diff --git a/public/app/directives/valueSelectDropdown.js b/public/app/directives/valueSelectDropdown.js
index 14791eba0f3..f1763514f25 100644
--- a/public/app/directives/valueSelectDropdown.js
+++ b/public/app/directives/valueSelectDropdown.js
@@ -34,7 +34,7 @@ function (angular, app, _) {
           var tag = { text: value, selected: false };
           _.each(vm.variable.current.tags, function(tagObj) {
             if (tagObj.text === value) {
-              tag.selected = true;
+              tag = tagObj;
             }
           });
           return tag;
diff --git a/public/test/specs/valueSelectDropdown-specs.js b/public/test/specs/valueSelectDropdown-specs.js
index 9fadb893467..f329e3f6738 100644
--- a/public/test/specs/valueSelectDropdown-specs.js
+++ b/public/test/specs/valueSelectDropdown-specs.js
@@ -138,7 +138,7 @@ function () {
     describe("Given variable with selected tags", function() {
       beforeEach(function() {
         ctrl.variable = {
-          current: {text: 'server-1', value: 'server-1', tags: [{text: 'key1'}] },
+          current: {text: 'server-1', value: 'server-1', tags: [{text: 'key1', selected: true}] },
           options: [
             {text: 'server-1', value: 'server-1'},
             {text: 'server-2', value: 'server-2'},