diff --git a/public/app/plugins/datasource/testdata/datasource.ts b/public/app/plugins/datasource/testdata/datasource.ts
index 7703b96aea1..a27c211a482 100644
--- a/public/app/plugins/datasource/testdata/datasource.ts
+++ b/public/app/plugins/datasource/testdata/datasource.ts
@@ -12,6 +12,7 @@ import {
   LiveChannelScope,
   LoadingState,
   TimeRange,
+  ScopedVars,
 } from '@grafana/data';
 import { Scenario, TestDataQuery } from './types';
 import { DataSourceWithBackend, getBackendSrv, getGrafanaLiveSrv, getTemplateSrv, TemplateSrv } from '@grafana/runtime';
@@ -42,6 +43,8 @@ export class TestDataDataSource extends DataSourceWithBackend<TestDataQuery> {
         continue;
       }
 
+      this.resolveTemplateVariables(target, options.scopedVars);
+
       switch (target.scenarioId) {
         case 'live':
           streams.push(runGrafanaLiveQuery(target, options));
@@ -98,6 +101,10 @@ export class TestDataDataSource extends DataSourceWithBackend<TestDataQuery> {
     return merge(...streams);
   }
 
+  resolveTemplateVariables(query: TestDataQuery, scopedVars: ScopedVars) {
+    query.labels = this.templateSrv.replace(query.labels!, scopedVars);
+  }
+
   annotationDataTopicTest(target: TestDataQuery, req: DataQueryRequest<TestDataQuery>): Observable<DataQueryResponse> {
     const events = this.buildFakeAnnotationEvents(req.range, 10);
     const dataFrame = new ArrayDataFrame(events);