diff --git a/eslint-suppressions.json b/eslint-suppressions.json
index fde5e53587d..3f5773bf84f 100644
--- a/eslint-suppressions.json
+++ b/eslint-suppressions.json
@@ -1912,11 +1912,6 @@
       "count": 4
     }
   },
-  "public/app/features/dashboard-scene/edit-pane/DashboardOutline.tsx": {
-    "@typescript-eslint/consistent-type-assertions": {
-      "count": 1
-    }
-  },
   "public/app/features/dashboard-scene/inspect/HelpWizard/HelpWizard.tsx": {
     "no-restricted-syntax": {
       "count": 3
diff --git a/public/app/features/dashboard-scene/edit-pane/DashboardOutline.tsx b/public/app/features/dashboard-scene/edit-pane/DashboardOutline.tsx
index 4ce6536ac5c..97e17c34780 100644
--- a/public/app/features/dashboard-scene/edit-pane/DashboardOutline.tsx
+++ b/public/app/features/dashboard-scene/edit-pane/DashboardOutline.tsx
@@ -5,7 +5,7 @@ import { GrafanaTheme2 } from '@grafana/data';
 import { selectors } from '@grafana/e2e-selectors';
 import { Trans, t } from '@grafana/i18n';
 import { SceneObject } from '@grafana/scenes';
-import { Box, Icon, Sidebar, Stack, Text, useElementSelection, useStyles2 } from '@grafana/ui';
+import { Box, Icon, Sidebar, Text, useElementSelection, useStyles2 } from '@grafana/ui';
 
 import { isRepeatCloneOrChildOf } from '../utils/clone';
 import { DashboardInteractions } from '../utils/interactions';
@@ -85,6 +85,7 @@ function DashboardOutlineNode({ sceneObject, editPane, isEditing, depth, index }
       aria-selected={isSelected}
       className={styles.container}
       onClick={onNodeClicked}
+      // eslint-disable-next-line @typescript-eslint/consistent-type-assertions
       style={{ '--depth': depth } as React.CSSProperties}
     >
       <div className={cx(styles.row, { [styles.rowSelected]: isSelected })}>
@@ -99,7 +100,7 @@ function DashboardOutlineNode({ sceneObject, editPane, isEditing, depth, index }
           </button>
         )}
         <button
-          className={cx(styles.nodeName, { [styles.nodeNameClone]: isCloned })}
+          className={cx(styles.nodeButton, { [styles.nodeButtonClone]: isCloned })}
           onDoubleClick={outlineRename.onNameDoubleClicked}
           data-testid={selectors.components.PanelEditor.Outline.item(instanceName)}
         >
@@ -116,10 +117,10 @@ function DashboardOutlineNode({ sceneObject, editPane, isEditing, depth, index }
             />
           ) : (
             <>
-              <Stack direction="row" gap={0.5} alignItems="center" grow={1}>
-                <span>{instanceName}</span>
+              <div className={styles.nodeName}>
+                <Text truncate>{instanceName}</Text>
                 {elementInfo.isHidden && <Icon name="eye-slash" size="sm" className={styles.hiddenIcon} />}
-              </Stack>
+              </div>
               {isCloned && (
                 <span>
                   <Trans i18nKey="dashboard.outline.repeated-item">Repeat</Trans>
@@ -144,9 +145,20 @@ function DashboardOutlineNode({ sceneObject, editPane, isEditing, depth, index }
               />
             ))
           ) : (
-            <Text color="secondary" element="li">
-              <Trans i18nKey="dashboard.outline.tree-item.empty">(empty)</Trans>
-            </Text>
+            <li
+              role="treeitem"
+              aria-selected={isSelected}
+              className={styles.container}
+              // eslint-disable-next-line @typescript-eslint/consistent-type-assertions
+              style={{ '--depth': depth + 1 } as React.CSSProperties}
+            >
+              <div className={styles.row}>
+                <div className={styles.indentation}></div>
+                <Text color="secondary" italic>
+                  <Trans i18nKey="dashboard.outline.tree-item.empty">(empty)</Trans>
+                </Text>
+              </div>
+            </li>
           )}
         </ul>
       )}
@@ -197,7 +209,7 @@ function getStyles(theme: GrafanaTheme2) {
       color: 'inherit',
       lineHeight: 0,
     }),
-    nodeName: css({
+    nodeButton: css({
       boxShadow: 'none',
       border: 'none',
       background: 'transparent',
@@ -215,11 +227,18 @@ function getStyles(theme: GrafanaTheme2) {
         textOverflow: 'ellipsis',
       },
     }),
+    nodeName: css({
+      display: 'flex',
+      gap: theme.spacing(0.5),
+      flexGrow: 1,
+      alignItems: 'center',
+      overflow: 'hidden',
+    }),
     hiddenIcon: css({
       color: theme.colors.text.secondary,
       marginLeft: theme.spacing(1),
     }),
-    nodeNameClone: css({
+    nodeButtonClone: css({
       color: theme.colors.text.secondary,
       cursor: 'not-allowed',
     }),
diff --git a/public/app/features/dashboard-scene/scene/DashboardControls.tsx b/public/app/features/dashboard-scene/scene/DashboardControls.tsx
index da18ca17dd4..66b87804f76 100644
--- a/public/app/features/dashboard-scene/scene/DashboardControls.tsx
+++ b/public/app/features/dashboard-scene/scene/DashboardControls.tsx
@@ -272,7 +272,7 @@ function getStyles(theme: GrafanaTheme2) {
       gap: theme.spacing(1),
       marginBottom: theme.spacing(1),
       float: 'right',
-      alignItems: 'center',
+      alignItems: 'flex-start',
     }),
     timeControls: css({
       display: 'flex',