diff --git a/public/app/features/dashboard-scene/scene/PanelMenuBehavior.test.tsx b/public/app/features/dashboard-scene/scene/PanelMenuBehavior.test.tsx
index 199a2e06586..838b7d948a2 100644
--- a/public/app/features/dashboard-scene/scene/PanelMenuBehavior.test.tsx
+++ b/public/app/features/dashboard-scene/scene/PanelMenuBehavior.test.tsx
@@ -38,7 +38,7 @@ describe('panelMenuBehavior', () => {
 
     await new Promise((r) => setTimeout(r, 1));
 
-    expect(menu.state.items?.length).toBe(5);
+    expect(menu.state.items?.length).toBe(6);
     // verify view panel url keeps url params and adds viewPanel=<panel-key>
     expect(menu.state.items?.[0].href).toBe('/scenes/dashboard/dash-1?from=now-5m&to=now&viewPanel=panel-12');
     // verify edit url keeps url time range
diff --git a/public/app/features/dashboard-scene/scene/PanelMenuBehavior.tsx b/public/app/features/dashboard-scene/scene/PanelMenuBehavior.tsx
index 7a25aeca24e..7029a5faf47 100644
--- a/public/app/features/dashboard-scene/scene/PanelMenuBehavior.tsx
+++ b/public/app/features/dashboard-scene/scene/PanelMenuBehavior.tsx
@@ -12,6 +12,7 @@ import { getDashboardUrl, getInspectUrl, getViewPanelUrl, tryGetExploreUrlForPan
 import { getPanelIdForVizPanel } from '../utils/utils';
 
 import { DashboardScene } from './DashboardScene';
+import { LibraryVizPanel } from './LibraryVizPanel';
 import { VizPanelLinks } from './PanelLinks';
 
 /**
@@ -24,6 +25,7 @@ export function panelMenuBehavior(menu: VizPanelMenu) {
     const panel = menu.parent as VizPanel;
     const location = locationService.getLocation();
     const items: PanelMenuItem[] = [];
+    const moreSubMenu: PanelMenuItem[] = [];
     const panelId = getPanelIdForVizPanel(panel);
     const dashboard = panel.getRoot();
 
@@ -63,6 +65,25 @@ export function panelMenuBehavior(menu: VizPanelMenu) {
         shortcut: 'p s',
       });
 
+      if (panel instanceof LibraryVizPanel) {
+        // TODO: Implement unlinking library panel
+      } else {
+        moreSubMenu.push({
+          text: t('panel.header-menu.create-library-panel', `Create library panel`),
+          iconClassName: 'share-alt',
+          onClick: () => {
+            reportInteraction('dashboards_panelheader_menu', { item: 'createLibraryPanel' });
+            dashboard.showModal(
+              new ShareModal({
+                panelRef: panel.getRef(),
+                dashboardRef: dashboard.getRef(),
+                activeTab: 'Library panel',
+              })
+            );
+          },
+        });
+      }
+
       if (config.featureToggles.datatrails) {
         addDataTrailPanelAction(dashboard, panel, items);
       }
@@ -87,6 +108,18 @@ export function panelMenuBehavior(menu: VizPanelMenu) {
       href: getInspectUrl(panel),
     });
 
+    if (moreSubMenu.length) {
+      items.push({
+        type: 'submenu',
+        text: t('panel.header-menu.more', `More...`),
+        iconClassName: 'cube',
+        subMenu: moreSubMenu,
+        onClick: (e) => {
+          e.preventDefault();
+        },
+      });
+    }
+
     menu.setState({ items });
   };
 
diff --git a/public/app/features/dashboard-scene/sharing/ShareExportTab.tsx b/public/app/features/dashboard-scene/sharing/ShareExportTab.tsx
index 352f8438997..067cb6f787a 100644
--- a/public/app/features/dashboard-scene/sharing/ShareExportTab.tsx
+++ b/public/app/features/dashboard-scene/sharing/ShareExportTab.tsx
@@ -25,6 +25,7 @@ interface ShareExportTabState extends SceneShareTabState {
 }
 
 export class ShareExportTab extends SceneObjectBase<ShareExportTabState> {
+  public tabId = 'Export';
   static Component = ShareExportTabRenderer;
 
   private _exporter = new DashboardExporter();
diff --git a/public/app/features/dashboard-scene/sharing/ShareLibraryPanelTab.tsx b/public/app/features/dashboard-scene/sharing/ShareLibraryPanelTab.tsx
new file mode 100644
index 00000000000..e4e839b854d
--- /dev/null
+++ b/public/app/features/dashboard-scene/sharing/ShareLibraryPanelTab.tsx
@@ -0,0 +1,58 @@
+import React from 'react';
+
+import { SceneComponentProps, SceneGridItem, SceneObjectBase, SceneObjectRef, VizPanel } from '@grafana/scenes';
+import { t } from 'app/core/internationalization';
+import { ShareLibraryPanel } from 'app/features/dashboard/components/ShareModal/ShareLibraryPanel';
+import { DashboardModel, PanelModel } from 'app/features/dashboard/state';
+
+import { DashboardScene } from '../scene/DashboardScene';
+import { PanelRepeaterGridItem } from '../scene/PanelRepeaterGridItem';
+import { gridItemToPanel, transformSceneToSaveModel } from '../serialization/transformSceneToSaveModel';
+
+import { SceneShareTabState } from './types';
+
+export interface ShareLibraryPanelTabState extends SceneShareTabState {
+  panelRef?: SceneObjectRef<VizPanel>;
+  dashboardRef: SceneObjectRef<DashboardScene>;
+}
+
+export class ShareLibraryPanelTab extends SceneObjectBase<ShareLibraryPanelTabState> {
+  public tabId = 'Library panel';
+  static Component = ShareLibraryPanelTabRenderer;
+
+  public getTabLabel() {
+    return t('share-modal.tab-title.library-panel', 'Library panel');
+  }
+}
+
+function ShareLibraryPanelTabRenderer({ model }: SceneComponentProps<ShareLibraryPanelTab>) {
+  const { panelRef, dashboardRef, modalRef } = model.useState();
+
+  if (!panelRef) {
+    return null;
+  }
+
+  const vizPanel = panelRef.resolve();
+
+  if (vizPanel.parent instanceof SceneGridItem || vizPanel.parent instanceof PanelRepeaterGridItem) {
+    const dashboardScene = dashboardRef.resolve();
+    const panelJson = gridItemToPanel(vizPanel.parent);
+    const panelModel = new PanelModel(panelJson);
+
+    const dashboardJson = transformSceneToSaveModel(dashboardScene);
+    const dashboardModel = new DashboardModel(dashboardJson);
+
+    return (
+      <ShareLibraryPanel
+        initialFolderUid={dashboardScene.state.meta.folderUid}
+        dashboard={dashboardModel}
+        panel={panelModel}
+        onDismiss={() => {
+          modalRef?.resolve().onDismiss();
+        }}
+      />
+    );
+  }
+
+  return null;
+}
diff --git a/public/app/features/dashboard-scene/sharing/ShareLinkTab.tsx b/public/app/features/dashboard-scene/sharing/ShareLinkTab.tsx
index 61e38a55d65..113fc64d918 100644
--- a/public/app/features/dashboard-scene/sharing/ShareLinkTab.tsx
+++ b/public/app/features/dashboard-scene/sharing/ShareLinkTab.tsx
@@ -30,6 +30,8 @@ interface ShareOptions {
 }
 
 export class ShareLinkTab extends SceneObjectBase<ShareLinkTabState> {
+  public tabId = 'Link';
+
   static Component = ShareLinkTabRenderer;
 
   constructor(state: Omit<ShareLinkTabState, keyof ShareOptions>) {
diff --git a/public/app/features/dashboard-scene/sharing/ShareModal.tsx b/public/app/features/dashboard-scene/sharing/ShareModal.tsx
index afda14680b4..c11599104cf 100644
--- a/public/app/features/dashboard-scene/sharing/ShareModal.tsx
+++ b/public/app/features/dashboard-scene/sharing/ShareModal.tsx
@@ -10,6 +10,7 @@ import { DashboardScene } from '../scene/DashboardScene';
 import { getDashboardSceneFor } from '../utils/utils';
 
 import { ShareExportTab } from './ShareExportTab';
+import { ShareLibraryPanelTab } from './ShareLibraryPanelTab';
 import { ShareLinkTab } from './ShareLinkTab';
 import { SharePanelEmbedTab } from './SharePanelEmbedTab';
 import { ShareSnapshotTab } from './ShareSnapshotTab';
@@ -51,34 +52,19 @@ export class ShareModal extends SceneObjectBase<ShareModalState> implements Moda
       tabs.push(new ShareSnapshotTab({ panelRef, dashboardRef, modalRef: this.getRef() }));
     }
 
+    if (panelRef) {
+      tabs.push(new SharePanelEmbedTab({ panelRef, dashboardRef }));
+
+      if (panelRef.resolve() instanceof VizPanel) {
+        tabs.push(new ShareLibraryPanelTab({ panelRef, dashboardRef, modalRef: this.getRef() }));
+      }
+    }
+
     if (Boolean(config.featureToggles['publicDashboards'])) {
       tabs.push(new SharePublicDashboardTab({ dashboardRef, modalRef: this.getRef() }));
     }
 
-    if (panelRef) {
-      tabs.push(new SharePanelEmbedTab({ panelRef, dashboardRef }));
-    }
-
     this.setState({ tabs });
-
-    // if (panel) {
-    //   const embedLabel = t('share-modal.tab-title.embed', 'Embed');
-    //   tabs.push({ label: embedLabel, value: shareDashboardType.embed, component: ShareEmbed });
-
-    //   if (!isPanelModelLibraryPanel(panel)) {
-    //     const libraryPanelLabel = t('share-modal.tab-title.library-panel', 'Library panel');
-    //     tabs.push({ label: libraryPanelLabel, value: shareDashboardType.libraryPanel, component: ShareLibraryPanel });
-    //   }
-    //   tabs.push(...customPanelTabs);
-    // } else {
-    //   const exportLabel = t('share-modal.tab-title.export', 'Export');
-    //   tabs.push({
-    //     label: exportLabel,
-    //     value: shareDashboardType.export,
-    //     component: ShareExport,
-    //   });
-    //   tabs.push(...customDashboardTabs);
-    // }
   }
 
   onDismiss = () => {
@@ -101,7 +87,7 @@ function SharePanelModalRenderer({ model }: SceneComponentProps<ShareModal>) {
 
   const modalTabs = tabs?.map((tab) => ({
     label: tab.getTabLabel(),
-    value: tab.getTabLabel(),
+    value: tab.tabId,
   }));
 
   const header = (
@@ -114,7 +100,7 @@ function SharePanelModalRenderer({ model }: SceneComponentProps<ShareModal>) {
     />
   );
 
-  const currentTab = tabs.find((t) => t.getTabLabel() === activeTab);
+  const currentTab = tabs.find((t) => t.tabId === activeTab);
 
   return (
     <Modal isOpen={true} title={header} onDismiss={model.onDismiss}>
diff --git a/public/app/features/dashboard-scene/sharing/SharePanelEmbedTab.tsx b/public/app/features/dashboard-scene/sharing/SharePanelEmbedTab.tsx
index 085ed4092bf..94d5d04667b 100644
--- a/public/app/features/dashboard-scene/sharing/SharePanelEmbedTab.tsx
+++ b/public/app/features/dashboard-scene/sharing/SharePanelEmbedTab.tsx
@@ -18,6 +18,7 @@ export interface SharePanelEmbedTabState extends SceneShareTabState {
 }
 
 export class SharePanelEmbedTab extends SceneObjectBase<SharePanelEmbedTabState> {
+  public tabId = 'Embed';
   static Component = SharePanelEmbedTabRenderer;
 
   public constructor(state: SharePanelEmbedTabState) {
diff --git a/public/app/features/dashboard-scene/sharing/ShareSnapshotTab.tsx b/public/app/features/dashboard-scene/sharing/ShareSnapshotTab.tsx
index 2a1e79dd8f1..208fdd67b34 100644
--- a/public/app/features/dashboard-scene/sharing/ShareSnapshotTab.tsx
+++ b/public/app/features/dashboard-scene/sharing/ShareSnapshotTab.tsx
@@ -50,6 +50,7 @@ export interface ShareSnapshotTabState extends SceneShareTabState {
 }
 
 export class ShareSnapshotTab extends SceneObjectBase<ShareSnapshotTabState> {
+  public tabId = 'Snapshot';
   static Component = ShareSnapshoTabRenderer;
 
   public constructor(state: ShareSnapshotTabState) {
diff --git a/public/app/features/dashboard-scene/sharing/public-dashboards/SharePublicDashboardTab.tsx b/public/app/features/dashboard-scene/sharing/public-dashboards/SharePublicDashboardTab.tsx
index e34123410cc..a7b9de9d741 100644
--- a/public/app/features/dashboard-scene/sharing/public-dashboards/SharePublicDashboardTab.tsx
+++ b/public/app/features/dashboard-scene/sharing/public-dashboards/SharePublicDashboardTab.tsx
@@ -17,6 +17,7 @@ export interface SharePublicDashboardTabState extends SceneShareTabState {
 }
 
 export class SharePublicDashboardTab extends SceneObjectBase<SharePublicDashboardTabState> {
+  public tabId = 'Public dashboard';
   static Component = SharePublicDashboardTabRenderer;
 
   public getTabLabel() {
diff --git a/public/app/features/dashboard-scene/sharing/types.ts b/public/app/features/dashboard-scene/sharing/types.ts
index 3dafb3b89f2..dc4ddb676e6 100644
--- a/public/app/features/dashboard-scene/sharing/types.ts
+++ b/public/app/features/dashboard-scene/sharing/types.ts
@@ -10,4 +10,5 @@ export interface SceneShareTabState extends SceneObjectState {
 
 export interface SceneShareTab<T extends SceneShareTabState = SceneShareTabState> extends SceneObject<T> {
   getTabLabel(): string;
+  tabId: string;
 }
diff --git a/public/app/features/dashboard/components/ShareModal/ShareLibraryPanel.tsx b/public/app/features/dashboard/components/ShareModal/ShareLibraryPanel.tsx
index e3b65aab155..b40dce681db 100644
--- a/public/app/features/dashboard/components/ShareModal/ShareLibraryPanel.tsx
+++ b/public/app/features/dashboard/components/ShareModal/ShareLibraryPanel.tsx
@@ -24,7 +24,7 @@ export const ShareLibraryPanel = ({ panel, initialFolderUid, onDismiss }: Props)
       <p className="share-modal-info-text">
         <Trans i18nKey="share-modal.library.info">Create library panel.</Trans>
       </p>
-      <AddLibraryPanelContents panel={panel} initialFolderUid={initialFolderUid} onDismiss={onDismiss!} />
+      <AddLibraryPanelContents panel={panel} initialFolderUid={initialFolderUid} onDismiss={onDismiss} />
     </>
   );
 };
diff --git a/public/app/features/library-panels/components/AddLibraryPanelModal/AddLibraryPanelModal.tsx b/public/app/features/library-panels/components/AddLibraryPanelModal/AddLibraryPanelModal.tsx
index d4b9f8db378..73b086913c5 100644
--- a/public/app/features/library-panels/components/AddLibraryPanelModal/AddLibraryPanelModal.tsx
+++ b/public/app/features/library-panels/components/AddLibraryPanelModal/AddLibraryPanelModal.tsx
@@ -12,7 +12,7 @@ import { LibraryElementDTO } from '../../types';
 import { usePanelSave } from '../../utils/usePanelSave';
 
 interface AddLibraryPanelContentsProps {
-  onDismiss: () => void;
+  onDismiss?: () => void;
   panel: PanelModel;
   initialFolderUid?: string;
 }
@@ -23,20 +23,23 @@ export const AddLibraryPanelContents = ({ panel, initialFolderUid, onDismiss }:
   const [debouncedPanelName, setDebouncedPanelName] = useState(panel.title);
   const [waiting, setWaiting] = useState(false);
 
+  console.log('folderUid', folderUid);
   useEffect(() => setWaiting(true), [panelName]);
   useDebounce(() => setDebouncedPanelName(panelName), 350, [panelName]);
 
   const { saveLibraryPanel } = usePanelSave();
+
   const onCreate = useCallback(() => {
     panel.libraryPanel = { uid: '', name: panelName };
     saveLibraryPanel(panel, folderUid!).then((res: LibraryElementDTO | FetchError) => {
       if (!isFetchError(res)) {
-        onDismiss();
+        onDismiss?.();
       } else {
         panel.libraryPanel = undefined;
       }
     });
   }, [panel, panelName, folderUid, onDismiss, saveLibraryPanel]);
+
   const isValidName = useAsync(async () => {
     try {
       return !(await getLibraryPanelByName(panelName)).some((lp) => lp.folderUid === folderUid);
@@ -50,6 +53,7 @@ export const AddLibraryPanelContents = ({ panel, initialFolderUid, onDismiss }:
     }
   }, [debouncedPanelName, folderUid]);
 
+  console.log('isValidName:', isValidName);
   const invalidInput =
     !isValidName?.value && isValidName.value !== undefined && panelName === debouncedPanelName && !waiting;
 
diff --git a/yarn.lock b/yarn.lock
index 8842cd5134d..75c0e48745b 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -3303,7 +3303,7 @@ __metadata:
   linkType: soft
 
 "@grafana/scenes@npm:1.24.1":
-  version: 1.24.1
+  version: 0.0.0-use.local
   resolution: "@grafana/scenes@npm:1.24.1"
   dependencies:
     "@grafana/e2e-selectors": "npm:10.0.2"
@@ -3318,7 +3318,7 @@ __metadata:
     "@grafana/ui": 10.0.3
   checksum: 38967dd3977a9b9feb4c295da58bb378d2f9c810c43b34c67c65858782b9593421dfb58d29bc3fa0e86fc63f9af37f7a381ac958ef43bf38d6443a0a7e4de059
   languageName: node
-  linkType: hard
+  linkType: soft
 
 "@grafana/schema@npm:10.3.0-pre, @grafana/schema@workspace:*, @grafana/schema@workspace:packages/grafana-schema":
   version: 0.0.0-use.local