diff --git a/changelog/27563.txt b/changelog/27563.txt
new file mode 100644
index 0000000000..294b5e7cf6
--- /dev/null
+++ b/changelog/27563.txt
@@ -0,0 +1,3 @@
+```release-note:bug
+storage/azure: Fix invalid account name initialization bug
+```
\ No newline at end of file
diff --git a/physical/azure/azure.go b/physical/azure/azure.go
index b655df8d3c..fc016e7fe9 100644
--- a/physical/azure/azure.go
+++ b/physical/azure/azure.go
@@ -68,8 +68,8 @@ func NewAzureBackend(conf map[string]string, logger log.Logger) (physical.Backen
 			return nil, fmt.Errorf("'accountName' must be set")
 		}
 	}
-	if err := validateAccountName(name); err != nil {
-		return nil, fmt.Errorf("invalid account name %s: %w", name, err)
+	if err := validateAccountName(accountName); err != nil {
+		return nil, fmt.Errorf("invalid account name %s: %w", accountName, err)
 	}
 
 	accountKey := os.Getenv("AZURE_ACCOUNT_KEY")
diff --git a/physical/azure/azure_test.go b/physical/azure/azure_test.go
index 22344a6bca..2e491bd9b8 100644
--- a/physical/azure/azure_test.go
+++ b/physical/azure/azure_test.go
@@ -35,7 +35,7 @@ func testFixture(t *testing.T) (*AzureBackend, func()) {
 	t.Helper()
 
 	ts := time.Now().UnixNano()
-	name := fmt.Sprintf("vlt%d", ts)
+	name := fmt.Sprintf("vlt-%d", ts)
 	_ = os.Setenv("AZURE_BLOB_CONTAINER", name)
 
 	cleanup := func() {}