diff --git a/frontend/src/container/NewDashboard/DashboardVariablesSelection/__test__/dashboardVariables.test.tsx b/frontend/src/container/NewDashboard/DashboardVariablesSelection/__test__/dashboardVariables.test.tsx
new file mode 100644
index 00000000000..f1270631e02
--- /dev/null
+++ b/frontend/src/container/NewDashboard/DashboardVariablesSelection/__test__/dashboardVariables.test.tsx
@@ -0,0 +1,60 @@
+import { onUpdateVariableNode } from '../util';
+import { onUpdateVariableNodeMock } from './mock';
+
+describe('dashboardVariables - utilities and processors', () => {
+	const { graph, topologicalOrder } = onUpdateVariableNodeMock;
+
+	test.each([
+		{
+			scenario: 'root element',
+			nodeToUpdate: 'deployment_environment',
+			expected: [
+				'deployment_environment',
+				'service_name',
+				'endpoint',
+				'http_status_code',
+			],
+		},
+		{
+			scenario: 'middle child',
+			nodeToUpdate: 'k8s_node_name',
+			expected: ['k8s_node_name', 'k8s_namespace_name'],
+		},
+		{
+			scenario: 'leaf element',
+			nodeToUpdate: 'http_status_code',
+			expected: ['http_status_code'],
+		},
+		{
+			scenario: 'node not in graph',
+			nodeToUpdate: 'unknown',
+			expected: [],
+		},
+		{
+			scenario: 'node not in topological order',
+			nodeToUpdate: 'unknown',
+			expected: [],
+		},
+	])(
+		'should update variable node when $scenario',
+		({ nodeToUpdate, expected }) => {
+			const updatedVariables: string[] = [];
+
+			onUpdateVariableNode(nodeToUpdate, graph, topologicalOrder, (node) =>
+				updatedVariables.push(node),
+			);
+
+			expect(updatedVariables).toEqual(expected);
+		},
+	);
+
+	it('should return empty array when topological order is empty', () => {
+		const updatedVariables: string[] = [];
+
+		onUpdateVariableNode('http_status_code', graph, [], (node) =>
+			updatedVariables.push(node),
+		);
+
+		expect(updatedVariables).toEqual([]);
+	});
+});
diff --git a/frontend/src/container/NewDashboard/DashboardVariablesSelection/__test__/mock.ts b/frontend/src/container/NewDashboard/DashboardVariablesSelection/__test__/mock.ts
new file mode 100644
index 00000000000..2ce9ee9d301
--- /dev/null
+++ b/frontend/src/container/NewDashboard/DashboardVariablesSelection/__test__/mock.ts
@@ -0,0 +1,56 @@
+export const checkAPIInvocationMock = {
+	variablesToGetUpdated: [],
+	variableData: {
+		name: 'k8s_namespace_name',
+		key: '937ecbae-b24b-4d6d-8cc4-5d5b8d53569b',
+		customValue: '',
+		description: '',
+		id: '937ecbae-b24b-4d6d-8cc4-5d5b8d53569b',
+		modificationUUID: '8ad2442d-8b4d-4c64-848e-af847d1d0eec',
+		multiSelect: false,
+		order: 7,
+		queryValue:
+			"SELECT JSONExtractString(labels, 'k8s_namespace_name') AS k8s_namespace_name\nFROM signoz_metrics.distributed_time_series_v4_1day\nWHERE metric_name = 'k8s_pod_cpu_time' AND JSONExtractString(labels, 'k8s_cluster_name') = {{.k8s_cluster_name}} AND JSONExtractString(labels, 'k8s_node_name') IN {{.k8s_node_name}}\nGROUP BY k8s_namespace_name",
+		showALLOption: false,
+		sort: 'DISABLED',
+		textboxValue: '',
+		type: 'QUERY',
+		selectedValue: 'saasmonitor',
+		allSelected: false,
+	},
+	parentDependencyGraph: {
+		deployment_environment: [],
+		service_name: ['deployment_environment'],
+		endpoint: ['deployment_environment', 'service_name'],
+		http_status_code: ['endpoint'],
+		k8s_cluster_name: [],
+		environment: [],
+		k8s_node_name: ['k8s_cluster_name'],
+		k8s_namespace_name: ['k8s_cluster_name', 'k8s_node_name'],
+	},
+};
+
+export const onUpdateVariableNodeMock = {
+	nodeToUpdate: 'deployment_environment',
+	graph: {
+		deployment_environment: ['service_name', 'endpoint'],
+		service_name: ['endpoint'],
+		endpoint: ['http_status_code'],
+		http_status_code: [],
+		k8s_cluster_name: ['k8s_node_name', 'k8s_namespace_name'],
+		environment: [],
+		k8s_node_name: ['k8s_namespace_name'],
+		k8s_namespace_name: [],
+	},
+	topologicalOrder: [
+		'deployment_environment',
+		'k8s_cluster_name',
+		'environment',
+		'service_name',
+		'k8s_node_name',
+		'endpoint',
+		'k8s_namespace_name',
+		'http_status_code',
+	],
+	callback: jest.fn(),
+};
diff --git a/frontend/src/container/NewDashboard/DashboardVariablesSelection/util.ts b/frontend/src/container/NewDashboard/DashboardVariablesSelection/util.ts
index 9a2c62f395f..470c0bc3d86 100644
--- a/frontend/src/container/NewDashboard/DashboardVariablesSelection/util.ts
+++ b/frontend/src/container/NewDashboard/DashboardVariablesSelection/util.ts
@@ -32,6 +32,7 @@ export const convertVariablesToDbFormat = (
 	}, {});
 
 const getDependentVariables = (queryValue: string): string[] => {
+	console.log('getDependentVariables', queryValue);
 	const variableRegexPattern = /\{\{\s*?\.([^\s}]+)\s*?\}\}/g;
 
 	const matches = queryValue.match(variableRegexPattern);
@@ -46,6 +47,7 @@ export type VariableGraph = Record<string, string[]>;
 export const buildDependencies = (
 	variables: IDashboardVariable[],
 ): VariableGraph => {
+	console.log('buildDependencies', variables);
 	const graph: VariableGraph = {};
 
 	// Initialize empty arrays for all variables first
@@ -78,6 +80,7 @@ export const buildDependencies = (
 export const buildDependencyGraph = (
 	dependencies: VariableGraph,
 ): { order: string[]; graph: VariableGraph } => {
+	console.log('buildDependencyGraph', dependencies);
 	const inDegree: Record<string, number> = {};
 	const adjList: VariableGraph = {};
 
@@ -124,6 +127,7 @@ export const onUpdateVariableNode = (
 	topologicalOrder: string[],
 	callback: (node: string) => void,
 ): void => {
+	console.log('onUpdateVariableNode', nodeToUpdate, graph, topologicalOrder);
 	const visited = new Set<string>();
 
 	// Start processing from the node to update
@@ -141,6 +145,7 @@ export const onUpdateVariableNode = (
 export const buildParentDependencyGraph = (
 	graph: VariableGraph,
 ): VariableGraph => {
+	console.log('buildParentDependencyGraph', graph);
 	const parentGraph: VariableGraph = {};
 
 	// Initialize empty arrays for all nodes