diff --git a/public/app/features/alerting/unified/components/rule-editor/AnnotationsField.test.tsx b/public/app/features/alerting/unified/components/rule-editor/AnnotationsField.test.tsx
index 52d279fa5c6..5ca9a009cc2 100644
--- a/public/app/features/alerting/unified/components/rule-editor/AnnotationsField.test.tsx
+++ b/public/app/features/alerting/unified/components/rule-editor/AnnotationsField.test.tsx
@@ -1,4 +1,4 @@
-import { findByRole, findByText, findByTitle, getByTestId, render } from '@testing-library/react';
+import { findByRole, findByText, findByTitle, getByTestId, queryByText, render } from '@testing-library/react';
 import userEvent from '@testing-library/user-event';
 import { rest } from 'msw';
 import { setupServer } from 'msw/node';
@@ -163,6 +163,71 @@ describe('AnnotationsField', function () {
       expect(annotationValueElements[1]).toHaveTextContent('2');
     });
 
+    it('should not show rows as panels', async function () {
+      mockSearchApiResponse(server, [
+        mockDashboardSearchItem({ title: 'My dashboard', uid: 'dash-test-uid', type: DashboardSearchItemType.DashDB }),
+      ]);
+
+      mockGetDashboardResponse(
+        mockDashboardDto({
+          title: 'My dashboard',
+          uid: 'dash-test-uid',
+          panels: [
+            { id: 1, title: 'Row panel', type: 'row' },
+            { id: 2, title: 'First panel', type: 'timeseries' },
+          ],
+        })
+      );
+
+      const user = userEvent.setup();
+
+      render(<FormWrapper />);
+
+      await user.click(ui.setDashboardButton.get());
+      expect(ui.dashboardPicker.confirmButton.get()).toBeDisabled();
+
+      await user.click(await findByTitle(ui.dashboardPicker.dialog.get(), 'My dashboard'));
+
+      expect(await findByText(ui.dashboardPicker.dialog.get(), 'First panel')).toBeInTheDocument();
+      expect(await queryByText(ui.dashboardPicker.dialog.get(), 'Row panel')).not.toBeInTheDocument();
+    });
+
+    it('should show panels within collapsed rows', async function () {
+      mockSearchApiResponse(server, [
+        mockDashboardSearchItem({ title: 'My dashboard', uid: 'dash-test-uid', type: DashboardSearchItemType.DashDB }),
+      ]);
+
+      mockGetDashboardResponse(
+        mockDashboardDto({
+          title: 'My dashboard',
+          uid: 'dash-test-uid',
+          panels: [
+            { id: 1, title: 'First panel', type: 'timeseries' },
+            {
+              id: 2,
+              title: 'Row panel',
+              collapsed: true,
+              type: 'row',
+              panels: [{ id: 3, title: 'Panel within collapsed row', type: 'timeseries' }],
+            },
+          ],
+        })
+      );
+
+      const user = userEvent.setup();
+
+      render(<FormWrapper />);
+
+      await user.click(ui.setDashboardButton.get());
+      expect(ui.dashboardPicker.confirmButton.get()).toBeDisabled();
+
+      await user.click(await findByTitle(ui.dashboardPicker.dialog.get(), 'My dashboard'));
+
+      expect(await findByText(ui.dashboardPicker.dialog.get(), 'First panel')).toBeInTheDocument();
+      expect(await queryByText(ui.dashboardPicker.dialog.get(), 'Row panel')).not.toBeInTheDocument();
+      expect(await findByText(ui.dashboardPicker.dialog.get(), 'Panel within collapsed row')).toBeInTheDocument();
+    });
+
     // this test _should_ work in theory but something is stopping the 'onClick' function on the dashboard item
     // to trigger "handleDashboardChange" – skipping it for now but has been manually tested.
     it.skip('should update existing dashboard and panel identifies', async function () {
diff --git a/public/app/features/alerting/unified/components/rule-editor/AnnotationsStep.tsx b/public/app/features/alerting/unified/components/rule-editor/AnnotationsStep.tsx
index 67406197e6c..7617ff84438 100644
--- a/public/app/features/alerting/unified/components/rule-editor/AnnotationsStep.tsx
+++ b/public/app/features/alerting/unified/components/rule-editor/AnnotationsStep.tsx
@@ -15,7 +15,7 @@ import { Annotation, annotationLabels } from '../../utils/constants';
 
 import AnnotationHeaderField from './AnnotationHeaderField';
 import DashboardAnnotationField from './DashboardAnnotationField';
-import { DashboardPicker, PanelDTO } from './DashboardPicker';
+import { DashboardPicker, mergePanels, PanelDTO } from './DashboardPicker';
 import { NeedHelpInfo } from './NeedHelpInfo';
 import { RuleEditorSection } from './RuleEditorSection';
 
@@ -53,7 +53,9 @@ const AnnotationsStep = () => {
     }
 
     setSelectedDashboard(dashboardResult?.dashboard);
-    const currentPanel = dashboardResult?.dashboard?.panels?.find((panel) => panel.id.toString() === selectedPanelId);
+
+    const allPanels = mergePanels(dashboardResult);
+    const currentPanel = allPanels.find((panel) => panel.id.toString() === selectedPanelId);
     setSelectedPanel(currentPanel);
   }, [selectedPanelId, dashboardResult, isDashboardFetching]);
 
diff --git a/public/app/features/alerting/unified/components/rule-editor/DashboardPicker.tsx b/public/app/features/alerting/unified/components/rule-editor/DashboardPicker.tsx
index b78338b093a..444325c2535 100644
--- a/public/app/features/alerting/unified/components/rule-editor/DashboardPicker.tsx
+++ b/public/app/features/alerting/unified/components/rule-editor/DashboardPicker.tsx
@@ -17,6 +17,7 @@ import {
   Tooltip,
   useStyles2,
 } from '@grafana/ui';
+import { DashboardDTO } from 'app/types';
 
 import { dashboardApi } from '../../api/dashboardApi';
 
@@ -47,6 +48,18 @@ interface DashboardPickerProps {
   onDismiss: () => void;
 }
 
+export function mergePanels(dashboardResult: DashboardDTO | undefined) {
+  const panels = dashboardResult?.dashboard?.panels?.filter((panel) => panel.type !== 'row') || [];
+  const nestedPanels =
+    dashboardResult?.dashboard?.panels
+      ?.filter((row: { collapsed: boolean }) => row.collapsed)
+      .map((collapsedRow: { panels: PanelDTO[] }) => collapsedRow.panels) || [];
+
+  const allDashboardPanels = [...panels, ...nestedPanels.flat()];
+
+  return allDashboardPanels;
+}
+
 export const DashboardPicker = ({ dashboardUid, panelId, isOpen, onChange, onDismiss }: DashboardPickerProps) => {
   const styles = useStyles2(getPickerStyles);
 
@@ -72,12 +85,14 @@ export const DashboardPicker = ({ dashboardUid, panelId, isOpen, onChange, onDis
     setSelectedPanelId(undefined);
   }, []);
 
+  const allDashboardPanels = mergePanels(dashboardResult);
+
   const filteredPanels =
-    dashboardResult?.dashboard?.panels
+    allDashboardPanels
       ?.filter((panel) => panel.title?.toLowerCase().includes(panelFilter.toLowerCase()))
       .sort(panelSort) ?? [];
 
-  const currentPanel: PanelDTO | undefined = dashboardResult?.dashboard?.panels?.find(
+  const currentPanel: PanelDTO | undefined = allDashboardPanels.find(
     (panel: PanelDTO) => isValidPanelIdentifier(panel) && panel.id?.toString() === selectedPanelId
   );