diff --git a/e2e-playwright/dashboard-new-layouts/dashboard-group-panels.spec.ts b/e2e-playwright/dashboard-new-layouts/dashboard-group-panels.spec.ts
index f077f48a7e0..c35eb03bf84 100644
--- a/e2e-playwright/dashboard-new-layouts/dashboard-group-panels.spec.ts
+++ b/e2e-playwright/dashboard-new-layouts/dashboard-group-panels.spec.ts
@@ -416,9 +416,6 @@ test.describe(
       // Go back to dashboard options
       await dashboardPage.getByGrafanaSelector(selectors.pages.Dashboard.Sidebar.optionsButton).click();
 
-      // Expand layouts section
-      await page.getByLabel('Expand Group layout category').click();
-
       // Select tabs layout
       await page.getByLabel('layout-selection-option-Tabs').click();
 
@@ -757,9 +754,6 @@ test.describe(
       // Go back to dashboard options
       await dashboardPage.getByGrafanaSelector(selectors.pages.Dashboard.Sidebar.optionsButton).click();
 
-      // Expand layouts section
-      await page.getByLabel('Expand Group layout category').click();
-
       // Select rows layout
       await page.getByLabel('layout-selection-option-Rows').click();
 
diff --git a/e2e-playwright/dashboard-new-layouts/dashboards-panel-layouts.spec.ts b/e2e-playwright/dashboard-new-layouts/dashboards-panel-layouts.spec.ts
index 66d634eefa7..ffacaa13912 100644
--- a/e2e-playwright/dashboard-new-layouts/dashboards-panel-layouts.spec.ts
+++ b/e2e-playwright/dashboard-new-layouts/dashboards-panel-layouts.spec.ts
@@ -33,7 +33,6 @@ test.describe(
       ).toHaveCount(3);
 
       await dashboardPage.getByGrafanaSelector(selectors.pages.Dashboard.Sidebar.optionsButton).click();
-      await page.getByLabel('Expand Panel layout category').click();
       await page.getByLabel('layout-selection-option-Auto grid').click();
 
       await expect(
@@ -65,8 +64,6 @@ test.describe(
       ).toHaveCount(3);
 
       await dashboardPage.getByGrafanaSelector(selectors.pages.Dashboard.Sidebar.optionsButton).click();
-      await page.getByLabel('Expand Panel layout category').click();
-
       await page.getByLabel('layout-selection-option-Auto grid').click();
 
       // Get initial positions - standard width should have panels on different rows
@@ -127,8 +124,6 @@ test.describe(
       ).toHaveCount(3);
 
       await dashboardPage.getByGrafanaSelector(selectors.pages.Dashboard.Sidebar.optionsButton).click();
-      await page.getByLabel('Expand Panel layout category').click();
-
       await page.getByLabel('layout-selection-option-Auto grid').click();
 
       await dashboardPage
@@ -186,7 +181,6 @@ test.describe(
       ).toHaveCount(3);
 
       await dashboardPage.getByGrafanaSelector(selectors.pages.Dashboard.Sidebar.optionsButton).click();
-      await page.getByLabel('Expand Panel layout category').click();
       await page.getByLabel('layout-selection-option-Auto grid').click();
 
       await dashboardPage
@@ -222,7 +216,6 @@ test.describe(
       ).toHaveCount(3);
 
       await dashboardPage.getByGrafanaSelector(selectors.pages.Dashboard.Sidebar.optionsButton).click();
-      await page.getByLabel('Expand Panel layout category').click();
       await page.getByLabel('layout-selection-option-Auto grid').click();
 
       const regularRowHeight = await getPanelHeight(dashboardPage, selectors);
@@ -278,7 +271,6 @@ test.describe(
       ).toHaveCount(3);
 
       await dashboardPage.getByGrafanaSelector(selectors.pages.Dashboard.Sidebar.optionsButton).click();
-      await page.getByLabel('Expand Panel layout category').click();
       await page.getByLabel('layout-selection-option-Auto grid').click();
 
       const regularRowHeight = await getPanelHeight(dashboardPage, selectors);
@@ -336,7 +328,6 @@ test.describe(
       ).toHaveCount(3);
 
       await dashboardPage.getByGrafanaSelector(selectors.pages.Dashboard.Sidebar.optionsButton).click();
-      await page.getByLabel('Expand Panel layout category').click();
       await page.getByLabel('layout-selection-option-Auto grid').click();
 
       // Set narrow column width first to ensure panels fit horizontally
diff --git a/e2e-playwright/dashboard-new-layouts/dashboards-repeats-auto-grid.spec.ts b/e2e-playwright/dashboard-new-layouts/dashboards-repeats-auto-grid.spec.ts
index 7cf22108e1e..dbba5c583c1 100644
--- a/e2e-playwright/dashboard-new-layouts/dashboards-repeats-auto-grid.spec.ts
+++ b/e2e-playwright/dashboard-new-layouts/dashboards-repeats-auto-grid.spec.ts
@@ -464,6 +464,5 @@ test.describe(
 );
 
 async function switchToAutoGrid(page: Page) {
-  await page.getByLabel('Expand Panel layout category').click();
   await page.getByLabel('layout-selection-option-Auto grid').click();
 }
diff --git a/public/app/features/dashboard-scene/scene/layouts-shared/DashboardLayoutSelector.tsx b/public/app/features/dashboard-scene/scene/layouts-shared/DashboardLayoutSelector.tsx
index f4714e7d420..e959352986a 100644
--- a/public/app/features/dashboard-scene/scene/layouts-shared/DashboardLayoutSelector.tsx
+++ b/public/app/features/dashboard-scene/scene/layouts-shared/DashboardLayoutSelector.tsx
@@ -66,7 +66,7 @@ export function DashboardLayoutSelector({ layoutManager }: Props) {
   });
 
   return (
-    <Box paddingBottom={2} display="flex" grow={1} alignItems="center">
+    <Box paddingBottom={2} display="flex" grow={1} alignItems="stretch" gap={2} direction={'column'}>
       <RadioButtonGroup
         fullWidth
         value={layoutManager.descriptor}
@@ -79,21 +79,13 @@ export function DashboardLayoutSelector({ layoutManager }: Props) {
 }
 export function useLayoutCategory(layoutManager: DashboardLayoutManager) {
   return useMemo(() => {
-    const isGridLayout = layoutManager.descriptor.isGridLayout;
-
-    const groupLayout = new OptionsPaneCategoryDescriptor({
-      title: t('dashboard.layout.common.group-layout', 'Group layout'),
-      id: 'dash-group-layout',
-      isOpenDefault: false,
+    const layout = new OptionsPaneCategoryDescriptor({
+      title: t('dashboard.layout.common.layout', 'Layout'),
+      id: 'layout',
+      isOpenDefault: true,
     });
 
-    const gridLayout = new OptionsPaneCategoryDescriptor({
-      title: t('dashboard.layout.common.panel-layout', 'Panel layout'),
-      id: 'dash-grid-layout',
-      isOpenDefault: false,
-    });
-
-    gridLayout.addItem(
+    layout.addItem(
       new OptionsPaneItemDescriptor({
         title: '',
         id: 'dash-grid-layout-option',
@@ -102,33 +94,12 @@ export function useLayoutCategory(layoutManager: DashboardLayoutManager) {
       })
     );
 
-    if (isGridLayout) {
-      groupLayout.props.disabledText = t(
-        'dashboard.layout.common.group-layout-disabled',
-        'No groups exists on this level'
-      );
-    } else {
-      groupLayout.addItem(
-        new OptionsPaneItemDescriptor({
-          title: '',
-          id: 'dash-group-layout-option',
-          skipField: true,
-          render: () => <DashboardLayoutSelector layoutManager={layoutManager} />,
-        })
-      );
-
-      gridLayout.props.disabledText = t(
-        'dashboard.layout.common.panel-layout-disabled',
-        'Select a row or tab to change panel layout options'
-      );
-    }
-
     if (layoutManager.getOptions) {
       for (const option of layoutManager.getOptions()) {
-        gridLayout.addItem(option);
+        layout.addItem(option);
       }
     }
 
-    return [groupLayout, gridLayout];
+    return [layout];
   }, [layoutManager]);
 }
diff --git a/public/locales/en-US/grafana.json b/public/locales/en-US/grafana.json
index 1253a3ecf56..ac054cb8f7a 100644
--- a/public/locales/en-US/grafana.json
+++ b/public/locales/en-US/grafana.json
@@ -5085,10 +5085,7 @@
         "copy-or-duplicate": "Copy or Duplicate",
         "delete": "Delete",
         "duplicate": "Duplicate",
-        "group-layout": "Group layout",
-        "group-layout-disabled": "No groups exists on this level",
-        "panel-layout": "Panel layout",
-        "panel-layout-disabled": "Select a row or tab to change panel layout options"
+        "layout": "Layout"
       },
       "continue": "Continue",
       "ungroup-nested-text": "This will ungroup all nested groups.",