diff --git a/public/app/plugins/datasource/grafana-azure-monitor-datasource/__mocks__/errors.ts b/public/app/plugins/datasource/grafana-azure-monitor-datasource/__mocks__/errors.ts
index cda4bd5c15b..2b39b394be4 100644
--- a/public/app/plugins/datasource/grafana-azure-monitor-datasource/__mocks__/errors.ts
+++ b/public/app/plugins/datasource/grafana-azure-monitor-datasource/__mocks__/errors.ts
@@ -20,3 +20,15 @@ export function invalidNamespaceError() {
     },
   };
 }
+
+export function invalidSubscriptionError() {
+  return {
+    status: 400,
+    data: {
+      error: {
+        code: 'InvalidSubscriptionId',
+        message: "The provided subscription identifier 'abc' is malformed or invalid.",
+      },
+    },
+  };
+}
diff --git a/public/app/plugins/datasource/grafana-azure-monitor-datasource/components/VariableEditor/VariableEditor.test.tsx b/public/app/plugins/datasource/grafana-azure-monitor-datasource/components/VariableEditor/VariableEditor.test.tsx
index b41c65e11a2..f9a233d1853 100644
--- a/public/app/plugins/datasource/grafana-azure-monitor-datasource/components/VariableEditor/VariableEditor.test.tsx
+++ b/public/app/plugins/datasource/grafana-azure-monitor-datasource/components/VariableEditor/VariableEditor.test.tsx
@@ -6,8 +6,6 @@ import createMockDatasource from '../../__mocks__/datasource';
 import { AzureMonitorQuery, AzureQueryType } from '../../types';
 import { select } from 'react-select-event';
 import * as ui from '@grafana/ui';
-// eslint-disable-next-line lodash/import-scope
-import _ from 'lodash';
 
 // Have to mock CodeEditor because it doesnt seem to work in tests???
 jest.mock('@grafana/ui', () => ({
@@ -17,11 +15,6 @@ jest.mock('@grafana/ui', () => ({
   },
 }));
 
-jest.mock('lodash', () => ({
-  ...jest.requireActual<typeof _>('lodash'),
-  debounce: jest.fn((fn: unknown) => fn),
-}));
-
 describe('VariableEditor:', () => {
   it('can select a query type', async () => {
     const onChange = jest.fn();
@@ -141,7 +134,6 @@ describe('VariableEditor:', () => {
         } as AzureMonitorQuery,
         onChange: jest.fn(),
         datasource: createMockDatasource(),
-        debounceTime: 1,
       };
       render(<VariableEditor {...props} />);
       await waitFor(() => screen.queryByText('Grafana template variable function'));
diff --git a/public/app/plugins/datasource/grafana-azure-monitor-datasource/components/VariableEditor/VariableEditor.tsx b/public/app/plugins/datasource/grafana-azure-monitor-datasource/components/VariableEditor/VariableEditor.tsx
index 7ba610a5ee9..c29bb1fb66d 100644
--- a/public/app/plugins/datasource/grafana-azure-monitor-datasource/components/VariableEditor/VariableEditor.tsx
+++ b/public/app/plugins/datasource/grafana-azure-monitor-datasource/components/VariableEditor/VariableEditor.tsx
@@ -1,13 +1,12 @@
 import { SelectableValue } from '@grafana/data';
 import { Alert, InlineField, Input, Select } from '@grafana/ui';
-import React, { ChangeEvent, useCallback, useEffect, useMemo, useState } from 'react';
+import React, { ChangeEvent, useCallback, useEffect, useState } from 'react';
 import { AzureMonitorQuery, AzureQueryType } from '../../types';
 import LogsQueryEditor from '../LogsQueryEditor';
 import DataSource from '../../datasource';
 import useLastError from '../../utils/useLastError';
 import { Space } from '../Space';
 import { migrateStringQueriesToObjectQueries } from '../../grafanaTemplateVariableFns';
-import { debounce } from 'lodash';
 
 const AZURE_QUERY_VARIABLE_TYPE_OPTIONS = [
   { label: 'Grafana Query Function', value: AzureQueryType.GrafanaTemplateVariableFn },
@@ -46,18 +45,18 @@ const GrafanaTemplateVariableFnInput = ({
     },
     [datasource, query, updateQuery]
   );
-  const debouncedRunQuery = useMemo(() => debounce(onRunQuery, 500), [onRunQuery]);
 
   const onChange = (event: ChangeEvent<HTMLInputElement>) => {
     setInputVal(event.target.value);
-    debouncedRunQuery(event.target.value);
   };
+
   return (
     <InlineField label="Grafana template variable function">
       <Input
         placeholder={'type a grafana template variable function, ex: Subscriptions()'}
         value={inputVal}
         onChange={onChange}
+        onBlur={() => onRunQuery(inputVal)}
       />
     </InlineField>
   );
diff --git a/public/app/plugins/datasource/grafana-azure-monitor-datasource/variables.test.ts b/public/app/plugins/datasource/grafana-azure-monitor-datasource/variables.test.ts
index bda352bf58e..ebf06536a29 100644
--- a/public/app/plugins/datasource/grafana-azure-monitor-datasource/variables.test.ts
+++ b/public/app/plugins/datasource/grafana-azure-monitor-datasource/variables.test.ts
@@ -3,6 +3,7 @@ import { from } from 'rxjs';
 import { AzureMonitorQuery, AzureQueryType } from './types';
 import { VariableSupport } from './variables';
 import createMockDatasource from './__mocks__/datasource';
+import { invalidSubscriptionError } from './__mocks__/errors';
 
 jest.mock('@grafana/runtime', () => ({
   ...((jest.requireActual('@grafana/runtime') as unknown) as object),
@@ -499,4 +500,33 @@ describe('VariableSupport', () => {
       done();
     });
   });
+
+  it('should handle http error', (done) => {
+    const error = invalidSubscriptionError();
+    const variableSupport = new VariableSupport(
+      createMockDatasource({
+        azureLogAnalyticsDatasource: {
+          defaultSubscriptionId: 'defaultSubscriptionId',
+        },
+        getResourceGroups: jest.fn().mockRejectedValue(error),
+      })
+    );
+    const mockRequest = {
+      targets: [
+        {
+          refId: 'A',
+          queryType: AzureQueryType.GrafanaTemplateVariableFn,
+          grafanaTemplateVariableFn: {
+            kind: 'ResourceGroupsQuery',
+            rawQuery: 'ResourceGroups()',
+          },
+        } as AzureMonitorQuery,
+      ],
+    } as DataQueryRequest<AzureMonitorQuery>;
+    const observables = variableSupport.query(mockRequest);
+    observables.subscribe((result: DataQueryResponseData) => {
+      expect(result.error?.message).toBe(error.data.error.message);
+      done();
+    });
+  });
 });
diff --git a/public/app/plugins/datasource/grafana-azure-monitor-datasource/variables.ts b/public/app/plugins/datasource/grafana-azure-monitor-datasource/variables.ts
index 42917fd96dd..1489942d7fe 100644
--- a/public/app/plugins/datasource/grafana-azure-monitor-datasource/variables.ts
+++ b/public/app/plugins/datasource/grafana-azure-monitor-datasource/variables.ts
@@ -12,6 +12,7 @@ import { AzureQueryType, AzureMonitorQuery } from './types';
 import { getTemplateSrv } from '@grafana/runtime';
 import { migrateStringQueriesToObjectQueries } from './grafanaTemplateVariableFns';
 import { GrafanaTemplateVariableQuery } from './types/templateVariables';
+import messageFromError from './utils/messageFromError';
 export class VariableSupport extends CustomVariableSupport<DataSource, AzureMonitorQuery> {
   constructor(private readonly datasource: DataSource) {
     super();
@@ -26,10 +27,14 @@ export class VariableSupport extends CustomVariableSupport<DataSource, AzureMoni
       const queryObj = await migrateStringQueriesToObjectQueries(request.targets[0], { datasource: this.datasource });
 
       if (queryObj.queryType === AzureQueryType.GrafanaTemplateVariableFn && queryObj.grafanaTemplateVariableFn) {
-        const templateVariablesResults = await this.callGrafanaTemplateVariableFn(queryObj.grafanaTemplateVariableFn);
-        return {
-          data: templateVariablesResults ? [toDataFrame(templateVariablesResults)] : [],
-        };
+        try {
+          const templateVariablesResults = await this.callGrafanaTemplateVariableFn(queryObj.grafanaTemplateVariableFn);
+          return {
+            data: templateVariablesResults ? [toDataFrame(templateVariablesResults)] : [],
+          };
+        } catch (err) {
+          return { data: [], error: { message: messageFromError(err) } };
+        }
       }
       request.targets[0] = queryObj;
       return lastValueFrom(this.datasource.query(request));