diff --git a/public/app/features/datasources/components/picker/DataSourceDropdown.tsx b/public/app/features/datasources/components/picker/DataSourceDropdown.tsx
index 585c5665098..960c692faa0 100644
--- a/public/app/features/datasources/components/picker/DataSourceDropdown.tsx
+++ b/public/app/features/datasources/components/picker/DataSourceDropdown.tsx
@@ -16,7 +16,7 @@ import { DataSourceList } from './DataSourceList';
 import { DataSourceLogo, DataSourceLogoPlaceHolder } from './DataSourceLogo';
 import { DataSourceModal } from './DataSourceModal';
 import { PickerContentProps, DataSourceDropdownProps } from './types';
-import { dataSourceLabel } from './utils';
+import { dataSourceLabel, matchDataSourceWithSearch } from './utils';
 
 const INTERACTION_EVENT_NAME = 'dashboards_dspicker_clicked';
 const INTERACTION_ITEM = {
@@ -166,7 +166,7 @@ const PickerContent = React.forwardRef<HTMLDivElement, PickerContentProps>((prop
           {...props}
           current={current}
           onChange={changeCallback}
-          filter={(ds) => ds.name.toLowerCase().includes(filterTerm?.toLowerCase() ?? '')}
+          filter={(ds) => matchDataSourceWithSearch(ds, filterTerm)}
         ></DataSourceList>
       </div>
 
diff --git a/public/app/features/datasources/components/picker/DataSourceModal.tsx b/public/app/features/datasources/components/picker/DataSourceModal.tsx
index 5d101c5b4c0..315f8a55aca 100644
--- a/public/app/features/datasources/components/picker/DataSourceModal.tsx
+++ b/public/app/features/datasources/components/picker/DataSourceModal.tsx
@@ -23,6 +23,7 @@ import { DATASOURCES_ROUTES } from 'app/features/datasources/constants';
 import { AccessControlAction } from 'app/types';
 
 import { DataSourceList } from './DataSourceList';
+import { matchDataSourceWithSearch } from './utils';
 
 const INTERACTION_EVENT_NAME = 'dashboards_dspickermodal_clicked';
 const INTERACTION_ITEM = {
@@ -107,7 +108,7 @@ export function DataSourceModal({
             dashboard={false}
             mixed={false}
             variables
-            filter={(ds) => ds.name.includes(search) && !ds.meta.builtIn}
+            filter={(ds) => matchDataSourceWithSearch(ds, search) && !ds.meta.builtIn}
             onChange={onChangeDataSource}
             current={current}
           />
diff --git a/public/app/features/datasources/components/picker/utils.test.ts b/public/app/features/datasources/components/picker/utils.test.ts
index 163ca0f371f..3bd97048735 100644
--- a/public/app/features/datasources/components/picker/utils.test.ts
+++ b/public/app/features/datasources/components/picker/utils.test.ts
@@ -1,6 +1,6 @@
 import { DataSourceInstanceSettings, DataSourceRef } from '@grafana/data';
 
-import { isDataSourceMatch, getDataSourceCompareFn } from './utils';
+import { isDataSourceMatch, getDataSourceCompareFn, matchDataSourceWithSearch } from './utils';
 
 describe('isDataSourceMatch', () => {
   const dataSourceInstanceSettings = { uid: 'a' } as DataSourceInstanceSettings;
@@ -93,3 +93,39 @@ describe('getDataSouceCompareFn', () => {
     ] as DataSourceInstanceSettings[]);
   });
 });
+
+describe('matchDataSourceWithSearch', () => {
+  let dataSource: DataSourceInstanceSettings;
+
+  beforeEach(() => {
+    dataSource = {
+      name: 'My SQL DB',
+    } as DataSourceInstanceSettings;
+  });
+
+  it('should return true when the search term matches the data source name', () => {
+    const searchTerm = 'My SQL';
+    expect(matchDataSourceWithSearch(dataSource, searchTerm)).toBe(true);
+  });
+
+  it('should return true when the search term matches part of the data source name', () => {
+    const searchTerm = 'SQL';
+    expect(matchDataSourceWithSearch(dataSource, searchTerm)).toBe(true);
+  });
+
+  it('should return false when the search term does not match the data source name', () => {
+    const searchTerm = 'Oracle';
+    expect(matchDataSourceWithSearch(dataSource, searchTerm)).toBe(false);
+  });
+
+  it('should return true when the search term is empty', () => {
+    const searchTerm = '';
+    expect(matchDataSourceWithSearch(dataSource, searchTerm)).toBe(true);
+  });
+
+  it('should ignore case when matching the search term', () => {
+    dataSource.name = 'PostgreSQL DB';
+    const searchTerm = 'postgre';
+    expect(matchDataSourceWithSearch(dataSource, searchTerm)).toBe(true);
+  });
+});
diff --git a/public/app/features/datasources/components/picker/utils.ts b/public/app/features/datasources/components/picker/utils.ts
index fdca19ecf15..96edb7e5de6 100644
--- a/public/app/features/datasources/components/picker/utils.ts
+++ b/public/app/features/datasources/components/picker/utils.ts
@@ -87,3 +87,14 @@ export function getDataSourceCompareFn(
 
   return cmpDataSources;
 }
+
+/**
+ * Given a data source and a search term, returns true if the data source matches the search term.
+ * Useful to filter data sources by name containing an string.
+ * @param ds
+ * @param searchTerm
+ * @returns
+ */
+export function matchDataSourceWithSearch(ds: DataSourceInstanceSettings, searchTerm = '') {
+  return ds.name.toLowerCase().includes(searchTerm.toLowerCase());
+}