diff --git a/ingestion/src/metadata/ingestion/source/pipeline/airflow/lineage_parser.py b/ingestion/src/metadata/ingestion/source/pipeline/airflow/lineage_parser.py
index 4ad7bd3a54a..4147cb25357 100644
--- a/ingestion/src/metadata/ingestion/source/pipeline/airflow/lineage_parser.py
+++ b/ingestion/src/metadata/ingestion/source/pipeline/airflow/lineage_parser.py
@@ -87,7 +87,8 @@ def parse_xlets(xlet: List[dict]) -> Optional[Dict[str, List[str]]]:
     """
     if isinstance(xlet, list) and len(xlet) and isinstance(xlet[0], dict):
         xlet_dict = xlet[0]
-
+        if isinstance(xlet_dict, dict) and xlet_dict.get("__var"):
+            xlet_dict = xlet_dict["__var"]
         return {
             key: value for key, value in xlet_dict.items() if isinstance(value, list)
         }
diff --git a/ingestion/src/metadata/ingestion/source/pipeline/airflow/metadata.py b/ingestion/src/metadata/ingestion/source/pipeline/airflow/metadata.py
index 411a0aec9c7..f44bf49a8e0 100644
--- a/ingestion/src/metadata/ingestion/source/pipeline/airflow/metadata.py
+++ b/ingestion/src/metadata/ingestion/source/pipeline/airflow/metadata.py
@@ -44,6 +44,7 @@ from metadata.generated.schema.type.entityReference import EntityReference
 from metadata.ingestion.api.source import InvalidSourceException
 from metadata.ingestion.connections.session import create_and_bind_session
 from metadata.ingestion.models.pipeline_status import OMetaPipelineStatus
+from metadata.ingestion.source.pipeline.airflow.lineage_parser import get_xlets_from_dag
 from metadata.ingestion.source.pipeline.pipeline_service import PipelineServiceSource
 from metadata.utils.helpers import datetime_to_ts
 from metadata.utils.logger import ingestion_logger
@@ -408,11 +409,12 @@ class AirflowSource(PipelineServiceSource):
             )
         )
 
-        for task in dag.tasks:
-            for from_fqn in self.get_inlets(task) or []:
+        xlets = get_xlets_from_dag(dag=dag)
+        for xlet in xlets:
+            for from_fqn in xlet.inlets or []:
                 from_entity = self.metadata.get_by_name(entity=Table, fqn=from_fqn)
                 if from_entity:
-                    for to_fqn in self.get_outlets(task) or []:
+                    for to_fqn in xlet.outlets or []:
                         to_entity = self.metadata.get_by_name(entity=Table, fqn=to_fqn)
                         if to_entity:
                             lineage = AddLineageRequest(
diff --git a/ingestion/tests/unit/airflow/test_lineage_parser.py b/ingestion/tests/unit/airflow/test_lineage_parser.py
index cdd7484f394..1399f788425 100644
--- a/ingestion/tests/unit/airflow/test_lineage_parser.py
+++ b/ingestion/tests/unit/airflow/test_lineage_parser.py
@@ -93,13 +93,13 @@ class TestAirflowLineageParser(TestCase):
             BashOperator(
                 task_id="print_date",
                 bash_command="date",
-                inlets={"tables": ["A"]},
+                inlets={"__var": {"tables": ["A"]}},
             )
 
             BashOperator(
                 task_id="sleep",
                 bash_command="sleep 1",
-                outlets={"tables": ["B"]},
+                outlets={"__var": {"tables": ["B"]}},
             )
 
             self.assertEqual(