diff --git a/.changesets/fix_renee_operation_variables.md b/.changesets/fix_renee_operation_variables.md
new file mode 100644
index 0000000000..99a795a190
--- /dev/null
+++ b/.changesets/fix_renee_operation_variables.md
@@ -0,0 +1,13 @@
+### Fix GraphQL query directives validation bug ([PR #5753](https://github.com/apollographql/router/pull/5753))
+
+GraphQL supports an obscure syntax, where a variable is used in a directive application on the same operation where the variable is declared.
+
+The router used to reject queries like this, but now they are accepted:
+
+```graphql
+query GetSomething($var: Int!) @someDirective(argument: $var) {
+  something
+}
+```
+
+By [@goto-bus-stop](https://github.com/goto-bus-stop) in https://github.com/apollographql/router/pull/5753
diff --git a/Cargo.lock b/Cargo.lock
index ef632245d5..b66ac53f6e 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -395,9 +395,9 @@ checksum = "b3d1d046238990b9cf5bcde22a3fb3584ee5cf65fb2765f454ed428c7a0063da"
 
 [[package]]
 name = "apollo-compiler"
-version = "1.0.0-beta.19"
+version = "1.0.0-beta.20"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "3b21b81064ebf506f5a4073f5ef7a3a9cfdba29904814fa3f42612b9055b37f2"
+checksum = "07961541ebb5c85cc02ea0f08357e31b30537674bbca818884f1fc658fa99116"
 dependencies = [
  "ahash",
  "apollo-parser",
@@ -412,16 +412,6 @@ dependencies = [
  "uuid",
 ]
 
-[[package]]
-name = "apollo-encoder"
-version = "0.8.0"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "ee9f27b20841d14923dd5f0714a79f86360b23492d2f98ab5d1651471a56b7a4"
-dependencies = [
- "apollo-parser",
- "thiserror",
-]
-
 [[package]]
 name = "apollo-federation"
 version = "1.52.0"
@@ -464,9 +454,9 @@ dependencies = [
 
 [[package]]
 name = "apollo-parser"
-version = "0.7.7"
+version = "0.8.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "6bb7c8a9776825e5524b5ab3a7f478bf091a054180f244dff85814452cb87d90"
+checksum = "f17a43dc64e71ca7140e646b99bf86ae721ebb801d2aec44e29a654c4d035ab8"
 dependencies = [
  "memchr",
  "rowan",
@@ -647,7 +637,7 @@ version = "1.52.0"
 dependencies = [
  "apollo-parser",
  "apollo-router",
- "apollo-smith 0.5.0",
+ "apollo-smith",
  "arbitrary",
  "criterion",
  "memory-stats",
@@ -691,22 +681,9 @@ dependencies = [
 
 [[package]]
 name = "apollo-smith"
-version = "0.5.0"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "441a51f1055d2eebcda41b55066de925502e11c97097c6d1bab0da5bdeb5c70f"
-dependencies = [
- "apollo-encoder",
- "apollo-parser",
- "arbitrary",
- "once_cell",
- "thiserror",
-]
-
-[[package]]
-name = "apollo-smith"
-version = "0.9.0"
+version = "0.10.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "4ae8c0ec27715028b24a0a98ac53e88ac4a980e6d519cdb37265d2f2c76c864a"
+checksum = "84ef0a8fba05f32a14d03eb3ff74f556cecca820012d5846770b839c75332b38"
 dependencies = [
  "apollo-compiler",
  "apollo-parser",
@@ -6144,7 +6121,7 @@ dependencies = [
  "apollo-compiler",
  "apollo-parser",
  "apollo-router",
- "apollo-smith 0.9.0",
+ "apollo-smith",
  "async-trait",
  "env_logger 0.10.2",
  "http 0.2.12",
diff --git a/Cargo.toml b/Cargo.toml
index 760349ac52..7c5fe5a189 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -49,9 +49,9 @@ debug = 1
 # Dependencies used in more than one place are specified here in order to keep versions in sync:
 # https://doc.rust-lang.org/cargo/reference/workspaces.html#the-dependencies-table
 [workspace.dependencies]
-apollo-compiler = "=1.0.0-beta.19"
-apollo-parser = "0.7.6"
-apollo-smith = { version = "0.5.0", features = ["parser-impl"] }
+apollo-compiler = "=1.0.0-beta.20"
+apollo-parser = "0.8.0"
+apollo-smith = "0.10.0"
 async-trait = "0.1.77"
 hex = { version = "0.4.3", features = ["serde"] }
 http = "0.2.11"
diff --git a/apollo-federation/tests/query_plan/build_query_plan_tests/handles_operations_with_directives.rs b/apollo-federation/tests/query_plan/build_query_plan_tests/handles_operations_with_directives.rs
index 986c43a0d2..2f344104fc 100644
--- a/apollo-federation/tests/query_plan/build_query_plan_tests/handles_operations_with_directives.rs
+++ b/apollo-federation/tests/query_plan/build_query_plan_tests/handles_operations_with_directives.rs
@@ -244,7 +244,7 @@ fn test_if_directives_with_arguments_applied_on_queries_are_ok() {
 }
 
 #[test]
-#[should_panic(expected = r#"unused variable: `$some_var`"#)]
+#[should_panic(expected = r#"snapshot assertion"#)]
 // TODO: investigate this failure
 fn subgraph_query_retains_the_query_variables_used_in_the_directives_applied_to_the_query() {
     let planner = planner!(
diff --git a/examples/supergraph-sdl/rust/Cargo.toml b/examples/supergraph-sdl/rust/Cargo.toml
index 2326e049e7..18e0c2d85c 100644
--- a/examples/supergraph-sdl/rust/Cargo.toml
+++ b/examples/supergraph-sdl/rust/Cargo.toml
@@ -5,7 +5,7 @@ edition = "2021"
 
 [dependencies]
 anyhow = "1"
-apollo-compiler = "=1.0.0-beta.19"
+apollo-compiler = "=1.0.0-beta.20"
 apollo-router = { path = "../../../apollo-router" }
 async-trait = "0.1"
 tower = { version = "0.4", features = ["full"] }
diff --git a/fuzz/Cargo.toml b/fuzz/Cargo.toml
index 928b68ed73..451ea09375 100644
--- a/fuzz/Cargo.toml
+++ b/fuzz/Cargo.toml
@@ -12,8 +12,8 @@ cargo-fuzz = true
 [dependencies]
 libfuzzer-sys = "0.4"
 apollo-compiler.workspace = true
-apollo-parser = "0.7.6"
-apollo-smith = "0.9.0"
+apollo-parser.workspace = true
+apollo-smith.workspace = true
 env_logger = "0.10.2"
 log = "0.4"
 reqwest = { workspace = true, features = ["json", "blocking"] }