diff --git a/public/app/features/explore/hooks/useStateSync/index.test.tsx b/public/app/features/explore/hooks/useStateSync/index.test.tsx
index 841a220d03e..01aa4046af5 100644
--- a/public/app/features/explore/hooks/useStateSync/index.test.tsx
+++ b/public/app/features/explore/hooks/useStateSync/index.test.tsx
@@ -12,6 +12,7 @@ import { MIXED_DATASOURCE_NAME } from 'app/plugins/datasource/mixed/MixedDataSou
 import { configureStore } from 'app/store/configureStore';
 
 import { makeDatasourceSetup } from '../../spec/helper/setup';
+import { updateQueryRefAction } from '../../state/explorePane';
 import { splitClose, splitOpen } from '../../state/main';
 
 import { useStateSync } from './';
@@ -584,4 +585,80 @@ describe('useStateSync', () => {
       expect(store.getState().explore.panes['one']?.queries[0]).toMatchObject({ expr: 'b', refId: 'B' });
     });
   });
+
+  it('should sync queryRef from URL to state', async () => {
+    const { store } = setup({
+      queryParams: {
+        panes: JSON.stringify({
+          one: {
+            datasource: 'loki-uid',
+            queries: [{ expr: 'test', refId: 'A' }],
+            queryRef: 'library-query-123',
+          },
+        }),
+        schemaVersion: 1,
+      },
+    });
+
+    await waitFor(() => {
+      expect(store.getState().explore.panes['one']?.queryRef).toBe('library-query-123');
+    });
+  });
+
+  it('should sync queryRef from state to URL', async () => {
+    const { store, location } = setup({
+      queryParams: {
+        panes: JSON.stringify({
+          one: {
+            datasource: 'loki-uid',
+            queries: [{ expr: 'test', refId: 'A' }],
+          },
+        }),
+        schemaVersion: 1,
+      },
+    });
+
+    await waitFor(() => {
+      expect(store.getState().explore.panes['one']).toBeDefined();
+    });
+
+    act(() => {
+      store.dispatch(updateQueryRefAction({ exploreId: 'one', queryRef: 'library-query-456' }));
+    });
+
+    await waitFor(() => {
+      const search = location.getSearchObject();
+      const panes = search.panes && typeof search.panes === 'string' ? JSON.parse(search.panes) : {};
+      expect(panes.one?.queryRef).toBe('library-query-456');
+    });
+  });
+
+  it('should handle queryRef cleanup in URL when queryRef is undefined', async () => {
+    const { store, location } = setup({
+      queryParams: {
+        panes: JSON.stringify({
+          one: {
+            datasource: 'loki-uid',
+            queries: [{ expr: 'test', refId: 'A' }],
+            queryRef: 'library-query-123',
+          },
+        }),
+        schemaVersion: 1,
+      },
+    });
+
+    await waitFor(() => {
+      expect(store.getState().explore.panes['one']?.queryRef).toBe('library-query-123');
+    });
+
+    act(() => {
+      store.dispatch(updateQueryRefAction({ exploreId: 'one', queryRef: undefined }));
+    });
+
+    await waitFor(() => {
+      const search = location.getSearchObject();
+      const panes = search.panes && typeof search.panes === 'string' ? JSON.parse(search.panes) : {};
+      expect(panes.one?.queryRef).toBeUndefined();
+    });
+  });
 });
diff --git a/public/app/features/query/components/QueryEditorRow.test.tsx b/public/app/features/query/components/QueryEditorRow.test.tsx
index 3a9d33542f1..98b1f0cc031 100644
--- a/public/app/features/query/components/QueryEditorRow.test.tsx
+++ b/public/app/features/query/components/QueryEditorRow.test.tsx
@@ -5,15 +5,28 @@ import { DataQueryRequest, dateTime, LoadingState, PanelData, toDataFrame } from
 import { DataQuery } from '@grafana/schema';
 import { mockDataSource } from 'app/features/alerting/unified/mocks';
 
-import { DataSourceType } from '../../alerting/unified/utils/datasource';
-
-import { filterPanelDataToQuery, Props, QueryEditorRow } from './QueryEditorRow';
+import { filterPanelDataToQuery, Props, QueryEditorRow, QueryLibraryBadgeWrapper } from './QueryEditorRow';
 
 const mockDS = mockDataSource({
   name: 'test',
-  type: DataSourceType.Alertmanager,
+  type: 'testdata',
 });
 
+// Mock the QueryLibraryContext
+const mockQueryLibraryContext = {
+  queryLibraryEnabled: true,
+};
+
+jest.mock('app/features/explore/QueryLibrary/QueryLibraryContext', () => ({
+  useQueryLibraryContext: () => mockQueryLibraryContext,
+}));
+
+// Mock the internationalization function
+jest.mock('@grafana/i18n', () => ({
+  ...jest.requireActual('@grafana/i18n'),
+  t: (key: string, defaultValue: string) => defaultValue,
+}));
+
 jest.mock('@grafana/runtime', () => ({
   ...jest.requireActual('@grafana/runtime'),
   getDataSourceSrv: () => ({
@@ -392,3 +405,30 @@ describe('QueryEditorRow', () => {
     });
   });
 });
+
+describe('QueryLibraryBadge', () => {
+  beforeEach(() => {
+    mockQueryLibraryContext.queryLibraryEnabled = true;
+  });
+
+  it('should display badge when queryLibraryEnabled is true and queryRef is provided', () => {
+    render(<QueryLibraryBadgeWrapper queryRef="library-query-123" />);
+    expect(screen.getByText('Editing From Query Library')).toBeInTheDocument();
+  });
+
+  it('should not display badge when queryLibraryEnabled is false', () => {
+    mockQueryLibraryContext.queryLibraryEnabled = false;
+    render(<QueryLibraryBadgeWrapper queryRef="library-query-123" />);
+    expect(screen.queryByText('Editing From Query Library')).not.toBeInTheDocument();
+  });
+
+  it('should not display badge when queryRef is not provided', () => {
+    render(<QueryLibraryBadgeWrapper />);
+    expect(screen.queryByText('Editing From Query Library')).not.toBeInTheDocument();
+  });
+
+  it('should not display badge when queryRef is empty string', () => {
+    render(<QueryLibraryBadgeWrapper queryRef="" />);
+    expect(screen.queryByText('Editing From Query Library')).not.toBeInTheDocument();
+  });
+});
diff --git a/public/app/features/query/components/QueryEditorRow.tsx b/public/app/features/query/components/QueryEditorRow.tsx
index 8ba101449f9..41330d74228 100644
--- a/public/app/features/query/components/QueryEditorRow.tsx
+++ b/public/app/features/query/components/QueryEditorRow.tsx
@@ -489,7 +489,7 @@ export class QueryEditorRow<TQuery extends DataQuery> extends PureComponent<Prop
   }
 }
 
-function QueryLibraryBadgeWrapper(props: { queryRef?: string }) {
+export function QueryLibraryBadgeWrapper(props: { queryRef?: string }) {
   const { queryLibraryEnabled } = useQueryLibraryContext();
   const { queryRef } = props;