diff --git a/packages/grafana-runtime/package.json b/packages/grafana-runtime/package.json
index d183ba848d8..bec195852c0 100644
--- a/packages/grafana-runtime/package.json
+++ b/packages/grafana-runtime/package.json
@@ -39,6 +39,8 @@
     "@grafana/tsconfig": "^1.0.0-rc1",
     "@rollup/plugin-commonjs": "21.0.1",
     "@rollup/plugin-node-resolve": "13.0.6",
+    "@testing-library/react": "^12.1.2",
+    "@testing-library/user-event": "^13.5.0",
     "@types/angular": "1.6.56",
     "@types/history": "^4.7.8",
     "@types/jest": "27.0.2",
diff --git a/packages/grafana-runtime/src/components/DataSourcePicker.test.tsx b/packages/grafana-runtime/src/components/DataSourcePicker.test.tsx
new file mode 100644
index 00000000000..6f18fe2141a
--- /dev/null
+++ b/packages/grafana-runtime/src/components/DataSourcePicker.test.tsx
@@ -0,0 +1,27 @@
+import React from 'react';
+import { DataSourcePicker } from './DataSourcePicker';
+import { render } from '@testing-library/react';
+import userEvent from '@testing-library/user-event';
+
+jest.mock('../services/dataSourceSrv');
+
+describe('DataSourcePicker', () => {
+  describe('onClear', () => {
+    it('should call onClear when function is passed', async () => {
+      const onClear = jest.fn();
+      const select = render(<DataSourcePicker onClear={onClear} />);
+
+      const clearButton = select.getByLabelText('select-clear-value');
+      userEvent.click(clearButton);
+      expect(onClear).toHaveBeenCalled();
+    });
+
+    it('should not render clear button when no onClear function is passed', async () => {
+      const select = render(<DataSourcePicker />);
+
+      expect(() => {
+        select.getByLabelText('select-clear-value');
+      }).toThrowError();
+    });
+  });
+});
diff --git a/packages/grafana-runtime/src/components/DataSourcePicker.tsx b/packages/grafana-runtime/src/components/DataSourcePicker.tsx
index 68384b34f3d..8cba8f45f70 100644
--- a/packages/grafana-runtime/src/components/DataSourcePicker.tsx
+++ b/packages/grafana-runtime/src/components/DataSourcePicker.tsx
@@ -2,7 +2,7 @@
 import React, { PureComponent } from 'react';
 
 // Components
-import { HorizontalGroup, PluginSignatureBadge, Select, stylesFactory } from '@grafana/ui';
+import { ActionMeta, HorizontalGroup, PluginSignatureBadge, Select, stylesFactory } from '@grafana/ui';
 import {
   DataSourceInstanceSettings,
   DataSourceRef,
@@ -40,6 +40,7 @@ export interface DataSourcePickerProps {
   noDefault?: boolean;
   width?: number;
   filter?: (dataSource: DataSourceInstanceSettings) => boolean;
+  onClear?: () => void;
 }
 
 /**
@@ -80,7 +81,12 @@ export class DataSourcePicker extends PureComponent<DataSourcePickerProps, DataS
     }
   }
 
-  onChange = (item: SelectableValue<string>) => {
+  onChange = (item: SelectableValue<string>, actionMeta: ActionMeta) => {
+    if (actionMeta.action === 'clear' && this.props.onClear) {
+      this.props.onClear();
+      return;
+    }
+
     const dsSettings = this.dataSourceSrv.getInstanceSettings(item.value);
 
     if (dsSettings) {
@@ -142,11 +148,12 @@ export class DataSourcePicker extends PureComponent<DataSourcePickerProps, DataS
   }
 
   render() {
-    const { autoFocus, onBlur, openMenuOnFocus, placeholder, width } = this.props;
+    const { autoFocus, onBlur, onClear, openMenuOnFocus, placeholder, width } = this.props;
     const { error } = this.state;
     const options = this.getDataSourceOptions();
     const value = this.getCurrentValue();
     const styles = getStyles();
+    const isClearable = typeof onClear === 'function';
 
     return (
       <div aria-label={selectors.components.DataSourcePicker.container}>
@@ -156,7 +163,7 @@ export class DataSourcePicker extends PureComponent<DataSourcePickerProps, DataS
           menuShouldPortal
           className={styles.select}
           isMulti={false}
-          isClearable={false}
+          isClearable={isClearable}
           backspaceRemovesValue={false}
           onChange={this.onChange}
           options={options}
diff --git a/packages/grafana-runtime/src/services/__mocks__/dataSourceSrv.ts b/packages/grafana-runtime/src/services/__mocks__/dataSourceSrv.ts
new file mode 100644
index 00000000000..ee35c224792
--- /dev/null
+++ b/packages/grafana-runtime/src/services/__mocks__/dataSourceSrv.ts
@@ -0,0 +1,22 @@
+const ds1 = {
+  id: 1,
+  uid: 'c8eceabb-0275-4108-8f03-8f74faf4bf6d',
+  type: 'prometheus',
+  name: 'gdev-prometheus',
+  meta: {
+    info: {
+      logos: {
+        small: 'http://example.com/logo.png',
+      },
+    },
+  },
+  jsonData: {},
+  access: 'proxy',
+};
+
+export function getDataSourceSrv() {
+  return {
+    getList: () => [ds1],
+    getInstanceSettings: () => ds1,
+  };
+}
diff --git a/packages/grafana-ui/src/components/Select/SelectBase.test.tsx b/packages/grafana-ui/src/components/Select/SelectBase.test.tsx
index f2768833941..9530fa31657 100644
--- a/packages/grafana-ui/src/components/Select/SelectBase.test.tsx
+++ b/packages/grafana-ui/src/components/Select/SelectBase.test.tsx
@@ -202,10 +202,10 @@ describe('SelectBase', () => {
       expect(selectEl).toBeInTheDocument();
 
       await selectOptionInTest(selectEl, 'Option 2');
-      expect(spy).toHaveBeenCalledWith({
-        label: 'Option 2',
-        value: 2,
-      });
+      expect(spy).toHaveBeenCalledWith(
+        { label: 'Option 2', value: 2 },
+        { action: 'select-option', name: undefined, option: undefined }
+      );
     });
   });
 });
diff --git a/packages/grafana-ui/src/components/Select/SelectBase.tsx b/packages/grafana-ui/src/components/Select/SelectBase.tsx
index 99406e8bae3..18c5d853fe6 100644
--- a/packages/grafana-ui/src/components/Select/SelectBase.tsx
+++ b/packages/grafana-ui/src/components/Select/SelectBase.tsx
@@ -20,7 +20,7 @@ import { MultiValueContainer, MultiValueRemove } from './MultiValue';
 import { useTheme2 } from '../../themes';
 import { getSelectStyles } from './getSelectStyles';
 import { cleanValue, findSelectedValue } from './utils';
-import { SelectBaseProps, SelectValue } from './types';
+import { ActionMeta, SelectBaseProps, SelectValue } from './types';
 import { deprecationWarning } from '@grafana/data';
 
 interface ExtraValuesIndicatorProps {
@@ -146,11 +146,11 @@ export function SelectBase<T>({
   const theme = useTheme2();
   const styles = getSelectStyles(theme);
   const onChangeWithEmpty = useCallback(
-    (value: SelectValue<T>) => {
+    (value: SelectValue<T>, action: ActionMeta) => {
       if (isMulti && (value === undefined || value === null)) {
-        return onChange([]);
+        return onChange([], action);
       }
-      onChange(value);
+      onChange(value, action);
     },
     [isMulti, onChange]
   );
diff --git a/packages/grafana-ui/src/components/Select/types.ts b/packages/grafana-ui/src/components/Select/types.ts
index cf56c2c57f4..e9ca7b9a5f1 100644
--- a/packages/grafana-ui/src/components/Select/types.ts
+++ b/packages/grafana-ui/src/components/Select/types.ts
@@ -1,7 +1,9 @@
 import { SelectableValue } from '@grafana/data';
 import React from 'react';
+import { ActionMeta as SelectActionMeta } from 'react-select';
 
 export type SelectValue<T> = T | SelectableValue<T> | T[] | Array<SelectableValue<T>>;
+export type ActionMeta = SelectActionMeta<{}>;
 export type InputActionMeta = {
   action: 'set-value' | 'input-change' | 'input-blur' | 'menu-close';
 };
@@ -52,7 +54,7 @@ export interface SelectCommonProps<T> {
   /** The message to display when no options could be found */
   noOptionsMessage?: string;
   onBlur?: () => void;
-  onChange: (value: SelectableValue<T>) => {} | void;
+  onChange: (value: SelectableValue<T>, actionMeta: ActionMeta) => {} | void;
   onCloseMenu?: () => void;
   /** allowCustomValue must be enabled. Function decides what to do with that custom value. */
   onCreateOption?: (value: string) => void;
diff --git a/packages/grafana-ui/src/types/index.ts b/packages/grafana-ui/src/types/index.ts
index 3914ae5b02c..fc81391c049 100644
--- a/packages/grafana-ui/src/types/index.ts
+++ b/packages/grafana-ui/src/types/index.ts
@@ -4,3 +4,4 @@ export * from './completion';
 export * from './storybook';
 export * from './forms';
 export * from './icon';
+export * from './select';
diff --git a/packages/grafana-ui/src/types/select.ts b/packages/grafana-ui/src/types/select.ts
new file mode 100644
index 00000000000..2186bd0ea7c
--- /dev/null
+++ b/packages/grafana-ui/src/types/select.ts
@@ -0,0 +1 @@
+export { ActionMeta } from '../components/Select/types';
diff --git a/public/app/core/components/Select/MetricSelect.test.tsx b/public/app/core/components/Select/MetricSelect.test.tsx
index 252837d4cd6..fef81075285 100644
--- a/public/app/core/components/Select/MetricSelect.test.tsx
+++ b/public/app/core/components/Select/MetricSelect.test.tsx
@@ -36,7 +36,7 @@ describe('MetricSelect', () => {
       const wrapper = shallow(<MetricSelect {...props} />);
       const select = wrapper.find(Select);
 
-      select.props().onChange({ value: 'foo' });
+      select.props().onChange({ value: 'foo' }, { action: 'select-option', option: undefined });
 
       expect(select.props().noOptionsMessage).toBeDefined();
 
diff --git a/public/app/features/alerting/unified/components/rules/RulesFilter.tsx b/public/app/features/alerting/unified/components/rules/RulesFilter.tsx
index e110f4eff02..c6fbf27ef10 100644
--- a/public/app/features/alerting/unified/components/rules/RulesFilter.tsx
+++ b/public/app/features/alerting/unified/components/rules/RulesFilter.tsx
@@ -53,6 +53,10 @@ const RulesFilter = () => {
     setQueryParams({ dataSource: dataSourceValue.name });
   };
 
+  const clearDataSource = () => {
+    setQueryParams({ dataSource: null });
+  };
+
   const handleQueryStringChange = debounce((e: FormEvent<HTMLInputElement>) => {
     const target = e.target as HTMLInputElement;
     setQueryParams({ queryString: target.value || null });
@@ -84,13 +88,15 @@ const RulesFilter = () => {
   return (
     <div className={styles.container}>
       <div className={styles.inputWidth}>
-        <Label>Select data source</Label>
+        <Label>Search by data source</Label>
         <DataSourcePicker
           key={dataSourceKey}
           alerting
           noDefault
+          placeholder="All data sources"
           current={dataSource}
           onChange={handleDataSourceChange}
+          onClear={clearDataSource}
         />
       </div>
       <div className={cx(styles.flexRow, styles.spaceBetween)}>
diff --git a/public/app/plugins/datasource/elasticsearch/components/hooks/useCreatableSelectPersistedBehaviour.test.tsx b/public/app/plugins/datasource/elasticsearch/components/hooks/useCreatableSelectPersistedBehaviour.test.tsx
index 26aea76ad40..8b5f9cb5ede 100644
--- a/public/app/plugins/datasource/elasticsearch/components/hooks/useCreatableSelectPersistedBehaviour.test.tsx
+++ b/public/app/plugins/datasource/elasticsearch/components/hooks/useCreatableSelectPersistedBehaviour.test.tsx
@@ -74,7 +74,10 @@ describe('useCreatableSelectPersistedBehaviour', () => {
 
     // Should call onChange when selecting an already existing option
     userEvent.click(option1);
-    expect(onChange).toHaveBeenLastCalledWith({ value: 'Option 1', label: 'Option 1' });
+    expect(onChange).toHaveBeenLastCalledWith(
+      { value: 'Option 1', label: 'Option 1' },
+      { action: 'select-option', name: undefined, option: undefined }
+    );
 
     userEvent.click(input);
 
diff --git a/public/app/plugins/datasource/elasticsearch/configuration/ElasticDetails.test.tsx b/public/app/plugins/datasource/elasticsearch/configuration/ElasticDetails.test.tsx
index fa6044ea076..3b5da1fe4b4 100644
--- a/public/app/plugins/datasource/elasticsearch/configuration/ElasticDetails.test.tsx
+++ b/public/app/plugins/datasource/elasticsearch/configuration/ElasticDetails.test.tsx
@@ -27,7 +27,7 @@ describe('ElasticDetails', () => {
     const onChangeMock = jest.fn();
     const wrapper = mount(<ElasticDetails onChange={onChangeMock} value={createDefaultConfigOptions()} />);
     const selectEl = wrapper.find({ label: 'Pattern' }).find(Select);
-    selectEl.props().onChange({ value: 'Daily', label: 'Daily' });
+    selectEl.props().onChange({ value: 'Daily', label: 'Daily' }, { action: 'select-option', option: undefined });
 
     expect(onChangeMock.mock.calls[0][0].jsonData.interval).toBe('Daily');
     expect(onChangeMock.mock.calls[0][0].database).toBe('[logstash-]YYYY.MM.DD');
@@ -40,7 +40,7 @@ describe('ElasticDetails', () => {
     const wrapper = mount(<ElasticDetails onChange={onChangeMock} value={options} />);
 
     const selectEl = wrapper.find({ label: 'Pattern' }).find(Select);
-    selectEl.props().onChange({ value: 'Monthly', label: 'Monthly' });
+    selectEl.props().onChange({ value: 'Monthly', label: 'Monthly' }, { action: 'select-option', option: undefined });
 
     expect(onChangeMock.mock.calls[0][0].jsonData.interval).toBe('Monthly');
     expect(onChangeMock.mock.calls[0][0].database).toBe('[logstash-]YYYY.MM');
@@ -78,7 +78,12 @@ describe('ElasticDetails', () => {
         });
 
         const selectEl = wrapper.find({ label: 'Version' }).find(Select);
-        selectEl.props().onChange({ value: tc.version, label: tc.version.toString() });
+        selectEl
+          .props()
+          .onChange(
+            { value: tc.version, label: tc.version.toString() },
+            { action: 'select-option', option: undefined }
+          );
 
         expect(last(onChangeMock.mock.calls)[0].jsonData.maxConcurrentShardRequests).toBe(
           tc.expectedMaxConcurrentShardRequests
diff --git a/yarn.lock b/yarn.lock
index 8817270a48c..e9ca85d928e 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -2508,6 +2508,8 @@ __metadata:
     "@rollup/plugin-commonjs": 21.0.1
     "@rollup/plugin-node-resolve": 13.0.6
     "@sentry/browser": 5.25.0
+    "@testing-library/react": ^12.1.2
+    "@testing-library/user-event": ^13.5.0
     "@types/angular": 1.6.56
     "@types/history": ^4.7.8
     "@types/jest": 27.0.2
@@ -6845,7 +6847,7 @@ __metadata:
   languageName: node
   linkType: hard
 
-"@testing-library/react@npm:12.1.2":
+"@testing-library/react@npm:12.1.2, @testing-library/react@npm:^12.1.2":
   version: 12.1.2
   resolution: "@testing-library/react@npm:12.1.2"
   dependencies:
@@ -6869,6 +6871,17 @@ __metadata:
   languageName: node
   linkType: hard
 
+"@testing-library/user-event@npm:^13.5.0":
+  version: 13.5.0
+  resolution: "@testing-library/user-event@npm:13.5.0"
+  dependencies:
+    "@babel/runtime": ^7.12.5
+  peerDependencies:
+    "@testing-library/dom": ">=7.21.4"
+  checksum: 16319de685fbb7008f1ba667928f458b2d08196918002daca56996de80ef35e6d9de26e9e1ece7d00a004692b95a597cf9142fff0dc53f2f51606a776584f549
+  languageName: node
+  linkType: hard
+
 "@tootallnate/once@npm:1":
   version: 1.1.2
   resolution: "@tootallnate/once@npm:1.1.2"