diff --git a/sqlmesh/core/model/common.py b/sqlmesh/core/model/common.py
index 704f3e02fe..11ddc8234b 100644
--- a/sqlmesh/core/model/common.py
+++ b/sqlmesh/core/model/common.py
@@ -157,7 +157,7 @@ def _add_variables_to_python_env(
 
     if blueprint_variables:
         blueprint_variables = {
-            k: SqlValue(sql=v.sql(dialect=dialect)) if isinstance(v, exp.Expression) else v
+            k.lower(): SqlValue(sql=v.sql(dialect=dialect)) if isinstance(v, exp.Expression) else v
             for k, v in blueprint_variables.items()
         }
         python_env[c.SQLMESH_BLUEPRINT_VARS] = Executable.value(
diff --git a/sqlmesh/migrations/v0087_normalize_blueprint_variables.py b/sqlmesh/migrations/v0087_normalize_blueprint_variables.py
new file mode 100644
index 0000000000..8878bc8019
--- /dev/null
+++ b/sqlmesh/migrations/v0087_normalize_blueprint_variables.py
@@ -0,0 +1,138 @@
+"""
+Normalizes blueprint variables, so Customer_Field is stored as customer_field in the `python_env`:
+
+MODEL (
+  ...
+  blueprints (
+    Customer_Field := 1
+  )
+);
+
+SELECT
+  @customer_field AS col
+"""
+
+import json
+import logging
+from dataclasses import dataclass
+
+from sqlglot import exp
+from sqlmesh.core.console import get_console
+from sqlmesh.utils.migration import index_text_type, blob_text_type
+
+
+logger = logging.getLogger(__name__)
+
+
+SQLMESH_BLUEPRINT_VARS = "__sqlmesh__blueprint__vars__"
+
+
+# Make sure `SqlValue` is defined so it can be used by `eval` call in the migration
+@dataclass
+class SqlValue:
+    """A SQL string representing a generated SQLGlot AST."""
+
+    sql: str
+
+
+def migrate(state_sync, **kwargs):  # type: ignore
+    import pandas as pd
+
+    engine_adapter = state_sync.engine_adapter
+    schema = state_sync.schema
+    snapshots_table = "_snapshots"
+    if schema:
+        snapshots_table = f"{schema}.{snapshots_table}"
+
+    migration_needed = False
+    new_snapshots = []
+
+    for (
+        name,
+        identifier,
+        version,
+        snapshot,
+        kind_name,
+        updated_ts,
+        unpaused_ts,
+        ttl_ms,
+        unrestorable,
+    ) in engine_adapter.fetchall(
+        exp.select(
+            "name",
+            "identifier",
+            "version",
+            "snapshot",
+            "kind_name",
+            "updated_ts",
+            "unpaused_ts",
+            "ttl_ms",
+            "unrestorable",
+        ).from_(snapshots_table),
+        quote_identifiers=True,
+    ):
+        parsed_snapshot = json.loads(snapshot)
+        node = parsed_snapshot["node"]
+        python_env = node.get("python_env") or {}
+
+        migrate_snapshot = False
+
+        if blueprint_vars_executable := python_env.get(SQLMESH_BLUEPRINT_VARS):
+            blueprint_vars = eval(blueprint_vars_executable["payload"])
+
+            for var, value in dict(blueprint_vars).items():
+                lowercase_var = var.lower()
+                if var != lowercase_var:
+                    if lowercase_var in blueprint_vars:
+                        get_console().log_warning(
+                            "SQLMesh is unable to fully migrate the state database, because the "
+                            f"model '{node['name']}' contains two blueprint variables ('{var}' and "
+                            f"'{lowercase_var}') that resolve to the same value ('{lowercase_var}'). "
+                            "This may result in unexpected changes being reported by the next "
+                            "`sqlmesh plan` command. If this happens, consider renaming either variable, "
+                            "so that the lowercase version of their names are different."
+                        )
+                    else:
+                        del blueprint_vars[var]
+                        blueprint_vars[lowercase_var] = value
+                        migrate_snapshot = True
+
+            if migrate_snapshot:
+                migration_needed = True
+                blueprint_vars_executable["payload"] = repr(blueprint_vars)
+
+        new_snapshots.append(
+            {
+                "name": name,
+                "identifier": identifier,
+                "version": version,
+                "snapshot": json.dumps(parsed_snapshot),
+                "kind_name": kind_name,
+                "updated_ts": updated_ts,
+                "unpaused_ts": unpaused_ts,
+                "ttl_ms": ttl_ms,
+                "unrestorable": unrestorable,
+            }
+        )
+
+    if migration_needed and new_snapshots:
+        engine_adapter.delete_from(snapshots_table, "TRUE")
+
+        index_type = index_text_type(engine_adapter.dialect)
+        blob_type = blob_text_type(engine_adapter.dialect)
+
+        engine_adapter.insert_append(
+            snapshots_table,
+            pd.DataFrame(new_snapshots),
+            columns_to_types={
+                "name": exp.DataType.build(index_type),
+                "identifier": exp.DataType.build(index_type),
+                "version": exp.DataType.build(index_type),
+                "snapshot": exp.DataType.build(blob_type),
+                "kind_name": exp.DataType.build("text"),
+                "updated_ts": exp.DataType.build("bigint"),
+                "unpaused_ts": exp.DataType.build("bigint"),
+                "ttl_ms": exp.DataType.build("bigint"),
+                "unrestorable": exp.DataType.build("boolean"),
+            },
+        )
diff --git a/tests/core/test_model.py b/tests/core/test_model.py
index 4c2f30e2f7..14c29165b7 100644
--- a/tests/core/test_model.py
+++ b/tests/core/test_model.py
@@ -9396,14 +9396,14 @@ def entrypoint(evaluator):
         MODEL (
           name @{customer}.my_table,
           blueprints (
-            (customer := customer1, customer_field := 'bar'),
-            (customer := customer2, customer_field := qux),
+            (customer := customer1, Customer_Field := 'bar'),
+            (customer := customer2, Customer_Field := qux),
           ),
           kind FULL
         );
 
         SELECT
-          @customer_field AS foo,
+          @customer_FIELD AS foo,
           @{customer_field} AS foo2,
           @BLUEPRINT_VAR('customer_field') AS foo3,
         FROM @{customer}.my_source