diff --git a/public/app/features/dashboard-scene/scene/layouts-shared/DashboardLayoutSelector.test.tsx b/public/app/features/dashboard-scene/scene/layouts-shared/DashboardLayoutSelector.test.tsx
index d363a95ddf0..a8c2cbb6ec0 100644
--- a/public/app/features/dashboard-scene/scene/layouts-shared/DashboardLayoutSelector.test.tsx
+++ b/public/app/features/dashboard-scene/scene/layouts-shared/DashboardLayoutSelector.test.tsx
@@ -7,10 +7,13 @@ import { SceneGridLayout, VizPanel, SceneVariableSet } from '@grafana/scenes';
 
 import { activateFullSceneTree } from '../../utils/test-utils';
 import { DashboardScene } from '../DashboardScene';
+import { AutoGridLayoutManager } from '../layout-auto-grid/AutoGridLayoutManager';
 import { DashboardGridItem } from '../layout-default/DashboardGridItem';
 import { DefaultGridLayoutManager } from '../layout-default/DefaultGridLayoutManager';
 import { RowItem } from '../layout-rows/RowItem';
 import { RowsLayoutManager } from '../layout-rows/RowsLayoutManager';
+import { TabItem } from '../layout-tabs/TabItem';
+import { TabsLayoutManager } from '../layout-tabs/TabsLayoutManager';
 import { LayoutParent } from '../types/LayoutParent';
 
 import { DashboardLayoutSelector } from './DashboardLayoutSelector';
@@ -40,6 +43,27 @@ describe('DashboardLayoutSelector', () => {
     await user.click(confirmButton);
     expect(switchLayoutMock).toHaveBeenCalled();
   });
+
+  it('should disable tabs option when a row contains tabs layout and show correct message', async () => {
+    const scene = buildTestSceneWithNestedTabs();
+    const layoutManager = scene.state.body;
+
+    render(<DashboardLayoutSelector layoutManager={layoutManager} />);
+
+    const tabsOption = screen.getByLabelText('layout-selection-option-Tabs');
+    expect(tabsOption).toBeDisabled();
+    expect(screen.getByTitle('Cannot change to tabs because a row already contains tabs')).toBeInTheDocument();
+  });
+
+  it('should not disable tabs option when rows do not contain tabs', async () => {
+    const scene = buildTestScene();
+    const layoutManager = scene.state.body;
+
+    render(<DashboardLayoutSelector layoutManager={layoutManager} />);
+
+    const tabsOption = screen.getByLabelText('layout-selection-option-Tabs');
+    expect(tabsOption).not.toBeDisabled();
+  });
 });
 
 const buildTestScene = () => {
@@ -70,3 +94,43 @@ const buildTestScene = () => {
   activateFullSceneTree(scene);
   return scene;
 };
+
+const buildTestSceneWithNestedTabs = () => {
+  const scene = new DashboardScene({
+    title: 'testScene',
+    editable: true,
+    $variables: new SceneVariableSet({
+      variables: [],
+    }),
+    body: new RowsLayoutManager({
+      rows: [
+        new RowItem({
+          title: 'Row 1',
+          layout: new DefaultGridLayoutManager({
+            grid: new SceneGridLayout({
+              children: [
+                new DashboardGridItem({
+                  body: new VizPanel({ key: 'panel-1', pluginId: 'text' }),
+                }),
+              ],
+            }),
+          }),
+        }),
+        new RowItem({
+          title: 'Row with Tabs',
+          layout: new TabsLayoutManager({
+            tabs: [
+              new TabItem({
+                title: 'Tab 1',
+                layout: AutoGridLayoutManager.createEmpty(),
+              }),
+            ],
+          }),
+        }),
+      ],
+    }),
+  });
+
+  activateFullSceneTree(scene);
+  return scene;
+};
diff --git a/public/app/features/dashboard-scene/scene/layouts-shared/DashboardLayoutSelector.tsx b/public/app/features/dashboard-scene/scene/layouts-shared/DashboardLayoutSelector.tsx
index b32555b32f8..ee902d195ad 100644
--- a/public/app/features/dashboard-scene/scene/layouts-shared/DashboardLayoutSelector.tsx
+++ b/public/app/features/dashboard-scene/scene/layouts-shared/DashboardLayoutSelector.tsx
@@ -11,6 +11,7 @@ import { DashboardLayoutManager } from '../types/DashboardLayoutManager';
 import { isLayoutParent } from '../types/LayoutParent';
 import { LayoutRegistryItem } from '../types/LayoutRegistryItem';
 
+import { containsTabsLayout } from './findAllGridTypes';
 import { layoutRegistry } from './layoutRegistry';
 
 export interface Props {
@@ -22,19 +23,26 @@ export function DashboardLayoutSelector({ layoutManager }: Props) {
   const options = layoutRegistry.list().filter((layout) => layout.isGridLayout === isGridLayout);
   const [newLayout, setNewLayout] = useState<LayoutRegistryItem | undefined>();
 
-  const disableTabs = useMemo(() => {
+  const disableTabsReason = useMemo(() => {
     if (config.featureToggles.unlimitedLayoutsNesting) {
-      return false;
+      return undefined;
     }
+
+    // Check parent hierarchy
     let parent = layoutManager.parent;
     while (parent) {
       if (parent instanceof TabsLayoutManager) {
-        return true;
+        return 'parent';
       }
       parent = parent.parent;
     }
 
-    return false;
+    // Check child hierarchy
+    if (containsTabsLayout(layoutManager)) {
+      return 'child';
+    }
+
+    return undefined;
   }, [layoutManager]);
 
   const onChangeLayout = useCallback((newLayout: LayoutRegistryItem) => setNewLayout(newLayout), []);
@@ -59,8 +67,15 @@ export function DashboardLayoutSelector({ layoutManager }: Props) {
 
   const radioOptions = options.map((opt) => {
     let description = opt.description;
-    if (disableTabs && opt.id === TabsLayoutManager.descriptor.id) {
-      description = t('dashboard.canvas-actions.disabled-nested-tabs', 'Tabs cannot be nested inside other tabs');
+    if (disableTabsReason && opt.id === TabsLayoutManager.descriptor.id) {
+      if (disableTabsReason === 'parent') {
+        description = t('dashboard.canvas-actions.disabled-nested-tabs', 'Tabs cannot be nested inside other tabs');
+      } else {
+        description = t(
+          'dashboard.canvas-actions.disabled-child-contains-tabs',
+          'Cannot change to tabs because a row already contains tabs'
+        );
+      }
       disabledOptions.push(opt);
     }
 
diff --git a/public/app/features/dashboard-scene/scene/layouts-shared/findAllGridTypes.test.ts b/public/app/features/dashboard-scene/scene/layouts-shared/findAllGridTypes.test.ts
new file mode 100644
index 00000000000..b2c925fb26e
--- /dev/null
+++ b/public/app/features/dashboard-scene/scene/layouts-shared/findAllGridTypes.test.ts
@@ -0,0 +1,93 @@
+import { AutoGridLayoutManager } from '../layout-auto-grid/AutoGridLayoutManager';
+import { RowItem } from '../layout-rows/RowItem';
+import { RowsLayoutManager } from '../layout-rows/RowsLayoutManager';
+import { TabItem } from '../layout-tabs/TabItem';
+import { TabsLayoutManager } from '../layout-tabs/TabsLayoutManager';
+
+import { containsTabsLayout, findAllGridTypes } from './findAllGridTypes';
+
+describe('findAllGridTypes', () => {
+  it('should return grid type for a grid layout', () => {
+    const layout = AutoGridLayoutManager.createEmpty();
+    expect(findAllGridTypes(layout)).toEqual([AutoGridLayoutManager.descriptor.id]);
+  });
+
+  it('should return grid types from tabs', () => {
+    const layout = new TabsLayoutManager({
+      tabs: [
+        new TabItem({ layout: AutoGridLayoutManager.createEmpty() }),
+        new TabItem({ layout: AutoGridLayoutManager.createEmpty() }),
+      ],
+    });
+    expect(findAllGridTypes(layout)).toEqual([
+      AutoGridLayoutManager.descriptor.id,
+      AutoGridLayoutManager.descriptor.id,
+    ]);
+  });
+
+  it('should return grid types from rows', () => {
+    const layout = new RowsLayoutManager({
+      rows: [
+        new RowItem({ layout: AutoGridLayoutManager.createEmpty() }),
+        new RowItem({ layout: AutoGridLayoutManager.createEmpty() }),
+      ],
+    });
+    expect(findAllGridTypes(layout)).toEqual([
+      AutoGridLayoutManager.descriptor.id,
+      AutoGridLayoutManager.descriptor.id,
+    ]);
+  });
+});
+
+describe('containsTabsLayout', () => {
+  it('should return true when layout is TabsLayoutManager', () => {
+    const layout = new TabsLayoutManager({
+      tabs: [new TabItem({ layout: AutoGridLayoutManager.createEmpty() })],
+    });
+    expect(containsTabsLayout(layout)).toBe(true);
+  });
+
+  it('should return false when layout is a grid layout', () => {
+    const layout = AutoGridLayoutManager.createEmpty();
+    expect(containsTabsLayout(layout)).toBe(false);
+  });
+
+  it('should return false when layout is RowsLayoutManager with no tabs in rows', () => {
+    const layout = new RowsLayoutManager({
+      rows: [
+        new RowItem({ layout: AutoGridLayoutManager.createEmpty() }),
+        new RowItem({ layout: AutoGridLayoutManager.createEmpty() }),
+      ],
+    });
+    expect(containsTabsLayout(layout)).toBe(false);
+  });
+
+  it('should return true when RowsLayoutManager contains a row with tabs layout', () => {
+    const layout = new RowsLayoutManager({
+      rows: [
+        new RowItem({ layout: AutoGridLayoutManager.createEmpty() }),
+        new RowItem({
+          layout: new TabsLayoutManager({
+            tabs: [new TabItem({ layout: AutoGridLayoutManager.createEmpty() })],
+          }),
+        }),
+      ],
+    });
+    expect(containsTabsLayout(layout)).toBe(true);
+  });
+
+  it('should return true when any row contains tabs layout', () => {
+    const layout = new RowsLayoutManager({
+      rows: [
+        new RowItem({
+          layout: new TabsLayoutManager({
+            tabs: [new TabItem({ layout: AutoGridLayoutManager.createEmpty() })],
+          }),
+        }),
+        new RowItem({ layout: AutoGridLayoutManager.createEmpty() }),
+        new RowItem({ layout: AutoGridLayoutManager.createEmpty() }),
+      ],
+    });
+    expect(containsTabsLayout(layout)).toBe(true);
+  });
+});
diff --git a/public/app/features/dashboard-scene/scene/layouts-shared/findAllGridTypes.ts b/public/app/features/dashboard-scene/scene/layouts-shared/findAllGridTypes.ts
index 03dec1482fb..6050e25a94f 100644
--- a/public/app/features/dashboard-scene/scene/layouts-shared/findAllGridTypes.ts
+++ b/public/app/features/dashboard-scene/scene/layouts-shared/findAllGridTypes.ts
@@ -15,3 +15,15 @@ export function findAllGridTypes(layout: DashboardLayoutManager): string[] {
 
   return [];
 }
+
+export function containsTabsLayout(layout: DashboardLayoutManager): boolean {
+  if (layout instanceof TabsLayoutManager) {
+    return true;
+  }
+
+  if (layout instanceof RowsLayoutManager) {
+    return layout.state.rows.some((row) => containsTabsLayout(row.getLayout()));
+  }
+
+  return false;
+}
diff --git a/public/locales/en-US/grafana.json b/public/locales/en-US/grafana.json
index 0ee16ef4483..45427183866 100644
--- a/public/locales/en-US/grafana.json
+++ b/public/locales/en-US/grafana.json
@@ -4614,6 +4614,7 @@
     },
     "canvas-actions": {
       "add-panel": "Add panel",
+      "disabled-child-contains-tabs": "Cannot change to tabs because a row already contains tabs",
       "disabled-nested-grouping": "Grouping is limited to 2 levels",
       "disabled-nested-tabs": "Tabs cannot be nested inside other tabs",
       "group-into-row": "Group into row",