diff --git a/src/visualBuilder/eventManager/useRecalculateVariantDataCSLPValues.ts b/src/visualBuilder/eventManager/useRecalculateVariantDataCSLPValues.ts
index 4a277ca8..a577da4a 100644
--- a/src/visualBuilder/eventManager/useRecalculateVariantDataCSLPValues.ts
+++ b/src/visualBuilder/eventManager/useRecalculateVariantDataCSLPValues.ts
@@ -35,15 +35,17 @@ function updateVariantClasses({
     const updateElementClasses = (
         element: HTMLElement,
         dataCslp: string,
-        observer: MutationObserver
+        observer?: MutationObserver
     ) => {
         if (!dataCslp) return;
 
         if (
             dataCslp.startsWith("v2:") &&
-            element.classList.contains("visual-builder__base-field")
+            !element.classList.contains("visual-builder__variant-field")
         ) {
-            element.classList.remove("visual-builder__base-field");
+            if (element.classList.contains("visual-builder__base-field")) {
+                element.classList.remove("visual-builder__base-field");
+            }
             if (highlightVariantFields) {
                 element.classList.add(
                     visualBuilderStyles()["visual-builder__variant-field"],
@@ -73,7 +75,7 @@ function updateVariantClasses({
             );
             element.classList.add("visual-builder__disabled-variant-field");
         }
-
+        if (!observer) return;
         // Disconnect this observer after processing
         observer.disconnect();
         const index = observers.indexOf(observer);
@@ -82,20 +84,79 @@ function updateVariantClasses({
         }
     };
 
+    const addElementClasses = (element: HTMLElement) => {
+        const dataCslp = element.getAttribute(DATA_CSLP_ATTR_SELECTOR);
+
+        if (!dataCslp) {
+            //recursive call for child nodes
+            element.childNodes.forEach((child) => {
+                if (child instanceof HTMLElement) {
+                    addElementClasses(child);
+                }
+            });
+            return;
+        }
+        //if element might have been updated by another observer
+        if (
+            dataCslp.startsWith("v2:") &&
+            element.classList.contains("visual-builder__variant-field")
+        ) {
+            return;
+        }
+        // if element has not given variant/base class
+        if (
+            dataCslp.startsWith("v2:") &&
+            !element.classList.contains("visual-builder__variant-field")
+        ) {
+            if (element.classList.contains("visual-builder__base-field")) {
+                element.classList.remove("visual-builder__base-field");
+            }
+            if (highlightVariantFields) {
+                element.classList.add(
+                    visualBuilderStyles()["visual-builder__variant-field"],
+                    "visual-builder__variant-field"
+                );
+            } else {
+                element.classList.add("visual-builder__variant-field");
+            }
+        } else if (!dataCslp.startsWith("v2:")) {
+            if (element.classList.contains("visual-builder__variant-field")) {
+                element.classList.remove(
+                    visualBuilderStyles()["visual-builder__variant-field"],
+                    "visual-builder__variant-field"
+                );
+            }
+            element.classList.add("visual-builder__base-field");
+        }
+
+        //recursive call for child nodes
+        element.childNodes.forEach((child) => {
+            if (child instanceof HTMLElement) {
+                addElementClasses(child);
+            }
+        });
+    };
+
     // Create a separate observer for each element
     const elementsWithCslp = document.querySelectorAll(
         `[${DATA_CSLP_ATTR_SELECTOR}]`
     );
-
     elementsWithCslp.forEach((elementNode) => {
         const element = elementNode as HTMLElement;
-
         const observer = new MutationObserver((mutations) => {
             mutations.forEach((mutation) => {
                 if (
-                    mutation.type === "attributes" &&
-                    mutation.attributeName === DATA_CSLP_ATTR_SELECTOR
+                    (mutation.type === "attributes" &&
+                        mutation.attributeName === DATA_CSLP_ATTR_SELECTOR) ||
+                    mutation.type === "childList"
                 ) {
+                    if (mutation.addedNodes.length > 0) {
+                        mutation.addedNodes.forEach((node) => {
+                            if (node instanceof HTMLElement) {
+                                addElementClasses(node);
+                            }
+                        });
+                    }
                     const dataCslp = element.getAttribute(
                         DATA_CSLP_ATTR_SELECTOR
                     );
@@ -105,7 +166,11 @@ function updateVariantClasses({
         });
 
         observers.push(observer);
-        observer.observe(element, { attributes: true });
+        observer.observe(element, {
+            attributes: true,
+            childList: true, // Observe direct children
+            subtree: true,
+        });
     });
 
     setTimeout(() => {