diff --git a/sql/catalyst/src/main/scala/org/apache/spark/sql/catalyst/analysis/Analyzer.scala b/sql/catalyst/src/main/scala/org/apache/spark/sql/catalyst/analysis/Analyzer.scala
index 22a887ae12ce8..9bab78a70296b 100644
--- a/sql/catalyst/src/main/scala/org/apache/spark/sql/catalyst/analysis/Analyzer.scala
+++ b/sql/catalyst/src/main/scala/org/apache/spark/sql/catalyst/analysis/Analyzer.scala
@@ -1805,17 +1805,24 @@ class Analyzer(
             m
 
           case _ =>
+            // Defer outer-reference and variable resolution until schema evolution has produced
+            // the final target schema so newly added target columns retain precedence.
+            val canResolveLastResort = !m.schemaEvolutionEnabled ||
+              (m.schemaEvolutionReady && m.pendingSchemaChanges.isEmpty)
+
             def findAttrInTarget(name: String): Option[Attribute] = {
               targetTable.output.find(targetAttr => conf.resolver(name, targetAttr.name))
             }
             val newMatchedActions = m.matchedActions.map {
               case DeleteAction(deleteCondition) =>
                 val resolvedDeleteCondition = deleteCondition.map(
-                  resolveExpressionByPlanChildren(_, m))
+                  resolveExpressionByPlanChildren(
+                    _, m, includeLastResort = canResolveLastResort))
                 DeleteAction(resolvedDeleteCondition)
               case UpdateAction(updateCondition, assignments, fromStar) =>
                 val resolvedUpdateCondition = updateCondition.map(
-                  resolveExpressionByPlanChildren(_, m))
+                  resolveExpressionByPlanChildren(
+                    _, m, includeLastResort = canResolveLastResort))
                 UpdateAction(
                   resolvedUpdateCondition,
                   // The update value can access columns from both target and source tables.
@@ -1838,7 +1845,9 @@ class Analyzer(
                   }
                 }
                 UpdateAction(
-                  updateCondition.map(resolveExpressionByPlanChildren(_, m)),
+                  updateCondition.map(
+                    resolveExpressionByPlanChildren(
+                      _, m, includeLastResort = canResolveLastResort)),
                   // For UPDATE *, the value must be from source table.
                   resolveAssignments(assignments, m, MergeResolvePolicy.SOURCE, throws),
                   fromStar = true)
@@ -1849,7 +1858,8 @@ class Analyzer(
                 // The insert action is used when not matched, so its condition and value can only
                 // access columns from the source table.
                 val resolvedInsertCondition = insertCondition.map(
-                  resolveExpressionByPlanOutput(_, m.sourceTable))
+                  resolveExpressionByPlanOutput(
+                    _, m.sourceTable, includeLastResort = canResolveLastResort))
                 InsertAction(
                   resolvedInsertCondition,
                   resolveAssignments(assignments, m, MergeResolvePolicy.SOURCE, throws))
@@ -1857,7 +1867,8 @@ class Analyzer(
                 // The insert action is used when not matched, so its condition and value can only
                 // access columns from the source table.
                 val resolvedInsertCondition = insertCondition.map(
-                  resolveExpressionByPlanOutput(_, m.sourceTable))
+                  resolveExpressionByPlanOutput(
+                    _, m.sourceTable, includeLastResort = canResolveLastResort))
                 // Expand star to top level source columns.  If source has less columns than target,
                 // assignments will be added by ResolveRowLevelCommandAssignments later.
                 val assignments = if (m.schemaEvolutionEnabled) {
@@ -1881,11 +1892,13 @@ class Analyzer(
             val newNotMatchedBySourceActions = m.notMatchedBySourceActions.map {
               case DeleteAction(deleteCondition) =>
                 val resolvedDeleteCondition = deleteCondition.map(
-                  resolveExpressionByPlanOutput(_, targetTable))
+                  resolveExpressionByPlanOutput(
+                    _, targetTable, includeLastResort = canResolveLastResort))
                 DeleteAction(resolvedDeleteCondition)
               case UpdateAction(updateCondition, assignments, fromStar) =>
                 val resolvedUpdateCondition = updateCondition.map(
-                  resolveExpressionByPlanOutput(_, targetTable))
+                  resolveExpressionByPlanOutput(
+                    _, targetTable, includeLastResort = canResolveLastResort))
                 UpdateAction(
                   resolvedUpdateCondition,
                   // The update value can access columns from the target table only.
@@ -1894,7 +1907,9 @@ class Analyzer(
               case o => o
             }
 
-            val resolvedMergeCondition = resolveExpressionByPlanChildren(m.mergeCondition, m)
+            val resolvedMergeCondition =
+              resolveExpressionByPlanChildren(
+                m.mergeCondition, m, includeLastResort = canResolveLastResort)
             m.copy(mergeCondition = resolvedMergeCondition,
               matchedActions = newMatchedActions,
               notMatchedActions = newNotMatchedActions,
diff --git a/sql/catalyst/src/main/scala/org/apache/spark/sql/catalyst/analysis/ResolveReferencesInUpdate.scala b/sql/catalyst/src/main/scala/org/apache/spark/sql/catalyst/analysis/ResolveReferencesInUpdate.scala
index 92813a156988b..9fe46a9ab7718 100644
--- a/sql/catalyst/src/main/scala/org/apache/spark/sql/catalyst/analysis/ResolveReferencesInUpdate.scala
+++ b/sql/catalyst/src/main/scala/org/apache/spark/sql/catalyst/analysis/ResolveReferencesInUpdate.scala
@@ -25,13 +25,16 @@ import org.apache.spark.sql.errors.QueryCompilationErrors
 
 /**
  * A virtual rule to resolve [[UnresolvedAttribute]] in [[UpdateTable]]. It's only used by the real
- * rule `ResolveReferences`. The column resolution order for [[UpdateTable]] is:
+ * rule `ResolveReferences`. Assignments and the condition share the first two steps below, then
+ * diverge: step 3 applies to assignments only, and steps 4 and 5 to the condition only.
  * 1. Resolves the column to `AttributeReference` with the output of the child plan. This
  *    includes metadata columns as well.
  * 2. Resolves the column to a literal function which is allowed to be invoked without braces, e.g.
  *    `SELECT col, current_date FROM t`.
  * 3. Resolves the column to the default value expression, if the column is the assignment value
  *    and the corresponding assignment key is a top-level column.
+ * 4. Resolves the column to an outer reference.
+ * 5. Resolves the column to a SQL variable, which is always tried after outer references.
  */
 class ResolveReferencesInUpdate(val catalogManager: CatalogManager)
   extends SQLConfHelper with ColumnResolutionHelper {
@@ -67,7 +70,8 @@ class ResolveReferencesInUpdate(val catalogManager: CatalogManager)
 
     val newUpdate = u.copy(
       assignments = newAssignments,
-      condition = u.condition.map(resolveExpressionByPlanChildren(_, u)))
+      condition = u.condition.map(
+        resolveExpressionByPlanChildren(_, u, includeLastResort = true)))
     newUpdate.copyTagsFrom(u)
     newUpdate
   }
diff --git a/sql/core/src/test/scala/org/apache/spark/sql/connector/MergeIntoSchemaEvolutionExtraSourceColumnTests.scala b/sql/core/src/test/scala/org/apache/spark/sql/connector/MergeIntoSchemaEvolutionExtraSourceColumnTests.scala
index ac9c5dbf76b72..4312e4ffe71de 100644
--- a/sql/core/src/test/scala/org/apache/spark/sql/connector/MergeIntoSchemaEvolutionExtraSourceColumnTests.scala
+++ b/sql/core/src/test/scala/org/apache/spark/sql/connector/MergeIntoSchemaEvolutionExtraSourceColumnTests.scala
@@ -120,6 +120,41 @@ trait MergeIntoSchemaEvolutionExtraSourceColumnTests extends MergeIntoSchemaEvol
       "`active` cannot be resolved"
   )
 
+  test("schema evolution - evolved target column takes precedence over a SQL variable") {
+    withTable(tableNameAsString) {
+      withTempView("source") {
+        createAndInitTable(
+          "pk INT NOT NULL, salary INT, dep STRING",
+          """{ "pk": 1, "salary": 100, "dep": "hr" }
+            |{ "pk": 2, "salary": 200, "dep": "software" }
+            |{ "pk": 3, "salary": 300, "dep": "hr" }""".stripMargin)
+        Seq((1, 150, "hr", true)).toDF("pk", "salary", "dep", "active")
+          .createOrReplaceTempView("source")
+
+        withSessionVariable("active", "action_enabled") {
+          sql("DECLARE VARIABLE active BOOLEAN DEFAULT false")
+          sql("DECLARE VARIABLE action_enabled BOOLEAN DEFAULT true")
+          executeMerge(
+            withSchemaEvolution = true,
+            targetTableName = tableNameAsString,
+            sourceViewName = "source",
+            cond = "t.pk = s.pk",
+            clauses = Seq(
+              update(set = "salary = s.salary, active = s.active"),
+              updateNotMatched(
+                set = "salary = salary + 1",
+                condition = "active IS NULL AND action_enabled AND salary = 200"),
+              deleteNotMatched(
+                condition = "active IS NULL AND action_enabled AND salary = 300")))
+
+          checkAnswer(
+            sql(s"SELECT * FROM $tableNameAsString"),
+            Row(1, 150, "hr", true) :: Row(2, 201, "software", null) :: Nil)
+        }
+      }
+    }
+  }
+
   testEvolution("source has extra column with set all columns")(
     targetData = Seq(
       (1, 100, "hr"),
diff --git a/sql/core/src/test/scala/org/apache/spark/sql/connector/MergeIntoTableSuiteBase.scala b/sql/core/src/test/scala/org/apache/spark/sql/connector/MergeIntoTableSuiteBase.scala
index ea15f13c225cf..93338ba043d9b 100644
--- a/sql/core/src/test/scala/org/apache/spark/sql/connector/MergeIntoTableSuiteBase.scala
+++ b/sql/core/src/test/scala/org/apache/spark/sql/connector/MergeIntoTableSuiteBase.scala
@@ -3052,4 +3052,152 @@ abstract class MergeIntoTableSuiteBase extends RowLevelOperationSuiteBase
       case None => fail(s"$metricName metric not found")
     }
   }
+
+  test("merge with a SQL variable in the merge condition") {
+    withTempView("source") {
+      createAndInitTable("pk INT NOT NULL, salary INT, dep STRING",
+        """{ "pk": 1, "salary": 100, "dep": "hr" }
+          |{ "pk": 2, "salary": 200, "dep": "software" }
+          |""".stripMargin)
+      Seq(1, 2).toDF("pk").createOrReplaceTempView("source")
+
+      withSessionVariable("target_dep") {
+        sql("DECLARE VARIABLE target_dep STRING DEFAULT 'hr'")
+        sql(
+          s"""MERGE INTO $tableNameAsString t
+             |USING source s
+             |ON t.pk = s.pk AND t.dep = target_dep
+             |WHEN MATCHED THEN UPDATE SET t.salary = 999
+             |""".stripMargin)
+
+        checkAnswer(
+          sql(s"SELECT * FROM $tableNameAsString"),
+          Row(1, 999, "hr") :: Row(2, 200, "software") :: Nil)
+      }
+    }
+  }
+
+  test("merge with a SQL variable in matched and not-matched-by-source conditions") {
+    withTempView("source") {
+      createAndInitTable("pk INT NOT NULL, salary INT, dep STRING",
+        """{ "pk": 1, "salary": 100, "dep": "hr" }
+          |{ "pk": 2, "salary": 200, "dep": "software" }
+          |""".stripMargin)
+      Seq(1).toDF("pk").createOrReplaceTempView("source")
+
+      withSessionVariable("salary_threshold") {
+        sql("DECLARE VARIABLE salary_threshold INT DEFAULT 150")
+        sql(
+          s"""MERGE INTO $tableNameAsString t
+             |USING source s
+             |ON t.pk = s.pk
+             |WHEN MATCHED AND t.salary < salary_threshold THEN UPDATE SET t.salary = 999
+             |WHEN NOT MATCHED BY SOURCE AND t.salary > salary_threshold THEN DELETE
+             |""".stripMargin)
+
+        checkAnswer(
+          sql(s"SELECT * FROM $tableNameAsString"),
+          Row(1, 999, "hr") :: Nil)
+      }
+    }
+  }
+
+  test("merge with a SQL variable in matched delete condition") {
+    withTempView("source") {
+      createAndInitTable("pk INT NOT NULL, salary INT, dep STRING",
+        """{ "pk": 1, "salary": 100, "dep": "hr" }
+          |{ "pk": 2, "salary": 200, "dep": "software" }
+          |""".stripMargin)
+      Seq(1, 2).toDF("pk").createOrReplaceTempView("source")
+
+      withSessionVariable("salary_threshold") {
+        sql("DECLARE VARIABLE salary_threshold INT DEFAULT 150")
+        sql(
+          s"""MERGE INTO $tableNameAsString t
+             |USING source s
+             |ON t.pk = s.pk
+             |WHEN MATCHED AND t.salary < salary_threshold THEN DELETE
+             |""".stripMargin)
+
+        checkAnswer(
+          sql(s"SELECT * FROM $tableNameAsString"),
+          Row(2, 200, "software") :: Nil)
+      }
+    }
+  }
+
+  test("merge with a SQL variable in matched update-star condition") {
+    withTempView("source") {
+      createAndInitTable("pk INT NOT NULL, salary INT, dep STRING",
+        """{ "pk": 1, "salary": 100, "dep": "hr" }
+          |{ "pk": 2, "salary": 200, "dep": "software" }
+          |""".stripMargin)
+      Seq((1, 999, "finance"), (2, 888, "sales"))
+        .toDF("pk", "salary", "dep").createOrReplaceTempView("source")
+
+      withSessionVariable("pk_threshold") {
+        sql("DECLARE VARIABLE pk_threshold INT DEFAULT 2")
+        sql(
+          s"""MERGE INTO $tableNameAsString t
+             |USING source s
+             |ON t.pk = s.pk
+             |WHEN MATCHED AND s.pk < pk_threshold THEN UPDATE SET *
+             |""".stripMargin)
+
+        checkAnswer(
+          sql(s"SELECT * FROM $tableNameAsString"),
+          Row(1, 999, "finance") :: Row(2, 200, "software") :: Nil)
+      }
+    }
+  }
+
+  test("merge with a SQL variable in the not-matched insert condition") {
+    withTempView("source") {
+      createAndInitTable("pk INT NOT NULL, salary INT, dep STRING",
+        """{ "pk": 1, "salary": 100, "dep": "hr" }
+          |""".stripMargin)
+      Seq((2, 200, "software"), (3, 300, "hr"))
+        .toDF("pk", "salary", "dep").createOrReplaceTempView("source")
+
+      withSessionVariable("pk_threshold") {
+        sql("DECLARE VARIABLE pk_threshold INT DEFAULT 3")
+        sql(
+          s"""MERGE INTO $tableNameAsString t
+             |USING source s
+             |ON t.pk = s.pk
+             |WHEN NOT MATCHED AND s.pk < pk_threshold THEN
+             |  INSERT (pk, salary, dep) VALUES (s.pk, s.salary, s.dep)
+             |""".stripMargin)
+
+        checkAnswer(
+          sql(s"SELECT * FROM $tableNameAsString"),
+          Row(1, 100, "hr") :: Row(2, 200, "software") :: Nil)
+      }
+    }
+  }
+
+  test("merge with a SQL variable in the not-matched insert-star condition") {
+    withTempView("source") {
+      createAndInitTable("pk INT NOT NULL, salary INT, dep STRING",
+        """{ "pk": 1, "salary": 100, "dep": "hr" }
+          |""".stripMargin)
+      Seq((2, 200, "software"), (3, 300, "hr"))
+        .toDF("pk", "salary", "dep").createOrReplaceTempView("source")
+
+      withSessionVariable("pk_threshold") {
+        sql("DECLARE VARIABLE pk_threshold INT DEFAULT 3")
+        sql(
+          s"""MERGE INTO $tableNameAsString t
+             |USING source s
+             |ON t.pk = s.pk
+             |WHEN NOT MATCHED AND s.pk < pk_threshold THEN INSERT *
+             |""".stripMargin)
+
+        checkAnswer(
+          sql(s"SELECT * FROM $tableNameAsString"),
+          Row(1, 100, "hr") :: Row(2, 200, "software") :: Nil)
+      }
+    }
+  }
+
 }
diff --git a/sql/core/src/test/scala/org/apache/spark/sql/connector/UpdateTableSuiteBase.scala b/sql/core/src/test/scala/org/apache/spark/sql/connector/UpdateTableSuiteBase.scala
index c122713c1873f..3269081227e57 100644
--- a/sql/core/src/test/scala/org/apache/spark/sql/connector/UpdateTableSuiteBase.scala
+++ b/sql/core/src/test/scala/org/apache/spark/sql/connector/UpdateTableSuiteBase.scala
@@ -1370,4 +1370,39 @@ abstract class UpdateTableSuiteBase extends RowLevelOperationSuiteBase {
       sql(s"SELECT * FROM $tableNameAsString"),
       Row(1, -1, "hr") :: Row(2, 200, "software") :: Row(3, -1, "hr") :: Nil)
   }
+
+  test("update with a SQL variable in the condition") {
+    createAndInitTable("pk INT NOT NULL, salary INT, dep STRING",
+      """{ "pk": 1, "salary": 100, "dep": "hr" }
+        |{ "pk": 2, "salary": 200, "dep": "software" }
+        |""".stripMargin)
+
+    withSessionVariable("target_dep") {
+      sql("DECLARE VARIABLE target_dep STRING DEFAULT 'hr'")
+      sql(s"UPDATE $tableNameAsString SET salary = 999 WHERE dep = target_dep")
+
+      checkAnswer(
+        sql(s"SELECT * FROM $tableNameAsString"),
+        Row(1, 999, "hr") :: Row(2, 200, "software") :: Nil)
+    }
+  }
+
+  test("update with a SQL scripting local variable in the condition") {
+    createAndInitTable("pk INT NOT NULL, salary INT, dep STRING",
+      """{ "pk": 1, "salary": 100, "dep": "hr" }
+        |{ "pk": 2, "salary": 200, "dep": "software" }
+        |""".stripMargin)
+
+    sql(
+      s"""BEGIN
+         |  DECLARE local_dep STRING DEFAULT 'hr';
+         |  UPDATE $tableNameAsString SET salary = 999 WHERE dep = local_dep;
+         |END
+         |""".stripMargin)
+
+    checkAnswer(
+      sql(s"SELECT * FROM $tableNameAsString"),
+      Row(1, 999, "hr") :: Row(2, 200, "software") :: Nil)
+  }
+
 }