diff --git a/CHANGELOG.md b/CHANGELOG.md
index eced7a56..2ba3d34b 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,4 +1,8 @@
-# 7.8.3 - 2026-02-09
+# 7.8.5 - 2026-02-09
+
+fix: further optimize code variables pattern matching
+
+# 7.8.4 - 2026-02-09
 
 fix: do not pattern match long values in code variables
 
diff --git a/posthog/exception_utils.py b/posthog/exception_utils.py
index dfc92ccf..4cec07e4 100644
--- a/posthog/exception_utils.py
+++ b/posthog/exception_utils.py
@@ -66,6 +66,7 @@
 CODE_VARIABLES_TOO_LONG_VALUE = "$$_posthog_value_too_long_$$"
 
 _MAX_VALUE_LENGTH_FOR_PATTERN_MATCH = 5_000
+_REGEX_METACHARACTERS = frozenset(r"\.^$*+?{}[]|()")
 
 DEFAULT_TOTAL_VARIABLES_SIZE_LIMIT = 20 * 1024
 
@@ -931,18 +932,47 @@ def strip_string(value, max_length=None):
     )
 
 
+def _extract_plain_substring(pattern):
+    # Matches inline flag groups like (?i), (?ai), (?ims), etc. that include the 'i' flag.
+    # Python regex flags: a=ASCII, i=IGNORECASE, L=LOCALE, m=MULTILINE, s=DOTALL, u=UNICODE, x=VERBOSE
+    inline_flags = re.match(r"^\(\?[aiLmsux]*i[aiLmsux]*\)", pattern)
+    if not inline_flags:
+        return None
+    remainder = pattern[inline_flags.end() :]
+    if not remainder or any(c in _REGEX_METACHARACTERS for c in remainder):
+        return None
+    return remainder.lower()
+
+
 def _compile_patterns(patterns):
-    compiled = []
+    if not patterns:
+        return None
+    substrings = []
+    regexes = []
     for pattern in patterns:
-        try:
-            compiled.append(re.compile(pattern))
-        except Exception:
-            pass
-    return compiled
+        simple = _extract_plain_substring(pattern)
+        if simple is not None:
+            substrings.append(simple)
+        else:
+            try:
+                regexes.append(re.compile(pattern))
+            except Exception:
+                pass
+    if not substrings and not regexes:
+        return None
+    return (substrings, regexes)
 
 
 def _pattern_matches(name, patterns):
-    for pattern in patterns:
+    if patterns is None:
+        return False
+    substrings, regexes = patterns
+    if substrings:
+        name_lower = name.lower()
+        for s in substrings:
+            if s in name_lower:
+                return True
+    for pattern in regexes:
         if pattern.search(name):
             return True
     return False
diff --git a/posthog/test/test_exception_capture.py b/posthog/test/test_exception_capture.py
index 24d84935..a90a000e 100644
--- a/posthog/test/test_exception_capture.py
+++ b/posthog/test/test_exception_capture.py
@@ -590,3 +590,52 @@ def test_mask_sensitive_data_circular_ref():
     result = _mask_sensitive_data(circular_list, compiled_mask)
     assert result[0] == "item"
     assert result[1] == "<circular ref>"
+
+
+def test_compile_patterns_fast_path_and_regex_fallback():
+    from posthog.exception_utils import _compile_patterns, _pattern_matches
+
+    # Simple case-insensitive patterns should become substrings
+    simple_only = _compile_patterns([r"(?i)password", r"(?i)token", r"(?i)jwt"])
+    substrings, regexes = simple_only
+    assert substrings == ["password", "token", "jwt"]
+    assert regexes == []
+
+    assert _pattern_matches("my_password_var", simple_only) is True
+    assert _pattern_matches("MY_TOKEN", simple_only) is True
+    assert _pattern_matches("safe_variable", simple_only) is False
+
+    # Complex regex patterns should stay as compiled regexes
+    complex_only = _compile_patterns([r"^__.*", r"\d{3,}", r"^sk_live_"])
+    substrings, regexes = complex_only
+    assert substrings == []
+    assert len(regexes) == 3
+
+    assert _pattern_matches("__dunder", complex_only) is True
+    assert _pattern_matches("has_999_numbers", complex_only) is True
+    assert _pattern_matches("sk_live_abc123", complex_only) is True
+    assert _pattern_matches("normal_var", complex_only) is False
+
+    # Mixed: simple substrings + complex regexes together
+    mixed = _compile_patterns(
+        [
+            r"(?i)secret",  # simple
+            r"(?i)api_key",  # simple
+            r"^__.*",  # regex
+            r"\btoken_\w+",  # regex
+        ]
+    )
+    substrings, regexes = mixed
+    assert substrings == ["secret", "api_key"]
+    assert len(regexes) == 2
+
+    # Substring matches
+    assert _pattern_matches("my_secret", mixed) is True
+    assert _pattern_matches("API_KEY_VALUE", mixed) is True
+
+    # Regex matches
+    assert _pattern_matches("__private", mixed) is True
+    assert _pattern_matches("token_abc", mixed) is True
+
+    # No match
+    assert _pattern_matches("safe_var", mixed) is False
diff --git a/posthog/version.py b/posthog/version.py
index 9b7cad35..9581625a 100644
--- a/posthog/version.py
+++ b/posthog/version.py
@@ -1,4 +1,4 @@
-VERSION = "7.8.4"
+VERSION = "7.8.5"
 
 if __name__ == "__main__":
     print(VERSION, end="")  # noqa: T201