diff --git a/package.json b/package.json
index 7d1a7357f73..f19661282a5 100644
--- a/package.json
+++ b/package.json
@@ -244,7 +244,7 @@
     "@grafana/lezer-traceql": "0.0.4",
     "@grafana/monaco-logql": "^0.0.7",
     "@grafana/runtime": "workspace:*",
-    "@grafana/scenes": "0.24.2",
+    "@grafana/scenes": "^0.25.0",
     "@grafana/schema": "workspace:*",
     "@grafana/ui": "workspace:*",
     "@kusto/monaco-kusto": "^7.4.0",
diff --git a/public/app/features/scenes/dashboard/DashboardScene.tsx b/public/app/features/scenes/dashboard/DashboardScene.tsx
index 42154d1e0cc..e67047351c4 100644
--- a/public/app/features/scenes/dashboard/DashboardScene.tsx
+++ b/public/app/features/scenes/dashboard/DashboardScene.tsx
@@ -6,6 +6,7 @@ import {
   getUrlSyncManager,
   sceneGraph,
   SceneGridItem,
+  SceneGridLayout,
   SceneObject,
   SceneObjectBase,
   SceneObjectState,
@@ -17,6 +18,7 @@ import {
 import appEvents from 'app/core/app_events';
 
 import { DashboardSceneRenderer } from './DashboardSceneRenderer';
+import { forceRenderChildren } from './utils';
 
 export interface DashboardSceneState extends SceneObjectState {
   title: string;
@@ -75,12 +77,24 @@ export class DashboardScene extends SceneObjectBase<DashboardSceneState> {
 
   onEnterEditMode = () => {
     this.setState({ isEditing: true });
+
+    // Make grid draggable
+    if (this.state.body instanceof SceneGridLayout) {
+      this.state.body.setState({ isDraggable: true, isResizable: true });
+      forceRenderChildren(this.state.body, true);
+    }
   };
 
   onDiscard = () => {
     // TODO open confirm modal if dirty
     // TODO actually discard changes
     this.setState({ isEditing: false });
+
+    // Disable grid dragging
+    if (this.state.body instanceof SceneGridLayout) {
+      this.state.body.setState({ isDraggable: false, isResizable: false });
+      forceRenderChildren(this.state.body, true);
+    }
   };
 
   onCloseInspectDrawer = () => {
diff --git a/public/app/features/scenes/dashboard/utils.ts b/public/app/features/scenes/dashboard/utils.ts
index 418c793a3b0..5939892c0fb 100644
--- a/public/app/features/scenes/dashboard/utils.ts
+++ b/public/app/features/scenes/dashboard/utils.ts
@@ -24,3 +24,23 @@ export function activateFullSceneTree(scene: SceneObject): SceneDeactivationHand
     }
   };
 }
+
+/**
+ * Force re-render children. This is useful in some edge case scenarios when
+ * children deep down the scene graph needs to be re-rendered when some parent state change.
+ *
+ * Example could be isEditing bool flag or a layout IsDraggable state flag.
+ *
+ * @param model The model whose children should be re-rendered. It does not force render this model, only the children.
+ * @param recursive if it should keep force rendering down to leaf nodess
+ */
+export function forceRenderChildren(model: SceneObject, recursive?: boolean) {
+  model.forEachChild((child) => {
+    if (!child.isActive) {
+      return;
+    }
+
+    child.forceRender();
+    forceRenderChildren(child, recursive);
+  });
+}
diff --git a/yarn.lock b/yarn.lock
index 141589bb1f7..6c0c75ae464 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -3930,9 +3930,9 @@ __metadata:
   languageName: unknown
   linkType: soft
 
-"@grafana/scenes@npm:0.24.2":
-  version: 0.24.2
-  resolution: "@grafana/scenes@npm:0.24.2"
+"@grafana/scenes@npm:^0.25.0":
+  version: 0.25.0
+  resolution: "@grafana/scenes@npm:0.25.0"
   dependencies:
     "@grafana/e2e-selectors": 10.0.2
     react-grid-layout: 1.3.4
@@ -3944,7 +3944,7 @@ __metadata:
     "@grafana/runtime": 10.0.3
     "@grafana/schema": 10.0.3
     "@grafana/ui": 10.0.3
-  checksum: 26797a4c90ff3b6d2e80f3da1d3be9721a371d9d9569e443dad14c81eba8413ef3fff78ab85602f9bfe3e243d7555a834134ac0c1c8542c23b9cc572bd40ad0a
+  checksum: ab81d18bb65b0b5d612708fbd9351022141248b476009bdde01660cce1747bd0724fdf599842127f48feea49b31858dc64e45af2638d90fd3b09d59e350f79e4
   languageName: node
   linkType: hard
 
@@ -19249,7 +19249,7 @@ __metadata:
     "@grafana/lezer-traceql": 0.0.4
     "@grafana/monaco-logql": ^0.0.7
     "@grafana/runtime": "workspace:*"
-    "@grafana/scenes": 0.24.2
+    "@grafana/scenes": ^0.25.0
     "@grafana/schema": "workspace:*"
     "@grafana/toolkit": "workspace:*"
     "@grafana/tsconfig": ^1.3.0-rc1