diff --git a/packages/scenes/src/variables/components/VariableValueSelectors.tsx b/packages/scenes/src/variables/components/VariableValueSelectors.tsx
index 22838d854..305ccd2f3 100644
--- a/packages/scenes/src/variables/components/VariableValueSelectors.tsx
+++ b/packages/scenes/src/variables/components/VariableValueSelectors.tsx
@@ -79,7 +79,7 @@ function VariableLabel({ variable, layout, hideLabel }: VariableSelectProps) {
       isLoading={state.loading}
       onCancel={() => variable.onCancel?.()}
       label={labelOrName}
-      error={state.error}
+      error={state.error?.message || state.error}
       layout={layout}
       description={state.description ?? undefined}
     />
diff --git a/packages/scenes/src/variables/sets/SceneVariableSet.test.tsx b/packages/scenes/src/variables/sets/SceneVariableSet.test.tsx
index 29d5da027..a5a582030 100644
--- a/packages/scenes/src/variables/sets/SceneVariableSet.test.tsx
+++ b/packages/scenes/src/variables/sets/SceneVariableSet.test.tsx
@@ -629,7 +629,7 @@ describe('SceneVariableList', () => {
 
       scene.activate();
 
-      expect(A.state.error).toBe('Danger!');
+      expect(A.state.error).toStrictEqual(new Error('Danger!'));
     });
 
     it('Should complete updating chained variables in case of error in all variables', () => {
@@ -665,11 +665,11 @@ describe('SceneVariableList', () => {
       scene.activate();
 
       expect(A.state.loading).toBe(false);
-      expect(A.state.error).toBe('Error in A');
+      expect(A.state.error).toStrictEqual(new Error('Error in A'));
       expect(B.state.loading).toBe(false);
-      expect(B.state.error).toBe('Error in B');
+      expect(B.state.error).toStrictEqual(new Error('Error in B'));
       expect(C.state.loading).toBe(false);
-      expect(C.state.error).toBe('Error in C');
+      expect(C.state.error).toStrictEqual(new Error('Error in C'));
     });
     it('Should complete updating chained variables in case of error in the first variable', () => {
       const A = new TestVariable({
@@ -702,7 +702,7 @@ describe('SceneVariableList', () => {
       scene.activate();
 
       expect(A.state.loading).toBe(false);
-      expect(A.state.error).toBe('Error in A');
+      expect(A.state.error).toStrictEqual(new Error('Error in A'));
 
       B.signalUpdateCompleted();
       expect(B.state.loading).toBe(false);
@@ -750,7 +750,7 @@ describe('SceneVariableList', () => {
 
       expect(B.state.loading).toBe(false);
       expect(B.state.value).toBe('');
-      expect(B.state.error).toBe('Error in B');
+      expect(B.state.error).toStrictEqual(new Error('Error in B'));
 
       C.signalUpdateCompleted();
       expect(C.state.loading).toBe(false);
diff --git a/packages/scenes/src/variables/sets/SceneVariableSet.ts b/packages/scenes/src/variables/sets/SceneVariableSet.ts
index b95efb7f7..aed845499 100644
--- a/packages/scenes/src/variables/sets/SceneVariableSet.ts
+++ b/packages/scenes/src/variables/sets/SceneVariableSet.ts
@@ -247,7 +247,7 @@ export class SceneVariableSet extends SceneObjectBase<SceneVariableSetState> imp
     this._updating.delete(variable);
     this._variablesToUpdate.delete(variable);
 
-    variable.setState({ loading: false, error: err.message });
+    variable.setState({ loading: false, error: err });
 
     console.error('SceneVariableSet updateAndValidate error', err);