diff --git a/packages/grafana-data/src/types/pluginExtensions.ts b/packages/grafana-data/src/types/pluginExtensions.ts
index 919ded3d92a..e64bf16cfdb 100644
--- a/packages/grafana-data/src/types/pluginExtensions.ts
+++ b/packages/grafana-data/src/types/pluginExtensions.ts
@@ -174,6 +174,11 @@ export type PluginExtensionEventHelpers<Context extends object = object> = {
    * @param props The props to be passed to the component.
    */
   openSidebar: (componentTitle: string, props?: Record<string, unknown>) => void;
+  /**
+   * @internal
+   * Closes the extension sidebar.
+   */
+  closeSidebar: () => void;
 };
 
 // Extension Points & Contexts
diff --git a/public/app/core/components/AppChrome/ExtensionSidebar/ExtensionSidebarProvider.test.tsx b/public/app/core/components/AppChrome/ExtensionSidebar/ExtensionSidebarProvider.test.tsx
index b45be60bb2f..61651cabb84 100644
--- a/public/app/core/components/AppChrome/ExtensionSidebar/ExtensionSidebarProvider.test.tsx
+++ b/public/app/core/components/AppChrome/ExtensionSidebar/ExtensionSidebarProvider.test.tsx
@@ -3,7 +3,7 @@ import { render, screen, act } from '@testing-library/react';
 import { store, EventBusSrv, EventBus } from '@grafana/data';
 import { config, getAppEvents, setAppEvents, locationService } from '@grafana/runtime';
 import { getExtensionPointPluginMeta } from 'app/features/plugins/extensions/utils';
-import { OpenExtensionSidebarEvent } from 'app/types/events';
+import { OpenExtensionSidebarEvent, CloseExtensionSidebarEvent } from 'app/types/events';
 
 import {
   ExtensionSidebarContextProvider,
@@ -249,7 +249,7 @@ describe('ExtensionSidebarProvider', () => {
     expect(screen.getByTestId('plugin-ids')).toHaveTextContent(permittedPluginMeta.pluginId);
   });
 
-  it('should subscribe to OpenExtensionSidebarEvent when feature is enabled', async () => {
+  it('should subscribe to OpenExtensionSidebarEvent and CloseExtensionSidebarEvent when feature is enabled', async () => {
     render(
       <ExtensionSidebarContextProvider>
         <TestComponent />
@@ -257,9 +257,10 @@ describe('ExtensionSidebarProvider', () => {
     );
 
     expect(subscribeSpy).toHaveBeenCalledWith(OpenExtensionSidebarEvent, expect.any(Function));
+    expect(subscribeSpy).toHaveBeenCalledWith(CloseExtensionSidebarEvent, expect.any(Function));
   });
 
-  it('should not subscribe to OpenExtensionSidebarEvent when feature is disabled', () => {
+  it('should not subscribe to OpenExtensionSidebarEvent or CloseExtensionSidebarEvent when feature is disabled', () => {
     jest.replaceProperty(config.featureToggles, 'extensionSidebar', false);
 
     render(
@@ -341,12 +342,58 @@ describe('ExtensionSidebarProvider', () => {
     expect(screen.getByTestId('is-open')).toHaveTextContent('false');
   });
 
-  it('should unsubscribe from OpenExtensionSidebarEvent on unmount', () => {
-    const unsubscribeMock = jest.fn();
-    subscribeSpy.mockReturnValue({
-      unsubscribe: unsubscribeMock,
+  it('should close sidebar when receiving a CloseExtensionSidebarEvent', () => {
+    const componentId = getComponentIdFromComponentMeta(mockPluginMeta.pluginId, mockComponent);
+
+    const TestComponentWithProps = () => {
+      const context = useExtensionSidebarContext();
+      return (
+        <div>
+          <div data-testid="is-open">{context.isOpen.toString()}</div>
+          <div data-testid="docked-component-id">{context.dockedComponentId || 'undefined'}</div>
+          <button onClick={() => context.setDockedComponentId(componentId)}>Open Sidebar</button>
+        </div>
+      );
+    };
+
+    render(
+      <ExtensionSidebarContextProvider>
+        <TestComponentWithProps />
+      </ExtensionSidebarContextProvider>
+    );
+
+    // First open the sidebar manually
+    act(() => {
+      screen.getByText('Open Sidebar').click();
     });
 
+    expect(screen.getByTestId('is-open')).toHaveTextContent('true');
+    expect(screen.getByTestId('docked-component-id')).toHaveTextContent(componentId);
+
+    // Now test the close event
+    act(() => {
+      // Find the CloseExtensionSidebarEvent subscriber
+      const closeEventSubscriberCall = subscribeSpy.mock.calls.find((call) => call[0] === CloseExtensionSidebarEvent);
+
+      expect(closeEventSubscriberCall).toBeDefined();
+      const [, subscriberFn] = closeEventSubscriberCall!;
+
+      // Call the close event handler
+      subscriberFn(new CloseExtensionSidebarEvent());
+    });
+
+    expect(screen.getByTestId('is-open')).toHaveTextContent('false');
+    expect(screen.getByTestId('docked-component-id')).toHaveTextContent('undefined');
+  });
+
+  it('should unsubscribe from both OpenExtensionSidebarEvent and CloseExtensionSidebarEvent on unmount', () => {
+    const unsubscribeMocks = [jest.fn(), jest.fn()];
+    let callIndex = 0;
+
+    subscribeSpy.mockImplementation(() => ({
+      unsubscribe: unsubscribeMocks[callIndex++],
+    }));
+
     const { unmount } = render(
       <ExtensionSidebarContextProvider>
         <TestComponent />
@@ -354,7 +401,10 @@ describe('ExtensionSidebarProvider', () => {
     );
 
     unmount();
-    expect(unsubscribeMock).toHaveBeenCalled();
+
+    // Both event subscriptions should be unsubscribed
+    expect(unsubscribeMocks[0]).toHaveBeenCalled();
+    expect(unsubscribeMocks[1]).toHaveBeenCalled();
   });
 
   it('should subscribe to location service observable', () => {
diff --git a/public/app/core/components/AppChrome/ExtensionSidebar/ExtensionSidebarProvider.tsx b/public/app/core/components/AppChrome/ExtensionSidebar/ExtensionSidebarProvider.tsx
index e1618f113cb..84484eab290 100644
--- a/public/app/core/components/AppChrome/ExtensionSidebar/ExtensionSidebarProvider.tsx
+++ b/public/app/core/components/AppChrome/ExtensionSidebar/ExtensionSidebarProvider.tsx
@@ -4,7 +4,7 @@ import { useLocalStorage } from 'react-use';
 import { PluginExtensionPoints, store, type ExtensionInfo } from '@grafana/data';
 import { config, getAppEvents, reportInteraction, usePluginLinks, locationService } from '@grafana/runtime';
 import { ExtensionPointPluginMeta, getExtensionPointPluginMeta } from 'app/features/plugins/extensions/utils';
-import { OpenExtensionSidebarEvent } from 'app/types/events';
+import { CloseExtensionSidebarEvent, OpenExtensionSidebarEvent } from 'app/types/events';
 
 import { DEFAULT_EXTENSION_SIDEBAR_WIDTH } from './ExtensionSidebar';
 
@@ -173,7 +173,10 @@ export const ExtensionSidebarContextProvider = ({ children }: ExtensionSidebarCo
       if (
         event.payload.pluginId &&
         event.payload.componentTitle &&
-        PERMITTED_EXTENSION_SIDEBAR_PLUGINS.includes(event.payload.pluginId)
+        PERMITTED_EXTENSION_SIDEBAR_PLUGINS.includes(event.payload.pluginId) &&
+        availableComponents
+          .get(event.payload.pluginId)
+          ?.addedComponents.some((component) => component.title === event.payload.componentTitle)
       ) {
         setDockedComponentWithProps(
           JSON.stringify({ pluginId: event.payload.pluginId, componentTitle: event.payload.componentTitle }),
@@ -182,11 +185,17 @@ export const ExtensionSidebarContextProvider = ({ children }: ExtensionSidebarCo
       }
     };
 
-    const subscription = getAppEvents().subscribe(OpenExtensionSidebarEvent, openSidebarHandler);
-    return () => {
-      subscription.unsubscribe();
+    const closeSidebarHandler = () => {
+      setDockedComponentId(undefined);
     };
-  }, [isEnabled, setDockedComponentWithProps]);
+
+    const openSubscription = getAppEvents().subscribe(OpenExtensionSidebarEvent, openSidebarHandler);
+    const closeSubscription = getAppEvents().subscribe(CloseExtensionSidebarEvent, closeSidebarHandler);
+    return () => {
+      openSubscription.unsubscribe();
+      closeSubscription.unsubscribe();
+    };
+  }, [isEnabled, setDockedComponentWithProps, availableComponents]);
 
   // update the stored docked component id when it changes
   useEffect(() => {
diff --git a/public/app/features/plugins/extensions/utils.tsx b/public/app/features/plugins/extensions/utils.tsx
index db17481a165..f083059cece 100644
--- a/public/app/features/plugins/extensions/utils.tsx
+++ b/public/app/features/plugins/extensions/utils.tsx
@@ -20,7 +20,7 @@ import { reportInteraction, config, AppPluginConfig } from '@grafana/runtime';
 import { Modal } from '@grafana/ui';
 import appEvents from 'app/core/app_events';
 import { getPluginSettings } from 'app/features/plugins/pluginSettings';
-import { OpenExtensionSidebarEvent, ShowModalReactEvent } from 'app/types/events';
+import { CloseExtensionSidebarEvent, OpenExtensionSidebarEvent, ShowModalReactEvent } from 'app/types/events';
 
 import { ExtensionErrorBoundary } from './ExtensionErrorBoundary';
 import { ExtensionsLog, log as baseLog } from './logs/log';
@@ -541,6 +541,9 @@ export function getLinkExtensionOnClick(
             })
           );
         },
+        closeSidebar: () => {
+          appEvents.publish(new CloseExtensionSidebarEvent());
+        },
       };
 
       log.debug(`onClick '${config.title}' at '${extensionPointId}'`);
diff --git a/public/app/types/events.ts b/public/app/types/events.ts
index 4ec85c07e64..d0a3d7a9873 100644
--- a/public/app/types/events.ts
+++ b/public/app/types/events.ts
@@ -194,6 +194,10 @@ export class OpenExtensionSidebarEvent extends BusEventWithPayload<OpenExtension
   static type = 'open-extension-sidebar';
 }
 
+export class CloseExtensionSidebarEvent extends BusEventBase {
+  static type = 'close-extension-sidebar';
+}
+
 /**
  * @deprecated use ShowModalReactEvent instead that has this capability built in
  */