diff --git a/cypress/e2e/29-sql-editor.cy.ts b/cypress/e2e/29-sql-editor.cy.ts
index d8e6aed9b..86299d5f6 100644
--- a/cypress/e2e/29-sql-editor.cy.ts
+++ b/cypress/e2e/29-sql-editor.cy.ts
@@ -27,6 +27,26 @@ describe('SQL editors', () => {
 		ndv.getters.sqlEditorContainer().should('contain', 'SELECT * FROM `testTable` LIMIT 10');
 	});
 
+	it('should update expression output dropdown as the query is edited', () => {
+		workflowPage.actions.addInitialNodeToCanvas('MySQL', {
+			action: 'Execute a SQL query',
+		});
+		ndv.actions.close();
+
+		workflowPage.actions.openNode('When clicking "Test workflow"');
+		ndv.actions.setPinnedData([{ table: 'test_table' }]);
+		ndv.actions.close();
+
+		workflowPage.actions.openNode('MySQL');
+		ndv.getters
+			.sqlEditorContainer()
+			.find('.cm-content')
+			.type('SELECT * FROM {{ $json.table }}', { parseSpecialCharSequences: false });
+		workflowPage.getters
+			.inlineExpressionEditorOutput()
+			.should('have.text', 'SELECT * FROM test_table');
+	});
+
 	it('should not push NDV header out with a lot of code in Postgres editor', () => {
 		workflowPage.actions.addInitialNodeToCanvas('Postgres', {
 			action: 'Execute a SQL query',
diff --git a/packages/editor-ui/src/components/HtmlEditor/HtmlEditor.vue b/packages/editor-ui/src/components/HtmlEditor/HtmlEditor.vue
index 5aba6b063..01d4ea5a5 100644
--- a/packages/editor-ui/src/components/HtmlEditor/HtmlEditor.vue
+++ b/packages/editor-ui/src/components/HtmlEditor/HtmlEditor.vue
@@ -43,6 +43,7 @@ import { enterKeyMap, tabKeyMap } from '../CodeNodeEditor/baseExtensions';
 import { codeNodeEditorTheme } from '../CodeNodeEditor/theme';
 import type { Range, Section } from './types';
 import { nonTakenRanges } from './utils';
+import { isEqual } from 'lodash-es';
 
 export default defineComponent({
 	name: 'HtmlEditor',
@@ -79,6 +80,16 @@ export default defineComponent({
 			editorState: null as EditorState | null,
 		};
 	},
+	watch: {
+		displayableSegments(segments, newSegments) {
+			if (isEqual(segments, newSegments)) return;
+
+			highlighter.removeColor(this.editor, this.plaintextSegments);
+			highlighter.addColor(this.editor, this.resolvableSegments);
+
+			this.$emit('update:modelValue', this.editor?.state.doc.toString());
+		},
+	},
 	computed: {
 		doc(): string {
 			return this.editor.state.doc.toString();
@@ -124,13 +135,10 @@ export default defineComponent({
 				EditorView.editable.of(!this.isReadOnly),
 				EditorState.readOnly.of(this.isReadOnly),
 				EditorView.updateListener.of((viewUpdate: ViewUpdate) => {
-					if (!viewUpdate.docChanged) return;
+					if (!this.editor || !viewUpdate.docChanged) return;
 
-					this.getHighlighter()?.removeColor(this.editor, this.htmlSegments);
-					this.getHighlighter()?.addColor(this.editor, this.resolvableSegments);
-
-					// eslint-disable-next-line @typescript-eslint/no-base-to-string
-					this.$emit('update:modelValue', this.editor?.state.doc.toString());
+					// Force segments value update by keeping track of editor state
+					this.editorState = this.editor.state;
 				}),
 			];
 		},
diff --git a/packages/editor-ui/src/components/SqlEditor/SqlEditor.vue b/packages/editor-ui/src/components/SqlEditor/SqlEditor.vue
index fd33c1ea0..087f85374 100644
--- a/packages/editor-ui/src/components/SqlEditor/SqlEditor.vue
+++ b/packages/editor-ui/src/components/SqlEditor/SqlEditor.vue
@@ -1,6 +1,6 @@
 <template>
 	<div v-on-click-outside="onBlur" :class="$style.sqlEditor">
-		<div ref="sqlEditor" data-test-id="sql-editor-container"></div>
+		<div :class="$style.codemirror" ref="sqlEditor" data-test-id="sql-editor-container"></div>
 		<slot name="suffix" />
 		<InlineExpressionEditorOutput
 			v-if="!fillParent"
@@ -49,6 +49,7 @@ import {
 import { defineComponent } from 'vue';
 import { enterKeyMap, tabKeyMap } from '../CodeNodeEditor/baseExtensions';
 import { codeNodeEditorTheme } from '../CodeNodeEditor/theme';
+import { isEqual } from 'lodash-es';
 
 const SQL_DIALECTS = {
 	StandardSQL,
@@ -171,12 +172,10 @@ export default defineComponent({
 					dropCursor(),
 					bracketMatching(),
 					EditorView.updateListener.of((viewUpdate: ViewUpdate) => {
-						if (!viewUpdate.docChanged || !this.editor) return;
+						if (!this.editor || !viewUpdate.docChanged) return;
 
-						highlighter.removeColor(this.editor as EditorView, this.plaintextSegments);
-						highlighter.addColor(this.editor as EditorView, this.resolvableSegments);
-
-						this.$emit('update:modelValue', this.editor?.state.doc.toString());
+						// Force segments value update by keeping track of editor state
+						this.editorState = this.editor.state;
 					}),
 				);
 			}
@@ -184,18 +183,13 @@ export default defineComponent({
 		},
 	},
 	watch: {
-		'ndvStore.ndvInputData'() {
-			this.editor?.dispatch({
-				changes: {
-					from: 0,
-					to: this.editor.state.doc.length,
-					insert: this.modelValue,
-				},
-			});
+		displayableSegments(segments, newSegments) {
+			if (isEqual(segments, newSegments)) return;
 
-			setTimeout(() => {
-				this.editor?.contentDOM.blur();
-			});
+			highlighter.removeColor(this.editor, this.plaintextSegments);
+			highlighter.addColor(this.editor, this.resolvableSegments);
+
+			this.$emit('update:modelValue', this.editor?.state.doc.toString());
 		},
 	},
 	mounted() {
@@ -244,9 +238,9 @@ export default defineComponent({
 .sqlEditor {
 	position: relative;
 	height: 100%;
+}
 
-	& > div {
-		height: 100%;
-	}
+.codemirror {
+	height: 100%;
 }
 </style>
diff --git a/packages/editor-ui/src/mixins/expressionManager.ts b/packages/editor-ui/src/mixins/expressionManager.ts
index 2e7b79efa..46e800d34 100644
--- a/packages/editor-ui/src/mixins/expressionManager.ts
+++ b/packages/editor-ui/src/mixins/expressionManager.ts
@@ -13,6 +13,7 @@ import type { EditorView } from '@codemirror/view';
 import type { TargetItem } from '@/Interface';
 import type { Html, Plaintext, RawSegment, Resolvable, Segment } from '@/types/expressions';
 import { useWorkflowHelpers } from '@/composables/useWorkflowHelpers';
+import { isEqual } from 'lodash-es';
 
 export const expressionManager = defineComponent({
 	props: {
@@ -98,12 +99,17 @@ export const expressionManager = defineComponent({
 
 				if (skipSegments.includes(node.type.name)) return;
 
-				rawSegments.push({
+				const newSegment: RawSegment = {
 					from: node.from,
 					to: node.to,
 					text,
 					token: node.type.name === 'Resolvable' ? 'Resolvable' : 'Plaintext',
-				});
+				};
+
+				// Avoid duplicates
+				if (isEqual(newSegment, rawSegments.at(-1))) return;
+
+				rawSegments.push(newSegment);
 			});
 
 			return rawSegments.reduce<Segment[]>((acc, segment) => {