diff --git a/packages/grafana-ui/src/components/Icon/Icon.tsx b/packages/grafana-ui/src/components/Icon/Icon.tsx
index a411c06a6a1..2aad1b286d2 100644
--- a/packages/grafana-ui/src/components/Icon/Icon.tsx
+++ b/packages/grafana-ui/src/components/Icon/Icon.tsx
@@ -45,10 +45,6 @@ export const Icon = React.forwardRef<HTMLDivElement, IconProps>(
       return <i className={getFontAwesomeIconStyles(name, className)} {...divElementProps} style={style} />;
     }
 
-    if (name === 'panel-add') {
-      size = 'xl';
-    }
-
     if (!cacheInitialized) {
       initIconCache();
     }
diff --git a/public/app/features/dashboard/components/AddPanelButton/AddPanelButton.tsx b/public/app/features/dashboard/components/AddPanelButton/AddPanelButton.tsx
new file mode 100644
index 00000000000..74e035426a1
--- /dev/null
+++ b/public/app/features/dashboard/components/AddPanelButton/AddPanelButton.tsx
@@ -0,0 +1,61 @@
+import { css, cx } from '@emotion/css';
+import React, { useState } from 'react';
+
+import { GrafanaTheme2 } from '@grafana/data';
+import { Dropdown, Button, useTheme2, Icon } from '@grafana/ui';
+import { t } from 'app/core/internationalization';
+import { DashboardModel } from 'app/features/dashboard/state';
+
+import { AddPanelMenu } from './AddPanelMenu';
+
+interface Props {
+  dashboard: DashboardModel;
+}
+
+export const AddPanelButton = ({ dashboard }: Props) => {
+  const styles = getStyles(useTheme2());
+  const [isMenuOpen, setIsMenuOpen] = useState(false);
+
+  return (
+    <Dropdown
+      overlay={() => <AddPanelMenu dashboard={dashboard} />}
+      placement="bottom"
+      offset={[0, 6]}
+      onVisibleChange={setIsMenuOpen}
+    >
+      <Button
+        tooltip={t('dashboard.toolbar.add-panel', 'Add panel')}
+        icon="panel-add"
+        size="lg"
+        fill="outline"
+        className={cx(styles.button, styles.buttonIcon, styles.buttonText)}
+      >
+        Add
+        <Icon name={isMenuOpen ? 'angle-up' : 'angle-down'} size="lg" />
+      </Button>
+    </Dropdown>
+  );
+};
+
+function getStyles(theme: GrafanaTheme2) {
+  return {
+    button: css({
+      label: 'add-panel-button',
+      padding: theme.spacing(0.5, 0.5, 0.5, 0.75),
+      height: theme.spacing((theme.components.height.sm + theme.components.height.md) / 2),
+      borderRadius: theme.shape.radius.default,
+    }),
+    buttonIcon: css({
+      svg: {
+        margin: 0,
+      },
+    }),
+    buttonText: css({
+      label: 'add-panel-button-text',
+      fontSize: theme.typography.body.fontSize,
+      span: {
+        marginLeft: theme.spacing(0.67),
+      },
+    }),
+  };
+}
diff --git a/public/app/features/dashboard/components/AddPanelButton/AddPanelMenu.tsx b/public/app/features/dashboard/components/AddPanelButton/AddPanelMenu.tsx
new file mode 100644
index 00000000000..bdf8e9a5cbc
--- /dev/null
+++ b/public/app/features/dashboard/components/AddPanelButton/AddPanelMenu.tsx
@@ -0,0 +1,63 @@
+import React, { useMemo } from 'react';
+
+import { locationService, reportInteraction } from '@grafana/runtime';
+import { Menu } from '@grafana/ui';
+import { DashboardModel } from 'app/features/dashboard/state';
+import {
+  getCopiedPanelPlugin,
+  onAddLibraryPanel,
+  onCreateNewPanel,
+  onCreateNewRow,
+  onPasteCopiedPanel,
+} from 'app/features/dashboard/utils/dashboard';
+
+interface Props {
+  dashboard: DashboardModel;
+}
+
+export const AddPanelMenu = ({ dashboard }: Props) => {
+  const copiedPanelPlugin = useMemo(() => getCopiedPanelPlugin(), []);
+
+  return (
+    <Menu>
+      <Menu.Item
+        key="add-visualisation"
+        label="Visualization"
+        ariaLabel="Add new panel"
+        onClick={() => {
+          reportInteraction('Create new panel');
+          const id = onCreateNewPanel(dashboard);
+          locationService.partial({ editPanel: id });
+        }}
+      />
+      <Menu.Item
+        key="add-row"
+        label="Row"
+        ariaLabel="Add new row"
+        onClick={() => {
+          reportInteraction('Create new row');
+          onCreateNewRow(dashboard);
+        }}
+      />
+      <Menu.Item
+        key="add-panel-lib"
+        label="Import from library"
+        ariaLabel="Add new panel from panel library"
+        onClick={() => {
+          reportInteraction('Add a panel from the panel library');
+          onAddLibraryPanel(dashboard);
+        }}
+      />
+      <Menu.Item
+        key="add-panel-clipboard"
+        label="Paste panel"
+        ariaLabel="Add new panel from clipboard"
+        onClick={() => {
+          reportInteraction('Paste panel from clipboard');
+          onPasteCopiedPanel(dashboard, copiedPanelPlugin);
+        }}
+        disabled={!copiedPanelPlugin}
+      />
+    </Menu>
+  );
+};
diff --git a/public/app/features/dashboard/components/AddPanelWidget/AddPanelWidget.tsx b/public/app/features/dashboard/components/AddPanelWidget/AddPanelWidget.tsx
index 742f2a78504..becd09aa7d7 100644
--- a/public/app/features/dashboard/components/AddPanelWidget/AddPanelWidget.tsx
+++ b/public/app/features/dashboard/components/AddPanelWidget/AddPanelWidget.tsx
@@ -217,7 +217,7 @@ const AddPanelWidgetHandle = ({ children, onBack, onCancel, styles }: AddPanelWi
       )}
       {!onBack && (
         <div className={styles.backButton}>
-          <Icon name="panel-add" size="md" />
+          <Icon name="panel-add" size="xl" />
         </div>
       )}
       {children && <span>{children}</span>}
diff --git a/public/app/features/dashboard/components/DashNav/DashNav.tsx b/public/app/features/dashboard/components/DashNav/DashNav.tsx
index 0eec0b2180c..d4bc3c21672 100644
--- a/public/app/features/dashboard/components/DashNav/DashNav.tsx
+++ b/public/app/features/dashboard/components/DashNav/DashNav.tsx
@@ -25,17 +25,17 @@ import { useAppNotification } from 'app/core/copy/appNotification';
 import { appEvents } from 'app/core/core';
 import { useBusEvent } from 'app/core/hooks/useBusEvent';
 import { t, Trans } from 'app/core/internationalization';
+import { setStarred } from 'app/core/reducers/navBarTree';
+import { AddPanelButton } from 'app/features/dashboard/components/AddPanelButton/AddPanelButton';
 import { SaveDashboardDrawer } from 'app/features/dashboard/components/SaveDashboard/SaveDashboardDrawer';
 import { ShareModal } from 'app/features/dashboard/components/ShareModal';
+import { getDashboardSrv } from 'app/features/dashboard/services/DashboardSrv';
+import { DashboardModel } from 'app/features/dashboard/state';
 import { playlistSrv } from 'app/features/playlist/PlaylistSrv';
 import { updateTimeZoneForSession } from 'app/features/profile/state/reducers';
 import { KioskMode } from 'app/types';
 import { DashboardMetaChangedEvent, ShowModalReactEvent } from 'app/types/events';
 
-import { setStarred } from '../../../../core/reducers/navBarTree';
-import { getDashboardSrv } from '../../services/DashboardSrv';
-import { DashboardModel } from '../../state';
-
 import { DashNavButton } from './DashNavButton';
 import { DashNavTimeControls } from './DashNavTimeControls';
 
@@ -305,14 +305,19 @@ export const DashNav = React.memo<Props>((props) => {
     }
 
     if (canEdit && !isFullscreen) {
-      buttons.push(
-        <ToolbarButton
-          tooltip={t('dashboard.toolbar.add-panel', 'Add panel')}
-          icon="panel-add"
-          onClick={onAddPanel}
-          key="button-panel-add"
-        />
-      );
+      if (config.featureToggles.emptyDashboardPage) {
+        buttons.push(<AddPanelButton dashboard={dashboard} key="panel-add-dropdown" />);
+      } else {
+        buttons.push(
+          <ToolbarButton
+            tooltip={t('dashboard.toolbar.add-panel', 'Add panel')}
+            icon="panel-add"
+            iconSize="xl"
+            onClick={onAddPanel}
+            key="button-panel-add"
+          />
+        );
+      }
     }
 
     if (canSave && !isFullscreen) {
diff --git a/public/app/features/dashboard/dashgrid/DashboardEmpty.tsx b/public/app/features/dashboard/dashgrid/DashboardEmpty.tsx
index e72c0b3d6e8..e9a7f988c9b 100644
--- a/public/app/features/dashboard/dashgrid/DashboardEmpty.tsx
+++ b/public/app/features/dashboard/dashgrid/DashboardEmpty.tsx
@@ -4,8 +4,8 @@ import React from 'react';
 import { GrafanaTheme2 } from '@grafana/data';
 import { locationService, reportInteraction } from '@grafana/runtime';
 import { Button, useStyles2 } from '@grafana/ui';
-import { DashboardModel, PanelModel } from 'app/features/dashboard/state';
-import { calculateNewPanelGridPos } from 'app/features/dashboard/utils/panel';
+import { DashboardModel } from 'app/features/dashboard/state';
+import { onAddLibraryPanel, onCreateNewPanel, onCreateNewRow } from 'app/features/dashboard/utils/dashboard';
 
 export interface Props {
   dashboard: DashboardModel;
@@ -13,36 +13,6 @@ export interface Props {
 }
 
 export const DashboardEmpty = ({ dashboard, canCreate }: Props) => {
-  const onCreateNewPanel = () => {
-    const newPanel: Partial<PanelModel> = {
-      type: 'timeseries',
-      title: 'Panel Title',
-      gridPos: calculateNewPanelGridPos(dashboard),
-    };
-
-    dashboard.addPanel(newPanel);
-    locationService.partial({ editPanel: newPanel.id });
-  };
-
-  const onCreateNewRow = () => {
-    const newRow = {
-      type: 'row',
-      title: 'Row title',
-      gridPos: { x: 0, y: 0 },
-    };
-
-    dashboard.addPanel(newRow);
-  };
-
-  const onAddLibraryPanel = () => {
-    const newPanel = {
-      type: 'add-library-panel',
-      gridPos: calculateNewPanelGridPos(dashboard),
-    };
-
-    dashboard.addPanel(newPanel);
-  };
-
   const styles = useStyles2(getStyles);
 
   return (
@@ -62,7 +32,8 @@ export const DashboardEmpty = ({ dashboard, canCreate }: Props) => {
             aria-label="Add new panel"
             onClick={() => {
               reportInteraction('Create new panel');
-              onCreateNewPanel();
+              const id = onCreateNewPanel(dashboard);
+              locationService.partial({ editPanel: id });
             }}
             disabled={!canCreate}
           >
@@ -81,7 +52,7 @@ export const DashboardEmpty = ({ dashboard, canCreate }: Props) => {
               aria-label="Add new row"
               onClick={() => {
                 reportInteraction('Create new row');
-                onCreateNewRow();
+                onCreateNewRow(dashboard);
               }}
               disabled={!canCreate}
             >
@@ -99,7 +70,7 @@ export const DashboardEmpty = ({ dashboard, canCreate }: Props) => {
               aria-label="Add new panel from panel library"
               onClick={() => {
                 reportInteraction('Add a panel from the panel library');
-                onAddLibraryPanel();
+                onAddLibraryPanel(dashboard);
               }}
               disabled={!canCreate}
             >
@@ -112,7 +83,7 @@ export const DashboardEmpty = ({ dashboard, canCreate }: Props) => {
   );
 };
 
-const getStyles = (theme: GrafanaTheme2) => {
+function getStyles(theme: GrafanaTheme2) {
   return {
     wrapper: css({
       label: 'dashboard-empty-wrapper',
@@ -184,4 +155,4 @@ const getStyles = (theme: GrafanaTheme2) => {
       marginBottom: theme.spacing.gridSize * 3,
     }),
   };
-};
+}
diff --git a/public/app/features/dashboard/state/initDashboard.ts b/public/app/features/dashboard/state/initDashboard.ts
index 705dd42141c..e3baea1250d 100644
--- a/public/app/features/dashboard/state/initDashboard.ts
+++ b/public/app/features/dashboard/state/initDashboard.ts
@@ -267,6 +267,16 @@ export function getNewDashboardModelData(
   urlFolderUid?: string,
   panelType?: string
 ): { dashboard: any; meta: DashboardMeta } {
+  const panels = config.featureToggles.emptyDashboardPage
+    ? []
+    : [
+        {
+          type: panelType ?? 'add-panel',
+          gridPos: { x: 0, y: 0, w: 12, h: 9 },
+          title: 'Panel Title',
+        },
+      ];
+
   const data = {
     meta: {
       canStar: false,
@@ -277,13 +287,7 @@ export function getNewDashboardModelData(
     },
     dashboard: {
       title: 'New dashboard',
-      panels: [
-        {
-          type: panelType ?? 'add-panel',
-          gridPos: { x: 0, y: 0, w: 12, h: 9 },
-          title: 'Panel Title',
-        },
-      ],
+      panels,
     },
   };
 
diff --git a/public/app/features/dashboard/utils/dashboard.ts b/public/app/features/dashboard/utils/dashboard.ts
new file mode 100644
index 00000000000..13fe36eecaa
--- /dev/null
+++ b/public/app/features/dashboard/utils/dashboard.ts
@@ -0,0 +1,91 @@
+import { chain, cloneDeep, defaults, find } from 'lodash';
+
+import { PanelPluginMeta } from '@grafana/data';
+import config from 'app/core/config';
+import { LS_PANEL_COPY_KEY } from 'app/core/constants';
+import store from 'app/core/store';
+import { DashboardModel, PanelModel } from 'app/features/dashboard/state';
+import { calculateNewPanelGridPos } from 'app/features/dashboard/utils/panel';
+
+export function onCreateNewPanel(dashboard: DashboardModel): number | undefined {
+  const newPanel: Partial<PanelModel> = {
+    type: 'timeseries',
+    title: 'Panel Title',
+    gridPos: calculateNewPanelGridPos(dashboard),
+  };
+
+  dashboard.addPanel(newPanel);
+  return newPanel.id;
+}
+
+export function onCreateNewRow(dashboard: DashboardModel) {
+  const newRow = {
+    type: 'row',
+    title: 'Row title',
+    gridPos: { x: 0, y: 0 },
+  };
+
+  dashboard.addPanel(newRow);
+}
+
+export function onAddLibraryPanel(dashboard: DashboardModel) {
+  const newPanel = {
+    type: 'add-library-panel',
+    gridPos: calculateNewPanelGridPos(dashboard),
+  };
+
+  dashboard.addPanel(newPanel);
+}
+
+type PanelPluginInfo = { defaults: { gridPos: { w: number; h: number }; title: string } };
+
+export function onPasteCopiedPanel(dashboard: DashboardModel, panelPluginInfo?: PanelPluginMeta & PanelPluginInfo) {
+  if (!panelPluginInfo) {
+    return;
+  }
+
+  const gridPos = calculateNewPanelGridPos(dashboard);
+
+  const newPanel = {
+    type: panelPluginInfo.id,
+    title: 'Panel Title',
+    gridPos: {
+      x: gridPos.x,
+      y: gridPos.y,
+      w: panelPluginInfo.defaults.gridPos.w,
+      h: panelPluginInfo.defaults.gridPos.h,
+    },
+  };
+
+  // apply panel template / defaults
+  if (panelPluginInfo.defaults) {
+    defaults(newPanel, panelPluginInfo.defaults);
+    newPanel.title = panelPluginInfo.defaults.title;
+    store.delete(LS_PANEL_COPY_KEY);
+  }
+
+  dashboard.addPanel(newPanel);
+}
+
+export function getCopiedPanelPlugin(): (PanelPluginMeta & PanelPluginInfo) | undefined {
+  const panels = chain(config.panels)
+    .filter({ hideFromList: false })
+    .map((item) => item)
+    .value();
+
+  const copiedPanelJson = store.get(LS_PANEL_COPY_KEY);
+  if (copiedPanelJson) {
+    const copiedPanel = JSON.parse(copiedPanelJson);
+
+    const pluginInfo = find(panels, { id: copiedPanel.type });
+    if (pluginInfo) {
+      const pluginCopy: PanelPluginMeta = cloneDeep(pluginInfo);
+      pluginCopy.name = copiedPanel.title;
+      pluginCopy.sort = -1;
+
+      return { ...pluginCopy, defaults: { ...copiedPanel } };
+    }
+  }
+
+  return undefined;
+}