diff --git a/packages/grafana-prometheus/src/querycache/QueryCache.test.ts b/packages/grafana-prometheus/src/querycache/QueryCache.test.ts
index 01cd25fd14f..28e10381b61 100644
--- a/packages/grafana-prometheus/src/querycache/QueryCache.test.ts
+++ b/packages/grafana-prometheus/src/querycache/QueryCache.test.ts
@@ -7,7 +7,11 @@ import { QueryEditorMode } from '../querybuilder/shared/types';
 import { PromQuery } from '../types';
 
 import { CacheRequestInfo, findDatapointStep, QueryCache } from './QueryCache';
-import { IncrementalStorageDataFrameScenarios, trimmedFirstPointInPromFrames } from './QueryCacheTestData';
+import {
+  differentDisplayNameFromDS,
+  trimmedFirstPointInPromFrames,
+  IncrementalStorageDataFrameScenarios,
+} from './QueryCacheTestData';
 
 // Will not interpolate vars!
 const interpolateStringTest = (query: PromQuery) => {
@@ -124,7 +128,7 @@ describe('QueryCache: Generic', function () {
       }),
       {
         requests: [], // unused
-        targSigs: cache,
+        targetSignatures: cache,
         shouldCache: true,
       },
       firstFrames
@@ -148,7 +152,7 @@ describe('QueryCache: Generic', function () {
       secondRequest,
       {
         requests: [], // unused
-        targSigs: cache,
+        targetSignatures: cache,
         shouldCache: true,
       },
       secondFrames
@@ -241,7 +245,7 @@ describe('QueryCache: Prometheus', function () {
         request,
         {
           requests: [], // unused
-          targSigs: targetSignatures,
+          targetSignatures: targetSignatures,
           shouldCache: true,
         },
         firstFrames
@@ -265,7 +269,7 @@ describe('QueryCache: Prometheus', function () {
         secondRequest,
         {
           requests: [], // unused
-          targSigs: targetSignatures,
+          targetSignatures: targetSignatures,
           shouldCache: true,
         },
         secondFrames
@@ -387,9 +391,9 @@ describe('QueryCache: Prometheus', function () {
       panelId: panelId,
     });
 
-    const requestInfo = {
+    const requestInfo: CacheRequestInfo<PromQuery> = {
       requests: [], // unused
-      targSigs: cache,
+      targetSignatures: cache,
       shouldCache: true,
     };
     const targetSignature = `1=1|${interval}|${JSON.stringify(request.rangeRaw ?? '')}`;
@@ -407,7 +411,7 @@ describe('QueryCache: Prometheus', function () {
       }),
       {
         requests: [], // unused
-        targSigs: cache,
+        targetSignatures: cache,
         shouldCache: true,
       },
       secondFrames
@@ -430,7 +434,7 @@ describe('QueryCache: Prometheus', function () {
       }),
       {
         requests: [], // unused
-        targSigs: cache,
+        targetSignatures: cache,
         shouldCache: true,
       },
       thirdFrames
@@ -537,7 +541,7 @@ describe('QueryCache: Prometheus', function () {
     request.targets[0].interval = '1m';
     const requestInfo: CacheRequestInfo<PromQuery> = {
       requests: [], // unused
-      targSigs: cache,
+      targetSignatures: cache,
       shouldCache: true,
     };
     const targetSignature = `1=1|${interval}|${JSON.stringify(request.rangeRaw ?? '')}`;
@@ -558,6 +562,87 @@ describe('QueryCache: Prometheus', function () {
     expect(cacheRequest.requests[0]).toBe(request);
     expect(cacheRequest.shouldCache).toBe(true);
   });
+
+  it('should always use the newest config information', () => {
+    const storage = new QueryCache<PromQuery>({
+      getTargetSignature: getPrometheusTargetSignature,
+      overlapString: '10m',
+    });
+
+    // Initial request with custom legend info {{org}}-customLegend
+    const firstFrames = differentDisplayNameFromDS.first.dataFrames as unknown as DataFrame[];
+
+    // Second request with legend __auto which results having no displayNameFromDS
+    const secondFrames = differentDisplayNameFromDS.second.dataFrames as unknown as DataFrame[];
+
+    const cache = new Map<string, string>();
+    const interval = 15000;
+
+    // start time of scenario
+    const firstFrom = dateTime(new Date(1726829205000));
+    const firstTo = dateTime(new Date(1726829832515));
+    const firstRange: TimeRange = {
+      from: firstFrom,
+      to: firstTo,
+      raw: {
+        from: 'now-1h',
+        to: 'now',
+      },
+    };
+
+    const secondFrom = dateTime(new Date(1726829220000));
+    const secondTo = dateTime(new Date(1726829903931));
+    const secondRange: TimeRange = {
+      from: secondFrom,
+      to: secondTo,
+      raw: {
+        from: 'now-1h',
+        to: 'now',
+      },
+    };
+
+    // Signifier definition
+    const dashboardId = `dashid`;
+    const panelId = 200;
+    const targetIdentity = `${dashboardId}|${panelId}|A`;
+
+    const request = mockPromRequest({
+      range: firstRange,
+      dashboardUID: dashboardId,
+      panelId: panelId,
+      app: 'first_app',
+    });
+
+    const requestInfo: CacheRequestInfo<PromQuery> = {
+      requests: [], // unused
+      targetSignatures: cache,
+      shouldCache: true,
+    };
+    const targetSignature = `1=1|${interval}|${JSON.stringify(request.rangeRaw ?? '')}`;
+    cache.set(targetIdentity, targetSignature);
+
+    const firstQueryResult = storage.procFrames(request, requestInfo, firstFrames);
+
+    expect(firstQueryResult[0].fields[1].config.displayNameFromDS).toBeDefined();
+    expect(firstQueryResult[0].fields[1].config.displayNameFromDS).toEqual('rutgerkerkhoffdevuseast-customLegend');
+
+    const secondQueryResult = storage.procFrames(
+      mockPromRequest({
+        range: secondRange,
+        dashboardUID: dashboardId,
+        panelId: panelId,
+        app: 'second_app',
+      }),
+      {
+        requests: [], // unused
+        targetSignatures: cache,
+        shouldCache: true,
+      },
+      secondFrames
+    );
+
+    expect(secondQueryResult[0].fields[1].config.displayNameFromDS).not.toBeDefined();
+  });
 });
 
 describe('findDataPointStep', () => {
diff --git a/packages/grafana-prometheus/src/querycache/QueryCache.ts b/packages/grafana-prometheus/src/querycache/QueryCache.ts
index 9b06746b7cb..3afc3344f20 100644
--- a/packages/grafana-prometheus/src/querycache/QueryCache.ts
+++ b/packages/grafana-prometheus/src/querycache/QueryCache.ts
@@ -23,7 +23,7 @@ type TargetIdent = string;
 
 // query + template variables + interval + raw time range
 // used for full target cache busting -> full range re-query
-type TargetSig = string;
+type TargetSignature = string;
 type TimestampMs = number;
 type SupportedQueryTypes = PromQuery;
 type ApplyInterpolation = (str: string, scopedVars?: ScopedVars) => string;
@@ -32,14 +32,14 @@ type ApplyInterpolation = (str: string, scopedVars?: ScopedVars) => string;
 export const defaultPrometheusQueryOverlapWindow = '10m';
 
 interface TargetCache {
-  sig: TargetSig;
+  signature: TargetSignature;
   prevTo: TimestampMs;
   frames: DataFrame[];
 }
 
 export interface CacheRequestInfo<T extends SupportedQueryTypes> {
   requests: Array<DataQueryRequest<T>>;
-  targSigs: Map<TargetIdent, TargetSig>;
+  targetSignatures: Map<TargetIdent, TargetSignature>;
   shouldCache: boolean;
 }
 
@@ -48,13 +48,13 @@ export interface CacheRequestInfo<T extends SupportedQueryTypes> {
  * This is the string used to uniquely identify a field within a "target"
  * @param field
  */
-export const getFieldIdent = (field: Field) => `${field.type}|${field.name}|${JSON.stringify(field.labels ?? '')}`;
+export const getFieldIdentity = (field: Field) => `${field.type}|${field.name}|${JSON.stringify(field.labels ?? '')}`;
 
 /**
  * NOMENCLATURE
  * Target: The request target (DataQueryRequest), i.e. a specific query reference within a panel
- * Ident: Identity: the string that is not expected to change
- * Sig: Signature: the string that is expected to change, upon which we wipe the cache fields
+ * Identity: the string that is not expected to change
+ * Signature: the string that is expected to change, upon which we wipe the cache fields
  */
 export class QueryCache<T extends SupportedQueryTypes> {
   private overlapWindowMs: number;
@@ -97,20 +97,20 @@ export class QueryCache<T extends SupportedQueryTypes> {
     let doPartialQuery = shouldCache;
     let prevTo: TimestampMs | undefined = undefined;
 
-    // pre-compute reqTargSigs
-    const reqTargSigs = new Map<TargetIdent, TargetSig>();
-    request.targets.forEach((targ) => {
-      let targIdent = `${request.dashboardUID}|${request.panelId}|${targ.refId}`;
-      let targSig = this.getTargetSignature(request, targ); // ${request.maxDataPoints} ?
-      reqTargSigs.set(targIdent, targSig);
+    // pre-compute reqTargetSignatures
+    const reqTargetSignatures = new Map<TargetIdent, TargetSignature>();
+    request.targets.forEach((target) => {
+      let targetIdentity = `${request.dashboardUID}|${request.panelId}|${target.refId}`;
+      let targetSignature = this.getTargetSignature(request, target); // ${request.maxDataPoints} ?
+      reqTargetSignatures.set(targetIdentity, targetSignature);
     });
 
     // figure out if new query range or new target props trigger full cache invalidation & re-query
-    for (const [targIdent, targSig] of reqTargSigs) {
-      let cached = this.cache.get(targIdent);
-      let cachedSig = cached?.sig;
+    for (const [targetIdentity, targetSignature] of reqTargetSignatures) {
+      let cached = this.cache.get(targetIdentity);
+      let cachedSig = cached?.signature;
 
-      if (cachedSig !== targSig) {
+      if (cachedSig !== targetSignature) {
         doPartialQuery = false;
       } else {
         // only do partial queries when new request range follows prior request range (possibly with overlap)
@@ -142,14 +142,14 @@ export class QueryCache<T extends SupportedQueryTypes> {
         },
       };
     } else {
-      reqTargSigs.forEach((targSig, targIdent) => {
+      reqTargetSignatures.forEach((targSig, targIdent) => {
         this.cache.delete(targIdent);
       });
     }
 
     return {
       requests: [request],
-      targSigs: reqTargSigs,
+      targetSignatures: reqTargetSignatures,
       shouldCache,
     };
   }
@@ -168,13 +168,13 @@ export class QueryCache<T extends SupportedQueryTypes> {
       const respByTarget = new Map<TargetIdent, DataFrame[]>();
 
       respFrames.forEach((frame: DataFrame) => {
-        let targIdent = `${request.dashboardUID}|${request.panelId}|${frame.refId}`;
+        let targetIdent = `${request.dashboardUID}|${request.panelId}|${frame.refId}`;
 
-        let frames = respByTarget.get(targIdent);
+        let frames = respByTarget.get(targetIdent);
 
         if (!frames) {
           frames = [];
-          respByTarget.set(targIdent, frames);
+          respByTarget.set(targetIdent, frames);
         }
 
         frames.push(frame);
@@ -182,8 +182,8 @@ export class QueryCache<T extends SupportedQueryTypes> {
 
       let outFrames: DataFrame[] = [];
 
-      respByTarget.forEach((respFrames, targIdent) => {
-        let cachedFrames = (targIdent ? this.cache.get(targIdent)?.frames : null) ?? [];
+      respByTarget.forEach((respFrames, targetIdentity) => {
+        let cachedFrames = (targetIdentity ? this.cache.get(targetIdentity)?.frames : null) ?? [];
 
         respFrames.forEach((respFrame: DataFrame) => {
           // skip empty frames
@@ -193,9 +193,9 @@ export class QueryCache<T extends SupportedQueryTypes> {
 
           // frames are identified by their second (non-time) field's name + labels
           // TODO: maybe also frame.meta.type?
-          let respFrameIdent = getFieldIdent(respFrame.fields[1]);
+          let respFrameIdentity = getFieldIdentity(respFrame.fields[1]);
 
-          let cachedFrame = cachedFrames.find((cached) => getFieldIdent(cached.fields[1]) === respFrameIdent);
+          let cachedFrame = cachedFrames.find((cached) => getFieldIdentity(cached.fields[1]) === respFrameIdentity);
 
           if (!cachedFrame) {
             // append new unknown frames
@@ -213,6 +213,9 @@ export class QueryCache<T extends SupportedQueryTypes> {
             if (amendedTable) {
               for (let i = 0; i < amendedTable.length; i++) {
                 cachedFrame.fields[i].values = amendedTable[i];
+                if (cachedFrame.fields[i].config.displayNameFromDS !== respFrame.fields[i].config.displayNameFromDS) {
+                  cachedFrame.fields[i].config.displayNameFromDS = respFrame.fields[i].config.displayNameFromDS;
+                }
               }
               cachedFrame.length = cachedFrame.fields[0].values.length;
             }
@@ -239,8 +242,8 @@ export class QueryCache<T extends SupportedQueryTypes> {
           }
         });
 
-        this.cache.set(targIdent, {
-          sig: requestInfo.targSigs.get(targIdent)!,
+        this.cache.set(targetIdentity, {
+          signature: requestInfo.targetSignatures.get(targetIdentity)!,
           frames: nonEmptyCachedFrames,
           prevTo: newTo,
         });
diff --git a/packages/grafana-prometheus/src/querycache/QueryCacheTestData.ts b/packages/grafana-prometheus/src/querycache/QueryCacheTestData.ts
index 91aca344f2f..ae283225f1b 100644
--- a/packages/grafana-prometheus/src/querycache/QueryCacheTestData.ts
+++ b/packages/grafana-prometheus/src/querycache/QueryCacheTestData.ts
@@ -1006,3 +1006,258 @@ export const IncrementalStorageDataFrameScenarios = {
     },
   },
 };
+
+export const differentDisplayNameFromDS = {
+  first: {
+    dataFrames: [
+      {
+        refId: 'A',
+        meta: {
+          type: 'timeseries-multi',
+          typeVersion: [0, 1],
+          custom: {
+            resultType: 'matrix',
+          },
+          executedQueryString:
+            'Expr: sum by (org, stackId)(count_over_time(hosted_grafana:grafana_datasource_loki_orgs_stacks_queries:count2m{org=~".*", stackId=~".*"}[5m]))\nStep: 5m0s',
+        },
+        fields: [
+          {
+            name: 'Time',
+            type: 'time',
+            typeInfo: {
+              frame: 'time.Time',
+            },
+            config: {
+              interval: 300000,
+            },
+            values: [1726829100000, 1726829400000, 1726829700000],
+            entities: {},
+          },
+          {
+            name: 'Value',
+            type: 'number',
+            typeInfo: {
+              frame: 'float64',
+            },
+            labels: {
+              org: 'rutgerkerkhoffdevuseast',
+              stackId: '2791',
+            },
+            config: {
+              displayNameFromDS: 'rutgerkerkhoffdevuseast-customLegend',
+            },
+            values: [3, 2, 3],
+            entities: {},
+          },
+        ],
+        length: 3,
+      },
+      {
+        refId: 'A',
+        meta: {
+          type: 'timeseries-multi',
+          typeVersion: [0, 1],
+          custom: {
+            resultType: 'matrix',
+          },
+        },
+        fields: [
+          {
+            name: 'Time',
+            type: 'time',
+            typeInfo: {
+              frame: 'time.Time',
+            },
+            config: {
+              interval: 300000,
+            },
+            values: [1726829100000, 1726829400000, 1726829700000],
+            entities: {},
+          },
+          {
+            name: 'Value',
+            type: 'number',
+            typeInfo: {
+              frame: 'float64',
+            },
+            labels: {
+              org: 'securityops',
+              stackId: '1533',
+            },
+            config: {
+              displayNameFromDS: 'securityops-customLegend',
+            },
+            values: [3, 2, 3],
+            entities: {},
+          },
+        ],
+        length: 3,
+      },
+      {
+        refId: 'A',
+        meta: {
+          type: 'timeseries-multi',
+          typeVersion: [0, 1],
+          custom: {
+            resultType: 'matrix',
+          },
+        },
+        fields: [
+          {
+            name: 'Time',
+            type: 'time',
+            typeInfo: {
+              frame: 'time.Time',
+            },
+            config: {
+              interval: 300000,
+            },
+            values: [1726829100000, 1726829400000, 1726829700000],
+            entities: {},
+          },
+          {
+            name: 'Value',
+            type: 'number',
+            typeInfo: {
+              frame: 'float64',
+            },
+            labels: {
+              org: 'stephaniehingtgen',
+              stackId: '3740',
+            },
+            config: {
+              displayNameFromDS: 'stephaniehingtgen-customLegend',
+            },
+            values: [3, 2, 3],
+            entities: {},
+          },
+        ],
+        length: 3,
+      },
+    ],
+  },
+  second: {
+    dataFrames: [
+      {
+        refId: 'A',
+        meta: {
+          type: 'timeseries-multi',
+          typeVersion: [0, 1],
+          custom: {
+            resultType: 'matrix',
+          },
+          executedQueryString:
+            'Expr: sum by (org, stackId)(count_over_time(hosted_grafana:grafana_datasource_loki_orgs_stacks_queries:count2m{org=~".*", stackId=~".*"}[5m]))\nStep: 5m0s',
+        },
+        fields: [
+          {
+            name: 'Time',
+            type: 'time',
+            typeInfo: {
+              frame: 'time.Time',
+            },
+            config: {
+              interval: 300000,
+            },
+            values: [1726829100000, 1726829400000, 1726829700000],
+            entities: {},
+          },
+          {
+            name: 'Value',
+            type: 'number',
+            typeInfo: {
+              frame: 'float64',
+            },
+            labels: {
+              org: 'rutgerkerkhoffdevuseast',
+              stackId: '2791',
+            },
+            config: {},
+            values: [3, 2, 3],
+            entities: {},
+          },
+        ],
+        length: 3,
+      },
+      {
+        refId: 'A',
+        meta: {
+          type: 'timeseries-multi',
+          typeVersion: [0, 1],
+          custom: {
+            resultType: 'matrix',
+          },
+        },
+        fields: [
+          {
+            name: 'Time',
+            type: 'time',
+            typeInfo: {
+              frame: 'time.Time',
+            },
+            config: {
+              interval: 300000,
+            },
+            values: [1726829100000, 1726829400000, 1726829700000],
+            entities: {},
+          },
+          {
+            name: 'Value',
+            type: 'number',
+            typeInfo: {
+              frame: 'float64',
+            },
+            labels: {
+              org: 'securityops',
+              stackId: '1533',
+            },
+            config: {},
+            values: [3, 2, 3],
+            entities: {},
+          },
+        ],
+        length: 3,
+      },
+      {
+        refId: 'A',
+        meta: {
+          type: 'timeseries-multi',
+          typeVersion: [0, 1],
+          custom: {
+            resultType: 'matrix',
+          },
+        },
+        fields: [
+          {
+            name: 'Time',
+            type: 'time',
+            typeInfo: {
+              frame: 'time.Time',
+            },
+            config: {
+              interval: 300000,
+            },
+            values: [1726829100000, 1726829400000, 1726829700000],
+            entities: {},
+          },
+          {
+            name: 'Value',
+            type: 'number',
+            typeInfo: {
+              frame: 'float64',
+            },
+            labels: {
+              org: 'stephaniehingtgen',
+              stackId: '3740',
+            },
+            config: {},
+            values: [3, 2, 3],
+            entities: {},
+          },
+        ],
+        length: 3,
+      },
+    ],
+  },
+};