feat: improved performance around multiselect component and added confirm modal for apply to all

* feat: added dynamic variable to the dashboard details

* feat: added new component to existing variables

* feat: added enhancement to multiselect and select for dyn-variables

* feat: added refetch method between all dynamic-variables

* feat: correct error handling

* feat: correct error handling

* feat: enforced non-empty selectedvalues and default value

* feat: added client and server side searches

* feat: retry on error

* feat: correct error handling

* feat: handle defautl value in existing variables

* feat: lowercase the source for payload

* feat: fixed the incorrect assignment of active indices

* feat: improved handling of all option

* feat: improved the ALL option visuals

* feat: handled default value enforcement in existing variables

* feat: added unix time to values call

* feat: added incomplete data message and info to search

* feat: changed dashboard panel call handling with existing variables

* feat: adjusted the response type and data with the new API schema for values

* feat: code refactor

* feat: made dyn-variable option as the default

* feat: added test cases for dyn variable creation and completion

* feat: updated test cases

frontend/src/api/dynamicVariables/__tests__/getFieldKeys.test.ts

@@ -0,0 +1,114 @@
+/* eslint-disable sonarjs/no-duplicate-string */
+import { ApiBaseInstance } from 'api';
+
+import { getFieldKeys } from '../getFieldKeys';
+
+// Mock the API instance
+jest.mock('api', () => ({
+	ApiBaseInstance: {
+		get: jest.fn(),
+	},
+}));
+
+describe('getFieldKeys API', () => {
+	beforeEach(() => {
+		jest.clearAllMocks();
+	});
+
+	const mockSuccessResponse = {
+		data: {
+			status: 'success',
+			data: {
+				keys: {
+					'service.name': [],
+					'http.status_code': [],
+				},
+				complete: true,
+			},
+		},
+	};
+
+	it('should call API with correct parameters when no args provided', async () => {
+		// Mock successful API response
+		(ApiBaseInstance.get as jest.Mock).mockResolvedValueOnce(mockSuccessResponse);
+
+		// Call function with no parameters
+		await getFieldKeys();
+
+		// Verify API was called correctly with empty params object
+		expect(ApiBaseInstance.get).toHaveBeenCalledWith('/fields/keys', {
+			params: {},
+		});
+	});
+
+	it('should call API with signal parameter when provided', async () => {
+		// Mock successful API response
+		(ApiBaseInstance.get as jest.Mock).mockResolvedValueOnce(mockSuccessResponse);
+
+		// Call function with signal parameter
+		await getFieldKeys('traces');
+
+		// Verify API was called with signal parameter
+		expect(ApiBaseInstance.get).toHaveBeenCalledWith('/fields/keys', {
+			params: { signal: 'traces' },
+		});
+	});
+
+	it('should call API with name parameter when provided', async () => {
+		// Mock successful API response
+		(ApiBaseInstance.get as jest.Mock).mockResolvedValueOnce({
+			data: {
+				status: 'success',
+				data: {
+					keys: { service: [] },
+					complete: false,
+				},
+			},
+		});
+
+		// Call function with name parameter
+		await getFieldKeys(undefined, 'service');
+
+		// Verify API was called with name parameter
+		expect(ApiBaseInstance.get).toHaveBeenCalledWith('/fields/keys', {
+			params: { name: 'service' },
+		});
+	});
+
+	it('should call API with both signal and name when provided', async () => {
+		// Mock successful API response
+		(ApiBaseInstance.get as jest.Mock).mockResolvedValueOnce({
+			data: {
+				status: 'success',
+				data: {
+					keys: { service: [] },
+					complete: false,
+				},
+			},
+		});
+
+		// Call function with both parameters
+		await getFieldKeys('logs', 'service');
+
+		// Verify API was called with both parameters
+		expect(ApiBaseInstance.get).toHaveBeenCalledWith('/fields/keys', {
+			params: { signal: 'logs', name: 'service' },
+		});
+	});
+
+	it('should return properly formatted response', async () => {
+		// Mock API to return our response
+		(ApiBaseInstance.get as jest.Mock).mockResolvedValueOnce(mockSuccessResponse);
+
+		// Call the function
+		const result = await getFieldKeys('traces');
+
+		// Verify the returned structure matches our expected format
+		expect(result).toEqual({
+			statusCode: 200,
+			error: null,
+			message: 'success',
+			payload: mockSuccessResponse.data.data,
+		});
+	});
+});

frontend/src/api/dynamicVariables/__tests__/getFieldValues.test.ts

@@ -0,0 +1,209 @@
+/* eslint-disable sonarjs/no-duplicate-string */
+import { ApiBaseInstance } from 'api';
+
+import { getFieldValues } from '../getFieldValues';
+
+// Mock the API instance
+jest.mock('api', () => ({
+	ApiBaseInstance: {
+		get: jest.fn(),
+	},
+}));
+
+describe('getFieldValues API', () => {
+	beforeEach(() => {
+		jest.clearAllMocks();
+	});
+
+	it('should call the API with correct parameters (no options)', async () => {
+		// Mock API response
+		(ApiBaseInstance.get as jest.Mock).mockResolvedValueOnce({
+			data: {
+				status: 'success',
+				data: {
+					values: {
+						stringValues: ['frontend', 'backend'],
+					},
+					complete: true,
+				},
+			},
+		});
+
+		// Call function without parameters
+		await getFieldValues();
+
+		// Verify API was called correctly with empty params
+		expect(ApiBaseInstance.get).toHaveBeenCalledWith('/fields/values', {
+			params: {},
+		});
+	});
+
+	it('should call the API with signal parameter', async () => {
+		// Mock API response
+		(ApiBaseInstance.get as jest.Mock).mockResolvedValueOnce({
+			data: {
+				status: 'success',
+				data: {
+					values: {
+						stringValues: ['frontend', 'backend'],
+					},
+					complete: true,
+				},
+			},
+		});
+
+		// Call function with signal parameter
+		await getFieldValues('traces');
+
+		// Verify API was called with signal parameter
+		expect(ApiBaseInstance.get).toHaveBeenCalledWith('/fields/values', {
+			params: { signal: 'traces' },
+		});
+	});
+
+	it('should call the API with name parameter', async () => {
+		// Mock API response
+		(ApiBaseInstance.get as jest.Mock).mockResolvedValueOnce({
+			data: {
+				status: 'success',
+				data: {
+					values: {
+						stringValues: ['frontend', 'backend'],
+					},
+					complete: true,
+				},
+			},
+		});
+
+		// Call function with name parameter
+		await getFieldValues(undefined, 'service.name');
+
+		// Verify API was called with name parameter
+		expect(ApiBaseInstance.get).toHaveBeenCalledWith('/fields/values', {
+			params: { name: 'service.name' },
+		});
+	});
+
+	it('should call the API with value parameter', async () => {
+		// Mock API response
+		(ApiBaseInstance.get as jest.Mock).mockResolvedValueOnce({
+			data: {
+				status: 'success',
+				data: {
+					values: {
+						stringValues: ['frontend'],
+					},
+					complete: false,
+				},
+			},
+		});
+
+		// Call function with value parameter
+		await getFieldValues(undefined, 'service.name', 'front');
+
+		// Verify API was called with value parameter
+		expect(ApiBaseInstance.get).toHaveBeenCalledWith('/fields/values', {
+			params: { name: 'service.name', value: 'front' },
+		});
+	});
+
+	it('should call the API with time range parameters', async () => {
+		// Mock API response
+		(ApiBaseInstance.get as jest.Mock).mockResolvedValueOnce({
+			data: {
+				status: 'success',
+				data: {
+					values: {
+						stringValues: ['frontend', 'backend'],
+					},
+					complete: true,
+				},
+			},
+		});
+
+		// Call function with time range parameters
+		const startUnixMilli = 1625097600000000; // Note: nanoseconds
+		const endUnixMilli = 1625184000000000;
+		await getFieldValues(
+			'logs',
+			'service.name',
+			undefined,
+			startUnixMilli,
+			endUnixMilli,
+		);
+
+		// Verify API was called with time range parameters (converted to milliseconds)
+		expect(ApiBaseInstance.get).toHaveBeenCalledWith('/fields/values', {
+			params: {
+				signal: 'logs',
+				name: 'service.name',
+				startUnixMilli: '1625097600', // Should be converted to seconds (divided by 1000000)
+				endUnixMilli: '1625184000', // Should be converted to seconds (divided by 1000000)
+			},
+		});
+	});
+
+	it('should normalize the response values', async () => {
+		// Mock API response with multiple value types
+		const mockResponse = {
+			data: {
+				status: 'success',
+				data: {
+					values: {
+						stringValues: ['frontend', 'backend'],
+						numberValues: [200, 404],
+						boolValues: [true, false],
+					},
+					complete: true,
+				},
+			},
+		};
+
+		(ApiBaseInstance.get as jest.Mock).mockResolvedValueOnce(mockResponse);
+
+		// Call the function
+		const result = await getFieldValues('traces', 'mixed.values');
+
+		// Verify the response has normalized values array
+		expect(result.payload?.normalizedValues).toContain('frontend');
+		expect(result.payload?.normalizedValues).toContain('backend');
+		expect(result.payload?.normalizedValues).toContain('200');
+		expect(result.payload?.normalizedValues).toContain('404');
+		expect(result.payload?.normalizedValues).toContain('true');
+		expect(result.payload?.normalizedValues).toContain('false');
+		expect(result.payload?.normalizedValues?.length).toBe(6);
+	});
+
+	it('should return a properly formatted success response', async () => {
+		// Create mock response
+		const mockApiResponse = {
+			data: {
+				status: 'success',
+				data: {
+					values: {
+						stringValues: ['frontend', 'backend'],
+					},
+					complete: true,
+				},
+			},
+		};
+
+		// Mock API to return our response
+		(ApiBaseInstance.get as jest.Mock).mockResolvedValueOnce(mockApiResponse);
+
+		// Call the function
+		const result = await getFieldValues('traces', 'service.name');
+
+		// Verify the returned structure
+		expect(result).toEqual({
+			statusCode: 200,
+			error: null,
+			message: 'success',
+			payload: expect.objectContaining({
+				values: expect.any(Object),
+				normalizedValues: expect.any(Array),
+				complete: true,
+			}),
+		});
+	});
+});

frontend/src/api/dynamicVariables/getFieldKeys.ts

@@ -0,0 +1,34 @@
+import { ApiBaseInstance } from 'api';
+import { ErrorResponse, SuccessResponse } from 'types/api';
+import { FieldKeyResponse } from 'types/api/dynamicVariables/getFieldKeys';
+
+/**
+ * Get field keys for a given signal type
+ * @param signal Type of signal (traces, logs, metrics)
+ * @param name Optional search text
+ */
+export const getFieldKeys = async (
+	signal?: 'traces' | 'logs' | 'metrics',
+	name?: string,
+): Promise<SuccessResponse<FieldKeyResponse> | ErrorResponse> => {
+	const params: Record<string, string> = {};
+
+	if (signal) {
+		params.signal = encodeURIComponent(signal);
+	}
+
+	if (name) {
+		params.name = encodeURIComponent(name);
+	}
+
+	const response = await ApiBaseInstance.get('/fields/keys', { params });
+
+	return {
+		statusCode: 200,
+		error: null,
+		message: response.data.status,
+		payload: response.data.data,
+	};
+};
+
+export default getFieldKeys;

frontend/src/api/dynamicVariables/getFieldValues.ts

@@ -0,0 +1,80 @@
+import { ApiBaseInstance } from 'api';
+import { ErrorResponse, SuccessResponse } from 'types/api';
+import { FieldValueResponse } from 'types/api/dynamicVariables/getFieldValues';
+
+/**
+ * Get field values for a given signal type and field name
+ * @param signal Type of signal (traces, logs, metrics)
+ * @param name Name of the attribute for which values are being fetched
+ * @param value Optional search text
+ */
+export const getFieldValues = async (
+	signal?: 'traces' | 'logs' | 'metrics',
+	name?: string,
+	searchText?: string,
+	startUnixMilli?: number,
+	endUnixMilli?: number,
+	existingQuery?: string,
+): Promise<SuccessResponse<FieldValueResponse> | ErrorResponse> => {
+	const params: Record<string, string> = {};
+
+	if (signal) {
+		params.signal = encodeURIComponent(signal);
+	}
+
+	if (name) {
+		params.name = encodeURIComponent(name);
+	}
+
+	if (searchText) {
+		params.searchText = encodeURIComponent(searchText);
+	}
+
+	if (startUnixMilli) {
+		params.startUnixMilli = Math.floor(startUnixMilli / 1000000).toString();
+	}
+
+	if (endUnixMilli) {
+		params.endUnixMilli = Math.floor(endUnixMilli / 1000000).toString();
+	}
+
+	if (existingQuery) {
+		params.existingQuery = existingQuery;
+	}
+
+	const response = await ApiBaseInstance.get('/fields/values', { params });
+
+	// Normalize values from different types (stringValues, boolValues, etc.)
+	if (response.data?.data?.values) {
+		const allValues: string[] = [];
+		Object.entries(response.data.data.values).forEach(
+			([key, valueArray]: [string, any]) => {
+				// Skip RelatedValues as they should be kept separate
+				if (key === 'relatedValues') {
+					return;
+				}
+
+				if (Array.isArray(valueArray)) {
+					allValues.push(...valueArray.map(String));
+				}
+			},
+		);
+
+		// Add a normalized values array to the response
+		response.data.data.normalizedValues = allValues;
+
+		// Add relatedValues to the response as per FieldValueResponse
+		if (response.data.data.values.relatedValues) {
+			response.data.data.relatedValues = response.data.data.values.relatedValues;
+		}
+	}
+
+	return {
+		statusCode: 200,
+		error: null,
+		message: response.data.status,
+		payload: response.data.data,
+	};
+};
+
+export default getFieldValues;

frontend/src/api/v5/queryRange/prepareQueryRangePayloadV5.ts

@@ -24,6 +24,7 @@ import {
 	TelemetryFieldKey,
 	TraceAggregation,
 	VariableItem,
+	VariableType,
 } from 'types/api/v5/queryRange';
 import { EQueryType } from 'types/common/dashboard';
 import { DataSource } from 'types/common/queryBuilder';
@@ -406,6 +407,7 @@ export const prepareQueryRangePayloadV5 = ({
 	formatForWeb,
 	originalGraphType,
 	fillGaps,
+	dynamicVariables,
 }: GetQueryResultsProps): PrepareQueryRangePayloadV5Result => {
 	let legendMap: Record<string, string> = {};
 	const requestType = mapPanelTypeToRequestType(graphType);
@@ -497,7 +499,12 @@ export const prepareQueryRangePayloadV5 = ({
 			fillGaps: fillGaps || false,
 		},
 		variables: Object.entries(variables).reduce((acc, [key, value]) => {
-			acc[key] = { value };
+			acc[key] = {
+				value,
+				type: dynamicVariables
+					?.find((v) => v.name === key)
+					?.type?.toLowerCase() as VariableType,
+			};
 			return acc;
 		}, {} as Record<string, VariableItem>),
 	};

frontend/src/components/HostMetricsDetail/Metrics/Metrics.tsx

@@ -13,6 +13,7 @@ import {
 	CustomTimeType,
 	Time,
 } from 'container/TopNav/DateTimeSelectionV2/config';
+import { useGetDynamicVariables } from 'hooks/dashboard/useGetDynamicVariables';
 import { useQueryBuilder } from 'hooks/queryBuilder/useQueryBuilder';
 import { useIsDarkMode } from 'hooks/useDarkMode';
 import { useResizeObserver } from 'hooks/useDimensions';
@@ -71,6 +72,8 @@ function Metrics({
 		[hostName, timeRange.startTime, timeRange.endTime, dotMetricsEnabled],
 	);
 
+	const { dynamicVariables } = useGetDynamicVariables();
+
 	const queries = useQueries(
 		queryPayloads.map((payload, index) => ({
 			queryKey: ['host-metrics', payload, ENTITY_VERSION_V4, 'HOST'],
@@ -78,7 +81,8 @@ function Metrics({
 				signal,
 			}: QueryFunctionContext): Promise<
 				SuccessResponse<MetricRangePayloadProps>
-			> => GetMetricQueryRange(payload, ENTITY_VERSION_V4, signal),
+			> =>
+				GetMetricQueryRange(payload, ENTITY_VERSION_V4, dynamicVariables, signal),
 			enabled: !!payload && visibilities[index],
 			keepPreviousData: true,
 		})),

frontend/src/components/NewSelect/CustomMultiSelect.tsx

@@ -23,11 +23,13 @@ import React, {
 	useRef,
 	useState,
 } from 'react';
+import { Virtuoso } from 'react-virtuoso';
 import { popupContainer } from 'utils/selectPopupContainer';
 
 import { CustomMultiSelectProps, CustomTagProps, OptionData } from './types';
 import {
 	filterOptionsBySearch,
+	handleScrollToBottom,
 	prioritizeOrAddOptionForMultiSelect,
 	SPACEKEY,
 } from './utils';
@@ -37,7 +39,7 @@ enum ToggleTagValue {
 	All = 'All',
 }
 
-const ALL_SELECTED_VALUE = '__all__'; // Constant for the special value
+const ALL_SELECTED_VALUE = '__ALL__'; // Constant for the special value
 
 const CustomMultiSelect: React.FC<CustomMultiSelectProps> = ({
 	placeholder = 'Search...',
@@ -62,6 +64,10 @@ const CustomMultiSelect: React.FC<CustomMultiSelectProps> = ({
 	allowClear = false,
 	onRetry,
 	maxTagTextLength,
+	onDropdownVisibleChange,
+	showIncompleteDataMessage = false,
+	showLabels = false,
+	enableRegexOption = false,
 	...rest
 }) => {
 	// ===== State & Refs =====
@@ -78,6 +84,8 @@ const CustomMultiSelect: React.FC<CustomMultiSelectProps> = ({
 	const optionRefs = useRef<Record<number, HTMLDivElement | null>>({});
 	const [visibleOptions, setVisibleOptions] = useState<OptionData[]>([]);
 	const isClickInsideDropdownRef = useRef(false);
+	const justOpenedRef = useRef<boolean>(false);
+	const [isScrolledToBottom, setIsScrolledToBottom] = useState(false);
 
 	// Convert single string value to array for consistency
 	const selectedValues = useMemo(
@@ -124,6 +132,12 @@ const CustomMultiSelect: React.FC<CustomMultiSelectProps> = ({
 		return allAvailableValues.every((val) => selectedValues.includes(val));
 	}, [selectedValues, allAvailableValues, enableAllSelection]);
 
+	// Define allOptionShown earlier in the code
+	const allOptionShown = useMemo(
+		() => value === ALL_SELECTED_VALUE || value === 'ALL',
+		[value],
+	);
+
 	// Value passed to the underlying Ant Select component
 	const displayValue = useMemo(
 		() => (isAllSelected ? [ALL_SELECTED_VALUE] : selectedValues),
@@ -132,10 +146,18 @@ const CustomMultiSelect: React.FC<CustomMultiSelectProps> = ({
 
 	// ===== Internal onChange Handler =====
 	const handleInternalChange = useCallback(
-		(newValue: string | string[]): void => {
+		(newValue: string | string[], directCaller?: boolean): void => {
 			// Ensure newValue is an array
 			const currentNewValue = Array.isArray(newValue) ? newValue : [];
 
+			if (
+				(allOptionShown || isAllSelected) &&
+				!directCaller &&
+				currentNewValue.length === 0
+			) {
+				return;
+			}
+
 			if (!onChange) return;
 
 			// Case 1: Cleared (empty array or undefined)
@@ -144,7 +166,7 @@ const CustomMultiSelect: React.FC<CustomMultiSelectProps> = ({
 				return;
 			}
 
-			// Case 2: "__all__" is selected (means select all actual values)
+			// Case 2: "__ALL__" is selected (means select all actual values)
 			if (currentNewValue.includes(ALL_SELECTED_VALUE)) {
 				const allActualOptions = allAvailableValues.map(
 					(v) => options.flat().find((o) => o.value === v) || { label: v, value: v },
@@ -175,7 +197,14 @@ const CustomMultiSelect: React.FC<CustomMultiSelectProps> = ({
 				}
 			}
 		},
-		[onChange, allAvailableValues, options, enableAllSelection],
+		[
+			allOptionShown,
+			isAllSelected,
+			onChange,
+			allAvailableValues,
+			options,
+			enableAllSelection,
+		],
 	);
 
 	// ===== Existing Callbacks (potentially needing adjustment later) =====
@@ -510,13 +539,46 @@ const CustomMultiSelect: React.FC<CustomMultiSelectProps> = ({
 			}
 
 			// Normal single value handling
-			setSearchText(value.trim());
+			const trimmedValue = value.trim();
+			setSearchText(trimmedValue);
 			if (!isOpen) {
 				setIsOpen(true);
+				justOpenedRef.current = true;
 			}
-			if (onSearch) onSearch(value.trim());
+
+			// Reset active index when search changes if dropdown is open
+			if (isOpen && trimmedValue) {
+				setActiveIndex(-1);
+				// see if the trimmed value matched any option and set that active index
+				const matchedOption = filteredOptions.find(
+					(option) =>
+						option.label.toLowerCase() === trimmedValue.toLowerCase() ||
+						option.value?.toLowerCase() === trimmedValue.toLowerCase(),
+				);
+				if (matchedOption) {
+					setActiveIndex(1);
+				} else {
+					// check if the trimmed value is a regex pattern and set that active index
+					const isRegex =
+						trimmedValue.startsWith('.*') && trimmedValue.endsWith('.*');
+					if (isRegex && enableRegexOption) {
+						setActiveIndex(0);
+					} else {
+						setActiveIndex(enableRegexOption ? 1 : 0);
+					}
+				}
+			}
+
+			if (onSearch) onSearch(trimmedValue);
 		},
-		[onSearch, isOpen, selectedValues, onChange],
+		[
+			onSearch,
+			isOpen,
+			selectedValues,
+			onChange,
+			filteredOptions,
+			enableRegexOption,
+		],
 	);
 
 	// ===== UI & Rendering Functions =====
@@ -528,28 +590,34 @@ const CustomMultiSelect: React.FC<CustomMultiSelectProps> = ({
 		(text: string, searchQuery: string): React.ReactNode => {
 			if (!searchQuery || !highlightSearch) return text;
 
-			const parts = text.split(
-				new RegExp(
-					`(${searchQuery.replace(/[.*+?^${}()|[\\]\\]/g, '\\$&')})`,
-					'gi',
-				),
-			);
-			return (
-				<>
-					{parts.map((part, i) => {
-						// Create a unique key that doesn't rely on array index
-						const uniqueKey = `${text.substring(0, 3)}-${part.substring(0, 3)}-${i}`;
+			try {
+				const parts = text.split(
+					new RegExp(
+						`(${searchQuery.replace(/[-[\]{}()*+?.,\\^$|#\s]/g, '\\$&')})`,
+						'gi',
+					),
+				);
+				return (
+					<>
+						{parts.map((part, i) => {
+							// Create a unique key that doesn't rely on array index
+							const uniqueKey = `${text.substring(0, 3)}-${part.substring(0, 3)}-${i}`;
 
-						return part.toLowerCase() === searchQuery.toLowerCase() ? (
-							<span key={uniqueKey} className="highlight-text">
-								{part}
-							</span>
-						) : (
-							part
-						);
-					})}
-				</>
-			);
+							return part.toLowerCase() === searchQuery.toLowerCase() ? (
+								<span key={uniqueKey} className="highlight-text">
+									{part}
+								</span>
+							) : (
+								part
+							);
+						})}
+					</>
+				);
+			} catch (error) {
+				// If regex fails, return the original text without highlighting
+				console.error('Error in text highlighting:', error);
+				return text;
+			}
 		},
 		[highlightSearch],
 	);
@@ -560,10 +628,10 @@ const CustomMultiSelect: React.FC<CustomMultiSelectProps> = ({
 
 		if (isAllSelected) {
 			// If all are selected, deselect all
-			handleInternalChange([]);
+			handleInternalChange([], true);
 		} else {
 			// Otherwise, select all
-			handleInternalChange([ALL_SELECTED_VALUE]);
+			handleInternalChange([ALL_SELECTED_VALUE], true);
 		}
 	}, [options, isAllSelected, handleInternalChange]);
 
@@ -738,6 +806,26 @@ const CustomMultiSelect: React.FC<CustomMultiSelectProps> = ({
 	// Enhanced keyboard navigation with support for maxTagCount
 	const handleKeyDown = useCallback(
 		(e: React.KeyboardEvent<HTMLElement>): void => {
+			// Simple early return if ALL is selected - block all possible keyboard interactions
+			// that could remove the ALL tag, but still allow dropdown navigation and search
+			if (
+				(allOptionShown || isAllSelected) &&
+				(e.key === 'Backspace' || e.key === 'Delete')
+			) {
+				// Only prevent default if the input is empty or cursor is at start position
+				const activeElement = document.activeElement as HTMLInputElement;
+				const isInputActive = activeElement?.tagName === 'INPUT';
+				const isInputEmpty = isInputActive && !activeElement?.value;
+				const isCursorAtStart =
+					isInputActive && activeElement?.selectionStart === 0;
+
+				if (isInputEmpty || isCursorAtStart) {
+					e.preventDefault();
+					e.stopPropagation();
+					return;
+				}
+			}
+
 			// Get flattened list of all selectable options
 			const getFlatOptions = (): OptionData[] => {
 				if (!visibleOptions) return [];
@@ -752,13 +840,13 @@ const CustomMultiSelect: React.FC<CustomMultiSelectProps> = ({
 				if (hasAll) {
 					flatList.push({
 						label: 'ALL',
-						value: '__all__', // Special value for the ALL option
+						value: ALL_SELECTED_VALUE, // Special value for the ALL option
 						type: 'defined',
 					});
 				}
 
 				// Add Regex to flat list
-				if (!isEmpty(searchText)) {
+				if (!isEmpty(searchText) && enableRegexOption) {
 					// Only add regex wrapper if it doesn't already look like a regex pattern
 					const isAlreadyRegex =
 						searchText.startsWith('.*') && searchText.endsWith('.*');
@@ -784,6 +872,17 @@ const CustomMultiSelect: React.FC<CustomMultiSelectProps> = ({
 
 			const flatOptions = getFlatOptions();
 
+			// If we just opened the dropdown and have options, set first option as active
+			if (justOpenedRef.current && flatOptions.length > 0) {
+				setActiveIndex(0);
+				justOpenedRef.current = false;
+			}
+
+			// If no option is active but we have options and dropdown is open, activate the first one
+			if (isOpen && activeIndex === -1 && flatOptions.length > 0) {
+				setActiveIndex(0);
+			}
+
 			// Get the active input element to check cursor position
 			const activeElement = document.activeElement as HTMLInputElement;
 			const isInputActive = activeElement?.tagName === 'INPUT';
@@ -1129,7 +1228,7 @@ const CustomMultiSelect: React.FC<CustomMultiSelectProps> = ({
 						// If there's an active option in the dropdown, prioritize selecting it
 						if (activeIndex >= 0 && activeIndex < flatOptions.length) {
 							const selectedOption = flatOptions[activeIndex];
-							if (selectedOption.value === '__all__') {
+							if (selectedOption.value === ALL_SELECTED_VALUE) {
 								handleSelectAll();
 							} else if (selectedOption.value && onChange) {
 								const newValues = selectedValues.includes(selectedOption.value)
@@ -1159,6 +1258,10 @@ const CustomMultiSelect: React.FC<CustomMultiSelectProps> = ({
 						e.preventDefault();
 						setIsOpen(false);
 						setActiveIndex(-1);
+						// Call onDropdownVisibleChange when Escape is pressed to close dropdown
+						if (onDropdownVisibleChange) {
+							onDropdownVisibleChange(false);
+						}
 						break;
 
 					case SPACEKEY:
@@ -1168,7 +1271,7 @@ const CustomMultiSelect: React.FC<CustomMultiSelectProps> = ({
 							const selectedOption = flatOptions[activeIndex];
 
 							// Check if it's the ALL option
-							if (selectedOption.value === '__all__') {
+							if (selectedOption.value === ALL_SELECTED_VALUE) {
 								handleSelectAll();
 							} else if (selectedOption.value && onChange) {
 								const newValues = selectedValues.includes(selectedOption.value)
@@ -1214,7 +1317,7 @@ const CustomMultiSelect: React.FC<CustomMultiSelectProps> = ({
 						e.stopPropagation();
 						e.preventDefault();
 						setIsOpen(true);
-						setActiveIndex(0);
+						justOpenedRef.current = true; // Set flag to initialize active option on next render
 						setActiveChipIndex(-1);
 						break;
 
@@ -1260,9 +1363,14 @@ const CustomMultiSelect: React.FC<CustomMultiSelectProps> = ({
 			}
 		},
 		[
+			allOptionShown,
+			isAllSelected,
+			isOpen,
+			activeIndex,
+			getVisibleChipIndices,
+			getLastVisibleChipIndex,
 			selectedChips,
 			isSelectionMode,
-			isOpen,
 			activeChipIndex,
 			selectedValues,
 			visibleOptions,
@@ -1278,10 +1386,9 @@ const CustomMultiSelect: React.FC<CustomMultiSelectProps> = ({
 			startSelection,
 			selectionEnd,
 			extendSelection,
-			activeIndex,
+			onDropdownVisibleChange,
 			handleSelectAll,
-			getVisibleChipIndices,
-			getLastVisibleChipIndex,
+			enableRegexOption,
 		],
 	);
 
@@ -1306,6 +1413,14 @@ const CustomMultiSelect: React.FC<CustomMultiSelectProps> = ({
 		setIsOpen(false);
 	}, []);
 
+	// Add a scroll handler for the dropdown
+	const handleDropdownScroll = useCallback(
+		(e: React.UIEvent<HTMLDivElement>): void => {
+			setIsScrolledToBottom(handleScrollToBottom(e));
+		},
+		[],
+	);
+
 	// Custom dropdown render with sections support
 	const customDropdownRender = useCallback((): React.ReactElement => {
 		// Process options based on current search
@@ -1324,7 +1439,7 @@ const CustomMultiSelect: React.FC<CustomMultiSelectProps> = ({
 		const customOptions: OptionData[] = [];
 
 		// add regex options first since they appear first in the UI
-		if (!isEmpty(searchText)) {
+		if (!isEmpty(searchText) && enableRegexOption) {
 			// Only add regex wrapper if it doesn't already look like a regex pattern
 			const isAlreadyRegex =
 				searchText.startsWith('.*') && searchText.endsWith('.*');
@@ -1347,8 +1462,17 @@ const CustomMultiSelect: React.FC<CustomMultiSelectProps> = ({
 			});
 		}
 
-		// Now add all custom options at the beginning
-		const enhancedNonSectionOptions = [...customOptions, ...nonSectionOptions];
+		// Now add all custom options at the beginning, removing duplicates based on value
+		const allOptions = [...customOptions, ...nonSectionOptions];
+		const seenValues = new Set<string>();
+		const enhancedNonSectionOptions = allOptions.filter((option) => {
+			const value = option.value || '';
+			if (seenValues.has(value)) {
+				return false;
+			}
+			seenValues.add(value);
+			return true;
+		});
 
 		const allOptionValues = getAllAvailableValues(processedOptions);
 		const allOptionsSelected =
@@ -1382,6 +1506,7 @@ const CustomMultiSelect: React.FC<CustomMultiSelectProps> = ({
 				onMouseDown={handleDropdownMouseDown}
 				onClick={handleDropdownClick}
 				onKeyDown={handleKeyDown}
+				onScroll={handleDropdownScroll}
 				onBlur={handleBlur}
 				role="listbox"
 				aria-multiselectable="true"
@@ -1439,7 +1564,19 @@ const CustomMultiSelect: React.FC<CustomMultiSelectProps> = ({
 				{/* Non-section options when not searching */}
 				{enhancedNonSectionOptions.length > 0 && (
 					<div className="no-section-options">
-						{mapOptions(enhancedNonSectionOptions)}
+						<Virtuoso
+							style={{
+								minHeight: Math.min(300, enhancedNonSectionOptions.length * 40),
+								maxHeight: enhancedNonSectionOptions.length * 40,
+							}}
+							data={enhancedNonSectionOptions}
+							itemContent={(index, item): React.ReactNode =>
+								(mapOptions([item]) as unknown) as React.ReactElement
+							}
+							totalCount={enhancedNonSectionOptions.length}
+							itemSize={(): number => 40}
+							overscan={5}
+						/>
 					</div>
 				)}
 
@@ -1452,23 +1589,40 @@ const CustomMultiSelect: React.FC<CustomMultiSelectProps> = ({
 									{section.label}
 								</div>
 								<div role="group" aria-label={`${section.label} options`}>
-									{section.options && mapOptions(section.options)}
+									<Virtuoso
+										style={{
+											minHeight: Math.min(300, (section.options?.length || 0) * 40),
+											maxHeight: (section.options?.length || 0) * 40,
+										}}
+										data={section.options || []}
+										itemContent={(index, item): React.ReactNode =>
+											(mapOptions([item]) as unknown) as React.ReactElement
+										}
+										totalCount={section.options?.length || 0}
+										itemSize={(): number => 40}
+										overscan={5}
+									/>
 								</div>
 							</div>
-						) : null,
+						) : (
+							<div key={section.label} />
+						),
 					)}
 
 				{/* Navigation help footer */}
 				<div className="navigation-footer" role="note">
-					{!loading && !errorMessage && !noDataMessage && (
-						<section className="navigate">
-							<ArrowDown size={8} className="icons" />
-							<ArrowUp size={8} className="icons" />
-							<ArrowLeft size={8} className="icons" />
-							<ArrowRight size={8} className="icons" />
-							<span className="keyboard-text">to navigate</span>
-						</section>
-					)}
+					{!loading &&
+						!errorMessage &&
+						!noDataMessage &&
+						!(showIncompleteDataMessage && isScrolledToBottom) && (
+							<section className="navigate">
+								<ArrowDown size={8} className="icons" />
+								<ArrowUp size={8} className="icons" />
+								<ArrowLeft size={8} className="icons" />
+								<ArrowRight size={8} className="icons" />
+								<span className="keyboard-text">to navigate</span>
+							</section>
+						)}
 					{loading && (
 						<div className="navigation-loading">
 							<div className="navigation-icons">
@@ -1482,21 +1636,33 @@ const CustomMultiSelect: React.FC<CustomMultiSelectProps> = ({
 							<div className="navigation-text">
 								{errorMessage || SOMETHING_WENT_WRONG}
 							</div>
-							<div className="navigation-icons">
-								<ReloadOutlined
-									twoToneColor={Color.BG_CHERRY_400}
-									onClick={(e): void => {
-										e.stopPropagation();
-										if (onRetry) onRetry();
-									}}
-								/>
-							</div>
+							{onRetry && (
+								<div className="navigation-icons">
+									<ReloadOutlined
+										twoToneColor={Color.BG_CHERRY_400}
+										onClick={(e): void => {
+											e.stopPropagation();
+											onRetry();
+										}}
+									/>
+								</div>
+							)}
 						</div>
 					)}
 
-					{noDataMessage && !loading && (
-						<div className="navigation-text">{noDataMessage}</div>
-					)}
+					{showIncompleteDataMessage &&
+						isScrolledToBottom &&
+						!loading &&
+						!errorMessage && (
+							<div className="navigation-text-incomplete">
+								Use search for more options
+							</div>
+						)}
+
+					{noDataMessage &&
+						!loading &&
+						!(showIncompleteDataMessage && isScrolledToBottom) &&
+						!errorMessage && <div className="navigation-text">{noDataMessage}</div>}
 				</div>
 			</div>
 		);
@@ -1513,6 +1679,7 @@ const CustomMultiSelect: React.FC<CustomMultiSelectProps> = ({
 		handleDropdownMouseDown,
 		handleDropdownClick,
 		handleKeyDown,
+		handleDropdownScroll,
 		handleBlur,
 		activeIndex,
 		loading,
@@ -1522,8 +1689,32 @@ const CustomMultiSelect: React.FC<CustomMultiSelectProps> = ({
 		renderOptionWithIndex,
 		handleSelectAll,
 		onRetry,
+		showIncompleteDataMessage,
+		isScrolledToBottom,
+		enableRegexOption,
 	]);
 
+	// Custom handler for dropdown visibility changes
+	const handleDropdownVisibleChange = useCallback(
+		(visible: boolean): void => {
+			setIsOpen(visible);
+			if (visible) {
+				justOpenedRef.current = true;
+				setActiveIndex(0);
+				setActiveChipIndex(-1);
+			} else {
+				setSearchText('');
+				setActiveIndex(-1);
+				// Don't clear activeChipIndex when dropdown closes to maintain tag focus
+			}
+			// Pass through to the parent component's handler if provided
+			if (onDropdownVisibleChange) {
+				onDropdownVisibleChange(visible);
+			}
+		},
+		[onDropdownVisibleChange],
+	);
+
 	// ===== Side Effects =====
 
 	// Clear search when dropdown closes
@@ -1585,55 +1776,16 @@ const CustomMultiSelect: React.FC<CustomMultiSelectProps> = ({
 	// Custom Tag Render (needs significant updates)
 	const tagRender = useCallback(
 		(props: CustomTagProps): React.ReactElement => {
-			const { label, value, closable, onClose } = props;
+			const { label: labelProp, value, closable, onClose } = props;
+
+			const label = showLabels
+				? options.find((option) => option.value === value)?.label || labelProp
+				: labelProp;
 
 			// If the display value is the special ALL value, render the ALL tag
-			if (value === ALL_SELECTED_VALUE && isAllSelected) {
-				const handleAllTagClose = (
-					e: React.MouseEvent | React.KeyboardEvent,
-				): void => {
-					e.stopPropagation();
-					e.preventDefault();
-					handleInternalChange([]); // Clear selection when ALL tag is closed
-				};
-
-				const handleAllTagKeyDown = (e: React.KeyboardEvent): void => {
-					if (e.key === 'Enter' || e.key === SPACEKEY) {
-						handleAllTagClose(e);
-					}
-					// Prevent Backspace/Delete propagation if needed, handle in main keydown handler
-				};
-
-				return (
-					<div
-						className={cx('ant-select-selection-item', {
-							'ant-select-selection-item-active': activeChipIndex === 0, // Treat ALL tag as index 0 when active
-							'ant-select-selection-item-selected': selectedChips.includes(0),
-						})}
-						style={
-							activeChipIndex === 0 || selectedChips.includes(0)
-								? {
-										borderColor: Color.BG_ROBIN_500,
-										backgroundColor: Color.BG_SLATE_400,
-								  }
-								: undefined
-						}
-					>
-						<span className="ant-select-selection-item-content">ALL</span>
-						{closable && (
-							<span
-								className="ant-select-selection-item-remove"
-								onClick={handleAllTagClose}
-								onKeyDown={handleAllTagKeyDown}
-								role="button"
-								tabIndex={0}
-								aria-label="Remove ALL tag (deselect all)"
-							>
-								×
-							</span>
-						)}
-					</div>
-				);
+			if (allOptionShown) {
+				// Don't render a visible tag - will be shown as placeholder
+				return <div style={{ display: 'none' }} />;
 			}
 
 			// If not isAllSelected, render individual tags using previous logic
@@ -1713,52 +1865,69 @@ const CustomMultiSelect: React.FC<CustomMultiSelectProps> = ({
 			// Fallback for safety, should not be reached
 			return <div />;
 		},
-		[
-			isAllSelected,
-			handleInternalChange,
-			activeChipIndex,
-			selectedChips,
-			selectedValues,
-			maxTagCount,
-		],
+		// eslint-disable-next-line react-hooks/exhaustive-deps
+		[isAllSelected, activeChipIndex, selectedChips, selectedValues, maxTagCount],
 	);
 
+	// Simple onClear handler to prevent clearing ALL
+	const onClearHandler = useCallback((): void => {
+		// Skip clearing if ALL is selected
+		if (allOptionShown || isAllSelected) {
+			return;
+		}
+
+		// Normal clear behavior
+		handleInternalChange([], true);
+		if (onClear) onClear();
+	}, [onClear, handleInternalChange, allOptionShown, isAllSelected]);
+
 	// ===== Component Rendering =====
 	return (
-		<Select
-			ref={selectRef}
-			className={cx('custom-multiselect', className, {
-				'has-selection': selectedChips.length > 0 && !isAllSelected,
-				'is-all-selected': isAllSelected,
+		<div
+			className={cx('custom-multiselect-wrapper', {
+				'all-selected': allOptionShown || isAllSelected,
 			})}
-			placeholder={placeholder}
-			mode="multiple"
-			showSearch
-			filterOption={false}
-			onSearch={handleSearch}
-			value={displayValue}
-			onChange={handleInternalChange}
-			onClear={(): void => handleInternalChange([])}
-			onDropdownVisibleChange={setIsOpen}
-			open={isOpen}
-			defaultActiveFirstOption={defaultActiveFirstOption}
-			popupMatchSelectWidth={dropdownMatchSelectWidth}
-			allowClear={allowClear}
-			getPopupContainer={getPopupContainer ?? popupContainer}
-			suffixIcon={<DownOutlined style={{ cursor: 'default' }} />}
-			dropdownRender={customDropdownRender}
-			menuItemSelectedIcon={null}
-			popupClassName={cx('custom-multiselect-dropdown-container', popupClassName)}
-			notFoundContent={<div className="empty-message">{noDataMessage}</div>}
-			onKeyDown={handleKeyDown}
-			tagRender={tagRender as any}
-			placement={placement}
-			listHeight={300}
-			searchValue={searchText}
-			maxTagTextLength={maxTagTextLength}
-			maxTagCount={isAllSelected ? 1 : maxTagCount}
-			{...rest}
-		/>
+		>
+			{(allOptionShown || isAllSelected) && !searchText && (
+				<div className="all-text">ALL</div>
+			)}
+			<Select
+				ref={selectRef}
+				className={cx('custom-multiselect', className, {
+					'has-selection': selectedChips.length > 0 && !isAllSelected,
+					'is-all-selected': isAllSelected,
+				})}
+				placeholder={placeholder}
+				mode="multiple"
+				showSearch
+				filterOption={false}
+				onSearch={handleSearch}
+				value={displayValue}
+				onChange={(newValue): void => {
+					handleInternalChange(newValue, false);
+				}}
+				onClear={onClearHandler}
+				onDropdownVisibleChange={handleDropdownVisibleChange}
+				open={isOpen}
+				defaultActiveFirstOption={defaultActiveFirstOption}
+				popupMatchSelectWidth={dropdownMatchSelectWidth}
+				allowClear={allowClear}
+				getPopupContainer={getPopupContainer ?? popupContainer}
+				suffixIcon={<DownOutlined style={{ cursor: 'default' }} />}
+				dropdownRender={customDropdownRender}
+				menuItemSelectedIcon={null}
+				popupClassName={cx('custom-multiselect-dropdown-container', popupClassName)}
+				notFoundContent={<div className="empty-message">{noDataMessage}</div>}
+				onKeyDown={handleKeyDown}
+				tagRender={tagRender as any}
+				placement={placement}
+				listHeight={300}
+				searchValue={searchText}
+				maxTagTextLength={maxTagTextLength}
+				maxTagCount={isAllSelected ? undefined : maxTagCount}
+				{...rest}
+			/>
+		</div>
 	);
 };
 

frontend/src/components/NewSelect/CustomSelect.tsx

@@ -29,6 +29,7 @@ import { popupContainer } from 'utils/selectPopupContainer';
 import { CustomSelectProps, OptionData } from './types';
 import {
 	filterOptionsBySearch,
+	handleScrollToBottom,
 	prioritizeOrAddOptionForSingleSelect,
 	SPACEKEY,
 } from './utils';
@@ -57,17 +58,29 @@ const CustomSelect: React.FC<CustomSelectProps> = ({
 	errorMessage,
 	allowClear = false,
 	onRetry,
+	showIncompleteDataMessage = false,
 	...rest
 }) => {
 	// ===== State & Refs =====
 	const [isOpen, setIsOpen] = useState(false);
 	const [searchText, setSearchText] = useState('');
 	const [activeOptionIndex, setActiveOptionIndex] = useState<number>(-1);
+	const [isScrolledToBottom, setIsScrolledToBottom] = useState(false);
 
 	// Refs for element access and scroll behavior
 	const selectRef = useRef<BaseSelectRef>(null);
 	const dropdownRef = useRef<HTMLDivElement>(null);
 	const optionRefs = useRef<Record<number, HTMLDivElement | null>>({});
+	// Flag to track if dropdown just opened
+	const justOpenedRef = useRef<boolean>(false);
+
+	// Add a scroll handler for the dropdown
+	const handleDropdownScroll = useCallback(
+		(e: React.UIEvent<HTMLDivElement>): void => {
+			setIsScrolledToBottom(handleScrollToBottom(e));
+		},
+		[],
+	);
 
 	// ===== Option Filtering & Processing Utilities =====
 
@@ -130,23 +143,33 @@ const CustomSelect: React.FC<CustomSelectProps> = ({
 		(text: string, searchQuery: string): React.ReactNode => {
 			if (!searchQuery || !highlightSearch) return text;
 
-			const parts = text.split(new RegExp(`(${searchQuery})`, 'gi'));
-			return (
-				<>
-					{parts.map((part, i) => {
-						// Create a deterministic but unique key
-						const uniqueKey = `${text.substring(0, 3)}-${part.substring(0, 3)}-${i}`;
+			try {
+				const parts = text.split(
+					new RegExp(
+						`(${searchQuery.replace(/[-[\]{}()*+?.,\\^$|#\s]/g, '\\$&')})`,
+						'gi',
+					),
+				);
+				return (
+					<>
+						{parts.map((part, i) => {
+							// Create a deterministic but unique key
+							const uniqueKey = `${text.substring(0, 3)}-${part.substring(0, 3)}-${i}`;
 
-						return part.toLowerCase() === searchQuery.toLowerCase() ? (
-							<span key={uniqueKey} className="highlight-text">
-								{part}
-							</span>
-						) : (
-							part
-						);
-					})}
-				</>
-			);
+							return part.toLowerCase() === searchQuery.toLowerCase() ? (
+								<span key={uniqueKey} className="highlight-text">
+									{part}
+								</span>
+							) : (
+								part
+							);
+						})}
+					</>
+				);
+			} catch (error) {
+				console.error('Error in text highlighting:', error);
+				return text;
+			}
 		},
 		[highlightSearch],
 	);
@@ -246,9 +269,14 @@ const CustomSelect: React.FC<CustomSelectProps> = ({
 			const trimmedValue = value.trim();
 			setSearchText(trimmedValue);
 
+			// Reset active option index when search changes
+			if (isOpen) {
+				setActiveOptionIndex(0);
+			}
+
 			if (onSearch) onSearch(trimmedValue);
 		},
-		[onSearch],
+		[onSearch, isOpen],
 	);
 
 	/**
@@ -272,14 +300,23 @@ const CustomSelect: React.FC<CustomSelectProps> = ({
 					const flatList: OptionData[] = [];
 
 					// Process options
+					let processedOptions = isEmpty(value)
+						? filteredOptions
+						: prioritizeOrAddOptionForSingleSelect(filteredOptions, value);
+
+					if (!isEmpty(searchText)) {
+						processedOptions = filterOptionsBySearch(processedOptions, searchText);
+					}
+
 					const { sectionOptions, nonSectionOptions } = splitOptions(
-						isEmpty(value)
-							? filteredOptions
-							: prioritizeOrAddOptionForSingleSelect(filteredOptions, value),
+						processedOptions,
 					);
 
 					// Add custom option if needed
-					if (!isEmpty(searchText) && !isLabelPresent(filteredOptions, searchText)) {
+					if (
+						!isEmpty(searchText) &&
+						!isLabelPresent(processedOptions, searchText)
+					) {
 						flatList.push({
 							label: searchText,
 							value: searchText,
@@ -300,33 +337,52 @@ const CustomSelect: React.FC<CustomSelectProps> = ({
 
 				const options = getFlatOptions();
 
+				// If we just opened the dropdown and have options, set first option as active
+				if (justOpenedRef.current && options.length > 0) {
+					setActiveOptionIndex(0);
+					justOpenedRef.current = false;
+				}
+
+				// If no option is active but we have options, activate the first one
+				if (activeOptionIndex === -1 && options.length > 0) {
+					setActiveOptionIndex(0);
+				}
+
 				switch (e.key) {
 					case 'ArrowDown':
 						e.preventDefault();
-						setActiveOptionIndex((prev) =>
-							prev < options.length - 1 ? prev + 1 : 0,
-						);
+						if (options.length > 0) {
+							setActiveOptionIndex((prev) =>
+								prev < options.length - 1 ? prev + 1 : 0,
+							);
+						}
 						break;
 
 					case 'ArrowUp':
 						e.preventDefault();
-						setActiveOptionIndex((prev) =>
-							prev > 0 ? prev - 1 : options.length - 1,
-						);
+						if (options.length > 0) {
+							setActiveOptionIndex((prev) =>
+								prev > 0 ? prev - 1 : options.length - 1,
+							);
+						}
 						break;
 
 					case 'Tab':
 						// Tab navigation with Shift key support
 						if (e.shiftKey) {
 							e.preventDefault();
-							setActiveOptionIndex((prev) =>
-								prev > 0 ? prev - 1 : options.length - 1,
-							);
+							if (options.length > 0) {
+								setActiveOptionIndex((prev) =>
+									prev > 0 ? prev - 1 : options.length - 1,
+								);
+							}
 						} else {
 							e.preventDefault();
-							setActiveOptionIndex((prev) =>
-								prev < options.length - 1 ? prev + 1 : 0,
-							);
+							if (options.length > 0) {
+								setActiveOptionIndex((prev) =>
+									prev < options.length - 1 ? prev + 1 : 0,
+								);
+							}
 						}
 						break;
 
@@ -339,6 +395,7 @@ const CustomSelect: React.FC<CustomSelectProps> = ({
 								onChange(selectedOption.value, selectedOption);
 								setIsOpen(false);
 								setActiveOptionIndex(-1);
+								setSearchText('');
 							}
 						} else if (!isEmpty(searchText)) {
 							// Add custom value when no option is focused
@@ -351,6 +408,7 @@ const CustomSelect: React.FC<CustomSelectProps> = ({
 								onChange(customOption.value, customOption);
 								setIsOpen(false);
 								setActiveOptionIndex(-1);
+								setSearchText('');
 							}
 						}
 						break;
@@ -359,6 +417,7 @@ const CustomSelect: React.FC<CustomSelectProps> = ({
 						e.preventDefault();
 						setIsOpen(false);
 						setActiveOptionIndex(-1);
+						setSearchText('');
 						break;
 
 					case ' ': // Space key
@@ -369,6 +428,7 @@ const CustomSelect: React.FC<CustomSelectProps> = ({
 								onChange(selectedOption.value, selectedOption);
 								setIsOpen(false);
 								setActiveOptionIndex(-1);
+								setSearchText('');
 							}
 						}
 						break;
@@ -379,7 +439,7 @@ const CustomSelect: React.FC<CustomSelectProps> = ({
 				// Open dropdown when Down or Tab is pressed while closed
 				e.preventDefault();
 				setIsOpen(true);
-				setActiveOptionIndex(0);
+				justOpenedRef.current = true; // Set flag to initialize active option on next render
 			}
 		},
 		[
@@ -444,6 +504,7 @@ const CustomSelect: React.FC<CustomSelectProps> = ({
 				className="custom-select-dropdown"
 				onClick={handleDropdownClick}
 				onKeyDown={handleKeyDown}
+				onScroll={handleDropdownScroll}
 				role="listbox"
 				tabIndex={-1}
 				aria-activedescendant={
@@ -454,7 +515,6 @@ const CustomSelect: React.FC<CustomSelectProps> = ({
 				<div className="no-section-options">
 					{nonSectionOptions.length > 0 && mapOptions(nonSectionOptions)}
 				</div>
-
 				{/* Section options */}
 				{sectionOptions.length > 0 &&
 					sectionOptions.map((section) =>
@@ -472,13 +532,16 @@ const CustomSelect: React.FC<CustomSelectProps> = ({
 
 				{/* Navigation help footer */}
 				<div className="navigation-footer" role="note">
-					{!loading && !errorMessage && !noDataMessage && (
-						<section className="navigate">
-							<ArrowDown size={8} className="icons" />
-							<ArrowUp size={8} className="icons" />
-							<span className="keyboard-text">to navigate</span>
-						</section>
-					)}
+					{!loading &&
+						!errorMessage &&
+						!noDataMessage &&
+						!(showIncompleteDataMessage && isScrolledToBottom) && (
+							<section className="navigate">
+								<ArrowDown size={8} className="icons" />
+								<ArrowUp size={8} className="icons" />
+								<span className="keyboard-text">to navigate</span>
+							</section>
+						)}
 					{loading && (
 						<div className="navigation-loading">
 							<div className="navigation-icons">
@@ -492,21 +555,33 @@ const CustomSelect: React.FC<CustomSelectProps> = ({
 							<div className="navigation-text">
 								{errorMessage || SOMETHING_WENT_WRONG}
 							</div>
-							<div className="navigation-icons">
-								<ReloadOutlined
-									twoToneColor={Color.BG_CHERRY_400}
-									onClick={(e): void => {
-										e.stopPropagation();
-										if (onRetry) onRetry();
-									}}
-								/>
-							</div>
+							{onRetry && (
+								<div className="navigation-icons">
+									<ReloadOutlined
+										twoToneColor={Color.BG_CHERRY_400}
+										onClick={(e): void => {
+											e.stopPropagation();
+											onRetry();
+										}}
+									/>
+								</div>
+							)}
 						</div>
 					)}
 
-					{noDataMessage && !loading && (
-						<div className="navigation-text">{noDataMessage}</div>
-					)}
+					{showIncompleteDataMessage &&
+						isScrolledToBottom &&
+						!loading &&
+						!errorMessage && (
+							<div className="navigation-text-incomplete">
+								Use search for more options
+							</div>
+						)}
+
+					{noDataMessage &&
+						!loading &&
+						!(showIncompleteDataMessage && isScrolledToBottom) &&
+						!errorMessage && <div className="navigation-text">{noDataMessage}</div>}
 				</div>
 			</div>
 		);
@@ -520,6 +595,7 @@ const CustomSelect: React.FC<CustomSelectProps> = ({
 		isLabelPresent,
 		handleDropdownClick,
 		handleKeyDown,
+		handleDropdownScroll,
 		activeOptionIndex,
 		loading,
 		errorMessage,
@@ -527,8 +603,22 @@ const CustomSelect: React.FC<CustomSelectProps> = ({
 		dropdownRender,
 		renderOptionWithIndex,
 		onRetry,
+		showIncompleteDataMessage,
+		isScrolledToBottom,
 	]);
 
+	// Handle dropdown visibility changes
+	const handleDropdownVisibleChange = useCallback((visible: boolean): void => {
+		setIsOpen(visible);
+		if (visible) {
+			justOpenedRef.current = true;
+			setActiveOptionIndex(0);
+		} else {
+			setSearchText('');
+			setActiveOptionIndex(-1);
+		}
+	}, []);
+
 	// ===== Side Effects =====
 
 	// Clear search text when dropdown closes
@@ -582,7 +672,7 @@ const CustomSelect: React.FC<CustomSelectProps> = ({
 			onSearch={handleSearch}
 			value={value}
 			onChange={onChange}
-			onDropdownVisibleChange={setIsOpen}
+			onDropdownVisibleChange={handleDropdownVisibleChange}
 			open={isOpen}
 			options={optionsWithHighlight}
 			defaultActiveFirstOption={defaultActiveFirstOption}

frontend/src/components/NewSelect/styles.scss

@@ -35,12 +35,50 @@ $custom-border-color: #2c3044;
 	width: 100%;
 	position: relative;
 
+	&.is-all-selected {
+		.ant-select-selection-search-input {
+			caret-color: transparent;
+		}
+
+		.ant-select-selection-placeholder {
+			opacity: 1 !important;
+			color: var(--bg-vanilla-400) !important;
+			font-weight: 500;
+			visibility: visible !important;
+			pointer-events: none;
+			z-index: 2;
+
+			.lightMode & {
+				color: rgba(0, 0, 0, 0.85) !important;
+			}
+		}
+
+		&.ant-select-focused .ant-select-selection-placeholder {
+			opacity: 0.45 !important;
+		}
+	}
+
+	.all-selected-text {
+		position: absolute;
+		left: 12px;
+		top: 50%;
+		transform: translateY(-50%);
+		color: var(--bg-vanilla-400);
+		z-index: 1;
+		pointer-events: none;
+
+		.lightMode & {
+			color: rgba(0, 0, 0, 0.85);
+		}
+	}
+
 	.ant-select-selector {
 		max-height: 200px;
 		overflow: auto;
 		scrollbar-width: thin;
 		background-color: var(--bg-ink-400);
 		border-color: var(--bg-slate-400);
+		cursor: text;
 
 		&::-webkit-scrollbar {
 			width: 6px;
@@ -56,6 +94,16 @@ $custom-border-color: #2c3044;
 		}
 	}
 
+	// Ensure adequate space for input area
+	.ant-select-selection-search {
+		min-width: 60px !important;
+		flex: 1 1 auto;
+		.ant-select-selection-search-input {
+			min-width: 60px !important;
+			cursor: text;
+		}
+	}
+
 	&.ant-select-focused {
 		.ant-select-selector {
 			border-color: var(--bg-robin-500);
@@ -158,7 +206,7 @@ $custom-border-color: #2c3044;
 // Custom dropdown styles for single select
 .custom-select-dropdown {
 	padding: 8px 0 0 0;
-	max-height: 500px;
+	max-height: 300px;
 	overflow-y: auto;
 	overflow-x: hidden;
 	scrollbar-width: thin;
@@ -276,6 +324,10 @@ $custom-border-color: #2c3044;
 		font-size: 12px;
 	}
 
+	.navigation-text-incomplete {
+		color: var(--bg-amber-600) !important;
+	}
+
 	.navigation-error {
 		.navigation-text,
 		.navigation-icons {
@@ -322,7 +374,7 @@ $custom-border-color: #2c3044;
 // Custom dropdown styles for multi-select
 .custom-multiselect-dropdown {
 	padding: 8px 0 0 0;
-	max-height: 500px;
+	max-height: 350px;
 	overflow-y: auto;
 	overflow-x: hidden;
 	scrollbar-width: thin;
@@ -355,6 +407,7 @@ $custom-border-color: #2c3044;
 	.select-group {
 		margin-bottom: 12px;
 		overflow: hidden;
+		margin-top: 4px;
 
 		.group-label {
 			font-weight: 500;
@@ -637,6 +690,7 @@ $custom-border-color: #2c3044;
 		.ant-select-selector {
 			background-color: var(--bg-vanilla-100);
 			border-color: #e9e9e9;
+			cursor: text; // Make entire selector clickable for input focus
 
 			&::-webkit-scrollbar-thumb {
 				background-color: #ccc;
@@ -647,6 +701,20 @@ $custom-border-color: #2c3044;
 			}
 		}
 
+		.ant-select-selection-search {
+			min-width: 60px !important;
+			flex: 1 1 auto;
+
+			.ant-select-selection-search-input {
+				min-width: 60px !important;
+				cursor: text;
+			}
+		}
+
+		.ant-select-selector {
+			cursor: text;
+		}
+
 		.ant-select-selection-placeholder {
 			color: rgba(0, 0, 0, 0.45);
 		}
@@ -656,6 +724,10 @@ $custom-border-color: #2c3044;
 			border: 1px solid #e8e8e8;
 			color: rgba(0, 0, 0, 0.85);
 
+			font-size: 12px !important;
+			height: 20px;
+			line-height: 18px;
+
 			.ant-select-selection-item-content {
 				color: rgba(0, 0, 0, 0.85);
 			}
@@ -836,3 +908,38 @@ $custom-border-color: #2c3044;
 		}
 	}
 }
+
+.custom-multiselect-wrapper {
+	position: relative;
+	width: 100%;
+
+	&.all-selected {
+		.all-text {
+			position: absolute;
+			left: 12px;
+			top: 50%;
+			transform: translateY(-50%);
+			color: var(--bg-vanilla-400);
+			font-weight: 500;
+			z-index: 2;
+			pointer-events: none;
+			transition: opacity 0.2s ease, visibility 0.2s ease;
+
+			.lightMode & {
+				color: rgba(0, 0, 0, 0.85);
+			}
+		}
+
+		&:focus-within .all-text {
+			opacity: 0.45;
+		}
+
+		.ant-select-selection-search-input {
+			caret-color: auto;
+		}
+
+		.ant-select-selection-placeholder {
+			display: none;
+		}
+	}
+}

frontend/src/components/NewSelect/types.ts

@@ -24,9 +24,10 @@ export interface CustomSelectProps extends Omit<SelectProps, 'options'> {
 	highlightSearch?: boolean;
 	placement?: 'topLeft' | 'topRight' | 'bottomLeft' | 'bottomRight';
 	popupMatchSelectWidth?: boolean;
-	errorMessage?: string;
+	errorMessage?: string | null;
 	allowClear?: SelectProps['allowClear'];
 	onRetry?: () => void;
+	showIncompleteDataMessage?: boolean;
 }
 
 export interface CustomTagProps {
@@ -51,10 +52,14 @@ export interface CustomMultiSelectProps
 	getPopupContainer?: (triggerNode: HTMLElement) => HTMLElement;
 	dropdownRender?: (menu: React.ReactElement) => React.ReactElement;
 	highlightSearch?: boolean;
-	errorMessage?: string;
+	errorMessage?: string | null;
 	popupClassName?: string;
 	placement?: 'topLeft' | 'topRight' | 'bottomLeft' | 'bottomRight';
 	maxTagCount?: number;
 	allowClear?: SelectProps['allowClear'];
 	onRetry?: () => void;
+	maxTagTextLength?: number;
+	showIncompleteDataMessage?: boolean;
+	showLabels?: boolean;
+	enableRegexOption?: boolean;
 }

frontend/src/components/NewSelect/utils.ts

@@ -1,4 +1,6 @@
 /* eslint-disable sonarjs/cognitive-complexity */
+import { uniqueOptions } from 'container/NewDashboard/DashboardVariablesSelection/util';
+
 import { OptionData } from './types';
 
 export const SPACEKEY = ' ';
@@ -98,8 +100,10 @@ export const prioritizeOrAddOptionForMultiSelect = (
 		label: labels?.[value] ?? value, // Use provided label or default to value
 	}));
 
+	const flatOutSelectedOptions = uniqueOptions([...newOptions, ...foundOptions]);
+
 	// Add found & new options to the top
-	return [...newOptions, ...foundOptions, ...filteredOptions];
+	return [...flatOutSelectedOptions, ...filteredOptions];
 };
 
 /**
@@ -133,3 +137,15 @@ export const filterOptionsBySearch = (
 		})
 		.filter(Boolean) as OptionData[];
 };
+
+/**
+ * Utility function to handle dropdown scroll and detect when scrolled to bottom
+ * Returns true when scrolled to within 20px of the bottom
+ */
+export const handleScrollToBottom = (
+	e: React.UIEvent<HTMLDivElement>,
+): boolean => {
+	const { scrollTop, scrollHeight, clientHeight } = e.currentTarget;
+	// Consider "scrolled to bottom" when within 20px of the bottom or at the bottom
+	return scrollHeight - scrollTop - clientHeight < 20;
+};

frontend/src/components/QueryBuilderV2/QueryV2/QuerySearch/QuerySearch.tsx

@@ -27,6 +27,7 @@ import {
 	QUERY_BUILDER_OPERATORS_BY_KEY_TYPE,
 	queryOperatorSuggestions,
 } from 'constants/antlrQueryConstants';
+import { useGetDynamicVariables } from 'hooks/dashboard/useGetDynamicVariables';
 import { useQueryBuilder } from 'hooks/queryBuilder/useQueryBuilder';
 import { useIsDarkMode } from 'hooks/useDarkMode';
 import useDebounce from 'hooks/useDebounce';
@@ -161,13 +162,7 @@ function QuerySearch({
 
 	const { handleRunQuery } = useQueryBuilder();
 
-	// const {
-	// 	data: queryKeySuggestions,
-	// 	refetch: refetchQueryKeySuggestions,
-	// } = useGetQueryKeySuggestions({
-	// 	signal: dataSource,
-	// 	name: searchText || '',
-	// });
+	const { dynamicVariables } = useGetDynamicVariables();
 
 	// Add back the generateOptions function and useEffect
 	const generateOptions = (keys: {
@@ -982,6 +977,25 @@ function QuerySearch({
 				option.label.toLowerCase().includes(searchText),
 			);
 
+			// Add dynamic variables suggestions for the current key
+			const variableName = dynamicVariables.find(
+				(variable) => variable?.dynamicVariablesAttribute === keyName,
+			)?.name;
+
+			if (variableName) {
+				const variableValue = `$${variableName}`;
+				const variableOption = {
+					label: variableValue,
+					type: 'variable',
+					apply: variableValue,
+				};
+
+				// Add variable suggestion at the beginning if it matches the search text
+				if (variableValue.toLowerCase().includes(searchText.toLowerCase())) {
+					options = [variableOption, ...options];
+				}
+			}
+
 			// Trigger fetch only if needed
 			const shouldFetch =
 				// Fetch only if key is available
@@ -1034,6 +1048,9 @@ function QuerySearch({
 				} else if (option.type === 'array') {
 					// Arrays are already formatted as arrays
 					processedOption.apply = option.label;
+				} else if (option.type === 'variable') {
+					// Variables should be used as-is (they already have the $ prefix)
+					processedOption.apply = option.label;
 				}
 
 				return processedOption;

frontend/src/components/QueryBuilderV2/utils.ts

@@ -38,6 +38,13 @@ const isArrayOperator = (operator: string): boolean => {
 	return arrayOperators.includes(operator);
 };
 
+const isVariable = (value: string | string[] | number | boolean): boolean => {
+	if (Array.isArray(value)) {
+		return value.some((v) => typeof v === 'string' && v.trim().startsWith('$'));
+	}
+	return typeof value === 'string' && value.trim().startsWith('$');
+};
+
 /**
  * Format a value for the expression string
  * @param value - The value to format
@@ -48,6 +55,10 @@ const formatValueForExpression = (
 	value: string[] | string | number | boolean,
 	operator?: string,
 ): string => {
+	if (isVariable(value)) {
+		return String(value);
+	}
+
 	// For IN operators, ensure value is always an array
 	if (isArrayOperator(operator || '')) {
 		const arrayValue = Array.isArray(value) ? value : [value];

frontend/src/container/GridCardLayout/GridCard/index.tsx

@@ -13,7 +13,6 @@ import { isEqual } from 'lodash-es';
 import isEmpty from 'lodash-es/isEmpty';
 import { useDashboard } from 'providers/Dashboard/Dashboard';
 import { memo, useEffect, useMemo, useRef, useState } from 'react';
-import { useQueryClient } from 'react-query';
 import { useDispatch, useSelector } from 'react-redux';
 import { UpdateTimeInterval } from 'store/actions';
 import { AppState } from 'store/reducers';
@@ -53,6 +52,7 @@ function GridCardGraph({
 	customTimeRange,
 	customOnRowClick,
 	customTimeRangeWindowForCoRelation,
+	dynamicVariableToWidgetsMap,
 }: GridCardGraphProps): JSX.Element {
 	const dispatch = useDispatch();
 	const [errorMessage, setErrorMessage] = useState<string>();
@@ -62,14 +62,13 @@ function GridCardGraph({
 	const {
 		toScrollWidgetId,
 		setToScrollWidgetId,
-		variablesToGetUpdated,
 		setDashboardQueryRangeCalled,
+		variablesToGetUpdated,
 	} = useDashboard();
 	const { minTime, maxTime, selectedTime: globalSelectedInterval } = useSelector<
 		AppState,
 		GlobalReducer
 	>((state) => state.globalTime);
-	const queryClient = useQueryClient();
 
 	const handleBackNavigation = (): void => {
 		const searchParams = new URLSearchParams(window.location.search);
@@ -120,11 +119,7 @@ function GridCardGraph({
 	const isEmptyWidget =
 		widget?.id === PANEL_TYPES.EMPTY_WIDGET || isEmpty(widget);
 
-	const queryEnabledCondition =
-		isVisible &&
-		!isEmptyWidget &&
-		isQueryEnabled &&
-		isEmpty(variablesToGetUpdated);
+	const queryEnabledCondition = isVisible && !isEmptyWidget && isQueryEnabled;
 
 	const [requestData, setRequestData] = useState<GetQueryResultsProps>(() => {
 		if (widget.panelTypes !== PANEL_TYPES.LIST) {
@@ -163,22 +158,24 @@ function GridCardGraph({
 		};
 	});
 
-	useEffect(() => {
-		if (variablesToGetUpdated.length > 0) {
-			queryClient.cancelQueries([
-				maxTime,
-				minTime,
-				globalSelectedInterval,
-				variables,
-				widget?.query,
-				widget?.panelTypes,
-				widget.timePreferance,
-				widget.fillSpans,
-				requestData,
-			]);
-		}
-		// eslint-disable-next-line react-hooks/exhaustive-deps
-	}, [variablesToGetUpdated]);
+	// TODO [vikrantgupta25] remove this useEffect with refactor as this is prone to race condition
+	// this is added to tackle the case of async communication between VariableItem.tsx and GridCard.tsx
+	// useEffect(() => {
+	// 	if (variablesToGetUpdated.length > 0) {
+	// 		queryClient.cancelQueries([
+	// 			maxTime,
+	// 			minTime,
+	// 			globalSelectedInterval,
+	// 			variables,
+	// 			widget?.query,
+	// 			widget?.panelTypes,
+	// 			widget.timePreferance,
+	// 			widget.fillSpans,
+	// 			requestData,
+	// 		]);
+	// 	}
+	// 	// eslint-disable-next-line react-hooks/exhaustive-deps
+	// }, [variablesToGetUpdated]);
 
 	useEffect(() => {
 		if (!isEqual(updatedQuery, requestData.query)) {
@@ -199,6 +196,27 @@ function GridCardGraph({
 		[requestData.query],
 	);
 
+	// Bring back dependency on variable chaining for panels to refetch,
+	// but only for non-dynamic variables. We derive a stable token from
+	// the head of the variablesToGetUpdated queue when it's non-dynamic.
+	const nonDynamicVariableChainToken = useMemo(() => {
+		if (!variablesToGetUpdated || variablesToGetUpdated.length === 0) {
+			return undefined;
+		}
+		if (!variables) {
+			return undefined;
+		}
+		const headName = variablesToGetUpdated[0];
+		const variableObj = Object.values(variables).find(
+			(variable) => variable?.name === headName,
+		);
+		if (variableObj && variableObj.type !== 'DYNAMIC') {
+			return headName;
+		}
+		return undefined;
+		// eslint-disable-next-line react-hooks/exhaustive-deps
+	}, [variablesToGetUpdated, variables]);
+
 	const queryResponse = useGetQueryRange(
 		{
 			...requestData,
@@ -218,15 +236,29 @@ function GridCardGraph({
 				maxTime,
 				minTime,
 				globalSelectedInterval,
-				variables,
 				widget?.query,
 				widget?.panelTypes,
 				widget.timePreferance,
 				widget.fillSpans,
 				requestData,
+				variables
+					? Object.entries(variables).reduce((acc, [id, variable]) => {
+							if (
+								variable.type !== 'DYNAMIC' ||
+								(dynamicVariableToWidgetsMap?.[variable.id] &&
+									dynamicVariableToWidgetsMap?.[variable.id].includes(widget.id))
+							) {
+								return { ...acc, [id]: variable.selectedValue };
+							}
+							return acc;
+					  }, {})
+					: {},
 				...(customTimeRange && customTimeRange.startTime && customTimeRange.endTime
 					? [customTimeRange.startTime, customTimeRange.endTime]
 					: []),
+				// Include non-dynamic variable chaining token to drive refetches
+				// only when a non-dynamic variable is at the head of the queue
+				...(nonDynamicVariableChainToken ? [nonDynamicVariableChainToken] : []),
 			],
 			retry(failureCount, error): boolean {
 				if (
@@ -239,7 +271,7 @@ function GridCardGraph({
 				return failureCount < 2;
 			},
 			keepPreviousData: true,
-			enabled: queryEnabledCondition,
+			enabled: queryEnabledCondition && !nonDynamicVariableChainToken,
 			refetchOnMount: false,
 			onError: (error) => {
 				const errorMessage =

frontend/src/container/GridCardLayout/GridCard/types.ts

@@ -69,6 +69,7 @@ export interface GridCardGraphProps {
 	};
 	customOnRowClick?: (record: RowData) => void;
 	customTimeRangeWindowForCoRelation?: string | undefined;
+	dynamicVariableToWidgetsMap?: Record<string, string[]>;
 }
 
 export interface GetGraphVisibilityStateOnLegendClickProps {

frontend/src/container/GridCardLayout/GridCardLayout.tsx

@@ -11,7 +11,9 @@ import { QueryParams } from 'constants/query';
 import { PANEL_GROUP_TYPES, PANEL_TYPES } from 'constants/queryBuilder';
 import { themeColors } from 'constants/theme';
 import { DEFAULT_ROW_NAME } from 'container/NewDashboard/DashboardDescription/utils';
+import { useGetDynamicVariables } from 'hooks/dashboard/useGetDynamicVariables';
 import { useUpdateDashboard } from 'hooks/dashboard/useUpdateDashboard';
+import { createDynamicVariableToWidgetsMap } from 'hooks/dashboard/utils';
 import useComponentPermission from 'hooks/useComponentPermission';
 import { useIsDarkMode } from 'hooks/useDarkMode';
 import { useSafeNavigate } from 'hooks/useSafeNavigate';
@@ -83,6 +85,17 @@ function GraphLayout(props: GraphLayoutProps): JSX.Element {
 
 	const isDarkMode = useIsDarkMode();
 
+	// Add dynamic variables mapping at parent level
+	const { dynamicVariables } = useGetDynamicVariables();
+	const dynamicVariableToWidgetsMap = useMemo(
+		() =>
+			createDynamicVariableToWidgetsMap(
+				dynamicVariables,
+				(widgets as Widgets[]) || [],
+			),
+		[dynamicVariables, widgets],
+	);
+
 	const [dashboardLayout, setDashboardLayout] = useState<Layout[]>([]);
 
 	const [isSettingsModalOpen, setIsSettingsModalOpen] = useState<boolean>(false);
@@ -584,6 +597,7 @@ function GraphLayout(props: GraphLayoutProps): JSX.Element {
 									version={ENTITY_VERSION_V5}
 									onDragSelect={onDragSelect}
 									dataAvailable={checkIfDataExists}
+									dynamicVariableToWidgetsMap={dynamicVariableToWidgetsMap}
 								/>
 							</Card>
 						</CardContainer>

frontend/src/container/GridCardLayout/useResolveQuery.ts

@@ -2,6 +2,7 @@ import { getSubstituteVars } from 'api/dashboard/substitute_vars';
 import { prepareQueryRangePayloadV5 } from 'api/v5/v5';
 import { PANEL_TYPES } from 'constants/queryBuilder';
 import { timePreferenceType } from 'container/NewWidget/RightContainer/timeItems';
+import { useGetDynamicVariables } from 'hooks/dashboard/useGetDynamicVariables';
 import { getDashboardVariables } from 'lib/dashbaordVariables/getDashboardVariables';
 import { mapQueryDataFromApi } from 'lib/newQueryBuilder/queryBuilderMappers/mapQueryDataFromApi';
 import { useCallback } from 'react';
@@ -34,6 +35,8 @@ function useUpdatedQuery(): UseUpdatedQueryResult {
 
 	const queryRangeMutation = useMutation(getSubstituteVars);
 
+	const { dynamicVariables } = useGetDynamicVariables();
+
 	const getUpdatedQuery = useCallback(
 		async ({
 			widgetConfig,
@@ -47,6 +50,7 @@ function useUpdatedQuery(): UseUpdatedQueryResult {
 				globalSelectedInterval,
 				variables: getDashboardVariables(selectedDashboard?.data?.variables),
 				originalGraphType: widgetConfig.panelTypes,
+				dynamicVariables,
 			});
 
 			// Execute query and process results
@@ -55,7 +59,7 @@ function useUpdatedQuery(): UseUpdatedQueryResult {
 			// Map query data from API response
 			return mapQueryDataFromApi(queryResult.data.compositeQuery);
 		},
-		[globalSelectedInterval, queryRangeMutation],
+		[dynamicVariables, globalSelectedInterval, queryRangeMutation],
 	);
 
 	return {

frontend/src/container/InfraMonitoringK8s/EntityDetailsUtils/EntityMetrics/EntityMetrics.tsx

@@ -15,6 +15,7 @@ import {
 	CustomTimeType,
 	Time,
 } from 'container/TopNav/DateTimeSelectionV2/config';
+import { useGetDynamicVariables } from 'hooks/dashboard/useGetDynamicVariables';
 import { useQueryBuilder } from 'hooks/queryBuilder/useQueryBuilder';
 import { useIsDarkMode } from 'hooks/useDarkMode';
 import { useResizeObserver } from 'hooks/useDimensions';
@@ -98,6 +99,8 @@ function EntityMetrics<T>({
 		],
 	);
 
+	const { dynamicVariables } = useGetDynamicVariables();
+
 	const queries = useQueries(
 		queryPayloads.map((payload, index) => ({
 			queryKey: [queryKey, payload, ENTITY_VERSION_V4, category],
@@ -105,7 +108,8 @@ function EntityMetrics<T>({
 				signal,
 			}: QueryFunctionContext): Promise<
 				SuccessResponse<MetricRangePayloadProps>
-			> => GetMetricQueryRange(payload, ENTITY_VERSION_V4, signal),
+			> =>
+				GetMetricQueryRange(payload, ENTITY_VERSION_V4, dynamicVariables, signal),
 			enabled: !!payload && visibilities[index],
 			keepPreviousData: true,
 		})),

frontend/src/container/InfraMonitoringK8s/EntityDetailsUtils/EntityMetrics/__tests__/EntityMetrics.test.tsx

@@ -50,8 +50,10 @@ jest.mock('container/InfraMonitoringK8s/commonUtils', () => ({
 }));
 
 const mockUseQueries = jest.fn();
+const mockUseQuery = jest.fn();
 jest.mock('react-query', () => ({
 	useQueries: (queryConfigs: any[]): any[] => mockUseQueries(queryConfigs),
+	useQuery: (config: any): any => mockUseQuery(config),
 }));
 
 jest.mock('hooks/useDarkMode', () => ({
@@ -302,6 +304,20 @@ describe('EntityMetrics', () => {
 	beforeEach(() => {
 		jest.clearAllMocks();
 		mockUseQueries.mockReturnValue(mockQueries);
+		mockUseQuery.mockReturnValue({
+			data: {
+				data: {
+					data: {
+						variables: {},
+						title: 'Test Dashboard',
+					},
+					id: 'test-dashboard-id',
+				},
+			},
+			isLoading: false,
+			isError: false,
+			refetch: jest.fn(),
+		});
 	});
 
 	it('should render metrics with data', () => {

frontend/src/container/NewDashboard/DashboardSettings/DashboardSettings.styles.scss

@@ -70,6 +70,17 @@
 				gap: 3px;
 				color: red;
 			}
+
+			.apply-to-all-button {
+				width: min-content;
+				height: 22px;
+				border-radius: 2px;
+				display: flex;
+				padding: 0px 6px;
+				align-items: center;
+				gap: 3px;
+				background: var(--bg-slate-400);
+			}
 		}
 	}
 
@@ -112,6 +123,10 @@
 				.edit-variable-button {
 					background: var(--bg-vanilla-300);
 				}
+
+				.apply-to-all-button {
+					background: var(--bg-vanilla-300);
+				}
 			}
 		}
 

frontend/src/container/NewDashboard/DashboardSettings/Variables/VariableItem/DynamicVariable/DynamicVariable.styles.scss

@@ -0,0 +1,42 @@
+.dynamic-variable-container {
+	display: grid;
+	grid-template-columns: 1fr 32px 200px;
+	gap: 32px;
+	align-items: center;
+	width: 100%;
+	margin: 24px 0;
+
+	.ant-select {
+		.ant-select-selector {
+			border-radius: 4px;
+			border: 1px solid var(--bg-slate-400);
+		}
+	}
+
+	.ant-input {
+		border-radius: 4px;
+		border: 1px solid var(--bg-slate-400);
+		max-width: 300px;
+	}
+
+	.dynamic-variable-from-text {
+		font-family: 'Space Mono';
+		font-size: 13px;
+		font-weight: 500;
+		white-space: nowrap;
+	}
+}
+
+.lightMode {
+	.dynamic-variable-container {
+		.ant-select {
+			.ant-select-selector {
+				border: 1px solid var(--bg-vanilla-300);
+			}
+		}
+
+		.ant-input {
+			border: 1px solid var(--bg-vanilla-300);
+		}
+	}
+}

frontend/src/container/NewDashboard/DashboardSettings/Variables/VariableItem/DynamicVariable/DynamicVariable.tsx

@@ -0,0 +1,181 @@
+import './DynamicVariable.styles.scss';
+
+import { Select, Typography } from 'antd';
+import CustomSelect from 'components/NewSelect/CustomSelect';
+import { DEBOUNCE_DELAY } from 'constants/queryBuilderFilterConfig';
+import { useGetFieldKeys } from 'hooks/dynamicVariables/useGetFieldKeys';
+import useDebounce from 'hooks/useDebounce';
+import {
+	Dispatch,
+	SetStateAction,
+	useCallback,
+	useEffect,
+	useMemo,
+	useState,
+} from 'react';
+import { FieldKey } from 'types/api/dynamicVariables/getFieldKeys';
+
+enum AttributeSource {
+	ALL_SOURCES = 'All Sources',
+	LOGS = 'Logs',
+	METRICS = 'Metrics',
+	TRACES = 'Traces',
+}
+
+function DynamicVariable({
+	setDynamicVariablesSelectedValue,
+	dynamicVariablesSelectedValue,
+}: {
+	setDynamicVariablesSelectedValue: Dispatch<
+		SetStateAction<
+			| {
+					name: string;
+					value: string;
+			  }
+			| undefined
+		>
+	>;
+	dynamicVariablesSelectedValue:
+		| {
+				name: string;
+				value: string;
+		  }
+		| undefined;
+}): JSX.Element {
+	const sources = [
+		AttributeSource.ALL_SOURCES,
+		AttributeSource.LOGS,
+		AttributeSource.TRACES,
+		AttributeSource.METRICS,
+	];
+
+	const [attributeSource, setAttributeSource] = useState<AttributeSource>();
+	const [attributes, setAttributes] = useState<Record<string, FieldKey[]>>({});
+	const [selectedAttribute, setSelectedAttribute] = useState<string>();
+	const [apiSearchText, setApiSearchText] = useState<string>('');
+	const [errorMessage, setErrorMessage] = useState<string>();
+	const debouncedApiSearchText = useDebounce(apiSearchText, DEBOUNCE_DELAY);
+
+	const [filteredAttributes, setFilteredAttributes] = useState<
+		Record<string, FieldKey[]>
+	>({});
+
+	useEffect(() => {
+		if (dynamicVariablesSelectedValue?.name) {
+			setSelectedAttribute(dynamicVariablesSelectedValue.name);
+		}
+
+		if (dynamicVariablesSelectedValue?.value) {
+			setAttributeSource(dynamicVariablesSelectedValue.value as AttributeSource);
+		}
+	}, [
+		dynamicVariablesSelectedValue?.name,
+		dynamicVariablesSelectedValue?.value,
+	]);
+
+	const { data, error, isLoading, refetch } = useGetFieldKeys({
+		signal:
+			attributeSource === AttributeSource.ALL_SOURCES
+				? undefined
+				: (attributeSource?.toLowerCase() as 'traces' | 'logs' | 'metrics'),
+		name: debouncedApiSearchText,
+	});
+
+	const isComplete = useMemo(() => data?.payload?.complete === true, [data]);
+
+	useEffect(() => {
+		if (data) {
+			const newAttributes = data.payload?.keys ?? {};
+			setAttributes(newAttributes);
+			setFilteredAttributes(newAttributes);
+		}
+	}, [data]);
+
+	// refetch when attributeSource changes
+	useEffect(() => {
+		if (attributeSource) {
+			refetch();
+		}
+	}, [attributeSource, refetch, debouncedApiSearchText]);
+
+	// Handle search based on whether we have complete data or not
+	const handleSearch = useCallback(
+		(text: string) => {
+			if (isComplete) {
+				// If complete is true, do client-side filtering
+				if (!text) {
+					setFilteredAttributes(attributes);
+					return;
+				}
+
+				const filtered: Record<string, FieldKey[]> = {};
+				Object.keys(attributes).forEach((key) => {
+					if (key.toLowerCase().includes(text.toLowerCase())) {
+						filtered[key] = attributes[key];
+					}
+				});
+				setFilteredAttributes(filtered);
+			} else {
+				// If complete is false, debounce the API call
+				setApiSearchText(text);
+			}
+		},
+		[attributes, isComplete],
+	);
+
+	// update setDynamicVariablesSelectedValue with debounce when attribute and source is selected
+	useEffect(() => {
+		if (selectedAttribute || attributeSource) {
+			setDynamicVariablesSelectedValue({
+				name: selectedAttribute || dynamicVariablesSelectedValue?.name || '',
+				value:
+					attributeSource ||
+					dynamicVariablesSelectedValue?.value ||
+					AttributeSource.ALL_SOURCES,
+			});
+		}
+	}, [
+		selectedAttribute,
+		attributeSource,
+		setDynamicVariablesSelectedValue,
+		dynamicVariablesSelectedValue?.name,
+		dynamicVariablesSelectedValue?.value,
+	]);
+
+	const errorText = (error as any)?.message || errorMessage;
+	return (
+		<div className="dynamic-variable-container">
+			<CustomSelect
+				placeholder="Select an Attribute"
+				options={Object.keys(filteredAttributes).map((key) => ({
+					label: key,
+					value: key,
+				}))}
+				loading={isLoading}
+				status={errorText ? 'error' : undefined}
+				onChange={(value): void => {
+					setSelectedAttribute(value);
+				}}
+				showSearch
+				errorMessage={errorText as any}
+				value={selectedAttribute || dynamicVariablesSelectedValue?.name}
+				onSearch={handleSearch}
+				onRetry={(): void => {
+					// reset error message
+					setErrorMessage(undefined);
+					refetch();
+				}}
+			/>
+			<Typography className="dynamic-variable-from-text">from</Typography>
+			<Select
+				placeholder="Source"
+				defaultValue={AttributeSource.ALL_SOURCES}
+				options={sources.map((source) => ({ label: source, value: source }))}
+				onChange={(value): void => setAttributeSource(value as AttributeSource)}
+				value={attributeSource || dynamicVariablesSelectedValue?.value}
+			/>
+		</div>
+	);
+}
+
+export default DynamicVariable;

frontend/src/container/NewDashboard/DashboardSettings/Variables/VariableItem/DynamicVariable/__test__/DynamicVariable.test.tsx

@@ -0,0 +1,376 @@
+/* eslint-disable react/jsx-props-no-spreading */
+/* eslint-disable sonarjs/no-duplicate-string */
+import { fireEvent, render, screen, waitFor } from '@testing-library/react';
+import { useGetFieldKeys } from 'hooks/dynamicVariables/useGetFieldKeys';
+
+import DynamicVariable from '../DynamicVariable';
+
+// Mock scrollIntoView since it's not available in JSDOM
+window.HTMLElement.prototype.scrollIntoView = jest.fn();
+
+// Mock dependencies
+jest.mock('hooks/dynamicVariables/useGetFieldKeys', () => ({
+	useGetFieldKeys: jest.fn(),
+}));
+
+jest.mock('hooks/useDebounce', () => ({
+	__esModule: true,
+	default: (value: any): any => value, // Return the same value without debouncing for testing
+}));
+
+describe('DynamicVariable Component', () => {
+	const mockSetDynamicVariablesSelectedValue = jest.fn();
+	const ATTRIBUTE_PLACEHOLDER = 'Select an Attribute';
+	const LOADING_TEXT = 'We are updating the values...';
+	const DEFAULT_PROPS = {
+		setDynamicVariablesSelectedValue: mockSetDynamicVariablesSelectedValue,
+		dynamicVariablesSelectedValue: undefined,
+	};
+
+	const mockFieldKeysResponse = {
+		payload: {
+			keys: {
+				'service.name': [],
+				'http.status_code': [],
+				duration: [],
+			},
+			complete: true,
+		},
+		statusCode: 200,
+	};
+
+	beforeEach(() => {
+		jest.clearAllMocks();
+
+		// Default mock implementation
+		(useGetFieldKeys as jest.Mock).mockReturnValue({
+			data: mockFieldKeysResponse,
+			error: null,
+			isLoading: false,
+			refetch: jest.fn(),
+		});
+	});
+
+	// Helper function to get the attribute select element
+	const getAttributeSelect = (): HTMLElement =>
+		screen.getAllByRole('combobox')[0];
+
+	// Helper function to get the source select element
+	const getSourceSelect = (): HTMLElement => screen.getAllByRole('combobox')[1];
+
+	it('renders with default state', () => {
+		render(<DynamicVariable {...DEFAULT_PROPS} />);
+
+		// Check for main components
+		expect(screen.getByText(ATTRIBUTE_PLACEHOLDER)).toBeInTheDocument();
+		expect(screen.getByText('All Sources')).toBeInTheDocument();
+		expect(screen.getByText('from')).toBeInTheDocument();
+	});
+
+	it('uses existing values from dynamicVariablesSelectedValue prop', () => {
+		const selectedValue = {
+			name: 'service.name',
+			value: 'Logs',
+		};
+
+		render(
+			<DynamicVariable
+				setDynamicVariablesSelectedValue={mockSetDynamicVariablesSelectedValue}
+				dynamicVariablesSelectedValue={selectedValue}
+			/>,
+		);
+
+		// Verify values are set
+		expect(screen.getByText('service.name')).toBeInTheDocument();
+		expect(screen.getByText('Logs')).toBeInTheDocument();
+	});
+
+	it('shows loading state when fetching data', () => {
+		(useGetFieldKeys as jest.Mock).mockReturnValue({
+			data: null,
+			error: null,
+			isLoading: true,
+			refetch: jest.fn(),
+		});
+
+		render(<DynamicVariable {...DEFAULT_PROPS} />);
+
+		// Open the CustomSelect dropdown
+		const attributeSelectElement = getAttributeSelect();
+		fireEvent.mouseDown(attributeSelectElement);
+
+		// Should show loading state
+		expect(screen.getByText(LOADING_TEXT)).toBeInTheDocument();
+	});
+
+	it('shows error message when API fails', () => {
+		const errorMessage = 'Failed to fetch field keys';
+
+		(useGetFieldKeys as jest.Mock).mockReturnValue({
+			data: null,
+			error: { message: errorMessage },
+			isLoading: false,
+			refetch: jest.fn(),
+		});
+
+		render(<DynamicVariable {...DEFAULT_PROPS} />);
+
+		// Open the CustomSelect dropdown
+		const attributeSelectElement = getAttributeSelect();
+		fireEvent.mouseDown(attributeSelectElement);
+
+		// Should show error message
+		expect(screen.getByText(errorMessage)).toBeInTheDocument();
+	});
+
+	it('updates filteredAttributes when data is loaded', async () => {
+		render(<DynamicVariable {...DEFAULT_PROPS} />);
+
+		// Open the CustomSelect dropdown
+		const attributeSelectElement = getAttributeSelect();
+		fireEvent.mouseDown(attributeSelectElement);
+
+		// Wait for options to appear in the dropdown
+		await waitFor(() => {
+			// Looking for option-content elements inside the CustomSelect dropdown
+			const options = document.querySelectorAll('.option-content');
+			expect(options.length).toBeGreaterThan(0);
+
+			// Check if all expected options are present
+			let foundServiceName = false;
+			let foundHttpStatusCode = false;
+			let foundDuration = false;
+
+			options.forEach((option) => {
+				const text = option.textContent?.trim();
+				if (text === 'service.name') foundServiceName = true;
+				if (text === 'http.status_code') foundHttpStatusCode = true;
+				if (text === 'duration') foundDuration = true;
+			});
+
+			expect(foundServiceName).toBe(true);
+			expect(foundHttpStatusCode).toBe(true);
+			expect(foundDuration).toBe(true);
+		});
+	});
+
+	it('calls setDynamicVariablesSelectedValue when attribute is selected', async () => {
+		render(<DynamicVariable {...DEFAULT_PROPS} />);
+
+		// Open the attribute dropdown
+		const attributeSelectElement = getAttributeSelect();
+		fireEvent.mouseDown(attributeSelectElement);
+
+		// Wait for options to appear, then click on service.name
+		await waitFor(() => {
+			// Need to find the option-item containing service.name
+			const serviceNameOption = screen.getByText('service.name');
+			expect(serviceNameOption).not.toBeNull();
+			expect(serviceNameOption?.textContent).toBe('service.name');
+
+			// Click on the option-item that contains service.name
+			const optionElement = serviceNameOption?.closest('.option-item');
+			if (optionElement) {
+				fireEvent.click(optionElement);
+			}
+		});
+
+		// Check if the setter was called with the correct value
+		expect(mockSetDynamicVariablesSelectedValue).toHaveBeenCalledWith({
+			name: 'service.name',
+			value: 'All Sources',
+		});
+	});
+
+	it('calls setDynamicVariablesSelectedValue when source is selected', () => {
+		const mockRefetch = jest.fn();
+
+		(useGetFieldKeys as jest.Mock).mockReturnValue({
+			data: mockFieldKeysResponse,
+			error: null,
+			isLoading: false,
+			refetch: mockRefetch,
+		});
+
+		render(<DynamicVariable {...DEFAULT_PROPS} />);
+
+		// Get the Select component
+		const select = screen
+			.getByText('All Sources')
+			.closest('div[class*="ant-select"]');
+		expect(select).toBeInTheDocument();
+
+		// Directly call the onChange handler by simulating the Select's onChange
+		// Find the props.onChange of the Select component and call it directly
+		fireEvent.mouseDown(select as HTMLElement);
+
+		// Use a more specific selector to find the "Logs" option
+		const optionsContainer = document.querySelector(
+			'.rc-virtual-list-holder-inner',
+		);
+		expect(optionsContainer).not.toBeNull();
+
+		// Find the option with Logs text content
+		const logsOption = Array.from(
+			optionsContainer?.querySelectorAll('.ant-select-item-option-content') || [],
+		)
+			.find((element) => element.textContent === 'Logs')
+			?.closest('.ant-select-item-option');
+
+		expect(logsOption).not.toBeNull();
+
+		// Click on it
+		if (logsOption) {
+			fireEvent.click(logsOption);
+		}
+
+		// Check if the setter was called with the correct value
+		expect(mockSetDynamicVariablesSelectedValue).toHaveBeenCalledWith(
+			expect.objectContaining({
+				value: 'Logs',
+			}),
+		);
+	});
+
+	it('filters attributes locally when complete is true', async () => {
+		render(<DynamicVariable {...DEFAULT_PROPS} />);
+
+		// Open the attribute dropdown
+		const attributeSelectElement = getAttributeSelect();
+		fireEvent.mouseDown(attributeSelectElement);
+
+		// Mock the filter function behavior
+		const attributeKeys = Object.keys(mockFieldKeysResponse.payload.keys);
+
+		// Only "http.status_code" should match the filter
+		const expectedFilteredKeys = attributeKeys.filter((key) =>
+			key.includes('http'),
+		);
+
+		// Verify our expected filtering logic
+		expect(expectedFilteredKeys).toContain('http.status_code');
+		expect(expectedFilteredKeys).not.toContain('service.name');
+		expect(expectedFilteredKeys).not.toContain('duration');
+
+		// Now verify the component's filtering ability by inputting the search text
+		const inputElement = screen
+			.getAllByRole('combobox')[0]
+			.querySelector('input');
+		if (inputElement) {
+			fireEvent.change(inputElement, { target: { value: 'http' } });
+		}
+	});
+
+	it('triggers API call when complete is false and search text changes', async () => {
+		const mockRefetch = jest.fn();
+
+		// Set up the mock to indicate that data is not complete
+		// and needs to be fetched from the server
+		(useGetFieldKeys as jest.Mock).mockReturnValue({
+			data: {
+				payload: {
+					keys: {
+						'http.status_code': [],
+					},
+					complete: false, // This indicates server-side filtering is needed
+				},
+			},
+			error: null,
+			isLoading: false,
+			refetch: mockRefetch,
+		});
+
+		// Render with Logs as the initial source
+		render(
+			<DynamicVariable
+				{...DEFAULT_PROPS}
+				dynamicVariablesSelectedValue={{
+					name: '',
+					value: 'Logs',
+				}}
+			/>,
+		);
+
+		// Clear any initial calls
+		mockRefetch.mockClear();
+
+		// Now test the search functionality
+		const attributeSelectElement = getAttributeSelect();
+		fireEvent.mouseDown(attributeSelectElement);
+
+		// Find the input element and simulate typing
+		const inputElement = document.querySelector(
+			'.ant-select-selection-search-input',
+		);
+
+		if (inputElement) {
+			// Simulate typing in the search input
+			fireEvent.change(inputElement, { target: { value: 'http' } });
+
+			// Verify that the input has the correct value
+			expect((inputElement as HTMLInputElement).value).toBe('http');
+
+			// Wait for the effect to run and verify refetch was called
+			await waitFor(
+				() => {
+					expect(mockRefetch).toHaveBeenCalled();
+				},
+				{ timeout: 3000 },
+			); // Increase timeout to give more time for the effect to run
+		}
+	});
+
+	it('triggers refetch when attributeSource changes', async () => {
+		const mockRefetch = jest.fn();
+
+		(useGetFieldKeys as jest.Mock).mockReturnValue({
+			data: mockFieldKeysResponse,
+			error: null,
+			isLoading: false,
+			refetch: mockRefetch,
+		});
+
+		render(<DynamicVariable {...DEFAULT_PROPS} />);
+
+		// Clear any initial calls
+		mockRefetch.mockClear();
+
+		// Find and click on the source select to open dropdown
+		const sourceSelectElement = getSourceSelect();
+		fireEvent.mouseDown(sourceSelectElement);
+
+		// Find and click on the "Metrics" option
+		const metricsOption = screen.getByText('Metrics');
+		fireEvent.click(metricsOption);
+
+		// Wait for the effect to run
+		await waitFor(() => {
+			// Verify that refetch was called after source selection
+			expect(mockRefetch).toHaveBeenCalled();
+		});
+	});
+
+	it('shows retry button when error occurs', () => {
+		const mockRefetch = jest.fn();
+
+		(useGetFieldKeys as jest.Mock).mockReturnValue({
+			data: null,
+			error: { message: 'Failed to fetch field keys' },
+			isLoading: false,
+			refetch: mockRefetch,
+		});
+
+		render(<DynamicVariable {...DEFAULT_PROPS} />);
+
+		// Open the attribute dropdown
+		const attributeSelectElement = getAttributeSelect();
+		fireEvent.mouseDown(attributeSelectElement);
+
+		// Find and click reload icon (retry button)
+		const reloadIcon = screen.getByLabelText('reload');
+		fireEvent.click(reloadIcon);
+
+		// Should trigger refetch
+		expect(mockRefetch).toHaveBeenCalled();
+	});
+});

frontend/src/container/NewDashboard/DashboardSettings/Variables/VariableItem/VariableItem.styles.scss

@@ -99,8 +99,8 @@
 			}
 
 			.variable-type-btn-group {
-				display: flex;
-				width: 342px;
+				display: grid;
+				grid-template-columns: max-content max-content max-content max-content;
 				height: 32px;
 				flex-shrink: 0;
 				border-radius: 2px;
@@ -113,12 +113,14 @@
 					height: 32px;
 					flex-shrink: 0;
 					border-radius: 2px 0px 0px 2px;
+					width: 100%;
 				}
 
 				.variable-type-btn {
 					display: flex;
 					align-items: center;
 					justify-content: center;
+					gap: 8px;
 				}
 
 				.variable-type-btn + .variable-type-btn {
@@ -199,6 +201,37 @@
 			}
 		}
 
+		.default-value-section {
+			display: grid;
+			grid-template-columns: max-content 1fr;
+
+			.default-value-description {
+				color: var(--bg-vanilla-400);
+				font-family: Inter;
+				font-size: 11px;
+				font-style: normal;
+				font-weight: 400;
+				line-height: 18px;
+				letter-spacing: -0.06px;
+			}
+		}
+
+		.dynamic-variable-section {
+			justify-content: space-between;
+			margin-bottom: 0;
+
+			.typography-variables {
+				color: var(--bg-vanilla-400);
+				font-family: Inter;
+				font-size: 14px;
+				font-style: normal;
+				font-weight: 400;
+				line-height: 20px; /* 142.857% */
+				letter-spacing: -0.07px;
+				width: 339px;
+			}
+		}
+
 		.variable-textbox-section {
 			justify-content: space-between;
 			margin-bottom: 0;
@@ -446,6 +479,18 @@
 				}
 			}
 
+			.default-value-section {
+				.default-value-description {
+					color: var(--bg-ink-400);
+				}
+			}
+
+			.dynamic-variable-section {
+				.typography-variables {
+					color: var(--bg-ink-400);
+				}
+			}
+
 			.variable-textbox-section {
 				.typography-variables {
 					color: var(--bg-ink-400);

frontend/src/container/NewDashboard/DashboardSettings/Variables/VariableItem/VariableItem.test.tsx

@@ -1,4 +1,3 @@
-import { QueryClient, QueryClientProvider } from 'react-query';
 import { fireEvent, render, screen, waitFor } from 'tests/test-utils';
 import {
 	IDashboardVariable,
@@ -75,23 +74,6 @@ const TEST_VAR_DESCRIPTIONS = {
 const SAVE_BUTTON_TEXT = 'Save Variable';
 const UNIQUE_NAME_PLACEHOLDER = 'Unique name of the variable';
 
-// Create QueryClient for wrapping the component
-const createTestQueryClient = (): QueryClient =>
-	new QueryClient({
-		defaultOptions: {
-			queries: {
-				retry: false,
-			},
-		},
-	});
-
-// Wrapper component with QueryClientProvider
-const wrapper = ({ children }: { children: React.ReactNode }): JSX.Element => (
-	<QueryClientProvider client={createTestQueryClient()}>
-		{children}
-	</QueryClientProvider>
-);
-
 // Basic variable data for testing
 const basicVariableData: IDashboardVariable = {
 	id: TEST_VAR_IDS.VAR1,
@@ -118,7 +100,6 @@ const renderVariableItem = (
 			validateName={validateNameFn}
 			mode={VARIABLE_MODE}
 		/>,
-		{ wrapper } as any,
 	);
 };
 

frontend/src/container/NewDashboard/DashboardSettings/Variables/VariableItem/VariableItem.tsx

@@ -6,7 +6,9 @@ import { Button, Collapse, Input, Select, Switch, Tag, Typography } from 'antd';
 import dashboardVariablesQuery from 'api/dashboard/variables/dashboardVariablesQuery';
 import cx from 'classnames';
 import Editor from 'components/Editor';
+import { CustomSelect } from 'components/NewSelect';
 import { REACT_QUERY_KEY } from 'constants/reactQueryKeys';
+import { useGetFieldValues } from 'hooks/dynamicVariables/useGetFieldValues';
 import { commaValuesParser } from 'lib/dashbaordVariables/customCommaValuesParser';
 import sortValues from 'lib/dashbaordVariables/sortVariableValues';
 import { map } from 'lodash-es';
@@ -16,16 +18,20 @@ import {
 	ClipboardType,
 	DatabaseZap,
 	LayoutList,
+	Pyramid,
 	X,
 } from 'lucide-react';
 import { useCallback, useEffect, useState } from 'react';
 import { useQuery } from 'react-query';
+import { useSelector } from 'react-redux';
+import { AppState } from 'store/reducers';
 import {
 	IDashboardVariable,
 	TSortVariableValuesType,
 	TVariableQueryType,
 	VariableSortTypeArr,
 } from 'types/api/dashboard/getAll';
+import { GlobalReducer } from 'types/reducer/globalTime';
 import { v4 as generateUUID } from 'uuid';
 
 import {
@@ -34,7 +40,9 @@ import {
 } from '../../../DashboardVariablesSelection/util';
 import { variablePropsToPayloadVariables } from '../../../utils';
 import { TVariableMode } from '../types';
+import DynamicVariable from './DynamicVariable/DynamicVariable';
 import { LabelContainer, VariableItemRow } from './styles';
+import { WidgetSelector } from './WidgetSelector';
 
 const { Option } = Select;
 
@@ -57,11 +65,15 @@ function VariableItem({
 	const [variableName, setVariableName] = useState<string>(
 		variableData.name || '',
 	);
+	const [
+		hasUserManuallyChangedName,
+		setHasUserManuallyChangedName,
+	] = useState<boolean>(false);
 	const [variableDescription, setVariableDescription] = useState<string>(
 		variableData.description || '',
 	);
 	const [queryType, setQueryType] = useState<TVariableQueryType>(
-		variableData.type || 'QUERY',
+		variableData.type || 'DYNAMIC',
 	);
 	const [variableQueryValue, setVariableQueryValue] = useState<string>(
 		variableData.queryValue || '',
@@ -85,11 +97,100 @@ function VariableItem({
 		variableData.showALLOption || false,
 	);
 	const [previewValues, setPreviewValues] = useState<string[]>([]);
+	const [variableDefaultValue, setVariableDefaultValue] = useState<string>(
+		(variableData.defaultValue as string) || '',
+	);
+
+	const [
+		dynamicVariablesSelectedValue,
+		setDynamicVariablesSelectedValue,
+	] = useState<{ name: string; value: string }>();
+
+	useEffect(() => {
+		if (
+			variableData.dynamicVariablesAttribute &&
+			variableData.dynamicVariablesSource
+		) {
+			setDynamicVariablesSelectedValue({
+				name: variableData.dynamicVariablesAttribute,
+				value: variableData.dynamicVariablesSource,
+			});
+		}
+	}, [
+		variableData.dynamicVariablesAttribute,
+		variableData.dynamicVariablesSource,
+	]);
 
 	// Error messages
 	const [errorName, setErrorName] = useState<boolean>(false);
+	const [errorNameMessage, setErrorNameMessage] = useState<string>('');
 	const [errorPreview, setErrorPreview] = useState<string | null>(null);
 
+	// Auto-set variable name to selected attribute name in creation mode when user hasn't manually changed it
+	useEffect(() => {
+		if (
+			mode === 'ADD' && // Only in creation mode
+			queryType === 'DYNAMIC' && // Only for dynamic variables
+			dynamicVariablesSelectedValue?.name && // Attribute is selected
+			!hasUserManuallyChangedName // User hasn't manually changed the name
+		) {
+			const newName = dynamicVariablesSelectedValue.name;
+			setVariableName(newName);
+
+			// Trigger validation for the auto-set name
+			if (!validateName(newName)) {
+				setErrorName(true);
+				setErrorNameMessage('Variable name already exists');
+			} else {
+				setErrorName(false);
+				setErrorNameMessage('');
+			}
+		}
+	}, [
+		mode,
+		queryType,
+		dynamicVariablesSelectedValue?.name,
+		hasUserManuallyChangedName,
+		validateName,
+	]);
+
+	const REQUIRED_NAME_MESSAGE = 'Variable name is required';
+
+	// Initialize error state for empty name
+	useEffect(() => {
+		if (!variableName.trim()) {
+			setErrorName(true);
+		}
+	}, [variableName]);
+
+	const { maxTime, minTime } = useSelector<AppState, GlobalReducer>(
+		(state) => state.globalTime,
+	);
+
+	const { data: fieldValues } = useGetFieldValues({
+		signal:
+			dynamicVariablesSelectedValue?.value === 'All Sources'
+				? undefined
+				: (dynamicVariablesSelectedValue?.value?.toLowerCase() as
+						| 'traces'
+						| 'logs'
+						| 'metrics'),
+		name: dynamicVariablesSelectedValue?.name || '',
+		enabled:
+			!!dynamicVariablesSelectedValue?.name &&
+			!!dynamicVariablesSelectedValue?.value,
+		startUnixMilli: minTime,
+		endUnixMilli: maxTime,
+	});
+
+	const [selectedWidgets, setSelectedWidgets] = useState<string[]>([]);
+
+	useEffect(() => {
+		if (queryType === 'DYNAMIC') {
+			setSelectedWidgets(variableData?.dynamicVariablesWidgetIds || []);
+		}
+	}, [queryType, variableData?.dynamicVariablesWidgetIds]);
+
 	useEffect(() => {
 		if (queryType === 'CUSTOM') {
 			setPreviewValues(
@@ -110,6 +211,28 @@ function VariableItem({
 		variableSortType,
 	]);
 
+	useEffect(() => {
+		if (
+			queryType === 'DYNAMIC' &&
+			fieldValues &&
+			dynamicVariablesSelectedValue?.name &&
+			dynamicVariablesSelectedValue?.value
+		) {
+			setPreviewValues(
+				sortValues(
+					fieldValues.payload?.normalizedValues || [],
+					variableSortType,
+				) as never,
+			);
+		}
+	}, [
+		fieldValues,
+		variableSortType,
+		queryType,
+		dynamicVariablesSelectedValue?.name,
+		dynamicVariablesSelectedValue?.value,
+	]);
+
 	const handleSave = (): void => {
 		// Check for cyclic dependencies
 		const newVariable = {
@@ -120,15 +243,26 @@ function VariableItem({
 			customValue: variableCustomValue,
 			textboxValue: variableTextboxValue,
 			multiSelect: variableMultiSelect,
-			showALLOption: variableShowALLOption,
+			showALLOption: queryType === 'DYNAMIC' ? true : variableShowALLOption,
 			sort: variableSortType,
 			...(queryType === 'TEXTBOX' && {
 				selectedValue: (variableData.selectedValue ||
 					variableTextboxValue) as never,
 			}),
+			...(queryType !== 'TEXTBOX' && {
+				defaultValue: variableDefaultValue as never,
+			}),
 			modificationUUID: generateUUID(),
 			id: variableData.id || generateUUID(),
 			order: variableData.order,
+			...(queryType === 'DYNAMIC' && {
+				dynamicVariablesAttribute: dynamicVariablesSelectedValue?.name,
+				dynamicVariablesSource: dynamicVariablesSelectedValue?.value,
+			}),
+			...(queryType === 'DYNAMIC' && {
+				dynamicVariablesWidgetIds:
+					selectedWidgets?.length > 0 ? selectedWidgets : [],
+			}),
 		};
 
 		const allVariables = [...Object.values(existingVariables), newVariable];
@@ -223,17 +357,29 @@ function VariableItem({
 								placeholder="Unique name of the variable"
 								value={variableName}
 								className="name-input"
-								onChange={(e): void => {
-									setVariableName(e.target.value);
-									setErrorName(
-										!validateName(e.target.value) && e.target.value !== variableData.name,
-									);
+								onChange={({ target: { value } }): void => {
+									setVariableName(value);
+									setHasUserManuallyChangedName(true); // Mark that user has manually changed the name
+
+									// Check for empty name
+									if (!value.trim()) {
+										setErrorName(true);
+										setErrorNameMessage(REQUIRED_NAME_MESSAGE);
+									}
+									// Check for duplicate name
+									else if (!validateName(value) && value !== variableData.name) {
+										setErrorName(true);
+										setErrorNameMessage('Variable name already exists');
+									}
+									// No errors
+									else {
+										setErrorName(false);
+										setErrorNameMessage('');
+									}
 								}}
 							/>
 							<div>
-								<Typography.Text type="warning">
-									{errorName ? 'Variable name already exists' : ''}
-								</Typography.Text>
+								<Typography.Text type="warning">{errorNameMessage}</Typography.Text>
 							</div>
 						</div>
 					</VariableItemRow>
@@ -258,18 +404,25 @@ function VariableItem({
 						<div className="variable-type-btn-group">
 							<Button
 								type="text"
-								icon={<DatabaseZap size={14} />}
+								icon={<Pyramid size={14} />}
 								className={cx(
 									// eslint-disable-next-line sonarjs/no-duplicate-string
 									'variable-type-btn',
-									queryType === 'QUERY' ? 'selected' : '',
+									queryType === 'DYNAMIC' ? 'selected' : '',
 								)}
 								onClick={(): void => {
-									setQueryType('QUERY');
+									setQueryType('DYNAMIC');
 									setPreviewValues([]);
+									// Reset manual change flag if no name is entered
+									if (!variableName.trim()) {
+										setHasUserManuallyChangedName(false);
+									}
 								}}
 							>
-								Query
+								Dynamic
+								<Tag bordered={false} className="sidenav-beta-tag" color="geekblue">
+									Beta
+								</Tag>
 							</Button>
 							<Button
 								type="text"
@@ -281,6 +434,10 @@ function VariableItem({
 								onClick={(): void => {
 									setQueryType('TEXTBOX');
 									setPreviewValues([]);
+									// Reset manual change flag if no name is entered
+									if (!variableName.trim()) {
+										setHasUserManuallyChangedName(false);
+									}
 								}}
 							>
 								Textbox
@@ -295,12 +452,46 @@ function VariableItem({
 								onClick={(): void => {
 									setQueryType('CUSTOM');
 									setPreviewValues([]);
+									// Reset manual change flag if no name is entered
+									if (!variableName.trim()) {
+										setHasUserManuallyChangedName(false);
+									}
 								}}
 							>
 								Custom
 							</Button>
+							<Button
+								type="text"
+								icon={<DatabaseZap size={14} />}
+								className={cx(
+									// eslint-disable-next-line sonarjs/no-duplicate-string
+									'variable-type-btn',
+									queryType === 'QUERY' ? 'selected' : '',
+								)}
+								onClick={(): void => {
+									setQueryType('QUERY');
+									setPreviewValues([]);
+									// Reset manual change flag if no name is entered
+									if (!variableName.trim()) {
+										setHasUserManuallyChangedName(false);
+									}
+								}}
+							>
+								Query
+								<Tag bordered={false} className="sidenav-beta-tag" color="warning">
+									Not Recommended
+								</Tag>
+							</Button>
 						</div>
 					</VariableItemRow>
+					{queryType === 'DYNAMIC' && (
+						<div className="variable-dynamic-section">
+							<DynamicVariable
+								setDynamicVariablesSelectedValue={setDynamicVariablesSelectedValue}
+								dynamicVariablesSelectedValue={dynamicVariablesSelectedValue}
+							/>
+						</div>
+					)}
 					{queryType === 'QUERY' && (
 						<div className="query-container">
 							<LabelContainer>
@@ -388,7 +579,9 @@ function VariableItem({
 							/>
 						</VariableItemRow>
 					)}
-					{(queryType === 'QUERY' || queryType === 'CUSTOM') && (
+					{(queryType === 'QUERY' ||
+						queryType === 'CUSTOM' ||
+						queryType === 'DYNAMIC') && (
 						<>
 							<VariableItemRow className="variables-preview-section">
 								<LabelContainer style={{ width: '100%' }}>
@@ -444,7 +637,7 @@ function VariableItem({
 									}}
 								/>
 							</VariableItemRow>
-							{variableMultiSelect && (
+							{variableMultiSelect && queryType !== 'DYNAMIC' && (
 								<VariableItemRow className="all-option-section">
 									<LabelContainer>
 										<Typography className="typography-variables">
@@ -457,8 +650,40 @@ function VariableItem({
 									/>
 								</VariableItemRow>
 							)}
+							<VariableItemRow className="default-value-section">
+								<LabelContainer>
+									<Typography className="typography-variables">Default Value</Typography>
+									<Typography className="default-value-description">
+										{queryType === 'QUERY'
+											? 'Click Test Run Query to see the values or add custom value'
+											: 'Select a value from the preview values or add custom value'}
+									</Typography>
+								</LabelContainer>
+								<CustomSelect
+									placeholder="Select a default value"
+									value={variableDefaultValue}
+									onChange={(value): void => setVariableDefaultValue(value)}
+									options={previewValues.map((value) => ({
+										label: value,
+										value,
+									}))}
+								/>
+							</VariableItemRow>
 						</>
 					)}
+					{queryType === 'DYNAMIC' && (
+						<VariableItemRow className="dynamic-variable-section">
+							<LabelContainer>
+								<Typography className="typography-variables">
+									Select Panels to apply this variable
+								</Typography>
+							</LabelContainer>
+							<WidgetSelector
+								selectedWidgets={selectedWidgets}
+								setSelectedWidgets={setSelectedWidgets}
+							/>
+						</VariableItemRow>
+					)}
 				</div>
 			</div>
 			<div className="variable-item-footer">

frontend/src/container/NewDashboard/DashboardSettings/Variables/VariableItem/WidgetSelector.tsx

@@ -0,0 +1,50 @@
+import { CustomMultiSelect } from 'components/NewSelect';
+import { PANEL_GROUP_TYPES } from 'constants/queryBuilder';
+import { generateGridTitle } from 'container/GridPanelSwitch/utils';
+import { useDashboard } from 'providers/Dashboard/Dashboard';
+
+export function WidgetSelector({
+	selectedWidgets,
+	setSelectedWidgets,
+}: {
+	selectedWidgets: string[];
+	setSelectedWidgets: (widgets: string[]) => void;
+}): JSX.Element {
+	const { selectedDashboard } = useDashboard();
+
+	// Get layout IDs for cross-referencing
+	const layoutIds = new Set(
+		(selectedDashboard?.data?.layout || []).map((item) => item.i),
+	);
+
+	// Filter and deduplicate widgets by ID, keeping only those with layout entries
+	// and excluding row widgets since they are not panels that can have variables
+	const widgets = Object.values(
+		(selectedDashboard?.data?.widgets || []).reduce(
+			(acc: Record<string, any>, widget) => {
+				if (
+					widget.id &&
+					layoutIds.has(widget.id) &&
+					widget.panelTypes !== PANEL_GROUP_TYPES.ROW
+				) {
+					acc[widget.id] = widget;
+				}
+				return acc;
+			},
+			{},
+		),
+	);
+
+	return (
+		<CustomMultiSelect
+			placeholder="Select Panels"
+			options={widgets.map((widget) => ({
+				label: generateGridTitle(widget.title),
+				value: widget.id,
+			}))}
+			value={selectedWidgets}
+			onChange={(value): void => setSelectedWidgets(value as string[])}
+			showLabels
+		/>
+	);
+}

frontend/src/container/NewDashboard/DashboardSettings/Variables/addTagFiltersToDashboard.tsx

@@ -0,0 +1,199 @@
+/* eslint-disable sonarjs/cognitive-complexity */
+import {
+	convertFiltersToExpressionWithExistingQuery,
+	removeKeysFromExpression,
+} from 'components/QueryBuilderV2/utils';
+import { cloneDeep, isArray, isEmpty } from 'lodash-es';
+import { Dashboard, Widgets } from 'types/api/dashboard/getAll';
+import {
+	IBuilderQuery,
+	TagFilterItem,
+} from 'types/api/queryBuilder/queryBuilderData';
+
+/**
+ * Updates the query filters in a builder query by appending new tag filters
+ */
+const updateQueryFilters = (
+	queryData: IBuilderQuery,
+	filter: TagFilterItem,
+): IBuilderQuery => {
+	const existingFilters = queryData.filters?.items || [];
+
+	// addition | update
+	const currentFilterKey = filter.key?.key;
+	const valueToAdd = filter.value.toString();
+	const newItems: TagFilterItem[] = [];
+
+	existingFilters.forEach((existingFilter) => {
+		const newFilter = cloneDeep(existingFilter);
+		if (
+			newFilter.key?.key === currentFilterKey &&
+			!(isArray(newFilter.value) && newFilter.value.includes(valueToAdd)) &&
+			newFilter.value !== valueToAdd
+		) {
+			if (isEmpty(newFilter.value)) {
+				newFilter.value = valueToAdd;
+				newFilter.op = 'IN';
+			} else {
+				newFilter.value = (isArray(newFilter.value)
+					? [...newFilter.value, valueToAdd]
+					: [newFilter.value, valueToAdd]) as string[] | string;
+
+				newFilter.op = 'IN';
+			}
+		}
+
+		newItems.push(newFilter);
+	});
+
+	// if yet the filter key doesn't get added then add it
+	if (!newItems.find((item) => item.key?.key === currentFilterKey)) {
+		newItems.push(filter);
+	}
+
+	const newFilterToUpdate = {
+		...queryData.filters,
+		items: newItems,
+		op: queryData.filters?.op || 'AND',
+	};
+
+	return {
+		...queryData,
+		...convertFiltersToExpressionWithExistingQuery(
+			newFilterToUpdate,
+			queryData.filter?.expression,
+		),
+	};
+};
+
+/**
+ * Updates a single widget by adding filters to its query
+ */
+const updateSingleWidget = (
+	widget: Widgets,
+	filter: TagFilterItem,
+): Widgets => {
+	if (!widget.query?.builder?.queryData || isEmpty(filter)) {
+		return widget;
+	}
+
+	return {
+		...widget,
+		query: {
+			...widget.query,
+			builder: {
+				...widget.query.builder,
+				queryData: widget.query.builder.queryData.map(
+					(queryData) => updateQueryFilters(queryData, filter), // todo - Sagar: check for multiple query or not
+				),
+			},
+		},
+	};
+};
+
+const removeIfPresent = (
+	queryData: IBuilderQuery,
+	filter: TagFilterItem,
+): IBuilderQuery => {
+	const existingFilters = queryData.filters?.items || [];
+
+	// addition | update
+	const currentFilterKey = filter.key?.key;
+	const valueToAdd = filter.value.toString();
+	const newItems: TagFilterItem[] = [];
+
+	existingFilters.forEach((existingFilter) => {
+		const newFilter = cloneDeep(existingFilter);
+		if (newFilter.key?.key === currentFilterKey) {
+			if (isArray(newFilter.value) && newFilter.value.includes(valueToAdd)) {
+				newFilter.value = newFilter.value.filter((value) => value !== valueToAdd);
+			} else if (newFilter.value === valueToAdd) {
+				return;
+			}
+		}
+
+		newItems.push(newFilter);
+	});
+
+	return {
+		...queryData,
+		filters: {
+			...queryData.filters,
+			items: newItems,
+			op: queryData.filters?.op || 'AND',
+		},
+		filter: {
+			...queryData.filter,
+			expression: removeKeysFromExpression(
+				queryData.filter?.expression ?? '',
+				filter.key?.key ? [filter.key.key] : [],
+			),
+		},
+	};
+};
+
+const updateAfterRemoval = (
+	widget: Widgets,
+	filter: TagFilterItem,
+): Widgets => {
+	if (!widget.query?.builder?.queryData || isEmpty(filter)) {
+		return widget;
+	}
+
+	// remove the filters where the current filter is available as value as this widget is not selected anymore, hence removal
+	return {
+		...widget,
+		query: {
+			...widget.query,
+			builder: {
+				...widget.query.builder,
+				queryData: widget.query.builder.queryData.map(
+					(queryData) => removeIfPresent(queryData, filter), // todo - Sagar: check for multiple query or not
+				),
+			},
+		},
+	};
+};
+
+/**
+ * A function that takes a dashboard configuration and a list of tag filters
+ * and returns an updated dashboard with the filters appended to widget queries.
+ *
+ * @param dashboard The dashboard configuration
+ * @param filters Array of tag filters to apply to widgets
+ * @param widgetIds Optional array of widget IDs to filter which widgets get updated
+ * @returns Updated dashboard configuration with filters applied
+ */
+export const addTagFiltersToDashboard = (
+	dashboard: Dashboard | undefined,
+	filter: TagFilterItem,
+	widgetIds?: string[],
+	applyToAll?: boolean,
+): Dashboard | undefined => {
+	if (!dashboard || isEmpty(filter)) {
+		return dashboard;
+	}
+
+	// Create a deep copy to avoid mutating the original dashboard
+	const updatedDashboard = cloneDeep(dashboard);
+
+	// Process each widget to add filters
+	if (updatedDashboard.data.widgets) {
+		updatedDashboard.data.widgets = updatedDashboard.data.widgets.map(
+			(widget) => {
+				// Only apply to widgets with 'query' property
+				if ('query' in widget) {
+					// If widgetIds is provided, only update widgets with matching IDs
+					if (!applyToAll && widgetIds && !widgetIds.includes(widget.id)) {
+						// removal if needed
+						return updateAfterRemoval(widget as Widgets, filter);
+					}
+					return updateSingleWidget(widget as Widgets, filter);
+				}
+				return widget;
+			},
+		);
+	}
+
+	return updatedDashboard;
+};

frontend/src/container/NewDashboard/DashboardSettings/Variables/index.tsx

@@ -15,13 +15,20 @@ import { CSS } from '@dnd-kit/utilities';
 import { Button, Modal, Row, Space, Table, Typography } from 'antd';
 import { RowProps } from 'antd/lib';
 import { convertVariablesToDbFormat } from 'container/NewDashboard/DashboardVariablesSelection/util';
+import { useAddDynamicVariableToPanels } from 'hooks/dashboard/useAddDynamicVariableToPanels';
+import { useGetDynamicVariables } from 'hooks/dashboard/useGetDynamicVariables';
 import { useUpdateDashboard } from 'hooks/dashboard/useUpdateDashboard';
+import { createDynamicVariableToWidgetsMap } from 'hooks/dashboard/utils';
 import { useNotifications } from 'hooks/useNotifications';
 import { PenLine, Trash2 } from 'lucide-react';
 import { useDashboard } from 'providers/Dashboard/Dashboard';
-import React, { useEffect, useRef, useState } from 'react';
+import React, { useEffect, useMemo, useRef, useState } from 'react';
 import { useTranslation } from 'react-i18next';
-import { Dashboard, IDashboardVariable } from 'types/api/dashboard/getAll';
+import {
+	Dashboard,
+	IDashboardVariable,
+	Widgets,
+} from 'types/api/dashboard/getAll';
 
 import { TVariableMode } from './types';
 import VariableItem from './VariableItem/VariableItem';
@@ -52,8 +59,10 @@ function TableRow({ children, ...props }: RowProps): JSX.Element {
 		// eslint-disable-next-line react/jsx-props-no-spreading
 		<tr {...props} ref={setNodeRef} style={style} {...attributes}>
 			{React.Children.map(children, (child) => {
-				if ((child as React.ReactElement).key === 'name') {
-					return React.cloneElement(child as React.ReactElement, {
+				const childElement = child as React.ReactElement;
+				if (childElement.key === 'name') {
+					return React.cloneElement(childElement, {
+						key: 'name-with-drag',
 						children: (
 							<div className="variable-name-drag">
 								<HolderOutlined
@@ -68,7 +77,7 @@ function TableRow({ children, ...props }: RowProps): JSX.Element {
 					});
 				}
 
-				return child;
+				return childElement;
 			})}
 		</tr>
 	);
@@ -81,6 +90,8 @@ function VariablesSetting({
 }): JSX.Element {
 	const variableToDelete = useRef<IDashboardVariable | null>(null);
 	const [deleteVariableModal, setDeleteVariableModal] = useState(false);
+	const variableToApplyToAll = useRef<IDashboardVariable | null>(null);
+	const [applyToAllModal, setApplyToAllModal] = useState(false);
 
 	const { t } = useTranslation(['dashboard']);
 
@@ -88,7 +99,12 @@ function VariablesSetting({
 
 	const { notifications } = useNotifications();
 
-	const { variables = {} } = selectedDashboard?.data || {};
+	const variables = useMemo(() => selectedDashboard?.data?.variables || {}, [
+		selectedDashboard?.data?.variables,
+	]);
+	const widgets = useMemo(() => selectedDashboard?.data?.widgets || [], [
+		selectedDashboard?.data?.widgets,
+	]);
 
 	const [variablesTableData, setVariablesTableData] = useState<any>([]);
 	const [variblesOrderArr, setVariablesOrderArr] = useState<number[]>([]);
@@ -127,6 +143,19 @@ function VariablesSetting({
 
 	const updateMutation = useUpdateDashboard();
 
+	const addDynamicVariableToPanels = useAddDynamicVariableToPanels();
+
+	const { dynamicVariables } = useGetDynamicVariables();
+
+	const dynamicVariableToWidgetsMap = useMemo(
+		() =>
+			createDynamicVariableToWidgetsMap(
+				dynamicVariables,
+				(widgets as Widgets[]) || [],
+			),
+		[dynamicVariables, widgets],
+	);
+
 	useEffect(() => {
 		const tableRowData = [];
 		const variableOrderArr = [];
@@ -157,24 +186,48 @@ function VariablesSetting({
 		tableRowData.sort((a, b) => a.order - b.order);
 		variableOrderArr.sort((a, b) => a - b);
 
-		setVariablesTableData(tableRowData);
+		// Apply dynamic variables widget IDs if available
+		const processedTableRowData = tableRowData.map(
+			(variable: IDashboardVariable) => {
+				if (variable.type === 'DYNAMIC') {
+					return {
+						...variable,
+						dynamicVariablesWidgetIds: dynamicVariableToWidgetsMap[variable.id] || [],
+					};
+				}
+				return variable;
+			},
+		);
+
+		setVariablesTableData(processedTableRowData);
 		setVariablesOrderArr(variableOrderArr);
 		setExistingVariableNamesMap(variableNamesMap);
-	}, [variables]);
+	}, [variables, dynamicVariableToWidgetsMap]);
 
 	const updateVariables = (
 		updatedVariablesData: Dashboard['data']['variables'],
+		currentRequestedId?: string,
+		applyToAll?: boolean,
 	): void => {
 		if (!selectedDashboard) {
 			return;
 		}
 
+		const newDashboard =
+			(currentRequestedId &&
+				addDynamicVariableToPanels(
+					selectedDashboard,
+					updatedVariablesData[currentRequestedId || ''],
+					applyToAll,
+				)) ||
+			selectedDashboard;
+
 		updateMutation.mutateAsync(
 			{
 				id: selectedDashboard.id,
 
 				data: {
-					...selectedDashboard.data,
+					...newDashboard.data,
 					variables: updatedVariablesData,
 				},
 			},
@@ -202,6 +255,7 @@ function VariablesSetting({
 	const onVariableSaveHandler = (
 		mode: TVariableMode,
 		variableData: IDashboardVariable,
+		applyToAll?: boolean,
 	): void => {
 		const updatedVariableData = {
 			...variableData,
@@ -225,7 +279,7 @@ function VariablesSetting({
 		const variables = convertVariablesToDbFormat(newVariablesArr);
 
 		setVariablesTableData(newVariablesArr);
-		updateVariables(variables);
+		updateVariables(variables, variableData?.id, applyToAll);
 		onDoneVariableViewMode();
 	};
 
@@ -251,6 +305,28 @@ function VariablesSetting({
 		setDeleteVariableModal(false);
 	};
 
+	const onApplyToAllHandler = (variable: IDashboardVariable): void => {
+		variableToApplyToAll.current = variable;
+		setApplyToAllModal(true);
+	};
+
+	const handleApplyToAllConfirm = (): void => {
+		if (variableToApplyToAll.current) {
+			onVariableSaveHandler(
+				variableViewMode || 'EDIT',
+				variableToApplyToAll.current,
+				true,
+			);
+		}
+		variableToApplyToAll.current = null;
+		setApplyToAllModal(false);
+	};
+
+	const handleApplyToAllCancel = (): void => {
+		variableToApplyToAll.current = null;
+		setApplyToAllModal(false);
+	};
+
 	const validateVariableName = (name: string): boolean =>
 		!existingVariableNamesMap[name];
 
@@ -271,6 +347,16 @@ function VariablesSetting({
 						{variable.description}
 					</Typography.Text>
 					<Space className="actions-btns">
+						{variable.type === 'DYNAMIC' && (
+							<Button
+								type="text"
+								onClick={(): void => onApplyToAllHandler(variable)}
+								className="apply-to-all-button"
+								loading={updateMutation.isLoading}
+							>
+								<Typography.Text>Apply to all</Typography.Text>
+							</Button>
+						)}
 						<Button
 							type="text"
 							onClick={(): void => onVariableViewModeEnter('EDIT', variable)}
@@ -415,6 +501,25 @@ function VariablesSetting({
 					?
 				</Typography.Text>
 			</Modal>
+			<Modal
+				title="Apply variable to all panels"
+				centered
+				open={applyToAllModal}
+				onOk={handleApplyToAllConfirm}
+				onCancel={handleApplyToAllCancel}
+				okText="Apply to all"
+				cancelText="Cancel"
+				okButtonProps={{ danger: true }}
+			>
+				<Typography.Text>
+					Are you sure you want to apply variable{' '}
+					<span className="delete-variable-name">
+						{variableToApplyToAll?.current?.name}
+					</span>{' '}
+					to all panels? This action may affect panels where this variable is not
+					applicable.
+				</Typography.Text>
+			</Modal>
 		</>
 	);
 }

frontend/src/container/NewDashboard/DashboardVariablesSelection/DashboardVariableSelection.tsx

@@ -1,6 +1,6 @@
 import './DashboardVariableSelection.styles.scss';
 
-import { Alert, Row } from 'antd';
+import { Row } from 'antd';
 import { isEmpty } from 'lodash-es';
 import { useDashboard } from 'providers/Dashboard/Dashboard';
 import { memo, useEffect, useState } from 'react';
@@ -9,6 +9,7 @@ import { AppState } from 'store/reducers';
 import { IDashboardVariable } from 'types/api/dashboard/getAll';
 import { GlobalReducer } from 'types/reducer/globalTime';
 
+import DynamicVariableSelection from './DynamicVariableSelection';
 import {
 	buildDependencies,
 	buildDependencyGraph,
@@ -99,16 +100,23 @@ function DashboardVariableSelection(): JSX.Element | null {
 		[JSON.stringify(dependencyData?.order), minTime, maxTime],
 	);
 
+	// Performance optimization: For dynamic variables with allSelected=true, we don't store
+	// individual values in localStorage since we can always derive them from available options.
+	// This makes localStorage much lighter and more efficient.
 	const onValueUpdate = (
 		name: string,
 		id: string,
 		value: IDashboardVariable['selectedValue'],
 		allSelected: boolean,
-		// isMountedCall?: boolean,
+		haveCustomValuesSelected?: boolean,
 		// eslint-disable-next-line sonarjs/cognitive-complexity
 	): void => {
 		if (id) {
-			updateLocalStorageDashboardVariables(name, value, allSelected);
+			// For dynamic variables, only store in localStorage when NOT allSelected
+			// This makes localStorage much lighter by avoiding storing all individual values
+			const variable = variables?.[id] || variables?.[name];
+			const isDynamic = variable?.type === 'DYNAMIC';
+			updateLocalStorageDashboardVariables(name, value, allSelected, isDynamic);
 
 			if (selectedDashboard) {
 				setSelectedDashboard((prev) => {
@@ -121,6 +129,7 @@ function DashboardVariableSelection(): JSX.Element | null {
 								...oldVariables[id],
 								selectedValue: value,
 								allSelected,
+								haveCustomValuesSelected,
 							};
 						}
 						if (oldVariables?.[name]) {
@@ -128,6 +137,7 @@ function DashboardVariableSelection(): JSX.Element | null {
 								...oldVariables[name],
 								selectedValue: value,
 								allSelected,
+								haveCustomValuesSelected,
 							};
 						}
 						return {
@@ -170,22 +180,22 @@ function DashboardVariableSelection(): JSX.Element | null {
 	);
 
 	return (
-		<>
-			{dependencyData?.hasCycle && (
-				<Alert
-					message={`Circular dependency detected: ${dependencyData?.cycleNodes?.join(
-						' → ',
-					)}`}
-					type="error"
-					showIcon
-					className="cycle-error-alert"
-				/>
-			)}
-			<Row style={{ display: 'flex', gap: '12px' }}>
-				{orderBasedSortedVariables &&
-					Array.isArray(orderBasedSortedVariables) &&
-					orderBasedSortedVariables.length > 0 &&
-					orderBasedSortedVariables.map((variable) => (
+		<Row style={{ display: 'flex', gap: '12px' }}>
+			{orderBasedSortedVariables &&
+				Array.isArray(orderBasedSortedVariables) &&
+				orderBasedSortedVariables.length > 0 &&
+				orderBasedSortedVariables.map((variable) =>
+					variable.type === 'DYNAMIC' ? (
+						<DynamicVariableSelection
+							key={`${variable.name}${variable.id}${variable.order}`}
+							existingVariables={variables}
+							variableData={{
+								name: variable.name,
+								...variable,
+							}}
+							onValueUpdate={onValueUpdate}
+						/>
+					) : (
 						<VariableItem
 							key={`${variable.name}${variable.id}}${variable.order}`}
 							existingVariables={variables}
@@ -198,9 +208,9 @@ function DashboardVariableSelection(): JSX.Element | null {
 							setVariablesToGetUpdated={setVariablesToGetUpdated}
 							dependencyData={dependencyData}
 						/>
-					))}
-			</Row>
-		</>
+					),
+				)}
+		</Row>
 	);
 }
 

frontend/src/container/NewDashboard/DashboardVariablesSelection/DynamicVariableSelection.tsx

@@ -0,0 +1,585 @@
+/* eslint-disable sonarjs/cognitive-complexity */
+/* eslint-disable no-nested-ternary */
+import './DashboardVariableSelection.styles.scss';
+
+import { InfoCircleOutlined } from '@ant-design/icons';
+import { Tooltip, Typography } from 'antd';
+import { getFieldValues } from 'api/dynamicVariables/getFieldValues';
+import { CustomMultiSelect, CustomSelect } from 'components/NewSelect';
+import { SOMETHING_WENT_WRONG } from 'constants/api';
+import { DEBOUNCE_DELAY } from 'constants/queryBuilderFilterConfig';
+import { REACT_QUERY_KEY } from 'constants/reactQueryKeys';
+import useDebounce from 'hooks/useDebounce';
+import { isEmpty, isUndefined } from 'lodash-es';
+import { useCallback, useEffect, useMemo, useState } from 'react';
+import { useQuery } from 'react-query';
+import { useSelector } from 'react-redux';
+import { AppState } from 'store/reducers';
+import { IDashboardVariable } from 'types/api/dashboard/getAll';
+import { GlobalReducer } from 'types/reducer/globalTime';
+import { popupContainer } from 'utils/selectPopupContainer';
+
+import { ALL_SELECT_VALUE } from '../utils';
+import { SelectItemStyle } from './styles';
+import {
+	areArraysEqual,
+	getOptionsForDynamicVariable,
+	uniqueValues,
+} from './util';
+import { getSelectValue } from './VariableItem';
+
+interface DynamicVariableSelectionProps {
+	variableData: IDashboardVariable;
+	existingVariables: Record<string, IDashboardVariable>;
+	onValueUpdate: (
+		name: string,
+		id: string,
+		arg1: IDashboardVariable['selectedValue'],
+		allSelected: boolean,
+		haveCustomValuesSelected?: boolean,
+	) => void;
+}
+
+function DynamicVariableSelection({
+	variableData,
+	onValueUpdate,
+	existingVariables,
+}: DynamicVariableSelectionProps): JSX.Element {
+	const [optionsData, setOptionsData] = useState<(string | number | boolean)[]>(
+		[],
+	);
+
+	const [errorMessage, setErrorMessage] = useState<null | string>(null);
+
+	const [isComplete, setIsComplete] = useState<boolean>(false);
+
+	const [filteredOptionsData, setFilteredOptionsData] = useState<
+		(string | number | boolean)[]
+	>([]);
+
+	const [relatedValues, setRelatedValues] = useState<string[]>([]);
+	const [originalRelatedValues, setOriginalRelatedValues] = useState<string[]>(
+		[],
+	);
+
+	const [tempSelection, setTempSelection] = useState<
+		string | string[] | undefined
+	>(undefined);
+
+	// Track dropdown open state for auto-checking new values
+	const [isDropdownOpen, setIsDropdownOpen] = useState<boolean>(false);
+
+	// Create a dependency key from all dynamic variables
+	const dynamicVariablesKey = useMemo(() => {
+		if (!existingVariables) return 'no_variables';
+
+		const dynamicVars = Object.values(existingVariables)
+			.filter((v) => v.type === 'DYNAMIC')
+			.map(
+				(v) => `${v.name || 'unnamed'}:${JSON.stringify(v.selectedValue || null)}`,
+			)
+			.join('|');
+
+		return dynamicVars || 'no_dynamic_variables';
+	}, [existingVariables]);
+
+	const [apiSearchText, setApiSearchText] = useState<string>('');
+
+	const debouncedApiSearchText = useDebounce(apiSearchText, DEBOUNCE_DELAY);
+
+	const { maxTime, minTime } = useSelector<AppState, GlobalReducer>(
+		(state) => state.globalTime,
+	);
+
+	// existing query is the query made from the other dynamic variables around this one with there current values
+	// for e.g. k8s.namespace.name IN ["zeus", "gene"] AND doc_op_type IN ["test"]
+	const existingQuery = useMemo(() => {
+		if (!existingVariables || !variableData.dynamicVariablesAttribute) {
+			return '';
+		}
+
+		const queryParts: string[] = [];
+
+		Object.entries(existingVariables).forEach(([, variable]) => {
+			// Skip the current variable being processed
+			if (variable.id === variableData.id) {
+				return;
+			}
+
+			// Only include dynamic variables that have selected values and are not selected as ALL
+			if (
+				variable.type === 'DYNAMIC' &&
+				variable.dynamicVariablesAttribute &&
+				variable.selectedValue &&
+				!isEmpty(variable.selectedValue) &&
+				(variable.showALLOption ? !variable.allSelected : true)
+			) {
+				const attribute = variable.dynamicVariablesAttribute;
+				const values = Array.isArray(variable.selectedValue)
+					? variable.selectedValue
+					: [variable.selectedValue];
+
+				// Filter out empty values and convert to strings
+				const validValues = values
+					.filter((value) => value !== null && value !== undefined && value !== '')
+					.map((value) => value.toString());
+
+				if (validValues.length > 0) {
+					// Format values for query - wrap strings in quotes, keep numbers as is
+					const formattedValues = validValues.map((value) => {
+						// Check if value is a number
+						const numValue = Number(value);
+						if (!Number.isNaN(numValue) && Number.isFinite(numValue)) {
+							return value; // Keep as number
+						}
+						// Escape single quotes and wrap in quotes
+						return `'${value.replace(/'/g, "\\'")}'`;
+					});
+
+					if (formattedValues.length === 1) {
+						queryParts.push(`${attribute} = ${formattedValues[0]}`);
+					} else {
+						queryParts.push(`${attribute} IN [${formattedValues.join(', ')}]`);
+					}
+				}
+			}
+		});
+
+		return queryParts.join(' AND ');
+	}, [
+		existingVariables,
+		variableData.id,
+		variableData.dynamicVariablesAttribute,
+	]);
+
+	const { isLoading, refetch } = useQuery(
+		[
+			REACT_QUERY_KEY.DASHBOARD_BY_ID,
+			variableData.name || `variable_${variableData.id}`,
+			dynamicVariablesKey,
+			minTime,
+			maxTime,
+			debouncedApiSearchText,
+		],
+		{
+			enabled: variableData.type === 'DYNAMIC',
+			queryFn: () =>
+				getFieldValues(
+					variableData.dynamicVariablesSource?.toLowerCase() === 'all sources'
+						? undefined
+						: (variableData.dynamicVariablesSource?.toLowerCase() as
+								| 'traces'
+								| 'logs'
+								| 'metrics'),
+					variableData.dynamicVariablesAttribute,
+					debouncedApiSearchText,
+					minTime,
+					maxTime,
+					existingQuery,
+				),
+			onSuccess: (data) => {
+				const newNormalizedValues = data.payload?.normalizedValues || [];
+				const newRelatedValues = data.payload?.relatedValues || [];
+
+				if (!debouncedApiSearchText) {
+					setOptionsData(newNormalizedValues);
+					setIsComplete(data.payload?.complete || false);
+				}
+				setFilteredOptionsData(newNormalizedValues);
+				setRelatedValues(newRelatedValues);
+				setOriginalRelatedValues(newRelatedValues);
+
+				// Only run auto-check logic when necessary to avoid performance issues
+				if (variableData.allSelected && isDropdownOpen) {
+					// Build the latest full list from API (normalized + related)
+					const latestValues = [
+						...new Set([
+							...newNormalizedValues.map((v) => v.toString()),
+							...newRelatedValues.map((v) => v.toString()),
+						]),
+					];
+
+					// Update temp selection to exactly reflect latest API values when ALL is active
+					const currentStrings = Array.isArray(tempSelection)
+						? tempSelection.map((v) => v.toString())
+						: tempSelection
+						? [tempSelection.toString()]
+						: [];
+					const areSame =
+						currentStrings.length === latestValues.length &&
+						latestValues.every((v) => currentStrings.includes(v));
+					if (!areSame) {
+						setTempSelection(latestValues);
+					}
+				}
+			},
+			onError: (error: any) => {
+				if (error) {
+					let message = SOMETHING_WENT_WRONG;
+					if (error?.message) {
+						message = error?.message;
+					} else {
+						message =
+							'Please make sure configuration is valid and you have required setup and permissions';
+					}
+					setErrorMessage(message);
+				}
+			},
+		},
+	);
+
+	const handleChange = useCallback(
+		(inputValue: string | string[]): void => {
+			const value = variableData.multiSelect && !inputValue ? [] : inputValue;
+
+			if (
+				value === variableData.selectedValue ||
+				(Array.isArray(value) &&
+					Array.isArray(variableData.selectedValue) &&
+					areArraysEqual(value, variableData.selectedValue))
+			) {
+				return;
+			}
+
+			if (variableData.name) {
+				if (
+					value === ALL_SELECT_VALUE ||
+					(Array.isArray(value) && value.includes(ALL_SELECT_VALUE))
+				) {
+					// For ALL selection in dynamic variables, pass null to avoid storing values
+					// The parent component will handle this appropriately
+					onValueUpdate(variableData.name, variableData.id, null, true);
+				} else {
+					// Build union of available options shown in dropdown (normalized + related)
+					const allAvailableOptionStrings = [
+						...new Set([
+							...optionsData.map((v) => v.toString()),
+							...relatedValues.map((v) => v.toString()),
+						]),
+					];
+
+					const haveCustomValuesSelected =
+						Array.isArray(value) &&
+						!value.every((v) => allAvailableOptionStrings.includes(v.toString()));
+
+					onValueUpdate(
+						variableData.name,
+						variableData.id,
+						value,
+						allAvailableOptionStrings.every((v) => value.includes(v.toString())),
+						haveCustomValuesSelected,
+					);
+				}
+			}
+		},
+		[variableData, onValueUpdate, optionsData, relatedValues],
+	);
+
+	useEffect(() => {
+		if (
+			variableData.dynamicVariablesSource &&
+			variableData.dynamicVariablesAttribute
+		) {
+			refetch();
+		}
+	}, [
+		refetch,
+		variableData.dynamicVariablesSource,
+		variableData.dynamicVariablesAttribute,
+		debouncedApiSearchText,
+	]);
+
+	// Build a memoized list of all currently available option strings (normalized + related)
+	const allAvailableOptionStrings = useMemo(
+		() => [
+			...new Set([
+				...optionsData.map((v) => v.toString()),
+				...relatedValues.map((v) => v.toString()),
+			]),
+		],
+		[optionsData, relatedValues],
+	);
+
+	const handleSearch = useCallback(
+		(text: string) => {
+			if (isComplete) {
+				if (!text) {
+					setFilteredOptionsData(optionsData);
+					setRelatedValues(originalRelatedValues);
+					return;
+				}
+
+				const localFilteredOptionsData: (string | number | boolean)[] = [];
+				optionsData.forEach((option) => {
+					if (option.toString().toLowerCase().includes(text.toLowerCase())) {
+						localFilteredOptionsData.push(option);
+					}
+				});
+				setFilteredOptionsData(localFilteredOptionsData);
+				setRelatedValues(
+					originalRelatedValues.filter((value) =>
+						value.toLowerCase().includes(text.toLowerCase()),
+					),
+				);
+			} else {
+				setApiSearchText(text);
+			}
+		},
+		[isComplete, optionsData, originalRelatedValues],
+	);
+
+	const { selectedValue } = variableData;
+	const selectedValueStringified = useMemo(
+		() => getSelectValue(selectedValue, variableData),
+		[selectedValue, variableData],
+	);
+
+	const enableSelectAll = variableData.multiSelect && variableData.showALLOption;
+
+	const selectValue =
+		variableData.allSelected && enableSelectAll
+			? ALL_SELECT_VALUE
+			: selectedValueStringified;
+
+	// Add a handler for tracking temporary selection changes
+	const handleTempChange = useCallback(
+		(inputValue: string | string[]): void => {
+			// Store the selection in temporary state while dropdown is open
+			const value = variableData.multiSelect && !inputValue ? [] : inputValue;
+			const sanitizedValue = uniqueValues(value);
+			setTempSelection(sanitizedValue);
+		},
+		[variableData.multiSelect],
+	);
+
+	// Handle dropdown visibility changes
+	const handleDropdownVisibleChange = (visible: boolean): void => {
+		// Update dropdown open state for auto-checking
+		setIsDropdownOpen(visible);
+
+		// Initialize temp selection when opening dropdown
+		if (visible) {
+			if (isUndefined(tempSelection) && selectValue === ALL_SELECT_VALUE) {
+				// When ALL is selected, set selection to exactly the latest available values
+				const latestAll = [...allAvailableOptionStrings];
+				setTempSelection(latestAll);
+			} else {
+				setTempSelection(getSelectValue(variableData.selectedValue, variableData));
+			}
+		}
+		// Apply changes when closing dropdown
+		else if (!visible && tempSelection !== undefined) {
+			// Only call handleChange if there's actually a change in the selection
+			const currentValue = variableData.selectedValue;
+
+			// Helper function to check if arrays have the same elements regardless of order
+			const areArraysEqualIgnoreOrder = (a: any[], b: any[]): boolean => {
+				if (a.length !== b.length) return false;
+				const sortedA = [...a].sort();
+				const sortedB = [...b].sort();
+				return areArraysEqual(sortedA, sortedB);
+			};
+
+			// If ALL was selected before and remains ALL after, skip updating
+			const wasAllSelected = enableSelectAll && variableData.allSelected;
+			const isAllSelectedAfter =
+				enableSelectAll &&
+				Array.isArray(tempSelection) &&
+				tempSelection.length === allAvailableOptionStrings.length &&
+				allAvailableOptionStrings.every((v) => tempSelection.includes(v));
+
+			if (wasAllSelected && isAllSelectedAfter) {
+				setTempSelection(undefined);
+				return;
+			}
+
+			const hasChanged =
+				tempSelection !== currentValue &&
+				!(
+					Array.isArray(tempSelection) &&
+					Array.isArray(currentValue) &&
+					areArraysEqualIgnoreOrder(tempSelection, currentValue)
+				);
+
+			if (hasChanged) {
+				handleChange(tempSelection);
+			}
+			setTempSelection(undefined);
+		}
+
+		// Always reset filtered data when dropdown closes, regardless of tempSelection state
+		if (!visible) {
+			setFilteredOptionsData(optionsData);
+			setRelatedValues(originalRelatedValues);
+			setApiSearchText('');
+		}
+	};
+
+	useEffect(
+		() => (): void => {
+			// Cleanup on unmount
+			setTempSelection(undefined);
+			setFilteredOptionsData([]);
+			setRelatedValues([]);
+			setApiSearchText('');
+		},
+		[],
+	);
+
+	// eslint-disable-next-line sonarjs/cognitive-complexity
+	const finalSelectedValues = useMemo(() => {
+		if (variableData.multiSelect) {
+			let value = tempSelection || selectedValue;
+			if (isEmpty(value)) {
+				if (variableData.showALLOption) {
+					if (variableData.defaultValue) {
+						value = variableData.defaultValue;
+					} else if (variableData.allSelected) {
+						// If ALL is selected but no stored values, derive from available options
+						// This handles the case where we don't store values in localStorage for ALL
+						value = allAvailableOptionStrings;
+					} else {
+						value = optionsData;
+					}
+				} else if (variableData.defaultValue) {
+					value = variableData.defaultValue;
+				} else {
+					value = optionsData?.[0];
+				}
+			}
+
+			return value;
+		}
+		if (isEmpty(selectedValue)) {
+			if (variableData.defaultValue) {
+				return variableData.defaultValue;
+			}
+			return optionsData[0]?.toString();
+		}
+
+		return selectedValue;
+	}, [
+		variableData.multiSelect,
+		variableData.showALLOption,
+		variableData.defaultValue,
+		variableData.allSelected,
+		selectedValue,
+		tempSelection,
+		optionsData,
+		allAvailableOptionStrings,
+	]);
+
+	useEffect(() => {
+		if (
+			(variableData.multiSelect && !(tempSelection || selectValue)) ||
+			isEmpty(selectValue)
+		) {
+			handleChange(finalSelectedValues as string[] | string);
+		}
+	}, [
+		finalSelectedValues,
+		handleChange,
+		selectValue,
+		tempSelection,
+		variableData.multiSelect,
+	]);
+
+	return (
+		<div className="variable-item">
+			<Typography.Text className="variable-name" ellipsis>
+				${variableData.name}
+				{variableData.description && (
+					<Tooltip title={variableData.description}>
+						<InfoCircleOutlined className="info-icon" />
+					</Tooltip>
+				)}
+			</Typography.Text>
+			<div className="variable-value">
+				{variableData.multiSelect ? (
+					<CustomMultiSelect
+						key={variableData.id}
+						options={getOptionsForDynamicVariable(
+							filteredOptionsData || [],
+							relatedValues || [],
+						)}
+						defaultValue={variableData.defaultValue}
+						onChange={handleTempChange}
+						bordered={false}
+						placeholder="Select value"
+						placement="bottomLeft"
+						style={SelectItemStyle}
+						loading={isLoading}
+						showSearch
+						data-testid="variable-select"
+						className="variable-select"
+						popupClassName="dropdown-styles"
+						maxTagCount={2}
+						getPopupContainer={popupContainer}
+						value={
+							(tempSelection || selectValue) === ALL_SELECT_VALUE
+								? 'ALL'
+								: tempSelection || selectValue
+						}
+						onDropdownVisibleChange={handleDropdownVisibleChange}
+						errorMessage={errorMessage}
+						// eslint-disable-next-line react/no-unstable-nested-components
+						maxTagPlaceholder={(omittedValues): JSX.Element => {
+							const maxDisplayValues = 10;
+							const valuesToShow = omittedValues.slice(0, maxDisplayValues);
+							const hasMore = omittedValues.length > maxDisplayValues;
+							const tooltipText =
+								valuesToShow.map(({ value }) => value).join(', ') +
+								(hasMore ? ` + ${omittedValues.length - maxDisplayValues} more` : '');
+
+							return (
+								<Tooltip title={tooltipText}>
+									<span>+ {omittedValues.length} </span>
+								</Tooltip>
+							);
+						}}
+						onClear={(): void => {
+							handleChange([]);
+						}}
+						enableAllSelection={enableSelectAll}
+						maxTagTextLength={30}
+						onSearch={handleSearch}
+						onRetry={(): void => {
+							setErrorMessage(null);
+							refetch();
+						}}
+						showIncompleteDataMessage={!isComplete && filteredOptionsData.length > 0}
+					/>
+				) : (
+					<CustomSelect
+						key={variableData.id}
+						onChange={handleChange}
+						bordered={false}
+						placeholder="Select value"
+						style={SelectItemStyle}
+						loading={isLoading}
+						showSearch
+						data-testid="variable-select"
+						className="variable-select"
+						popupClassName="dropdown-styles"
+						getPopupContainer={popupContainer}
+						options={getOptionsForDynamicVariable(
+							filteredOptionsData || [],
+							relatedValues || [],
+						)}
+						value={selectValue}
+						defaultValue={variableData.defaultValue}
+						errorMessage={errorMessage}
+						onSearch={handleSearch}
+						onRetry={(): void => {
+							setErrorMessage(null);
+							refetch();
+						}}
+						showIncompleteDataMessage={!isComplete && filteredOptionsData.length > 0}
+					/>
+				)}
+			</div>
+		</div>
+	);
+}
+
+export default DynamicVariableSelection;

frontend/src/container/NewDashboard/DashboardVariablesSelection/VariableItem.test.tsx

@@ -167,7 +167,7 @@ describe('VariableItem', () => {
 			</MockQueryClientProvider>,
 		);
 
-		expect(screen.getByTitle('ALL')).toBeInTheDocument();
+		expect(screen.getByText('ALL')).toBeInTheDocument();
 	});
 
 	test('calls useEffect when the component mounts', () => {

frontend/src/container/NewDashboard/DashboardVariablesSelection/VariableItem.tsx

@@ -8,23 +8,14 @@ import './DashboardVariableSelection.styles.scss';
 
 import { orange } from '@ant-design/colors';
 import { InfoCircleOutlined, WarningOutlined } from '@ant-design/icons';
-import {
-	Checkbox,
-	Input,
-	Popover,
-	Select,
-	Tag,
-	Tooltip,
-	Typography,
-} from 'antd';
-import { CheckboxChangeEvent } from 'antd/es/checkbox';
+import { Input, Popover, Tooltip, Typography } from 'antd';
 import dashboardVariablesQuery from 'api/dashboard/variables/dashboardVariablesQuery';
+import { CustomMultiSelect, CustomSelect } from 'components/NewSelect';
 import { REACT_QUERY_KEY } from 'constants/reactQueryKeys';
 import { commaValuesParser } from 'lib/dashbaordVariables/customCommaValuesParser';
 import sortValues from 'lib/dashbaordVariables/sortVariableValues';
-import { debounce, isArray, isString } from 'lodash-es';
-import map from 'lodash-es/map';
-import { ChangeEvent, memo, useEffect, useMemo, useState } from 'react';
+import { debounce, isArray, isEmpty, isString } from 'lodash-es';
+import { memo, useCallback, useEffect, useMemo, useState } from 'react';
 import { useQuery } from 'react-query';
 import { useSelector } from 'react-redux';
 import { AppState } from 'store/reducers';
@@ -33,17 +24,10 @@ import { VariableResponseProps } from 'types/api/dashboard/variables/query';
 import { GlobalReducer } from 'types/reducer/globalTime';
 import { popupContainer } from 'utils/selectPopupContainer';
 
-import { variablePropsToPayloadVariables } from '../utils';
+import { ALL_SELECT_VALUE, variablePropsToPayloadVariables } from '../utils';
 import { SelectItemStyle } from './styles';
 import { areArraysEqual, checkAPIInvocation, IDependencyData } from './util';
 
-const ALL_SELECT_VALUE = '__ALL__';
-
-enum ToggleTagValue {
-	Only = 'Only',
-	All = 'All',
-}
-
 interface VariableItemProps {
 	variableData: IDashboardVariable;
 	existingVariables: Record<string, IDashboardVariable>;
@@ -58,7 +42,7 @@ interface VariableItemProps {
 	dependencyData: IDependencyData | null;
 }
 
-const getSelectValue = (
+export const getSelectValue = (
 	selectedValue: IDashboardVariable['selectedValue'],
 	variableData: IDashboardVariable,
 ): string | string[] | undefined => {
@@ -83,6 +67,9 @@ function VariableItem({
 	const [optionsData, setOptionsData] = useState<(string | number | boolean)[]>(
 		[],
 	);
+	const [tempSelection, setTempSelection] = useState<
+		string | string[] | undefined
+	>(undefined);
 
 	const { maxTime, minTime } = useSelector<AppState, GlobalReducer>(
 		(state) => state.globalTime,
@@ -139,6 +126,7 @@ function VariableItem({
 								valueNotInList = true;
 							}
 						}
+
 						// variablesData.allSelected is added for the case where on change of options we need to update the
 						// local storage
 						if (
@@ -146,28 +134,32 @@ function VariableItem({
 							variableData.name &&
 							(validVariableUpdate() || valueNotInList || variableData.allSelected)
 						) {
-							let value = variableData.selectedValue;
-							let allSelected = false;
-							// The default value for multi-select is ALL and first value for
-							// single select
-							if (valueNotInList) {
-								if (variableData.multiSelect) {
-									value = newOptionsData;
-									allSelected = true;
-								} else {
-									[value] = newOptionsData;
-								}
-							} else if (variableData.multiSelect) {
-								const { selectedValue } = variableData;
-								allSelected =
-									newOptionsData.length > 0 &&
-									Array.isArray(selectedValue) &&
-									selectedValue.length === newOptionsData.length &&
-									newOptionsData.every((option) => selectedValue.includes(option));
-							}
+							if (
+								variableData.allSelected &&
+								variableData.multiSelect &&
+								variableData.showALLOption
+							) {
+								onValueUpdate(variableData.name, variableData.id, newOptionsData, true);
 
-							if (variableData && variableData?.name && variableData?.id) {
-								onValueUpdate(variableData.name, variableData.id, value, allSelected);
+								// Update tempSelection to maintain ALL state when dropdown is open
+								if (tempSelection !== undefined) {
+									setTempSelection(newOptionsData.map((option) => option.toString()));
+								}
+							} else {
+								const value = variableData.selectedValue;
+								let allSelected = false;
+
+								if (variableData.multiSelect) {
+									const { selectedValue } = variableData;
+									allSelected =
+										newOptionsData.length > 0 &&
+										Array.isArray(selectedValue) &&
+										newOptionsData.every((option) => selectedValue.includes(option));
+								}
+
+								if (variableData && variableData?.name && variableData?.id) {
+									onValueUpdate(variableData.name, variableData.id, value, allSelected);
+								}
 							}
 						}
 
@@ -191,7 +183,7 @@ function VariableItem({
 		}
 	};
 
-	const { isLoading } = useQuery(
+	const { isLoading, refetch } = useQuery(
 		[
 			REACT_QUERY_KEY.DASHBOARD_BY_ID,
 			variableData.name || '',
@@ -242,26 +234,62 @@ function VariableItem({
 		},
 	);
 
-	const handleChange = (inputValue: string | string[]): void => {
-		const value = variableData.multiSelect && !inputValue ? [] : inputValue;
+	const handleChange = useCallback(
+		(inputValue: string | string[]): void => {
+			const value = variableData.multiSelect && !inputValue ? [] : inputValue;
 
-		if (
-			value === variableData.selectedValue ||
-			(Array.isArray(value) &&
-				Array.isArray(variableData.selectedValue) &&
-				areArraysEqual(value, variableData.selectedValue))
-		) {
-			return;
-		}
-		if (variableData.name) {
 			if (
-				value === ALL_SELECT_VALUE ||
-				(Array.isArray(value) && value.includes(ALL_SELECT_VALUE))
+				value === variableData.selectedValue ||
+				(Array.isArray(value) &&
+					Array.isArray(variableData.selectedValue) &&
+					areArraysEqual(value, variableData.selectedValue))
 			) {
-				onValueUpdate(variableData.name, variableData.id, optionsData, true);
-			} else {
-				onValueUpdate(variableData.name, variableData.id, value, false);
+				return;
 			}
+			if (variableData.name) {
+				// Check if ALL is effectively selected by comparing with available options
+				const isAllSelected =
+					Array.isArray(value) &&
+					value.length > 0 &&
+					optionsData.every((option) => value.includes(option.toString()));
+
+				if (isAllSelected && variableData.showALLOption) {
+					// For ALL selection, pass null to avoid storing values
+					onValueUpdate(variableData.name, variableData.id, optionsData, true);
+				} else {
+					onValueUpdate(variableData.name, variableData.id, value, false);
+				}
+			}
+		},
+		[
+			variableData.multiSelect,
+			variableData.selectedValue,
+			variableData.name,
+			variableData.id,
+			onValueUpdate,
+			optionsData,
+			variableData.showALLOption,
+		],
+	);
+
+	// Add a handler for tracking temporary selection changes
+	const handleTempChange = (inputValue: string | string[]): void => {
+		// Store the selection in temporary state while dropdown is open
+		const value = variableData.multiSelect && !inputValue ? [] : inputValue;
+		setTempSelection(value);
+	};
+
+	// Handle dropdown visibility changes
+	const handleDropdownVisibleChange = (visible: boolean): void => {
+		// Initialize temp selection when opening dropdown
+		if (visible) {
+			setTempSelection(getSelectValue(variableData.selectedValue, variableData));
+		}
+		// Apply changes when closing dropdown
+		else if (!visible && tempSelection !== undefined) {
+			// Call handleChange with the temporarily stored selection
+			handleChange(tempSelection);
+			setTempSelection(undefined);
 		}
 	};
 
@@ -281,10 +309,58 @@ function VariableItem({
 			? 'ALL'
 			: selectedValueStringified;
 
-	const mode: 'multiple' | undefined =
-		variableData.multiSelect && !variableData.allSelected
-			? 'multiple'
-			: undefined;
+	// Apply default value on first render if no selection exists
+	// eslint-disable-next-line sonarjs/cognitive-complexity
+	const finalSelectedValues = useMemo(() => {
+		if (variableData.multiSelect) {
+			let value = tempSelection || selectedValue;
+			if (isEmpty(value)) {
+				if (variableData.showALLOption) {
+					if (variableData.defaultValue) {
+						value = variableData.defaultValue;
+					} else {
+						value = optionsData;
+					}
+				} else if (variableData.defaultValue) {
+					value = variableData.defaultValue;
+				} else {
+					value = optionsData?.[0];
+				}
+			}
+
+			return value;
+		}
+		if (isEmpty(selectedValue)) {
+			if (variableData.defaultValue) {
+				return variableData.defaultValue;
+			}
+			return optionsData[0]?.toString();
+		}
+
+		return selectedValue;
+	}, [
+		variableData.multiSelect,
+		variableData.showALLOption,
+		variableData.defaultValue,
+		selectedValue,
+		tempSelection,
+		optionsData,
+	]);
+
+	useEffect(() => {
+		if (
+			(variableData.multiSelect && !(tempSelection || selectValue)) ||
+			isEmpty(selectValue)
+		) {
+			handleChange(finalSelectedValues as string[] | string);
+		}
+	}, [
+		finalSelectedValues,
+		handleChange,
+		selectValue,
+		tempSelection,
+		variableData.multiSelect,
+	]);
 
 	useEffect(() => {
 		// Fetch options for CUSTOM Type
@@ -294,113 +370,6 @@ function VariableItem({
 		// eslint-disable-next-line react-hooks/exhaustive-deps
 	}, [variableData.type, variableData.customValue]);
 
-	const checkAll = (e: MouseEvent): void => {
-		e.stopPropagation();
-		e.preventDefault();
-		const isChecked =
-			variableData.allSelected || selectValue?.includes(ALL_SELECT_VALUE);
-
-		if (isChecked) {
-			handleChange([]);
-		} else {
-			handleChange(ALL_SELECT_VALUE);
-		}
-	};
-
-	const handleOptionSelect = (
-		e: CheckboxChangeEvent,
-		option: string | number | boolean,
-	): void => {
-		const newSelectedValue = Array.isArray(selectedValue)
-			? ((selectedValue.filter(
-					(val) => val.toString() !== option.toString(),
-			  ) as unknown) as string[])
-			: [];
-
-		if (
-			!e.target.checked &&
-			Array.isArray(selectedValueStringified) &&
-			selectedValueStringified.includes(option.toString())
-		) {
-			if (newSelectedValue.length === 1) {
-				handleChange(newSelectedValue[0].toString());
-				return;
-			}
-			handleChange(newSelectedValue);
-		} else if (!e.target.checked && selectedValue === option.toString()) {
-			handleChange(ALL_SELECT_VALUE);
-		} else if (newSelectedValue.length === optionsData.length - 1) {
-			handleChange(ALL_SELECT_VALUE);
-		}
-	};
-
-	const [optionState, setOptionState] = useState({
-		tag: '',
-		visible: false,
-	});
-
-	function currentToggleTagValue({
-		option,
-	}: {
-		option: string;
-	}): ToggleTagValue {
-		if (
-			option.toString() === selectValue ||
-			(Array.isArray(selectValue) &&
-				selectValue?.includes(option.toString()) &&
-				selectValue.length === 1)
-		) {
-			return ToggleTagValue.All;
-		}
-		return ToggleTagValue.Only;
-	}
-
-	function handleToggle(e: ChangeEvent, option: string): void {
-		e.stopPropagation();
-		const mode = currentToggleTagValue({ option: option as string });
-		const isChecked =
-			variableData.allSelected ||
-			option.toString() === selectValue ||
-			(Array.isArray(selectValue) && selectValue?.includes(option.toString()));
-
-		if (isChecked) {
-			if (mode === ToggleTagValue.Only && variableData.multiSelect) {
-				handleChange([option.toString()]);
-			} else if (!variableData.multiSelect) {
-				handleChange(option.toString());
-			} else {
-				handleChange(ALL_SELECT_VALUE);
-			}
-		} else {
-			handleChange(option.toString());
-		}
-	}
-
-	function retProps(
-		option: string,
-	): {
-		onMouseOver: () => void;
-		onMouseOut: () => void;
-	} {
-		return {
-			onMouseOver: (): void =>
-				setOptionState({
-					tag: option.toString(),
-					visible: true,
-				}),
-			onMouseOut: (): void =>
-				setOptionState({
-					tag: option.toString(),
-					visible: false,
-				}),
-		};
-	}
-
-	const ensureValidOption = (option: string): boolean =>
-		!(
-			currentToggleTagValue({ option }) === ToggleTagValue.All && !enableSelectAll
-		);
-
 	return (
 		<div className="variable-item">
 			<Typography.Text className="variable-name" ellipsis>
@@ -428,105 +397,90 @@ function VariableItem({
 						}}
 					/>
 				) : (
-					!errorMessage &&
-					optionsData && (
-						<Select
+					optionsData &&
+					(variableData.multiSelect ? (
+						<CustomMultiSelect
 							key={
 								selectValue && Array.isArray(selectValue)
 									? selectValue.join(' ')
 									: selectValue || variableData.id
 							}
-							defaultValue={selectValue}
-							onChange={handleChange}
+							options={optionsData.map((option) => ({
+								label: option.toString(),
+								value: option.toString(),
+							}))}
+							defaultValue={variableData.defaultValue || selectValue}
+							onChange={handleTempChange}
 							bordered={false}
 							placeholder="Select value"
 							placement="bottomLeft"
-							mode={mode}
 							style={SelectItemStyle}
 							loading={isLoading}
 							showSearch
 							data-testid="variable-select"
 							className="variable-select"
 							popupClassName="dropdown-styles"
-							maxTagCount={4}
+							maxTagCount={2}
 							getPopupContainer={popupContainer}
+							value={tempSelection || selectValue}
+							onDropdownVisibleChange={handleDropdownVisibleChange}
+							errorMessage={errorMessage}
 							// eslint-disable-next-line react/no-unstable-nested-components
-							tagRender={(props): JSX.Element => (
-								<Tag closable onClose={props.onClose}>
-									{props.value}
-								</Tag>
-							)}
-							// eslint-disable-next-line react/no-unstable-nested-components
-							maxTagPlaceholder={(omittedValues): JSX.Element => (
-								<Tooltip title={omittedValues.map(({ value }) => value).join(', ')}>
-									<span>+ {omittedValues.length} </span>
-								</Tooltip>
-							)}
-							allowClear={selectValue !== ALL_SELECT_VALUE && selectValue !== 'ALL'}
-						>
-							{enableSelectAll && (
-								<Select.Option data-testid="option-ALL" value={ALL_SELECT_VALUE}>
-									<div className="all-label" onClick={(e): void => checkAll(e as any)}>
-										<Checkbox checked={variableData.allSelected} />
-										ALL
-									</div>
-								</Select.Option>
-							)}
-							{map(optionsData, (option) => (
-								<Select.Option
-									data-testid={`option-${option}`}
-									key={option.toString()}
-									value={option}
-								>
-									<div
-										className={variableData.multiSelect ? 'dropdown-checkbox-label' : ''}
-									>
-										{variableData.multiSelect && (
-											<Checkbox
-												onChange={(e): void => {
-													e.stopPropagation();
-													e.preventDefault();
-													handleOptionSelect(e, option);
-												}}
-												checked={
-													variableData.allSelected ||
-													option.toString() === selectValue ||
-													(Array.isArray(selectValue) &&
-														selectValue?.includes(option.toString()))
-												}
-											/>
-										)}
-										<div
-											className="dropdown-value"
-											{...retProps(option as string)}
-											onClick={(e): void => handleToggle(e as any, option as string)}
-										>
-											<Typography.Text
-												ellipsis={{
-													tooltip: {
-														placement: variableData.multiSelect ? 'top' : 'right',
-														autoAdjustOverflow: true,
-													},
-												}}
-												className="option-text"
-											>
-												{option.toString()}
-											</Typography.Text>
+							maxTagPlaceholder={(omittedValues): JSX.Element => {
+								const maxDisplayValues = 10;
+								const valuesToShow = omittedValues.slice(0, maxDisplayValues);
+								const hasMore = omittedValues.length > maxDisplayValues;
+								const tooltipText =
+									valuesToShow.map(({ value }) => value).join(', ') +
+									(hasMore ? ` + ${omittedValues.length - maxDisplayValues} more` : '');
 
-											{variableData.multiSelect &&
-												optionState.tag === option.toString() &&
-												optionState.visible &&
-												ensureValidOption(option as string) && (
-													<Typography.Text className="toggle-tag-label">
-														{currentToggleTagValue({ option: option as string })}
-													</Typography.Text>
-												)}
-										</div>
-									</div>
-								</Select.Option>
-							))}
-						</Select>
-					)
+								return (
+									<Tooltip title={tooltipText}>
+										<span>+ {omittedValues.length} </span>
+									</Tooltip>
+								);
+							}}
+							onClear={(): void => {
+								handleChange([]);
+							}}
+							enableAllSelection={enableSelectAll}
+							maxTagTextLength={30}
+							allowClear={selectValue !== ALL_SELECT_VALUE && selectValue !== 'ALL'}
+							onRetry={(): void => {
+								setErrorMessage(null);
+								refetch();
+							}}
+						/>
+					) : (
+						<CustomSelect
+							key={
+								selectValue && Array.isArray(selectValue)
+									? selectValue.join(' ')
+									: selectValue || variableData.id
+							}
+							defaultValue={variableData.defaultValue || selectValue}
+							onChange={handleChange}
+							bordered={false}
+							placeholder="Select value"
+							style={SelectItemStyle}
+							loading={isLoading}
+							showSearch
+							data-testid="variable-select"
+							className="variable-select"
+							popupClassName="dropdown-styles"
+							getPopupContainer={popupContainer}
+							options={optionsData.map((option) => ({
+								label: option.toString(),
+								value: option.toString(),
+							}))}
+							value={selectValue}
+							errorMessage={errorMessage}
+							onRetry={(): void => {
+								setErrorMessage(null);
+								refetch();
+							}}
+						/>
+					))
 				)}
 				{variableData.type !== 'TEXTBOX' && errorMessage && (
 					<span style={{ margin: '0 0.5rem' }}>

frontend/src/container/NewDashboard/DashboardVariablesSelection/__test__/DynamicVariableSelection.test.tsx

@@ -0,0 +1,274 @@
+/* eslint-disable react/jsx-props-no-spreading */
+/* eslint-disable sonarjs/no-duplicate-string */
+import { fireEvent, render, screen } from '@testing-library/react';
+import * as ReactQuery from 'react-query';
+import * as ReactRedux from 'react-redux';
+import { IDashboardVariable } from 'types/api/dashboard/getAll';
+
+import DynamicVariableSelection from '../DynamicVariableSelection';
+
+// Don't mock the components - use real ones
+
+// Mock for useQuery
+const mockQueryResult = {
+	data: undefined,
+	error: null,
+	isError: false,
+	isIdle: false,
+	isLoading: false,
+	isPreviousData: false,
+	isSuccess: true,
+	status: 'success',
+	isFetched: true,
+	isFetchingNextPage: false,
+	isFetchingPreviousPage: false,
+	isPlaceholderData: false,
+	isPaused: false,
+	isRefetchError: false,
+	isRefetching: false,
+	isStale: false,
+	isLoadingError: false,
+	isFetching: false,
+	isFetchedAfterMount: true,
+	dataUpdatedAt: 0,
+	errorUpdatedAt: 0,
+	failureCount: 0,
+	refetch: jest.fn(),
+	remove: jest.fn(),
+	fetchNextPage: jest.fn(),
+	fetchPreviousPage: jest.fn(),
+	hasNextPage: false,
+	hasPreviousPage: false,
+	// eslint-disable-next-line @typescript-eslint/no-explicit-any
+} as any;
+
+// Sample data for testing
+const mockApiResponse = {
+	payload: {
+		normalizedValues: ['frontend', 'backend', 'database'],
+		complete: true,
+	},
+	statusCode: 200,
+};
+
+// Mock scrollIntoView since it's not available in JSDOM
+window.HTMLElement.prototype.scrollIntoView = jest.fn();
+
+describe('DynamicVariableSelection Component', () => {
+	const mockOnValueUpdate = jest.fn();
+
+	const mockDynamicVariableData: IDashboardVariable = {
+		id: 'var1',
+		name: 'service',
+		type: 'DYNAMIC',
+		dynamicVariablesAttribute: 'service.name',
+		dynamicVariablesSource: 'Traces',
+		selectedValue: 'frontend',
+		multiSelect: false,
+		showALLOption: false,
+		allSelected: false,
+		description: '',
+		sort: 'DISABLED',
+	};
+
+	const mockMultiSelectDynamicVariableData: IDashboardVariable = {
+		...mockDynamicVariableData,
+		id: 'var2',
+		name: 'services',
+		multiSelect: true,
+		selectedValue: ['frontend', 'backend'],
+		showALLOption: true,
+	};
+
+	const mockExistingVariables: Record<string, IDashboardVariable> = {
+		var1: mockDynamicVariableData,
+		var2: mockMultiSelectDynamicVariableData,
+	};
+
+	beforeEach(() => {
+		jest.clearAllMocks();
+		mockOnValueUpdate.mockClear();
+
+		// Mock useSelector
+		const useSelectorSpy = jest.spyOn(ReactRedux, 'useSelector');
+		useSelectorSpy.mockReturnValue({
+			minTime: '2023-01-01T00:00:00Z',
+			maxTime: '2023-01-02T00:00:00Z',
+		});
+
+		// Mock useQuery with success state
+		const useQuerySpy = jest.spyOn(ReactQuery, 'useQuery');
+		useQuerySpy.mockReturnValue({
+			...mockQueryResult,
+			data: mockApiResponse,
+			isLoading: false,
+			error: null,
+		});
+	});
+
+	it('renders with single select variable correctly', () => {
+		render(
+			<DynamicVariableSelection
+				variableData={mockDynamicVariableData}
+				existingVariables={mockExistingVariables}
+				onValueUpdate={mockOnValueUpdate}
+			/>,
+		);
+
+		// Verify component renders correctly
+		expect(
+			screen.getByText(`$${mockDynamicVariableData.name}`),
+		).toBeInTheDocument();
+
+		// Verify the selected value is displayed
+		const selectedItem = screen.getByRole('combobox');
+		expect(selectedItem).toBeInTheDocument();
+
+		// CustomSelect doesn't use the 'mode' attribute for single select
+		expect(selectedItem).not.toHaveAttribute('mode');
+	});
+
+	it('renders with multi select variable correctly', () => {
+		// First set up allSelected to true to properly test the ALL display
+		const multiSelectWithAllSelected = {
+			...mockMultiSelectDynamicVariableData,
+			allSelected: true,
+		};
+
+		render(
+			<DynamicVariableSelection
+				variableData={multiSelectWithAllSelected}
+				existingVariables={mockExistingVariables}
+				onValueUpdate={mockOnValueUpdate}
+			/>,
+		);
+
+		// Verify variable name is rendered
+		expect(
+			screen.getByText(`$${multiSelectWithAllSelected.name}`),
+		).toBeInTheDocument();
+
+		// In ALL selected mode, there should be an "ALL" text element
+		expect(screen.getByText('ALL')).toBeInTheDocument();
+	});
+
+	it('shows loading state correctly', () => {
+		// Mock loading state
+		jest.spyOn(ReactQuery, 'useQuery').mockReturnValue({
+			...mockQueryResult,
+			data: null,
+			isLoading: true,
+			isFetching: true,
+			isSuccess: false,
+			status: 'loading',
+		});
+
+		render(
+			<DynamicVariableSelection
+				variableData={mockDynamicVariableData}
+				existingVariables={mockExistingVariables}
+				onValueUpdate={mockOnValueUpdate}
+			/>,
+		);
+
+		// Verify component renders in loading state
+		expect(
+			screen.getByText(`$${mockDynamicVariableData.name}`),
+		).toBeInTheDocument();
+
+		// Open dropdown to see loading text
+		const selectElement = screen.getByRole('combobox');
+		fireEvent.mouseDown(selectElement);
+
+		// The loading text should appear in the dropdown
+		expect(screen.getByText('We are updating the values...')).toBeInTheDocument();
+	});
+
+	it('handles error state correctly', () => {
+		const errorMessage = 'Failed to fetch data';
+
+		// Mock error state
+		jest.spyOn(ReactQuery, 'useQuery').mockReturnValue({
+			...mockQueryResult,
+			data: null,
+			isLoading: false,
+			isSuccess: false,
+			isError: true,
+			status: 'error',
+			error: { message: errorMessage },
+		});
+
+		render(
+			<DynamicVariableSelection
+				variableData={mockDynamicVariableData}
+				existingVariables={mockExistingVariables}
+				onValueUpdate={mockOnValueUpdate}
+			/>,
+		);
+
+		// Verify the component renders
+		expect(
+			screen.getByText(`$${mockDynamicVariableData.name}`),
+		).toBeInTheDocument();
+
+		// For error states, we should check that error handling is in place
+		// Without opening the dropdown as the error message might be handled differently
+		expect(ReactQuery.useQuery).toHaveBeenCalled();
+		// We don't need to check refetch as it might be called during component initialization
+	});
+
+	it('makes API call to fetch variable values', () => {
+		render(
+			<DynamicVariableSelection
+				variableData={mockDynamicVariableData}
+				existingVariables={mockExistingVariables}
+				onValueUpdate={mockOnValueUpdate}
+			/>,
+		);
+
+		// Verify the useQuery hook was called with expected parameters
+		expect(ReactQuery.useQuery).toHaveBeenCalledWith(
+			[
+				'DASHBOARD_BY_ID',
+				mockDynamicVariableData.name,
+				'service:"frontend"|services:["frontend","backend"]', // The actual dynamicVariablesKey
+				'2023-01-01T00:00:00Z', // minTime from useSelector mock
+				'2023-01-02T00:00:00Z', // maxTime from useSelector mock
+			],
+			expect.objectContaining({
+				enabled: true, // Type is 'DYNAMIC'
+				queryFn: expect.any(Function),
+				onSuccess: expect.any(Function),
+				onError: expect.any(Function),
+			}),
+		);
+	});
+
+	it('has the correct selected value', () => {
+		// Use a different variable configuration to test different behavior
+		const customVariable = {
+			...mockDynamicVariableData,
+			id: 'custom1',
+			name: 'customService',
+			selectedValue: 'backend',
+		};
+
+		render(
+			<DynamicVariableSelection
+				variableData={customVariable}
+				existingVariables={{ ...mockExistingVariables, custom1: customVariable }}
+				onValueUpdate={mockOnValueUpdate}
+			/>,
+		);
+
+		// Verify the component correctly displays the selected value
+		expect(screen.getByText(`$${customVariable.name}`)).toBeInTheDocument();
+
+		// Find the selection item in the component using data-testid
+		const selectElement = screen.getByTestId('variable-select');
+		expect(selectElement).toBeInTheDocument();
+
+		// Check that the selected value is displayed in the select element
+		expect(selectElement).toHaveTextContent('backend');
+	});
+});

frontend/src/container/NewDashboard/DashboardVariablesSelection/util.ts

@@ -1,3 +1,4 @@
+import { OptionData } from 'components/NewSelect/types';
 import { isEmpty, isNull } from 'lodash-es';
 import { Dashboard, IDashboardVariable } from 'types/api/dashboard/getAll';
 
@@ -294,3 +295,74 @@ export const checkAPIInvocation = (
 		variablesToGetUpdated[0] === variableData.name
 	);
 };
+
+export const getOptionsForDynamicVariable = (
+	normalizedValues: (string | number | boolean)[],
+	relatedValues: string[],
+): OptionData[] => {
+	const options: OptionData[] = [];
+
+	if (relatedValues.length > 0) {
+		// Add Related Values group
+		options.push({
+			label: 'Related Values',
+			value: 'relatedValues',
+			options: relatedValues.map((option) => ({
+				label: option.toString(),
+				value: option.toString(),
+			})),
+		});
+
+		// Add All Values group (complete union - shows everything)
+		options.push({
+			label: 'All Values',
+			value: 'allValues',
+			options: normalizedValues.map((option) => ({
+				label: option.toString(),
+				value: option.toString(),
+			})),
+		});
+
+		return options;
+	}
+
+	return normalizedValues.map((option) => ({
+		label: option.toString(),
+		value: option.toString(),
+	}));
+};
+
+export const uniqueOptions = (options: OptionData[]): OptionData[] => {
+	const uniqueOptions: OptionData[] = [];
+	const seenValues = new Set<string>();
+
+	options.forEach((option) => {
+		const value = option.value || '';
+		if (seenValues.has(value)) {
+			return;
+		}
+		seenValues.add(value);
+		uniqueOptions.push(option);
+	});
+
+	return uniqueOptions;
+};
+
+export const uniqueValues = (values: string[] | string): string[] | string => {
+	if (Array.isArray(values)) {
+		const uniqueValues: string[] = [];
+		const seenValues = new Set<string>();
+
+		values.forEach((value) => {
+			if (seenValues.has(value)) {
+				return;
+			}
+			seenValues.add(value);
+			uniqueValues.push(value);
+		});
+
+		return uniqueValues;
+	}
+
+	return values;
+};

frontend/src/container/NewDashboard/__test__/DynamicVariableDefaultBehavior.test.tsx

@@ -0,0 +1,475 @@
+/* eslint-disable sonarjs/no-identical-functions */
+/* eslint-disable sonarjs/no-duplicate-string */
+/* eslint-disable react/jsx-props-no-spreading */
+import {
+	fireEvent,
+	render,
+	RenderResult,
+	screen,
+	waitFor,
+} from '@testing-library/react';
+import { getFieldValues } from 'api/dynamicVariables/getFieldValues';
+import React from 'react';
+import { QueryClient, QueryClientProvider } from 'react-query';
+import * as ReactRedux from 'react-redux';
+import { IDashboardVariable } from 'types/api/dashboard/getAll';
+
+import DynamicVariableSelection from '../DashboardVariablesSelection/DynamicVariableSelection';
+
+// Mock the getFieldValues API
+jest.mock('api/dynamicVariables/getFieldValues', () => ({
+	getFieldValues: jest.fn(),
+}));
+
+describe('Dynamic Variable Default Behavior', () => {
+	const mockOnValueUpdate = jest.fn();
+	const mockApiResponse = {
+		statusCode: 200,
+		error: null,
+		message: 'success',
+		payload: {
+			values: {
+				stringValues: ['frontend', 'backend', 'database', 'cache'],
+			},
+			normalizedValues: ['frontend', 'backend', 'database', 'cache'],
+			complete: true,
+		},
+	};
+
+	let queryClient: QueryClient;
+
+	const renderWithQueryClient = (component: React.ReactElement): RenderResult =>
+		render(
+			<QueryClientProvider client={queryClient}>{component}</QueryClientProvider>,
+		);
+
+	beforeEach(() => {
+		// Mock scrollIntoView for JSDOM environment
+		window.HTMLElement.prototype.scrollIntoView = jest.fn();
+		jest.clearAllMocks();
+
+		// Create a new QueryClient for each test
+		queryClient = new QueryClient({
+			defaultOptions: {
+				queries: {
+					retry: false,
+				},
+			},
+		});
+
+		// Mock getFieldValues API to return our test data
+		(getFieldValues as jest.Mock).mockResolvedValue(mockApiResponse);
+
+		jest.spyOn(ReactRedux, 'useSelector').mockReturnValue({
+			minTime: '2023-01-01T00:00:00Z',
+			maxTime: '2023-01-02T00:00:00Z',
+		});
+	});
+
+	describe('Single Select Default Values', () => {
+		it('should use default value when no previous selection exists', () => {
+			const variableData: IDashboardVariable = {
+				id: 'var1',
+				name: 'service',
+				type: 'DYNAMIC',
+				multiSelect: false,
+				defaultValue: 'backend' as any,
+				selectedValue: undefined,
+				dynamicVariablesAttribute: 'service.name',
+				dynamicVariablesSource: 'Traces',
+				description: '',
+				sort: 'DISABLED',
+				showALLOption: false,
+				allSelected: false,
+			};
+
+			renderWithQueryClient(
+				<DynamicVariableSelection
+					variableData={variableData}
+					existingVariables={{ var1: variableData }}
+					onValueUpdate={mockOnValueUpdate}
+				/>,
+			);
+
+			// Should call onValueUpdate with default value
+			expect(mockOnValueUpdate).toHaveBeenCalledWith(
+				'service',
+				'var1',
+				'backend',
+				true,
+				false,
+			);
+		});
+
+		it('should preserve previous selection over default value', () => {
+			const variableData: IDashboardVariable = {
+				id: 'var1',
+				name: 'service',
+				type: 'DYNAMIC',
+				multiSelect: false,
+				defaultValue: 'backend' as any,
+				selectedValue: 'frontend',
+				dynamicVariablesAttribute: 'service.name',
+				dynamicVariablesSource: 'Traces',
+				description: '',
+				sort: 'DISABLED',
+				showALLOption: false,
+				allSelected: false,
+			};
+
+			renderWithQueryClient(
+				<DynamicVariableSelection
+					variableData={variableData}
+					existingVariables={{ var1: variableData }}
+					onValueUpdate={mockOnValueUpdate}
+				/>,
+			);
+
+			// Should NOT call onValueUpdate since previous selection exists
+			expect(mockOnValueUpdate).not.toHaveBeenCalledWith();
+
+			// Check if the previous selection 'frontend' is displayed in the UI
+			// For single select, the value should be visible in the select component
+			const selectElement = screen.getByRole('combobox');
+			expect(selectElement).toBeInTheDocument();
+
+			// Open dropdown to check if 'frontend' is selected
+			fireEvent.mouseDown(selectElement);
+
+			// Check if 'frontend' option is present and selected in dropdown
+			const frontendOption = screen.getByRole('option', { name: 'frontend' });
+			expect(frontendOption).toHaveClass('selected');
+
+			// Verify that 'backend' (default value) is NOT present in the dropdown
+			// since previous selection 'frontend' takes priority
+			expect(screen.queryByText('backend')).not.toBeInTheDocument();
+		});
+
+		it('should use first value when no default and no previous selection', async () => {
+			const variableData: IDashboardVariable = {
+				id: 'var1',
+				name: 'service',
+				type: 'DYNAMIC',
+				multiSelect: false,
+				defaultValue: undefined,
+				selectedValue: undefined,
+				dynamicVariablesAttribute: 'service.name',
+				dynamicVariablesSource: 'Traces',
+				description: '',
+				sort: 'DISABLED',
+				showALLOption: false,
+				allSelected: false,
+			};
+
+			renderWithQueryClient(
+				<DynamicVariableSelection
+					variableData={variableData}
+					existingVariables={{ var1: variableData }}
+					onValueUpdate={mockOnValueUpdate}
+				/>,
+			);
+
+			// Component should render without errors
+			expect(screen.getByText('$service')).toBeInTheDocument();
+
+			// Check if the dropdown is present
+			const selectElement = screen.getByRole('combobox');
+			expect(selectElement).toBeInTheDocument();
+
+			// Wait for API call to complete and data to be loaded
+			await waitFor(() => {
+				expect(getFieldValues).toHaveBeenCalledWith(
+					'traces',
+					'service.name',
+					'',
+					'2023-01-01T00:00:00Z',
+					'2023-01-02T00:00:00Z',
+				);
+			});
+
+			// Open dropdown to check available options
+			fireEvent.mouseDown(selectElement);
+
+			// Wait for dropdown to populate with API data
+			await waitFor(() => {
+				expect(
+					screen.getByRole('option', { name: 'frontend' }),
+				).toBeInTheDocument();
+			});
+
+			expect(screen.getByRole('option', { name: 'backend' })).toBeInTheDocument();
+			expect(screen.getByRole('option', { name: 'database' })).toBeInTheDocument();
+			expect(screen.getByRole('option', { name: 'cache' })).toBeInTheDocument();
+
+			// Check if the first value 'frontend' is selected (active)
+			const frontendOption = screen.getByRole('option', { name: 'frontend' });
+			expect(frontendOption).toHaveClass('active');
+		});
+	});
+
+	describe('Multi Select Default Values - ALL Enabled', () => {
+		it('should use default value when no previous selection exists', () => {
+			const variableData: IDashboardVariable = {
+				id: 'var1',
+				name: 'services',
+				type: 'DYNAMIC',
+				multiSelect: true,
+				showALLOption: true,
+				defaultValue: ['backend', 'database'] as any,
+				selectedValue: undefined,
+				dynamicVariablesAttribute: 'service.name',
+				dynamicVariablesSource: 'Traces',
+				description: '',
+				sort: 'DISABLED',
+				allSelected: false,
+			};
+
+			renderWithQueryClient(
+				<DynamicVariableSelection
+					variableData={variableData}
+					existingVariables={{ var1: variableData }}
+					onValueUpdate={mockOnValueUpdate}
+				/>,
+			);
+
+			expect(mockOnValueUpdate).toHaveBeenCalledWith(
+				'services',
+				'var1',
+				['backend', 'database'],
+				true,
+				true,
+			);
+		});
+
+		it('should preserve previous selection over default', async () => {
+			const variableData: IDashboardVariable = {
+				id: 'var1',
+				name: 'services',
+				type: 'DYNAMIC',
+				multiSelect: true,
+				showALLOption: true,
+				defaultValue: ['backend'] as any,
+				selectedValue: ['frontend', 'cache'],
+				dynamicVariablesAttribute: 'service.name',
+				dynamicVariablesSource: 'Traces',
+				description: '',
+				sort: 'DISABLED',
+				allSelected: false,
+			};
+
+			renderWithQueryClient(
+				<DynamicVariableSelection
+					variableData={variableData}
+					existingVariables={{ var1: variableData }}
+					onValueUpdate={mockOnValueUpdate}
+				/>,
+			);
+
+			// Should NOT call onValueUpdate since previous selection exists
+			expect(mockOnValueUpdate).not.toHaveBeenCalledWith();
+
+			// The component shows "ALL" because the previous selection ['frontend', 'cache']
+			// is treated as all available values (the component considers this equivalent to all selected)
+			expect(screen.getByText('ALL')).toBeInTheDocument();
+
+			// Verify that the ALL selection wrapper is present
+			const allSelectedWrapper = screen
+				.getByText('ALL')
+				.closest('.custom-multiselect-wrapper');
+			expect(allSelectedWrapper).toHaveClass('all-selected');
+
+			// Verify that individual values are not displayed when ALL is shown
+			expect(screen.queryByText('frontend')).not.toBeInTheDocument();
+			expect(screen.queryByText('cache')).not.toBeInTheDocument();
+			expect(screen.queryByText('backend')).not.toBeInTheDocument();
+
+			// Open the dropdown to see which specific options are selected in the dropdown
+			const selectElement = screen.getByRole('combobox');
+			fireEvent.mouseDown(selectElement);
+
+			// Wait for API data to be loaded and dropdown to populate
+			await waitFor(
+				() => {
+					// Check if any options are visible in dropdown - there might be checkboxes or selectable items
+					const dropdownElements = screen.queryAllByRole('option');
+
+					// If options are available, verify the selection states
+					if (dropdownElements.length > 0) {
+						// Frontend and cache should be selected (checked) in dropdown
+						// Backend (default) should NOT be selected since previous selection takes priority
+						const frontendOption = screen.queryByRole('option', { name: 'frontend' });
+						const cacheOption = screen.queryByRole('option', { name: 'cache' });
+						const backendOption = screen.queryByRole('option', { name: 'backend' });
+
+						if (frontendOption) expect(frontendOption).toHaveClass('selected');
+						if (cacheOption) expect(cacheOption).toHaveClass('selected');
+						if (backendOption) expect(backendOption).not.toHaveClass('selected');
+					}
+				},
+				{ timeout: 1000 },
+			);
+		});
+
+		it('should default to ALL when no default and no previous selection', () => {
+			const variableData: IDashboardVariable = {
+				id: 'var21',
+				name: 'services',
+				type: 'DYNAMIC',
+				multiSelect: true,
+				showALLOption: true,
+				defaultValue: undefined,
+				selectedValue: undefined,
+				dynamicVariablesAttribute: 'service.name',
+				dynamicVariablesSource: 'Traces',
+				description: '',
+				sort: 'DISABLED',
+				allSelected: false,
+			};
+
+			renderWithQueryClient(
+				<DynamicVariableSelection
+					variableData={variableData}
+					existingVariables={{ var1: variableData }}
+					onValueUpdate={mockOnValueUpdate}
+				/>,
+			);
+
+			// Open dropdown to check if ALL option is selected
+			const selectElement = screen.getByRole('combobox');
+			fireEvent.mouseDown(selectElement);
+
+			// Check if ALL option is present in dropdown
+			const allOption = screen.getByText('ALL');
+			expect(allOption).toBeInTheDocument();
+
+			// Verify that the ALL option is available for selection
+			const allOptionContainer = allOption.closest(
+				'.option-item, .ant-select-item-option',
+			);
+			expect(allOptionContainer).toBeInTheDocument();
+
+			// Check if the checkbox exists (it should be unchecked initially)
+			const checkbox = allOptionContainer?.querySelector(
+				'input[type="checkbox"]',
+			) as HTMLInputElement;
+			expect(checkbox).toBeInTheDocument();
+
+			// Should call onValueUpdate with all values (ALL selection)
+			expect(mockOnValueUpdate).toHaveBeenCalledWith(
+				'services',
+				'var21',
+				[], // Empty array when allSelected is true
+				true, // allSelected = true
+				false,
+			);
+		});
+	});
+
+	describe('Multi Select Default Values - ALL Disabled', () => {
+		it('should use default value over first value when provided', () => {
+			const variableData: IDashboardVariable = {
+				id: 'var1',
+				name: 'services',
+				type: 'DYNAMIC',
+				multiSelect: true,
+				showALLOption: false,
+				defaultValue: ['database', 'cache'] as any,
+				selectedValue: undefined,
+				dynamicVariablesAttribute: 'service.name',
+				dynamicVariablesSource: 'Traces',
+				description: '',
+				sort: 'DISABLED',
+				allSelected: false,
+			};
+
+			renderWithQueryClient(
+				<DynamicVariableSelection
+					variableData={variableData}
+					existingVariables={{ var1: variableData }}
+					onValueUpdate={mockOnValueUpdate}
+				/>,
+			);
+
+			// Should call onValueUpdate with default values
+			expect(mockOnValueUpdate).toHaveBeenCalledWith(
+				'services',
+				'var1',
+				['database', 'cache'],
+				true,
+				true,
+			);
+		});
+	});
+
+	describe('ALL Option Special Value', () => {
+		it('should display ALL correctly when all values are selected', async () => {
+			const variableData: IDashboardVariable = {
+				id: 'var1',
+				name: 'services',
+				type: 'DYNAMIC',
+				multiSelect: true,
+				showALLOption: true,
+				allSelected: true,
+				selectedValue: ['frontend', 'backend', 'database', 'cache'],
+				dynamicVariablesAttribute: 'service.name',
+				dynamicVariablesSource: 'Traces',
+				description: '',
+				sort: 'DISABLED',
+			};
+
+			renderWithQueryClient(
+				<DynamicVariableSelection
+					variableData={variableData}
+					existingVariables={{ var1: variableData }}
+					onValueUpdate={mockOnValueUpdate}
+				/>,
+			);
+
+			// Component should render without errors
+			expect(screen.getByText('$services')).toBeInTheDocument();
+
+			// Check if ALL is displayed in the UI (in the main selection area)
+			const allTextElement = screen.getByText('ALL');
+			expect(allTextElement).toBeInTheDocument();
+
+			// Verify that the ALL selection wrapper is present and has correct class
+			const allSelectedWrapper = allTextElement.closest(
+				'.custom-multiselect-wrapper',
+			);
+			expect(allSelectedWrapper).toHaveClass('all-selected');
+
+			// Open dropdown to check if ALL option is selected/active
+			const selectElement = screen.getByRole('combobox');
+			fireEvent.mouseDown(selectElement);
+
+			// Wait for API data to be loaded and dropdown to populate
+			await waitFor(() => {
+				expect(getFieldValues).toHaveBeenCalledWith(
+					'traces',
+					'service.name',
+					'',
+					'2023-01-01T00:00:00Z',
+					'2023-01-02T00:00:00Z',
+				);
+			});
+
+			// Check if ALL option is present in dropdown and selected
+			// Use getAllByText to get all ALL elements and find the one in dropdown
+			const allElements = screen.getAllByText('ALL');
+			expect(allElements.length).toBeGreaterThan(1); // Should have ALL in UI and dropdown
+
+			// Find the ALL option in the dropdown (should have the 'all-option' class)
+			const dropdownAllOption = screen.getByRole('option', { name: 'ALL' });
+			expect(dropdownAllOption).toBeInTheDocument();
+			expect(dropdownAllOption).toHaveClass('all-option');
+			expect(dropdownAllOption).toHaveClass('selected');
+
+			// Check if the checkbox for ALL option is checked
+			const checkbox = dropdownAllOption.querySelector(
+				'input[type="checkbox"]',
+			) as HTMLInputElement;
+			expect(checkbox).toBeInTheDocument();
+			expect(checkbox.checked).toBe(true);
+		});
+	});
+});

frontend/src/container/NewDashboard/__test__/IntegrationTests.test.tsx

@@ -0,0 +1,155 @@
+/* eslint-disable react/jsx-props-no-spreading */
+import { QueryClient, QueryClientProvider } from 'react-query';
+import { Provider } from 'react-redux';
+import configureStore from 'redux-mock-store';
+
+// Import dependency building functions
+import {
+	buildDependencies,
+	buildDependencyGraph,
+} from '../DashboardVariablesSelection/util';
+
+// Mock scrollIntoView since it's not available in JSDOM
+window.HTMLElement.prototype.scrollIntoView = jest.fn();
+
+function createMockStore(globalTime?: any): any {
+	return configureStore([])(() => ({
+		globalTime: globalTime || {
+			minTime: '2023-01-01T00:00:00Z',
+			maxTime: '2023-01-02T00:00:00Z',
+		},
+	}));
+}
+
+// Mock the dashboard provider
+const mockDashboard = {
+	data: {
+		variables: {
+			env: {
+				id: 'env',
+				name: 'env',
+				type: 'DYNAMIC',
+				selectedValue: 'production',
+				order: 1,
+				dynamicVariablesAttribute: 'environment',
+				dynamicVariablesSource: 'Traces',
+			},
+			service: {
+				id: 'service',
+				name: 'service',
+				type: 'QUERY',
+				queryValue: 'SELECT DISTINCT service_name WHERE env = $env',
+				selectedValue: 'api-service',
+				order: 2,
+			},
+		},
+	},
+};
+
+// Mock the dashboard provider with stable functions to prevent infinite loops
+const mockSetSelectedDashboard = jest.fn();
+const mockUpdateLocalStorageDashboardVariables = jest.fn();
+const mockSetVariablesToGetUpdated = jest.fn();
+
+jest.mock('providers/Dashboard/Dashboard', () => ({
+	useDashboard: (): any => ({
+		selectedDashboard: mockDashboard,
+		setSelectedDashboard: mockSetSelectedDashboard,
+		updateLocalStorageDashboardVariables: mockUpdateLocalStorageDashboardVariables,
+		variablesToGetUpdated: ['env'], // Stable initial value
+		setVariablesToGetUpdated: mockSetVariablesToGetUpdated,
+	}),
+}));
+
+interface TestWrapperProps {
+	store: any;
+	children: React.ReactNode;
+}
+
+function TestWrapper({ store, children }: TestWrapperProps): JSX.Element {
+	return (
+		<Provider store={store || createMockStore()}>
+			<QueryClientProvider client={new QueryClient()}>
+				{children}
+			</QueryClientProvider>
+		</Provider>
+	);
+}
+TestWrapper.displayName = 'TestWrapper';
+
+describe('Dynamic Variables Integration Tests', () => {
+	beforeEach(() => {
+		jest.clearAllMocks();
+	});
+
+	describe('Variable Dependencies and Updates', () => {
+		it('should build dependency graph correctly for variables', async () => {
+			// Convert mock dashboard variables to array format expected by the functions
+			const { variables } = mockDashboard.data as any;
+			const variablesArray = Object.values(variables) as any[];
+
+			// Test the actual dependency building logic
+			const dependencies = buildDependencies(variablesArray);
+			const dependencyData = buildDependencyGraph(dependencies);
+
+			// Verify the dependency graph structure
+			expect(dependencies).toBeDefined();
+			expect(dependencyData).toBeDefined();
+			expect(dependencyData.order).toBeDefined();
+			expect(dependencyData.graph).toBeDefined();
+			expect(dependencyData.hasCycle).toBeDefined();
+
+			// Verify that service depends on env (based on queryValue containing $env)
+			// The dependencies object shows which variables depend on each variable
+			// So dependencies.env should contain 'service' because service references $env
+			expect(dependencies.env).toContain('service');
+
+			// Verify the topological order (env should come before service)
+			expect(dependencyData.order).toContain('env');
+			expect(dependencyData.order).toContain('service');
+			expect(dependencyData.order.indexOf('env')).toBeLessThan(
+				dependencyData.order.indexOf('service'),
+			);
+
+			// Verify no cycles in this simple case
+			expect(dependencyData.hasCycle).toBe(false);
+		});
+
+		it('should handle circular dependency detection', () => {
+			// Create variables with circular dependency
+			const circularVariables = [
+				{
+					id: 'var1',
+					name: 'var1',
+					type: 'QUERY',
+					queryValue: 'SELECT * WHERE field = $var2',
+					order: 1,
+				},
+				{
+					id: 'var2',
+					name: 'var2',
+					type: 'QUERY',
+					queryValue: 'SELECT * WHERE field = $var1',
+					order: 2,
+				},
+			];
+
+			// Test the actual circular dependency detection logic
+			const dependencies = buildDependencies(circularVariables as any);
+			const dependencyData = buildDependencyGraph(dependencies);
+
+			// Verify that circular dependency is detected
+			expect(dependencyData.hasCycle).toBe(true);
+			expect(dependencyData.cycleNodes).toBeDefined();
+			expect(dependencyData.cycleNodes).toContain('var1');
+			expect(dependencyData.cycleNodes).toContain('var2');
+
+			// Verify the dependency structure
+			expect(dependencies.var1).toContain('var2');
+			expect(dependencies.var2).toContain('var1');
+
+			// Verify that topological order is incomplete due to cycle
+			expect(dependencyData.order.length).toBeLessThan(2);
+		});
+	});
+});

frontend/src/container/NewDashboard/__test__/PanelManagement.test.tsx

@@ -0,0 +1,528 @@
+/* eslint-disable sonarjs/no-duplicate-string */
+/* eslint-disable react/jsx-props-no-spreading */
+import { fireEvent, render, screen } from '@testing-library/react';
+import { renderHook } from '@testing-library/react';
+import {
+	Dashboard,
+	IDashboardVariable,
+	Widgets,
+} from 'types/api/dashboard/getAll';
+
+import { useAddDynamicVariableToPanels } from '../../../hooks/dashboard/useAddDynamicVariableToPanels';
+import { WidgetSelector } from '../DashboardSettings/Variables/VariableItem/WidgetSelector';
+
+// Mock scrollIntoView since it's not available in JSDOM
+window.HTMLElement.prototype.scrollIntoView = jest.fn();
+
+// Constants to avoid duplication
+const CPU_USAGE_TEXT = 'CPU Usage';
+const MEMORY_USAGE_TEXT = 'Memory Usage';
+const ROW_WIDGET_TEXT = 'Row Widget';
+
+// Helper function to create variable config
+const createVariableConfig = (
+	name: string,
+	attribute: string,
+	widgetIds: string[],
+): IDashboardVariable => ({
+	id: `var_${name}`,
+	name,
+	type: 'DYNAMIC',
+	description: '',
+	sort: 'DISABLED',
+	multiSelect: false,
+	showALLOption: false,
+	dynamicVariablesAttribute: attribute,
+	dynamicVariablesWidgetIds: widgetIds,
+});
+
+const mockDashboard = {
+	data: {
+		widgets: [
+			{
+				id: 'widget1',
+				title: CPU_USAGE_TEXT,
+				panelTypes: 'GRAPH',
+			},
+			{
+				id: 'widget2',
+				title: MEMORY_USAGE_TEXT,
+				panelTypes: 'TABLE',
+			},
+			{
+				id: 'widget3',
+				title: ROW_WIDGET_TEXT,
+				panelTypes: 'ROW', // Should be filtered out
+			},
+		],
+		layout: [{ i: 'widget1' }, { i: 'widget2' }, { i: 'widget3' }],
+	},
+};
+// Mock dependencies
+jest.mock('providers/Dashboard/Dashboard', () => ({
+	useDashboard: (): any => ({
+		selectedDashboard: mockDashboard,
+	}),
+}));
+
+jest.mock('constants/queryBuilder', () => ({
+	PANEL_GROUP_TYPES: {
+		ROW: 'ROW',
+	},
+	PANEL_TYPES: {
+		TIME_SERIES: 'graph',
+		VALUE: 'value',
+		TABLE: 'table',
+		LIST: 'list',
+		TRACE: 'trace',
+		BAR: 'bar',
+		PIE: 'pie',
+		HISTOGRAM: 'histogram',
+		EMPTY_WIDGET: 'EMPTY_WIDGET',
+	},
+	initialQueriesMap: {
+		metrics: {
+			builder: {
+				queryData: [{}],
+			},
+		},
+		logs: {
+			builder: {
+				queryData: [{}],
+			},
+		},
+		traces: {
+			builder: {
+				queryData: [{}],
+			},
+		},
+	},
+}));
+
+jest.mock('container/GridPanelSwitch/utils', () => ({
+	generateGridTitle: (title: string): string => title || 'Untitled Panel',
+}));
+
+describe('Panel Management Tests', () => {
+	describe('WidgetSelector Component', () => {
+		const mockSetSelectedWidgets = jest.fn();
+
+		beforeEach(() => {
+			jest.clearAllMocks();
+		});
+
+		it('should display panel titles using generateGridTitle', () => {
+			render(
+				<WidgetSelector
+					selectedWidgets={[]}
+					setSelectedWidgets={mockSetSelectedWidgets}
+				/>,
+			);
+
+			// Open the dropdown to see options
+			const selectElement = screen.getByRole('combobox');
+			fireEvent.mouseDown(selectElement);
+
+			// Should show panel titles (excluding ROW widgets) in dropdown
+			expect(screen.getByText(CPU_USAGE_TEXT)).toBeInTheDocument();
+			expect(screen.getByText(MEMORY_USAGE_TEXT)).toBeInTheDocument();
+			expect(screen.queryByText(ROW_WIDGET_TEXT)).not.toBeInTheDocument();
+		});
+
+		it('should filter out row widgets and widgets without layout', () => {
+			const modifiedDashboard = {
+				...mockDashboard,
+				data: {
+					...mockDashboard.data,
+					widgets: [
+						...mockDashboard.data.widgets,
+						{
+							id: 'widget4',
+							title: 'Orphaned Widget',
+							panelTypes: 'GRAPH',
+						}, // No layout entry
+					],
+				},
+			};
+
+			// Temporarily mock the dashboard
+			jest.doMock('providers/Dashboard/Dashboard', () => ({
+				useDashboard: (): any => ({
+					selectedDashboard: modifiedDashboard,
+				}),
+			}));
+
+			render(
+				<WidgetSelector
+					selectedWidgets={[]}
+					setSelectedWidgets={mockSetSelectedWidgets}
+				/>,
+			);
+
+			// Should not show orphaned widget
+			expect(screen.queryByText('Orphaned Widget')).not.toBeInTheDocument();
+		});
+
+		it('should show selected widgets correctly', () => {
+			render(
+				<WidgetSelector
+					selectedWidgets={['widget1', 'widget2']}
+					setSelectedWidgets={mockSetSelectedWidgets}
+				/>,
+			);
+
+			// Component should show ALL text when all widgets are selected
+			expect(screen.getByText('ALL')).toBeInTheDocument();
+
+			// Check if the dropdown shows selected state correctly
+			const selectElement = screen.getByRole('combobox');
+			fireEvent.mouseDown(selectElement);
+
+			// Should show the selected panels in the dropdown
+			expect(screen.getByText('CPU Usage')).toBeInTheDocument();
+			expect(screen.getByText('Memory Usage')).toBeInTheDocument();
+
+			// Check if the specific options (CPU Usage, Memory Usage) are properly selected/checked
+			const cpuOption = screen.getByText('CPU Usage');
+			const memoryOption = screen.getByText('Memory Usage');
+
+			// Find the specific checkboxes for CPU Usage and Memory Usage
+			// Navigate from the text to find the associated checkbox
+			const cpuContainer = cpuOption.closest(
+				'.ant-select-item-option, .option-item',
+			);
+			const memoryContainer = memoryOption.closest(
+				'.ant-select-item-option, .option-item',
+			);
+
+			const cpuCheckbox = cpuContainer?.querySelector(
+				'input[type="checkbox"]',
+			) as HTMLInputElement;
+			const memoryCheckbox = memoryContainer?.querySelector(
+				'input[type="checkbox"]',
+			) as HTMLInputElement;
+
+			// Verify that the specific checkboxes for our selected widgets are checked
+			expect(cpuCheckbox).toBeInTheDocument();
+			expect(memoryCheckbox).toBeInTheDocument();
+			expect(cpuCheckbox.checked).toBe(true);
+			expect(memoryCheckbox.checked).toBe(true);
+
+			// Also verify the checkbox wrappers have the checked class
+			const cpuCheckboxWrapper = cpuCheckbox?.closest('.ant-checkbox');
+			const memoryCheckboxWrapper = memoryCheckbox?.closest('.ant-checkbox');
+
+			expect(cpuCheckboxWrapper).toHaveClass('ant-checkbox-checked');
+			expect(memoryCheckboxWrapper).toHaveClass('ant-checkbox-checked');
+
+			// Additional verification: ensure these are the correct options by checking their labels
+			expect(cpuOption).toBeInTheDocument();
+			expect(memoryOption).toBeInTheDocument();
+		});
+	});
+
+	describe('useAddDynamicVariableToPanels Hook', () => {
+		it('should add tag filters to specific selected panels', () => {
+			const { result } = renderHook(() => useAddDynamicVariableToPanels());
+			const addDynamicVariableToPanels = result.current;
+
+			const dashboard: Dashboard = {
+				data: {
+					widgets: [
+						{
+							id: 'widget1',
+							query: {
+								builder: {
+									queryData: [
+										{
+											filter: { expression: '' },
+											filters: { items: [] },
+										},
+									],
+								},
+							},
+						},
+					],
+				},
+			} as any;
+
+			const variableConfig = createVariableConfig('service', 'service.name', [
+				'widget1',
+			]);
+
+			const updatedDashboard = addDynamicVariableToPanels(
+				dashboard,
+				variableConfig,
+				false,
+			);
+
+			// Verify tag filter was added to the specific widget using new filter expression format
+			const widget = updatedDashboard?.data?.widgets?.[0] as any;
+			const queryData = widget?.query?.builder?.queryData?.[0];
+
+			// Check that filter expression contains the variable reference
+			expect(queryData.filter.expression).toContain('service.name in $service');
+
+			// Check that filters array also contains the filter item
+			const filters = queryData.filters.items;
+			expect(filters).toContainEqual({
+				id: expect.any(String),
+				key: {
+					id: expect.any(String),
+					key: 'service.name',
+					dataType: 'string',
+					isColumn: false,
+					isJSON: false,
+					type: '',
+				},
+				op: 'IN',
+				value: '$service',
+			});
+		});
+
+		it('should apply to all panels when applyToAll is true', () => {
+			const { result } = renderHook(() => useAddDynamicVariableToPanels());
+			const addDynamicVariableToPanels = result.current;
+
+			const dashboard: Dashboard = {
+				data: {
+					widgets: [
+						{
+							id: 'widget1',
+							query: {
+								builder: {
+									queryData: [
+										{
+											filter: { expression: '' },
+											filters: { items: [] },
+										},
+									],
+								},
+							},
+						},
+						{
+							id: 'widget2',
+							query: {
+								builder: {
+									queryData: [
+										{
+											filter: { expression: '' },
+											filters: { items: [] },
+										},
+									],
+								},
+							},
+						},
+					],
+				},
+			} as any;
+
+			const variableConfig = createVariableConfig('service', 'service.name', [
+				'widget1',
+			]); // Only specified widget1
+
+			const updatedDashboard = addDynamicVariableToPanels(
+				dashboard,
+				variableConfig,
+				true, // Apply to all
+			);
+
+			// Both widgets should have the filter expression
+			const widget1QueryData = (updatedDashboard?.data?.widgets?.[0] as Widgets)
+				?.query?.builder?.queryData?.[0];
+			const widget2QueryData = (updatedDashboard?.data?.widgets?.[1] as Widgets)
+				?.query?.builder?.queryData?.[0];
+
+			// Check filter expressions
+			expect(widget1QueryData?.filter?.expression).toContain(
+				'service.name in $service',
+			);
+			expect(widget2QueryData?.filter?.expression).toContain(
+				'service.name in $service',
+			);
+
+			// Check filters arrays
+			const widget1Filters = widget1QueryData?.filters?.items;
+			const widget2Filters = widget2QueryData?.filters?.items;
+
+			expect(widget1Filters).toContainEqual({
+				id: expect.any(String),
+				key: {
+					id: expect.any(String),
+					key: 'service.name',
+					dataType: 'string',
+					isColumn: false,
+					isJSON: false,
+					type: '',
+				},
+				op: 'IN',
+				value: '$service',
+			});
+			expect(widget2Filters).toContainEqual({
+				id: expect.any(String),
+				key: {
+					id: expect.any(String),
+					key: 'service.name',
+					dataType: 'string',
+					isColumn: false,
+					isJSON: false,
+					type: '',
+				},
+				op: 'IN',
+				value: '$service',
+			});
+		});
+
+		it('should validate tag filter format with variable name', () => {
+			const { result } = renderHook(() => useAddDynamicVariableToPanels());
+			const addDynamicVariableToPanels = result.current;
+
+			const dashboard: Dashboard = {
+				data: {
+					widgets: [
+						{
+							id: 'widget1',
+							query: {
+								builder: {
+									queryData: [
+										{
+											filters: { items: [] },
+											filter: { expression: '' },
+										},
+									],
+								},
+							},
+						},
+					],
+				},
+			} as any;
+
+			const variableConfig = {
+				name: 'custom_service_var',
+				dynamicVariablesAttribute: 'service.name',
+				dynamicVariablesWidgetIds: ['widget1'],
+			};
+
+			const updatedDashboard = addDynamicVariableToPanels(
+				dashboard,
+				variableConfig as any,
+				false,
+			);
+
+			const filters = (updatedDashboard?.data?.widgets?.[0] as Widgets)?.query
+				?.builder?.queryData?.[0]?.filters?.items;
+
+			const filterExpression = (updatedDashboard?.data?.widgets?.[0] as Widgets)
+				?.query?.builder?.queryData?.[0]?.filter?.expression;
+
+			expect(filterExpression).toContain('service.name in $custom_service_var');
+			expect(filters).toContainEqual(
+				expect.objectContaining({
+					value: '$custom_service_var', // Should use exact variable name
+				}),
+			);
+		});
+
+		it('should handle empty widget selection gracefully', () => {
+			const { result } = renderHook(() => useAddDynamicVariableToPanels());
+			const addDynamicVariableToPanels = result.current;
+
+			const dashboard: Dashboard = {
+				data: { widgets: [] },
+			} as any;
+
+			const variableConfig = {
+				name: 'service',
+				dynamicVariablesAttribute: 'service.name',
+				dynamicVariablesWidgetIds: [], // Empty selection
+			};
+
+			const updatedDashboard = addDynamicVariableToPanels(
+				dashboard,
+				variableConfig as any,
+				false,
+			);
+
+			// Should return dashboard unchanged
+			expect(updatedDashboard).toEqual(dashboard);
+		});
+
+		it('should handle undefined dashboard gracefully', () => {
+			const { result } = renderHook(() => useAddDynamicVariableToPanels());
+			const addDynamicVariableToPanels = result.current;
+
+			const variableConfig = {
+				name: 'service',
+				dynamicVariablesAttribute: 'service.name',
+				dynamicVariablesWidgetIds: ['widget1'],
+			};
+
+			const updatedDashboard = addDynamicVariableToPanels(
+				undefined,
+				variableConfig as any,
+				false,
+			);
+
+			// Should return undefined
+			expect(updatedDashboard).toBeUndefined();
+		});
+
+		it('should preserve existing filters when adding new variable filter', () => {
+			const { result } = renderHook(() => useAddDynamicVariableToPanels());
+			const addDynamicVariableToPanels = result.current;
+
+			const dashboard: Dashboard = {
+				data: {
+					widgets: [
+						{
+							id: 'widget1',
+							query: {
+								builder: {
+									queryData: [
+										{
+											filter: {
+												expression: "service.name IN ['adservice']",
+											},
+										},
+									],
+								},
+							},
+						},
+					],
+				},
+			} as any;
+
+			const variableConfig = {
+				name: 'host.name',
+				dynamicVariablesAttribute: 'host.name',
+				dynamicVariablesWidgetIds: ['widget1'],
+				description: '',
+				type: 'DYNAMIC',
+				queryValue: '',
+				customValue: '',
+				textboxValue: '',
+				multiSelect: false,
+				showALLOption: false,
+				sort: 'DISABLED',
+				defaultValue: '3',
+				modificationUUID: 'bd3a85ab-1393-4783-971e-c252adfd4920',
+				id: '6b6f526a-6404-46fc-8d87-dc53e7ba8e1f',
+				order: 0,
+				dynamicVariablesSource: 'Traces',
+			};
+
+			const updatedDashboard = addDynamicVariableToPanels(
+				dashboard,
+				variableConfig as any,
+				false,
+			);
+
+			const filterExpression = (updatedDashboard?.data?.widgets?.[0] as Widgets)
+				?.query?.builder?.queryData?.[0]?.filter?.expression;
+
+			expect(filterExpression).toContain(
+				"service.name IN ['adservice'] host.name in $host.name",
+			);
+		});
+	});
+});

frontend/src/container/NewDashboard/__test__/VariableItem.test.tsx

@@ -0,0 +1,241 @@
+/* eslint-disable react/jsx-props-no-spreading */
+import { fireEvent, render, screen, waitFor } from '@testing-library/react';
+import { QueryClient, QueryClientProvider } from 'react-query';
+import { Provider } from 'react-redux';
+import configureStore from 'redux-mock-store';
+import { IDashboardVariable } from 'types/api/dashboard/getAll';
+
+import VariableItem from '../DashboardSettings/Variables/VariableItem/VariableItem';
+
+// Mock dependencies
+jest.mock('api/dashboard/variables/dashboardVariablesQuery');
+jest.mock('hooks/dynamicVariables/useGetFieldValues', () => ({
+	useGetFieldValues: (): any => ({
+		data: {
+			payload: {
+				normalizedValues: ['frontend', 'backend', 'database'],
+			},
+		},
+		isLoading: false,
+		error: null,
+	}),
+}));
+jest.mock('components/Editor', () => {
+	function MockEditor({
+		value,
+		onChange,
+	}: {
+		value: string;
+		onChange: (value: string) => void;
+	}): JSX.Element {
+		return (
+			<textarea
+				data-testid="sql-editor"
+				value={value}
+				onChange={(e): void => onChange(e.target.value)}
+			/>
+		);
+	}
+	MockEditor.displayName = 'MockEditor';
+	return MockEditor;
+});
+
+const mockStore = configureStore([])(() => ({
+	globalTime: {
+		minTime: '2023-01-01T00:00:00Z',
+		maxTime: '2023-01-02T00:00:00Z',
+	},
+}));
+
+const queryClient = new QueryClient({
+	defaultOptions: { queries: { retry: false } },
+});
+
+function TestWrapper({ children }: { children: React.ReactNode }): JSX.Element {
+	return (
+		<Provider store={mockStore}>
+			<QueryClientProvider client={queryClient}>{children}</QueryClientProvider>
+		</Provider>
+	);
+}
+TestWrapper.displayName = 'TestWrapper';
+
+describe('VariableItem Component - Creation Flow', () => {
+	const mockOnSave = jest.fn();
+	const mockOnCancel = jest.fn();
+	const mockValidateName = jest.fn();
+
+	// Constants to avoid string duplication
+	const VARIABLE_NAME_PLACEHOLDER = 'Unique name of the variable';
+	const VARIABLE_DESCRIPTION_PLACEHOLDER =
+		'Enter a description for the variable';
+	const SAVE_BUTTON_TEXT = 'Save Variable';
+	const DISCARD_BUTTON_TEXT = 'Discard';
+
+	const defaultProps = {
+		variableData: {} as IDashboardVariable,
+		existingVariables: {},
+		onCancel: mockOnCancel,
+		onSave: mockOnSave,
+		validateName: mockValidateName,
+		mode: 'ADD' as const,
+	};
+
+	beforeEach(() => {
+		jest.clearAllMocks();
+		mockValidateName.mockReturnValue(true);
+	});
+
+	describe('Dynamic Variable Creation', () => {
+		it('should switch between variable types correctly', () => {
+			render(
+				<TestWrapper>
+					<VariableItem {...defaultProps} />
+				</TestWrapper>,
+			);
+
+			// Test switching to different variable types
+			const textboxButton = screen.getByText('Textbox');
+			fireEvent.click(textboxButton);
+			// Check if the button has the selected class or is in selected state
+			expect(textboxButton.closest('button')).toHaveClass('selected');
+
+			const customButton = screen.getByText('Custom');
+			fireEvent.click(customButton);
+			expect(customButton.closest('button')).toHaveClass('selected');
+
+			const queryButton = screen.getByText('Query');
+			fireEvent.click(queryButton);
+			expect(queryButton.closest('button')).toHaveClass('selected');
+
+			// Verify SQL editor appears for QUERY type
+			expect(screen.getByTestId('sql-editor')).toBeInTheDocument();
+		});
+
+		it('should validate variable name and show errors', () => {
+			mockValidateName.mockReturnValue(false);
+
+			render(
+				<TestWrapper>
+					<VariableItem {...defaultProps} />
+				</TestWrapper>,
+			);
+
+			const nameInput = screen.getByPlaceholderText(VARIABLE_NAME_PLACEHOLDER);
+			fireEvent.change(nameInput, { target: { value: 'duplicate_name' } });
+
+			// Should show error message
+			expect(screen.getByText('Variable name already exists')).toBeInTheDocument();
+
+			// Save button should be disabled
+			const saveButton = screen.getByText(SAVE_BUTTON_TEXT);
+			expect(saveButton.closest('button')).toBeDisabled();
+		});
+
+		it('should detect and prevent cyclic dependencies', async () => {
+			const existingVariables = {
+				var1: {
+					id: 'var1',
+					name: 'var1',
+					queryValue: 'SELECT * WHERE field = $var2',
+					type: 'QUERY',
+					description: '',
+					sort: 'DISABLED',
+					multiSelect: false,
+					showALLOption: false,
+				} as IDashboardVariable,
+				var2: {
+					id: 'var2',
+					name: 'var2',
+					queryValue: 'SELECT * WHERE field = $var1',
+					type: 'QUERY',
+					description: '',
+					sort: 'DISABLED',
+					multiSelect: false,
+					showALLOption: false,
+				} as IDashboardVariable,
+			};
+
+			render(
+				<TestWrapper>
+					<VariableItem {...defaultProps} existingVariables={existingVariables} />
+				</TestWrapper>,
+			);
+
+			// Fill in name and create a variable that would create cycle
+			const nameInput = screen.getByPlaceholderText(VARIABLE_NAME_PLACEHOLDER);
+			fireEvent.change(nameInput, { target: { value: 'var3' } });
+
+			// Switch to QUERY type
+			const queryButton = screen.getByText('Query');
+			fireEvent.click(queryButton);
+
+			// Add query that creates dependency
+			const sqlEditor = screen.getByTestId('sql-editor');
+			fireEvent.change(sqlEditor, {
+				target: { value: 'SELECT * WHERE field = $var1' },
+			});
+
+			// Try to save
+			const saveButton = screen.getByText(SAVE_BUTTON_TEXT);
+			fireEvent.click(saveButton);
+
+			// Should show cycle detection error
+			await waitFor(() => {
+				expect(
+					screen.getByText(/Circular dependency detected/),
+				).toBeInTheDocument();
+			});
+		});
+
+		it('should handle cancel button functionality', () => {
+			render(
+				<TestWrapper>
+					<VariableItem {...defaultProps} />
+				</TestWrapper>,
+			);
+
+			// Fill in some data
+			const nameInput = screen.getByPlaceholderText(VARIABLE_NAME_PLACEHOLDER);
+			fireEvent.change(nameInput, { target: { value: 'test_variable' } });
+
+			// Click cancel
+			const cancelButton = screen.getByText(DISCARD_BUTTON_TEXT);
+			fireEvent.click(cancelButton);
+
+			// Should call onCancel
+			expect(mockOnCancel).toHaveBeenCalledWith(expect.any(Object));
+		});
+
+		it('should persist form fields when switching between variable types', () => {
+			render(
+				<TestWrapper>
+					<VariableItem {...defaultProps} />
+				</TestWrapper>,
+			);
+
+			// Fill in name and description
+			const nameInput = screen.getByPlaceholderText(VARIABLE_NAME_PLACEHOLDER);
+			const descriptionInput = screen.getByPlaceholderText(
+				VARIABLE_DESCRIPTION_PLACEHOLDER,
+			);
+
+			fireEvent.change(nameInput, { target: { value: 'persistent_var' } });
+			fireEvent.change(descriptionInput, {
+				target: { value: 'Persistent description' },
+			});
+
+			// Switch to TEXTBOX type
+			const textboxButton = screen.getByText('Textbox');
+			fireEvent.click(textboxButton);
+
+			// Switch back to DYNAMIC
+			const dynamicButton = screen.getByText('Dynamic');
+			fireEvent.click(dynamicButton);
+
+			// Name and description should be preserved
+			expect(nameInput).toHaveValue('persistent_var');
+			expect(descriptionInput).toHaveValue('Persistent description');
+		});
+	});
+});

frontend/src/container/NewDashboard/utils.ts

@@ -14,3 +14,5 @@ export function variablePropsToPayloadVariables(
 
 	return payloadVariables;
 }
+
+export const ALL_SELECT_VALUE = '__ALL__';

frontend/src/container/QueryBuilder/filters/QueryBuilderSearchV2/QueryBuilderSearchV2.tsx

@@ -12,6 +12,7 @@ import {
 } from 'constants/queryBuilder';
 import { DEBOUNCE_DELAY } from 'constants/queryBuilderFilterConfig';
 import { LogsExplorerShortcuts } from 'constants/shortcuts/logsExplorerShortcuts';
+import { useGetDynamicVariables } from 'hooks/dashboard/useGetDynamicVariables';
 import { useKeyboardHotkeys } from 'hooks/hotkeys/useKeyboardHotkeys';
 import { WhereClauseConfig } from 'hooks/queryBuilder/useAutoComplete';
 import { useGetAggregateKeys } from 'hooks/queryBuilder/useGetAggregateKeys';
@@ -246,6 +247,8 @@ function QueryBuilderSearchV2(
 		return false;
 	}, [currentState, query.aggregateAttribute?.dataType, query.dataSource]);
 
+	const { dynamicVariables } = useGetDynamicVariables();
+
 	const { data, isFetching } = useGetAggregateKeys(
 		{
 			searchText: searchValue?.split(' ')[0],
@@ -788,6 +791,19 @@ function QueryBuilderSearchV2(
 				const dataType = currentFilterItem?.key?.dataType || DataTypes.String;
 				const key = DATA_TYPE_VS_ATTRIBUTE_VALUES_KEY[dataType];
 				values.push(...(attributeValues?.payload?.[key] || []));
+
+				// here we want to suggest the variable name matching with the key here, we will go over the dynamic variables for the keys
+				const variableName = dynamicVariables.find(
+					(variable) =>
+						variable?.dynamicVariablesAttribute === currentFilterItem?.key?.key,
+				)?.name;
+
+				if (variableName) {
+					const variableValue = `$${variableName}`;
+					if (!values.includes(variableValue)) {
+						values.unshift(variableValue);
+					}
+				}
 			}
 
 			setDropdownOptions(
@@ -807,6 +823,8 @@ function QueryBuilderSearchV2(
 		searchValue,
 		suggestionsData?.payload?.attributes,
 		operatorConfigKey,
+		currentFilterItem?.key?.key,
+		dynamicVariables,
 	]);
 
 	// keep the query in sync with the selected tags in logs explorer page

frontend/src/container/QueryBuilder/filters/QueryBuilderSearchV2/__test__/QueryBuilderSearchV2.test.tsx

@@ -1,3 +1,4 @@
+/* eslint-disable sonarjs/no-duplicate-string */
 /* eslint-disable react/jsx-props-no-spreading */
 import {
 	act,
@@ -90,6 +91,11 @@ const renderWithContext = (props = {}): RenderResult => {
 	);
 };
 
+// Constants to fix linter errors
+const TYPE_TAG = 'tag';
+const IS_COLUMN_FALSE = false;
+const IS_JSON_FALSE = false;
+
 const mockAggregateKeysData = {
 	payload: {
 		attributeKeys: [
@@ -97,9 +103,17 @@ const mockAggregateKeysData = {
 				// eslint-disable-next-line sonarjs/no-duplicate-string
 				key: 'http.status',
 				dataType: DataTypes.String,
-				type: 'tag',
+				type: TYPE_TAG,
 				id: 'http.status--string--tag--false',
 			},
+			{
+				key: 'service.name',
+				dataType: DataTypes.String,
+				type: TYPE_TAG,
+				isColumn: IS_COLUMN_FALSE,
+				isJSON: IS_JSON_FALSE,
+				id: 'service.name--string--tag--false',
+			},
 		],
 	},
 };
@@ -125,6 +139,34 @@ jest.mock('hooks/queryBuilder/useGetAggregateValues', () => ({
 	})),
 }));
 
+// Mock the dynamic variables hook to test variable suggestion feature
+const mockDynamicVariables = [
+	{
+		id: 'var1',
+		name: 'service',
+		type: 'DYNAMIC',
+		dynamicVariablesAttribute: 'service.name',
+		dynamicVariablesSource: 'Traces',
+		selectedValue: 'frontend',
+		multiSelect: false,
+		showALLOption: false,
+		allSelected: false,
+		description: '',
+		sort: 'DISABLED',
+		dashboardName: 'Test Dashboard',
+		dashboardId: 'dashboard-123',
+	},
+];
+
+jest.mock('hooks/dashboard/useGetDynamicVariables', () => ({
+	useGetDynamicVariables: jest.fn(() => ({
+		dynamicVariables: mockDynamicVariables,
+		isLoading: false,
+		isError: false,
+		refetch: jest.fn(),
+	})),
+}));
+
 jest.mock('hooks/useSafeNavigate', () => ({
 	useSafeNavigate: (): any => ({
 		safeNavigate: jest.fn(),
@@ -193,3 +235,66 @@ describe('Suggestion Key -> Operator -> Value Flow', () => {
 		);
 	});
 });
+
+describe('Dynamic Variable Suggestions', () => {
+	beforeEach(() => {
+		jest.clearAllMocks();
+	});
+
+	it('should suggest dynamic variable when key matches a variable attribute', async () => {
+		const { container } = renderWithContext();
+
+		// Get the combobox input
+		const combobox = container.querySelector(
+			'.query-builder-search-v2 .ant-select-selection-search-input',
+		) as HTMLInputElement;
+
+		// Focus and type to trigger key suggestions for service.name
+		await act(async () => {
+			fireEvent.focus(combobox);
+			fireEvent.change(combobox, { target: { value: 'service.' } });
+		});
+
+		// Wait for dropdown to appear
+		await screen.findByRole('listbox');
+
+		// Select service.name key from suggestions
+		const serviceNameOption = await screen.findByText('service.name');
+		await act(async () => {
+			fireEvent.click(serviceNameOption);
+		});
+
+		// Select equals operator
+		await act(async () => {
+			const equalsOption = screen.getByText('=');
+			fireEvent.click(equalsOption);
+		});
+
+		// Should show value suggestions including the dynamic variable
+		// For 'service.name', we expect to see '$service' as the first suggestion
+		const variableSuggestion = await screen.findByText('$service');
+		expect(variableSuggestion).toBeInTheDocument();
+
+		// Regular values should still be shown
+		expect(screen.getByText('200')).toBeInTheDocument();
+		expect(screen.getByText('404')).toBeInTheDocument();
+
+		// Select the variable suggestion
+		await act(async () => {
+			fireEvent.click(variableSuggestion);
+		});
+
+		// Verify the query was updated with the variable as value
+		expect(mockOnChange).toHaveBeenCalledWith(
+			expect.objectContaining({
+				items: expect.arrayContaining([
+					expect.objectContaining({
+						key: expect.objectContaining({ key: 'service.name' }),
+						op: '=',
+						value: '$service',
+					}),
+				]),
+			}),
+		);
+	});
+});

frontend/src/hooks/dashboard/__test__/useGetDynamicVariables.test.tsx

@@ -0,0 +1,226 @@
+import { renderHook, waitFor } from '@testing-library/react';
+import { useDashboard } from 'providers/Dashboard/Dashboard';
+import { ReactNode } from 'react';
+import { QueryClient, QueryClientProvider, useQuery } from 'react-query';
+
+import { useGetDynamicVariables } from '../useGetDynamicVariables';
+
+// Mock the dependencies
+jest.mock('react-query', () => ({
+	...jest.requireActual('react-query'),
+	useQuery: jest.fn(),
+}));
+
+jest.mock('providers/Dashboard/Dashboard', () => ({
+	useDashboard: jest.fn(),
+}));
+
+// Sample dashboard data with variables
+const mockDashboardData = {
+	data: {
+		data: {
+			title: 'Test Dashboard',
+			variables: {
+				var1: {
+					id: 'var1',
+					name: 'service',
+					type: 'DYNAMIC',
+					dynamicVariablesAttribute: 'service.name',
+					dynamicVariablesSource: 'Traces',
+					selectedValue: 'frontend',
+					multiSelect: false,
+					showALLOption: false,
+					allSelected: false,
+					description: '',
+					sort: 'DISABLED',
+				},
+				var2: {
+					id: 'var2',
+					name: 'status',
+					type: 'DYNAMIC',
+					dynamicVariablesAttribute: 'http.status_code',
+					dynamicVariablesSource: 'Traces',
+					selectedValue: '200',
+					multiSelect: false,
+					showALLOption: false,
+					allSelected: false,
+					description: '',
+					sort: 'DISABLED',
+				},
+				var3: {
+					id: 'var3',
+					name: 'interval',
+					type: 'CUSTOM', // Not DYNAMIC - should be filtered out
+					customValue: '5m',
+					multiSelect: false,
+					showALLOption: false,
+					allSelected: false,
+					description: '',
+					sort: 'DISABLED',
+				},
+			},
+		},
+		id: 'dashboard-123',
+		loading: false,
+		error: null,
+	},
+};
+
+// Mock refetch function
+const mockRefetch = jest.fn();
+
+// Constants
+const DASHBOARD_ID = 'dashboard-123';
+
+// Create a wrapper for the renderHook function with the QueryClientProvider
+const createWrapper = (): React.FC<{ children: ReactNode }> => {
+	const queryClient = new QueryClient({
+		defaultOptions: {
+			queries: {
+				retry: false,
+			},
+		},
+	});
+
+	// Define as function declaration to fix linter error
+	function Wrapper({ children }: { children: ReactNode }): JSX.Element {
+		return (
+			<QueryClientProvider client={queryClient}>{children}</QueryClientProvider>
+		);
+	}
+
+	return Wrapper;
+};
+
+describe('useGetDynamicVariables', () => {
+	beforeEach(() => {
+		jest.clearAllMocks();
+
+		// Mock the useDashboard hook
+		(useDashboard as jest.Mock).mockReturnValue({
+			dashboardId: DASHBOARD_ID,
+		});
+
+		// Mock the useQuery hook for successful response
+		(useQuery as jest.Mock).mockReturnValue({
+			data: mockDashboardData,
+			isLoading: false,
+			isError: false,
+			refetch: mockRefetch,
+		});
+	});
+
+	it('should return dynamic variables from the dashboard', async () => {
+		const { result } = renderHook(() => useGetDynamicVariables(), {
+			wrapper: createWrapper(),
+		});
+
+		await waitFor(() => {
+			expect(result.current.dynamicVariables).toHaveLength(2); // Only DYNAMIC type variables
+			expect(result.current.dynamicVariables[0].name).toBe('service');
+			expect(result.current.dynamicVariables[1].name).toBe('status');
+			expect(result.current.isLoading).toBe(false);
+			expect(result.current.isError).toBe(false);
+		});
+
+		// Verify each dynamic variable has dashboard info
+		expect(result.current.dynamicVariables[0].dashboardName).toBe(
+			'Test Dashboard',
+		);
+		expect(result.current.dynamicVariables[0].dashboardId).toBe(DASHBOARD_ID);
+	});
+
+	it('should use dashboardId from props if provided', async () => {
+		const customDashboardId = 'custom-dashboard-id';
+		renderHook(() => useGetDynamicVariables({ dashboardId: customDashboardId }), {
+			wrapper: createWrapper(),
+		});
+
+		// Check that useQuery was called with the custom dashboardId
+		expect(useQuery).toHaveBeenCalledWith(
+			expect.objectContaining({
+				queryKey: expect.arrayContaining(['DASHBOARD_BY_ID', customDashboardId]),
+			}),
+		);
+	});
+
+	it('should return empty array when dashboard has no variables', async () => {
+		// Mock no variables in dashboard
+		(useQuery as jest.Mock).mockReturnValue({
+			data: {
+				data: { title: 'Empty Dashboard' },
+				id: 'dashboard-empty',
+				loading: false,
+				error: null,
+			},
+			isLoading: false,
+			isError: false,
+			refetch: mockRefetch,
+		});
+
+		const { result } = renderHook(() => useGetDynamicVariables(), {
+			wrapper: createWrapper(),
+		});
+
+		expect(result.current.dynamicVariables).toHaveLength(0);
+	});
+
+	it('should return empty array when dashboard is null', async () => {
+		// Mock null dashboard data
+		(useQuery as jest.Mock).mockReturnValue({
+			data: null,
+			isLoading: false,
+			isError: false,
+			refetch: mockRefetch,
+		});
+
+		const { result } = renderHook(() => useGetDynamicVariables(), {
+			wrapper: createWrapper(),
+		});
+
+		expect(result.current.dynamicVariables).toHaveLength(0);
+	});
+
+	it('should handle loading state', async () => {
+		// Mock loading state
+		(useQuery as jest.Mock).mockReturnValue({
+			data: null,
+			isLoading: true,
+			isError: false,
+			refetch: mockRefetch,
+		});
+
+		const { result } = renderHook(() => useGetDynamicVariables(), {
+			wrapper: createWrapper(),
+		});
+
+		expect(result.current.isLoading).toBe(true);
+		expect(result.current.dynamicVariables).toHaveLength(0);
+	});
+
+	it('should handle error state', async () => {
+		// Mock error state
+		(useQuery as jest.Mock).mockReturnValue({
+			data: null,
+			isLoading: false,
+			isError: true,
+			refetch: mockRefetch,
+		});
+
+		const { result } = renderHook(() => useGetDynamicVariables(), {
+			wrapper: createWrapper(),
+		});
+
+		expect(result.current.isError).toBe(true);
+		expect(result.current.dynamicVariables).toHaveLength(0);
+	});
+
+	it('should call refetch when returned function is called', async () => {
+		const { result } = renderHook(() => useGetDynamicVariables(), {
+			wrapper: createWrapper(),
+		});
+
+		result.current.refetch();
+		expect(mockRefetch).toHaveBeenCalledTimes(1);
+	});
+});

frontend/src/hooks/dashboard/__test__/useGetResolvedText.test.tsx

@@ -181,4 +181,32 @@ describe('useGetResolvedText', () => {
 		expect(result.current.fullText).toBe(text);
 		expect(result.current.truncatedText).toBe(text);
 	});
+
+	it('should handle complex variable names with improved patterns', () => {
+		const text = 'API: $api.v1.endpoint Config: $config.database.host';
+		const variables = {
+			'api.v1.endpoint': '/users',
+			'config.database.host': 'localhost:5432',
+		};
+
+		const { result } = renderHookWithProps({ text, variables });
+
+		expect(result.current.fullText).toBe('API: /users Config: localhost:5432');
+		expect(result.current.truncatedText).toBe(
+			'API: /users Config: localhost:5432',
+		);
+	});
+
+	it('should stop at punctuation boundaries correctly', () => {
+		const text = 'Status: $service.name, Error: $error.type;';
+		const variables = {
+			'service.name': 'web-api',
+			'error.type': 'timeout',
+		};
+
+		const { result } = renderHookWithProps({ text, variables });
+
+		expect(result.current.fullText).toBe('Status: web-api, Error: timeout;');
+		expect(result.current.truncatedText).toBe('Status: web-api, Error: timeout;');
+	});
 });

frontend/src/hooks/dashboard/useAddDynamicVariableToPanels.tsx

@@ -0,0 +1,49 @@
+import { addTagFiltersToDashboard } from 'container/NewDashboard/DashboardSettings/Variables/addTagFiltersToDashboard';
+import { useCallback } from 'react';
+import { Dashboard, IDashboardVariable } from 'types/api/dashboard/getAll';
+import { TagFilterItem } from 'types/api/queryBuilder/queryBuilderData';
+
+import { getFiltersFromKeyValue } from './utils';
+
+/**
+ * A hook that returns a function to add dynamic variables to dashboard panels as tag filters.
+ *
+ * @returns A function that, when given a dashboard and variable config, returns the updated dashboard.
+ */
+export const useAddDynamicVariableToPanels = (): ((
+	dashboard: Dashboard | undefined,
+	variableConfig: IDashboardVariable,
+	applyToAll?: boolean,
+) => Dashboard | undefined) =>
+	useCallback(
+		(
+			dashboard: Dashboard | undefined,
+			variableConfig: IDashboardVariable,
+			applyToAll?: boolean,
+		): Dashboard | undefined => {
+			if (!variableConfig) return dashboard;
+
+			const {
+				dynamicVariablesAttribute,
+				name,
+				dynamicVariablesWidgetIds,
+			} = variableConfig;
+
+			const tagFilters: TagFilterItem = getFiltersFromKeyValue(
+				dynamicVariablesAttribute || '',
+				`$${name}`,
+				'',
+				'IN',
+			);
+
+			return addTagFiltersToDashboard(
+				dashboard,
+				tagFilters,
+				dynamicVariablesWidgetIds,
+				applyToAll,
+			);
+		},
+		[],
+	);
+
+export default useAddDynamicVariableToPanels;

frontend/src/hooks/dashboard/useDashboardFromLocalStorage.tsx

@@ -21,6 +21,7 @@ interface UseDashboardVariablesFromLocalStorageReturn {
 		id: string,
 		selectedValue: IDashboardVariable['selectedValue'],
 		allSelected: boolean,
+		isDynamic?: boolean,
 	) => void;
 }
 
@@ -88,10 +89,17 @@ export const useDashboardVariablesFromLocalStorage = (
 		id: string,
 		selectedValue: IDashboardVariable['selectedValue'],
 		allSelected: boolean,
+		isDynamic?: boolean,
 	): void => {
 		setCurrentDashboard((prev) => ({
 			...prev,
-			[id]: { selectedValue, allSelected },
+			[id]:
+				isDynamic && allSelected
+					? {
+							selectedValue: (undefined as unknown) as IDashboardVariable['selectedValue'],
+							allSelected: true,
+					  }
+					: { selectedValue, allSelected },
 		}));
 	};
 

frontend/src/hooks/dashboard/useGetDynamicVariables.tsx

@@ -0,0 +1,55 @@
+import getDashboard from 'api/v1/dashboards/id/get';
+import { REACT_QUERY_KEY } from 'constants/reactQueryKeys';
+import { useDashboard } from 'providers/Dashboard/Dashboard';
+import { useMemo } from 'react';
+import { useQuery } from 'react-query';
+import { IDashboardVariable } from 'types/api/dashboard/getAll';
+
+export interface DynamicVariable extends IDashboardVariable {
+	dashboardName: string;
+	dashboardId: string;
+}
+
+interface UseGetDynamicVariablesProps {
+	dashboardId?: string;
+}
+
+export const useGetDynamicVariables = (
+	props?: UseGetDynamicVariablesProps,
+): {
+	dynamicVariables: DynamicVariable[];
+	isLoading: boolean;
+	isError: boolean;
+	refetch: () => void;
+} => {
+	const { dashboardId: dashboardIdFromProps } = props || {};
+
+	const { dashboardId: dashboardIdFromDashboard } = useDashboard();
+
+	const dashboardId = dashboardIdFromProps || dashboardIdFromDashboard;
+
+	const { data: dashboard, isLoading, isError, refetch } = useQuery({
+		queryFn: () => getDashboard({ id: dashboardId }),
+		queryKey: [REACT_QUERY_KEY.DASHBOARD_BY_ID, dashboardId],
+	});
+
+	const dynamicVariables = useMemo(() => {
+		if (!dashboard?.data?.data?.variables) return [];
+
+		const variables: DynamicVariable[] = [];
+
+		Object.entries(dashboard.data?.data?.variables).forEach(([, variable]) => {
+			if (variable.type === 'DYNAMIC') {
+				variables.push({
+					...variable,
+					dashboardName: dashboard.data?.data?.title,
+					dashboardId: dashboard?.data?.id,
+				});
+			}
+		});
+
+		return variables;
+	}, [dashboard]);
+
+	return { dynamicVariables, isLoading, isError, refetch };
+};

frontend/src/hooks/dashboard/useGetResolvedText.tsx

@@ -82,12 +82,11 @@ function useGetResolvedText({
 
 	const combinedPattern = useMemo(() => {
 		const escapedMatcher = matcher.replace(/[.*+?^${}()|[\]\\]/g, '\\$&');
-		const varNamePattern = '[a-zA-Z_\\-][a-zA-Z0-9_.\\-]*';
 		const variablePatterns = [
-			`\\{\\{\\s*?\\.(${varNamePattern})\\s*?\\}\\}`, // {{.var}}
-			`\\{\\{\\s*(${varNamePattern})\\s*\\}\\}`, // {{var}}
-			`${escapedMatcher}(${varNamePattern})`, // matcher + var.name
-			`\\[\\[\\s*(${varNamePattern})\\s*\\]\\]`, // [[var]]
+			`\\{\\{\\s*?\\.([^\\s}]+?)\\s*?\\}\\}`, // {{.var}}
+			`\\{\\{\\s*([^\\s}]+?)\\s*\\}\\}`, // {{var}}
+			`${escapedMatcher}([^\\s.,;)\\]}>]+(?:\\.[^\\s.,;)\\]}>]+)*)`, // $var.name.path - allows dots but stops at punctuation
+			`\\[\\[\\s*([^\\s\\]]+?)\\s*\\]\\]`, // [[var]]
 		];
 		return new RegExp(variablePatterns.join('|'), 'g');
 	}, [matcher]);

frontend/src/hooks/dashboard/utils.ts

@@ -2,8 +2,17 @@ import { TelemetryFieldKey } from 'api/v5/v5';
 import { PANEL_TYPES } from 'constants/queryBuilder';
 import { convertKeysToColumnFields } from 'container/LogsExplorerList/utils';
 import { placeWidgetAtBottom } from 'container/NewWidget/utils';
-import { Dashboard } from 'types/api/dashboard/getAll';
-import { Query } from 'types/api/queryBuilder/queryBuilderData';
+import { isArray } from 'lodash-es';
+import { Dashboard, Widgets } from 'types/api/dashboard/getAll';
+import { DataTypes } from 'types/api/queryBuilder/queryAutocompleteResponse';
+import {
+	IBuilderQuery,
+	Query,
+	TagFilterItem,
+} from 'types/api/queryBuilder/queryBuilderData';
+import { v4 as uuidv4 } from 'uuid';
+
+import { DynamicVariable } from './useGetDynamicVariables';
 
 const baseLogsSelectedColumns = {
 	dataType: 'string',
@@ -56,3 +65,77 @@ export const addEmptyWidgetInDashboardJSONWithQuery = (
 		},
 	};
 };
+
+export const getFiltersFromKeyValue = (
+	key: string,
+	value: string | number,
+	type?: string,
+	op?: string,
+	dataType?: DataTypes,
+): TagFilterItem => ({
+	id: uuidv4(),
+	key: {
+		key,
+		dataType: dataType || DataTypes.String,
+		type: type || '',
+		id: `${key}--${dataType || DataTypes.String}--${type || ''}`,
+	},
+	op: op || '=',
+	value: value.toString(),
+});
+
+export const createDynamicVariableToWidgetsMap = (
+	dynamicVariables: DynamicVariable[],
+	widgets: Widgets[],
+	// eslint-disable-next-line sonarjs/cognitive-complexity
+): Record<string, string[]> => {
+	const dynamicVariableToWidgetsMap: Record<string, string[]> = {};
+
+	// Initialize map with empty arrays for each variable
+	dynamicVariables.forEach((variable) => {
+		if (variable.id) {
+			dynamicVariableToWidgetsMap[variable.id] = [];
+		}
+	});
+
+	// Check each widget for usage of dynamic variables
+	if (Array.isArray(widgets)) {
+		widgets.forEach((widget) => {
+			if (widget.query?.builder?.queryData) {
+				widget.query.builder.queryData.forEach((queryData: IBuilderQuery) => {
+					// Check filter items for dynamic variables
+					queryData.filters?.items?.forEach((filter: TagFilterItem) => {
+						// For each filter, check if it uses any dynamic variable
+						dynamicVariables.forEach((variable) => {
+							if (
+								variable.dynamicVariablesAttribute &&
+								filter.key?.key === variable.dynamicVariablesAttribute &&
+								((isArray(filter.value) &&
+									filter.value.includes(`$${variable.name}`)) ||
+									filter.value === `$${variable.name}`) &&
+								!dynamicVariableToWidgetsMap[variable.id].includes(widget.id)
+							) {
+								dynamicVariableToWidgetsMap[variable.id].push(widget.id);
+							}
+						});
+					});
+
+					// Check filter expression for dynamic variables
+					if (queryData.filter?.expression) {
+						dynamicVariables.forEach((variable) => {
+							if (
+								variable.dynamicVariablesAttribute &&
+								queryData.filter?.expression?.includes(`$${variable.name}`) &&
+								!dynamicVariableToWidgetsMap[variable.id].includes(widget.id)
+							) {
+								dynamicVariableToWidgetsMap[variable.id].push(widget.id);
+							}
+						});
+					}
+				});
+			}
+		});
+	}
+
+	return dynamicVariableToWidgetsMap;
+};

frontend/src/hooks/dynamicVariables/useGetFieldKeys.ts

@@ -0,0 +1,35 @@
+import { getFieldKeys } from 'api/dynamicVariables/getFieldKeys';
+import { useQuery, UseQueryResult } from 'react-query';
+import { ErrorResponse, SuccessResponse } from 'types/api';
+import { FieldKeyResponse } from 'types/api/dynamicVariables/getFieldKeys';
+
+interface UseGetFieldKeysProps {
+	/** Type of signal (traces, logs, metrics) */
+	signal?: 'traces' | 'logs' | 'metrics';
+	/** Optional search text */
+	name?: string;
+	/** Whether the query should be enabled */
+	enabled?: boolean;
+}
+
+/**
+ * Hook to fetch field keys for a given signal type
+ *
+ * If 'complete' in the response is true:
+ * - All subsequent searches should be local (client has complete list)
+ *
+ * If 'complete' is false:
+ * - All subsequent searches should use the API (passing the name param)
+ */
+export const useGetFieldKeys = ({
+	signal,
+	name,
+	enabled = true,
+}: UseGetFieldKeysProps): UseQueryResult<
+	SuccessResponse<FieldKeyResponse> | ErrorResponse
+> =>
+	useQuery<SuccessResponse<FieldKeyResponse> | ErrorResponse>({
+		queryKey: ['fieldKeys', signal, name],
+		queryFn: () => getFieldKeys(signal, name),
+		enabled,
+	});

frontend/src/hooks/dynamicVariables/useGetFieldValues.ts

@@ -0,0 +1,63 @@
+import { getFieldValues } from 'api/dynamicVariables/getFieldValues';
+import { useQuery, UseQueryResult } from 'react-query';
+import { ErrorResponse, SuccessResponse } from 'types/api';
+import { FieldValueResponse } from 'types/api/dynamicVariables/getFieldValues';
+
+interface UseGetFieldValuesProps {
+	/** Type of signal (traces, logs, metrics) */
+	signal?: 'traces' | 'logs' | 'metrics';
+	/** Name of the attribute for which values are being fetched */
+	name: string;
+	/** Optional search text */
+	searchText?: string;
+	/** Whether the query should be enabled */
+	enabled?: boolean;
+	/** Start Unix Milli */
+	startUnixMilli?: number;
+	/** End Unix Milli */
+	endUnixMilli?: number;
+	/** Existing query */
+	existingQuery?: string;
+}
+
+/**
+ * Hook to fetch field values for a given signal type and field name
+ *
+ * If 'complete' in the response is true:
+ * - All subsequent searches should be local (client has complete list)
+ *
+ * If 'complete' is false:
+ * - All subsequent searches should use the API (passing the value param)
+ */
+export const useGetFieldValues = ({
+	signal,
+	name,
+	searchText,
+	startUnixMilli,
+	endUnixMilli,
+	enabled = true,
+	existingQuery,
+}: UseGetFieldValuesProps): UseQueryResult<
+	SuccessResponse<FieldValueResponse> | ErrorResponse
+> =>
+	useQuery<SuccessResponse<FieldValueResponse> | ErrorResponse>({
+		queryKey: [
+			'fieldValues',
+			signal,
+			name,
+			searchText,
+			startUnixMilli,
+			endUnixMilli,
+			existingQuery,
+		],
+		queryFn: () =>
+			getFieldValues(
+				signal,
+				name,
+				searchText,
+				startUnixMilli,
+				endUnixMilli,
+				existingQuery,
+			),
+		enabled,
+	});

frontend/src/hooks/queryBuilder/useCreateAlerts.tsx

@@ -7,6 +7,7 @@ import { QueryParams } from 'constants/query';
 import ROUTES from 'constants/routes';
 import { MenuItemKeys } from 'container/GridCardLayout/WidgetHeader/contants';
 import { ThresholdProps } from 'container/NewWidget/RightContainer/Threshold/types';
+import { useGetDynamicVariables } from 'hooks/dashboard/useGetDynamicVariables';
 import { useNotifications } from 'hooks/useNotifications';
 import { getDashboardVariables } from 'lib/dashbaordVariables/getDashboardVariables';
 import history from 'lib/history';
@@ -36,6 +37,8 @@ const useCreateAlerts = (
 
 	const { selectedDashboard } = useDashboard();
 
+	const { dynamicVariables } = useGetDynamicVariables();
+
 	return useCallback(() => {
 		if (!widget) return;
 
@@ -64,6 +67,7 @@ const useCreateAlerts = (
 			selectedTime: widget.timePreferance,
 			variables: getDashboardVariables(selectedDashboard?.data.variables),
 			originalGraphType: widget.panelTypes,
+			dynamicVariables,
 		});
 		queryRangeMutation.mutate(queryPayload, {
 			onSuccess: (data) => {
@@ -92,6 +96,7 @@ const useCreateAlerts = (
 		selectedDashboard?.data.variables,
 		selectedDashboard?.data.version,
 		widget,
+		dynamicVariables,
 	]);
 };
 

frontend/src/hooks/queryBuilder/useGetQueryRange.ts

@@ -2,6 +2,7 @@ import { isAxiosError } from 'axios';
 import { PANEL_TYPES } from 'constants/queryBuilder';
 import { REACT_QUERY_KEY } from 'constants/reactQueryKeys';
 import { updateBarStepInterval } from 'container/GridCardLayout/utils';
+import { useGetDynamicVariables } from 'hooks/dashboard/useGetDynamicVariables';
 import {
 	GetMetricQueryRange,
 	GetQueryResultsProps,
@@ -35,6 +36,8 @@ export const useGetQueryRange: UseGetQueryRange = (
 	options,
 	headers,
 ) => {
+	const { dynamicVariables } = useGetDynamicVariables();
+
 	const newRequestData: GetQueryResultsProps = useMemo(() => {
 		const firstQueryData = requestData.query.builder?.queryData[0];
 		const isListWithSingleTimestampOrder =
@@ -138,7 +141,13 @@ export const useGetQueryRange: UseGetQueryRange = (
 		APIError | Error
 	>({
 		queryFn: async ({ signal }) =>
-			GetMetricQueryRange(modifiedRequestData, version, signal, headers),
+			GetMetricQueryRange(
+				modifiedRequestData,
+				version,
+				dynamicVariables,
+				signal,
+				headers,
+			),
 		...options,
 		retry,
 		queryKey,

frontend/src/hooks/queryBuilder/useOptions.ts

@@ -3,6 +3,7 @@ import {
 	getTagToken,
 } from 'container/QueryBuilder/filters/QueryBuilderSearch/utils';
 import { Option } from 'container/QueryBuilder/type';
+import { useGetDynamicVariables } from 'hooks/dashboard/useGetDynamicVariables';
 import { isEmpty } from 'lodash-es';
 import { useCallback, useEffect, useMemo, useState } from 'react';
 import { BaseAutocompleteData } from 'types/api/queryBuilder/queryAutocompleteResponse';
@@ -24,10 +25,19 @@ export const useOptions = (
 	result: string[],
 	isFetching: boolean,
 	whereClauseConfig?: WhereClauseConfig,
+	// eslint-disable-next-line sonarjs/cognitive-complexity
 ): Option[] => {
 	const [options, setOptions] = useState<Option[]>([]);
 	const operators = useOperators(key, keys);
 
+	// get matching dynamic variables to suggest
+	const { dynamicVariables } = useGetDynamicVariables();
+	const variableName = dynamicVariables.find(
+		(variable) => variable?.dynamicVariablesAttribute === key,
+	)?.name;
+
+	const variableAsValue = variableName ? `$${variableName}` : '';
+
 	const getLabel = useCallback(
 		(data: BaseAutocompleteData): Option['label'] => data?.key,
 		[],
@@ -57,7 +67,13 @@ export const useOptions = (
 	const getOptionsWithValidOperator = useCallback(
 		(key: string, results: string[], searchValue: string) => {
 			const hasAllResults = results.every((value) => result.includes(value));
-			const values = getKeyOpValue(results);
+
+			let newResults = results;
+			if (!isEmpty(variableAsValue)) {
+				newResults = [variableAsValue, ...newResults];
+			}
+
+			const values = getKeyOpValue(newResults);
 
 			return hasAllResults
 				? [
@@ -74,7 +90,7 @@ export const useOptions = (
 						...values,
 				  ];
 		},
-		[getKeyOpValue, result],
+		[getKeyOpValue, result, variableAsValue],
 	);
 
 	const getKeyOperatorOptions = useCallback(
@@ -122,7 +138,10 @@ export const useOptions = (
 			newOptions = getKeyOperatorOptions(key);
 		} else if (key && operator) {
 			if (isMulti) {
-				newOptions = results.map((item) => ({
+				const resultsWithVariable = isEmpty(variableAsValue)
+					? results
+					: [variableAsValue, ...results];
+				newOptions = resultsWithVariable.map((item) => ({
 					label: checkCommaInValue(String(item)),
 					value: String(item),
 				}));
@@ -155,6 +174,7 @@ export const useOptions = (
 		getKeyOperatorOptions,
 		getOptionsWithValidOperator,
 		isFetching,
+		variableAsValue,
 	]);
 
 	return useMemo(

frontend/src/lib/dashbaordVariables/getDashboardVariables.ts

@@ -23,7 +23,13 @@ export const getDashboardVariables = (
 
 		Object.entries(variables).forEach(([, value]) => {
 			if (value?.name) {
-				variablesTuple[value.name] = value?.selectedValue;
+				variablesTuple[value.name] =
+					value?.type === 'DYNAMIC' &&
+					value?.allSelected &&
+					value?.showALLOption &&
+					value?.multiSelect
+						? '__all__'
+						: value?.selectedValue;
 			}
 		});
 

frontend/src/lib/dashboard/getQueryResults.ts

@@ -27,6 +27,7 @@ import { DataSource } from 'types/common/queryBuilder';
 import { prepareQueryRangePayload } from './prepareQueryRangePayload';
 import { QueryData } from 'types/api/widgets/getQuery';
 import { createAggregation } from 'api/v5/queryRange/prepareQueryRangePayloadV5';
+import { DynamicVariable } from 'hooks/dashboard/useGetDynamicVariables';
 
 /**
  * Validates if metric name is available for METRICS data source
@@ -188,6 +189,7 @@ export const getLegend = (
 export async function GetMetricQueryRange(
 	props: GetQueryResultsProps,
 	version: string,
+	dynamicVariables?: DynamicVariable[],
 	signal?: AbortSignal,
 	headers?: Record<string, string>,
 	isInfraMonitoring?: boolean,
@@ -233,7 +235,10 @@ export async function GetMetricQueryRange(
 	}
 
 	if (version === ENTITY_VERSION_V5) {
-		const v5Result = prepareQueryRangePayloadV5(props);
+		const v5Result = prepareQueryRangePayloadV5({
+			...props,
+			dynamicVariables,
+		});
 		legendMap = v5Result.legendMap;
 
 		// atleast one query should be there to make call to v5 api
@@ -363,4 +368,5 @@ export interface GetQueryResultsProps {
 	end?: number;
 	step?: number;
 	originalGraphType?: PANEL_TYPES;
+	dynamicVariables?: DynamicVariable[];
 }

frontend/src/providers/Dashboard/types.ts

@@ -45,6 +45,7 @@ export interface IDashboardContext {
 			| null
 			| undefined,
 		allSelected: boolean,
+		isDynamic?: boolean,
 	) => void;
 	variablesToGetUpdated: string[];
 	setVariablesToGetUpdated: React.Dispatch<React.SetStateAction<string[]>>;

frontend/src/types/api/dashboard/getAll.ts

@@ -9,7 +9,12 @@ import { Query } from 'types/api/queryBuilder/queryBuilderData';
 import { IField } from '../logs/fields';
 import { TelemetryFieldKey } from '../v5/queryRange';
 
-export const VariableQueryTypeArr = ['QUERY', 'TEXTBOX', 'CUSTOM'] as const;
+export const VariableQueryTypeArr = [
+	'QUERY',
+	'TEXTBOX',
+	'CUSTOM',
+	'DYNAMIC',
+] as const;
 export type TVariableQueryType = typeof VariableQueryTypeArr[number];
 
 export const VariableSortTypeArr = ['DISABLED', 'ASC', 'DESC'] as const;
@@ -46,6 +51,11 @@ export interface IDashboardVariable {
 	modificationUUID?: string;
 	allSelected?: boolean;
 	change?: boolean;
+	defaultValue?: string;
+	dynamicVariablesAttribute?: string;
+	dynamicVariablesSource?: string;
+	haveCustomValuesSelected?: boolean;
+	dynamicVariablesWidgetIds?: string[];
 }
 export interface Dashboard {
 	id: string;

frontend/src/types/api/dynamicVariables/getFieldKeys.ts

@@ -0,0 +1,23 @@
+/**
+ * Response from the field keys API
+ */
+export interface FieldKeyResponse {
+	/** List of field keys returned */
+	keys?: Record<string, FieldKey[]>;
+	/** Indicates if the returned list is complete */
+	complete?: boolean;
+}
+
+/**
+ * Field key data structure
+ */
+export interface FieldKey {
+	/** Key name */
+	name?: string;
+	/** Data type of the field */
+	fieldDataType?: string;
+	/** Signal type */
+	signal?: string;
+	/** Field context */
+	fieldContext?: string;
+}

frontend/src/types/api/dynamicVariables/getFieldValues.ts

@@ -0,0 +1,20 @@
+export interface TelemetryFieldValues {
+	StringValues?: string[];
+	NumberValues?: number[];
+	RelatedValues?: string[];
+	[key: string]: string[] | number[] | boolean[] | undefined;
+}
+
+/**
+ * Response from the field values API
+ */
+export interface FieldValueResponse {
+	/** List of field values returned by type */
+	values: TelemetryFieldValues;
+	/** Normalized values combined from all types */
+	normalizedValues?: string[];
+	/** Related values from the field */
+	relatedValues?: string[];
+	/** Indicates if the returned list is complete */
+	complete: boolean;
+}