diff --git a/public/app/core/components/NestedFolderPicker/NestedFolderList.tsx b/public/app/core/components/NestedFolderPicker/NestedFolderList.tsx
index 883171532a7..7e53679f84e 100644
--- a/public/app/core/components/NestedFolderPicker/NestedFolderList.tsx
+++ b/public/app/core/components/NestedFolderPicker/NestedFolderList.tsx
@@ -32,6 +32,7 @@ interface NestedFolderListProps {
   onFolderSelect: (item: DashboardViewItem) => void;
   isItemLoaded: (itemIndex: number) => boolean;
   requestLoadMore: (folderUid: string | undefined) => void;
+  emptyFolders: Set<string>;
 }
 
 export function NestedFolderList({
@@ -44,6 +45,7 @@ export function NestedFolderList({
   onFolderSelect,
   isItemLoaded,
   requestLoadMore,
+  emptyFolders,
 }: NestedFolderListProps) {
   const infiniteLoaderRef = useRef<InfiniteLoader>(null);
   const styles = useStyles2(getStyles);
@@ -57,8 +59,18 @@ export function NestedFolderList({
       onFolderExpand,
       onFolderSelect,
       idPrefix,
+      emptyFolders,
     }),
-    [items, focusedItemIndex, foldersAreOpenable, selectedFolder, onFolderExpand, onFolderSelect, idPrefix]
+    [
+      items,
+      focusedItemIndex,
+      foldersAreOpenable,
+      selectedFolder,
+      onFolderExpand,
+      onFolderSelect,
+      idPrefix,
+      emptyFolders,
+    ]
   );
 
   const handleIsItemLoaded = useCallback(
@@ -119,8 +131,16 @@ interface RowProps {
 const SKELETON_WIDTHS = [100, 200, 130, 160, 150];
 
 function Row({ index, style: virtualStyles, data }: RowProps) {
-  const { items, focusedItemIndex, foldersAreOpenable, selectedFolder, onFolderExpand, onFolderSelect, idPrefix } =
-    data;
+  const {
+    items,
+    focusedItemIndex,
+    foldersAreOpenable,
+    selectedFolder,
+    onFolderExpand,
+    onFolderSelect,
+    idPrefix,
+    emptyFolders,
+  } = data;
   const { item, isOpen, level, parentUID } = items[index];
   const rowRef = useRef<HTMLDivElement>(null);
   const labelId = useId();
@@ -203,7 +223,7 @@ function Row({ index, style: virtualStyles, data }: RowProps) {
       <div className={styles.rowBody}>
         <Indent level={level} spacing={2} />
 
-        {foldersAreOpenable ? (
+        {foldersAreOpenable && !emptyFolders.has(item.uid) ? (
           <IconButton
             size={CHEVRON_SIZE}
             // by using onMouseDown here instead of onClick we can stop focus moving
@@ -257,7 +277,7 @@ const getStyles = (theme: GrafanaTheme2) => {
     }),
 
     folderButtonSpacer: css({
-      paddingLeft: theme.spacing(0.5),
+      paddingLeft: theme.spacing(2.5),
     }),
 
     row: css({
diff --git a/public/app/core/components/NestedFolderPicker/NestedFolderPicker.tsx b/public/app/core/components/NestedFolderPicker/NestedFolderPicker.tsx
index 826f8ec5002..67c97879c19 100644
--- a/public/app/core/components/NestedFolderPicker/NestedFolderPicker.tsx
+++ b/public/app/core/components/NestedFolderPicker/NestedFolderPicker.tsx
@@ -111,6 +111,7 @@ export function NestedFolderPicker({
 
   const isBrowsing = Boolean(overlayOpen && !(search && searchResults));
   const {
+    emptyFolders,
     items: browseFlatTree,
     isLoading: isBrowseLoading,
     requestNextPage: fetchFolderPage,
@@ -328,7 +329,7 @@ export function NestedFolderPicker({
       <Input
         ref={refs.setReference}
         autoFocus
-        prefix={label ? <Icon name="folder" /> : null}
+        prefix={label ? <Icon name="folder" /> : <Icon name="search" />}
         placeholder={label ?? t('browse-dashboards.folder-picker.search-placeholder', 'Search folders')}
         value={search}
         invalid={invalid}
@@ -341,7 +342,6 @@ export function NestedFolderPicker({
         aria-owns={overlayId}
         aria-activedescendant={getDOMId(overlayId, flatTree[focusedItemIndex]?.item.uid)}
         role="combobox"
-        suffix={<Icon name="search" />}
         {...getReferenceProps()}
         onKeyDown={handleKeyDown}
       />
@@ -381,6 +381,7 @@ export function NestedFolderPicker({
               foldersAreOpenable={!(search && searchResults)}
               isItemLoaded={isItemLoaded}
               requestLoadMore={handleLoadMore}
+              emptyFolders={emptyFolders}
             />
           </div>
         )}
diff --git a/public/app/core/components/NestedFolderPicker/useFoldersQueryAppPlatform.ts b/public/app/core/components/NestedFolderPicker/useFoldersQueryAppPlatform.ts
index 60ca40f798e..34d068589c9 100644
--- a/public/app/core/components/NestedFolderPicker/useFoldersQueryAppPlatform.ts
+++ b/public/app/core/components/NestedFolderPicker/useFoldersQueryAppPlatform.ts
@@ -40,6 +40,9 @@ export function useFoldersQueryAppPlatform({
   // Keep a list of all request subscriptions so we can unsubscribe from them when the component is unmounted
   const requestsRef = useRef<GetFolderChildrenRequest[]>([]);
 
+  // Set of UIDs for which children were requested but were empty.
+  const [emptyFolders, setEmptyFolders] = useState<Set<string>>(new Set());
+
   // Keep a list of selectors for dynamic state selection
   const [selectors, setSelectors] = useState<Array<ReturnType<typeof dashboardAPIv0alpha1.endpoints.getSearch.select>>>(
     []
@@ -145,6 +148,14 @@ export function useFoldersQueryAppPlatform({
 
         const childResponse = folderIsOpen && state.responseByParent[name];
         if (childResponse) {
+          // If we finished loading and there are no children add to empty list
+          if (
+            childResponse.data &&
+            childResponse.status !== QueryStatus.pending &&
+            childResponse.data.hits.length === 0
+          ) {
+            setEmptyFolders((prev) => new Set(prev).add(name));
+          }
           const childFlatItems = createFlatList(name, childResponse, level + 1);
           return [flatItem, ...childFlatItems];
         }
@@ -168,6 +179,7 @@ export function useFoldersQueryAppPlatform({
   }, [state, isBrowsing, openFolders, rootFolderUID, rootFolderItem]);
 
   return {
+    emptyFolders,
     items: treeList,
     isLoading: state.isLoading,
     requestNextPage,
diff --git a/public/app/core/components/NestedFolderPicker/useFoldersQueryLegacy.ts b/public/app/core/components/NestedFolderPicker/useFoldersQueryLegacy.ts
index fa07abccf31..24eb4008b93 100644
--- a/public/app/core/components/NestedFolderPicker/useFoldersQueryLegacy.ts
+++ b/public/app/core/components/NestedFolderPicker/useFoldersQueryLegacy.ts
@@ -58,6 +58,9 @@ export function useFoldersQueryLegacy({
   // Keep a list of all request subscriptions so we can unsubscribe from them when the component is unmounted
   const requestsRef = useRef<ListFoldersRequest[]>([]);
 
+  // Set of UIDs for which children were requested but were empty.
+  const [emptyFolders, setEmptyFolders] = useState<Set<string>>(new Set());
+
   // Keep a list of selectors for dynamic state selection
   const [selectors, setSelectors] = useState<
     Array<ReturnType<typeof browseDashboardsAPI.endpoints.listFolders.select>>
@@ -165,8 +168,15 @@ export function useFoldersQueryLegacy({
           };
 
           const childPages = folderIsOpen && state.pagesByParent[item.uid];
+
           if (childPages) {
             const childFlatItems = createFlatList(item.uid, childPages, level + 1);
+
+            // If we finished loading and there are no children add to empty list
+            if (childPages[0] && childPages[0].status !== PENDING_STATUS && childFlatItems.length === 0) {
+              setEmptyFolders((prev) => new Set(prev).add(item.uid));
+            }
+
             return [flatItem, ...childFlatItems];
           }
 
@@ -191,6 +201,7 @@ export function useFoldersQueryLegacy({
   }, [state, isBrowsing, openFolders, rootFolderUID, rootFolderItem]);
 
   return {
+    emptyFolders,
     items: treeList,
     isLoading: state.isLoading,
     requestNextPage,