diff --git a/public/app/features/variables/pickers/OptionsPicker/reducer.test.ts b/public/app/features/variables/pickers/OptionsPicker/reducer.test.ts
index 97011a2a9b9..2cfc16fd43f 100644
--- a/public/app/features/variables/pickers/OptionsPicker/reducer.test.ts
+++ b/public/app/features/variables/pickers/OptionsPicker/reducer.test.ts
@@ -861,4 +861,85 @@ describe('optionsPickerReducer', () => {
         });
     });
   });
+
+  describe('when large data for updateOptionsAndFilter', () => {
+    it('then state should be correct', () => {
+      const searchQuery = 'option:11256';
+
+      const options: VariableOption[] = [];
+      for (let index = 0; index <= OPTIONS_LIMIT + 11256; index++) {
+        options.push({ text: `option:${index}`, value: `option:${index}`, selected: false });
+      }
+
+      const { initialState } = getVariableTestContext({
+        queryValue: searchQuery,
+      });
+
+      reducerTester<OptionsPickerState>()
+        .givenReducer(optionsPickerReducer, cloneDeep(initialState))
+        .whenActionIsDispatched(updateOptionsAndFilter(options))
+        .thenStateShouldEqual({
+          ...cloneDeep(initialState),
+          options: [{ text: 'option:11256', value: 'option:11256', selected: false }],
+          selectedValues: [],
+          queryValue: 'option:11256',
+          highlightIndex: 0,
+        });
+    });
+  });
+
+  describe('when large data for updateOptionsFromSearch is dispatched and variable has searchFilter', () => {
+    it('then state should be correct', () => {
+      const searchQuery = '__searchFilter';
+      const options = [{ text: 'All', value: '$__all', selected: true }];
+
+      for (let i = 0; i <= OPTIONS_LIMIT + 137; i++) {
+        options.push({ text: `option${i}`, value: `option${i}`, selected: false });
+      }
+      const { initialState } = getVariableTestContext({
+        queryValue: searchQuery,
+      });
+
+      reducerTester<OptionsPickerState>()
+        .givenReducer(optionsPickerReducer, cloneDeep(initialState))
+        .whenActionIsDispatched(updateOptionsFromSearch(options))
+        .thenStateShouldEqual({
+          ...initialState,
+          options: options.slice(0, OPTIONS_LIMIT),
+          selectedValues: [{ text: 'All', value: '$__all', selected: true }],
+          highlightIndex: 0,
+        });
+    });
+  });
+
+  describe('when large data for showOptions', () => {
+    it('then state should be correct', () => {
+      const { initialState } = getVariableTestContext({});
+      const payload = {
+        type: 'query',
+        query: '',
+        options: [{ text: 'option0', value: 'option0', selected: false }],
+        multi: false,
+        id: '0',
+      } as QueryVariableModel;
+      const checkOptions = [];
+      for (let index = 0; index < OPTIONS_LIMIT; index++) {
+        checkOptions.push({ text: `option${index}`, value: `option${index}`, selected: false });
+      }
+      for (let i = 1; i <= OPTIONS_LIMIT + 137; i++) {
+        payload.options.push({ text: `option${i}`, value: `option${i}`, selected: false });
+      }
+
+      reducerTester<OptionsPickerState>()
+        .givenReducer(optionsPickerReducer, cloneDeep(initialState))
+        .whenActionIsDispatched(showOptions(payload))
+        .thenStateShouldEqual({
+          ...initialState,
+          options: checkOptions,
+          id: '0',
+          multi: false,
+          queryValue: '',
+        });
+    });
+  });
 });
diff --git a/public/app/features/variables/pickers/OptionsPicker/reducer.ts b/public/app/features/variables/pickers/OptionsPicker/reducer.ts
index ecd6dbe18ea..c587d4da667 100644
--- a/public/app/features/variables/pickers/OptionsPicker/reducer.ts
+++ b/public/app/features/variables/pickers/OptionsPicker/reducer.ts
@@ -78,6 +78,7 @@ const updateOptions = (state: OptionsPickerState): OptionsPickerState => {
 
     return { ...option, selected };
   });
+  state.options = applyLimit(state.options);
   return state;
 };
 
@@ -234,18 +235,17 @@ const optionsPickerSlice = createSlice({
     updateOptionsAndFilter: (state, action: PayloadAction<VariableOption[]>): OptionsPickerState => {
       const searchQuery = trim((state.queryValue ?? '').toLowerCase());
 
-      const filteredOptions = action.payload.filter(option => {
+      state.options = action.payload.filter(option => {
         const text = Array.isArray(option.text) ? option.text.toString() : option.text;
         return text.toLowerCase().indexOf(searchQuery) !== -1;
       });
 
-      state.options = applyLimit(filteredOptions);
       state.highlightIndex = 0;
 
       return applyStateChanges(state, updateDefaultSelection, updateOptions);
     },
     updateOptionsFromSearch: (state, action: PayloadAction<VariableOption[]>): OptionsPickerState => {
-      state.options = applyLimit(action.payload);
+      state.options = action.payload;
       state.highlightIndex = 0;
 
       return applyStateChanges(state, updateDefaultSelection, updateOptions);