diff --git a/public/app/features/dashboard-scene/panel-edit/PanelDataPane/EmptyTransformationsMessage.tsx b/public/app/features/dashboard-scene/panel-edit/PanelDataPane/EmptyTransformationsMessage.tsx
index 80680aa4e1c..8462fe37b60 100644
--- a/public/app/features/dashboard-scene/panel-edit/PanelDataPane/EmptyTransformationsMessage.tsx
+++ b/public/app/features/dashboard-scene/panel-edit/PanelDataPane/EmptyTransformationsMessage.tsx
@@ -1,6 +1,6 @@
 import { useMemo } from 'react';
 
-import { DataTransformerID, standardTransformersRegistry, TransformerRegistryItem } from '@grafana/data';
+import { DataFrame, DataTransformerID, standardTransformersRegistry, TransformerRegistryItem } from '@grafana/data';
 import { selectors } from '@grafana/e2e-selectors';
 import { t, Trans } from '@grafana/i18n';
 import { reportInteraction } from '@grafana/runtime';
@@ -16,6 +16,8 @@ interface EmptyTransformationsProps {
   onShowPicker: () => void;
   onGoToQueries?: () => void;
   onAddTransformation?: (transformationId: string) => void;
+  data?: DataFrame[];
+  isSqlApplicable?: boolean;
 }
 
 const TRANSFORMATION_IDS = [
@@ -60,6 +62,7 @@ export function LegacyEmptyTransformationsMessage({ onShowPicker }: { onShowPick
 export function NewEmptyTransformationsMessage(props: EmptyTransformationsProps) {
   const hasGoToQueries = props.onGoToQueries != null;
   const hasAddTransformation = props.onAddTransformation != null;
+  const isSqlApplicable = props.isSqlApplicable !== false; // Default to true if not provided
 
   // Get transformations from registry
   const transformations = useMemo(() => {
@@ -69,6 +72,9 @@ export function NewEmptyTransformationsMessage(props: EmptyTransformationsProps)
   }, []);
 
   const handleSqlTransformationClick = () => {
+    if (!isSqlApplicable) {
+      return;
+    }
     reportInteraction('dashboards_expression_interaction', {
       action: 'add_expression',
       expression_type: 'sql',
@@ -110,6 +116,11 @@ export function NewEmptyTransformationsMessage(props: EmptyTransformationsProps)
                 imageUrl={config.theme2.isDark ? sqlDarkImage : sqlLightImage}
                 onClick={handleSqlTransformationClick}
                 testId="go-to-queries-button"
+                isDisabled={!isSqlApplicable}
+                disabledTooltip={t(
+                  'dashboard-scene.empty-transformations-message.sql-not-applicable',
+                  'SQL expressions require backend data sources'
+                )}
               />
             )}
             {hasAddTransformation &&
@@ -121,6 +132,7 @@ export function NewEmptyTransformationsMessage(props: EmptyTransformationsProps)
                   showIllustrations={true}
                   showPluginState={false}
                   showTags={false}
+                  data={props.data}
                 />
               ))}
           </Grid>
diff --git a/public/app/features/dashboard-scene/panel-edit/PanelDataPane/PanelDataTransformationsTab.tsx b/public/app/features/dashboard-scene/panel-edit/PanelDataPane/PanelDataTransformationsTab.tsx
index af68e86adc4..8a9a4e0ea91 100644
--- a/public/app/features/dashboard-scene/panel-edit/PanelDataPane/PanelDataTransformationsTab.tsx
+++ b/public/app/features/dashboard-scene/panel-edit/PanelDataPane/PanelDataTransformationsTab.tsx
@@ -5,6 +5,7 @@ import { useCallback, useMemo, useState } from 'react';
 import { DataTransformerConfig, GrafanaTheme2, PanelData } from '@grafana/data';
 import { selectors } from '@grafana/e2e-selectors';
 import { Trans, t } from '@grafana/i18n';
+import { getDataSourceSrv } from '@grafana/runtime';
 import {
   SceneObjectBase,
   SceneComponentProps,
@@ -18,6 +19,7 @@ import { Button, ButtonGroup, ConfirmModal, Tab, useStyles2 } from '@grafana/ui'
 import { TransformationOperationRows } from 'app/features/dashboard/components/TransformationsEditor/TransformationOperationRows';
 import { ExpressionQueryType } from 'app/features/expressions/types';
 
+import { ExpressionDatasourceUID } from '../../../expressions/types';
 import { getQueryRunnerFor } from '../../utils/utils';
 
 import { EmptyTransformationsMessage } from './EmptyTransformationsMessage';
@@ -83,6 +85,35 @@ export function PanelDataTransformationsTabRendered({ model }: SceneComponentPro
       : [];
   }, [transformsWrongType]);
 
+  // Check if SQL expressions are applicable (all datasources must be backend datasources)
+  const isSqlApplicable = useMemo(() => {
+    const queryRunner = model.getQueryRunner();
+    const queries = queryRunner.state.queries;
+
+    if (!queries || queries.length === 0) {
+      return true; // If no queries, SQL is theoretically applicable
+    }
+
+    // Check each query's datasource
+    for (const query of queries) {
+      const datasourceRef = query.datasource;
+
+      // Skip expression queries
+      if (datasourceRef && 'uid' in datasourceRef && datasourceRef.uid === ExpressionDatasourceUID) {
+        continue;
+      }
+
+      const dsSettings = getDataSourceSrv().getInstanceSettings(datasourceRef);
+
+      // If we can't get datasource settings or it's not a backend datasource, SQL is not applicable
+      if (!dsSettings || (!dsSettings.meta.backend && !dsSettings.meta.isBackend)) {
+        return false;
+      }
+    }
+
+    return true;
+  }, [model]);
+
   const [drawerOpen, setDrawerOpen] = useState<boolean>(false);
   const [confirmModalOpen, setConfirmModalOpen] = useState<boolean>(false);
 
@@ -154,6 +185,8 @@ export function PanelDataTransformationsTabRendered({ model }: SceneComponentPro
           onShowPicker={openDrawer}
           onGoToQueries={onGoToQueries}
           onAddTransformation={onAddTransformation}
+          data={sourceData.data.series}
+          isSqlApplicable={isSqlApplicable}
         />
         {transformationsDrawer}
       </>
diff --git a/public/app/features/dashboard/components/TransformationsEditor/SqlExpressionCard.tsx b/public/app/features/dashboard/components/TransformationsEditor/SqlExpressionCard.tsx
index 0cb9302df2e..f1432ed3fe0 100644
--- a/public/app/features/dashboard/components/TransformationsEditor/SqlExpressionCard.tsx
+++ b/public/app/features/dashboard/components/TransformationsEditor/SqlExpressionCard.tsx
@@ -1,7 +1,7 @@
-import { css } from '@emotion/css';
+import { css, cx } from '@emotion/css';
 
 import { GrafanaTheme2 } from '@grafana/data';
-import { Card, useStyles2 } from '@grafana/ui';
+import { Card, IconButton, useStyles2 } from '@grafana/ui';
 
 export interface SqlExpressionCardProps {
   name: string;
@@ -9,13 +9,24 @@ export interface SqlExpressionCardProps {
   imageUrl?: string;
   onClick: () => void;
   testId?: string;
+  isDisabled?: boolean;
+  disabledTooltip?: string;
 }
 
-export function SqlExpressionCard({ name, description, imageUrl, onClick, testId }: SqlExpressionCardProps) {
+export function SqlExpressionCard({
+  name,
+  description,
+  imageUrl,
+  onClick,
+  testId,
+  isDisabled,
+  disabledTooltip,
+}: SqlExpressionCardProps) {
   const styles = useStyles2(getSqlExpressionCardStyles);
+  const cardClasses = isDisabled ? cx(styles.card, styles.cardDisabled) : styles.card;
 
   return (
-    <Card className={styles.card} data-testid={testId} onClick={onClick} noMargin>
+    <Card className={cardClasses} data-testid={testId} onClick={onClick} noMargin>
       <Card.Heading className={styles.heading}>
         <div className={styles.titleRow}>
           <span>{name}</span>
@@ -28,6 +39,9 @@ export function SqlExpressionCard({ name, description, imageUrl, onClick, testId
             <img className={styles.image} src={imageUrl} alt={name} />
           </span>
         )}
+        {isDisabled && disabledTooltip && (
+          <IconButton className={styles.cardApplicableInfo} name="info-circle" tooltip={disabledTooltip} />
+        )}
       </Card.Description>
     </Card>
   );
@@ -67,5 +81,17 @@ function getSqlExpressionCardStyles(theme: GrafanaTheme2) {
       maxWidth: '100%',
       marginTop: theme.spacing(2),
     }),
+    cardDisabled: css({
+      backgroundColor: theme.colors.action.disabledBackground,
+      img: {
+        filter: 'grayscale(100%)',
+        opacity: 0.33,
+      },
+    }),
+    cardApplicableInfo: css({
+      position: 'absolute',
+      bottom: theme.spacing(1),
+      right: theme.spacing(1),
+    }),
   };
 }
diff --git a/public/locales/en-US/grafana.json b/public/locales/en-US/grafana.json
index fd2b50edb93..0abb97c08f1 100644
--- a/public/locales/en-US/grafana.json
+++ b/public/locales/en-US/grafana.json
@@ -5942,6 +5942,7 @@
       "add-transformation": "Add transformation",
       "show-more": "Show more",
       "sql-name": "Transform with SQL",
+      "sql-not-applicable": "SQL expressions require backend data sources",
       "sql-transformation-description": "Manipulate your data using MySQL-like syntax"
     },
     "general-settings-edit-view": {