diff --git a/public/app/features/scopes/internal/ScopesSelectorScene.tsx b/public/app/features/scopes/internal/ScopesSelectorScene.tsx
index e02ef57e17b..be63f15ac77 100644
--- a/public/app/features/scopes/internal/ScopesSelectorScene.tsx
+++ b/public/app/features/scopes/internal/ScopesSelectorScene.tsx
@@ -351,39 +351,44 @@ export function ScopesSelectorSceneRenderer({ model }: SceneComponentProps<Scope
             model.resetDirtyScopeNames();
           }}
         >
-          {isLoadingScopes ? (
-            <Spinner data-testid="scopes-selector-loading" />
-          ) : (
-            <ScopesTree
-              nodes={nodes}
-              nodePath={['']}
-              loadingNodeName={loadingNodeName}
-              scopes={treeScopes}
-              onNodeUpdate={(path, isExpanded, query) => model.updateNode(path, isExpanded, query)}
-              onNodeSelectToggle={(path) => model.toggleNodeSelect(path)}
-            />
-          )}
-          <div className={styles.buttonGroup}>
-            <Button
-              variant="primary"
-              data-testid="scopes-selector-apply"
-              onClick={() => {
-                model.closePicker();
-                model.updateScopes();
-              }}
-            >
-              <Trans i18nKey="scopes.selector.apply">Apply</Trans>
-            </Button>
-            <Button
-              variant="secondary"
-              data-testid="scopes-selector-cancel"
-              onClick={() => {
-                model.closePicker();
-                model.resetDirtyScopeNames();
-              }}
-            >
-              <Trans i18nKey="scopes.selector.cancel">Cancel</Trans>
-            </Button>
+          <div className={styles.drawerContainer}>
+            <div className={styles.treeContainer}>
+              {isLoadingScopes ? (
+                <Spinner data-testid="scopes-selector-loading" />
+              ) : (
+                <ScopesTree
+                  nodes={nodes}
+                  nodePath={['']}
+                  loadingNodeName={loadingNodeName}
+                  scopes={treeScopes}
+                  onNodeUpdate={(path, isExpanded, query) => model.updateNode(path, isExpanded, query)}
+                  onNodeSelectToggle={(path) => model.toggleNodeSelect(path)}
+                />
+              )}
+            </div>
+
+            <div className={styles.buttonsContainer}>
+              <Button
+                variant="primary"
+                data-testid="scopes-selector-apply"
+                onClick={() => {
+                  model.closePicker();
+                  model.updateScopes();
+                }}
+              >
+                <Trans i18nKey="scopes.selector.apply">Apply</Trans>
+              </Button>
+              <Button
+                variant="secondary"
+                data-testid="scopes-selector-cancel"
+                onClick={() => {
+                  model.closePicker();
+                  model.resetDirtyScopeNames();
+                }}
+              >
+                <Trans i18nKey="scopes.selector.cancel">Cancel</Trans>
+              </Button>
+            </div>
           </div>
         </Drawer>
       )}
@@ -410,7 +415,20 @@ const getStyles = (theme: GrafanaTheme2, menuDockedAndOpen: boolean) => {
         color: theme.colors.text.primary,
       }),
     }),
-    buttonGroup: css({
+    drawerContainer: css({
+      display: 'flex',
+      flexDirection: 'column',
+      height: '100%',
+    }),
+    treeContainer: css({
+      display: 'flex',
+      flexDirection: 'column',
+      maxHeight: '100%',
+      overflowY: 'hidden',
+      // Fix for top level search outline overflow due to scrollbars
+      paddingLeft: theme.spacing(0.5),
+    }),
+    buttonsContainer: css({
       display: 'flex',
       gap: theme.spacing(1),
       marginTop: theme.spacing(8),
diff --git a/public/app/features/scopes/internal/ScopesTree.tsx b/public/app/features/scopes/internal/ScopesTree.tsx
index 6f97a7e9b83..d4116f6ba1e 100644
--- a/public/app/features/scopes/internal/ScopesTree.tsx
+++ b/public/app/features/scopes/internal/ScopesTree.tsx
@@ -1,11 +1,11 @@
-import { groupBy } from 'lodash';
+import { Dictionary, groupBy } from 'lodash';
 import { useMemo } from 'react';
 
 import { ScopesTreeHeadline } from './ScopesTreeHeadline';
 import { ScopesTreeItem } from './ScopesTreeItem';
 import { ScopesTreeLoading } from './ScopesTreeLoading';
 import { ScopesTreeSearch } from './ScopesTreeSearch';
-import { NodeReason, NodesMap, OnNodeSelectToggle, OnNodeUpdate, TreeScope } from './types';
+import { Node, NodeReason, NodesMap, OnNodeSelectToggle, OnNodeUpdate, TreeScope } from './types';
 
 export interface ScopesTreeProps {
   nodes: NodesMap;
@@ -30,7 +30,8 @@ export function ScopesTree({
   const isNodeLoading = loadingNodeName === nodeId;
   const scopeNames = scopes.map(({ scopeName }) => scopeName);
   const anyChildExpanded = childNodes.some(({ isExpanded }) => isExpanded);
-  const groupedNodes = useMemo(() => groupBy(childNodes, 'reason'), [childNodes]);
+  const groupedNodes: Dictionary<Node[]> = useMemo(() => groupBy(childNodes, 'reason'), [childNodes]);
+  const isLastExpandedNode = !anyChildExpanded && node.isExpanded;
 
   return (
     <>
@@ -44,11 +45,12 @@ export function ScopesTree({
       <ScopesTreeLoading isNodeLoading={isNodeLoading}>
         <ScopesTreeItem
           anyChildExpanded={anyChildExpanded}
-          isNodeLoading={isNodeLoading}
+          groupedNodes={groupedNodes}
+          isLastExpandedNode={isLastExpandedNode}
           loadingNodeName={loadingNodeName}
           node={node}
           nodePath={nodePath}
-          nodes={groupedNodes[NodeReason.Persisted] ?? []}
+          nodeReason={NodeReason.Persisted}
           scopes={scopes}
           scopeNames={scopeNames}
           type="persisted"
@@ -64,11 +66,12 @@ export function ScopesTree({
 
         <ScopesTreeItem
           anyChildExpanded={anyChildExpanded}
-          isNodeLoading={isNodeLoading}
+          groupedNodes={groupedNodes}
+          isLastExpandedNode={isLastExpandedNode}
           loadingNodeName={loadingNodeName}
           node={node}
           nodePath={nodePath}
-          nodes={groupedNodes[NodeReason.Result] ?? []}
+          nodeReason={NodeReason.Result}
           scopes={scopes}
           scopeNames={scopeNames}
           type="result"
diff --git a/public/app/features/scopes/internal/ScopesTreeItem.tsx b/public/app/features/scopes/internal/ScopesTreeItem.tsx
index 611e0851a68..6d310688e74 100644
--- a/public/app/features/scopes/internal/ScopesTreeItem.tsx
+++ b/public/app/features/scopes/internal/ScopesTreeItem.tsx
@@ -1,19 +1,21 @@
-import { css } from '@emotion/css';
+import { css, cx } from '@emotion/css';
+import { Dictionary } from 'lodash';
 
 import { GrafanaTheme2 } from '@grafana/data';
-import { Checkbox, Icon, RadioButtonDot, useStyles2 } from '@grafana/ui';
+import { Checkbox, CustomScrollbar, Icon, RadioButtonDot, useStyles2 } from '@grafana/ui';
 import { t } from 'app/core/internationalization';
 
 import { ScopesTree } from './ScopesTree';
-import { Node, OnNodeSelectToggle, OnNodeUpdate, TreeScope } from './types';
+import { Node, NodeReason, OnNodeSelectToggle, OnNodeUpdate, TreeScope } from './types';
 
 export interface ScopesTreeItemProps {
   anyChildExpanded: boolean;
-  isNodeLoading: boolean;
+  groupedNodes: Dictionary<Node[]>;
+  isLastExpandedNode: boolean;
   loadingNodeName: string | undefined;
   node: Node;
   nodePath: string[];
-  nodes: Node[];
+  nodeReason: NodeReason;
   scopeNames: string[];
   scopes: TreeScope[];
   type: 'persisted' | 'result';
@@ -23,10 +25,12 @@ export interface ScopesTreeItemProps {
 
 export function ScopesTreeItem({
   anyChildExpanded,
+  groupedNodes,
+  isLastExpandedNode,
   loadingNodeName,
   node,
   nodePath,
-  nodes,
+  nodeReason,
   scopeNames,
   scopes,
   type,
@@ -35,8 +39,14 @@ export function ScopesTreeItem({
 }: ScopesTreeItemProps) {
   const styles = useStyles2(getStyles);
 
-  return (
-    <div role="tree">
+  const nodes = groupedNodes[nodeReason] || [];
+
+  if (nodes.length === 0) {
+    return null;
+  }
+
+  const children = (
+    <div role="tree" className={anyChildExpanded ? styles.expandedContainer : undefined}>
       {nodes.map((childNode) => {
         const isSelected = childNode.isSelectable && scopeNames.includes(childNode.linkId!);
 
@@ -49,8 +59,13 @@ export function ScopesTreeItem({
         const radioName = childNodePath.join('.');
 
         return (
-          <div key={childNode.name} role="treeitem" aria-selected={childNode.isExpanded}>
-            <div className={styles.title}>
+          <div
+            key={childNode.name}
+            role="treeitem"
+            aria-selected={childNode.isExpanded}
+            className={anyChildExpanded ? styles.expandedContainer : undefined}
+          >
+            <div className={cx(styles.title, childNode.isSelectable && !childNode.isExpanded && styles.titlePadding)}>
               {childNode.isSelectable && !childNode.isExpanded ? (
                 node.disableMultiSelect ? (
                   <RadioButtonDot
@@ -111,10 +126,28 @@ export function ScopesTreeItem({
       })}
     </div>
   );
+
+  if (isLastExpandedNode) {
+    return (
+      <CustomScrollbar
+        autoHeightMin={`${Math.min(5, nodes.length) * 30}px`}
+        autoHeightMax={nodeReason === NodeReason.Persisted ? `${Math.min(5, nodes.length) * 30}px` : '100%'}
+      >
+        {children}
+      </CustomScrollbar>
+    );
+  }
+
+  return children;
 }
 
 const getStyles = (theme: GrafanaTheme2) => {
   return {
+    expandedContainer: css({
+      display: 'flex',
+      flexDirection: 'column',
+      maxHeight: '100%',
+    }),
     title: css({
       alignItems: 'center',
       display: 'flex',
@@ -127,6 +160,10 @@ const getStyles = (theme: GrafanaTheme2) => {
         gap: 0,
       }),
     }),
+    titlePadding: css({
+      // Fix for checkboxes and radios outline overflow due to scrollbars
+      paddingLeft: theme.spacing(0.5),
+    }),
     expand: css({
       alignItems: 'center',
       background: 'none',
@@ -137,6 +174,10 @@ const getStyles = (theme: GrafanaTheme2) => {
       padding: 0,
     }),
     children: css({
+      display: 'flex',
+      flexDirection: 'column',
+      overflowY: 'hidden',
+      maxHeight: '100%',
       paddingLeft: theme.spacing(4),
     }),
   };
diff --git a/public/app/features/scopes/internal/ScopesTreeSearch.tsx b/public/app/features/scopes/internal/ScopesTreeSearch.tsx
index e0962914f71..180a0d23229 100644
--- a/public/app/features/scopes/internal/ScopesTreeSearch.tsx
+++ b/public/app/features/scopes/internal/ScopesTreeSearch.tsx
@@ -57,6 +57,10 @@ const getStyles = (theme: GrafanaTheme2) => {
   return {
     input: css({
       margin: theme.spacing(1, 0),
+      minHeight: theme.spacing(4),
+      height: theme.spacing(4),
+      maxHeight: theme.spacing(4),
+      width: `calc(100% - ${theme.spacing(0.5)})`,
     }),
   };
 };