diff --git a/public/app/features/commandPalette/CommandPalette.tsx b/public/app/features/commandPalette/CommandPalette.tsx
index b70709e443e..7ee00813631 100644
--- a/public/app/features/commandPalette/CommandPalette.tsx
+++ b/public/app/features/commandPalette/CommandPalette.tsx
@@ -1,4 +1,4 @@
-import { css } from '@emotion/css';
+import { css, cx } from '@emotion/css';
 import { useDialog } from '@react-aria/dialog';
 import { FocusScope } from '@react-aria/focus';
 import { useOverlay } from '@react-aria/overlays';
@@ -83,24 +83,33 @@ const RenderResults = ({ dashboardResults }: RenderResultsProps) => {
     () => dashboardResults.map((dashboard) => new ActionImpl(dashboard, { store: {} })),
     [dashboardResults]
   );
+
   const items = useMemo(
     () => (dashboardResultItems.length > 0 ? [...results, dashboardsSectionTitle, ...dashboardResultItems] : results),
     [results, dashboardsSectionTitle, dashboardResultItems]
   );
 
   return (
-    <div className={styles.resultsContainer}>
-      <KBarResults
-        items={items}
-        onRender={({ item, active }) =>
+    <KBarResults
+      items={items}
+      onRender={({ item, active }) => {
+        // These items are rendered in a container, in a virtual list, so we cannot
+        // use :first/last-child selectors, so we must mimic them in JS
+        const isFirstItem = items[0] === item;
+        const isLastItem = items[items.length - 1] === item;
+
+        const renderedItem =
           typeof item === 'string' ? (
-            <div className={styles.sectionHeader}>{item}</div>
+            <div className={styles.sectionHeader}>
+              <div className={cx(styles.sectionHeaderInner, isFirstItem && styles.sectionHeaderInnerFirst)}>{item}</div>
+            </div>
           ) : (
             <ResultItem action={item} active={active} currentRootActionId={rootActionId!} />
-          )
-        }
-      />
-    </div>
+          );
+
+        return isLastItem ? <div className={styles.lastItem}>{renderedItem}</div> : renderedItem;
+      }}
+    />
   );
 };
 
@@ -137,15 +146,30 @@ const getSearchStyles = (theme: GrafanaTheme2) => ({
     border: 'none',
     background: theme.colors.background.canvas,
     color: theme.colors.text.primary,
-    borderBottom: `1px solid ${theme.colors.border.weak}`,
+    borderBottom: `1px solid ${theme.colors.border.medium}`,
   }),
+
+  // Virtual list measures margin incorrectly, so we need to split padding before/after border
+  // over and inner and outer element
   sectionHeader: css({
-    padding: theme.spacing(1, 2),
+    paddingTop: theme.spacing(2),
     fontSize: theme.typography.h6.fontSize,
     fontWeight: theme.typography.body.fontWeight,
     color: theme.colors.text.secondary,
   }),
-  resultsContainer: css({
-    padding: theme.spacing(2, 0),
+  sectionHeaderInner: css({
+    padding: theme.spacing(1, 2),
+    borderTop: `1px solid ${theme.colors.border.medium}`,
+  }),
+
+  // We don't need the header above the first section
+  sectionHeaderInnerFirst: css({
+    borderTop: 'none',
+    paddingTop: 0,
+  }),
+
+  // Last item gets extra padding so it's not clipped by the rounded corners on the container
+  lastItem: css({
+    paddingBottom: theme.spacing(1),
   }),
 });
diff --git a/public/app/features/commandPalette/ResultItem.tsx b/public/app/features/commandPalette/ResultItem.tsx
index d82be2c2c89..fc4858fa00e 100644
--- a/public/app/features/commandPalette/ResultItem.tsx
+++ b/public/app/features/commandPalette/ResultItem.tsx
@@ -78,6 +78,7 @@ const getResultItemStyles = (theme: GrafanaTheme2, isActive: boolean) => {
       alightItems: 'center',
       justifyContent: 'space-between',
       cursor: 'pointer',
+      position: 'relative',
       '&:before': {
         display: isActive ? 'block' : 'none',
         content: '" "',
@@ -107,8 +108,8 @@ const getResultItemStyles = (theme: GrafanaTheme2, isActive: boolean) => {
       fontSize: theme.typography.fontSize,
     }),
     breadcrumbAncestor: css({
-      opacity: 0.5,
       marginRight: theme.spacing(1),
+      color: theme.colors.text.secondary,
     }),
     subtitleText: css({
       fontSize: theme.typography.fontSize - 2,