diff --git a/frontend/src/container/NewDashboard/DashboardSettings/Variables/VariableItem/VariableItem.tsx b/frontend/src/container/NewDashboard/DashboardSettings/Variables/VariableItem/VariableItem.tsx
index 31d443abff..f8a08f2677 100644
--- a/frontend/src/container/NewDashboard/DashboardSettings/Variables/VariableItem/VariableItem.tsx
+++ b/frontend/src/container/NewDashboard/DashboardSettings/Variables/VariableItem/VariableItem.tsx
@@ -33,7 +33,7 @@ const { Option } = Select;
 interface VariableItemProps {
 	variableData: IDashboardVariable;
 	onCancel: () => void;
-	onSave: (name: string, arg0: IDashboardVariable) => void;
+	onSave: (name: string, arg0: IDashboardVariable, arg1: string) => void;
 	validateName: (arg0: string) => boolean;
 	variableViewMode: TVariableViewMode;
 }
@@ -118,8 +118,11 @@ function VariableItem({
 			modificationUUID: v4(),
 		};
 		onSave(
-			(variableViewMode === 'EDIT' ? variableData.name : variableName) as string,
+			variableName,
 			newVariableData,
+			(variableViewMode === 'EDIT' && variableName !== variableData.name
+				? variableData.name
+				: '') as string,
 		);
 		onCancel();
 	};
@@ -162,7 +165,9 @@ function VariableItem({
 						value={variableName}
 						onChange={(e): void => {
 							setVariableName(e.target.value);
-							setErrorName(!validateName(e.target.value));
+							setErrorName(
+								!validateName(e.target.value) && e.target.value !== variableData.name,
+							);
 						}}
 					/>
 					<div>
diff --git a/frontend/src/container/NewDashboard/DashboardSettings/Variables/index.tsx b/frontend/src/container/NewDashboard/DashboardSettings/Variables/index.tsx
index f070752ac4..02f2d3e9ae 100644
--- a/frontend/src/container/NewDashboard/DashboardSettings/Variables/index.tsx
+++ b/frontend/src/container/NewDashboard/DashboardSettings/Variables/index.tsx
@@ -62,13 +62,19 @@ function VariablesSetting({
 	const onVariableSaveHandler = (
 		name: string,
 		variableData: IDashboardVariable,
+		oldName: string,
 	): void => {
 		if (!variableData.name) {
 			return;
 		}
+
 		const newVariables = { ...variables };
-		newVariables[variableData.name] = variableData;
-		if (variableViewMode === 'EDIT') delete newVariables[name];
+		newVariables[name] = variableData;
+
+		if (oldName) {
+			delete newVariables[oldName];
+		}
+
 		updateDashboardVariables(newVariables);
 		onDoneVariableViewMode();
 	};