diff --git a/packages/grafana-ui/src/options/builder/axis.tsx b/packages/grafana-ui/src/options/builder/axis.tsx
index 2a728eff2e77c..867cdfae33107 100644
--- a/packages/grafana-ui/src/options/builder/axis.tsx
+++ b/packages/grafana-ui/src/options/builder/axis.tsx
@@ -39,6 +39,7 @@ export function addAxisConfig(
       defaultValue: '',
       settings: {
         placeholder: 'Optional text',
+        expandTemplateVars: true,
       },
       showIf: (c) => c.axisPlacement !== AxisPlacement.Hidden,
       // Do not apply default settings to time and string fields which are used as x-axis fields in Time series and Bar chart panels