diff --git a/public/app/features/alerting/unified/rule-list/components/RuleLocation.test.tsx b/public/app/features/alerting/unified/rule-list/components/RuleLocation.test.tsx
new file mode 100644
index 00000000000..dc032fb41e3
--- /dev/null
+++ b/public/app/features/alerting/unified/rule-list/components/RuleLocation.test.tsx
@@ -0,0 +1,117 @@
+import { render, screen } from 'test/test-utils';
+import { byRole } from 'testing-library-selector';
+
+import { PromApplication } from 'app/types/unified-alerting-dto';
+
+import { NO_GROUP_PREFIX } from '../../utils/rules';
+
+import { RuleLocation } from './RuleLocation';
+
+const ui = {
+  groupLink: (name: string) => byRole('link', { name }),
+};
+
+describe('RuleLocation', () => {
+  describe('ungrouped rules', () => {
+    it('should display "Ungrouped" text for groups with no_group_for_rule_ prefix', () => {
+      const { container } = render(
+        <RuleLocation namespace="TestNamespace" group={`${NO_GROUP_PREFIX}test-rule-uid`} application="grafana" />
+      );
+
+      expect(container).toHaveTextContent('Ungrouped');
+      expect(container).not.toHaveTextContent(`${NO_GROUP_PREFIX}test-rule-uid`);
+    });
+
+    it('should render "Ungrouped" as link when groupUrl is provided', () => {
+      render(
+        <RuleLocation
+          namespace="TestNamespace"
+          group={`${NO_GROUP_PREFIX}test-rule-uid`}
+          groupUrl="/alerting/grafana/namespaces/folder-123/groups/test-group/view"
+          application="grafana"
+        />
+      );
+
+      const link = ui.groupLink('Ungrouped').get();
+      expect(link).toHaveAttribute('href', '/alerting/grafana/namespaces/folder-123/groups/test-group/view');
+    });
+
+    it('should render "Ungrouped" as text when groupUrl is not provided', () => {
+      const { container } = render(
+        <RuleLocation namespace="TestNamespace" group={`${NO_GROUP_PREFIX}test-rule-uid`} application="grafana" />
+      );
+
+      expect(screen.queryByRole('link')).not.toBeInTheDocument();
+      expect(container).toHaveTextContent('Ungrouped');
+    });
+  });
+
+  describe('grouped rules', () => {
+    it('should display normal group name for regular groups', () => {
+      const { container } = render(<RuleLocation namespace="TestNamespace" group="MyGroup" application="grafana" />);
+
+      expect(container).toHaveTextContent('MyGroup');
+      expect(container).not.toHaveTextContent('Ungrouped');
+    });
+
+    it('should render group name as link when groupUrl is provided', () => {
+      render(
+        <RuleLocation
+          namespace="TestNamespace"
+          group="MyGroup"
+          groupUrl="/alerting/grafana/namespaces/folder-123/groups/MyGroup/view"
+          application="grafana"
+        />
+      );
+
+      const link = ui.groupLink('MyGroup').get();
+      expect(link).toHaveAttribute('href', '/alerting/grafana/namespaces/folder-123/groups/MyGroup/view');
+    });
+
+    it('should render group name as text when groupUrl is not provided', () => {
+      const { container } = render(<RuleLocation namespace="TestNamespace" group="MyGroup" application="grafana" />);
+
+      expect(screen.queryByRole('link')).not.toBeInTheDocument();
+      expect(container).toHaveTextContent('MyGroup');
+    });
+  });
+
+  describe('namespace and group display', () => {
+    it('should display namespace and group correctly', () => {
+      const { container } = render(<RuleLocation namespace="TestNamespace" group="MyGroup" application="grafana" />);
+
+      expect(container).toHaveTextContent('TestNamespace');
+      expect(container).toHaveTextContent('MyGroup');
+    });
+  });
+
+  describe('grafana application', () => {
+    it('should not render data source tooltip for grafana application', () => {
+      render(<RuleLocation namespace="TestNamespace" group="MyGroup" application="grafana" />);
+
+      expect(screen.queryByRole('tooltip')).not.toBeInTheDocument();
+    });
+  });
+
+  describe('datasource application', () => {
+    const mockRulesSource = {
+      uid: 'prometheus-1',
+      name: 'Prometheus',
+      ruleSourceType: 'datasource' as const,
+    };
+
+    it('should render content for datasource application', () => {
+      const { container } = render(
+        <RuleLocation
+          namespace="TestNamespace"
+          group="MyGroup"
+          rulesSource={mockRulesSource}
+          application={PromApplication.Prometheus}
+        />
+      );
+
+      expect(container).toHaveTextContent('TestNamespace');
+      expect(container).toHaveTextContent('MyGroup');
+    });
+  });
+});
diff --git a/public/app/features/alerting/unified/rule-list/components/RuleLocation.tsx b/public/app/features/alerting/unified/rule-list/components/RuleLocation.tsx
index 80376998bf4..b0fda936763 100644
--- a/public/app/features/alerting/unified/rule-list/components/RuleLocation.tsx
+++ b/public/app/features/alerting/unified/rule-list/components/RuleLocation.tsx
@@ -2,6 +2,8 @@ import { Icon, Stack, TextLink, Tooltip } from '@grafana/ui';
 import { RulesSourceIdentifier } from 'app/types/unified-alerting';
 import { RulesSourceApplication } from 'app/types/unified-alerting-dto';
 
+import { isUngroupedRuleGroup } from '../../utils/rules';
+
 import { DataSourceIcon } from './DataSourceIcon';
 
 interface RuleLocationProps {
@@ -12,13 +14,10 @@ interface RuleLocationProps {
   application?: RulesSourceApplication;
 }
 
-const NoGroupPrefix = 'no_group_for_rule_';
-const isNoGroup = (group: string) => group.startsWith(NoGroupPrefix);
-
 export function RuleLocation({ namespace, group, groupUrl, rulesSource, application }: RuleLocationProps) {
   const isGrafanaApp = application === 'grafana';
   const isDataSourceApp = !!rulesSource && !!application && !isGrafanaApp;
-  const groupText = isNoGroup(group) ? 'Ungrouped' : group;
+  const groupText = isUngroupedRuleGroup(group) ? 'Ungrouped' : group;
 
   return (
     <Stack direction="row" alignItems="center" gap={0.5}>