System variables are not replicated correctly when using STATEMENT mode, except for the following variables when they are used with session scope:

When MIXED mode is used, the variables in the preceding list, when used with session scope, cause a switch from statement-based to row-based logging. See Section 5.2.4.3, “Mixed Binary Logging Format”.

sql_mode is also replicated except for the NO_DIR_IN_CREATE mode; the slave always preserves its own value for NO_DIR_IN_CREATE, regardless of changes to it on the master. This is true for all replication formats.

However, when mysqlbinlog parses a SET @@sql_mode = mode statement, the full mode value, including NO_DIR_IN_CREATE, is passed to the receiving server. For this reason, replication of such a statement may not be safe when STATEMENT mode is in use.

The default_storage_engine and storage_engine system variables are not replicated, regardless of the logging mode; this is intended to facilitate replication between different storage engines.

In statement-based replication, session variables are not replicated properly when used in statements that update tables. For example, the following sequence of statements will not insert the same data on the master and the slave:

SET max_join_size=1000;
INSERT INTO mytable VALUES(@@max_join_size);

This does not apply to the common sequence:

SET time_zone=...;
INSERT INTO mytable VALUES(CONVERT_TZ(..., ..., @@time_zone));

Replication of session variables is not a problem when row-based replication is being used, in which case, session variables are always replicated safely. See Section 17.1.2, “Replication Formats”.

In MySQL 5.5, the following session variables are written to the binary log and honored by the replication slave when parsing the binary log, regardless of the logging format:

It is strongly recommended that you always use the same setting for the lower_case_table_names system variable on both master and slave. In particular, when a case-sensitive filesystem is used, setting this variable to 1 on the slave, but to a different value on the master, can cause two types of problems: Names of databases are not converted to lowercase; in addition, when using row-based replication names of tables are also not converted. Either of these problems can cause replication to fail. This is a known issue, which is fixed in MySQL 5.6.