diff --git a/packages/grafana-ui/src/components/DataLinks/DataLinkInput.tsx b/packages/grafana-ui/src/components/DataLinks/DataLinkInput.tsx
index 4a4b9ab277c..2472573fcf9 100644
--- a/packages/grafana-ui/src/components/DataLinks/DataLinkInput.tsx
+++ b/packages/grafana-ui/src/components/DataLinks/DataLinkInput.tsx
@@ -18,6 +18,7 @@ import { SCHEMA } from '../../utils/slate';
 import { useStyles2 } from '../../themes';
 import { DataLinkBuiltInVars, GrafanaThemeV2, VariableOrigin, VariableSuggestion } from '@grafana/data';
 import { getInputStyles } from '../Input/Input';
+import CustomScrollbar from '../CustomScrollbar/CustomScrollbar';
 
 const modulo = (a: number, n: number) => a - n * Math.floor(a / n);
 
@@ -81,6 +82,12 @@ export const DataLinkInput: React.FC<DataLinkInputProps> = memo(
     const stateRef = useRef({ showingSuggestions, suggestions, suggestionsIndex, linkUrl, onChange });
     stateRef.current = { showingSuggestions, suggestions, suggestionsIndex, linkUrl, onChange };
 
+    // Used to get the height of the suggestion elements in order to scroll to them.
+    const activeRef = useRef<HTMLDivElement>(null);
+    const activeIndexPosition = useMemo(() => getElementPosition(activeRef.current, suggestionsIndex), [
+      suggestionsIndex,
+    ]);
+
     // SelectionReference is used to position the variables suggestion relatively to current DOM selection
     const selectionRef = useMemo(() => new SelectionReference(), []);
 
@@ -172,12 +179,15 @@ export const DataLinkInput: React.FC<DataLinkInputProps> = memo(
                   {({ ref, style, placement }) => {
                     return (
                       <div ref={ref} style={style} data-placement={placement}>
-                        <DataLinkSuggestions
-                          suggestions={stateRef.current.suggestions}
-                          onSuggestionSelect={onVariableSelect}
-                          onClose={() => setShowingSuggestions(false)}
-                          activeIndex={suggestionsIndex}
-                        />
+                        <CustomScrollbar scrollTop={activeIndexPosition} autoHeightMax="300px">
+                          <DataLinkSuggestions
+                            activeRef={activeRef}
+                            suggestions={stateRef.current.suggestions}
+                            onSuggestionSelect={onVariableSelect}
+                            onClose={() => setShowingSuggestions(false)}
+                            activeIndex={suggestionsIndex}
+                          />
+                        </CustomScrollbar>
                       </div>
                     );
                   }}
@@ -208,3 +218,7 @@ export const DataLinkInput: React.FC<DataLinkInputProps> = memo(
 );
 
 DataLinkInput.displayName = 'DataLinkInput';
+
+function getElementPosition(suggestionElement: HTMLElement | null, activeIndex: number) {
+  return (suggestionElement?.clientHeight ?? 0) * activeIndex;
+}
diff --git a/packages/grafana-ui/src/components/DataLinks/DataLinkSuggestions.tsx b/packages/grafana-ui/src/components/DataLinks/DataLinkSuggestions.tsx
index 2743eca5898..b104309964f 100644
--- a/packages/grafana-ui/src/components/DataLinks/DataLinkSuggestions.tsx
+++ b/packages/grafana-ui/src/components/DataLinks/DataLinkSuggestions.tsx
@@ -7,6 +7,7 @@ import { List } from '../index';
 import { useStyles2 } from '../../themes';
 
 interface DataLinkSuggestionsProps {
+  activeRef?: React.RefObject<HTMLDivElement>;
   suggestions: VariableSuggestion[];
   activeIndex: number;
   onSuggestionSelect: (suggestion: VariableSuggestion) => void;
@@ -23,7 +24,6 @@ const getStyles = (theme: GrafanaThemeV2) => {
     `,
     wrapper: css`
       background: ${theme.colors.background.primary};
-      z-index: 1;
       width: 250px;
       box-shadow: 0 5px 10px 0 ${theme.shadows.z1};
     `,
@@ -100,10 +100,11 @@ DataLinkSuggestions.displayName = 'DataLinkSuggestions';
 interface DataLinkSuggestionsListProps extends DataLinkSuggestionsProps {
   label: string;
   activeIndexOffset: number;
+  activeRef?: React.RefObject<HTMLDivElement>;
 }
 
 const DataLinkSuggestionsList: React.FC<DataLinkSuggestionsListProps> = React.memo(
-  ({ activeIndex, activeIndexOffset, label, onClose, onSuggestionSelect, suggestions }) => {
+  ({ activeIndex, activeIndexOffset, label, onClose, onSuggestionSelect, suggestions, activeRef: selectedRef }) => {
     const styles = useStyles2(getStyles);
 
     return (
@@ -112,9 +113,11 @@ const DataLinkSuggestionsList: React.FC<DataLinkSuggestionsListProps> = React.me
           className={styles.list}
           items={suggestions}
           renderItem={(item, index) => {
+            const isActive = index + activeIndexOffset === activeIndex;
             return (
               <div
-                className={cx(styles.item, index + activeIndexOffset === activeIndex && styles.activeItem)}
+                className={cx(styles.item, isActive && styles.activeItem)}
+                ref={isActive ? selectedRef : undefined}
                 onClick={() => {
                   onSuggestionSelect(item);
                 }}