diff --git a/app/client/src/widgets/SelectWidget/widget/derived.js b/app/client/src/widgets/SelectWidget/widget/derived.js
index 30612ed00db4..2642054ca7e2 100644
--- a/app/client/src/widgets/SelectWidget/widget/derived.js
+++ b/app/client/src/widgets/SelectWidget/widget/derived.js
@@ -5,16 +5,50 @@ export default {
       values = [],
       sourceData = props.sourceData || [];
 
+    const processOptionArray = (optionArray, sourceData) => {
+      if (!sourceData.length) return [];
+
+      const allEqual = optionArray.every((item, _, arr) => item === arr[0]);
+      const keyExistsInSource = optionArray[0] in sourceData[0];
+
+      return allEqual && keyExistsInSource
+        ? sourceData.map((d) => d[optionArray[0]])
+        : optionArray;
+    };
+
+    /**
+     * SourceData:
+     *  [{
+     *    "name": "Blue",
+     *    "code": "name"
+     *  },{
+     *    "name": "Green",
+     *    "code": "name"
+     *  },{
+     *    "name": "Red",
+     *    "code": "name"
+     *  }]
+     * The `Label key` in UI can take following values:
+     * 1. Normal string, without any quotes. e.g `name`
+     *    This can be assumed as a key in each item of sourceData. We search it in each item of sourceData.
+     * 2. Except this everything comes in `{{}}`. It can have 2 types of values:
+     *    a. Expressions that evaluate to a normal string. e.g `{{(() => `name`)()}}`
+     *        In this case evaluated value will be ['name', 'name', 'name'].
+     *        i. This can be assumed as a key in each item of sourceData. Handled by `allLabelsEqual` check.
+     *    b. Dynamic property accessed via `item` object. e.g `{{item.name}}`
+     *        In this case evaluated value will be actual values form sourceData ['Red', 'Green', 'Blue'].
+     *        Hence we can assume that this array is the labels array.
+     * */
     if (typeof props.optionLabel === "string") {
       labels = sourceData.map((d) => d[props.optionLabel]);
     } else if (_.isArray(props.optionLabel)) {
-      labels = sourceData.map((d, i) => d[props.optionLabel[i]]);
+      labels = processOptionArray(props.optionLabel, sourceData);
     }
 
     if (typeof props.optionValue === "string") {
       values = sourceData.map((d) => d[props.optionValue]);
     } else if (_.isArray(props.optionValue)) {
-      values = sourceData.map((d, i) => d[props.optionValue[i]]);
+      values = processOptionArray(props.optionValue, sourceData);
     }
 
     return sourceData.map((d, i) => ({
diff --git a/app/client/src/widgets/SelectWidget/widget/propertyUtils.ts b/app/client/src/widgets/SelectWidget/widget/propertyUtils.ts
index 049490662905..ef3d2bf69f72 100644
--- a/app/client/src/widgets/SelectWidget/widget/propertyUtils.ts
+++ b/app/client/src/widgets/SelectWidget/widget/propertyUtils.ts
@@ -138,6 +138,27 @@ export function labelKeyValidation(
       messages: [],
     };
   } else if (_.isArray(value)) {
+    /*
+     * Here assumption is that if evaluated array is all equal, then it is a key,
+     * and we can return the parsed value(from source data) as the options.
+     */
+    const areAllValuesEqual = value.every((item, _, arr) => item === arr[0]);
+
+    if (
+      areAllValuesEqual &&
+      props.sourceData[0].hasOwnProperty(String(value[0]))
+    ) {
+      const parsedValue = props.sourceData.map(
+        (d: Record<string, unknown>) => d[String(value[0])],
+      );
+
+      return {
+        parsed: parsedValue,
+        isValid: true,
+        messages: [],
+      };
+    }
+
     const errorIndex = value.findIndex((d) => !_.isString(d));
 
     return {
@@ -218,6 +239,27 @@ export function valueKeyValidation(
 
     options = sourceData.map((d: Record<string, unknown>) => d[value]);
   } else if (_.isArray(value)) {
+    /*
+     * Here assumption is that if evaluated array is all equal, then it is a key,
+     * and we can return the parsed value(from source data) as the options.
+     */
+    const areAllValuesEqual = value.every((item, _, arr) => item === arr[0]);
+
+    if (
+      areAllValuesEqual &&
+      props.sourceData[0].hasOwnProperty(String(value[0]))
+    ) {
+      const parsedValue = props.sourceData.map(
+        (d: Record<string, unknown>) => d[String(value[0])],
+      );
+
+      return {
+        parsed: parsedValue,
+        isValid: true,
+        messages: [],
+      };
+    }
+
     const errorIndex = value.findIndex(
       (d) =>
         !(_.isString(d) || (_.isNumber(d) && !_.isNaN(d)) || _.isBoolean(d)),