diff --git a/server/engine/src/main/resources/resourceBundles/messages_en.properties b/server/engine/src/main/resources/resourceBundles/messages_en.properties
index cb5c64b47b..f2f0b77e2d 100644
--- a/server/engine/src/main/resources/resourceBundles/messages_en.properties
+++ b/server/engine/src/main/resources/resourceBundles/messages_en.properties
@@ -39,6 +39,7 @@ parsers.alphaNumeric=Only alphanumerics are allowed for %s
 parsers.startsWith=String must starts with %s values
 parsers.stringLengthRange=String length must be between %s and %s
 parsers.allowedStringValues=Only allowed value(s): %s
+parsers.notAllowedVariableName=Variable name %s is not allowed
 postprocessing.copybookHasErrors=Errors inside the copybook
 ErrorStrategy.endOfFile=Unexpected end of file
 ErrorStrategy.endOfLine=Unexpected end of line
diff --git a/server/engine/src/test/java/org/eclipse/lsp/cobol/usecases/TestVariableNameNotAllowed.java b/server/engine/src/test/java/org/eclipse/lsp/cobol/usecases/TestVariableNameNotAllowed.java
new file mode 100644
index 0000000000..74d7ecfd1c
--- /dev/null
+++ b/server/engine/src/test/java/org/eclipse/lsp/cobol/usecases/TestVariableNameNotAllowed.java
@@ -0,0 +1,54 @@
+/*
+ * Copyright (c) 2024 Broadcom.
+ * The term "Broadcom" refers to Broadcom Inc. and/or its subsidiaries.
+ *
+ * This program and the accompanying materials are made
+ * available under the terms of the Eclipse Public License 2.0
+ * which is available at https://www.eclipse.org/legal/epl-2.0/
+ *
+ * SPDX-License-Identifier: EPL-2.0
+ *
+ * Contributors:
+ *    Broadcom, Inc. - initial API and implementation
+ *    DAF Trucks NV – implementation of DaCo COBOL statements
+ *    and DAF development standards
+ *
+ */
+package org.eclipse.lsp.cobol.usecases;
+
+import com.google.common.collect.ImmutableList;
+import com.google.common.collect.ImmutableMap;
+import org.eclipse.lsp.cobol.common.error.ErrorSource;
+import org.eclipse.lsp.cobol.test.engine.UseCaseEngine;
+import org.eclipse.lsp4j.Diagnostic;
+import org.eclipse.lsp4j.DiagnosticSeverity;
+import org.eclipse.lsp4j.Range;
+import org.junit.jupiter.params.ParameterizedTest;
+import org.junit.jupiter.params.provider.ValueSource;
+
+/** Tests the allowed name on a variable. */
+public class TestVariableNameNotAllowed {
+  public static final String TEXT =
+          "       IDENTIFICATION DIVISION.\n"
+                  + "       PROGRAM-ID.    TEST12.\n"
+                  + "       ENVIRONMENT DIVISION.\n"
+                  + "       DATA DIVISION.\n"
+                  + "       WORKING-STORAGE SECTION.\n"
+                  + "       01 {$*%s|1} PIC 9(9) VALUE 0.\n"
+                  + "       PROCEDURE DIVISION.";
+
+  @ParameterizedTest
+  @ValueSource(strings = {"INSERT", "BIT", "CONDITION", "COPY", "CURSOR"})
+  void test(String input) {
+    UseCaseEngine.runTest(
+            String.format(TEXT, input),
+            ImmutableList.of(),
+            ImmutableMap.of(
+                    "1",
+                    new Diagnostic(
+                            new Range(),
+                            String.format("Variable name %s is not allowed", input),
+                            DiagnosticSeverity.Error,
+                            ErrorSource.PARSING.getText())));
+  }
+}
diff --git a/server/parser/src/main/antlr4/org/eclipse/lsp/cobol/core/parser/CobolDataDivisionParser.g4 b/server/parser/src/main/antlr4/org/eclipse/lsp/cobol/core/parser/CobolDataDivisionParser.g4
index fc4e622abe..8e86586aca 100644
--- a/server/parser/src/main/antlr4/org/eclipse/lsp/cobol/core/parser/CobolDataDivisionParser.g4
+++ b/server/parser/src/main/antlr4/org/eclipse/lsp/cobol/core/parser/CobolDataDivisionParser.g4
@@ -204,7 +204,9 @@ dialectDescriptionEntry
    ;
 
 entryName
-   : (FILLER | { validateLength(_input.LT(1).getText(), "Variable name", 30);} dataName)
+   : (FILLER | { validateLength(_input.LT(1).getText(), "Variable name", 30);
+         validateAllowedVariableName(_input.LT(1).getText(), "INSERT",
+         "BIT", "CONDITION", "COPY", "CURSOR");} dataName)
    ;
 
 dataGroupUsageClause
diff --git a/server/parser/src/main/antlr4/org/eclipse/lsp/cobol/core/parser/CobolParser.g4 b/server/parser/src/main/antlr4/org/eclipse/lsp/cobol/core/parser/CobolParser.g4
index ed27ea86e1..ca84fde563 100644
--- a/server/parser/src/main/antlr4/org/eclipse/lsp/cobol/core/parser/CobolParser.g4
+++ b/server/parser/src/main/antlr4/org/eclipse/lsp/cobol/core/parser/CobolParser.g4
@@ -579,7 +579,9 @@ dialectDescriptionEntry
    ;
 
 entryName
-   : (FILLER | { validateLength(_input.LT(1).getText(), "Variable name", 30);} dataName)
+   : (FILLER | { validateLength(_input.LT(1).getText(), "Variable name", 30);
+         validateAllowedVariableName(_input.LT(1).getText(), "INSERT",
+         "BIT", "CONDITION", "COPY", "CURSOR");} dataName)
    ;
 
 dataGroupUsageClause
diff --git a/server/parser/src/main/java/org/eclipse/lsp/cobol/core/MessageServiceParser.java b/server/parser/src/main/java/org/eclipse/lsp/cobol/core/MessageServiceParser.java
index 964a9d03a2..968fe32979 100644
--- a/server/parser/src/main/java/org/eclipse/lsp/cobol/core/MessageServiceParser.java
+++ b/server/parser/src/main/java/org/eclipse/lsp/cobol/core/MessageServiceParser.java
@@ -18,6 +18,8 @@
 package org.eclipse.lsp.cobol.core;
 
 import com.google.common.annotations.VisibleForTesting;
+
+import java.util.Arrays;
 import java.util.regex.Pattern;
 import org.antlr.v4.runtime.Parser;
 import org.antlr.v4.runtime.TokenStream;
@@ -116,6 +118,18 @@ protected void validateLength(String input, String objectType, Integer validLeng
     }
   }
 
+  /**
+   * Validate allowed variable names and throw an error if it is incorrect
+   *
+   * @param input string to check
+   * @param notAllowedValues arrays of not allowed variable names for Input parameter
+   */
+  protected void validateAllowedVariableName(String input, String... notAllowedValues) {
+    if (input != null && Arrays.asList(notAllowedValues).contains(input.toUpperCase())) {
+      notifyError("parsers.notAllowedVariableName", input);
+    }
+  }
+
   /**
    * Validate a string for alphanumeric characters and throw an error if it is incorrect
    *