diff --git a/src/frontend/src/components/core/parameterRenderComponent/components/accordionPromptComponent/index.test.tsx b/src/frontend/src/components/core/parameterRenderComponent/components/accordionPromptComponent/index.test.tsx
new file mode 100644
index 000000000000..789ba078133c
--- /dev/null
+++ b/src/frontend/src/components/core/parameterRenderComponent/components/accordionPromptComponent/index.test.tsx
@@ -0,0 +1,89 @@
+// Tests for AccordionPromptComponent functionality
+// Testing the actual generateUniqueVariableName function from the component
+
+import { generateUniqueVariableName } from "./index";
+
+describe("AccordionPromptComponent", () => {
+  describe("generateUniqueVariableName", () => {
+    it("should return 'variable_name' when template is empty", () => {
+      const result = generateUniqueVariableName("");
+      expect(result).toBe("variable_name");
+    });
+
+    it("should return 'variable_name' when no variables exist", () => {
+      const result = generateUniqueVariableName("Hello world!");
+      expect(result).toBe("variable_name");
+    });
+
+    it("should return 'variable_name' when only other variables exist", () => {
+      const result = generateUniqueVariableName(
+        "Hello {name}, your {id} is ready",
+      );
+      expect(result).toBe("variable_name");
+    });
+
+    it("should return 'variable_name_1' when 'variable_name' already exists", () => {
+      const result = generateUniqueVariableName("Hello {variable_name}!");
+      expect(result).toBe("variable_name_1");
+    });
+
+    it("should return 'variable_name_2' when 'variable_name' and 'variable_name_1' exist", () => {
+      const result = generateUniqueVariableName(
+        "Hello {variable_name} and {variable_name_1}!",
+      );
+      expect(result).toBe("variable_name_2");
+    });
+
+    it("should return 'variable_name_3' when first three exist", () => {
+      const result = generateUniqueVariableName(
+        "{variable_name}{variable_name_1}{variable_name_2}",
+      );
+      expect(result).toBe("variable_name_3");
+    });
+
+    it("should fill gaps - return 'variable_name_1' when only 'variable_name' and 'variable_name_2' exist", () => {
+      const result = generateUniqueVariableName(
+        "Hello {variable_name} and {variable_name_2}!",
+      );
+      expect(result).toBe("variable_name_1");
+    });
+
+    it("should handle mixed variables with 'variable_name' present", () => {
+      const result = generateUniqueVariableName(
+        "User: {name}, Template: {variable_name}, ID: {id}",
+      );
+      expect(result).toBe("variable_name_1");
+    });
+
+    it("should handle variables with similar names but not exact match", () => {
+      const result = generateUniqueVariableName("Hello {variable_name_extra}!");
+      expect(result).toBe("variable_name");
+    });
+
+    it("should handle multiple occurrences of the same variable", () => {
+      const result = generateUniqueVariableName(
+        "{variable_name} is {variable_name} and {variable_name}",
+      );
+      expect(result).toBe("variable_name_1");
+    });
+
+    it("should work with newlines in template", () => {
+      const result = generateUniqueVariableName(
+        "Line 1: {variable_name}\nLine 2: {variable_name_1}",
+      );
+      expect(result).toBe("variable_name_2");
+    });
+
+    it("should handle complex template with many variable types", () => {
+      const template = `
+        Name: {name}
+        Age: {age}
+        Default: {variable_name}
+        Second: {variable_name_1}
+        City: {city}
+      `;
+      const result = generateUniqueVariableName(template);
+      expect(result).toBe("variable_name_2");
+    });
+  });
+});
diff --git a/src/frontend/src/components/core/parameterRenderComponent/components/accordionPromptComponent/index.tsx b/src/frontend/src/components/core/parameterRenderComponent/components/accordionPromptComponent/index.tsx
index eb60f2df54bc..d516e815b634 100644
--- a/src/frontend/src/components/core/parameterRenderComponent/components/accordionPromptComponent/index.tsx
+++ b/src/frontend/src/components/core/parameterRenderComponent/components/accordionPromptComponent/index.tsx
@@ -14,6 +14,31 @@ import type { InputProps, PromptAreaComponentType } from "../../types";
 import useAlertStore from "@/stores/alertStore";
 import { usePostValidatePrompt } from "@/controllers/API/queries/nodes/use-post-validate-prompt";
 
+/**
+ * Generates a unique variable name for the prompt template.
+ * If "variable_name" doesn't exist, returns it.
+ * Otherwise, returns "variable_name_1", "variable_name_2", etc.
+ */
+export const generateUniqueVariableName = (templateValue: string): string => {
+  const variableRegex = /\{([^{}]+)\}/g;
+  const existingVariables = new Set<string>();
+  let match: RegExpExecArray | null;
+  while ((match = variableRegex.exec(templateValue)) !== null) {
+    existingVariables.add(match[1]);
+  }
+
+  let variableName = "variable_name";
+  if (existingVariables.has(variableName)) {
+    let counter = 1;
+    while (existingVariables.has(`variable_name_${counter}`)) {
+      counter++;
+    }
+    variableName = `variable_name_${counter}`;
+  }
+
+  return variableName;
+};
+
 export default function AccordionPromptComponent({
   field_name,
   nodeClass,
@@ -369,7 +394,9 @@ export default function AccordionPromptComponent({
     if (disabled || readonly || !contentEditableRef.current) return;
 
     isTypingRef.current = true;
-    const variableText = "{variable_name}";
+
+    const variableName = generateUniqueVariableName(internalValue);
+    const variableText = `{${variableName}}`;
 
     // Get current cursor position or end of text
     let insertPosition = internalValue.length;