diff --git a/packages/frontend/editor-ui/src/components/FixedCollectionParameter.test.ts b/packages/frontend/editor-ui/src/components/FixedCollectionParameter.test.ts
index 3e86aa949e..9937535018 100644
--- a/packages/frontend/editor-ui/src/components/FixedCollectionParameter.test.ts
+++ b/packages/frontend/editor-ui/src/components/FixedCollectionParameter.test.ts
@@ -4,7 +4,10 @@ import FixedCollectionParameter, { type Props } from '@/components/FixedCollecti
 import { STORES } from '@n8n/stores';
 import { createTestingPinia } from '@pinia/testing';
 import userEvent from '@testing-library/user-event';
+import { fireEvent, waitFor } from '@testing-library/vue';
 import { setActivePinia } from 'pinia';
+import { nextTick } from 'vue';
+
 describe('FixedCollectionParameter.vue', () => {
 	const pinia = createTestingPinia({
 		initialState: {
@@ -107,4 +110,51 @@ describe('FixedCollectionParameter.vue', () => {
 			],
 		]);
 	});
+
+	it('[SUG-128] maintains focus after receiving updated values even when the inner most property shares the same name with its parent', async () => {
+		const myProps: Props = {
+			...props,
+			parameter: {
+				...props.parameter,
+				options: [
+					{
+						name: 'p0',
+						displayName: 'Values',
+						values: [
+							{
+								displayName: 'Output Name',
+								name: 'p0',
+								type: 'string',
+								default: '',
+							},
+						],
+					},
+				],
+			},
+		};
+		const rendered = renderComponent({
+			props: {
+				...myProps,
+				nodeValues: { parameters: { rules: { p0: [{ p0: 'Test' }] } } },
+				values: { p0: [{ p0: 'Test' }] },
+			},
+		});
+
+		const input = rendered.getByRole('textbox');
+
+		await waitFor(() => expect(input).toHaveValue('Test'));
+		await fireEvent.focus(input);
+
+		expect(document.activeElement).toBe(input);
+
+		await rendered.rerender({
+			...myProps,
+			nodeValues: { parameters: { rules: { p0: [{ p0: 'Updated' }] } } },
+			values: { p0: [{ p0: 'Updated' }] },
+		});
+		await nextTick();
+		expect(input).toBeInTheDocument();
+		expect(input).toHaveValue('Updated');
+		expect(document.activeElement).toBe(input);
+	});
 });
diff --git a/packages/frontend/editor-ui/src/components/FixedCollectionParameter.vue b/packages/frontend/editor-ui/src/components/FixedCollectionParameter.vue
index 77651d48e2..f23735298e 100644
--- a/packages/frontend/editor-ui/src/components/FixedCollectionParameter.vue
+++ b/packages/frontend/editor-ui/src/components/FixedCollectionParameter.vue
@@ -1,7 +1,12 @@
 <script lang="ts" setup>
 import type { IUpdateInformation } from '@/Interface';
 
-import type { INodeParameters, INodeProperties, NodeParameterValueType } from 'n8n-workflow';
+import type {
+	INodeParameters,
+	INodeProperties,
+	INodePropertyCollection,
+	NodeParameterValueType,
+} from 'n8n-workflow';
 import { deepCopy, isINodePropertyCollectionList } from 'n8n-workflow';
 
 import get from 'lodash/get';
@@ -229,6 +234,10 @@ const trackWorkflowInputFieldAdded = () => {
 		node_id: ndvStore.activeNode?.id,
 	});
 };
+
+function getItemKey(item: INodeParameters, property: INodePropertyCollection) {
+	return mutableValues.value[property.name]?.indexOf(item) ?? -1;
+}
 </script>
 
 <template>
@@ -257,7 +266,7 @@ const trackWorkflowInputFieldAdded = () => {
 			/>
 			<div v-if="multipleValues">
 				<Draggable
-					:item-key="property.name"
+					:item-key="(item: INodeParameters) => getItemKey(item, property)"
 					v-model="mutableValues[property.name]"
 					handle=".drag-handle"
 					drag-class="dragging"