diff --git a/public/app/features/alerting/unified/components/AnnotationDetailsField.tsx b/public/app/features/alerting/unified/components/AnnotationDetailsField.tsx
index 5c193fd1053..0666eb1e4dc 100644
--- a/public/app/features/alerting/unified/components/AnnotationDetailsField.tsx
+++ b/public/app/features/alerting/unified/components/AnnotationDetailsField.tsx
@@ -7,6 +7,7 @@ import { Tooltip, useStyles } from '@grafana/ui';
 import { Annotation, annotationLabels } from '../utils/constants';
 
 import { DetailsField } from './DetailsField';
+import { Tokenize } from './Tokenize';
 import { Well } from './Well';
 
 const wellableAnnotationKeys = ['message', 'description'];
@@ -38,8 +39,10 @@ const AnnotationValue: FC<Props> = ({ annotationKey, value }) => {
   const needsWell = wellableAnnotationKeys.includes(annotationKey);
   const needsLink = value && value.startsWith('http');
 
+  const tokenizeValue = <Tokenize input={value} delimiter={['{{', '}}']} />;
+
   if (needsWell) {
-    return <Well className={styles.well}>{value}</Well>;
+    return <Well className={styles.well}>{tokenizeValue}</Well>;
   }
 
   if (needsLink) {
@@ -50,7 +53,7 @@ const AnnotationValue: FC<Props> = ({ annotationKey, value }) => {
     );
   }
 
-  return <>{value}</>;
+  return <>{tokenizeValue}</>;
 };
 
 export const getStyles = (theme: GrafanaTheme) => ({
diff --git a/public/app/features/alerting/unified/components/HoverCard.tsx b/public/app/features/alerting/unified/components/HoverCard.tsx
new file mode 100644
index 00000000000..baea3a6e36f
--- /dev/null
+++ b/public/app/features/alerting/unified/components/HoverCard.tsx
@@ -0,0 +1,62 @@
+import { css } from '@emotion/css';
+import { Placement } from '@popperjs/core';
+import classnames from 'classnames';
+import React, { FC, ReactElement, useRef } from 'react';
+
+import { GrafanaTheme2 } from '@grafana/data';
+import { Popover as GrafanaPopover, PopoverController, useStyles2 } from '@grafana/ui';
+
+export interface HoverCardProps {
+  children: ReactElement;
+  content: ReactElement;
+  wrapperClassName?: string;
+  placement?: Placement;
+  disabled?: boolean;
+}
+
+export const HoverCard: FC<HoverCardProps> = ({ children, content, wrapperClassName, disabled = false, ...rest }) => {
+  const popoverRef = useRef<HTMLElement>(null);
+  const styles = useStyles2(getStyles);
+
+  if (disabled) {
+    return children;
+  }
+
+  return (
+    <PopoverController content={content} hideAfter={100}>
+      {(showPopper, hidePopper, popperProps) => {
+        return (
+          <>
+            {popoverRef.current && (
+              <GrafanaPopover
+                {...popperProps}
+                {...rest}
+                wrapperClassName={classnames(styles.popover, wrapperClassName)}
+                onMouseLeave={hidePopper}
+                onMouseEnter={showPopper}
+                referenceElement={popoverRef.current}
+              />
+            )}
+
+            {React.cloneElement(children, {
+              ref: popoverRef,
+              onMouseEnter: showPopper,
+              onMouseLeave: hidePopper,
+            })}
+          </>
+        );
+      }}
+    </PopoverController>
+  );
+};
+
+const getStyles = (theme: GrafanaTheme2) => ({
+  popover: css`
+    border-radius: ${theme.shape.borderRadius()};
+    box-shadow: ${theme.shadows.z3};
+    background: ${theme.colors.background.primary};
+    border: 1px solid ${theme.colors.border.medium};
+
+    padding: ${theme.spacing(1)};
+  `,
+});
diff --git a/public/app/features/alerting/unified/components/Tokenize.tsx b/public/app/features/alerting/unified/components/Tokenize.tsx
new file mode 100644
index 00000000000..77b217e6b9a
--- /dev/null
+++ b/public/app/features/alerting/unified/components/Tokenize.tsx
@@ -0,0 +1,149 @@
+import { css } from '@emotion/css';
+import React from 'react';
+
+import { GrafanaTheme2 } from '@grafana/data';
+import { Badge, useStyles2 } from '@grafana/ui';
+
+import { HoverCard } from './HoverCard';
+import { keywords as KEYWORDS, builtinFunctions as FUNCTIONS } from './receivers/editor/language';
+
+const VARIABLES = ['$', '.', '"'];
+
+interface TokenizerProps {
+  input: string;
+  delimiter?: [string, string];
+}
+
+function Tokenize({ input, delimiter = ['{{', '}}'] }: TokenizerProps) {
+  const styles = useStyles2(getStyles);
+
+  const [open, close] = delimiter;
+  const normalizedIput = normalizeInput(input);
+
+  /**
+   * This RegExp uses 2 named capture groups, text that comes before the token and the token itself
+   *
+   *  <before> open  <token>  close
+   *  ───────── ── ─────────── ──
+   *  Some text {{ $labels.foo }}
+   */
+  const regex = new RegExp(`(?<before>.*?)(${open}(?<token>.*?)${close}|$)`, 'gm');
+
+  const matches = Array.from(normalizedIput.matchAll(regex));
+
+  const output: React.ReactElement[] = [];
+
+  matches.forEach((match, index) => {
+    const before = match.groups?.before;
+    const token = match.groups?.token?.trim();
+
+    if (before) {
+      output.push(<span key={`${index}-before`}>{before}</span>);
+    }
+
+    if (token) {
+      const type = tokenType(token);
+      const description = type === TokenType.Variable ? token : '';
+      const tokenContent = `${open} ${token} ${close}`;
+
+      output.push(<Token key={`${index}-token`} content={tokenContent} type={type} description={description} />);
+    }
+  });
+
+  return <span className={styles.wrapper}>{output}</span>;
+}
+
+enum TokenType {
+  Variable = 'variable',
+  Function = 'function',
+  Keyword = 'keyword',
+  Unknown = 'unknown',
+}
+
+interface TokenProps {
+  content: string;
+  type?: TokenType;
+  description?: string;
+}
+
+function Token({ content, description, type }: TokenProps) {
+  const styles = useStyles2(getStyles);
+  const varName = content.trim();
+
+  const disableCard = Boolean(type) === false;
+
+  return (
+    <HoverCard
+      placement="top-start"
+      disabled={disableCard}
+      content={
+        <div className={styles.hoverTokenItem}>
+          <Badge text={<>{type}</>} color={'blue'} /> {description && <code>{description}</code>}
+        </div>
+      }
+    >
+      <span>
+        <Badge className={styles.token} text={varName} color={'blue'} />
+      </span>
+    </HoverCard>
+  );
+}
+
+function normalizeInput(input: string) {
+  return input.replace(/\s+/g, ' ').trim();
+}
+
+function isVariable(input: string) {
+  return VARIABLES.some((character) => input.startsWith(character));
+}
+
+function isKeyword(input: string) {
+  return KEYWORDS.some((keyword) => input.startsWith(keyword));
+}
+
+function isFunction(input: string) {
+  return FUNCTIONS.some((functionName) => input.startsWith(functionName));
+}
+
+function tokenType(input: string) {
+  let tokenType;
+  if (isVariable(input)) {
+    tokenType = TokenType.Variable;
+  } else if (isKeyword(input)) {
+    tokenType = TokenType.Keyword;
+  } else if (isFunction(input)) {
+    tokenType = TokenType.Function;
+  } else {
+    tokenType = TokenType.Unknown;
+  }
+
+  return tokenType;
+}
+
+const getStyles = (theme: GrafanaTheme2) => ({
+  wrapper: css`
+    display: inline-flex;
+    align-items: center;
+    white-space: pre;
+  `,
+  token: css`
+    cursor: default;
+    font-family: ${theme.typography.fontFamilyMonospace};
+  `,
+  popover: css`
+    border-radius: ${theme.shape.borderRadius()};
+    box-shadow: ${theme.shadows.z3};
+    background: ${theme.colors.background.primary};
+    border: 1px solid ${theme.colors.border.medium};
+
+    padding: ${theme.spacing(1)};
+  `,
+  hoverTokenItem: css`
+    display: flex;
+    flex-direction: row;
+    align-items: center;
+    gap: ${theme.spacing(1)};
+  `,
+});
+
+export { Tokenize, Token };
diff --git a/public/app/features/alerting/unified/components/receivers/editor/language.ts b/public/app/features/alerting/unified/components/receivers/editor/language.ts
index 7775e71c8f2..04418d052d0 100644
--- a/public/app/features/alerting/unified/components/receivers/editor/language.ts
+++ b/public/app/features/alerting/unified/components/receivers/editor/language.ts
@@ -15,7 +15,7 @@ enum TokenType {
 
 // list of available functions in Alertmanager templates
 // see https://cs.github.com/prometheus/alertmanager/blob/805e505288ce82c3e2b625a3ca63aaf2b0aa9cea/template/template.go?q=join#L132-L151
-const availableAlertManagerFunctions = [
+export const availableAlertManagerFunctions = [
   'toUpper',
   'toLower',
   'title',
@@ -26,8 +26,11 @@ const availableAlertManagerFunctions = [
   'stringSlice',
 ];
 
+// boolean functions
+const booleanFunctions = ['eq', 'ne', 'lt', 'le', 'gt', 'ge'];
+
 // built-in functions for Go templates
-const builtinFunctions = [
+export const builtinFunctions = [
   'and',
   'call',
   'html',
@@ -41,13 +44,11 @@ const builtinFunctions = [
   'printf',
   'println',
   'urlquery',
+  ...booleanFunctions,
 ];
 
-// boolean functions
-const booleanFunctions = ['eq', 'ne', 'lt', 'le', 'gt', 'ge'];
-
 // Go template keywords
-const keywords = ['define', 'if', 'else', 'end', 'range', 'break', 'continue', 'template', 'block', 'with'];
+export const keywords = ['define', 'if', 'else', 'end', 'range', 'break', 'continue', 'template', 'block', 'with'];
 
 // Monarch language definition, see https://microsoft.github.io/monaco-editor/monarch.html
 // check https://github.com/microsoft/monaco-editor/blob/main/src/basic-languages/go/go.ts for an example
@@ -55,7 +56,7 @@ const keywords = ['define', 'if', 'else', 'end', 'range', 'break', 'continue', '
 export const language: monacoType.languages.IMonarchLanguage = {
   defaultToken: '', // change this to "invalid" to find tokens that were never matched
   keywords: keywords,
-  functions: [...builtinFunctions, ...booleanFunctions, ...availableAlertManagerFunctions],
+  functions: [...builtinFunctions, ...availableAlertManagerFunctions],
   operators: ['|'],
   tokenizer: {
     root: [
diff --git a/public/app/features/alerting/unified/components/rules/RulesTable.tsx b/public/app/features/alerting/unified/components/rules/RulesTable.tsx
index a6676beccb8..6bc2dd398bb 100644
--- a/public/app/features/alerting/unified/components/rules/RulesTable.tsx
+++ b/public/app/features/alerting/unified/components/rules/RulesTable.tsx
@@ -13,6 +13,7 @@ import { DynamicTable, DynamicTableColumnProps, DynamicTableItemProps } from '..
 import { DynamicTableWithGuidelines } from '../DynamicTableWithGuidelines';
 import { ProvisioningBadge } from '../Provisioning';
 import { RuleLocation } from '../RuleLocation';
+import { Tokenize } from '../Tokenize';
 
 import { RuleDetails } from './RuleDetails';
 import { RuleHealth } from './RuleHealth';
@@ -160,7 +161,9 @@ function useColumns(showSummaryColumn: boolean, showGroupColumn: boolean) {
         id: 'summary',
         label: 'Summary',
         // eslint-disable-next-line react/display-name
-        renderCell: ({ data: rule }) => rule.annotations[Annotation.summary] ?? '',
+        renderCell: ({ data: rule }) => {
+          return <Tokenize input={rule.annotations[Annotation.summary] ?? ''} />;
+        },
         size: 5,
       });
     }