diff --git a/pkg/services/publicdashboards/service/service.go b/pkg/services/publicdashboards/service/service.go
index 6862fe87f74..1c0e070d535 100644
--- a/pkg/services/publicdashboards/service/service.go
+++ b/pkg/services/publicdashboards/service/service.go
@@ -96,16 +96,12 @@ func (pd *PublicDashboardServiceImpl) GetPublicDashboardConfig(ctx context.Conte
 // SavePublicDashboardConfig is a helper method to persist the sharing config
 // to the database. It handles validations for sharing config and persistence
 func (pd *PublicDashboardServiceImpl) SavePublicDashboardConfig(ctx context.Context, u *user.SignedInUser, dto *SavePublicDashboardConfigDTO) (*PublicDashboard, error) {
+	// validate if the dashboard exists
 	dashboard, err := pd.GetDashboard(ctx, dto.DashboardUid)
 	if err != nil {
 		return nil, err
 	}
 
-	err = validation.ValidateSavePublicDashboard(dto, dashboard)
-	if err != nil {
-		return nil, err
-	}
-
 	// set default value for time settings
 	if dto.PublicDashboard.TimeSettings == nil {
 		dto.PublicDashboard.TimeSettings = &TimeSettings{}
@@ -120,6 +116,10 @@ func (pd *PublicDashboardServiceImpl) SavePublicDashboardConfig(ctx context.Cont
 	// save changes
 	var pubdashUid string
 	if existingPubdash == nil {
+		err = validation.ValidateSavePublicDashboard(dto, dashboard)
+		if err != nil {
+			return nil, err
+		}
 		pubdashUid, err = pd.savePublicDashboardConfig(ctx, dto)
 	} else {
 		pubdashUid, err = pd.updatePublicDashboardConfig(ctx, dto)
diff --git a/public/app/features/dashboard/components/ShareModal/SharePublicDashboard/Configuration.tsx b/public/app/features/dashboard/components/ShareModal/SharePublicDashboard/Configuration.tsx
index 46cf7fc7eca..e09f0564954 100644
--- a/public/app/features/dashboard/components/ShareModal/SharePublicDashboard/Configuration.tsx
+++ b/public/app/features/dashboard/components/ShareModal/SharePublicDashboard/Configuration.tsx
@@ -13,14 +13,12 @@ import { getTimeRange } from 'app/features/dashboard/utils/timeRange';
 export const Configuration = ({
   disabled,
   isPubDashEnabled,
-  hasTemplateVariables,
   onToggleEnabled,
   dashboard,
 }: {
   disabled: boolean;
   isPubDashEnabled?: boolean;
   onToggleEnabled: () => void;
-  hasTemplateVariables: boolean;
   dashboard: DashboardModel;
 }) => {
   const selectors = e2eSelectors.pages.ShareDashboardModal.PublicDashboard;
@@ -41,7 +39,6 @@ export const Configuration = ({
           <Layout orientation={isDesktop ? 0 : 1} spacing="xs" justify="space-between">
             <Label description="Configures whether current dashboard can be available publicly">Enabled</Label>
             <Switch
-              disabled={hasTemplateVariables}
               data-testid={selectors.EnableSwitch}
               value={isPubDashEnabled}
               onChange={() => {
diff --git a/public/app/features/dashboard/components/ShareModal/SharePublicDashboard/SharePublicDashboard.tsx b/public/app/features/dashboard/components/ShareModal/SharePublicDashboard/SharePublicDashboard.tsx
index fab54be0e4f..bd17032e58c 100644
--- a/public/app/features/dashboard/components/ShareModal/SharePublicDashboard/SharePublicDashboard.tsx
+++ b/public/app/features/dashboard/components/ShareModal/SharePublicDashboard/SharePublicDashboard.tsx
@@ -5,8 +5,6 @@ import { GrafanaTheme2 } from '@grafana/data/src';
 import { selectors as e2eSelectors } from '@grafana/e2e-selectors/src';
 import { reportInteraction } from '@grafana/runtime/src';
 import { Alert, Button, ClipboardButton, Field, HorizontalGroup, Input, useStyles2, Spinner } from '@grafana/ui/src';
-import { notifyApp } from 'app/core/actions';
-import { createErrorNotification } from 'app/core/copy/appNotification';
 import { contextSrv } from 'app/core/services/context_srv';
 import { useGetConfigQuery, useSaveConfigMutation } from 'app/features/dashboard/api/publicDashboardApi';
 import { AcknowledgeCheckboxes } from 'app/features/dashboard/components/ShareModal/SharePublicDashboard/AcknowledgeCheckboxes';
@@ -20,7 +18,6 @@ import {
 } from 'app/features/dashboard/components/ShareModal/SharePublicDashboard/SharePublicDashboardUtils';
 import { ShareModalTabProps } from 'app/features/dashboard/components/ShareModal/types';
 import { isOrgAdmin } from 'app/features/plugins/admin/permissions';
-import { dispatch } from 'app/store/store';
 import { AccessControlAction } from 'app/types';
 
 interface Props extends ShareModalTabProps {}
@@ -81,13 +78,6 @@ export const SharePublicDashboard = (props: Props) => {
   const onSavePublicConfig = () => {
     reportInteraction('grafana_dashboards_public_create_clicked');
 
-    if (dashboardHasTemplateVariables(dashboardVariables)) {
-      dispatch(
-        notifyApp(createErrorNotification('This dashboard cannot be made public because it has template variables'))
-      );
-      return;
-    }
-
     saveConfig({
       dashboard: props.dashboard,
       payload: { ...publicDashboard!, isEnabled: enabledSwitch.isEnabled },
@@ -111,7 +101,7 @@ export const SharePublicDashboard = (props: Props) => {
         {isFetchingLoading && <Spinner />}
       </HorizontalGroup>
       <div className={styles.content}>
-        {dashboardHasTemplateVariables(dashboardVariables) ? (
+        {dashboardHasTemplateVariables(dashboardVariables) && !publicDashboardPersisted(publicDashboard) ? (
           <Alert
             severity="warning"
             title="dashboard cannot be public"
@@ -140,7 +130,6 @@ export const SharePublicDashboard = (props: Props) => {
               onToggleEnabled={() =>
                 setEnabledSwitch((prevState) => ({ isEnabled: !prevState.isEnabled, wasTouched: true }))
               }
-              hasTemplateVariables={dashboardHasTemplateVariables(dashboardVariables)}
             />
             {publicDashboardPersisted(publicDashboard) && enabledSwitch.isEnabled && (
               <Field label="Link URL" className={styles.publicUrl}>
@@ -163,11 +152,18 @@ export const SharePublicDashboard = (props: Props) => {
               </Field>
             )}
             {hasWritePermissions ? (
-              props.dashboard.hasUnsavedChanges() && (
+              props.dashboard.hasUnsavedChanges() ? (
                 <Alert
                   title="Please save your dashboard changes before updating the public configuration"
                   severity="warning"
                 />
+              ) : (
+                dashboardHasTemplateVariables(dashboardVariables) && (
+                  <Alert
+                    title="This public dashboard may not work since it uses template variables"
+                    severity="warning"
+                  />
+                )
               )
             ) : (
               <Alert title="You don't have permissions to create or update a public dashboard" severity="warning" />