diff --git a/pkg/tsdb/prometheus/time_series_query.go b/pkg/tsdb/prometheus/time_series_query.go
index 2b95756db07..64cd8d77847 100644
--- a/pkg/tsdb/prometheus/time_series_query.go
+++ b/pkg/tsdb/prometheus/time_series_query.go
@@ -18,7 +18,7 @@ import (
 	"github.com/prometheus/common/model"
 )
 
-// Internal interval and range variables
+//Internal interval and range variables
 const (
 	varInterval     = "$__interval"
 	varIntervalMs   = "$__interval_ms"
@@ -28,6 +28,17 @@ const (
 	varRateInterval = "$__rate_interval"
 )
 
+//Internal interval and range variables with {} syntax
+//Repetitive code, we should have functionality to unify these
+const (
+	varIntervalAlt     = "${__interval}"
+	varIntervalMsAlt   = "${__interval_ms}"
+	varRangeAlt        = "${__range}"
+	varRangeSAlt       = "${__range_s}"
+	varRangeMsAlt      = "${__range_ms}"
+	varRateIntervalAlt = "${__rate_interval}"
+)
+
 type TimeSeriesQueryType string
 
 const (
@@ -153,6 +164,12 @@ func (s *Service) parseTimeSeriesQuery(queryContext *backend.QueryDataRequest, d
 		if queryInterval == varInterval || queryInterval == varIntervalMs || queryInterval == varRateInterval {
 			queryInterval = ""
 		}
+		//If we are using variable or interval/step with {} syntax, we will replace it with calculated interval
+		//Repetitive code, we should have functionality to unify these
+		if queryInterval == varIntervalAlt || queryInterval == varIntervalMsAlt || queryInterval == varRateIntervalAlt {
+			queryInterval = ""
+		}
+
 		minInterval, err := intervalv2.GetIntervalFrom(dsInfo.TimeInterval, queryInterval, model.IntervalMS, 15*time.Second)
 		if err != nil {
 			return nil, err
@@ -166,7 +183,7 @@ func (s *Service) parseTimeSeriesQuery(queryContext *backend.QueryDataRequest, d
 			adjustedInterval = calculatedInterval.Value
 		}
 
-		if queryInterval == varRateInterval {
+		if queryInterval == varRateInterval || queryInterval == varRateIntervalAlt {
 			// Rate interval is final and is not affected by resolution
 			interval = calculateRateInterval(adjustedInterval, dsInfo.TimeInterval, s.intervalCalculator)
 		} else {
@@ -264,6 +281,14 @@ func interpolateVariables(expr string, interval time.Duration, timeRange time.Du
 	expr = strings.ReplaceAll(expr, varRangeS, strconv.FormatInt(rangeSRounded, 10))
 	expr = strings.ReplaceAll(expr, varRange, strconv.FormatInt(rangeSRounded, 10)+"s")
 	expr = strings.ReplaceAll(expr, varRateInterval, intervalv2.FormatDuration(calculateRateInterval(interval, timeInterval, intervalCalculator)))
+
+	// Repetitive code, we should have functionality to unify these
+	expr = strings.ReplaceAll(expr, varIntervalMsAlt, strconv.FormatInt(int64(interval/time.Millisecond), 10))
+	expr = strings.ReplaceAll(expr, varIntervalAlt, intervalv2.FormatDuration(interval))
+	expr = strings.ReplaceAll(expr, varRangeMsAlt, strconv.FormatInt(rangeMs, 10))
+	expr = strings.ReplaceAll(expr, varRangeSAlt, strconv.FormatInt(rangeSRounded, 10))
+	expr = strings.ReplaceAll(expr, varRangeAlt, strconv.FormatInt(rangeSRounded, 10)+"s")
+	expr = strings.ReplaceAll(expr, varRateIntervalAlt, intervalv2.FormatDuration(calculateRateInterval(interval, timeInterval, intervalCalculator)))
 	return expr
 }
 
diff --git a/pkg/tsdb/prometheus/time_series_query_test.go b/pkg/tsdb/prometheus/time_series_query_test.go
index 10992a03841..36aa40e045c 100644
--- a/pkg/tsdb/prometheus/time_series_query_test.go
+++ b/pkg/tsdb/prometheus/time_series_query_test.go
@@ -205,6 +205,25 @@ func TestPrometheus_timeSeriesQuery_parseTimeSeriesQuery(t *testing.T) {
 		require.Equal(t, "rate(ALERTS{job=\"test\" [2m]})", models[0].Expr)
 	})
 
+	t.Run("parsing query model with ${__interval} variable", func(t *testing.T) {
+		timeRange := backend.TimeRange{
+			From: now,
+			To:   now.Add(48 * time.Hour),
+		}
+
+		query := queryContext(`{
+			"expr": "rate(ALERTS{job=\"test\" [${__interval}]})",
+			"format": "time_series",
+			"intervalFactor": 1,
+			"refId": "A"
+		}`, timeRange)
+
+		dsInfo := &DatasourceInfo{}
+		models, err := service.parseTimeSeriesQuery(query, dsInfo)
+		require.NoError(t, err)
+		require.Equal(t, "rate(ALERTS{job=\"test\" [2m]})", models[0].Expr)
+	})
+
 	t.Run("parsing query model with $__interval_ms variable", func(t *testing.T) {
 		timeRange := backend.TimeRange{
 			From: now,
@@ -243,6 +262,25 @@ func TestPrometheus_timeSeriesQuery_parseTimeSeriesQuery(t *testing.T) {
 		require.Equal(t, "rate(ALERTS{job=\"test\" [120000]}) + rate(ALERTS{job=\"test\" [2m]})", models[0].Expr)
 	})
 
+	t.Run("parsing query model with ${__interval_ms} and ${__interval} variable", func(t *testing.T) {
+		timeRange := backend.TimeRange{
+			From: now,
+			To:   now.Add(48 * time.Hour),
+		}
+
+		query := queryContext(`{
+			"expr": "rate(ALERTS{job=\"test\" [${__interval_ms}]}) + rate(ALERTS{job=\"test\" [${__interval}]})",
+			"format": "time_series",
+			"intervalFactor": 1,
+			"refId": "A"
+		}`, timeRange)
+
+		dsInfo := &DatasourceInfo{}
+		models, err := service.parseTimeSeriesQuery(query, dsInfo)
+		require.NoError(t, err)
+		require.Equal(t, "rate(ALERTS{job=\"test\" [120000]}) + rate(ALERTS{job=\"test\" [2m]})", models[0].Expr)
+	})
+
 	t.Run("parsing query model with $__range variable", func(t *testing.T) {
 		timeRange := backend.TimeRange{
 			From: now,
@@ -281,6 +319,25 @@ func TestPrometheus_timeSeriesQuery_parseTimeSeriesQuery(t *testing.T) {
 		require.Equal(t, "rate(ALERTS{job=\"test\" [172800]})", models[0].Expr)
 	})
 
+	t.Run("parsing query model with ${__range_s} variable", func(t *testing.T) {
+		timeRange := backend.TimeRange{
+			From: now,
+			To:   now.Add(48 * time.Hour),
+		}
+
+		query := queryContext(`{
+			"expr": "rate(ALERTS{job=\"test\" [${__range_s}s]})",
+			"format": "time_series",
+			"intervalFactor": 1,
+			"refId": "A"
+		}`, timeRange)
+
+		dsInfo := &DatasourceInfo{}
+		models, err := service.parseTimeSeriesQuery(query, dsInfo)
+		require.NoError(t, err)
+		require.Equal(t, "rate(ALERTS{job=\"test\" [172800s]})", models[0].Expr)
+	})
+
 	t.Run("parsing query model with $__range_s variable below 0.5s", func(t *testing.T) {
 		timeRange := backend.TimeRange{
 			From: now,