diff --git a/packages/builder/src/builderStore/dataBinding.js b/packages/builder/src/builderStore/dataBinding.js
index 85ac822006..d86e94aba2 100644
--- a/packages/builder/src/builderStore/dataBinding.js
+++ b/packages/builder/src/builderStore/dataBinding.js
@@ -29,6 +29,12 @@ const CAPTURE_VAR_INSIDE_TEMPLATE = /{{([^}]+)}}/g
 const CAPTURE_VAR_INSIDE_JS = /\$\("([^")]+)"\)/g
 const CAPTURE_HBS_TEMPLATE = /{{[\S\s]*?}}/g
 
+const UpdateReferenceAction = {
+  ADD: "add",
+  DELETE: "delete",
+  MOVE: "move",
+}
+
 /**
  * Gets all bindable data context fields and instance fields.
  */
@@ -1226,3 +1232,81 @@ export const runtimeToReadableBinding = (
     "readableBinding"
   )
 }
+
+/**
+ * Used to update binding references for automation or action steps
+ *
+ * @param obj - The object to be updated
+ * @param originalIndex - The original index of the step being moved. Not applicable to add/delete.
+ * @param modifiedIndex - The new index of the step being modified
+ * @param action - Used to determine if a step is being added, deleted or moved
+ * @param label - The binding text that describes the steps
+ */
+export const updateReferencesInObject = ({
+  obj,
+  modifiedIndex,
+  action,
+  label,
+  originalIndex,
+}) => {
+  const stepIndexRegex = new RegExp(`{{\\s*${label}\\.(\\d+)\\.`, "g")
+  const updateActionStep = (str, index, replaceWith) =>
+    str.replace(`{{ ${label}.${index}.`, `{{ ${label}.${replaceWith}.`)
+  for (const key in obj) {
+    if (typeof obj[key] === "string") {
+      let matches
+      while ((matches = stepIndexRegex.exec(obj[key])) !== null) {
+        const referencedStep = parseInt(matches[1])
+        if (
+          action === UpdateReferenceAction.ADD &&
+          referencedStep >= modifiedIndex
+        ) {
+          obj[key] = updateActionStep(
+            obj[key],
+            referencedStep,
+            referencedStep + 1
+          )
+        } else if (
+          action === UpdateReferenceAction.DELETE &&
+          referencedStep > modifiedIndex
+        ) {
+          obj[key] = updateActionStep(
+            obj[key],
+            referencedStep,
+            referencedStep - 1
+          )
+        } else if (action === UpdateReferenceAction.MOVE) {
+          if (referencedStep === originalIndex) {
+            obj[key] = updateActionStep(obj[key], referencedStep, modifiedIndex)
+          } else if (
+            modifiedIndex <= referencedStep &&
+            modifiedIndex < originalIndex
+          ) {
+            obj[key] = updateActionStep(
+              obj[key],
+              referencedStep,
+              referencedStep + 1
+            )
+          } else if (
+            modifiedIndex >= referencedStep &&
+            modifiedIndex > originalIndex
+          ) {
+            obj[key] = updateActionStep(
+              obj[key],
+              referencedStep,
+              referencedStep - 1
+            )
+          }
+        }
+      }
+    } else if (typeof obj[key] === "object" && obj[key] !== null) {
+      updateReferencesInObject({
+        obj: obj[key],
+        modifiedIndex,
+        action,
+        label,
+        originalIndex,
+      })
+    }
+  }
+}
diff --git a/packages/builder/src/builderStore/store/automation/index.js b/packages/builder/src/builderStore/store/automation/index.js
index ba2458f414..af83f73dc6 100644
--- a/packages/builder/src/builderStore/store/automation/index.js
+++ b/packages/builder/src/builderStore/store/automation/index.js
@@ -4,6 +4,7 @@ import { cloneDeep } from "lodash/fp"
 import { generate } from "shortid"
 import { selectedAutomation } from "builderStore"
 import { notifications } from "@budibase/bbui"
+import { updateReferencesInObject } from "builderStore/dataBinding"
 
 const initialAutomationState = {
   automations: [],
@@ -22,34 +23,14 @@ export const getAutomationStore = () => {
   return store
 }
 
-const updateReferencesInObject = (obj, modifiedIndex, action) => {
-  const regex = /{{\s*steps\.(\d+)\./g
-  for (const key in obj) {
-    if (typeof obj[key] === "string") {
-      let matches
-      while ((matches = regex.exec(obj[key])) !== null) {
-        const referencedStep = parseInt(matches[1])
-        if (action === "add" && referencedStep >= modifiedIndex) {
-          obj[key] = obj[key].replace(
-            `{{ steps.${referencedStep}.`,
-            `{{ steps.${referencedStep + 1}.`
-          )
-        } else if (action === "delete" && referencedStep > modifiedIndex) {
-          obj[key] = obj[key].replace(
-            `{{ steps.${referencedStep}.`,
-            `{{ steps.${referencedStep - 1}.`
-          )
-        }
-      }
-    } else if (typeof obj[key] === "object" && obj[key] !== null) {
-      updateReferencesInObject(obj[key], modifiedIndex, action)
-    }
-  }
-}
-
 const updateStepReferences = (steps, modifiedIndex, action) => {
   steps.forEach(step => {
-    updateReferencesInObject(step.inputs, modifiedIndex, action)
+    updateReferencesInObject({
+      obj: step.inputs,
+      modifiedIndex,
+      action,
+      label: "steps",
+    })
   })
 }
 
diff --git a/packages/builder/src/builderStore/tests/dataBinding.test.js b/packages/builder/src/builderStore/tests/dataBinding.test.js
index 47f6564749..039e33a94d 100644
--- a/packages/builder/src/builderStore/tests/dataBinding.test.js
+++ b/packages/builder/src/builderStore/tests/dataBinding.test.js
@@ -2,6 +2,7 @@ import { expect, describe, it, vi } from "vitest"
 import {
   runtimeToReadableBinding,
   readableToRuntimeBinding,
+  updateReferencesInObject,
 } from "../dataBinding"
 
 vi.mock("@budibase/frontend-core")
@@ -84,3 +85,461 @@ describe("readableToRuntimeBinding", () => {
     ).toEqual(`Hello {{ [user].[firstName] }}! The count is {{ count }}.`)
   })
 })
+
+describe("updateReferencesInObject", () => {
+  it("should increment steps in sequence on 'add'", () => {
+    let obj = [
+      {
+        id: "a0",
+        parameters: {
+          text: "Alpha",
+        },
+      },
+      {
+        id: "a1",
+        parameters: {
+          text: "Apple",
+        },
+      },
+      {
+        id: "b2",
+        parameters: {
+          text: "Banana {{ actions.1.row }}",
+        },
+      },
+      {
+        id: "c3",
+        parameters: {
+          text: "Carrot {{ actions.1.row }}",
+        },
+      },
+      {
+        id: "d4",
+        parameters: {
+          text: "Dog {{ actions.3.row }}",
+        },
+      },
+      {
+        id: "e5",
+        parameters: {
+          text: "Eagle {{ actions.4.row }}",
+        },
+      },
+    ]
+    updateReferencesInObject({
+      obj,
+      modifiedIndex: 0,
+      action: "add",
+      label: "actions",
+    })
+
+    expect(obj).toEqual([
+      {
+        id: "a0",
+        parameters: {
+          text: "Alpha",
+        },
+      },
+      {
+        id: "a1",
+        parameters: {
+          text: "Apple",
+        },
+      },
+      {
+        id: "b2",
+        parameters: {
+          text: "Banana {{ actions.2.row }}",
+        },
+      },
+      {
+        id: "c3",
+        parameters: {
+          text: "Carrot {{ actions.2.row }}",
+        },
+      },
+      {
+        id: "d4",
+        parameters: {
+          text: "Dog {{ actions.4.row }}",
+        },
+      },
+      {
+        id: "e5",
+        parameters: {
+          text: "Eagle {{ actions.5.row }}",
+        },
+      },
+    ])
+  })
+
+  it("should decrement steps in sequence on 'delete'", () => {
+    let obj = [
+      {
+        id: "a1",
+        parameters: {
+          text: "Apple",
+        },
+      },
+      {
+        id: "b2",
+        parameters: {
+          text: "Banana {{ actions.1.row }}",
+        },
+      },
+      {
+        id: "d4",
+        parameters: {
+          text: "Dog {{ actions.3.row }}",
+        },
+      },
+      {
+        id: "e5",
+        parameters: {
+          text: "Eagle {{ actions.4.row }}",
+        },
+      },
+    ]
+    updateReferencesInObject({
+      obj,
+      modifiedIndex: 2,
+      action: "delete",
+      label: "actions",
+    })
+
+    expect(obj).toEqual([
+      {
+        id: "a1",
+        parameters: {
+          text: "Apple",
+        },
+      },
+      {
+        id: "b2",
+        parameters: {
+          text: "Banana {{ actions.1.row }}",
+        },
+      },
+      {
+        id: "d4",
+        parameters: {
+          text: "Dog {{ actions.2.row }}",
+        },
+      },
+      {
+        id: "e5",
+        parameters: {
+          text: "Eagle {{ actions.3.row }}",
+        },
+      },
+    ])
+  })
+
+  it("should handle on 'move' to a lower index", () => {
+    let obj = [
+      {
+        id: "a1",
+        parameters: {
+          text: "Apple",
+        },
+      },
+      {
+        id: "b2",
+        parameters: {
+          text: "Banana {{ actions.0.row }}",
+        },
+      },
+      {
+        id: "e5",
+        parameters: {
+          text: "Eagle {{ actions.3.row }}",
+        },
+      },
+      {
+        id: "c3",
+        parameters: {
+          text: "Carrot {{ actions.0.row }}",
+        },
+      },
+      {
+        id: "d4",
+        parameters: {
+          text: "Dog {{ actions.2.row }}",
+        },
+      },
+    ]
+    updateReferencesInObject({
+      obj,
+      modifiedIndex: 2,
+      action: "move",
+      label: "actions",
+      originalIndex: 4,
+    })
+
+    expect(obj).toEqual([
+      {
+        id: "a1",
+        parameters: {
+          text: "Apple",
+        },
+      },
+      {
+        id: "b2",
+        parameters: {
+          text: "Banana {{ actions.0.row }}",
+        },
+      },
+      {
+        id: "e5",
+        parameters: {
+          text: "Eagle {{ actions.4.row }}",
+        },
+      },
+      {
+        id: "c3",
+        parameters: {
+          text: "Carrot {{ actions.0.row }}",
+        },
+      },
+      {
+        id: "d4",
+        parameters: {
+          text: "Dog {{ actions.3.row }}",
+        },
+      },
+    ])
+  })
+
+  it("should handle on 'move' to a higher index", () => {
+    let obj = [
+      {
+        id: "b2",
+        parameters: {
+          text: "Banana {{ actions.0.row }}",
+        },
+      },
+      {
+        id: "c3",
+        parameters: {
+          text: "Carrot {{ actions.0.row }}",
+        },
+      },
+      {
+        id: "a1",
+        parameters: {
+          text: "Apple",
+        },
+      },
+      {
+        id: "d4",
+        parameters: {
+          text: "Dog {{ actions.2.row }}",
+        },
+      },
+      {
+        id: "e5",
+        parameters: {
+          text: "Eagle {{ actions.3.row }}",
+        },
+      },
+    ]
+    updateReferencesInObject({
+      obj,
+      modifiedIndex: 2,
+      action: "move",
+      label: "actions",
+      originalIndex: 0,
+    })
+
+    expect(obj).toEqual([
+      {
+        id: "b2",
+        parameters: {
+          text: "Banana {{ actions.2.row }}",
+        },
+      },
+      {
+        id: "c3",
+        parameters: {
+          text: "Carrot {{ actions.2.row }}",
+        },
+      },
+      {
+        id: "a1",
+        parameters: {
+          text: "Apple",
+        },
+      },
+      {
+        id: "d4",
+        parameters: {
+          text: "Dog {{ actions.1.row }}",
+        },
+      },
+      {
+        id: "e5",
+        parameters: {
+          text: "Eagle {{ actions.3.row }}",
+        },
+      },
+    ])
+  })
+
+  it("should handle on 'move' of action being referenced, dragged to a higher index", () => {
+    let obj = [
+      {
+        "##eventHandlerType": "Validate Form",
+        id: "cCD0Dwcnq",
+      },
+      {
+        "##eventHandlerType": "Close Screen Modal",
+        id: "3fbbIOfN0H",
+      },
+      {
+        "##eventHandlerType": "Save Row",
+        parameters: {
+          tableId: "ta_bb_employee",
+        },
+        id: "aehg5cTmhR",
+      },
+      {
+        "##eventHandlerType": "Close Side Panel",
+        id: "mzkpf86cxo",
+      },
+      {
+        "##eventHandlerType": "Navigate To",
+        id: "h0uDFeJa8A",
+      },
+      {
+        parameters: {
+          autoDismiss: true,
+          type: "success",
+          message: "{{ actions.1.row }}",
+        },
+        "##eventHandlerType": "Show Notification",
+        id: "JEI5lAyJZ",
+      },
+    ]
+    updateReferencesInObject({
+      obj,
+      modifiedIndex: 2,
+      action: "move",
+      label: "actions",
+      originalIndex: 1,
+    })
+
+    expect(obj).toEqual([
+      {
+        "##eventHandlerType": "Validate Form",
+        id: "cCD0Dwcnq",
+      },
+      {
+        "##eventHandlerType": "Close Screen Modal",
+        id: "3fbbIOfN0H",
+      },
+      {
+        "##eventHandlerType": "Save Row",
+        parameters: {
+          tableId: "ta_bb_employee",
+        },
+        id: "aehg5cTmhR",
+      },
+      {
+        "##eventHandlerType": "Close Side Panel",
+        id: "mzkpf86cxo",
+      },
+      {
+        "##eventHandlerType": "Navigate To",
+        id: "h0uDFeJa8A",
+      },
+      {
+        parameters: {
+          autoDismiss: true,
+          type: "success",
+          message: "{{ actions.2.row }}",
+        },
+        "##eventHandlerType": "Show Notification",
+        id: "JEI5lAyJZ",
+      },
+    ])
+  })
+
+  it("should handle on 'move' of action being referenced, dragged to a lower index", () => {
+    let obj = [
+      {
+        "##eventHandlerType": "Save Row",
+        parameters: {
+          tableId: "ta_bb_employee",
+        },
+        id: "aehg5cTmhR",
+      },
+      {
+        "##eventHandlerType": "Validate Form",
+        id: "cCD0Dwcnq",
+      },
+      {
+        "##eventHandlerType": "Close Screen Modal",
+        id: "3fbbIOfN0H",
+      },
+      {
+        "##eventHandlerType": "Close Side Panel",
+        id: "mzkpf86cxo",
+      },
+      {
+        "##eventHandlerType": "Navigate To",
+        id: "h0uDFeJa8A",
+      },
+      {
+        parameters: {
+          autoDismiss: true,
+          type: "success",
+          message: "{{ actions.4.row }}",
+        },
+        "##eventHandlerType": "Show Notification",
+        id: "JEI5lAyJZ",
+      },
+    ]
+    updateReferencesInObject({
+      obj,
+      modifiedIndex: 0,
+      action: "move",
+      label: "actions",
+      originalIndex: 4,
+    })
+
+    expect(obj).toEqual([
+      {
+        "##eventHandlerType": "Save Row",
+        parameters: {
+          tableId: "ta_bb_employee",
+        },
+        id: "aehg5cTmhR",
+      },
+      {
+        "##eventHandlerType": "Validate Form",
+        id: "cCD0Dwcnq",
+      },
+      {
+        "##eventHandlerType": "Close Screen Modal",
+        id: "3fbbIOfN0H",
+      },
+      {
+        "##eventHandlerType": "Close Side Panel",
+        id: "mzkpf86cxo",
+      },
+      {
+        "##eventHandlerType": "Navigate To",
+        id: "h0uDFeJa8A",
+      },
+      {
+        parameters: {
+          autoDismiss: true,
+          type: "success",
+          message: "{{ actions.0.row }}",
+        },
+        "##eventHandlerType": "Show Notification",
+        id: "JEI5lAyJZ",
+      },
+    ])
+  })
+})
diff --git a/packages/builder/src/components/design/settings/controls/ButtonActionEditor/ButtonActionDrawer.svelte b/packages/builder/src/components/design/settings/controls/ButtonActionEditor/ButtonActionDrawer.svelte
index f9541ea79f..109f9f62a2 100644
--- a/packages/builder/src/components/design/settings/controls/ButtonActionEditor/ButtonActionDrawer.svelte
+++ b/packages/builder/src/components/design/settings/controls/ButtonActionEditor/ButtonActionDrawer.svelte
@@ -15,6 +15,7 @@
     getEventContextBindings,
     getActionBindings,
     makeStateBinding,
+    updateReferencesInObject,
   } from "builderStore/dataBinding"
   import { cloneDeep } from "lodash/fp"
 
@@ -30,6 +31,7 @@
 
   let actionQuery
   let selectedAction = actions?.length ? actions[0] : null
+  let originalActionIndex
 
   const setUpdateActions = actions => {
     return actions
@@ -115,6 +117,14 @@
     if (isSelected) {
       selectedAction = actions?.length ? actions[0] : null
     }
+
+    // Update action binding references
+    updateReferencesInObject({
+      obj: actions,
+      modifiedIndex: index,
+      action: "delete",
+      label: "actions",
+    })
   }
 
   const toggleActionList = () => {
@@ -146,9 +156,29 @@
 
   function handleDndConsider(e) {
     actions = e.detail.items
+
+    // set the initial index of the action being dragged
+    if (e.detail.info.trigger === "draggedEntered") {
+      originalActionIndex = actions.findIndex(
+        action => action.id === e.detail.info.id
+      )
+    }
   }
   function handleDndFinalize(e) {
     actions = e.detail.items
+
+    // Update action binding references
+    updateReferencesInObject({
+      obj: actions,
+      modifiedIndex: actions.findIndex(
+        action => action.id === e.detail.info.id
+      ),
+      action: "move",
+      label: "actions",
+      originalIndex: originalActionIndex,
+    })
+
+    originalActionIndex = -1
   }
 
   const getAllBindings = (actionBindings, eventContextBindings, actions) => {
@@ -289,7 +319,7 @@
   </Layout>
   <Layout noPadding>
     {#if selectedActionComponent && !showAvailableActions}
-      {#key selectedAction.id}
+      {#key (selectedAction.id, originalActionIndex)}
         <div class="selected-action-container">
           <svelte:component
             this={selectedActionComponent}