diff --git a/extensions/sql-database-projects/src/common/constants.ts b/extensions/sql-database-projects/src/common/constants.ts
index 5a8ea1729205..62e47ef73335 100644
--- a/extensions/sql-database-projects/src/common/constants.ts
+++ b/extensions/sql-database-projects/src/common/constants.ts
@@ -120,7 +120,7 @@ export const enterSystemDbName = localize('enterSystemDbName', "Enter a database
 export const databaseNameRequiredVariableOptional = localize('databaseNameRequiredVariableOptional', "A database name is required. The database variable is optional.");
 export const databaseNameServerNameVariableRequired = localize('databaseNameServerNameVariableRequired', "A database name, server name, and server variable are required. The database variable is optional");
 export const otherServer = 'OtherServer';
-export const otherSeverVariable = '$(OtherServer)';
+export const otherSeverVariable = 'OtherServer';
 export const databaseProject = localize('databaseProject', "Database project");
 
 // Error messages
diff --git a/extensions/sql-database-projects/src/dialogs/addDatabaseReferenceDialog.ts b/extensions/sql-database-projects/src/dialogs/addDatabaseReferenceDialog.ts
index 565926e1adb5..9776b2451938 100644
--- a/extensions/sql-database-projects/src/dialogs/addDatabaseReferenceDialog.ts
+++ b/extensions/sql-database-projects/src/dialogs/addDatabaseReferenceDialog.ts
@@ -433,7 +433,7 @@ export class AddDatabaseReferenceDialog {
 		switch (this.currentReferenceType) {
 			case ReferenceType.project: {
 				this.databaseNameTextbox!.value = <string>this.projectDropdown?.value;
-				this.databaseVariableTextbox!.value = `$(${this.projectDropdown?.value})`;
+				this.databaseVariableTextbox!.value = `${this.projectDropdown?.value}`;
 				break;
 			}
 			case ReferenceType.systemDb: {
@@ -443,7 +443,7 @@ export class AddDatabaseReferenceDialog {
 			case ReferenceType.dacpac: {
 				const dacpacName = this.dacpacTextbox!.value ? path.parse(this.dacpacTextbox!.value!).name : '';
 				this.databaseNameTextbox!.value = dacpacName;
-				this.databaseVariableTextbox!.value = dacpacName ? `$(${dacpacName})` : '';
+				this.databaseVariableTextbox!.value = dacpacName ? `${dacpacName}` : '';
 				break;
 			}
 		}