diff --git a/public/app/features/alerting/unified/components/AlertRuleDrawerForm.tsx b/public/app/features/alerting/unified/components/AlertRuleDrawerForm.tsx
new file mode 100644
index 00000000000..f15a192ce6a
--- /dev/null
+++ b/public/app/features/alerting/unified/components/AlertRuleDrawerForm.tsx
@@ -0,0 +1,33 @@
+import { FormProvider, useForm } from 'react-hook-form';
+
+import { t } from '@grafana/i18n';
+import { Drawer } from '@grafana/ui';
+import { RuleDefinitionSection } from 'app/features/alerting/unified/components/RuleDefinitionSection';
+
+import { getDefaultFormValues } from '../rule-editor/formDefaults';
+import { RuleFormType, RuleFormValues } from '../types/rule-form';
+
+export interface AlertRuleDrawerFormProps {
+  isOpen: boolean;
+  onClose: () => void;
+  title?: string;
+}
+
+export function AlertRuleDrawerForm({ isOpen, onClose, title }: AlertRuleDrawerFormProps) {
+  const methods = useForm<RuleFormValues>({ defaultValues: getDefaultFormValues(RuleFormType.grafana) });
+
+  if (!isOpen) {
+    return null;
+  }
+
+  return (
+    <Drawer
+      title={title ?? t('alerting.new-rule-from-panel-button.new-alert-rule', 'New alert rule')}
+      onClose={onClose}
+    >
+      <FormProvider {...methods}>
+        <RuleDefinitionSection type={RuleFormType.grafana} />
+      </FormProvider>
+    </Drawer>
+  );
+}
diff --git a/public/app/features/alerting/unified/components/RuleDefinitionSection.tsx b/public/app/features/alerting/unified/components/RuleDefinitionSection.tsx
new file mode 100644
index 00000000000..6b27167763b
--- /dev/null
+++ b/public/app/features/alerting/unified/components/RuleDefinitionSection.tsx
@@ -0,0 +1,129 @@
+import { css } from '@emotion/css';
+import { useState } from 'react';
+import { useFormContext } from 'react-hook-form';
+
+import { GrafanaTheme2 } from '@grafana/data';
+import { selectors } from '@grafana/e2e-selectors';
+import { Trans, t } from '@grafana/i18n';
+import { Field, Input, Stack, useStyles2 } from '@grafana/ui';
+
+import { RuleFormType, RuleFormValues } from '../types/rule-form';
+import { GRAFANA_RULES_SOURCE_NAME } from '../utils/datasource';
+import { isCloudRecordingRuleByType, isGrafanaManagedRuleByType, isRecordingRuleByType } from '../utils/rules';
+
+import { FolderSelectorV2 } from './rule-editor/FolderSelectorV2';
+import { LabelsEditorModal } from './rule-editor/labels/LabelsEditorModal';
+import { LabelsFieldInForm } from './rule-editor/labels/LabelsFieldInForm';
+
+export function RuleDefinitionSection({ type }: { type: RuleFormType }) {
+  const styles = useStyles2(getStyles);
+  const {
+    register,
+    formState: { errors },
+    setValue,
+    getValues,
+  } = useFormContext<RuleFormValues>();
+  const [showLabelsEditor, setShowLabelsEditor] = useState(false);
+
+  const isRecording = isRecordingRuleByType(type);
+  const isCloudRecordingRule = isCloudRecordingRuleByType(type);
+  const namePlaceholder = isRecording ? 'recording rule' : 'alert rule';
+
+  return (
+    <div className={styles.section}>
+      <div className={styles.sectionHeaderRow}>
+        <span className={styles.stepBadge}>
+          <Trans i18nKey="alerting.simplified.step-number-one">1</Trans>
+        </span>
+        <div className={styles.sectionHeader}>
+          <Trans i18nKey="alerting.simplified.rule-definition">Rule Definition</Trans>
+        </div>
+      </div>
+      <div className={styles.contentIndented}>
+        <Stack direction="column" gap={2}>
+          <Field
+            noMargin
+            label={<Trans i18nKey="alerting.alert-rule-name-and-metric.label-name">Name</Trans>}
+            error={errors?.name?.message}
+            invalid={!!errors.name?.message}
+          >
+            <Input
+              data-testid={selectors.components.AlertRules.ruleNameField}
+              id="name"
+              width={38}
+              {...register('name', {
+                required: {
+                  value: true,
+                  message: t('alerting.alert-rule-name-and-metric.message.must-enter-a-name', 'Must enter a name'),
+                },
+                pattern: isCloudRecordingRule
+                  ? {
+                      value: /^[a-zA-Z_:][a-zA-Z0-9_:]*$/,
+                      message: t(
+                        'alerting.alert-rule-name-and-metric.recording-rule-pattern',
+                        'Recording rule name must be valid metric name. It may only contain letters, numbers, and colons. It may not contain whitespace.'
+                      ),
+                    }
+                  : undefined,
+              })}
+              aria-label={t('alerting.alert-rule-name-and-metric.aria-label-name', 'name')}
+              placeholder={t(
+                'alerting.alert-rule-name-and-metric.placeholder-name',
+                'Give your {{namePlaceholder}} a name',
+                { namePlaceholder }
+              )}
+            />
+          </Field>
+
+          {isGrafanaManagedRuleByType(type) && (
+            <>
+              <FolderSelectorV2 />
+              <LabelsFieldInForm showHelpTooltip onEditClick={() => setShowLabelsEditor(true)} labelVariant="small" />
+              <LabelsEditorModal
+                isOpen={showLabelsEditor}
+                onClose={(labelsToUpdate) => {
+                  if (labelsToUpdate) {
+                    setValue('labels', labelsToUpdate);
+                  }
+                  setShowLabelsEditor(false);
+                }}
+                dataSourceName={GRAFANA_RULES_SOURCE_NAME}
+                initialLabels={getValues('labels')}
+              />
+            </>
+          )}
+        </Stack>
+      </div>
+    </div>
+  );
+}
+
+function getStyles(theme: GrafanaTheme2) {
+  return {
+    section: css({ width: '100%' }),
+    sectionHeaderRow: css({
+      display: 'flex',
+      alignItems: 'center',
+      gap: theme.spacing(1),
+      marginBottom: theme.spacing(1),
+    }),
+    sectionHeader: css({
+      fontWeight: 600,
+      fontSize: theme.typography.h4.fontSize,
+      lineHeight: theme.typography.h4.lineHeight,
+    }),
+    stepBadge: css({
+      display: 'inline-flex',
+      alignItems: 'center',
+      justifyContent: 'center',
+      height: 20,
+      width: 20,
+      borderRadius: theme.shape.radius.circle,
+      background: theme.colors.primary.main,
+      color: theme.colors.text.maxContrast,
+      fontSize: theme.typography.bodySmall.fontSize,
+      fontWeight: 600,
+    }),
+    contentIndented: css({ marginLeft: `calc(20px + ${theme.spacing(1)})` }),
+  };
+}
diff --git a/public/app/features/alerting/unified/components/create-folder/CreateNewFolder.tsx b/public/app/features/alerting/unified/components/create-folder/CreateNewFolder.tsx
index 94a5ecfe849..89a012f0d98 100644
--- a/public/app/features/alerting/unified/components/create-folder/CreateNewFolder.tsx
+++ b/public/app/features/alerting/unified/components/create-folder/CreateNewFolder.tsx
@@ -27,8 +27,8 @@ export const CreateNewFolder = ({ onCreate }: { onCreate: (folder: Folder) => vo
         onClick={() => setIsCreatingFolder(true)}
         type="button"
         icon="plus"
-        fill="outline"
         variant="secondary"
+        size="sm"
         disabled={!contextSrv.hasPermission(AccessControlAction.FoldersCreate)}
       >
         <Trans i18nKey="alerting.create-new-folder.new-folder">New folder</Trans>
diff --git a/public/app/features/alerting/unified/components/panel-alerts-tab/NewRuleFromPanelButton.tsx b/public/app/features/alerting/unified/components/panel-alerts-tab/NewRuleFromPanelButton.tsx
index 44224012093..69826423207 100644
--- a/public/app/features/alerting/unified/components/panel-alerts-tab/NewRuleFromPanelButton.tsx
+++ b/public/app/features/alerting/unified/components/panel-alerts-tab/NewRuleFromPanelButton.tsx
@@ -5,12 +5,13 @@ import { useAsync } from 'react-use';
 import { urlUtil } from '@grafana/data';
 import { Trans, t } from '@grafana/i18n';
 import { config } from '@grafana/runtime';
-import { Alert, Button, Drawer, LinkButton } from '@grafana/ui';
+import { Alert, Button, LinkButton } from '@grafana/ui';
 import { DashboardModel } from 'app/features/dashboard/state/DashboardModel';
 import { PanelModel } from 'app/features/dashboard/state/PanelModel';
 import { useSelector } from 'app/types/store';
 
 import { LogMessages, logInfo } from '../../Analytics';
+import { AlertRuleDrawerForm } from '../../components/AlertRuleDrawerForm';
 import { panelToRuleFormValues } from '../../utils/rule-form';
 
 interface Props {
@@ -72,18 +73,11 @@ export const NewRuleFromPanelButton = ({ dashboard, panel, className }: Props) =
             icon="bell"
             className={className}
             data-testid="create-alert-rule-button-drawer"
-            onClick={() => {
-              setIsOpen(true);
-            }}
+            onClick={() => setIsOpen(true)}
           >
             <Trans i18nKey="alerting.new-rule-from-panel-button.new-alert-rule">New alert rule</Trans>
           </Button>
-          <Drawer
-            title={t('alerting.new-rule-from-panel-button.new-alert-rule', 'New alert rule')}
-            onClose={() => setIsOpen(false)}
-          >
-            <Trans i18nKey="alerting.new-rule-from-panel-button.content-coming-soon">Content coming soon...</Trans>
-          </Drawer>
+          <AlertRuleDrawerForm isOpen={isOpen} onClose={() => setIsOpen(false)} />
         </>
       );
     }
diff --git a/public/app/features/alerting/unified/components/rule-editor/FolderSelectorV2.tsx b/public/app/features/alerting/unified/components/rule-editor/FolderSelectorV2.tsx
new file mode 100644
index 00000000000..4ee9be33bcc
--- /dev/null
+++ b/public/app/features/alerting/unified/components/rule-editor/FolderSelectorV2.tsx
@@ -0,0 +1,94 @@
+import { useCallback } from 'react';
+import { Controller, useFormContext } from 'react-hook-form';
+
+import { Trans, t } from '@grafana/i18n';
+import { Field, Icon, Label, Stack, Tooltip } from '@grafana/ui';
+import { NestedFolderPicker } from 'app/core/components/NestedFolderPicker/NestedFolderPicker';
+
+import { Folder, RuleFormValues } from '../../types/rule-form';
+import { CreateNewFolder } from '../create-folder/CreateNewFolder';
+
+export function FolderSelectorV2() {
+  const {
+    formState: { errors },
+    setValue,
+    watch,
+  } = useFormContext<RuleFormValues>();
+
+  const resetGroup = useCallback(() => {
+    setValue('group', '');
+  }, [setValue]);
+
+  const folder = watch('folder');
+
+  const handleFolderCreation = (folder: Folder) => {
+    resetGroup();
+    setValue('folder', folder);
+  };
+
+  return (
+    <Stack alignItems="center">
+      {
+        <Field
+          noMargin
+          label={
+            <Label
+              htmlFor="folder"
+              description={t(
+                'alerting.folder-selector.description-select-folder',
+                'Select a folder to store your rule in.'
+              )}
+            >
+              <Stack direction="row" alignItems="center" gap={0.5}>
+                <Trans i18nKey="alerting.rule-form.folder.label">Folder</Trans>
+                <Tooltip
+                  content={t(
+                    'alerting.rule-form.folders.help-info',
+                    'Folders are used for storing alert rules. You can extend the access provided by a role to alert rules and assign permissions to individual folders.'
+                  )}
+                >
+                  <Icon name="info-circle" size="sm" />
+                </Tooltip>
+              </Stack>
+            </Label>
+          }
+          error={errors.folder?.message}
+          data-testid="folder-picker"
+        >
+          <Stack direction="column" alignItems="flex-start" gap={0.5}>
+            <Controller
+              render={({ field: { ref, ...field } }) => (
+                <div style={{ width: 420 }}>
+                  <NestedFolderPicker
+                    permission="view"
+                    showRootFolder={false}
+                    invalid={!!errors.folder?.message}
+                    {...field}
+                    value={folder?.uid}
+                    onChange={(uid, title) => {
+                      if (uid && title) {
+                        setValue('folder', { title, uid });
+                      } else {
+                        setValue('folder', undefined);
+                      }
+
+                      resetGroup();
+                    }}
+                  />
+                </div>
+              )}
+              name="folder"
+              rules={{
+                required: {
+                  value: true,
+                  message: t('alerting.folder-selector.message.select-a-folder', 'Select a folder'),
+                },
+              }}
+            />
+            <CreateNewFolder onCreate={handleFolderCreation} />
+          </Stack>
+        </Field>
+      }
+    </Stack>
+  );
+}
diff --git a/public/app/features/alerting/unified/components/rule-editor/labels/LabelsFieldInForm.tsx b/public/app/features/alerting/unified/components/rule-editor/labels/LabelsFieldInForm.tsx
index d6217be0c59..3b5bd9589ee 100644
--- a/public/app/features/alerting/unified/components/rule-editor/labels/LabelsFieldInForm.tsx
+++ b/public/app/features/alerting/unified/components/rule-editor/labels/LabelsFieldInForm.tsx
@@ -1,7 +1,7 @@
 import { useFormContext } from 'react-hook-form';
 
 import { Trans, t } from '@grafana/i18n';
-import { Button, Stack, Text } from '@grafana/ui';
+import { Button, Icon, Stack, Text, Tooltip } from '@grafana/ui';
 
 import { AIImproveLabelsButtonComponent } from '../../../enterprise-components/AI/AIGenImproveLabelsButton/addAIImproveLabelsButton';
 import { RuleFormValues } from '../../../types/rule-form';
@@ -12,8 +12,14 @@ import { LabelsInRule } from './LabelsField';
 
 interface LabelsFieldInFormProps {
   onEditClick: () => void;
+  labelVariant?: 'small' | 'default';
+  showHelpTooltip?: boolean;
 }
-export function LabelsFieldInForm({ onEditClick }: LabelsFieldInFormProps) {
+export function LabelsFieldInForm({
+  onEditClick,
+  labelVariant = 'default',
+  showHelpTooltip = false,
+}: LabelsFieldInFormProps) {
   const { watch } = useFormContext<RuleFormValues>();
 
   const labels = watch('labels');
@@ -35,7 +41,42 @@ export function LabelsFieldInForm({ onEditClick }: LabelsFieldInFormProps) {
     <Stack direction="column" gap={2}>
       <Stack direction="column" gap={1}>
         <Text element="h5">
-          <Trans i18nKey="alerting.labels-field-in-form.labels">Labels</Trans>
+          <Stack direction="row" alignItems="center" gap={0.5}>
+            {labelVariant === 'small' ? (
+              <Text variant="bodySmall">
+                <Trans i18nKey="alerting.labels-field-in-form.labels">Labels</Trans>
+              </Text>
+            ) : (
+              <Text element="h5">
+                <Trans i18nKey="alerting.labels-field-in-form.labels">Labels</Trans>
+              </Text>
+            )}
+            <Text variant="bodySmall" color="secondary">
+              {t('alerting.common.optional', '(optional)')}
+            </Text>
+            {showHelpTooltip && (
+              <Tooltip
+                content={
+                  <div>
+                    <div style={{ marginBottom: 8 }}>
+                      {t(
+                        'alerting.labels-field-in-form.tooltip-text',
+                        'Labels are used to differentiate an alert from all other alerts.You can use them for searching, silencing, and routing notifications.'
+                      )}
+                    </div>
+                    <div>
+                      {t(
+                        'alerting.labels-field-in-form.tooltip-text-2',
+                        'The dropdown only displays labels that you have previously used for alerts. Select a label from the options below or type in a new one.'
+                      )}
+                    </div>
+                  </div>
+                }
+              >
+                <Icon name="info-circle" size="sm" />
+              </Tooltip>
+            )}
+          </Stack>
         </Text>
         <Stack direction={'column'} gap={1}>
           <Stack direction={'row'} gap={1}>
diff --git a/public/app/features/dashboard-scene/panel-edit/PanelDataPane/NewAlertRuleButton.tsx b/public/app/features/dashboard-scene/panel-edit/PanelDataPane/NewAlertRuleButton.tsx
index 013bd1bcc65..f423619200c 100644
--- a/public/app/features/dashboard-scene/panel-edit/PanelDataPane/NewAlertRuleButton.tsx
+++ b/public/app/features/dashboard-scene/panel-edit/PanelDataPane/NewAlertRuleButton.tsx
@@ -6,8 +6,9 @@ import { urlUtil } from '@grafana/data';
 import { Trans, t } from '@grafana/i18n';
 import { config, locationService, logInfo } from '@grafana/runtime';
 import { VizPanel } from '@grafana/scenes';
-import { Alert, Button, Drawer } from '@grafana/ui';
+import { Alert, Button } from '@grafana/ui';
 import { LogMessages } from 'app/features/alerting/unified/Analytics';
+import { AlertRuleDrawerForm } from 'app/features/alerting/unified/components/AlertRuleDrawerForm';
 import { scenesPanelToRuleFormValues } from 'app/features/alerting/unified/utils/rule-form';
 
 interface ScenesNewRuleFromPanelButtonProps {
@@ -67,20 +68,12 @@ export const ScenesNewRuleFromPanelButton = ({ panel, className }: ScenesNewRule
           className={className}
           data-testid="create-alert-rule-button-drawer"
           onClick={() => {
-            // logInfo(LogMessages.alertRuleFromPanel);
             setIsOpen(true);
           }}
         >
           <Trans i18nKey="alerting.new-rule-from-panel-button.new-alert-rule">New alert rule</Trans>
         </Button>
-        {isOpen && (
-          <Drawer
-            title={t('alerting.new-rule-from-panel-button.new-alert-rule', 'New alert rule')}
-            onClose={() => setIsOpen(false)}
-          >
-            <Trans i18nKey="alerting.new-rule-from-panel-button.content-coming-soon">Content coming soon...</Trans>
-          </Drawer>
-        )}
+        <AlertRuleDrawerForm isOpen={isOpen} onClose={() => setIsOpen(false)} />
       </>
     );
   }
diff --git a/public/app/features/dashboard-scene/panel-edit/PanelDataPane/PanelDataPane.tsx b/public/app/features/dashboard-scene/panel-edit/PanelDataPane/PanelDataPane.tsx
index de5d15aca86..1b9011dea15 100644
--- a/public/app/features/dashboard-scene/panel-edit/PanelDataPane/PanelDataPane.tsx
+++ b/public/app/features/dashboard-scene/panel-edit/PanelDataPane/PanelDataPane.tsx
@@ -1,3 +1,4 @@
+/* eslint-disable @typescript-eslint/consistent-type-assertions */
 import { css } from '@emotion/css';
 
 import { GrafanaTheme2 } from '@grafana/data';
@@ -39,9 +40,9 @@ export class PanelDataPane extends SceneObjectBase<PanelDataPaneState> {
       new PanelDataTransformationsTab({ panelRef }),
     ];
 
-    if (shouldShowAlertingTab(panel.state.pluginId)) {
-      tabs.push(new PanelDataAlertingTab({ panelRef }));
-    }
+    // if (shouldShowAlertingTab(panel.state.pluginId)) {
+    tabs.push(new PanelDataAlertingTab({ panelRef }));
+    // }
 
     return new PanelDataPane({
       panelRef,