diff --git a/mysql-test/r/variables.result b/mysql-test/r/variables.result
index 8dff27bdd6f..2bcb749955e 100644
--- a/mysql-test/r/variables.result
+++ b/mysql-test/r/variables.result
@@ -1,8 +1,30 @@
 drop table if exists t1,t2;
-set @`test`=1,@TEST=3,@select=2,@t5=1.23456;
-select @test,@`select`,@TEST,@not_used;
-@test	@`select`	@TEST	@not_used
-1	2	3	NULL
+set @`test`=1;
+select @test, @`test`, @TEST, @`TEST`, @"teSt";
+@test	@`test`	@TEST	@`TEST`	@"teSt"
+1	1	1	1	1
+set @TEST=2;
+select @test, @`test`, @TEST, @`TEST`, @"teSt";
+@test	@`test`	@TEST	@`TEST`	@"teSt"
+2	2	2	2	2
+set @"tEST"=3;
+select @test, @`test`, @TEST, @`TEST`, @"teSt";
+@test	@`test`	@TEST	@`TEST`	@"teSt"
+3	3	3	3	3
+set @`TeST`=4;
+select @test, @`test`, @TEST, @`TEST`, @"teSt";
+@test	@`test`	@TEST	@`TEST`	@"teSt"
+4	4	4	4	4
+select @`teST`:=5;
+@`teST`:=5
+5
+select @test, @`test`, @TEST, @`TEST`, @"teSt";
+@test	@`test`	@TEST	@`TEST`	@"teSt"
+5	5	5	5	5
+set @select=2,@t5=1.23456;
+select @`select`,@not_used;
+@`select`	@not_used
+2	NULL
 set @test_int=10,@test_double=1e-10,@test_string="abcdeghi",@test_string2="abcdefghij",@select=NULL;
 select @test_int,@test_double,@test_string,@test_string2,@select;
 @test_int	@test_double	@test_string	@test_string2	@select
diff --git a/mysql-test/t/variables.test b/mysql-test/t/variables.test
index d1c8df64be2..dbe12554130 100644
--- a/mysql-test/t/variables.test
+++ b/mysql-test/t/variables.test
@@ -5,8 +5,20 @@
 drop table if exists t1,t2;
 --enable_warnings
 
-set @`test`=1,@TEST=3,@select=2,@t5=1.23456;
-select @test,@`select`,@TEST,@not_used;
+# case insensitivity tests (new in 5.0)
+set @`test`=1;
+select @test, @`test`, @TEST, @`TEST`, @"teSt";
+set @TEST=2;
+select @test, @`test`, @TEST, @`TEST`, @"teSt";
+set @"tEST"=3;
+select @test, @`test`, @TEST, @`TEST`, @"teSt";
+set @`TeST`=4;
+select @test, @`test`, @TEST, @`TEST`, @"teSt";
+select @`teST`:=5;
+select @test, @`test`, @TEST, @`TEST`, @"teSt";
+
+set @select=2,@t5=1.23456;
+select @`select`,@not_used;
 set @test_int=10,@test_double=1e-10,@test_string="abcdeghi",@test_string2="abcdefghij",@select=NULL;
 select @test_int,@test_double,@test_string,@test_string2,@select;
 set @test_int="hello",@test_double="hello",@test_string="hello",@test_string2="hello";
diff --git a/sql/sql_class.cc b/sql/sql_class.cc
index 0ead869216f..7f73ed6238d 100644
--- a/sql/sql_class.cc
+++ b/sql/sql_class.cc
@@ -151,9 +151,9 @@ THD::THD():user_time(0), is_fatal_error(0),
   bzero((char*) &warn_root,sizeof(warn_root));
   init_alloc_root(&warn_root, 1024, 0);
   user_connect=(USER_CONN *)0;
-  hash_init(&user_vars, &my_charset_bin, USER_VARS_HASH_SIZE, 0, 0,
+  hash_init(&user_vars, system_charset_info, USER_VARS_HASH_SIZE, 0, 0,
 	    (hash_get_key) get_var_key,
-	    (hash_free_key) free_user_var,0);
+	    (hash_free_key) free_user_var, 0);
 
   /* For user vars replication*/
   if (opt_bin_log)
@@ -257,7 +257,7 @@ void THD::change_user(void)
   cleanup();
   cleanup_done= 0;
   init();
-  hash_init(&user_vars, &my_charset_bin, USER_VARS_HASH_SIZE, 0, 0,
+  hash_init(&user_vars, system_charset_info, USER_VARS_HASH_SIZE, 0, 0,
 	    (hash_get_key) get_var_key,
 	    (hash_free_key) free_user_var, 0);
 }