diff --git a/public/app/features/alerting/unified/PanelAlertTabContent.test.tsx b/public/app/features/alerting/unified/PanelAlertTabContent.test.tsx
index 88bb90929fa..cd0170429f1 100644
--- a/public/app/features/alerting/unified/PanelAlertTabContent.test.tsx
+++ b/public/app/features/alerting/unified/PanelAlertTabContent.test.tsx
@@ -1,4 +1,4 @@
-import { render, act } from '@testing-library/react';
+import { render, act, waitFor } from '@testing-library/react';
 import React from 'react';
 import { Provider } from 'react-redux';
 import { Router } from 'react-router-dom';
@@ -9,6 +9,8 @@ import { locationService, setDataSourceSrv } from '@grafana/runtime';
 import { ExpressionDatasourceRef } from '@grafana/runtime/src/utils/DataSourceWithBackend';
 import { DashboardModel, PanelModel } from 'app/features/dashboard/state';
 import { getDatasourceSrv } from 'app/features/plugins/datasource_srv';
+import { toggleOption } from 'app/features/variables/pickers/OptionsPicker/reducer';
+import { toKeyedAction } from 'app/features/variables/state/keyedVariablesReducer';
 import { PrometheusDatasource } from 'app/plugins/datasource/prometheus/datasource';
 import { PromOptions } from 'app/plugins/datasource/prometheus/types';
 import { configureStore } from 'app/store/configureStore';
@@ -28,6 +30,7 @@ import {
 import { getAllDataSources } from './utils/config';
 import { Annotation } from './utils/constants';
 import { DataSourceType, GRAFANA_RULES_SOURCE_NAME } from './utils/datasource';
+import * as ruleFormUtils from './utils/rule-form';
 
 jest.mock('./api/prometheus');
 jest.mock('./api/ruler');
@@ -56,8 +59,12 @@ const mocks = {
   },
 };
 
-const renderAlertTabContent = (dashboard: DashboardModel, panel: PanelModel) => {
-  const store = configureStore();
+const renderAlertTabContent = (
+  dashboard: DashboardModel,
+  panel: PanelModel,
+  initialStore?: ReturnType<typeof configureStore>
+) => {
+  const store = initialStore ?? configureStore();
 
   return act(async () => {
     render(
@@ -349,4 +356,24 @@ describe('PanelAlertTabContent', () => {
       panelId: panel.id,
     });
   });
+
+  it('Update NewRuleFromPanel button url when template changes', async () => {
+    const panelToRuleValuesSpy = jest.spyOn(ruleFormUtils, 'panelToRuleFormValues');
+
+    const store = configureStore();
+    await renderAlertTabContent(dashboard, panel, store);
+
+    store.dispatch(
+      toKeyedAction(
+        'optionKey',
+        toggleOption({
+          option: { value: 'optionValue', selected: true, text: 'Option' },
+          clearOthers: false,
+          forceSelect: false,
+        })
+      )
+    );
+
+    await waitFor(() => expect(panelToRuleValuesSpy).toHaveBeenCalledTimes(2));
+  });
 });
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 6b500e8ab46..608f830987d 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
@@ -1,10 +1,12 @@
 import React, { FC } from 'react';
+import { useSelector } from 'react-redux';
 import { useLocation } from 'react-router-dom';
 import { useAsync } from 'react-use';
 
 import { urlUtil } from '@grafana/data';
-import { Alert, LinkButton, Button } from '@grafana/ui';
+import { Alert, Button, LinkButton } from '@grafana/ui';
 import { DashboardModel, PanelModel } from 'app/features/dashboard/state';
+import { StoreState } from 'app/types';
 
 import { panelToRuleFormValues } from '../../utils/rule-form';
 
@@ -15,8 +17,18 @@ interface Props {
 }
 
 export const NewRuleFromPanelButton: FC<Props> = ({ dashboard, panel, className }) => {
-  const { loading, value: formValues } = useAsync(() => panelToRuleFormValues(panel, dashboard), [panel, dashboard]);
+  const templating = useSelector((state: StoreState) => {
+    return state.templating;
+  });
+
   const location = useLocation();
+
+  const { loading, value: formValues } = useAsync(
+    () => panelToRuleFormValues(panel, dashboard),
+    // Templating variables are required to update formValues on each variable's change. It's used implicitly by the templating engine
+    [panel, dashboard, templating]
+  );
+
   if (loading) {
     return <Button disabled={true}>Create alert rule from this panel</Button>;
   }
diff --git a/public/app/features/dashboard/components/PanelEditor/PanelEditorTabs.tsx b/public/app/features/dashboard/components/PanelEditor/PanelEditorTabs.tsx
index e9c4ed1a4dc..3d8be41e1c4 100644
--- a/public/app/features/dashboard/components/PanelEditor/PanelEditorTabs.tsx
+++ b/public/app/features/dashboard/components/PanelEditor/PanelEditorTabs.tsx
@@ -31,7 +31,7 @@ export const PanelEditorTabs: FC<PanelEditorTabsProps> = React.memo(({ panel, da
     eventSubs.add(panel.events.subscribe(PanelQueriesChangedEvent, forceUpdate));
     eventSubs.add(panel.events.subscribe(PanelTransformationsChangedEvent, forceUpdate));
     return () => eventSubs.unsubscribe();
-  }, [panel, forceUpdate]);
+  }, [panel, dashboard, forceUpdate]);
 
   const activeTab = tabs.find((item) => item.active)!;