcases_section(self):
+        """Test formatting empty values in Test Cases section only."""
+        configure = [f"{self.FORMATTER_NAME}.sections=testcases"]
+        self.compare(
+            source="testcases.robot",
+            expected="testcases.robot",
+            configure=configure,
+        )
+
+    def test_all_sections(self):
+        """Test formatting empty values in all sections (variables, keywords, testcases)."""
+        configure = [f"{self.FORMATTER_NAME}.sections=all"]
+        self.compare(
+            source="all_sections.robot",
+            expected="all_sections.robot",
+            configure=configure,
+        )
+
+    def test_mixed_sections_list(self):
+        """Test formatting with a list of specific sections (variables and keywords)."""
+        configure = [f"{self.FORMATTER_NAME}.sections=variables,keywords"]
+        self.compare(
+            source="mixed_sections.robot",
+            expected="mixed_sections.robot",
+            configure=configure,
+        )
+
+    def test_keywords_section_only_does_not_modify_variables(self):
+        """Test that when configured for keywords only, variables section is not modified."""
+        configure = [f"{self.FORMATTER_NAME}.sections=keywords"]
+        self.compare(
+            source="variables_only.robot",
+            not_modified=True,
+            configure=configure,
+        )
+
+    def test_testcases_section_only_does_not_modify_variables(self):
+        """Test that when configured for testcases only, variables section is not modified."""
+        configure = [f"{self.FORMATTER_NAME}.sections=testcases"]
+        self.compare(
+            source="variables_only.robot",
+            not_modified=True,
+            configure=configure,
+        )