diff --git a/common/src/app/common/types/token.cljc b/common/src/app/common/types/token.cljc
index 7794b45e1..6afa458fc 100644
--- a/common/src/app/common/types/token.cljc
+++ b/common/src/app/common/types/token.cljc
@@ -59,7 +59,8 @@
   [t]
   (token-types t))
 
-(def token-name-ref :string)
+(def token-name-ref
+  [:and :string [:re #"^(?!\$)([a-zA-Z0-9-$]+\.?)*(?<!\.)$"]])
 
 (defn valid-token-name-ref?
   [n]
diff --git a/frontend/src/app/main/ui/workspace/tokens/form.cljs b/frontend/src/app/main/ui/workspace/tokens/form.cljs
index 69e63ddf3..8a18e7869 100644
--- a/frontend/src/app/main/ui/workspace/tokens/form.cljs
+++ b/frontend/src/app/main/ui/workspace/tokens/form.cljs
@@ -46,14 +46,13 @@
   Caution: This will allow a trailing dot like `token-name.`,
   But we will trim that in the `finalize-name`,
   to not throw too many errors while the user is editing."
-  #"([a-zA-Z0-9-]+\.?)*")
+  #"(?!\$)([a-zA-Z0-9-$]+\.?)*")
 
 (def valid-token-name-schema
   (m/-simple-schema
    {:type :token/invalid-token-name
     :pred #(re-matches valid-token-name-regexp %)
-    :type-properties {:error/fn #(str (:value %) " is not a valid token name.
-Token names should only contain letters and digits separated by . characters.")}}))
+    :type-properties {:error/fn #(str (:value %) (tr "workspace.token.token-name-validation-error"))}}))
 
 (defn token-name-schema
   "Generate a dynamic schema validation to check if a token path derived from the name already exists at `tokens-tree`."
diff --git a/frontend/translations/en.po b/frontend/translations/en.po
index d73a7639f..4b8b77f54 100644
--- a/frontend/translations/en.po
+++ b/frontend/translations/en.po
@@ -6318,6 +6318,12 @@ msgstr "You currently have no themes."
 msgid "workspace.token.num-sets"
 msgstr "%s sets"
 
+
+#: src/app/main/ui/workspace/tokens/form.cljs:55
+msgid "workspace.token.token-name-validation-error"
+msgstr " is not a valid token name.
+Token names should only contain letters and digits separated by . characters and must not start with a $ sign."
+
 #: src/app/main/ui/workspace/tokens/sidebar.cljs:66
 msgid "workspace.token.original-value"
 msgstr "Original value: "
@@ -6931,4 +6937,3 @@ msgstr "Notifications"
 
 msgid "comments.mentions.not-found"
 msgstr "No people found for @%s"
-