diff --git a/public/app/features/alerting/unified/components/RuleDefinitionSection.tsx b/public/app/features/alerting/unified/components/RuleDefinitionSection.tsx
index 197f741e764..14c9dec55e1 100644
--- a/public/app/features/alerting/unified/components/RuleDefinitionSection.tsx
+++ b/public/app/features/alerting/unified/components/RuleDefinitionSection.tsx
@@ -13,7 +13,7 @@ import { isCloudRecordingRuleByType, isGrafanaManagedRuleByType, isRecordingRule
 
 import { FolderSelectorV2 } from './rule-editor/FolderSelectorV2';
 import { LabelsEditorModal } from './rule-editor/labels/LabelsEditorModal';
-import { LabelsFieldInForm } from './rule-editor/labels/LabelsFieldInForm';
+import { LabelsFieldInFormV2 } from './rule-editor/labels/LabelsFieldInFormV2';
 
 export function RuleDefinitionSection({ type }: { type: RuleFormType }) {
   const styles = useStyles2(getStyles);
@@ -43,7 +43,11 @@ export function RuleDefinitionSection({ type }: { type: RuleFormType }) {
         <Stack direction="column" gap={2}>
           <Field
             noMargin
-            label={<Trans i18nKey="alerting.alert-rule-name-and-metric.label-name">Name</Trans>}
+            label={
+              <span className={styles.nameLabel}>
+                <Trans i18nKey="alerting.alert-rule-name-and-metric.label-name">Name</Trans>
+              </span>
+            }
             error={errors?.name?.message}
             invalid={!!errors.name?.message}
           >
@@ -78,7 +82,7 @@ export function RuleDefinitionSection({ type }: { type: RuleFormType }) {
           {isGrafanaManagedRuleByType(type) && (
             <>
               <FolderSelectorV2 />
-              <LabelsFieldInForm showHelpTooltip onEditClick={() => setShowLabelsEditor(true)} labelVariant="small" />
+              <LabelsFieldInFormV2 onEditClick={() => setShowLabelsEditor(true)} />
               <LabelsEditorModal
                 isOpen={showLabelsEditor}
                 onClose={(labelsToUpdate) => {
@@ -128,5 +132,9 @@ function getStyles(theme: GrafanaTheme2) {
       fontWeight: 600,
     }),
     contentIndented: css({ marginLeft: `calc(20px + ${theme.spacing(1)})` }),
+    nameLabel: css({
+      fontSize: theme.typography.bodySmall.fontSize,
+      fontWeight: 500,
+    }),
   };
 }
diff --git a/public/app/features/alerting/unified/components/RuleNotificationSection.tsx b/public/app/features/alerting/unified/components/RuleNotificationSection.tsx
index ffce0f3fbdc..768b547edc8 100644
--- a/public/app/features/alerting/unified/components/RuleNotificationSection.tsx
+++ b/public/app/features/alerting/unified/components/RuleNotificationSection.tsx
@@ -4,9 +4,7 @@ import { useMemo, useState } from 'react';
 import { notificationsAPIv0alpha1 } from '@grafana/alerting/unstable';
 import type { GrafanaTheme2 } from '@grafana/data';
 import { Trans, t } from '@grafana/i18n';
-import { Button, Combobox, ComboboxOption, Field, Input, Stack, TextArea, useStyles2 } from '@grafana/ui';
-
-import { LinkToContactPoints } from './rule-editor/alert-rule-form/simplifiedRouting/contactPoint/ContactPointSelector';
+import { Button, Combobox, ComboboxOption, Field, Input, Stack, TextArea, TextLink, useStyles2 } from '@grafana/ui';
 
 export function RuleNotificationSection() {
   const styles = useStyles2(getStyles);
@@ -37,7 +35,7 @@ export function RuleNotificationSection() {
       <div className={styles.contentIndented}>
         <Stack direction="column" gap={2}>
           <Field
-            label={t('alerting.simplified.notification.contact-point', 'Contact point')}
+            label={t('alerting.simplified.notification.contact-point.label', 'Contact point')}
             description={t(
               'alerting.simplified.notification.contact-point.description',
               'Select who should receive a notification when the alert rule fires'
@@ -67,11 +65,22 @@ export function RuleNotificationSection() {
                   }
                 }}
               />
-              <LinkToContactPoints />
+              <TextLink
+                external
+                href={'/alerting/notifications'}
+                aria-label={t(
+                  'alerting.link-to-contact-points.aria-label-view-or-create-contact-points',
+                  'View or create contact points'
+                )}
+              >
+                <Trans i18nKey="alerting.link-to-contact-points.view-or-create-contact-points">
+                  View or create contact points
+                </Trans>
+              </TextLink>
             </Stack>
           </Field>
 
-          <Field label={t('alerting.simplified.notification.summary', 'Summary (optional)')} noMargin>
+          <Field label={t('alerting.simplified.notification.summary.label', 'Summary (optional)')} noMargin>
             <TextArea
               placeholder={t(
                 'alerting.simplified.notification.summary.placeholder',
@@ -80,7 +89,7 @@ export function RuleNotificationSection() {
             />
           </Field>
 
-          <Field label={t('alerting.simplified.notification.description', 'Description (optional)')} noMargin>
+          <Field label={t('alerting.simplified.notification.description.label', 'Description (optional)')} noMargin>
             <TextArea
               placeholder={t(
                 'alerting.simplified.notification.description.placeholder',
@@ -89,7 +98,7 @@ export function RuleNotificationSection() {
             />
           </Field>
 
-          <Field label={t('alerting.simplified.notification.runbook-url', 'Runbook URL (optional)')} noMargin>
+          <Field label={t('alerting.simplified.notification.runbook-url.label', 'Runbook URL (optional)')} noMargin>
             <Input
               placeholder={t(
                 'alerting.simplified.notification.runbook-url.placeholder',
diff --git a/public/app/features/alerting/unified/components/rule-editor/FolderSelectorV2.tsx b/public/app/features/alerting/unified/components/rule-editor/FolderSelectorV2.tsx
index 4ee9be33bcc..4a1221b68aa 100644
--- a/public/app/features/alerting/unified/components/rule-editor/FolderSelectorV2.tsx
+++ b/public/app/features/alerting/unified/components/rule-editor/FolderSelectorV2.tsx
@@ -55,7 +55,7 @@ export function FolderSelectorV2() {
           error={errors.folder?.message}
           data-testid="folder-picker"
         >
-          <Stack direction="column" alignItems="flex-start" gap={0.5}>
+          <Stack direction="column" alignItems="flex-start" gap={1}>
             <Controller
               render={({ field: { ref, ...field } }) => (
                 <div style={{ width: 420 }}>
diff --git a/public/app/features/alerting/unified/components/rule-editor/labels/LabelsFieldInForm.tsx b/public/app/features/alerting/unified/components/rule-editor/labels/LabelsFieldInForm.tsx
index 0304ae0768e..d6217be0c59 100644
--- a/public/app/features/alerting/unified/components/rule-editor/labels/LabelsFieldInForm.tsx
+++ b/public/app/features/alerting/unified/components/rule-editor/labels/LabelsFieldInForm.tsx
@@ -1,7 +1,7 @@
-import { useFormContext, useWatch } from 'react-hook-form';
+import { useFormContext } from 'react-hook-form';
 
 import { Trans, t } from '@grafana/i18n';
-import { Button, Icon, Stack, Text, Tooltip } from '@grafana/ui';
+import { Button, Stack, Text } from '@grafana/ui';
 
 import { AIImproveLabelsButtonComponent } from '../../../enterprise-components/AI/AIGenImproveLabelsButton/addAIImproveLabelsButton';
 import { RuleFormValues } from '../../../types/rule-form';
@@ -12,18 +12,11 @@ import { LabelsInRule } from './LabelsField';
 
 interface LabelsFieldInFormProps {
   onEditClick: () => void;
-  labelVariant?: 'small' | 'default';
-  showHelpTooltip?: boolean;
 }
-export function LabelsFieldInForm({
-  onEditClick,
-  labelVariant = 'default',
-  showHelpTooltip = false,
-}: LabelsFieldInFormProps) {
-  const { control, watch } = useFormContext<RuleFormValues>();
+export function LabelsFieldInForm({ onEditClick }: LabelsFieldInFormProps) {
+  const { watch } = useFormContext<RuleFormValues>();
 
-  // Subscribe to label changes so UI updates when modal saves
-  const labels = useWatch({ control, name: 'labels' }) ?? [];
+  const labels = watch('labels');
   const type = watch('type');
 
   const isRecordingRule = type ? isRecordingRuleByType(type) : false;
@@ -36,48 +29,13 @@ export function LabelsFieldInForm({
         'Add labels to your rule for searching, silencing, or routing to a notification policy.'
       );
 
-  const hasLabels = Array.isArray(labels) && labels.length > 0 && labels.some((label) => label?.key || label?.value);
+  const hasLabels = Object.keys(labels).length > 0 && labels.some((label) => label.key || label.value);
 
   return (
     <Stack direction="column" gap={2}>
       <Stack direction="column" gap={1}>
         <Text element="h5">
-          <Stack direction="row" alignItems="center" gap={0.5}>
-            {labelVariant === 'small' ? (
-              <Text variant="bodySmall">
-                <Trans i18nKey="alerting.labels-field-in-form.labels">Labels</Trans>
-              </Text>
-            ) : (
-              <Text element="h5">
-                <Trans i18nKey="alerting.labels-field-in-form.labels">Labels</Trans>
-              </Text>
-            )}
-            <Text variant="bodySmall" color="secondary">
-              {t('alerting.common.optional', '(optional)')}
-            </Text>
-            {showHelpTooltip && (
-              <Tooltip
-                content={
-                  <div>
-                    <div style={{ marginBottom: 8 }}>
-                      {t(
-                        'alerting.labels-field-in-form.tooltip-text',
-                        'Labels are used to differentiate an alert from all other alerts.You can use them for searching, silencing, and routing notifications.'
-                      )}
-                    </div>
-                    <div>
-                      {t(
-                        'alerting.labels-field-in-form.tooltip-text-2',
-                        'The dropdown only displays labels that you have previously used for alerts. Select a label from the options below or type in a new one.'
-                      )}
-                    </div>
-                  </div>
-                }
-              >
-                <Icon name="info-circle" size="sm" />
-              </Tooltip>
-            )}
-          </Stack>
+          <Trans i18nKey="alerting.labels-field-in-form.labels">Labels</Trans>
         </Text>
         <Stack direction={'column'} gap={1}>
           <Stack direction={'row'} gap={1}>
diff --git a/public/app/features/alerting/unified/components/rule-editor/labels/LabelsFieldInFormV2.tsx b/public/app/features/alerting/unified/components/rule-editor/labels/LabelsFieldInFormV2.tsx
new file mode 100644
index 00000000000..8378ee9bd22
--- /dev/null
+++ b/public/app/features/alerting/unified/components/rule-editor/labels/LabelsFieldInFormV2.tsx
@@ -0,0 +1,86 @@
+import { useFormContext, useWatch } from 'react-hook-form';
+
+import { Trans, t } from '@grafana/i18n';
+import { Button, Field, Stack, Text } from '@grafana/ui';
+
+import { AIImproveLabelsButtonComponent } from '../../../enterprise-components/AI/AIGenImproveLabelsButton/addAIImproveLabelsButton';
+import { RuleFormValues } from '../../../types/rule-form';
+import { isGrafanaManagedRuleByType, isRecordingRuleByType } from '../../../utils/rules';
+
+import { LabelsInRule } from './LabelsField';
+
+interface LabelsFieldInFormProps {
+  onEditClick: () => void;
+}
+export function LabelsFieldInFormV2({ onEditClick }: LabelsFieldInFormProps) {
+  const { control, watch } = useFormContext<RuleFormValues>();
+
+  // Subscribe to label changes so UI updates when modal saves
+  const labels = useWatch({ control, name: 'labels' }) ?? [];
+  const type = watch('type');
+
+  const isRecordingRule = type ? isRecordingRuleByType(type) : false;
+  const isGrafanaManaged = type ? isGrafanaManagedRuleByType(type) : false;
+
+  const text = isRecordingRule
+    ? t('alerting.alertform.labels.recording', 'Add labels to your rule.')
+    : t(
+        'alerting.alertform.labels.alerting',
+        'Add labels to your rule for searching, silencing, or routing to a notification policy.'
+      );
+
+  const hasLabels = Array.isArray(labels) && labels.length > 0 && labels.some((label) => label?.key || label?.value);
+
+  return (
+    <Field
+      noMargin
+      label={
+        <Stack direction="row" alignItems="center" gap={0.5}>
+          <Text variant="bodySmall">
+            <Trans i18nKey="alerting.labels-field-in-form.labels">Labels</Trans>
+          </Text>
+          <Text variant="bodySmall" color="secondary">
+            {t('alerting.common.optional', '(optional)')}
+          </Text>
+        </Stack>
+      }
+    >
+      <Stack direction={'column'} gap={2}>
+        <Stack direction={'column'} gap={1}>
+          <Stack direction={'row'} gap={1}>
+            <Text variant="bodySmall" color="secondary">
+              {text}
+            </Text>
+          </Stack>
+          {isGrafanaManaged && <AIImproveLabelsButtonComponent />}
+        </Stack>
+        <Stack>
+          {hasLabels ? (
+            <Stack direction="row" gap={1} alignItems="center">
+              <LabelsInRule labels={labels} />
+              <Button variant="secondary" type="button" onClick={onEditClick} size="sm">
+                <Trans i18nKey="alerting.labels-field-in-form.edit-labels">Edit labels</Trans>
+              </Button>
+            </Stack>
+          ) : (
+            <Stack direction="column" gap={0.5} alignItems="start">
+              <Text color="secondary">
+                <Trans i18nKey="alerting.labels-field-in-form.no-labels-selected">No labels selected</Trans>
+              </Text>
+              <Button
+                icon="plus"
+                type="button"
+                variant="secondary"
+                onClick={onEditClick}
+                size="sm"
+                data-testid="add-labels-button"
+              >
+                <Trans i18nKey="alerting.labels-field-in-form.add-labels">Add labels</Trans>
+              </Button>
+            </Stack>
+          )}
+        </Stack>
+      </Stack>
+    </Field>
+  );
+}
diff --git a/public/locales/en-US/grafana.json b/public/locales/en-US/grafana.json
index 9c8f04c6868..32a5dea74c4 100644
--- a/public/locales/en-US/grafana.json
+++ b/public/locales/en-US/grafana.json
@@ -523,6 +523,7 @@
       "metric-aria-label-metric": "metric",
       "metric-placeholder-recorded-metric": "Give the name of the new recorded metric",
       "placeholder-name": "Give your {{namePlaceholder}} a name",
+      "recording-rule-pattern": "Recording rule name must be valid metric name. It may only contain letters, numbers, and colons. It may not contain whitespace.",
       "title-section": "Enter {{entityName}} name"
     },
     "alert-rules": {
@@ -863,6 +864,8 @@
       "export-all": "Export all",
       "learn-more": "Learn more",
       "loading": "Loading...",
+      "optional": "(optional)",
+      "refresh": "Refresh",
       "search-by-matchers": "Search by matchers",
       "titles": {
         "notification-templates": "Notification Templates"
@@ -1076,6 +1079,9 @@
       "text-loading-notification-template": "Loading notification template",
       "title-error-loading-notification-template": "Error loading notification template"
     },
+    "duration": {
+      "immediately": "immediately"
+    },
     "duration-quick-pick": {
       "none": "None"
     },
@@ -2811,6 +2817,47 @@
     "simpleCondition": {
       "alertCondition": "Alert condition"
     },
+    "simplified": {
+      "condition": {
+        "title": "Condition"
+      },
+      "continue-in-alerting": "Continue in Alerting",
+      "create": "Create",
+      "evaluation": {
+        "after-breached": "after the condition is initially breached.",
+        "custom-delay": "with custom delay of",
+        "custom-delay-invalid": "The delay must be a multiple of the evaluation frequency.",
+        "every": "Evaluate the rule every",
+        "fire": "Fire the alert rule",
+        "immediate-warning": "Immediate firing might lead to unnecessary alerts being sent for temporary issues",
+        "wait-prefix": "Wait",
+        "wait-suffix": "after the condition is breached before firing."
+      },
+      "notification": {
+        "contact-point": {
+          "description": "Select who should receive a notification when the alert rule fires",
+          "label": "Contact point"
+        },
+        "description": {
+          "label": "Description (optional)",
+          "placeholder": "Enter a description of what the alert rule does…"
+        },
+        "runbook-url": {
+          "label": "Runbook URL (optional)",
+          "placeholder": "Enter the webpage where you keep your runbook for the alert…"
+        },
+        "select-contact-point": "Select a contact point...",
+        "summary": {
+          "label": "Summary (optional)",
+          "placeholder": "Enter a summary of what happened and why…"
+        },
+        "title": "Notification"
+      },
+      "rule-definition": "Rule Definition",
+      "step-number-one": "1",
+      "step-number-three": "3",
+      "step-number-two": "2"
+    },
     "smart-alert-type-detector": {
       "data-source-managed": "Data source-managed",
       "data-sourcemanaged-alert-rules": "Data source-managed alert rules",