diff --git a/public/app/features/alerting/unified/components/AlertRuleDrawerForm.tsx b/public/app/features/alerting/unified/components/AlertRuleDrawerForm.tsx
index ec6ad0af0d7..6832c8a4aa5 100644
--- a/public/app/features/alerting/unified/components/AlertRuleDrawerForm.tsx
+++ b/public/app/features/alerting/unified/components/AlertRuleDrawerForm.tsx
@@ -137,10 +137,10 @@ export function AlertRuleDrawerForm({
                   variant="secondary"
                   type="button"
                   onClick={() => {
-                    const values = methods.getValues();
+                    const currentValues = methods.getValues();
                     onContinueInAlerting({
-                      ...values,
-                      contactPoints: normalizeContactPoints(values.contactPoints),
+                      ...currentValues,
+                      contactPoints: normalizeContactPoints(currentValues.contactPoints),
                     });
                   }}
                 >
diff --git a/public/app/features/alerting/unified/rule-editor/formDefaults.ts b/public/app/features/alerting/unified/rule-editor/formDefaults.ts
index 064fd6c93e3..1912bd2a64b 100644
--- a/public/app/features/alerting/unified/rule-editor/formDefaults.ts
+++ b/public/app/features/alerting/unified/rule-editor/formDefaults.ts
@@ -251,10 +251,12 @@ export function formValuesFromPrefill(rule: Partial<RuleFormValues>): RuleFormVa
     parsedRule = alertingAlertRuleFormSchema.parse(rule);
   }
 
-  return revealHiddenQueries({
-    ...getDefaultFormValues(rule.type),
-    ...parsedRule,
-  });
+  return setQueryEditorSettings(
+    revealHiddenQueries({
+      ...getDefaultFormValues(rule.type),
+      ...parsedRule,
+    })
+  );
 }
 
 export function formValuesFromExistingRule(rule: RuleWithLocation<RulerRuleDTO>) {
diff --git a/public/app/features/alerting/unified/rule-editor/formProcessing.ts b/public/app/features/alerting/unified/rule-editor/formProcessing.ts
index e986604422d..3bd0ae101c8 100644
--- a/public/app/features/alerting/unified/rule-editor/formProcessing.ts
+++ b/public/app/features/alerting/unified/rule-editor/formProcessing.ts
@@ -30,6 +30,21 @@ export function setQueryEditorSettings(values: RuleFormValues): RuleFormValues {
   // expression queries only
   const expressionQueries = values.queries.filter((query) => isExpressionQueryInAlert(query));
 
+  // If we have data queries but no expressions (e.g., coming from dashboard panel),
+  // default to simplified mode so the form can create appropriate expressions
+  const hasDataQueries = dataQueries.length > 0;
+  const hasExpressions = expressionQueries.length > 0;
+
+  if (hasDataQueries && !hasExpressions) {
+    return {
+      ...values,
+      editorSettings: {
+        simplifiedQueryEditor: true,
+        simplifiedNotificationEditor: true,
+      },
+    };
+  }
+
   const queryParamsAreTransformable = areQueriesTransformableToSimpleCondition(dataQueries, expressionQueries);
   return {
     ...values,
diff --git a/public/app/features/alerting/unified/utils/rule-form.ts b/public/app/features/alerting/unified/utils/rule-form.ts
index 0e83a276851..882670b845b 100644
--- a/public/app/features/alerting/unified/utils/rule-form.ts
+++ b/public/app/features/alerting/unified/utils/rule-form.ts
@@ -7,7 +7,6 @@ import {
   ScopedVars,
   TimeRange,
   getDefaultRelativeTimeRange,
-  getNextRefId,
   rangeUtil,
 } from '@grafana/data';
 import { PromQuery } from '@grafana/prometheus';
@@ -783,26 +782,6 @@ export const panelToRuleFormValues = async (
     return undefined;
   }
 
-  const lastQuery = queries.at(-1);
-  if (!lastQuery) {
-    return undefined;
-  }
-
-  if (!queries.find((query) => query.datasourceUid === ExpressionDatasourceUID)) {
-    const reduceExpression = getDefaultReduceExpression({
-      inputRefId: lastQuery.refId,
-      reduceRefId: getNextRefId(queries),
-    });
-    queries.push(reduceExpression);
-
-    const thresholdExpression = getDefaultThresholdExpression({
-      inputRefId: reduceExpression.refId,
-      thresholdRefId: getNextRefId(queries),
-    });
-
-    queries.push(thresholdExpression);
-  }
-
   const { folderTitle, folderUid } = dashboard.meta;
   const folder =
     folderUid && folderTitle
@@ -818,7 +797,8 @@ export const panelToRuleFormValues = async (
     folder,
     queries,
     name: panel.title,
-    condition: queries[queries.length - 1].refId,
+    // Condition left empty - expressions will be created in the alert rule form under advanced options
+    condition: '',
     annotations: [
       {
         key: Annotation.dashboardUID,
@@ -870,26 +850,6 @@ export const scenesPanelToRuleFormValues = async (vizPanel: VizPanel): Promise<P
     return undefined;
   }
 
-  const lastQuery = grafanaQueries.at(-1);
-  if (!lastQuery) {
-    return undefined;
-  }
-
-  if (!grafanaQueries.find((query) => query.datasourceUid === ExpressionDatasourceUID)) {
-    const reduceExpression = getDefaultReduceExpression({
-      inputRefId: lastQuery.refId,
-      reduceRefId: getNextRefId(grafanaQueries),
-    });
-    grafanaQueries.push(reduceExpression);
-
-    const thresholdExpression = getDefaultThresholdExpression({
-      inputRefId: reduceExpression.refId,
-      thresholdRefId: getNextRefId(grafanaQueries),
-    });
-
-    grafanaQueries.push(thresholdExpression);
-  }
-
   const { folderTitle, folderUid } = dashboard.state.meta;
 
   const folder =
@@ -906,7 +866,8 @@ export const scenesPanelToRuleFormValues = async (vizPanel: VizPanel): Promise<P
     folder,
     queries: grafanaQueries,
     name: vizPanel.state.title,
-    condition: grafanaQueries[grafanaQueries.length - 1].refId,
+    // Condition left empty - expressions will be created in the alert rule form under advanced options
+    condition: '',
     annotations: [
       {
         key: Annotation.dashboardUID,