diff --git a/public/app/features/dashboard-scene/scene/DashboardScene.test.tsx b/public/app/features/dashboard-scene/scene/DashboardScene.test.tsx
index bfad9110786..69b1e38091d 100644
--- a/public/app/features/dashboard-scene/scene/DashboardScene.test.tsx
+++ b/public/app/features/dashboard-scene/scene/DashboardScene.test.tsx
@@ -490,6 +490,39 @@ describe('DashboardScene', () => {
         const gridRow = body.state.children[2] as SceneGridRow;
         expect(gridRow.state.children.length).toBe(1);
       });
+
+      it('Should unlink a  library panel', () => {
+        const libPanel = new LibraryVizPanel({
+          title: 'title',
+          uid: 'abc',
+          name: 'lib panel',
+          panelKey: 'panel-1',
+          isLoaded: true,
+          panel: new VizPanel({
+            title: 'Panel B',
+            pluginId: 'table',
+          }),
+        });
+
+        const scene = buildTestScene({
+          body: new SceneGridLayout({
+            children: [
+              new SceneGridItem({
+                key: 'griditem-2',
+                body: libPanel,
+              }),
+            ],
+          }),
+        });
+
+        scene.unlinkLibraryPanel(libPanel);
+
+        const body = scene.state.body as SceneGridLayout;
+        const gridItem = body.state.children[0] as SceneGridItem;
+
+        expect(body.state.children.length).toBe(1);
+        expect(gridItem.state.body).toBeInstanceOf(VizPanel);
+      });
     });
   });
 
diff --git a/public/app/features/dashboard-scene/scene/DashboardScene.tsx b/public/app/features/dashboard-scene/scene/DashboardScene.tsx
index a08933bac67..be27cb411a5 100644
--- a/public/app/features/dashboard-scene/scene/DashboardScene.tsx
+++ b/public/app/features/dashboard-scene/scene/DashboardScene.tsx
@@ -603,6 +603,23 @@ export class DashboardScene extends SceneObjectBase<DashboardSceneState> {
     }
   }
 
+  public unlinkLibraryPanel(panel: LibraryVizPanel) {
+    if (!panel.parent) {
+      return;
+    }
+
+    const gridItem = panel.parent;
+
+    if (!(gridItem instanceof SceneGridItem || gridItem instanceof PanelRepeaterGridItem)) {
+      console.error('Trying to duplicate a panel in a layout that is not SceneGridItem or PanelRepeaterGridItem');
+      return;
+    }
+
+    gridItem?.setState({
+      body: panel.state.panel?.clone(),
+    });
+  }
+
   public showModal(modal: SceneObject) {
     this.setState({ overlay: modal });
   }
diff --git a/public/app/features/dashboard-scene/scene/PanelMenuBehavior.tsx b/public/app/features/dashboard-scene/scene/PanelMenuBehavior.tsx
index 84d7870b5ef..323c89e7608 100644
--- a/public/app/features/dashboard-scene/scene/PanelMenuBehavior.tsx
+++ b/public/app/features/dashboard-scene/scene/PanelMenuBehavior.tsx
@@ -28,6 +28,7 @@ import { getDashboardSceneFor, getPanelIdForVizPanel, getQueryRunnerFor } from '
 import { DashboardScene } from './DashboardScene';
 import { LibraryVizPanel } from './LibraryVizPanel';
 import { VizPanelLinks, VizPanelLinksMenu } from './PanelLinks';
+import { UnlinkLibraryPanelModal } from './UnlinkLibraryPanelModal';
 
 /**
  * Behavior is called when VizPanelMenu is activated (ie when it's opened).
@@ -37,6 +38,7 @@ export function panelMenuBehavior(menu: VizPanelMenu) {
     // hm.. add another generic param to SceneObject to specify parent type?
     // eslint-disable-next-line @typescript-eslint/consistent-type-assertions
     const panel = menu.parent as VizPanel;
+    const parent = panel.parent;
     const plugin = panel.getPlugin();
 
     const items: PanelMenuItem[] = [];
@@ -101,8 +103,18 @@ export function panelMenuBehavior(menu: VizPanelMenu) {
       },
     });
 
-    if (panel.parent instanceof LibraryVizPanel) {
-      // TODO: Implement lib panel unlinking
+    if (parent instanceof LibraryVizPanel) {
+      moreSubMenu.push({
+        text: t('panel.header-menu.unlink-library-panel', `Unlink library panel`),
+        onClick: () => {
+          DashboardInteractions.panelMenuItemClicked('unlinkLibraryPanel');
+          dashboard.showModal(
+            new UnlinkLibraryPanelModal({
+              panelRef: parent.getRef(),
+            })
+          );
+        },
+      });
     } else {
       moreSubMenu.push({
         text: t('panel.header-menu.create-library-panel', `Create library panel`),
diff --git a/public/app/features/dashboard-scene/scene/UnlinkLibraryPanelModal.tsx b/public/app/features/dashboard-scene/scene/UnlinkLibraryPanelModal.tsx
new file mode 100644
index 00000000000..8dc2696a71d
--- /dev/null
+++ b/public/app/features/dashboard-scene/scene/UnlinkLibraryPanelModal.tsx
@@ -0,0 +1,44 @@
+import React from 'react';
+
+import { SceneComponentProps, SceneObjectBase, SceneObjectRef, SceneObjectState } from '@grafana/scenes';
+
+import { ModalSceneObjectLike } from '../sharing/types';
+import { getDashboardSceneFor } from '../utils/utils';
+
+import { LibraryVizPanel } from './LibraryVizPanel';
+import { UnlinkModal } from './UnlinkModal';
+
+interface UnlinkLibraryPanelModalState extends SceneObjectState {
+  panelRef?: SceneObjectRef<LibraryVizPanel>;
+}
+
+export class UnlinkLibraryPanelModal
+  extends SceneObjectBase<UnlinkLibraryPanelModalState>
+  implements ModalSceneObjectLike
+{
+  static Component = UnlinkLibraryPanelModalRenderer;
+
+  public onDismiss = () => {
+    const dashboard = getDashboardSceneFor(this);
+    dashboard.closeModal();
+  };
+
+  public onConfirm = () => {
+    const dashboard = getDashboardSceneFor(this);
+    dashboard.unlinkLibraryPanel(this.state.panelRef!.resolve());
+    dashboard.closeModal();
+  };
+}
+
+function UnlinkLibraryPanelModalRenderer({ model }: SceneComponentProps<UnlinkLibraryPanelModal>) {
+  return (
+    <UnlinkModal
+      isOpen={true}
+      onConfirm={() => {
+        model.onConfirm();
+        model.onDismiss();
+      }}
+      onDismiss={model.onDismiss}
+    />
+  );
+}
diff --git a/public/app/features/library-panels/components/UnlinkModal/UnlinkModal.tsx b/public/app/features/dashboard-scene/scene/UnlinkModal.tsx
similarity index 100%
rename from public/app/features/library-panels/components/UnlinkModal/UnlinkModal.tsx
rename to public/app/features/dashboard-scene/scene/UnlinkModal.tsx
diff --git a/public/app/features/dashboard/components/PanelEditor/PanelEditor.tsx b/public/app/features/dashboard/components/PanelEditor/PanelEditor.tsx
index eb31dae7c04..1577591e4bc 100644
--- a/public/app/features/dashboard/components/PanelEditor/PanelEditor.tsx
+++ b/public/app/features/dashboard/components/PanelEditor/PanelEditor.tsx
@@ -33,7 +33,7 @@ import { StoreState } from 'app/types';
 import { PanelOptionsChangedEvent, ShowModalReactEvent } from 'app/types/events';
 
 import { notifyApp } from '../../../../core/actions';
-import { UnlinkModal } from '../../../library-panels/components/UnlinkModal/UnlinkModal';
+import { UnlinkModal } from '../../../dashboard-scene/scene/UnlinkModal';
 import { isPanelModelLibraryPanel } from '../../../library-panels/guard';
 import { getVariablesByKey } from '../../../variables/state/selectors';
 import { DashboardPanel } from '../../dashgrid/DashboardPanel';
diff --git a/public/app/features/dashboard/utils/panel.ts b/public/app/features/dashboard/utils/panel.ts
index cd178de9a4d..bc12af97840 100644
--- a/public/app/features/dashboard/utils/panel.ts
+++ b/public/app/features/dashboard/utils/panel.ts
@@ -9,8 +9,8 @@ import store from 'app/core/store';
 import { ShareModal } from 'app/features/dashboard/components/ShareModal';
 import { DashboardModel } from 'app/features/dashboard/state/DashboardModel';
 import { PanelModel } from 'app/features/dashboard/state/PanelModel';
+import { UnlinkModal } from 'app/features/dashboard-scene/scene/UnlinkModal';
 import { AddLibraryPanelModal } from 'app/features/library-panels/components/AddLibraryPanelModal/AddLibraryPanelModal';
-import { UnlinkModal } from 'app/features/library-panels/components/UnlinkModal/UnlinkModal';
 import { cleanUpPanelState } from 'app/features/panel/state/actions';
 import { dispatch } from 'app/store/store';