diff --git a/public/app/core/components/NavBar/Next/NavBarNext.test.tsx b/public/app/core/components/NavBar/Next/NavBarNext.test.tsx
index 5d0788750b9..9c3c96f4de1 100644
--- a/public/app/core/components/NavBar/Next/NavBarNext.test.tsx
+++ b/public/app/core/components/NavBar/Next/NavBarNext.test.tsx
@@ -36,6 +36,17 @@ const setup = () => {
 };
 
 describe('Render', () => {
+  beforeEach(() => {
+    // IntersectionObserver isn't available in test environment
+    const mockIntersectionObserver = jest.fn();
+    mockIntersectionObserver.mockReturnValue({
+      observe: () => null,
+      unobserve: () => null,
+      disconnect: () => null,
+    });
+    window.IntersectionObserver = mockIntersectionObserver;
+  });
+
   it('should render component', async () => {
     setup();
     const sidemenu = await screen.findByTestId('sidemenu');
diff --git a/public/app/core/components/NavBar/Next/NavBarNext.tsx b/public/app/core/components/NavBar/Next/NavBarNext.tsx
index 4e9992e98d7..1b97427d1a4 100644
--- a/public/app/core/components/NavBar/Next/NavBarNext.tsx
+++ b/public/app/core/components/NavBar/Next/NavBarNext.tsx
@@ -7,7 +7,7 @@ import { useLocation } from 'react-router-dom';
 
 import { GrafanaTheme2, NavModelItem, NavSection } from '@grafana/data';
 import { config, locationService } from '@grafana/runtime';
-import { CustomScrollbar, Icon, IconName, useTheme2 } from '@grafana/ui';
+import { Icon, IconName, useTheme2 } from '@grafana/ui';
 import { Branding } from 'app/core/components/Branding/Branding';
 import { getKioskMode } from 'app/core/navigation/kiosk';
 import { KioskMode, StoreState } from 'app/types';
@@ -20,6 +20,7 @@ import NavBarItem from './NavBarItem';
 import { NavBarItemWithoutMenu } from './NavBarItemWithoutMenu';
 import { NavBarMenu } from './NavBarMenu';
 import { NavBarMenuPortalContainer } from './NavBarMenuPortalContainer';
+import { NavBarScrollContainer } from './NavBarScrollContainer';
 import { NavBarToggle } from './NavBarToggle';
 
 const onOpenSearch = () => {
@@ -103,7 +104,7 @@ export const NavBarNext = React.memo(() => {
                 <Branding.MenuLogo />
               </NavBarItemWithoutMenu>
 
-              <CustomScrollbar hideVerticalTrack hideHorizontalTrack>
+              <NavBarScrollContainer>
                 <NavBarItem className={styles.search} isActive={activeItem === searchItem} link={searchItem}>
                   <Icon name="search" size="xl" />
                 </NavBarItem>
@@ -130,7 +131,7 @@ export const NavBarNext = React.memo(() => {
                       {link.img && <img src={link.img} alt={`${link.text} logo`} />}
                     </NavBarItem>
                   ))}
-              </CustomScrollbar>
+              </NavBarScrollContainer>
 
               {configItems.map((link, index) => (
                 <NavBarItem
diff --git a/public/app/core/components/NavBar/Next/NavBarScrollContainer.tsx b/public/app/core/components/NavBar/Next/NavBarScrollContainer.tsx
new file mode 100644
index 00000000000..91cc70fb680
--- /dev/null
+++ b/public/app/core/components/NavBar/Next/NavBarScrollContainer.tsx
@@ -0,0 +1,130 @@
+import { css, cx } from '@emotion/css';
+import React, { useEffect, useRef, useState } from 'react';
+
+import { GrafanaTheme2 } from '@grafana/data';
+import { CustomScrollbar, Icon, useTheme2 } from '@grafana/ui';
+
+export interface Props {
+  children: React.ReactNode;
+}
+
+export const NavBarScrollContainer = ({ children }: Props) => {
+  const [showScrollTopIndicator, setShowTopScrollIndicator] = useState(false);
+  const [showScrollBottomIndicator, setShowBottomScrollIndicator] = useState(false);
+  const scrollTopMarker = useRef<HTMLDivElement>(null);
+  const scrollBottomMarker = useRef<HTMLDivElement>(null);
+  const theme = useTheme2();
+  const styles = getStyles(theme);
+
+  // Here we observe the top and bottom markers to determine if we should show the scroll indicators
+  useEffect(() => {
+    const intersectionObserver = new IntersectionObserver((entries) => {
+      entries.forEach((entry) => {
+        if (entry.target === scrollTopMarker.current) {
+          setShowTopScrollIndicator(!entry.isIntersecting);
+        } else if (entry.target === scrollBottomMarker.current) {
+          setShowBottomScrollIndicator(!entry.isIntersecting);
+        }
+      });
+    });
+    [scrollTopMarker, scrollBottomMarker].forEach((ref) => {
+      if (ref.current) {
+        intersectionObserver.observe(ref.current);
+      }
+    });
+    return () => intersectionObserver.disconnect();
+  }, []);
+
+  return (
+    <CustomScrollbar className={styles.scrollContainer} hideVerticalTrack hideHorizontalTrack>
+      <div
+        className={cx(styles.scrollTopIndicator, {
+          [styles.scrollIndicatorVisible]: showScrollTopIndicator,
+        })}
+      >
+        <Icon className={styles.scrollTopIcon} name="angle-up" />
+      </div>
+      <div className={styles.scrollContent}>
+        <div className={styles.scrollTopMarker} ref={scrollTopMarker}></div>
+        {children}
+        <div className={styles.scrollBottomMarker} ref={scrollBottomMarker}></div>
+      </div>
+      <div
+        className={cx(styles.scrollBottomIndicator, {
+          [styles.scrollIndicatorVisible]: showScrollBottomIndicator,
+        })}
+      >
+        <Icon className={styles.scrollBottomIcon} name="angle-down" />
+      </div>
+    </CustomScrollbar>
+  );
+};
+
+NavBarScrollContainer.displayName = 'NavBarScrollContainer';
+
+const getStyles = (theme: GrafanaTheme2) => ({
+  'scrollTopMarker, scrollBottomMarker': css({
+    height: theme.spacing(1),
+    left: 0,
+    position: 'absolute',
+    pointerEvents: 'none',
+    right: 0,
+  }),
+  scrollTopMarker: css({
+    top: 0,
+  }),
+  scrollBottomMarker: css({
+    bottom: 0,
+  }),
+  scrollContent: css({
+    position: 'relative',
+  }),
+  // override the scroll container position so that the scroll indicators
+  // are positioned at the top and bottom correctly.
+  // react-custom-scrollbars doesn't provide any way for us to hook in nicely,
+  // so we have to override with !important. feelsbad.
+  scrollContainer: css`
+    .scrollbar-view {
+      position: static !important;
+    }
+  `,
+  scrollTopIndicator: css({
+    background: `linear-gradient(0deg, transparent, ${theme.colors.background.canvas})`,
+    height: theme.spacing(6),
+    left: 0,
+    opacity: 0,
+    pointerEvents: 'none',
+    position: 'absolute',
+    right: 0,
+    top: 0,
+    transition: theme.transitions.create('opacity'),
+    zIndex: theme.zIndex.sidemenu,
+  }),
+  scrollBottomIndicator: css({
+    background: `linear-gradient(0deg, ${theme.colors.background.canvas}, transparent)`,
+    bottom: 0,
+    height: theme.spacing(6),
+    left: 0,
+    opacity: 0,
+    pointerEvents: 'none',
+    position: 'absolute',
+    right: 0,
+    transition: theme.transitions.create('opacity'),
+    zIndex: theme.zIndex.sidemenu,
+  }),
+  scrollIndicatorVisible: css({
+    opacity: 1,
+  }),
+  scrollTopIcon: css({
+    left: '50%',
+    position: 'absolute',
+    top: 0,
+    transform: 'translateX(-50%)',
+  }),
+  scrollBottomIcon: css({
+    bottom: 0,
+    left: '50%',
+    position: 'absolute',
+    transform: 'translateX(-50%)',
+  }),
+});