diff --git a/.betterer.results b/.betterer.results
index 74e1cff93f2..10cd3e30550 100644
--- a/.betterer.results
+++ b/.betterer.results
@@ -541,6 +541,9 @@ exports[`better eslint`] = {
       [0, 0, 0, "Do not use any type assertions.", "0"],
       [0, 0, 0, "Do not use any type assertions.", "1"]
     ],
+    "packages/grafana-ui/src/components/Combobox/MultiCombobox.tsx:5381": [
+      [0, 0, 0, "Do not use any type assertions.", "0"]
+    ],
     "packages/grafana-ui/src/components/Combobox/ValuePill.tsx:5381": [
       [0, 0, 0, "No untranslated strings in text props. Wrap text with <Trans /> or use t()", "0"]
     ],
diff --git a/packages/grafana-ui/src/components/Combobox/MultiCombobox.internal.story.tsx b/packages/grafana-ui/src/components/Combobox/MultiCombobox.internal.story.tsx
index f40e9f62bdd..3af44f61d3c 100644
--- a/packages/grafana-ui/src/components/Combobox/MultiCombobox.internal.story.tsx
+++ b/packages/grafana-ui/src/components/Combobox/MultiCombobox.internal.story.tsx
@@ -13,11 +13,11 @@ const meta: Meta<typeof MultiCombobox> = {
 
 const commonArgs = {
   options: [
-    { label: 'Option 1', value: 'option1' },
-    { label: 'Option 2', value: 'option2' },
-    { label: 'Option 3', value: 'option3' },
-    { label: 'Option 4', value: 'option4' },
-    { label: 'Option 5', value: 'option5' },
+    { label: 'wasd - 1', value: 'option1' },
+    { label: 'wasd - 2', value: 'option2' },
+    { label: 'wasd - 3', value: 'option3' },
+    { label: 'asdf - 1', value: 'option4' },
+    { label: 'asdf - 2', value: 'option5' },
   ],
   value: ['option2'],
   placeholder: 'Select multiple options...',
diff --git a/packages/grafana-ui/src/components/Combobox/MultiCombobox.test.tsx b/packages/grafana-ui/src/components/Combobox/MultiCombobox.test.tsx
index 2f44fd1dd11..70be3c4148d 100644
--- a/packages/grafana-ui/src/components/Combobox/MultiCombobox.test.tsx
+++ b/packages/grafana-ui/src/components/Combobox/MultiCombobox.test.tsx
@@ -36,8 +36,8 @@ describe('MultiCombobox', () => {
     const input = screen.getByRole('combobox');
     user.click(input);
     expect(await screen.findByText('A')).toBeInTheDocument();
-    expect(await screen.findByText('B')).toBeInTheDocument();
-    expect(await screen.findByText('C')).toBeInTheDocument();
+    expect(screen.getByText('B')).toBeInTheDocument();
+    expect(screen.getByText('C')).toBeInTheDocument();
   });
 
   it('should render with value', () => {
@@ -85,6 +85,7 @@ describe('MultiCombobox', () => {
         />
       );
     };
+
     render(<ControlledMultiCombobox options={options} value={[]} onChange={onChange} />);
     const input = screen.getByRole('combobox');
     await user.click(input);
@@ -111,4 +112,49 @@ describe('MultiCombobox', () => {
     await user.click(screen.getByRole('combobox'));
     expect(await screen.findByText('d')).toBeInTheDocument();
   });
+
+  describe('all option', () => {
+    it('should render all option', async () => {
+      const options = [
+        { label: 'A', value: 'a' },
+        { label: 'B', value: 'b' },
+        { label: 'C', value: 'c' },
+      ];
+      render(<MultiCombobox width={200} options={options} value={['a']} onChange={jest.fn()} enableAllOption />);
+      const input = screen.getByRole('combobox');
+      await user.click(input);
+      expect(await screen.findByRole('option', { name: 'All' })).toBeInTheDocument();
+    });
+
+    it('should select all option', async () => {
+      const options = [
+        { label: 'A', value: 'a' },
+        { label: 'B', value: 'b' },
+        { label: 'C', value: 'c' },
+      ];
+      const onChange = jest.fn();
+      render(<MultiCombobox width={200} options={options} value={['a']} onChange={onChange} enableAllOption />);
+      const input = screen.getByRole('combobox');
+      await user.click(input);
+      await user.click(await screen.findByText('All'));
+
+      expect(onChange).toHaveBeenCalledWith(['a', 'b', 'c']);
+    });
+
+    it('should deselect all option', async () => {
+      const options = [
+        { label: 'A', value: 'a' },
+        { label: 'B', value: 'b' },
+        { label: 'C', value: 'c' },
+      ];
+      const onChange = jest.fn();
+      render(
+        <MultiCombobox width={200} options={options} value={['a', 'b', 'c']} onChange={onChange} enableAllOption />
+      );
+      const input = screen.getByRole('combobox');
+      await user.click(input);
+      await user.click(await screen.findByRole('option', { name: 'All' }));
+      expect(onChange).toHaveBeenCalledWith([]);
+    });
+  });
 });
diff --git a/packages/grafana-ui/src/components/Combobox/MultiCombobox.tsx b/packages/grafana-ui/src/components/Combobox/MultiCombobox.tsx
index 81abe9f6a00..bb8b9934472 100644
--- a/packages/grafana-ui/src/components/Combobox/MultiCombobox.tsx
+++ b/packages/grafana-ui/src/components/Combobox/MultiCombobox.tsx
@@ -1,9 +1,10 @@
 import { cx } from '@emotion/css';
 import { useVirtualizer } from '@tanstack/react-virtual';
 import { useCombobox, useMultipleSelection } from 'downshift';
-import { useCallback, useEffect, useMemo, useState } from 'react';
+import { useCallback, useMemo, useState } from 'react';
 
 import { useStyles2 } from '../../themes';
+import { t } from '../../utils/i18n';
 import { Checkbox } from '../Forms/Checkbox';
 import { Box } from '../Layout/Box/Box';
 import { Stack } from '../Layout/Stack/Stack';
@@ -20,17 +21,20 @@ import { itemFilter, itemToString } from './filter';
 import { getComboboxStyles, MENU_OPTION_HEIGHT, MENU_OPTION_HEIGHT_DESCRIPTION } from './getComboboxStyles';
 import { getMultiComboboxStyles } from './getMultiComboboxStyles';
 import { useComboboxFloat } from './useComboboxFloat';
-import { useMeasureMulti } from './useMeasureMulti';
+import { MAX_SHOWN_ITEMS, useMeasureMulti } from './useMeasureMulti';
+
+export const ALL_OPTION_VALUE = '__GRAFANA_INTERNAL_MULTICOMBOBOX_ALL_OPTION__';
 
 interface MultiComboboxBaseProps<T extends string | number> extends Omit<ComboboxBaseProps<T>, 'value' | 'onChange'> {
   value?: T[] | Array<ComboboxOption<T>>;
   onChange: (items?: T[]) => void;
+  enableAllOption?: boolean;
 }
 
 export type MultiComboboxProps<T extends string | number> = MultiComboboxBaseProps<T> & AutoSizeConditionals;
 
 export const MultiCombobox = <T extends string | number>(props: MultiComboboxProps<T>) => {
-  const { options, placeholder, onChange, value, width, invalid, loading, disabled } = props;
+  const { options, placeholder, onChange, value, width, enableAllOption, invalid, loading, disabled } = props;
   const isAsync = typeof options === 'function';
 
   const selectedItems = useMemo(() => {
@@ -45,15 +49,30 @@ export const MultiCombobox = <T extends string | number>(props: MultiComboboxPro
   const styles = useStyles2(getComboboxStyles);
   const [inputValue, setInputValue] = useState('');
 
-  const [baseItems, baseSetItems] = useState(isAsync ? [] : options);
+  const allOptionItem = useMemo(() => {
+    return {
+      label:
+        inputValue === ''
+          ? t('multicombobox.all.title', 'All')
+          : t('multicombobox.all.title-filtered', 'All (filtered)'),
+      // Type casting needed to make this work when T is a number
+      value: ALL_OPTION_VALUE,
+    } as ComboboxOption<T>;
+  }, [inputValue]);
 
-  const items = useMemo(() => baseItems.filter(itemFilter(inputValue)), [baseItems, inputValue]);
+  const baseItems = useMemo(() => {
+    return isAsync ? [] : enableAllOption ? [allOptionItem, ...options] : options;
+  }, [options, enableAllOption, allOptionItem, isAsync]);
 
-  // TODO: Improve this with async
-  useEffect(() => {
-    baseSetItems(isAsync ? [] : options);
-  }, [options, isAsync]);
+  const items = useMemo(() => {
+    const newItems = baseItems.filter(itemFilter(inputValue));
 
+    if (enableAllOption && newItems.length === 1 && newItems[0] === allOptionItem) {
+      return [];
+    }
+
+    return newItems;
+  }, [baseItems, inputValue, enableAllOption, allOptionItem]);
   const [isOpen, setIsOpen] = useState(false);
 
   const { inputRef: containerRef, floatingRef, floatStyles, scrollRef } = useComboboxFloat(items, isOpen);
@@ -125,6 +144,25 @@ export const MultiCombobox = <T extends string | number>(props: MultiComboboxPro
       switch (type) {
         case useCombobox.stateChangeTypes.InputKeyDownEnter:
         case useCombobox.stateChangeTypes.ItemClick:
+          // Handle All functionality
+          if (newSelectedItem?.value === ALL_OPTION_VALUE) {
+            const allFilteredSelected = selectedItems.length === items.length - 1;
+            let newSelectedItems = allFilteredSelected && inputValue === '' ? [] : baseItems.slice(1);
+
+            if (!allFilteredSelected && inputValue !== '') {
+              // Select all currently filtered items and deduplicate
+              newSelectedItems = [...new Set([...selectedItems, ...items.slice(1)])];
+            }
+
+            if (allFilteredSelected && inputValue !== '') {
+              // Deselect all currently filtered items
+              const filteredSet = new Set(items.slice(1).map((item) => item.value));
+              newSelectedItems = selectedItems.filter((item) => !filteredSet.has(item.value));
+            }
+
+            onChange(getComboboxOptionsValues(newSelectedItems));
+            break;
+          }
           if (newSelectedItem) {
             if (!isOptionSelected(newSelectedItem)) {
               onChange(getComboboxOptionsValues([...selectedItems, newSelectedItem]));
@@ -136,6 +174,8 @@ export const MultiCombobox = <T extends string | number>(props: MultiComboboxPro
         case useCombobox.stateChangeTypes.InputChange:
           setInputValue(newInputValue ?? '');
           break;
+        case useCombobox.stateChangeTypes.InputClick:
+          setIsOpen(true);
         default:
           break;
       }
@@ -145,13 +185,15 @@ export const MultiCombobox = <T extends string | number>(props: MultiComboboxPro
   const virtualizerOptions = {
     count: items.length,
     getScrollElement: () => scrollRef.current,
-    estimateSize: (index: number) => (items[index].description ? MENU_OPTION_HEIGHT_DESCRIPTION : MENU_OPTION_HEIGHT),
+    estimateSize: (index: number) =>
+      'description' in items[index] ? MENU_OPTION_HEIGHT_DESCRIPTION : MENU_OPTION_HEIGHT,
     overscan: VIRTUAL_OVERSCAN_ITEMS,
   };
 
   const rowVirtualizer = useVirtualizer(virtualizerOptions);
 
-  const visibleItems = isOpen ? selectedItems : selectedItems.slice(0, shownItems);
+  // Selected items that show up in the input field
+  const visibleItems = isOpen ? selectedItems.slice(0, MAX_SHOWN_ITEMS) : selectedItems.slice(0, shownItems);
 
   return (
     <div ref={containerRef}>
@@ -159,7 +201,6 @@ export const MultiCombobox = <T extends string | number>(props: MultiComboboxPro
         style={{ width: width === 'auto' ? undefined : width }}
         className={cx(multiStyles.wrapper, { [multiStyles.disabled]: disabled })}
         ref={measureRef}
-        onClick={() => !disabled && selectedItems.length > 0 && setIsOpen(!isOpen)}
       >
         <span className={multiStyles.pillWrapper}>
           {visibleItems.map((item, index) => (
@@ -174,7 +215,7 @@ export const MultiCombobox = <T extends string | number>(props: MultiComboboxPro
               {itemToString(item)}
             </ValuePill>
           ))}
-          {selectedItems.length > shownItems && !isOpen && (
+          {selectedItems.length > visibleItems.length && (
             <Box display="flex" direction="row" marginLeft={0.5} gap={1} ref={counterMeasureRef}>
               {/* eslint-disable-next-line @grafana/no-untranslated-strings */}
               <Text>...</Text>
@@ -182,7 +223,7 @@ export const MultiCombobox = <T extends string | number>(props: MultiComboboxPro
                 interactive
                 content={
                   <>
-                    {selectedItems.slice(shownItems).map((item) => (
+                    {selectedItems.slice(visibleItems.length).map((item) => (
                       <div key={item.value}>{itemToString(item)}</div>
                     ))}
                   </>
@@ -193,15 +234,13 @@ export const MultiCombobox = <T extends string | number>(props: MultiComboboxPro
             </Box>
           )}
           <input
-            className={cx(multiStyles.input, {
-              [multiStyles.inputClosed]: !isOpen && selectedItems.length > 0,
-            })}
+            className={multiStyles.input}
             {...getInputProps(
               getDropdownProps({
                 disabled,
                 preventKeyAction: isOpen,
                 placeholder: selectedItems.length > 0 ? undefined : placeholder,
-                onFocus: () => setIsOpen(true),
+                onFocus: () => !disabled && setIsOpen(true),
               })
             )}
           />
@@ -227,6 +266,10 @@ export const MultiCombobox = <T extends string | number>(props: MultiComboboxPro
                   const itemProps = getItemProps({ item, index });
                   const isSelected = isOptionSelected(item);
                   const id = 'multicombobox-option-' + item.value.toString();
+                  const isAll = item.value === ALL_OPTION_VALUE;
+                  const allItemsSelected =
+                    items[0]?.value === ALL_OPTION_VALUE && selectedItems.length === items.length - 1;
+
                   return (
                     <li
                       key={`${item.value}-${index}`}
@@ -238,13 +281,23 @@ export const MultiCombobox = <T extends string | number>(props: MultiComboboxPro
                       <Stack direction="row" alignItems="center">
                         <Checkbox
                           key={id}
-                          value={isSelected}
+                          value={allItemsSelected || isSelected}
+                          indeterminate={isAll && selectedItems.length > 0 && !allItemsSelected}
                           aria-labelledby={id}
                           onClick={(e) => {
                             e.stopPropagation();
                           }}
                         />
-                        <OptionListItem option={item} id={id} />
+                        <OptionListItem
+                          label={
+                            isAll
+                              ? (item.label ?? item.value.toString()) +
+                                (isAll && inputValue !== '' ? ` (${items.length - 1})` : '')
+                              : (item.label ?? item.value.toString())
+                          }
+                          description={item?.description}
+                          id={id}
+                        />
                       </Stack>
                     </li>
                   );
@@ -262,31 +315,29 @@ function getSelectedItemsFromValue<T extends string | number>(
   value: T[] | Array<ComboboxOption<T>>,
   options: Array<ComboboxOption<T>>
 ) {
-  if (!isComboboxOptions(value)) {
-    const resultingItems: Array<ComboboxOption<T> | undefined> = [];
+  if (isComboboxOptions(value)) {
+    return value;
+  }
+  const valueMap = new Map(value.map((val, index) => [val, index]));
+  const resultingItems: Array<ComboboxOption<T>> = [];
 
-    for (const item of options) {
-      for (const [index, val] of value.entries()) {
-        if (val === item.value) {
-          resultingItems[index] = item;
-        }
-      }
-      if (resultingItems.length === value.length && !resultingItems.includes(undefined)) {
-        // We found all items for the values
-        break;
-      }
+  for (const option of options) {
+    const index = valueMap.get(option.value);
+    if (index !== undefined) {
+      resultingItems[index] = option;
+      valueMap.delete(option.value);
     }
-
-    // Handle values that are not in options
-    for (const [index, val] of value.entries()) {
-      if (resultingItems[index] === undefined) {
-        resultingItems[index] = { value: val };
-      }
+    if (valueMap.size === 0) {
+      // We found all values
+      break;
     }
-    return resultingItems.filter((item) => item !== undefined); // TODO: Not actually needed, but TS complains
   }
 
-  return value;
+  // Handle items that are not in options
+  for (const [val, index] of valueMap) {
+    resultingItems[index] = { value: val };
+  }
+  return resultingItems;
 }
 
 function isComboboxOptions<T extends string | number>(
diff --git a/packages/grafana-ui/src/components/Combobox/OptionListItem.tsx b/packages/grafana-ui/src/components/Combobox/OptionListItem.tsx
index d80c70e01d2..436a662e204 100644
--- a/packages/grafana-ui/src/components/Combobox/OptionListItem.tsx
+++ b/packages/grafana-ui/src/components/Combobox/OptionListItem.tsx
@@ -1,21 +1,21 @@
 import { useStyles2 } from '../../themes';
 
-import { ComboboxOption } from './Combobox';
 import { getComboboxStyles } from './getComboboxStyles';
 
 interface Props {
-  option: ComboboxOption<string | number>;
+  label: string;
+  description?: string;
   id: string;
 }
 
-export const OptionListItem = ({ option, id }: Props) => {
+export const OptionListItem = ({ label, description, id }: Props) => {
   const styles = useStyles2(getComboboxStyles);
   return (
     <div className={styles.optionBody}>
       <span className={styles.optionLabel} id={id}>
-        {option.label ?? option.value}
+        {label}
       </span>
-      {option.description && <span className={styles.optionDescription}>{option.description}</span>}
+      {description && <span className={styles.optionDescription}>{description}</span>}
     </div>
   );
 };
diff --git a/packages/grafana-ui/src/components/Combobox/filter.ts b/packages/grafana-ui/src/components/Combobox/filter.ts
index 09ab4653051..dbf86c062d6 100644
--- a/packages/grafana-ui/src/components/Combobox/filter.ts
+++ b/packages/grafana-ui/src/components/Combobox/filter.ts
@@ -1,4 +1,5 @@
 import { ComboboxOption } from './Combobox';
+import { ALL_OPTION_VALUE } from './MultiCombobox';
 
 export function itemToString<T extends string | number>(item?: ComboboxOption<T> | null) {
   if (!item) {
@@ -17,7 +18,8 @@ export function itemFilter<T extends string | number>(inputValue: string) {
     return (
       !inputValue ||
       item.label?.toLowerCase().includes(lowerCasedInputValue) ||
-      item.value?.toString().toLowerCase().includes(lowerCasedInputValue)
+      item.value?.toString().toLowerCase().includes(lowerCasedInputValue) ||
+      item.value.toString() === ALL_OPTION_VALUE
     );
   };
 }
diff --git a/packages/grafana-ui/src/components/Combobox/getMultiComboboxStyles.ts b/packages/grafana-ui/src/components/Combobox/getMultiComboboxStyles.ts
index 107a881cf5c..4347acdb0e7 100644
--- a/packages/grafana-ui/src/components/Combobox/getMultiComboboxStyles.ts
+++ b/packages/grafana-ui/src/components/Combobox/getMultiComboboxStyles.ts
@@ -39,12 +39,7 @@ export const getMultiComboboxStyles = (
         outline: 'none',
       },
     }),
-    inputClosed: css({
-      width: 0,
-      flexGrow: 0,
-      paddingLeft: 0,
-      paddingRight: 0,
-    }),
+
     pillWrapper: css({
       display: 'inline-flex',
       flexWrap: isOpen ? 'wrap' : 'nowrap',
diff --git a/packages/grafana-ui/src/components/Combobox/useMeasureMulti.ts b/packages/grafana-ui/src/components/Combobox/useMeasureMulti.ts
index 79a7722df4d..4ff65a7d41f 100644
--- a/packages/grafana-ui/src/components/Combobox/useMeasureMulti.ts
+++ b/packages/grafana-ui/src/components/Combobox/useMeasureMulti.ts
@@ -8,6 +8,7 @@ import { ComboboxOption } from './Combobox';
 const FONT_SIZE = 12;
 const EXTRA_PILL_SIZE = 50;
 const EXTRA_PILL_DISABLED_SIZE = 10;
+export const MAX_SHOWN_ITEMS = 15;
 
 /**
  * Updates the number of shown items in the multi combobox based on the available width.
@@ -34,8 +35,8 @@ export function useMeasureMulti<T extends string | number>(
         (disabled ? EXTRA_PILL_DISABLED_SIZE : EXTRA_PILL_SIZE);
       if (currWidth > maxWidth) {
         // If there is no space for that item, show the current number of items,
-        // but always show at least 1 item
-        setShownItems(i || 1);
+        // but always show at least 1 item. Cap at maximum number of items.
+        setShownItems(Math.min(i, MAX_SHOWN_ITEMS) || 1);
         break;
       }
       if (i === selectedItems.length - 1) {
diff --git a/public/locales/en-US/grafana.json b/public/locales/en-US/grafana.json
index cef1901e04c..f68a771ff6b 100644
--- a/public/locales/en-US/grafana.json
+++ b/public/locales/en-US/grafana.json
@@ -2049,6 +2049,12 @@
       "title": "Why host with Grafana?"
     }
   },
+  "multicombobox": {
+    "all": {
+      "title": "All",
+      "title-filtered": "All (filtered)"
+    }
+  },
   "nav": {
     "add-new-connections": {
       "title": "Add new connection"
diff --git a/public/locales/pseudo-LOCALE/grafana.json b/public/locales/pseudo-LOCALE/grafana.json
index 60ef9dc7484..88ca996b76a 100644
--- a/public/locales/pseudo-LOCALE/grafana.json
+++ b/public/locales/pseudo-LOCALE/grafana.json
@@ -2049,6 +2049,12 @@
       "title": "Ŵĥy ĥőşŧ ŵįŧĥ Ğřäƒäʼnä?"
     }
   },
+  "multicombobox": {
+    "all": {
+      "title": "Åľľ",
+      "title-filtered": "Åľľ (ƒįľŧęřęđ)"
+    }
+  },
   "nav": {
     "add-new-connections": {
       "title": "Åđđ ʼnęŵ čőʼnʼnęčŧįőʼn"