diff --git a/public/app/features/datasources/components/picker/DataSourceDropdown.test.tsx b/public/app/features/datasources/components/picker/DataSourceDropdown.test.tsx
index 33cb862eb13..4ba217a3e2f 100644
--- a/public/app/features/datasources/components/picker/DataSourceDropdown.test.tsx
+++ b/public/app/features/datasources/components/picker/DataSourceDropdown.test.tsx
@@ -8,7 +8,7 @@ import { ModalRoot, ModalsProvider } from '@grafana/ui';
 import config from 'app/core/config';
 import { defaultFileUploadQuery } from 'app/plugins/datasource/grafana/types';
 
-import { DataSourceDropdown } from './DataSourceDropdown';
+import { DataSourceDropdown, DataSourceDropdownProps } from './DataSourceDropdown';
 import * as utils from './utils';
 
 const pluginMetaInfo: PluginMetaInfo = {
@@ -44,14 +44,8 @@ const MockDSBuiltIn = createDS('mock.datasource.builtin', 3, true);
 
 const mockDSList = [mockDS1, mockDS2, MockDSBuiltIn];
 
-const setup = (onChange = () => {}, current = mockDS1.name) => {
-  const props = { onChange, current };
-  window.HTMLElement.prototype.scrollIntoView = jest.fn();
-  return render(<DataSourceDropdown {...props}></DataSourceDropdown>);
-};
-
-async function setupOpenDropdown(user: UserEvent, onChange?: () => void, current?: string) {
-  const dropdown = setup(onChange, current);
+async function setupOpenDropdown(user: UserEvent, props: DataSourceDropdownProps) {
+  const dropdown = render(<DataSourceDropdown {...props}></DataSourceDropdown>);
   const searchBox = dropdown.container.querySelector('input');
   expect(searchBox).toBeInTheDocument();
   await user.click(searchBox!);
@@ -87,6 +81,10 @@ jest.mock('../../hooks', () => {
   };
 });
 
+beforeAll(() => {
+  window.HTMLElement.prototype.scrollIntoView = jest.fn();
+});
+
 const getListMock = jest.fn();
 const getInstanceSettingsMock = jest.fn();
 beforeEach(() => {
@@ -96,7 +94,7 @@ beforeEach(() => {
 
 describe('DataSourceDropdown', () => {
   it('should render', () => {
-    expect(() => setup()).not.toThrow();
+    expect(() => render(<DataSourceDropdown onChange={jest.fn()}></DataSourceDropdown>)).not.toThrow();
   });
 
   describe('configuration', () => {
@@ -121,7 +119,6 @@ describe('DataSourceDropdown', () => {
         current: mockDS1.name,
         ...filters,
       };
-      window.HTMLElement.prototype.scrollIntoView = jest.fn();
       const dropdown = render(<DataSourceDropdown {...props}></DataSourceDropdown>);
 
       const searchBox = dropdown.container.querySelector('input');
@@ -130,40 +127,74 @@ describe('DataSourceDropdown', () => {
       expect(getListMock.mock.lastCall[0]).toEqual(filters);
     });
 
+    it('should dispaly the current selected DS in the selector', async () => {
+      getInstanceSettingsMock.mockReturnValue(mockDS2);
+      render(<DataSourceDropdown onChange={jest.fn()} current={mockDS2}></DataSourceDropdown>);
+      expect(screen.getByTestId('Select a data source')).toHaveAttribute('placeholder', mockDS2.name);
+      expect(screen.getByAltText(`${mockDS2.meta.name} logo`)).toBeVisible();
+    });
+
     it('should display the current ds on top', async () => {
       //Mock ds is set as current, it appears on top
       getInstanceSettingsMock.mockReturnValue(mockDS1);
-      await setupOpenDropdown(user, jest.fn(), mockDS1.name);
+      await setupOpenDropdown(user, { onChange: jest.fn(), current: mockDS1.name });
       let cards = await screen.findAllByTestId('data-source-card');
       expect(await findByText(cards[0], mockDS1.name, { selector: 'span' })).toBeInTheDocument();
 
       //xMock ds is set as current, it appears on top
       getInstanceSettingsMock.mockReturnValue(mockDS2);
-      await setupOpenDropdown(user, jest.fn(), mockDS2.name);
+      await setupOpenDropdown(user, { onChange: jest.fn(), current: mockDS2.name });
       cards = await screen.findAllByTestId('data-source-card');
       expect(await findByText(cards[0], mockDS2.name, { selector: 'span' })).toBeInTheDocument();
     });
 
+    it('should dispaly the default DS as selected when `current` is not set', async () => {
+      getInstanceSettingsMock.mockReturnValue(mockDS2);
+      render(<DataSourceDropdown onChange={jest.fn()} current={undefined}></DataSourceDropdown>);
+      expect(screen.getByTestId('Select a data source')).toHaveAttribute('placeholder', mockDS2.name);
+      expect(screen.getByAltText(`${mockDS2.meta.name} logo`)).toBeVisible();
+    });
+
     it('should get the sorting function using the correct parameters', async () => {
       //The actual sorting is tested in utils.test but let's make sure we're calling getDataSourceCompareFn with the correct parameters
       const spy = jest.spyOn(utils, 'getDataSourceCompareFn');
-      await setupOpenDropdown(user);
+      await setupOpenDropdown(user, { onChange: jest.fn(), current: mockDS1 });
 
       expect(spy.mock.lastCall).toEqual([mockDS1, [mockDS2.name], ['${foo}']]);
     });
+
+    it('should disable the dropdown when `disabled` is true', () => {
+      render(<DataSourceDropdown onChange={jest.fn()} disabled></DataSourceDropdown>);
+      expect(screen.getByTestId('Select a data source')).toBeDisabled();
+    });
+
+    it('should assign the correct `id` to the input element to pair it with a label', () => {
+      render(<DataSourceDropdown onChange={jest.fn()} inputId={'custom.input.id'}></DataSourceDropdown>);
+      expect(screen.getByTestId('Select a data source')).toHaveAttribute('id', 'custom.input.id');
+    });
+
+    it('should not set the default DS when setting `noDefault` to true and `current` is not provided', () => {
+      render(<DataSourceDropdown onChange={jest.fn()} current={null} noDefault></DataSourceDropdown>);
+      getListMock.mockClear();
+      getInstanceSettingsMock.mockClear();
+      // Doesn't try to get the default DS
+      expect(getListMock).not.toBeCalled();
+      expect(getInstanceSettingsMock).not.toBeCalled();
+      expect(screen.getByTestId('Select a data source')).toHaveAttribute('placeholder', 'Select a data source');
+    });
   });
 
   describe('interactions', () => {
     const user = userEvent.setup();
 
     it('should open when clicked', async () => {
-      await setupOpenDropdown(user);
+      await setupOpenDropdown(user, { onChange: jest.fn() });
       expect(await screen.findByText(mockDS1.name, { selector: 'span' })).toBeInTheDocument();
     });
 
     it('should call onChange when a data source is clicked', async () => {
       const onChange = jest.fn();
-      await setupOpenDropdown(user, onChange);
+      await setupOpenDropdown(user, { onChange });
 
       await user.click(await screen.findByText(mockDS2.name, { selector: 'span' }));
       expect(onChange.mock.lastCall[0]['name']).toEqual(mockDS2.name);
@@ -172,7 +203,7 @@ describe('DataSourceDropdown', () => {
 
     it('should push recently used datasources when a data source is clicked', async () => {
       const onChange = jest.fn();
-      await setupOpenDropdown(user, onChange);
+      await setupOpenDropdown(user, { onChange });
 
       await user.click(await screen.findByText(mockDS2.name, { selector: 'span' }));
       expect(pushRecentlyUsedDataSourceMock.mock.lastCall[0]).toEqual(mockDS2);
@@ -180,7 +211,7 @@ describe('DataSourceDropdown', () => {
 
     it('should be navigatable by keyboard', async () => {
       const onChange = jest.fn();
-      await setupOpenDropdown(user, onChange);
+      await setupOpenDropdown(user, { onChange });
 
       await user.keyboard('[ArrowDown]');
       //Arrow down, second item is selected
@@ -202,7 +233,7 @@ describe('DataSourceDropdown', () => {
     });
 
     it('should be searchable', async () => {
-      await setupOpenDropdown(user);
+      await setupOpenDropdown(user, { onChange: jest.fn() });
 
       await user.keyboard(mockDS2.name); //Search for xMockDS
 
@@ -220,7 +251,7 @@ describe('DataSourceDropdown', () => {
     it('should call onChange with the default query when add csv is clicked', async () => {
       config.featureToggles.editPanelCSVDragAndDrop = true;
       const onChange = jest.fn();
-      await setupOpenDropdown(user, onChange);
+      await setupOpenDropdown(user, { onChange });
 
       await user.click(await screen.findByText('Add csv or spreadsheet'));
 
@@ -231,7 +262,6 @@ describe('DataSourceDropdown', () => {
 
     it('should open the modal when open advanced is clicked', async () => {
       const props = { onChange: jest.fn(), current: mockDS1.name };
-      window.HTMLElement.prototype.scrollIntoView = jest.fn();
       render(
         <ModalsProvider>
           <DataSourceDropdown {...props}></DataSourceDropdown>
diff --git a/public/app/features/datasources/components/picker/DataSourceDropdown.tsx b/public/app/features/datasources/components/picker/DataSourceDropdown.tsx
index 1faef407014..95dec73300c 100644
--- a/public/app/features/datasources/components/picker/DataSourceDropdown.tsx
+++ b/public/app/features/datasources/components/picker/DataSourceDropdown.tsx
@@ -3,11 +3,12 @@ import { useDialog } from '@react-aria/dialog';
 import { useOverlay } from '@react-aria/overlays';
 import React, { useCallback, useEffect, useRef, useState } from 'react';
 import { usePopper } from 'react-popper';
+import { Observable } from 'rxjs';
 
 import { DataSourceInstanceSettings, GrafanaTheme2 } from '@grafana/data';
 import { selectors } from '@grafana/e2e-selectors';
 import { reportInteraction } from '@grafana/runtime';
-import { DataQuery, DataSourceJsonData } from '@grafana/schema';
+import { DataQuery, DataSourceJsonData, DataSourceRef } from '@grafana/schema';
 import { Button, CustomScrollbar, Icon, Input, ModalsController, Portal, useStyles2 } from '@grafana/ui';
 import config from 'app/core/config';
 import { useKeyNavigationListener } from 'app/features/search/hooks/useSearchKeyboardSelection';
@@ -19,7 +20,6 @@ import { DataSourceList } from './DataSourceList';
 import { DataSourceLogo, DataSourceLogoPlaceHolder } from './DataSourceLogo';
 import { DataSourceModal } from './DataSourceModal';
 import { applyMaxSize, maxSize } from './popperModifiers';
-import { PickerContentProps, DataSourceDropdownProps } from './types';
 import { dataSourceLabel, matchDataSourceWithSearch } from './utils';
 
 const INTERACTION_EVENT_NAME = 'dashboards_dspicker_clicked';
@@ -31,8 +31,40 @@ const INTERACTION_ITEM = {
   CONFIG_NEW_DS_EMPTY_STATE: 'config_new_ds_empty_state',
 };
 
+export interface DataSourceDropdownProps {
+  onChange: (ds: DataSourceInstanceSettings<DataSourceJsonData>, defaultQueries?: DataQuery[] | GrafanaQuery[]) => void;
+  current?: DataSourceInstanceSettings<DataSourceJsonData> | string | DataSourceRef | null | undefined;
+  recentlyUsed?: string[];
+  hideTextValue?: boolean;
+  width?: number;
+  inputId?: string;
+  noDefault?: boolean;
+  disabled?: boolean;
+
+  // DS filters
+  tracing?: boolean;
+  mixed?: boolean;
+  dashboard?: boolean;
+  metrics?: boolean;
+  type?: string | string[];
+  annotations?: boolean;
+  variables?: boolean;
+  alerting?: boolean;
+  pluginId?: string;
+  logs?: boolean;
+}
+
 export function DataSourceDropdown(props: DataSourceDropdownProps) {
-  const { current, onChange, hideTextValue, width, ...restProps } = props;
+  const {
+    current,
+    onChange,
+    hideTextValue = false,
+    width,
+    inputId,
+    noDefault = false,
+    disabled = false,
+    ...restProps
+  } = props;
 
   const [isOpen, setOpen] = useState(false);
   const [inputHasFocus, setInputHasFocus] = useState(false);
@@ -44,6 +76,10 @@ export function DataSourceDropdown(props: DataSourceDropdownProps) {
     setOpen(true);
     markerElement?.focus();
   };
+  const currentDataSourceInstanceSettings = useDatasource(current);
+  const currentValue = Boolean(!current && noDefault) ? undefined : currentDataSourceInstanceSettings;
+  const prefixIcon =
+    filterTerm && isOpen ? <DataSourceLogoPlaceHolder /> : <DataSourceLogo dataSource={currentValue} />;
 
   const { onKeyDown, keyboardEvents } = useKeyNavigationListener();
 
@@ -79,8 +115,6 @@ export function DataSourceDropdown(props: DataSourceDropdownProps) {
     onChange(grafanaDS, [defaultFileUploadQuery]);
   };
 
-  const currentDataSourceInstanceSettings = useDatasource(current);
-
   const popper = usePopper(markerElement, selectorElement, {
     placement: 'bottom-start',
     modifiers: [
@@ -114,25 +148,20 @@ export function DataSourceDropdown(props: DataSourceDropdownProps) {
   );
   const { dialogProps } = useDialog({}, ref);
 
-  const styles = useStyles2(getStylesDropdown);
+  const styles = useStyles2((theme: GrafanaTheme2) => getStylesDropdown(theme, props));
 
   return (
-    <div className={styles.container} data-testid={selectors.components.DataSourcePicker.container} style={{ width }}>
+    <div className={styles.container} data-testid={selectors.components.DataSourcePicker.container}>
       {/* This clickable div is just extending the clickable area on the input element to include the prefix and suffix. */}
       {/* eslint-disable-next-line jsx-a11y/click-events-have-key-events, jsx-a11y/no-static-element-interactions */}
       <div className={styles.trigger} onClick={openDropdown}>
         <Input
+          id={inputId || 'data-source-picker'}
           className={inputHasFocus ? undefined : styles.input}
           data-testid={selectors.components.DataSourcePicker.inputV2}
-          prefix={
-            filterTerm && isOpen ? (
-              <DataSourceLogoPlaceHolder />
-            ) : (
-              <DataSourceLogo dataSource={currentDataSourceInstanceSettings} />
-            )
-          }
+          prefix={currentValue ? prefixIcon : undefined}
           suffix={<Icon name={isOpen ? 'search' : 'angle-down'} />}
-          placeholder={hideTextValue ? '' : dataSourceLabel(currentDataSourceInstanceSettings)}
+          placeholder={hideTextValue ? '' : dataSourceLabel(currentValue)}
           onClick={openDropdown}
           onFocus={() => {
             setInputHasFocus(true);
@@ -148,6 +177,7 @@ export function DataSourceDropdown(props: DataSourceDropdownProps) {
             setFilterTerm(e.currentTarget.value);
           }}
           ref={setMarkerElement}
+          disabled={disabled}
         ></Input>
       </div>
       {isOpen ? (
@@ -172,7 +202,7 @@ export function DataSourceDropdown(props: DataSourceDropdownProps) {
                 onChange(ds, defaultQueries);
               }}
               onClose={onClose}
-              current={currentDataSourceInstanceSettings}
+              current={currentValue}
               style={popper.styles.popper}
               ref={setSelectorElement}
               onClickAddCSV={onClickAddCSV}
@@ -187,25 +217,34 @@ export function DataSourceDropdown(props: DataSourceDropdownProps) {
   );
 }
 
-function getStylesDropdown(theme: GrafanaTheme2) {
+function getStylesDropdown(theme: GrafanaTheme2, props: DataSourceDropdownProps) {
   return {
     container: css`
       position: relative;
+      cursor: ${props.disabled ? 'not-allowed' : 'pointer'};
+      width: ${theme.spacing(props.width || 'auto')};
     `,
     trigger: css`
       cursor: pointer;
+      ${props.disabled && `pointer-events: none;`}
     `,
     input: css`
-      input {
-        cursor: pointer;
-      }
       input::placeholder {
-        color: ${theme.colors.text.primary};
+        color: ${props.disabled ? theme.colors.action.disabledText : theme.colors.text.primary};
       }
     `,
   };
 }
 
+export interface PickerContentProps extends DataSourceDropdownProps {
+  onClickAddCSV?: () => void;
+  keyboardEvents: Observable<React.KeyboardEvent>;
+  style: React.CSSProperties;
+  filterTerm?: string;
+  onClose: () => void;
+  onDismiss: () => void;
+}
+
 const PickerContent = React.forwardRef<HTMLDivElement, PickerContentProps>((props, ref) => {
   const { filterTerm, onChange, onClose, onClickAddCSV, current } = props;
   const changeCallback = useCallback(
diff --git a/public/app/features/datasources/components/picker/DataSourceModal.tsx b/public/app/features/datasources/components/picker/DataSourceModal.tsx
index 3ec15b0b072..013d3b45a47 100644
--- a/public/app/features/datasources/components/picker/DataSourceModal.tsx
+++ b/public/app/features/datasources/components/picker/DataSourceModal.tsx
@@ -40,9 +40,19 @@ interface DataSourceModalProps {
   current: DataSourceRef | string | null | undefined;
   onDismiss: () => void;
   recentlyUsed?: string[];
-  dashboard?: boolean;
-  mixed?: boolean;
   reportedInteractionFrom?: string;
+
+  // DS filters
+  tracing?: boolean;
+  mixed?: boolean;
+  dashboard?: boolean;
+  metrics?: boolean;
+  type?: string | string[];
+  annotations?: boolean;
+  variables?: boolean;
+  alerting?: boolean;
+  pluginId?: string;
+  logs?: boolean;
 }
 
 export function DataSourceModal({
diff --git a/public/app/features/datasources/components/picker/DataSourcePicker.tsx b/public/app/features/datasources/components/picker/DataSourcePicker.tsx
index b67a348a9a9..4c75756d497 100644
--- a/public/app/features/datasources/components/picker/DataSourcePicker.tsx
+++ b/public/app/features/datasources/components/picker/DataSourcePicker.tsx
@@ -6,8 +6,7 @@ import {
 } from '@grafana/runtime';
 import { config } from 'app/core/config';
 
-import { DataSourceDropdown } from './DataSourceDropdown';
-import { DataSourceDropdownProps } from './types';
+import { DataSourceDropdown, DataSourceDropdownProps } from './DataSourceDropdown';
 
 type DataSourcePickerProps = DeprecatedDataSourcePickerProps | DataSourceDropdownProps;
 
diff --git a/public/app/features/datasources/components/picker/popperModifiers.ts b/public/app/features/datasources/components/picker/popperModifiers.ts
index a4eeb2069c3..276df3227dc 100644
--- a/public/app/features/datasources/components/picker/popperModifiers.ts
+++ b/public/app/features/datasources/components/picker/popperModifiers.ts
@@ -31,8 +31,16 @@ export const applyMaxSize: Modifier<'applyMaxSize', {}> = {
   requires: ['maxSize'],
   fn({ state }: ModifierArguments<{}>) {
     const { height, width } = state.modifiersData.maxSize;
-    state.styles.popper.maxHeight = `${height - MODAL_MARGIN}px`;
-    state.styles.popper.minHeight = `${FLIP_THRESHOLD}px`;
-    state.styles.popper.maxWidth = width;
+
+    if (!state.styles.popper.maxHeight) {
+      state.styles.popper.maxHeight = `${height - MODAL_MARGIN}px`;
+    }
+    if (!state.styles.popper.minHeight) {
+      state.styles.popper.minHeight = `${FLIP_THRESHOLD}px`;
+    }
+
+    if (!state.styles.popper.maxWidth) {
+      state.styles.popper.maxWidth = width;
+    }
   },
 };
diff --git a/public/app/features/datasources/components/picker/types.ts b/public/app/features/datasources/components/picker/types.ts
deleted file mode 100644
index f83d6328c88..00000000000
--- a/public/app/features/datasources/components/picker/types.ts
+++ /dev/null
@@ -1,35 +0,0 @@
-import React from 'react';
-import { Observable } from 'rxjs';
-
-import { DataSourceInstanceSettings } from '@grafana/data';
-import { DataQuery, DataSourceJsonData, DataSourceRef } from '@grafana/schema';
-import { GrafanaQuery } from 'app/plugins/datasource/grafana/types';
-
-export interface DataSourceDropdownProps {
-  onChange: (ds: DataSourceInstanceSettings<DataSourceJsonData>, defaultQueries?: DataQuery[] | GrafanaQuery[]) => void;
-  current: DataSourceInstanceSettings<DataSourceJsonData> | string | DataSourceRef | null | undefined;
-  tracing?: boolean;
-  mixed?: boolean;
-  dashboard?: boolean;
-  metrics?: boolean;
-  type?: string | string[];
-  annotations?: boolean;
-  variables?: boolean;
-  alerting?: boolean;
-  pluginId?: string;
-  logs?: boolean;
-  recentlyUsed?: string[];
-  hideTextValue?: boolean;
-  width?: number;
-}
-
-export interface PickerContentProps extends DataSourceDropdownProps {
-  onClickAddCSV?: () => void;
-  keyboardEvents: Observable<React.KeyboardEvent>;
-  style: React.CSSProperties;
-  filterTerm?: string;
-  dashboard?: boolean;
-  mixed?: boolean;
-  onClose: () => void;
-  onDismiss: () => void;
-}
diff --git a/public/app/features/datasources/components/picker/utils.ts b/public/app/features/datasources/components/picker/utils.ts
index 16caea27c53..104c60b9a6d 100644
--- a/public/app/features/datasources/components/picker/utils.ts
+++ b/public/app/features/datasources/components/picker/utils.ts
@@ -20,7 +20,7 @@ export function dataSourceLabel(
   dataSource: DataSourceInstanceSettings<DataSourceJsonData> | string | DataSourceRef | null | undefined
 ) {
   if (!dataSource) {
-    return 'Unknown';
+    return 'Select a data source';
   }
 
   if (typeof dataSource === 'string') {
@@ -35,7 +35,7 @@ export function dataSourceLabel(
     return `${dataSource.uid} - not found`;
   }
 
-  return 'Unknown';
+  return 'Select a data source';
 }
 
 export function getDataSourceCompareFn(
diff --git a/public/app/features/datasources/hooks.ts b/public/app/features/datasources/hooks.ts
index 0960b8bcc06..54b6eeceb23 100644
--- a/public/app/features/datasources/hooks.ts
+++ b/public/app/features/datasources/hooks.ts
@@ -46,10 +46,6 @@ export function useDatasources(filters: GetDataSourceListFilters) {
 export function useDatasource(dataSource: string | DataSourceRef | DataSourceInstanceSettings | null | undefined) {
   const dataSourceSrv = getDataSourceSrv();
 
-  if (!dataSource) {
-    return undefined;
-  }
-
   if (typeof dataSource === 'string') {
     return dataSourceSrv.getInstanceSettings(dataSource);
   }