diff --git a/public/app/features/alerting/unified/components/AlertRuleDrawerForm.tsx b/public/app/features/alerting/unified/components/AlertRuleDrawerForm.tsx
index 440579a0468..41be22ab514 100644
--- a/public/app/features/alerting/unified/components/AlertRuleDrawerForm.tsx
+++ b/public/app/features/alerting/unified/components/AlertRuleDrawerForm.tsx
@@ -6,6 +6,7 @@ import { GrafanaTheme2 } from '@grafana/data';
 import { t } from '@grafana/i18n';
 import { Button, Drawer, Stack, useStyles2 } from '@grafana/ui';
 import { useAppNotification } from 'app/core/copy/appNotification';
+import { getMessageFromError } from 'app/core/utils/errors';
 import { RuleDefinitionSection } from 'app/features/alerting/unified/components/RuleDefinitionSection';
 
 import { isGrafanaGroupUpdatedResponse } from '../api/alertRuleModel';
@@ -22,14 +23,20 @@ export interface AlertRuleDrawerFormProps {
   isOpen: boolean;
   onClose: () => void;
   title?: string;
-  onContinueInAlerting?: () => void;
+  onContinueInAlerting?: (values: RuleFormValues) => void;
   prefill?: Partial<RuleFormValues>;
 }
 
-export function AlertRuleDrawerForm({ isOpen, onClose, title, onContinueInAlerting, prefill }: AlertRuleDrawerFormProps) {
+export function AlertRuleDrawerForm({
+  isOpen,
+  onClose,
+  title,
+  onContinueInAlerting,
+  prefill,
+}: AlertRuleDrawerFormProps) {
   const baseDefaults = useMemo(() => getDefaultFormValues(RuleFormType.grafana), []);
   const methods = useForm<RuleFormValues>({
-    defaultValues: prefill ? { ...baseDefaults, ...(prefill as Partial<RuleFormValues>) } : baseDefaults,
+    defaultValues: prefill ? { ...baseDefaults, ...prefill } : baseDefaults,
   });
   const styles = useStyles2(getStyles);
   const [addRuleToRuleGroup] = useAddRuleToRuleGroup();
@@ -38,9 +45,9 @@ export function AlertRuleDrawerForm({ isOpen, onClose, title, onContinueInAlerti
   // Keep form in sync if prefill changes between openings
   useEffect(() => {
     if (prefill) {
-      methods.reset({ ...baseDefaults, ...(prefill as Partial<RuleFormValues>) });
+      methods.reset({ ...baseDefaults, ...prefill });
     }
-  }, [prefill, methods]);
+  }, [prefill, methods, baseDefaults]);
 
   if (!isOpen) {
     return null;
@@ -48,7 +55,8 @@ export function AlertRuleDrawerForm({ isOpen, onClose, title, onContinueInAlerti
 
   const submit = async (values: RuleFormValues) => {
     try {
-      const groupName = values.group && values.group.trim().length > 0 ? values.group : (values.name?.trim() || 'default');
+      const groupName =
+        values.group && values.group.trim().length > 0 ? values.group : values.name?.trim() || 'default';
       const effectiveValues: RuleFormValues = { ...values, group: groupName };
 
       const dto = formValuesToRulerGrafanaRuleDTO(effectiveValues);
@@ -59,9 +67,9 @@ export function AlertRuleDrawerForm({ isOpen, onClose, title, onContinueInAlerti
         return;
       }
       notifyApp.error('Failed to create rule', 'The rule was not created. Please review the form and try again.');
-    } catch (err: any) {
-      const msg = err?.data?.message || err?.message || 'Unknown error while creating the rule.';
-      notifyApp.error('Failed to create rule', msg);
+    } catch (err) {
+      const errorMessage = getMessageFromError(err);
+      notifyApp.error('Failed to create rule', errorMessage);
     }
   };
 
@@ -93,7 +101,7 @@ export function AlertRuleDrawerForm({ isOpen, onClose, title, onContinueInAlerti
               {t('alerting.common.cancel', 'Cancel')}
             </Button>
             {onContinueInAlerting && (
-              <Button variant="secondary" type="button" onClick={onContinueInAlerting}>
+              <Button variant="secondary" type="button" onClick={() => onContinueInAlerting(methods.getValues())}>
                 {t('alerting.simplified.continue-in-alerting', 'Continue in Alerting')}
               </Button>
             )}
diff --git a/public/app/features/alerting/unified/components/RuleDefinitionSection.tsx b/public/app/features/alerting/unified/components/RuleDefinitionSection.tsx
index 672b3f2d1bd..197f741e764 100644
--- a/public/app/features/alerting/unified/components/RuleDefinitionSection.tsx
+++ b/public/app/features/alerting/unified/components/RuleDefinitionSection.tsx
@@ -83,7 +83,9 @@ export function RuleDefinitionSection({ type }: { type: RuleFormType }) {
                 isOpen={showLabelsEditor}
                 onClose={(labelsToUpdate) => {
                   if (labelsToUpdate) {
-                    const filtered = labelsToUpdate.filter((l) => (l?.key ?? '').length > 0 || (l?.value ?? '').length > 0);
+                    const filtered = labelsToUpdate.filter(
+                      (l) => (l?.key ?? '').length > 0 || (l?.value ?? '').length > 0
+                    );
                     setValue('labels', filtered, { shouldDirty: true, shouldValidate: true });
                   }
                   setShowLabelsEditor(false);
diff --git a/public/app/features/alerting/unified/components/panel-alerts-tab/NewRuleFromPanelButton.tsx b/public/app/features/alerting/unified/components/panel-alerts-tab/NewRuleFromPanelButton.tsx
index 0194a4e8a79..002a2baf8b9 100644
--- a/public/app/features/alerting/unified/components/panel-alerts-tab/NewRuleFromPanelButton.tsx
+++ b/public/app/features/alerting/unified/components/panel-alerts-tab/NewRuleFromPanelButton.tsx
@@ -12,6 +12,7 @@ import { useSelector } from 'app/types/store';
 
 import { LogMessages } from '../../Analytics';
 import { AlertRuleDrawerForm } from '../../components/AlertRuleDrawerForm';
+import type { RuleFormValues } from '../../types/rule-form';
 import { panelToRuleFormValues } from '../../utils/rule-form';
 
 interface Props {
@@ -58,10 +59,10 @@ export const NewRuleFromPanelButton = ({ dashboard, panel, className }: Props) =
     );
   }
 
-  const onContinueInAlerting = async () => {
+  const navigateToAlerting = async (currentValues?: RuleFormValues) => {
     logInfo(LogMessages.alertRuleFromPanel);
-    // Refresh values to ensure they're up-to-date with current panel state
-    const updateToDateFormValues = await panelToRuleFormValues(panel, dashboard);
+    // Prefer current drawer values if provided; otherwise refresh from panel state
+    const updateToDateFormValues = currentValues ?? (await panelToRuleFormValues(panel, dashboard));
     const ruleFormUrl = urlUtil.renderUrl('alerting/new', {
       defaults: JSON.stringify(updateToDateFormValues),
       returnTo: location.pathname + location.search,
@@ -69,6 +70,14 @@ export const NewRuleFromPanelButton = ({ dashboard, panel, className }: Props) =
     locationService.push(ruleFormUrl);
   };
 
+  const onContinueInAlertingFromDrawer = (values: RuleFormValues) => {
+    void navigateToAlerting(values);
+  };
+
+  const onContinueInAlertingButton = () => {
+    void navigateToAlerting(undefined);
+  };
+
   const shouldUseDrawer = config.featureToggles.createAlertRuleFromPanel;
 
   if (shouldUseDrawer) {
@@ -85,7 +94,7 @@ export const NewRuleFromPanelButton = ({ dashboard, panel, className }: Props) =
         <AlertRuleDrawerForm
           isOpen={isOpen}
           onClose={() => setIsOpen(false)}
-          onContinueInAlerting={onContinueInAlerting}
+          onContinueInAlerting={onContinueInAlertingFromDrawer}
           prefill={formValues ?? undefined}
         />
       </>
@@ -95,7 +104,7 @@ export const NewRuleFromPanelButton = ({ dashboard, panel, className }: Props) =
   return (
     <LinkButton
       icon="bell"
-      onClick={onContinueInAlerting}
+      onClick={onContinueInAlertingButton}
       href={urlUtil.renderUrl('alerting/new', {
         defaults: JSON.stringify(formValues),
         returnTo: location.pathname + location.search,
diff --git a/public/app/features/dashboard-scene/panel-edit/PanelDataPane/NewAlertRuleButton.tsx b/public/app/features/dashboard-scene/panel-edit/PanelDataPane/NewAlertRuleButton.tsx
index 05de1766e98..2f22234c550 100644
--- a/public/app/features/dashboard-scene/panel-edit/PanelDataPane/NewAlertRuleButton.tsx
+++ b/public/app/features/dashboard-scene/panel-edit/PanelDataPane/NewAlertRuleButton.tsx
@@ -9,6 +9,7 @@ import { VizPanel } from '@grafana/scenes';
 import { Alert, Button } from '@grafana/ui';
 import { LogMessages } from 'app/features/alerting/unified/Analytics';
 import { AlertRuleDrawerForm } from 'app/features/alerting/unified/components/AlertRuleDrawerForm';
+import type { RuleFormValues } from 'app/features/alerting/unified/types/rule-form';
 import { scenesPanelToRuleFormValues } from 'app/features/alerting/unified/utils/rule-form';
 
 interface ScenesNewRuleFromPanelButtonProps {
@@ -45,10 +46,10 @@ export const ScenesNewRuleFromPanelButton = ({ panel, className }: ScenesNewRule
     );
   }
 
-  const onClick = async () => {
+  const navigateToAlerting = async (currentValues?: RuleFormValues) => {
     logInfo(LogMessages.alertRuleFromPanel);
 
-    const updateToDateFormValues = await scenesPanelToRuleFormValues(panel);
+    const updateToDateFormValues = currentValues ?? (await scenesPanelToRuleFormValues(panel));
 
     const ruleFormUrl = urlUtil.renderUrl('/alerting/new', {
       defaults: JSON.stringify(updateToDateFormValues),
@@ -58,6 +59,14 @@ export const ScenesNewRuleFromPanelButton = ({ panel, className }: ScenesNewRule
     locationService.push(ruleFormUrl);
   };
 
+  const onContinueInAlertingFromDrawer = (values: RuleFormValues) => {
+    void navigateToAlerting(values);
+  };
+
+  const onButtonClick = () => {
+    void navigateToAlerting(undefined);
+  };
+
   const shouldUseDrawer = config.featureToggles.createAlertRuleFromPanel;
 
   if (shouldUseDrawer) {
@@ -76,7 +85,7 @@ export const ScenesNewRuleFromPanelButton = ({ panel, className }: ScenesNewRule
         <AlertRuleDrawerForm
           isOpen={isOpen}
           onClose={() => setIsOpen(false)}
-          onContinueInAlerting={onClick}
+          onContinueInAlerting={onContinueInAlertingFromDrawer}
           prefill={formValues ?? undefined}
         />
       </>
@@ -84,7 +93,7 @@ export const ScenesNewRuleFromPanelButton = ({ panel, className }: ScenesNewRule
   }
 
   return (
-    <Button icon="bell" onClick={onClick} className={className} data-testid="create-alert-rule-button">
+    <Button icon="bell" onClick={onButtonClick} className={className} data-testid="create-alert-rule-button">
       <Trans i18nKey="dashboard-scene.scenes-new-rule-from-panel-button.new-alert-rule">New alert rule</Trans>
     </Button>
   );