diff --git a/third_party/move/move-compiler-v2/tests/more-v1/expansion/use_struct_overlap_with_module.exp b/third_party/move/move-compiler-v2/tests/more-v1/expansion/use_struct_overlap_with_module.exp
index ea5bd62d87125d..c656af63451679 100644
--- a/third_party/move/move-compiler-v2/tests/more-v1/expansion/use_struct_overlap_with_module.exp
+++ b/third_party/move/move-compiler-v2/tests/more-v1/expansion/use_struct_overlap_with_module.exp
@@ -6,8 +6,5 @@ warning: unused alias
 7 │     use 0x2::X::{Self, S as X};
   │              ^ Unused 'use' of alias 'X'. Consider removing it
 
-error: variants not allowed in this context
-  ┌─ tests/more-v1/expansion/use_struct_overlap_with_module.move:8:27
-  │
-8 │     struct A { f1: X, f2: X::S }
-  │                           ^^^^
+
+============ bytecode verification succeeded ========
diff --git a/third_party/move/move-model/src/builder/exp_builder.rs b/third_party/move/move-model/src/builder/exp_builder.rs
index 871bfcda81727b..b6b08968ccb209 100644
--- a/third_party/move/move-model/src/builder/exp_builder.rs
+++ b/third_party/move/move-model/src/builder/exp_builder.rs
@@ -3054,10 +3054,11 @@ impl<'env, 'translator, 'module_translator> ExpTranslator<'env, 'translator, 'mo
         }
 
         // Treat this as a call to a global function.
-        if !self.parent.check_no_variant(maccess) {
+        let (no_variant, maccess) = self.parent.check_no_variant(maccess);
+        if !no_variant {
             return self.new_error_exp();
         }
-        let (module_name, name, _) = self.parent.module_access_to_parts(maccess);
+        let (module_name, name, _) = self.parent.module_access_to_parts(&maccess);
 
         // Process `old(E)` scoping
         let is_old =
diff --git a/third_party/move/move-model/src/builder/module_builder.rs b/third_party/move/move-model/src/builder/module_builder.rs
index 5b5cdaeae904cf..062684ad922234 100644
--- a/third_party/move/move-model/src/builder/module_builder.rs
+++ b/third_party/move/move-model/src/builder/module_builder.rs
@@ -48,7 +48,10 @@ use move_compiler::{
     parser::ast as PA,
     shared::{unique_map::UniqueMap, Identifier, Name},
 };
-use move_ir_types::{ast::ConstantName, location::Spanned};
+use move_ir_types::{
+    ast::ConstantName,
+    location::{sp, Spanned},
+};
 use regex::Regex;
 use std::{
     cell::RefCell,
@@ -250,8 +253,8 @@ impl<'env, 'translator> ModuleBuilder<'env, 'translator> {
     /// Converts a ModuleAccess into a qualified symbol which can be used for lookup of
     /// types or functions. If the access has a struct variant, an error is produced.
     pub fn module_access_to_qualified(&self, access: &EA::ModuleAccess) -> QualifiedSymbol {
-        self.check_no_variant(access);
-        let (qsym, _) = self.module_access_to_qualified_with_variant(access);
+        let (_, access) = self.check_no_variant(access);
+        let (qsym, _) = self.module_access_to_qualified_with_variant(&access);
         qsym
     }
 
@@ -262,15 +265,41 @@ impl<'env, 'translator> ModuleBuilder<'env, 'translator> {
         )
     }
 
-    pub fn check_no_variant(&self, maccess: &EA::ModuleAccess) -> bool {
+    pub fn check_no_variant(&self, maccess: &EA::ModuleAccess) -> (bool, EA::ModuleAccess) {
         if Self::is_variant(maccess) {
-            self.parent.env.error(
-                &self.parent.to_loc(&maccess.loc),
-                "variants not allowed in this context",
-            );
-            false
+            if let EA::ModuleAccess_::ModuleAccess(mident, _, Some(var_name)) = &maccess.value {
+                let addr = self
+                    .parent
+                    .resolve_address(&self.parent.to_loc(&mident.loc), &mident.value.address);
+                let name = self
+                    .symbol_pool()
+                    .make(mident.value.module.0.value.as_str());
+                let module_name = ModuleName::from_address_bytes_and_name(addr, name);
+                let var_name_sym = self.symbol_pool().make(var_name.value.as_str());
+                let qualitifed_name = QualifiedSymbol {
+                    module_name,
+                    symbol: var_name_sym,
+                };
+                if self.parent.struct_table.contains_key(&qualitifed_name)
+                    || self.parent.spec_schema_table.contains_key(&qualitifed_name)
+                    || self.parent.const_table.contains_key(&qualitifed_name)
+                {
+                    let new_maccess = sp(
+                        maccess.loc,
+                        EA::ModuleAccess_::ModuleAccess(*mident, *var_name, None),
+                    );
+                    return (true, new_maccess);
+                } else {
+                    self.parent.env.error(
+                        &self.parent.to_loc(&maccess.loc),
+                        "variants not allowed in this context",
+                    );
+                    return (false, maccess.clone());
+                }
+            }
+            (true, maccess.clone())
         } else {
-            true
+            (true, maccess.clone())
         }
     }
 
@@ -410,7 +439,7 @@ impl<'env, 'translator> ModuleBuilder<'env, 'translator> {
                             self.symbol_pool().make(n.value.as_str()),
                         ),
                         EA::ModuleAccess_::ModuleAccess(mident, n, _) => {
-                            self.check_no_variant(macc);
+                            let (_, macc) = self.check_no_variant(macc);
                             let addr_bytes = self.parent.resolve_address(
                                 &self.parent.to_loc(&macc.loc),
                                 &mident.value.address,