diff --git a/public/app/features/templating/templateValuesSrv.js b/public/app/features/templating/templateValuesSrv.js
index 7c411377d87..85a3b062229 100644
--- a/public/app/features/templating/templateValuesSrv.js
+++ b/public/app/features/templating/templateValuesSrv.js
@@ -102,8 +102,8 @@ function (angular, _, kbn) {
       }
 
       return promise.then(function() {
-        var option = _.findWhere(variable.options, { text: urlValue });
-        option = option || { text: urlValue, value: urlValue };
+        var option = _.findWhere(variable.options, {text: urlValue});
+        option = option || {text: urlValue, value: urlValue};
 
         self.updateAutoInterval(variable);
         return self.setVariableValue(variable, option, true);
@@ -125,8 +125,8 @@ function (angular, _, kbn) {
     this.setVariableValue = function(variable, option, initPhase) {
       variable.current = angular.copy(option);
 
-      if (_.isArray(variable.current.value)) {
-        variable.current.text = variable.current.value.join(' + ');
+      if (_.isArray(variable.current.text)) {
+        variable.current.text = variable.current.text.join(' + ');
       }
 
       self.selectOptionsForCurrentValue(variable);
@@ -224,6 +224,7 @@ function (angular, _, kbn) {
 
     this.selectOptionsForCurrentValue = function(variable) {
       var i, y, value, option;
+      var selected = [];
 
       for (i = 0; i < variable.options.length; i++) {
         option = variable.options[i];
@@ -233,12 +234,16 @@ function (angular, _, kbn) {
             value = variable.current.value[y];
             if (option.value === value) {
               option.selected = true;
+              selected.push(option);
             }
           }
         } else if (option.value === variable.current.value) {
           option.selected = true;
+          selected.push(option);
         }
       }
+
+      return selected;
     };
 
     this.validateVariableSelectionState = function(variable) {
@@ -248,17 +253,18 @@ function (angular, _, kbn) {
       }
 
       if (_.isArray(variable.current.value)) {
-        self.selectOptionsForCurrentValue(variable);
-        // updated selected value
-        var selected = {
-          value: _.map(_.filter(variable.options, {selected: true}), function(op) {
-            return op.value;
-          })
-        };
+        var selected = self.selectOptionsForCurrentValue(variable);
+
         // if none pick first
-        if (selected.value.length === 0) {
+        if (selected.length === 0) {
           selected = variable.options[0];
+        } else {
+          selected = {
+            value: _.map(selected, function(val) {return val.value;}),
+            text: _.map(selected, function(val) {return val.text;}).join(' + '),
+          };
         }
+
         return self.setVariableValue(variable, selected, false);
       } else {
         var currentOption = _.findWhere(variable.options, {text: variable.current.text});
diff --git a/public/test/specs/templateValuesSrv-specs.js b/public/test/specs/templateValuesSrv-specs.js
index 79aa2eafd8d..7a8d8c1fccb 100644
--- a/public/test/specs/templateValuesSrv-specs.js
+++ b/public/test/specs/templateValuesSrv-specs.js
@@ -166,6 +166,27 @@ define([
       });
     });
 
+    describeUpdateVariable('query variable with multi select and $__all selected', function(scenario) {
+      scenario.setup(function() {
+        scenario.variable = {
+          type: 'query',
+          query: '',
+          name: 'test',
+          includeAll: true,
+          current: {
+            value: ['$__all'],
+            text: 'All'
+          }
+        };
+        scenario.queryResult = [{text: 'val5'}, {text: 'val6'}];
+      });
+
+      it('should keep current All value', function() {
+        expect(scenario.variable.current.value).to.eql(['$__all']);
+        expect(scenario.variable.current.text).to.eql('All');
+      });
+    });
+
     describeUpdateVariable('query variable with numeric results', function(scenario) {
       scenario.setup(function() {
         scenario.variable = { type: 'query', query: '', name: 'test', current: {} };