diff --git a/pkg/mqtt/client.go b/pkg/mqtt/client.go
index bd36c87..1f15278 100644
--- a/pkg/mqtt/client.go
+++ b/pkg/mqtt/client.go
@@ -71,12 +71,13 @@ func (c *client) IsConnected() bool {
 	return c.client.IsConnectionOpen()
 }
 
-func (c *client) HandleMessage(_ paho.Client, msg paho.Message) {
+func (c *client) HandleMessage(topic string, payload []byte) {
 	message := Message{
 		Timestamp: time.Now(),
-		Value:     msg.Payload(),
+		Value:     payload,
 	}
-	c.topics.AddMessage(msg.Topic(), message)
+
+	c.topics.AddMessage(topic, message)
 }
 
 func (c *client) GetTopic(reqPath string) (*Topic, bool) {
@@ -104,9 +105,16 @@ func (c *client) Subscribe(reqPath string) *Topic {
 		return t
 	}
 
-	log.DefaultLogger.Debug("Subscribing to MQTT topic", "topic", t.Path)
-	if token := c.client.Subscribe(t.Path, 0, c.HandleMessage); token.Wait() && token.Error() != nil {
-		log.DefaultLogger.Error("Error subscribing to MQTT topic", "topic", t.Path, "error", token.Error())
+	log.DefaultLogger.Debug("Subscribing to MQTT topic", "topic", topicPath)
+
+	topic := resolveTopic(t.Path)
+
+	if token := c.client.Subscribe(topic, 0, func(_ paho.Client, m paho.Message) {
+		// by wrapping HandleMessage we can directly get the correct topicPath for the incoming topic
+		// and don't need to regex it against + and #.
+		c.HandleMessage(topicPath, []byte(m.Payload()))
+	}); token.Wait() && token.Error() != nil {
+		log.DefaultLogger.Error("Error subscribing to MQTT topic", "topic", topicPath, "error", token.Error())
 	}
 	c.topics.Store(t)
 	return t
@@ -126,7 +134,9 @@ func (c *client) Unsubscribe(reqPath string) {
 	}
 
 	log.DefaultLogger.Debug("Unsubscribing from MQTT topic", "topic", t.Path)
-	if token := c.client.Unsubscribe(t.Path); token.Wait() && token.Error() != nil {
+
+	topic := resolveTopic(t.Path)
+	if token := c.client.Unsubscribe(topic); token.Wait() && token.Error() != nil {
 		log.DefaultLogger.Error("Error unsubscribing from MQTT topic", "topic", t.Path, "error", token.Error())
 	}
 }
diff --git a/pkg/mqtt/topic.go b/pkg/mqtt/topic.go
index a254454..8e7db7f 100644
--- a/pkg/mqtt/topic.go
+++ b/pkg/mqtt/topic.go
@@ -2,6 +2,7 @@ package mqtt
 
 import (
 	"path"
+	"strings"
 	"sync"
 	"time"
 
@@ -97,3 +98,10 @@ func (tm *TopicMap) Store(t *Topic) {
 func (tm *TopicMap) Delete(key string) {
 	tm.Map.Delete(key)
 }
+
+// replace all __PLUS__ with + and one __HASH__ with #
+// Question: Why does grafana not allow + and # in query?
+func resolveTopic(topic string) string {
+	resolvedTopic := strings.ReplaceAll(topic, "__PLUS__", "+")
+	return strings.Replace(resolvedTopic, "__HASH__", "#", -1)
+}
diff --git a/src/datasource.ts b/src/datasource.ts
index 072fa78..b5d0b65 100644
--- a/src/datasource.ts
+++ b/src/datasource.ts
@@ -1,9 +1,21 @@
-import { DataSourceInstanceSettings } from '@grafana/data';
-import { DataSourceWithBackend } from '@grafana/runtime';
+import { DataSourceInstanceSettings, ScopedVars } from '@grafana/data';
+import { DataSourceWithBackend, getTemplateSrv } from '@grafana/runtime';
 import { MqttDataSourceOptions, MqttQuery } from './types';
 
 export class DataSource extends DataSourceWithBackend<MqttQuery, MqttDataSourceOptions> {
   constructor(instanceSettings: DataSourceInstanceSettings<MqttDataSourceOptions>) {
     super(instanceSettings);
   }
+
+  applyTemplateVariables(query: MqttQuery, scopedVars: ScopedVars): Record<string, any> {
+    let resolvedTopic = getTemplateSrv().replace(query.topic, scopedVars);
+    resolvedTopic = resolvedTopic.replace(/\+/gi, '__PLUS__');
+    resolvedTopic = resolvedTopic.replace(/\#/gi, '__HASH__');
+    const resolvedQuery: MqttQuery = {
+      ...query,
+      topic: resolvedTopic,
+    };
+
+    return resolvedQuery;
+  }
 }