diff --git a/.betterer.results b/.betterer.results
index 2af5d4872d0..6f16c0ac58a 100644
--- a/.betterer.results
+++ b/.betterer.results
@@ -1682,9 +1682,6 @@ exports[`better eslint`] = {
     "public/app/features/alerting/unified/components/rule-editor/RuleEditorSection.tsx:5381": [
       [0, 0, 0, "No untranslated strings. Wrap text with <Trans />", "0"]
     ],
-    "public/app/features/alerting/unified/components/rule-editor/RuleFolderPicker.tsx:5381": [
-      [0, 0, 0, "No untranslated strings. Wrap text with <Trans />", "0"]
-    ],
     "public/app/features/alerting/unified/components/rule-editor/RuleInspector.tsx:5381": [
       [0, 0, 0, "Do not use any type assertions.", "0"],
       [0, 0, 0, "No untranslated strings. Wrap text with <Trans />", "1"],
diff --git a/public/app/features/alerting/unified/CloneRuleEditor.test.tsx b/public/app/features/alerting/unified/CloneRuleEditor.test.tsx
index 38155aa917a..a34dde92bc8 100644
--- a/public/app/features/alerting/unified/CloneRuleEditor.test.tsx
+++ b/public/app/features/alerting/unified/CloneRuleEditor.test.tsx
@@ -3,9 +3,7 @@ import { FormProvider, useForm } from 'react-hook-form';
 import { getWrapper, render, waitFor, waitForElementToBeRemoved, within } from 'test/test-utils';
 import { byRole, byTestId, byText } from 'testing-library-selector';
 
-import { selectors } from '@grafana/e2e-selectors/src';
 import { setDataSourceSrv } from '@grafana/runtime';
-import { DashboardSearchItem, DashboardSearchItemType } from 'app/features/search/types';
 import { RuleWithLocation } from 'app/types/unified-alerting';
 
 import { AccessControlAction } from '../../../types';
@@ -18,7 +16,7 @@ import {
 
 import { cloneRuleDefinition, CloneRuleEditor } from './CloneRuleEditor';
 import { ExpressionEditorProps } from './components/rule-editor/ExpressionEditor';
-import { mockFeatureDiscoveryApi, mockSearchApi, setupMswServer } from './mockApi';
+import { mockFeatureDiscoveryApi, setupMswServer } from './mockApi';
 import {
   grantUserPermissions,
   mockDataSource,
@@ -44,12 +42,6 @@ jest.mock('./components/rule-editor/ExpressionEditor', () => ({
   ),
 }));
 
-// For simplicity of the test we mock the NotificationPreview component
-// Otherwise we would need to mock a few more HTTP api calls which are not relevant for these tests
-jest.mock('./components/rule-editor/notificaton-preview/NotificationPreview', () => ({
-  NotificationPreview: () => <div />,
-}));
-
 jest.spyOn(AlertingQueryRunner.prototype, 'run').mockImplementation(() => Promise.resolve());
 
 const server = setupMswServer();
@@ -58,7 +50,7 @@ const ui = {
   inputs: {
     name: byRole('textbox', { name: 'name' }),
     expr: byTestId('expr'),
-    folderContainer: byTestId(selectors.components.FolderPicker.containerV2),
+    folderContainer: byTestId('folder-picker'),
     namespace: byTestId('namespace-picker'),
     group: byTestId('group-picker'),
     annotationValue: (idx: number) => byTestId(`annotation-value-${idx}`),
@@ -84,14 +76,6 @@ describe('CloneRuleEditor', function () {
     it('should populate form values from the existing alert rule', async function () {
       setDataSourceSrv(new MockDataSourceSrv({}));
 
-      mockSearchApi(server).search([
-        mockDashboardSearchItem({
-          title: 'folder-one',
-          uid: grafanaRulerRule.grafana_alert.namespace_uid,
-          type: DashboardSearchItemType.DashDB,
-        }),
-      ]);
-
       render(
         <CloneRuleEditor sourceRuleId={{ uid: grafanaRulerRule.grafana_alert.uid, ruleSourceName: 'grafana' }} />,
         { wrapper: Wrapper }
@@ -105,7 +89,7 @@ describe('CloneRuleEditor', function () {
       await waitFor(() => {
         expect(ui.inputs.name.get()).toHaveValue(`${grafanaRulerRule.grafana_alert.title} (copy)`);
       });
-      expect(ui.inputs.folderContainer.get()).toHaveTextContent('folder-one');
+      expect(ui.inputs.folderContainer.get()).toHaveTextContent('Folder A');
       expect(ui.inputs.group.get()).toHaveTextContent(grafanaRulerRule.grafana_alert.rule_group);
       expect(
         byRole('listitem', {
@@ -147,16 +131,6 @@ describe('CloneRuleEditor', function () {
         rules: [originRule],
       });
 
-      mockSearchApi(server).search([
-        mockDashboardSearchItem({
-          title: 'folder-one',
-          uid: '123',
-          type: DashboardSearchItemType.DashDB,
-          folderTitle: 'folder-one',
-          folderUid: '123',
-        }),
-      ]);
-
       render(
         <CloneRuleEditor
           sourceRuleId={{
@@ -313,18 +287,3 @@ describe('CloneRuleEditor', function () {
     });
   });
 });
-
-function mockDashboardSearchItem(searchItem: Partial<DashboardSearchItem>) {
-  return {
-    title: '',
-    uid: '',
-    type: DashboardSearchItemType.DashDB,
-    url: '',
-    uri: '',
-    items: [],
-    tags: [],
-    slug: '',
-    isStarred: false,
-    ...searchItem,
-  };
-}
diff --git a/public/app/features/alerting/unified/RuleEditorCloudOnlyAllowed.test.tsx b/public/app/features/alerting/unified/RuleEditorCloudOnlyAllowed.test.tsx
index cfc05cee73d..e99c56856d2 100644
--- a/public/app/features/alerting/unified/RuleEditorCloudOnlyAllowed.test.tsx
+++ b/public/app/features/alerting/unified/RuleEditorCloudOnlyAllowed.test.tsx
@@ -1,13 +1,11 @@
 import { renderRuleEditor, ui } from 'test/helpers/alertingRuleEditor';
-import { screen, waitForElementToBeRemoved } from 'test/test-utils';
+import { screen } from 'test/test-utils';
 import { byText } from 'testing-library-selector';
 
 import { contextSrv } from 'app/core/services/context_srv';
 import { AccessControlAction } from 'app/types';
 import { PromApiFeatures, PromApplication } from 'app/types/unified-alerting-dto';
 
-import { searchFolders } from '../../manage-dashboards/state/actions';
-
 import { discoverFeaturesByUid } from './api/buildInfo';
 import { fetchRulerRulesGroup } from './api/ruler';
 import { ExpressionEditorProps } from './components/rule-editor/ExpressionEditor';
@@ -30,7 +28,6 @@ jest.mock('./api/ruler', () => ({
   fetchRulerRulesGroup: jest.fn(),
   fetchRulerRulesNamespace: jest.fn(),
 }));
-jest.mock('../../../../app/features/manage-dashboards/state/actions');
 
 // there's no angular scope in test and things go terribly wrong when trying to render the query editor row.
 // lets just skip it
@@ -116,8 +113,6 @@ const dataSources = {
 setupDataSources(...Object.values(dataSources));
 
 const mocks = {
-  // getAllDataSources: jest.mocked(config.getAllDataSources),
-  searchFolders: jest.mocked(searchFolders),
   api: {
     discoverFeaturesByUid: jest.mocked(discoverFeaturesByUid),
     fetchRulerRulesGroup: jest.mocked(fetchRulerRulesGroup),
@@ -181,11 +176,8 @@ describe('RuleEditor cloud: checking editable data sources', () => {
       return null;
     });
 
-    mocks.searchFolders.mockResolvedValue([]);
-
     // render rule editor, select mimir/loki managed alerts
     const { user } = renderRuleEditor();
-    await waitForElementToBeRemoved(screen.queryAllByTestId('Spinner'));
 
     await ui.inputs.name.find();
 
diff --git a/public/app/features/alerting/unified/RuleEditorCloudRules.test.tsx b/public/app/features/alerting/unified/RuleEditorCloudRules.test.tsx
index 6465ba48b86..a3398383671 100644
--- a/public/app/features/alerting/unified/RuleEditorCloudRules.test.tsx
+++ b/public/app/features/alerting/unified/RuleEditorCloudRules.test.tsx
@@ -1,7 +1,6 @@
-import userEvent from '@testing-library/user-event';
 import { renderRuleEditor, ui } from 'test/helpers/alertingRuleEditor';
 import { clickSelectOption } from 'test/helpers/selectOptionInTest';
-import { screen, waitForElementToBeRemoved } from 'test/test-utils';
+import { screen } from 'test/test-utils';
 
 import { selectors } from '@grafana/e2e-selectors';
 import { AccessControlAction } from 'app/types';
@@ -21,8 +20,6 @@ jest.mock('./components/rule-editor/ExpressionEditor', () => ({
   ),
 }));
 
-jest.mock('../../../../app/features/manage-dashboards/state/actions');
-
 jest.mock('app/core/components/AppChrome/AppChromeUpdate', () => ({
   AppChromeUpdate: ({ actions }: { actions: React.ReactNode }) => <div>{actions}</div>,
 }));
@@ -46,10 +43,7 @@ describe('RuleEditor cloud', () => {
   });
 
   it('can create a new cloud alert', async () => {
-    const user = userEvent.setup();
-
-    renderRuleEditor();
-    await waitForElementToBeRemoved(screen.queryAllByTestId('Spinner'));
+    const { user } = renderRuleEditor();
 
     const removeExpressionsButtons = screen.getAllByLabelText('Remove expression');
     expect(removeExpressionsButtons).toHaveLength(2);
diff --git a/public/app/features/alerting/unified/RuleEditorGrafanaRules.test.tsx b/public/app/features/alerting/unified/RuleEditorGrafanaRules.test.tsx
index d290b8f58e3..4f7776594fd 100644
--- a/public/app/features/alerting/unified/RuleEditorGrafanaRules.test.tsx
+++ b/public/app/features/alerting/unified/RuleEditorGrafanaRules.test.tsx
@@ -1,51 +1,24 @@
-import { screen, waitForElementToBeRemoved } from '@testing-library/react';
-import userEvent from '@testing-library/user-event';
 import * as React from 'react';
 import { renderRuleEditor, ui } from 'test/helpers/alertingRuleEditor';
 import { clickSelectOption } from 'test/helpers/selectOptionInTest';
+import { screen } from 'test/test-utils';
 import { byRole } from 'testing-library-selector';
 
 import { contextSrv } from 'app/core/services/context_srv';
 import { mockFeatureDiscoveryApi, setupMswServer } from 'app/features/alerting/unified/mockApi';
-import { DashboardSearchHit, DashboardSearchItemType } from 'app/features/search/types';
 import { AccessControlAction } from 'app/types';
 
-import { searchFolders } from '../../../../app/features/manage-dashboards/state/actions';
-
-import { ExpressionEditorProps } from './components/rule-editor/ExpressionEditor';
 import { grantUserPermissions, mockDataSource } from './mocks';
-import { grafanaRulerGroup, grafanaRulerRule } from './mocks/grafanaRulerApi';
+import { grafanaRulerGroup } from './mocks/grafanaRulerApi';
 import { setupDataSources } from './testSetup/datasources';
 import { buildInfoResponse } from './testSetup/featureDiscovery';
-import * as config from './utils/config';
-
-jest.mock('./components/rule-editor/ExpressionEditor', () => ({
-  ExpressionEditor: ({ value, onChange }: ExpressionEditorProps) => (
-    <input value={value} data-testid="expr" onChange={(e) => onChange(e.target.value)} />
-  ),
-}));
-
-jest.mock('../../../../app/features/manage-dashboards/state/actions');
 
 jest.mock('app/core/components/AppChrome/AppChromeUpdate', () => ({
   AppChromeUpdate: ({ actions }: { actions: React.ReactNode }) => <div>{actions}</div>,
 }));
 
-// there's no angular scope in test and things go terribly wrong when trying to render the query editor row.
-// lets just skip it
-jest.mock('app/features/query/components/QueryEditorRow', () => ({
-  QueryEditorRow: () => <p>hi</p>,
-}));
-
-jest.spyOn(config, 'getAllDataSources');
-
 jest.setTimeout(60 * 1000);
 
-const mocks = {
-  getAllDataSources: jest.mocked(config.getAllDataSources),
-  searchFolders: jest.mocked(searchFolders),
-};
-
 const server = setupMswServer();
 
 describe('RuleEditor grafana managed rules', () => {
@@ -83,41 +56,17 @@ describe('RuleEditor grafana managed rules', () => {
     setupDataSources(dataSources.default);
     mockFeatureDiscoveryApi(server).discoverDsFeatures(dataSources.default, buildInfoResponse.mimir);
 
-    mocks.getAllDataSources.mockReturnValue(Object.values(dataSources));
-    mocks.searchFolders.mockResolvedValue([
-      {
-        title: 'Folder A',
-        uid: grafanaRulerRule.grafana_alert.namespace_uid,
-        id: 1,
-        type: DashboardSearchItemType.DashDB,
-      },
-      {
-        title: 'Folder B',
-        id: 2,
-        uid: 'b',
-        type: DashboardSearchItemType.DashDB,
-      },
-      {
-        title: 'Folder / with slash',
-        uid: 'c',
-        id: 2,
-        type: DashboardSearchItemType.DashDB,
-      },
-    ] as DashboardSearchHit[]);
+    const { user } = renderRuleEditor();
 
-    renderRuleEditor();
-    await waitForElementToBeRemoved(screen.queryAllByTestId('Spinner'));
-
-    await userEvent.type(await ui.inputs.name.find(), 'my great new rule');
-
-    const folderInput = await ui.inputs.folder.find();
-    await clickSelectOption(folderInput, 'Folder A');
+    await user.type(await ui.inputs.name.find(), 'my great new rule');
+    await user.click(await screen.findByRole('button', { name: /select folder/i }));
+    await user.click(await screen.findByLabelText(/folder a/i));
     const groupInput = await ui.inputs.group.find();
-    await userEvent.click(await byRole('combobox').find(groupInput));
+    await user.click(await byRole('combobox').find(groupInput));
     await clickSelectOption(groupInput, grafanaRulerGroup.name);
-    await userEvent.type(ui.inputs.annotationValue(1).get(), 'some description');
+    await user.type(ui.inputs.annotationValue(1).get(), 'some description');
 
-    await userEvent.click(ui.buttons.saveAndExit.get());
+    await user.click(ui.buttons.saveAndExit.get());
 
     expect(await screen.findByRole('status')).toHaveTextContent('Rule added successfully');
   });
diff --git a/public/app/features/alerting/unified/__snapshots__/PanelAlertTabContent.test.tsx.snap b/public/app/features/alerting/unified/__snapshots__/PanelAlertTabContent.test.tsx.snap
index bb0d4a46ec3..4c1b0bb8b65 100644
--- a/public/app/features/alerting/unified/__snapshots__/PanelAlertTabContent.test.tsx.snap
+++ b/public/app/features/alerting/unified/__snapshots__/PanelAlertTabContent.test.tsx.snap
@@ -14,6 +14,7 @@ exports[`PanelAlertTabContent Will render alerts belonging to panel and a button
   ],
   "condition": "C",
   "folder": {
+    "kind": "folder",
     "title": "super folder",
     "uid": "abc",
   },
diff --git a/public/app/features/alerting/unified/api/alertRuleApi.ts b/public/app/features/alerting/unified/api/alertRuleApi.ts
index 84d6d15bad9..ef657ef857a 100644
--- a/public/app/features/alerting/unified/api/alertRuleApi.ts
+++ b/public/app/features/alerting/unified/api/alertRuleApi.ts
@@ -17,7 +17,7 @@ import {
 } from 'app/types/unified-alerting-dto';
 
 import { ExportFormats } from '../components/export/providers';
-import { Folder } from '../components/rule-editor/RuleFolderPicker';
+import { Folder } from '../types/rule-form';
 import { getDatasourceAPIUid, GRAFANA_RULES_SOURCE_NAME, isGrafanaRulesSource } from '../utils/datasource';
 import { arrayKeyValuesToObject } from '../utils/labels';
 import { isCloudRuleIdentifier, isPrometheusRuleIdentifier } from '../utils/rules';
diff --git a/public/app/features/alerting/unified/components/rule-editor/FolderAndGroup.tsx b/public/app/features/alerting/unified/components/rule-editor/FolderAndGroup.tsx
index 165817ccf3e..aec8020e993 100644
--- a/public/app/features/alerting/unified/components/rule-editor/FolderAndGroup.tsx
+++ b/public/app/features/alerting/unified/components/rule-editor/FolderAndGroup.tsx
@@ -4,26 +4,26 @@ import * as React from 'react';
 import { useCallback, useMemo, useState } from 'react';
 import { Controller, FormProvider, useForm, useFormContext } from 'react-hook-form';
 
-import { AppEvents, GrafanaTheme2, SelectableValue } from '@grafana/data';
+import { GrafanaTheme2, SelectableValue } from '@grafana/data';
 import { selectors } from '@grafana/e2e-selectors';
 import { AsyncSelect, Box, Button, Field, Input, Label, Modal, Stack, Text, useStyles2 } from '@grafana/ui';
-import appEvents from 'app/core/app_events';
+import { NestedFolderPicker } from 'app/core/components/NestedFolderPicker/NestedFolderPicker';
+import { useAppNotification } from 'app/core/copy/appNotification';
 import { t } from 'app/core/internationalization';
 import { contextSrv } from 'app/core/services/context_srv';
-import { createFolder } from 'app/features/manage-dashboards/state/actions';
+import { useNewFolderMutation } from 'app/features/browse-dashboards/api/browseDashboardsAPI';
 import { AccessControlAction } from 'app/types';
 import { RulerRuleGroupDTO, RulerRulesConfigDTO } from 'app/types/unified-alerting-dto';
 
 import { alertRuleApi } from '../../api/alertRuleApi';
 import { GRAFANA_RULER_CONFIG } from '../../api/featureDiscoveryApi';
-import { RuleFormValues } from '../../types/rule-form';
+import { Folder, RuleFormValues } from '../../types/rule-form';
 import { DEFAULT_GROUP_EVALUATION_INTERVAL } from '../../utils/rule-form';
 import { isGrafanaRecordingRuleByType, isGrafanaRulerRule } from '../../utils/rules';
 import { ProvisioningBadge } from '../Provisioning';
 import { evaluateEveryValidationOptions } from '../rules/EditRuleGroupModal';
 
 import { EvaluationGroupQuickPick } from './EvaluationGroupQuickPick';
-import { containsSlashes, Folder, RuleFolderPicker } from './RuleFolderPicker';
 
 export const MAX_GROUP_RESULTS = 1000;
 
@@ -164,13 +164,18 @@ export function FolderAndGroup({
                   <Controller
                     render={({ field: { ref, ...field } }) => (
                       <div style={{ width: 420 }}>
-                        <RuleFolderPicker
-                          inputId="folder"
+                        <NestedFolderPicker
+                          showRootFolder={false}
                           invalid={!!errors.folder?.message}
                           {...field}
-                          enableReset={true}
-                          onChange={({ title, uid }) => {
-                            field.onChange({ title, uid });
+                          value={folder?.uid}
+                          onChange={(uid, title) => {
+                            if (uid && title) {
+                              setValue('folder', { title, uid });
+                            } else {
+                              setValue('folder', undefined);
+                            }
+
                             resetGroup();
                           }}
                         />
@@ -288,31 +293,27 @@ function FolderCreationModal({
 }): React.ReactElement {
   const styles = useStyles2(getStyles);
 
+  const notifyApp = useAppNotification();
   const [title, setTitle] = useState('');
+  const [createFolder] = useNewFolderMutation();
+
   const onSubmit = async () => {
-    const newFolder = await createFolder({ title: title });
-    if (!newFolder.uid) {
-      appEvents.emit(AppEvents.alertError, ['Folder could not be created']);
-      return;
+    const { data, error } = await createFolder({ title });
+
+    if (error) {
+      notifyApp.error('Failed to create folder');
+    } else if (data) {
+      onCreate({ title: data.title, uid: data.uid });
+      notifyApp.success('Folder created');
     }
-
-    const folder: Folder = { title: newFolder.title, uid: newFolder.uid };
-    onCreate(folder);
-    appEvents.emit(AppEvents.alertSuccess, ['Folder Created', 'OK']);
   };
 
-  const error = containsSlashes(title);
-
   return (
     <Modal className={styles.modal} isOpen={true} title={'New folder'} onDismiss={onClose} onClickBackdrop={onClose}>
       <div className={styles.modalTitle}>Create a new folder to store your rule</div>
 
       <form onSubmit={onSubmit}>
-        <Field
-          label={<Label htmlFor="folder">Folder name</Label>}
-          error={"The folder name can't contain slashes"}
-          invalid={error}
-        >
+        <Field label={<Label htmlFor="folder">Folder name</Label>}>
           <Input
             data-testid={selectors.components.AlertRules.newFolderNameField}
             autoFocus={true}
@@ -330,7 +331,7 @@ function FolderCreationModal({
           </Button>
           <Button
             type="submit"
-            disabled={!title || error}
+            disabled={!title}
             data-testid={selectors.components.AlertRules.newFolderNameCreateButton}
           >
             Create
diff --git a/public/app/features/alerting/unified/components/rule-editor/RuleFolderPicker.tsx b/public/app/features/alerting/unified/components/rule-editor/RuleFolderPicker.tsx
deleted file mode 100644
index 8d56e50778b..00000000000
--- a/public/app/features/alerting/unified/components/rule-editor/RuleFolderPicker.tsx
+++ /dev/null
@@ -1,76 +0,0 @@
-import { css } from '@emotion/css';
-
-import { GrafanaTheme2 } from '@grafana/data';
-import { Icon, Stack, Tooltip, useStyles2 } from '@grafana/ui';
-import { Props as FolderPickerProps, OldFolderPicker } from 'app/core/components/Select/OldFolderPicker';
-import { PermissionLevelString, SearchQueryType } from 'app/types';
-
-import { CustomAdd, FolderWarning } from '../../../../../core/components/Select/OldFolderPicker';
-
-export interface Folder {
-  title: string;
-  uid: string;
-}
-
-export interface RuleFolderPickerProps extends Omit<FolderPickerProps, 'initialTitle' | 'initialFolderId'> {
-  value?: Folder;
-  invalid?: boolean;
-}
-
-const SlashesWarning = () => {
-  const styles = useStyles2(getStyles);
-  const onClick = () => window.open('https://github.com/grafana/grafana/issues/42947', '_blank');
-  return (
-    <Stack gap={0.5}>
-      <div className={styles.slashNotAllowed}>Folders with &apos;/&apos; character are not allowed.</div>
-      <Tooltip placement="top" content={'Link to the Github issue'} theme="info">
-        <Icon name="info-circle" size="xs" className={styles.infoIcon} onClick={onClick} />
-      </Tooltip>
-    </Stack>
-  );
-};
-
-export const containsSlashes = (str: string): boolean => str.indexOf('/') !== -1;
-
-export function RuleFolderPicker(props: RuleFolderPickerProps) {
-  const { value } = props;
-  const warningCondition = (folderName: string) => containsSlashes(folderName);
-
-  const folderWarning: FolderWarning = {
-    warningCondition: warningCondition,
-    warningComponent: SlashesWarning,
-  };
-
-  const customAdd: CustomAdd = {
-    disallowValues: true,
-    isAllowedValue: (value) => !containsSlashes(value),
-  };
-
-  return (
-    <OldFolderPicker
-      showRoot={false}
-      rootName=""
-      allowEmpty={true}
-      initialFolderUid={value?.uid}
-      searchQueryType={SearchQueryType.AlertFolder}
-      {...props}
-      permissionLevel={PermissionLevelString.Edit}
-      customAdd={customAdd}
-      folderWarning={folderWarning}
-    />
-  );
-}
-
-const getStyles = (theme: GrafanaTheme2) => ({
-  slashNotAllowed: css({
-    color: theme.colors.warning.main,
-    fontSize: '12px',
-    marginBottom: '2px',
-  }),
-  infoIcon: css({
-    color: theme.colors.warning.main,
-    fontSize: '12px',
-    marginBottom: '2px',
-    cursor: 'pointer',
-  }),
-});
diff --git a/public/app/features/alerting/unified/components/rule-editor/alert-rule-form/simplifiedRouting/SimplifiedRuleEditor.test.tsx b/public/app/features/alerting/unified/components/rule-editor/alert-rule-form/simplifiedRouting/SimplifiedRuleEditor.test.tsx
index 7b204534cda..29b50eaaec1 100644
--- a/public/app/features/alerting/unified/components/rule-editor/alert-rule-form/simplifiedRouting/SimplifiedRuleEditor.test.tsx
+++ b/public/app/features/alerting/unified/components/rule-editor/alert-rule-form/simplifiedRouting/SimplifiedRuleEditor.test.tsx
@@ -2,7 +2,7 @@ import { ReactNode } from 'react';
 import { Routes, Route } from 'react-router-dom-v5-compat';
 import { ui } from 'test/helpers/alertingRuleEditor';
 import { clickSelectOption } from 'test/helpers/selectOptionInTest';
-import { render, screen, waitForElementToBeRemoved, userEvent } from 'test/test-utils';
+import { render, screen, userEvent } from 'test/test-utils';
 import { byRole } from 'testing-library-selector';
 
 import { config } from '@grafana/runtime';
@@ -50,8 +50,8 @@ setupDataSources(dataSources.default, dataSources.am);
 
 const selectFolderAndGroup = async () => {
   const user = userEvent.setup();
-  const folderInput = await ui.inputs.folder.find();
-  await clickSelectOption(folderInput, FOLDER_TITLE_HAPPY_PATH);
+  await user.click(await screen.findByRole('button', { name: /select folder/i }));
+  await user.click(await screen.findByLabelText(FOLDER_TITLE_HAPPY_PATH));
   const groupInput = await ui.inputs.group.find();
   await user.click(await byRole('combobox').find(groupInput));
   await clickSelectOption(groupInput, grafanaRulerGroup.name);
@@ -83,11 +83,9 @@ describe('Can create a new grafana managed alert using simplified routing', () =
   });
 
   it('cannot create new grafana managed alert when using simplified routing and not selecting a contact point', async () => {
-    const user = userEvent.setup();
     const capture = captureRequests((r) => r.method === 'POST' && r.url.includes('/api/ruler/'));
 
-    renderSimplifiedRuleEditor();
-    await waitForElementToBeRemoved(screen.queryAllByTestId('Spinner'));
+    const { user } = renderSimplifiedRuleEditor();
 
     await user.type(await ui.inputs.name.find(), 'my great new rule');
 
@@ -108,18 +106,15 @@ describe('Can create a new grafana managed alert using simplified routing', () =
   it('simplified routing is not available when Grafana AM is not enabled', async () => {
     setAlertmanagerChoices(AlertmanagerChoice.External, 1);
     renderSimplifiedRuleEditor();
-    await waitForElementToBeRemoved(screen.queryAllByTestId('Spinner'));
 
     expect(ui.inputs.simplifiedRouting.contactPointRouting.query()).not.toBeInTheDocument();
   });
 
   it('can create new grafana managed alert when using simplified routing and selecting a contact point', async () => {
-    const user = userEvent.setup();
     const contactPointName = 'lotsa-emails';
     const capture = captureRequests((r) => r.method === 'POST' && r.url.includes('/api/ruler/'));
 
-    renderSimplifiedRuleEditor();
-    await waitForElementToBeRemoved(screen.queryAllByTestId('Spinner'));
+    const { user } = renderSimplifiedRuleEditor();
 
     await user.type(await ui.inputs.name.find(), 'my great new rule');
 
@@ -143,9 +138,7 @@ describe('Can create a new grafana managed alert using simplified routing', () =
     testWithFeatureToggles(['alertingApiServer']);
 
     it('allows selecting a contact point when using alerting API server', async () => {
-      const user = userEvent.setup();
-      renderSimplifiedRuleEditor();
-      await waitForElementToBeRemoved(screen.queryAllByTestId('Spinner'));
+      const { user } = renderSimplifiedRuleEditor();
 
       await user.click(await ui.inputs.simplifiedRouting.contactPointRouting.find());
 
diff --git a/public/app/features/alerting/unified/components/rule-editor/notificaton-preview/NotificationPreview.test.tsx b/public/app/features/alerting/unified/components/rule-editor/notificaton-preview/NotificationPreview.test.tsx
index 780f8833441..89f4e72354c 100644
--- a/public/app/features/alerting/unified/components/rule-editor/notificaton-preview/NotificationPreview.test.tsx
+++ b/public/app/features/alerting/unified/components/rule-editor/notificaton-preview/NotificationPreview.test.tsx
@@ -8,13 +8,13 @@ import { Labels } from '../../../../../../types/unified-alerting-dto';
 import { mockApi, setupMswServer } from '../../../mockApi';
 import { grantUserPermissions, mockAlertQuery } from '../../../mocks';
 import { mockPreviewApiResponse } from '../../../mocks/grafanaRulerApi';
+import { Folder } from '../../../types/rule-form';
 import * as dataSource from '../../../utils/datasource';
 import {
   AlertManagerDataSource,
   GRAFANA_RULES_SOURCE_NAME,
   useGetAlertManagerDataSourcesByPermissionAndConfig,
 } from '../../../utils/datasource';
-import { Folder } from '../RuleFolderPicker';
 
 import { NotificationPreview } from './NotificationPreview';
 import NotificationPreviewByAlertManager from './NotificationPreviewByAlertManager';
diff --git a/public/app/features/alerting/unified/components/rule-editor/notificaton-preview/NotificationPreview.tsx b/public/app/features/alerting/unified/components/rule-editor/notificaton-preview/NotificationPreview.tsx
index 632b5192e6c..8ad79d2fe9a 100644
--- a/public/app/features/alerting/unified/components/rule-editor/notificaton-preview/NotificationPreview.tsx
+++ b/public/app/features/alerting/unified/components/rule-editor/notificaton-preview/NotificationPreview.tsx
@@ -8,8 +8,8 @@ import { alertRuleApi } from 'app/features/alerting/unified/api/alertRuleApi';
 import { Stack } from 'app/plugins/datasource/parca/QueryEditor/Stack';
 import { AlertQuery } from 'app/types/unified-alerting-dto';
 
+import { Folder } from '../../../types/rule-form';
 import { useGetAlertManagerDataSourcesByPermissionAndConfig } from '../../../utils/datasource';
-import { Folder } from '../RuleFolderPicker';
 
 const NotificationPreviewByAlertManager = lazy(() => import('./NotificationPreviewByAlertManager'));
 
@@ -20,7 +20,7 @@ interface NotificationPreviewProps {
   }>;
   alertQueries: AlertQuery[];
   condition: string | null;
-  folder: Folder | null;
+  folder?: Folder;
   alertName?: string;
   alertUid?: string;
 }
diff --git a/public/app/features/alerting/unified/mocks/server/handlers/folders.ts b/public/app/features/alerting/unified/mocks/server/handlers/folders.ts
index 85654a1802d..a08d7fb63ba 100644
--- a/public/app/features/alerting/unified/mocks/server/handlers/folders.ts
+++ b/public/app/features/alerting/unified/mocks/server/handlers/folders.ts
@@ -1,9 +1,36 @@
 import { HttpResponse, http } from 'msw';
 
 import { mockFolder } from 'app/features/alerting/unified/mocks';
+import { grafanaRulerRule } from 'app/features/alerting/unified/mocks/grafanaRulerApi';
+import { FolderDTO } from 'app/types';
 
-export const getFolderHandler = (response = mockFolder()) =>
+const DEFAULT_FOLDERS: FolderDTO[] = [
+  mockFolder({
+    id: 1,
+    uid: 'uid',
+    title: 'title',
+  }),
+  mockFolder({
+    id: 2,
+    uid: grafanaRulerRule.grafana_alert.namespace_uid,
+    title: 'Folder A',
+  }),
+  mockFolder({
+    id: 3,
+    uid: 'NAMESPACE_UID',
+    title: 'Some Folder',
+  }),
+];
+
+export const getFolderHandler = (responseOverride?: FolderDTO) =>
   http.get<{ folderUid: string }>(`/api/folders/:folderUid`, ({ request, params }) => {
+    const matchingFolder = DEFAULT_FOLDERS.find((folder) => folder.uid === params.folderUid);
+    const response = responseOverride || matchingFolder;
+
+    if (!response) {
+      return HttpResponse.json({ message: 'folder not found', status: 'not-found' }, { status: 404 });
+    }
+
     const { accessControl, ...withoutAccessControl } = response;
 
     // Server only responds with ACL if query param is sent
@@ -15,6 +42,16 @@ export const getFolderHandler = (response = mockFolder()) =>
     return HttpResponse.json(response);
   });
 
-const handlers = [getFolderHandler()];
+const listFoldersHandler = (folders = DEFAULT_FOLDERS) =>
+  http.get(`/api/folders`, () => {
+    const strippedFolders = folders.map(({ id, uid, title }) => {
+      return { id, uid, title };
+    });
+    // TODO: Add pagination/permission support here as required by tests
+    // TODO: Add parentUid logic when clicking to expand nested folders
+    return HttpResponse.json(strippedFolders);
+  });
+
+const handlers = [listFoldersHandler(), getFolderHandler()];
 
 export default handlers;
diff --git a/public/app/features/alerting/unified/types/rule-form.ts b/public/app/features/alerting/unified/types/rule-form.ts
index e99d56ee7e0..1ff9c721e87 100644
--- a/public/app/features/alerting/unified/types/rule-form.ts
+++ b/public/app/features/alerting/unified/types/rule-form.ts
@@ -1,7 +1,5 @@
 import { AlertQuery, GrafanaAlertStateDecision } from 'app/types/unified-alerting-dto';
 
-import { Folder } from '../components/rule-editor/RuleFolderPicker';
-
 export enum RuleFormType {
   grafana = 'grafana-alerting',
   grafanaRecording = 'grafana-recording',
@@ -44,7 +42,7 @@ export interface RuleFormValues {
   condition: string | null; // refId of the query that gets alerted on
   noDataState: GrafanaAlertStateDecision;
   execErrState: GrafanaAlertStateDecision;
-  folder: Folder | null;
+  folder: Folder | undefined;
   evaluateEvery: string;
   evaluateFor: string;
   isPaused?: boolean;
@@ -61,3 +59,5 @@ export interface RuleFormValues {
   keepFiringForTimeUnit?: string;
   expression: string;
 }
+
+export type Folder = { title: string; uid: string };
diff --git a/public/app/features/alerting/unified/utils/rule-form.ts b/public/app/features/alerting/unified/utils/rule-form.ts
index 2879b2f239c..2154b66e026 100644
--- a/public/app/features/alerting/unified/utils/rule-form.ts
+++ b/public/app/features/alerting/unified/utils/rule-form.ts
@@ -97,7 +97,7 @@ export const getDefaultFormValues = (): RuleFormValues => {
     group: '',
 
     // grafana
-    folder: null,
+    folder: undefined,
     queries: [],
     recordingRulesQueries: [],
     condition: '',
@@ -756,16 +756,18 @@ export const panelToRuleFormValues = async (
   }
 
   const { folderTitle, folderUid } = dashboard.meta;
+  const folder =
+    folderUid && folderTitle
+      ? {
+          kind: 'folder',
+          uid: folderUid,
+          title: folderTitle,
+        }
+      : undefined;
 
   const formValues = {
     type: RuleFormType.grafana,
-    folder:
-      folderUid && folderTitle
-        ? {
-            uid: folderUid,
-            title: folderTitle,
-          }
-        : undefined,
+    folder,
     queries,
     name: panel.title,
     condition: queries[queries.length - 1].refId,
@@ -827,15 +829,18 @@ export const scenesPanelToRuleFormValues = async (vizPanel: VizPanel): Promise<P
 
   const { folderTitle, folderUid } = dashboard.state.meta;
 
+  const folder =
+    folderUid && folderTitle
+      ? {
+          kind: 'folder',
+          uid: folderUid,
+          title: folderTitle,
+        }
+      : undefined;
+
   const formValues = {
     type: RuleFormType.grafana,
-    folder:
-      folderUid && folderTitle
-        ? {
-            uid: folderUid,
-            title: folderTitle,
-          }
-        : undefined,
+    folder,
     queries: grafanaQueries,
     name: vizPanel.state.title,
     condition: grafanaQueries[grafanaQueries.length - 1].refId,
@@ -851,6 +856,7 @@ export const scenesPanelToRuleFormValues = async (vizPanel: VizPanel): Promise<P
       },
     ],
   };
+
   return formValues;
 };
 
diff --git a/public/app/features/browse-dashboards/api/browseDashboardsAPI.ts b/public/app/features/browse-dashboards/api/browseDashboardsAPI.ts
index 915c1aa5896..7c9770aaf4d 100644
--- a/public/app/features/browse-dashboards/api/browseDashboardsAPI.ts
+++ b/public/app/features/browse-dashboards/api/browseDashboardsAPI.ts
@@ -4,9 +4,7 @@ import { lastValueFrom } from 'rxjs';
 import { AppEvents, isTruthy, locationUtil } from '@grafana/data';
 import { BackendSrvRequest, getBackendSrv, locationService } from '@grafana/runtime';
 import { Dashboard } from '@grafana/schema';
-import { notifyApp } from 'app/core/actions';
 import appEvents from 'app/core/app_events';
-import { createSuccessNotification } from 'app/core/copy/appNotification';
 import { contextSrv } from 'app/core/core';
 import { getDashboardAPI } from 'app/features/dashboard/api/dashboard_api';
 import { SaveDashboardCommand } from 'app/features/dashboard/components/SaveDashboard/types';
@@ -125,14 +123,12 @@ export const browseDashboardsAPI = createApi({
       onQueryStarted: ({ parentUid }, { queryFulfilled, dispatch }) => {
         queryFulfilled.then(async ({ data: folder }) => {
           await contextSrv.fetchUserPermissions();
-          dispatch(notifyApp(createSuccessNotification('Folder created')));
           dispatch(
             refetchChildren({
               parentUID: parentUid,
               pageSize: PAGE_SIZE,
             })
           );
-          locationService.push(locationUtil.stripBaseFromUrl(folder.url));
         });
       },
     }),
diff --git a/public/app/features/browse-dashboards/components/CreateNewButton.tsx b/public/app/features/browse-dashboards/components/CreateNewButton.tsx
index 204aa6c99e2..ed06d0b14a2 100644
--- a/public/app/features/browse-dashboards/components/CreateNewButton.tsx
+++ b/public/app/features/browse-dashboards/components/CreateNewButton.tsx
@@ -1,12 +1,14 @@
 import { useState } from 'react';
 import { useLocation } from 'react-router-dom-v5-compat';
 
-import { config, reportInteraction } from '@grafana/runtime';
+import { locationUtil } from '@grafana/data';
+import { config, locationService, reportInteraction } from '@grafana/runtime';
 import { Button, Drawer, Dropdown, Icon, Menu, MenuItem } from '@grafana/ui';
+import { useAppNotification } from 'app/core/copy/appNotification';
 import {
+  getImportPhrase,
   getNewDashboardPhrase,
   getNewFolderPhrase,
-  getImportPhrase,
   getNewPhrase,
 } from 'app/features/search/tempI18nPhrases';
 import { FolderDTO } from 'app/types';
@@ -26,18 +28,30 @@ export default function CreateNewButton({ parentFolder, canCreateDashboard, canC
   const location = useLocation();
   const [newFolder] = useNewFolderMutation();
   const [showNewFolderDrawer, setShowNewFolderDrawer] = useState(false);
+  const notifyApp = useAppNotification();
 
   const onCreateFolder = async (folderName: string) => {
     try {
-      await newFolder({
+      const folder = await newFolder({
         title: folderName,
         parentUid: parentFolder?.uid,
       });
+
       const depth = parentFolder?.parents ? parentFolder.parents.length + 1 : 0;
       reportInteraction('grafana_manage_dashboards_folder_created', {
         is_subfolder: Boolean(parentFolder?.uid),
         folder_depth: depth,
       });
+
+      if (!folder.error) {
+        notifyApp.success('Folder created');
+      } else {
+        notifyApp.error('Failed to create folder');
+      }
+
+      if (folder.data) {
+        locationService.push(locationUtil.stripBaseFromUrl(folder.data.url));
+      }
     } finally {
       setShowNewFolderDrawer(false);
     }
diff --git a/public/app/types/acl.ts b/public/app/types/acl.ts
index c419632e955..3cbb2c110e1 100644
--- a/public/app/types/acl.ts
+++ b/public/app/types/acl.ts
@@ -18,5 +18,4 @@ export enum PermissionLevelString {
 export enum SearchQueryType {
   Folder = 'dash-folder',
   Dashboard = 'dash-db',
-  AlertFolder = 'dash-folder-alerting',
 }