diff --git a/public/app/features/alerting/unified/rule-list/PaginatedGrafanaLoader.test.tsx b/public/app/features/alerting/unified/rule-list/PaginatedGrafanaLoader.test.tsx
new file mode 100644
index 00000000000..703f3e0ab03
--- /dev/null
+++ b/public/app/features/alerting/unified/rule-list/PaginatedGrafanaLoader.test.tsx
@@ -0,0 +1,98 @@
+import { render, screen } from 'test/test-utils';
+import { byRole, byText } from 'testing-library-selector';
+
+import { AccessControlAction } from 'app/types/accessControl';
+import { GrafanaPromRuleGroupDTO } from 'app/types/unified-alerting-dto';
+
+import { mockFolderApi, setupMswServer } from '../mockApi';
+import { grantUserPermissions, mockFolder, mockGrafanaPromAlertingRule } from '../mocks';
+import { NO_GROUP_PREFIX } from '../utils/rules';
+
+import { GrafanaRuleGroupListItem } from './PaginatedGrafanaLoader';
+
+const server = setupMswServer();
+
+const ui = {
+  treeItem: byRole('treeitem'),
+  groupLink: (name: string | RegExp) => byRole('link', { name }),
+  ungroupedText: byText(/\(Ungrouped\)/),
+};
+
+describe('GrafanaRuleGroupListItem', () => {
+  beforeEach(() => {
+    grantUserPermissions([AccessControlAction.AlertingRuleRead]);
+    mockFolderApi(server).folder('folder-123', mockFolder({ uid: 'folder-123', title: 'TestFolder' }));
+  });
+
+  afterEach(() => {
+    server.resetHandlers();
+  });
+
+  it('should display rule name with (Ungrouped) suffix for ungrouped rules', async () => {
+    const grafanaRule = mockGrafanaPromAlertingRule({ name: 'My Alert Rule' });
+    const ungroupedGroup: GrafanaPromRuleGroupDTO = {
+      name: `${NO_GROUP_PREFIX}test-rule-uid`,
+      file: 'TestFolder',
+      folderUid: 'folder-123',
+      interval: 60,
+      rules: [grafanaRule],
+    };
+
+    render(<GrafanaRuleGroupListItem group={ungroupedGroup} namespaceName="TestFolder" />);
+
+    expect(await ui.treeItem.find()).toBeInTheDocument();
+    expect(await ui.groupLink(/My Alert Rule \(Ungrouped\)/).find()).toBeInTheDocument();
+  });
+
+  it('should display normal group name for grouped rules', async () => {
+    const grafanaRule = mockGrafanaPromAlertingRule({ name: 'My Alert Rule' });
+    const groupedGroup: GrafanaPromRuleGroupDTO = {
+      name: 'MyGroup',
+      file: 'TestFolder',
+      folderUid: 'folder-123',
+      interval: 60,
+      rules: [grafanaRule],
+    };
+
+    render(<GrafanaRuleGroupListItem group={groupedGroup} namespaceName="TestFolder" />);
+
+    expect(await ui.groupLink('MyGroup').find()).toBeInTheDocument();
+    expect(screen.queryByText(/Ungrouped/)).not.toBeInTheDocument();
+  });
+
+  it('should render link to group details page with correct URL', async () => {
+    const grafanaRule = mockGrafanaPromAlertingRule({ name: 'My Alert Rule' });
+    const groupedGroup: GrafanaPromRuleGroupDTO = {
+      name: 'MyGroup',
+      file: 'TestFolder',
+      folderUid: 'folder-123',
+      interval: 60,
+      rules: [grafanaRule],
+    };
+
+    render(<GrafanaRuleGroupListItem group={groupedGroup} namespaceName="TestFolder" />);
+
+    const link = await ui.groupLink('MyGroup').find();
+    expect(link).toHaveAttribute(
+      'href',
+      expect.stringContaining('/alerting/grafana/namespaces/folder-123/groups/MyGroup/view')
+    );
+  });
+
+  it('should render as treeitem with correct aria attributes', async () => {
+    const grafanaRule = mockGrafanaPromAlertingRule({ name: 'My Alert Rule' });
+    const group: GrafanaPromRuleGroupDTO = {
+      name: 'TestGroup',
+      file: 'TestFolder',
+      folderUid: 'folder-123',
+      interval: 60,
+      rules: [grafanaRule],
+    };
+
+    render(<GrafanaRuleGroupListItem group={group} namespaceName="TestFolder" />);
+
+    const treeItem = await ui.treeItem.find();
+    expect(treeItem).toHaveAttribute('aria-expanded', 'false');
+    expect(treeItem).toHaveAttribute('aria-selected', 'false');
+  });
+});
diff --git a/public/app/features/alerting/unified/rule-list/PaginatedGrafanaLoader.tsx b/public/app/features/alerting/unified/rule-list/PaginatedGrafanaLoader.tsx
index 8225dd0aed7..8fffeddf261 100644
--- a/public/app/features/alerting/unified/rule-list/PaginatedGrafanaLoader.tsx
+++ b/public/app/features/alerting/unified/rule-list/PaginatedGrafanaLoader.tsx
@@ -9,6 +9,7 @@ import { FolderActionsButton } from '../components/folder-actions/FolderActionsB
 import { GrafanaNoRulesCTA } from '../components/rules/NoRulesCTA';
 import { GRAFANA_RULES_SOURCE_NAME } from '../utils/datasource';
 import { groups } from '../utils/navigation';
+import { isUngroupedRuleGroup } from '../utils/rules';
 
 import { GrafanaGroupLoader } from './GrafanaGroupLoader';
 import { DataSourceSection } from './components/DataSourceSection';
@@ -147,9 +148,6 @@ interface GrafanaRuleGroupListItemProps {
   namespaceName: string;
 }
 
-const NoGroupPrefix = 'no_group_for_rule_';
-const isNoGroup = (group: string) => group.startsWith(NoGroupPrefix);
-
 export function GrafanaRuleGroupListItem({ group, namespaceName }: GrafanaRuleGroupListItemProps) {
   const groupIdentifier: GrafanaRuleGroupIdentifier = useMemo(
     () => ({
@@ -164,7 +162,7 @@ export function GrafanaRuleGroupListItem({ group, namespaceName }: GrafanaRuleGr
 
   const detailsLink = groups.detailsPageLink(GRAFANA_RULES_SOURCE_NAME, group.folderUid, group.name);
 
-  const groupDisplayName = isNoGroup(group.name) ? `${group.rules[0].name} (Ungrouped)` : group.name;
+  const groupDisplayName = isUngroupedRuleGroup(group.name) ? `${group.rules[0].name} (Ungrouped)` : group.name;
 
   return (
     <ListGroup