diff --git a/src/question_paneldynamic.ts b/src/question_paneldynamic.ts
index f71baa6073..51b3c55ee2 100644
--- a/src/question_paneldynamic.ts
+++ b/src/question_paneldynamic.ts
@@ -938,7 +938,7 @@ export class QuestionPanelDynamicModel extends Question
       const panel = this.createNewPanel();
       this.panelsCore.push(panel);
       if (this.renderMode == "list" && this.panelsState != "default") {
-        if (this.panelsState === "expand") {
+        if (this.panelsState === "expanded") {
           panel.expand();
         } else {
           if (!!panel.title) {
diff --git a/tests/question_paneldynamic_tests.ts b/tests/question_paneldynamic_tests.ts
index 1188e048fb..9f4be4b459 100644
--- a/tests/question_paneldynamic_tests.ts
+++ b/tests/question_paneldynamic_tests.ts
@@ -7069,6 +7069,42 @@ QUnit.test("panel dynamic & panel visibleIf & checkbox vs carry forward, #7693",
   });
 });
 
+QUnit.test("paneldynamic: panelsState & valueName Bug#8653", function (assert) {
+  const survey = new SurveyModel({
+    elements: [
+      {
+        "type": "checkbox",
+        "name": "state_names",
+        "title": "States",
+        "valuePropertyName": "state_name",
+        "choices": ["ACT", "NSW", "QLD"]
+      },
+      {
+        "type": "paneldynamic",
+        "name": "regions",
+        "valueName": "state_names",
+        "allowAddPanel": false,
+        "allowRemovePanel": false,
+        "visibleIf": "{state_names} notempty",
+        "panelsState": "expanded",
+        "templateTitle": "Regions for State {panel.state_name}",
+        "templateElements": [
+          {
+            "type": "text",
+            "name": "q1"
+          }
+        ]
+      }
+    ]
+  });
+  const checkbox = <QuestionCheckboxModel>survey.getQuestionByName("state_names");
+  const panel = <QuestionPanelDynamicModel>survey.getQuestionByName("regions");
+  checkbox.selectAll();
+  assert.equal(panel.visiblePanels.length, 3, "3 panels have been created");
+  assert.equal(panel.visiblePanels[0].state, "expanded", "panels[0] state is expanded");
+  assert.equal(panel.visiblePanels[1].state, "expanded", "panels[1] state is expanded");
+  assert.equal(panel.visiblePanels[2].state, "expanded", "panels[2] state is expanded");
+});
 QUnit.test("paneldynamic: check renderedPanels", function (assert) {
   const survey = new SurveyModel({
     elements: [