diff --git a/openpype/hosts/blender/api/plugin.py b/openpype/hosts/blender/api/plugin.py
index a612e53bb6b..2348f59875d 100644
--- a/openpype/hosts/blender/api/plugin.py
+++ b/openpype/hosts/blender/api/plugin.py
@@ -765,11 +765,14 @@ def _load_library_datablocks(
                     if isinstance(d, bpy.types.Collection):
                         override_datablocks.update(d.all_objects)
 
-            # Ensure user override NOTE: will be unecessary after BL3.4
             for d in override_datablocks:
+                # Ensure user override NOTE: will be unecessary after BL3.4
                 if d and hasattr(d.override_library, "is_system_override"):
                     d.override_library.is_system_override = False
 
+                # Set source_name
+                d["source_name"] = d.override_library.reference.name
+
             # Add override datablocks to datablocks
             datablocks.update(override_datablocks)
 
@@ -1188,9 +1191,8 @@ def replace_container(
                             and old_datablock.get("source_name")
                             == d.get("source_name")
                         ),
-                        key=lambda d: d.name_full,
-                        # Library datablocks names are before override ones
-                        reverse=True,
+                        # Put source datablocks at the end
+                        key=lambda d: 1 if d.library else 0,
                     )
                 ),
                 None,