diff --git a/public/app/features/dashboard-scene/panel-edit/VizPanelManager.test.tsx b/public/app/features/dashboard-scene/panel-edit/VizPanelManager.test.tsx
index 1b9eeded9e4..7c79f5798cc 100644
--- a/public/app/features/dashboard-scene/panel-edit/VizPanelManager.test.tsx
+++ b/public/app/features/dashboard-scene/panel-edit/VizPanelManager.test.tsx
@@ -4,7 +4,14 @@ import { DataQueryRequest, DataSourceApi, DataSourceInstanceSettings, LoadingSta
 import { calculateFieldTransformer } from '@grafana/data/src/transformations/transformers/calculateField';
 import { mockTransformationsRegistry } from '@grafana/data/src/utils/tests/mockTransformationsRegistry';
 import { config, locationService } from '@grafana/runtime';
-import { LocalValueVariable, SceneGridRow, SceneVariableSet, VizPanel, sceneGraph } from '@grafana/scenes';
+import {
+  CustomVariable,
+  LocalValueVariable,
+  SceneGridRow,
+  SceneVariableSet,
+  VizPanel,
+  sceneGraph,
+} from '@grafana/scenes';
 import { DataQuery, DataSourceJsonData, DataSourceRef } from '@grafana/schema';
 import { getDashboardSrv } from 'app/features/dashboard/services/DashboardSrv';
 import { InspectTab } from 'app/features/inspector/types';
@@ -801,6 +808,26 @@ describe('VizPanelManager', () => {
     expect(vizPanelManager.state.dsSettings).toEqual(instance1SettingsMock);
   });
 
+  it('Should default to the first variable value if panel is repeated', async () => {
+    const { scene, panel } = setupTest('panel-10');
+
+    scene.setState({
+      $variables: new SceneVariableSet({
+        variables: [
+          new CustomVariable({ name: 'custom', query: 'A,B,C', value: ['A', 'B', 'C'], text: ['A', 'B', 'C'] }),
+        ],
+      }),
+    });
+
+    scene.setState({ editPanel: buildPanelEditScene(panel) });
+
+    const vizPanelManager = scene.state.editPanel!.state.vizManager;
+    vizPanelManager.activate();
+
+    const variable = sceneGraph.lookupVariable('custom', vizPanelManager);
+    expect(variable?.getValue()).toBe('A');
+  });
+
   describe('Given a panel inside repeated row', () => {
     it('Should include row variable scope', () => {
       const { panel } = setupTest('panel-9');
diff --git a/public/app/features/dashboard-scene/panel-edit/VizPanelManager.tsx b/public/app/features/dashboard-scene/panel-edit/VizPanelManager.tsx
index 3e8721302ca..6878fd5e569 100644
--- a/public/app/features/dashboard-scene/panel-edit/VizPanelManager.tsx
+++ b/public/app/features/dashboard-scene/panel-edit/VizPanelManager.tsx
@@ -15,6 +15,8 @@ import {
 import { config, getDataSourceSrv, locationService } from '@grafana/runtime';
 import {
   DeepPartial,
+  LocalValueVariable,
+  MultiValueVariable,
   PanelBuilders,
   SceneComponentProps,
   SceneDataTransformer,
@@ -23,8 +25,10 @@ import {
   SceneObjectState,
   SceneObjectStateChangedEvent,
   SceneQueryRunner,
+  SceneVariableSet,
   SceneVariables,
   VizPanel,
+  sceneGraph,
 } from '@grafana/scenes';
 import { DataQuery, DataTransformerConfig, Panel } from '@grafana/schema';
 import { useStyles2 } from '@grafana/ui';
@@ -41,7 +45,7 @@ import { DashboardGridItem, RepeatDirection } from '../scene/DashboardGridItem';
 import { LibraryVizPanel } from '../scene/LibraryVizPanel';
 import { PanelTimeRange, PanelTimeRangeState } from '../scene/PanelTimeRange';
 import { gridItemToPanel, vizPanelToPanel } from '../serialization/transformSceneToSaveModel';
-import { getDashboardSceneFor, getPanelIdForVizPanel, getQueryRunnerFor } from '../utils/utils';
+import { getDashboardSceneFor, getMultiVariableValues, getPanelIdForVizPanel, getQueryRunnerFor } from '../utils/utils';
 
 export interface VizPanelManagerState extends SceneObjectState {
   panel: VizPanel;
@@ -97,6 +101,28 @@ export class VizPanelManager extends SceneObjectBase<VizPanelManagerState> {
       variables = gridItem.parent.state.$variables.clone();
     }
 
+    if (repeatOptions.repeat) {
+      const variable = sceneGraph.lookupVariable(repeatOptions.repeat, gridItem);
+
+      if (variable instanceof MultiValueVariable && variable.state.value.length) {
+        const { values, texts } = getMultiVariableValues(variable);
+
+        const varWithDefaultValue = new LocalValueVariable({
+          name: variable.state.name,
+          value: values[0],
+          text: String(texts[0]),
+        });
+
+        if (!variables) {
+          variables = new SceneVariableSet({
+            variables: [varWithDefaultValue],
+          });
+        } else {
+          variables.setState({ variables: [varWithDefaultValue] });
+        }
+      }
+    }
+
     return new VizPanelManager({
       $variables: variables,
       panel: sourcePanel.clone(),
diff --git a/public/app/features/dashboard-scene/panel-edit/testfiles/testDashboard.ts b/public/app/features/dashboard-scene/panel-edit/testfiles/testDashboard.ts
index a439bb2541d..f596a026b25 100644
--- a/public/app/features/dashboard-scene/panel-edit/testfiles/testDashboard.ts
+++ b/public/app/features/dashboard-scene/panel-edit/testfiles/testDashboard.ts
@@ -91,6 +91,102 @@ export const panelWithQueriesOnly = {
   type: 'timeseries',
 };
 
+export const repeatedPanel = {
+  datasource: {
+    type: 'grafana-testdata-datasource',
+    uid: 'gdev-testdata',
+  },
+  repeat: 'custom',
+  repeatDirection: 'h',
+  maxPerRow: 4,
+  fieldConfig: {
+    defaults: {
+      color: {
+        mode: 'palette-classic',
+      },
+      custom: {
+        axisBorderShow: false,
+        axisCenteredZero: false,
+        axisColorMode: 'text',
+        axisLabel: '',
+        axisPlacement: 'auto',
+        barAlignment: 0,
+        drawStyle: 'line',
+        fillOpacity: 0,
+        gradientMode: 'none',
+        hideFrom: {
+          legend: false,
+          tooltip: false,
+          viz: false,
+        },
+        insertNulls: false,
+        lineInterpolation: 'linear',
+        lineWidth: 1,
+        pointSize: 5,
+        scaleDistribution: {
+          type: 'linear',
+        },
+        showPoints: 'auto',
+        spanNulls: false,
+        stacking: {
+          group: 'A',
+          mode: 'none',
+        },
+        thresholdsStyle: {
+          mode: 'off',
+        },
+      },
+      mappings: [],
+      thresholds: {
+        mode: 'absolute',
+        steps: [
+          {
+            color: 'green',
+            value: null,
+          },
+          {
+            color: 'red',
+            value: 80,
+          },
+        ],
+      },
+    },
+    overrides: [],
+  },
+  gridPos: {
+    h: 8,
+    w: 12,
+    x: 0,
+    y: 0,
+  },
+  id: 1,
+  options: {
+    legend: {
+      calcs: [],
+      displayMode: 'list',
+      placement: 'bottom',
+      showLegend: true,
+    },
+    tooltip: {
+      mode: 'single',
+      sort: 'none',
+    },
+  },
+  targets: [
+    {
+      datasource: {
+        type: 'grafana-testdata-datasource',
+        uid: 'gdev-testdata',
+      },
+      refId: 'A',
+      scenarioId: 'random_walk',
+      seriesCount: 1,
+    },
+  ],
+  title: 'Panel with just queries',
+  type: 'timeseries',
+};
+
 export const panelWithTransformations = {
   datasource: {
     type: 'grafana-testdata-datasource',
@@ -636,6 +732,7 @@ export const testDashboard = {
     panelWithQueriesAndMixedDatasource,
     row,
     rowChild,
+    repeatedPanel,
   ],
   refresh: '',
   schemaVersion: 39,