diff --git a/packages/editor-ui/src/components/CollectionParameter.vue b/packages/editor-ui/src/components/CollectionParameter.vue
index 1296b3c014272..4b414f38d3485 100644
--- a/packages/editor-ui/src/components/CollectionParameter.vue
+++ b/packages/editor-ui/src/components/CollectionParameter.vue
@@ -36,12 +36,9 @@
 						<n8n-option
 							v-for="item in parameterOptions"
 							:key="item.name"
-							:label="
-								isNodePropertyCollection(item)
-									? i18n.nodeText().collectionOptionDisplayName(parameter, item, path)
-									: item.name
-							"
+							:label="getParameterOptionLabel(item)"
 							:value="item.name"
+							data-test-id="collection-parameter-option"
 						>
 						</n8n-option>
 					</n8n-select>
@@ -93,12 +90,23 @@ const getPlaceholderText = computed(() => {
 		i18n.baseText('collectionParameter.choose')
 	);
 });
+
 function isNodePropertyCollection(
 	object: INodePropertyOptions | INodeProperties | INodePropertyCollection,
 ): object is INodePropertyCollection {
 	return 'values' in object;
 }
 
+function getParameterOptionLabel(
+	item: INodePropertyOptions | INodeProperties | INodePropertyCollection,
+): string {
+	if (isNodePropertyCollection(item)) {
+		return i18n.nodeText().collectionOptionDisplayName(props.parameter, item, props.path);
+	}
+
+	return 'displayName' in item ? item.displayName : item.name;
+}
+
 function displayNodeParameter(parameter: INodeProperties) {
 	if (parameter.displayOptions === undefined) {
 		// If it is not defined no need to do a proper check
diff --git a/packages/editor-ui/src/components/__tests__/CollectionParameter.test.ts b/packages/editor-ui/src/components/__tests__/CollectionParameter.test.ts
new file mode 100644
index 0000000000000..8f1c0b0af2d14
--- /dev/null
+++ b/packages/editor-ui/src/components/__tests__/CollectionParameter.test.ts
@@ -0,0 +1,49 @@
+import { createComponentRenderer } from '@/__tests__/render';
+import { createTestingPinia } from '@pinia/testing';
+import CollectionParameter from '../CollectionParameter.vue';
+
+const renderComponent = createComponentRenderer(CollectionParameter, {
+	pinia: createTestingPinia(),
+});
+
+describe('CollectionParameter', () => {
+	afterEach(() => {
+		vi.clearAllMocks();
+	});
+
+	it('should render collection options correctly', async () => {
+		const { getAllByTestId } = renderComponent({
+			props: {
+				path: 'parameters.additionalFields',
+				parameter: {
+					displayName: 'Additional Fields',
+					name: 'additionalFields',
+					type: 'collection',
+					options: [
+						{
+							displayName: 'Currency',
+							name: 'currency',
+							type: 'string',
+							default: 'USD',
+						},
+						{
+							displayName: 'Value',
+							name: 'value',
+							type: 'number',
+						},
+					],
+				},
+				nodeValues: {
+					parameters: {
+						additionalFields: {},
+					},
+				},
+			},
+		});
+
+		const options = getAllByTestId('collection-parameter-option');
+		expect(options.length).toBe(2);
+		expect(options.at(0)).toHaveTextContent('Currency');
+		expect(options.at(1)).toHaveTextContent('Value');
+	});
+});