diff --git a/packages/grafana-ui/src/components/PanelChrome/HoverWidget.tsx b/packages/grafana-ui/src/components/PanelChrome/HoverWidget.tsx
index e2c61f98f7e..cb16dfac8ca 100644
--- a/packages/grafana-ui/src/components/PanelChrome/HoverWidget.tsx
+++ b/packages/grafana-ui/src/components/PanelChrome/HoverWidget.tsx
@@ -76,6 +76,7 @@ function getStyles(theme: GrafanaTheme2) {
       display: 'flex',
       position: 'absolute',
       zIndex: 1,
+      right: 0,
       boxSizing: 'border-box',
       alignItems: 'center',
       background: theme.colors.background.secondary,
diff --git a/packages/grafana-ui/src/components/PanelChrome/PanelChrome.test.tsx b/packages/grafana-ui/src/components/PanelChrome/PanelChrome.test.tsx
index 5fb4e4e072f..2c4d8255789 100644
--- a/packages/grafana-ui/src/components/PanelChrome/PanelChrome.test.tsx
+++ b/packages/grafana-ui/src/components/PanelChrome/PanelChrome.test.tsx
@@ -60,11 +60,6 @@ it('renders panel with a header if prop leftItems', () => {
   expect(screen.getByTestId('header-container')).toBeInTheDocument();
 });
 
-it('renders panel with hover header if no title, no leftItems, hoverHeader is undefined but menu is present', () => {
-  setup({ title: '', leftItems: undefined, hoverHeader: undefined, menu: <div>Menu</div> });
-  expect(screen.getByTestId('hover-header-container')).toBeInTheDocument();
-});
-
 it('renders panel with a hovering header if prop hoverHeader is true', () => {
   setup({ title: 'Test Panel Header', hoverHeader: true });
 
@@ -87,12 +82,6 @@ it('renders panel with a header with icons in place if prop titleItems', () => {
   expect(screen.getByTestId('title-items-container')).toBeInTheDocument();
 });
 
-it('renders panel with a hover header if prop menu is present and hoverHeader is false', () => {
-  setup({ menu: <div> Menu </div>, hoverHeader: false });
-
-  expect(screen.getByTestId('hover-header-container')).toBeInTheDocument();
-});
-
 it('renders panel with a show-on-hover menu icon if prop menu', () => {
   setup({ menu: <div> Menu </div> });
 
diff --git a/packages/grafana-ui/src/components/PanelChrome/PanelChrome.tsx b/packages/grafana-ui/src/components/PanelChrome/PanelChrome.tsx
index 398cb586fc6..3ff8f3b0e2b 100644
--- a/packages/grafana-ui/src/components/PanelChrome/PanelChrome.tsx
+++ b/packages/grafana-ui/src/components/PanelChrome/PanelChrome.tsx
@@ -84,19 +84,7 @@ export function PanelChrome({
 }: PanelChromeProps) {
   const theme = useTheme2();
   const styles = useStyles2(getStyles);
-
-  // To Do rely on hoverHeader prop for header, not separate props
-  // once hoverHeader is implemented
-  //
-  // Backwards compatibility for having a designated space for the header
-
-  const hasHeader =
-    hoverHeader === false &&
-    (title.length > 0 ||
-      titleItems !== undefined ||
-      description !== '' ||
-      loadingState === LoadingState.Streaming ||
-      (leftItems?.length ?? 0) > 0);
+  const hasHeader = !hoverHeader;
 
   const headerHeight = getHeaderHeight(theme, hasHeader);
   const { contentStyle, innerWidth, innerHeight } = getContentStyle(padding, theme, width, headerHeight, height);
@@ -122,13 +110,10 @@ export function PanelChrome({
         </h6>
       )}
 
-      <PanelDescription description={description} className={dragClassCancel} />
-
-      {titleItems !== undefined && (
-        <div className={cx(styles.titleItems, dragClassCancel)} data-testid="title-items-container">
-          {titleItems}
-        </div>
-      )}
+      <div className={cx(styles.titleItems, dragClassCancel)} data-testid="title-items-container">
+        <PanelDescription description={description} className={dragClassCancel} />
+        {titleItems}
+      </div>
 
       {loadingState === LoadingState.Streaming && (
         <Tooltip content="Streaming">
@@ -141,23 +126,34 @@ export function PanelChrome({
   );
 
   return (
-    <div
-      className={cx(styles.container, { [styles.regularHeader]: hasHeader })}
-      style={containerStyles}
-      aria-label={ariaLabel}
-    >
+    <div className={styles.container} style={containerStyles} aria-label={ariaLabel}>
       <div className={styles.loadingBarContainer}>
         {loadingState === LoadingState.Loading ? <LoadingBar width={width} ariaLabel="Panel loading bar" /> : null}
       </div>
 
-      {(hoverHeader || !hasHeader) && menu && (
-        <HoverWidget menu={menu} title={title} offset={hoverHeaderOffset} dragClass={dragClass}>
-          {headerContent}
-        </HoverWidget>
+      {hoverHeader && (
+        <>
+          {menu && (
+            <HoverWidget menu={menu} title={title} offset={hoverHeaderOffset} dragClass={dragClass}>
+              {headerContent}
+            </HoverWidget>
+          )}
+          {statusMessage && (
+            <div className={styles.errorContainerFloating}>
+              <PanelStatus message={statusMessage} onClick={statusMessageOnClick} ariaLabel="Panel status" />
+            </div>
+          )}
+        </>
       )}
 
       {hasHeader && (
         <div className={cx(styles.headerContainer, dragClass)} style={headerStyles} data-testid="header-container">
+          {statusMessage && (
+            <div className={dragClassCancel}>
+              <PanelStatus message={statusMessage} onClick={statusMessageOnClick} ariaLabel="Panel status" />
+            </div>
+          )}
+
           {headerContent}
 
           <div className={styles.rightAligned}>
@@ -175,15 +171,6 @@ export function PanelChrome({
         </div>
       )}
 
-      {statusMessage && (
-        <PanelStatus
-          className={cx(styles.errorContainer, dragClassCancel)}
-          message={statusMessage}
-          onClick={statusMessageOnClick}
-          ariaLabel="Panel status"
-        />
-      )}
-
       <div className={styles.content} style={contentStyle}>
         {children(innerWidth, innerHeight)}
       </div>
@@ -245,6 +232,7 @@ const getStyles = (theme: GrafanaTheme2) => {
         visibility: 'hidden',
         opacity: '0',
       },
+
       '&:focus-visible, &:hover': {
         // only show menu icon on hover or focused panel
         '.show-on-hover': {
@@ -256,8 +244,7 @@ const getStyles = (theme: GrafanaTheme2) => {
       '&:focus-visible': {
         outline: `1px solid ${theme.colors.action.focus}`,
       },
-    }),
-    regularHeader: css({
+
       '&:focus-within': {
         '.show-on-hover': {
           visibility: 'visible',
@@ -281,7 +268,6 @@ const getStyles = (theme: GrafanaTheme2) => {
       label: 'panel-header',
       display: 'flex',
       alignItems: 'center',
-      padding: theme.spacing(0, 0, 0, padding),
     }),
     streaming: css({
       label: 'panel-streaming',
@@ -295,7 +281,7 @@ const getStyles = (theme: GrafanaTheme2) => {
     title: css({
       label: 'panel-title',
       marginBottom: 0, // override default h6 margin-bottom
-      paddingRight: theme.spacing(1),
+      padding: theme.spacing(0, padding),
       textOverflow: 'ellipsis',
       overflow: 'hidden',
       whiteSpace: 'nowrap',
@@ -316,14 +302,11 @@ const getStyles = (theme: GrafanaTheme2) => {
       visibility: 'hidden',
       border: 'none',
     }),
-    errorContainer: css({
+    errorContainerFloating: css({
       label: 'error-container',
       position: 'absolute',
-      left: '50%',
-      transform: 'translateX(-50%)',
-      display: 'flex',
-      alignItems: 'center',
-      justifyContent: 'center',
+      left: 0,
+      top: 0,
       zIndex: theme.zIndex.tooltip,
     }),
     leftItems: css({
diff --git a/packages/grafana-ui/src/components/PanelChrome/PanelStatus.tsx b/packages/grafana-ui/src/components/PanelChrome/PanelStatus.tsx
index 55fd516f6ba..7e83298fd3a 100644
--- a/packages/grafana-ui/src/components/PanelChrome/PanelStatus.tsx
+++ b/packages/grafana-ui/src/components/PanelChrome/PanelStatus.tsx
@@ -1,4 +1,4 @@
-import { cx, css } from '@emotion/css';
+import { css } from '@emotion/css';
 import React from 'react';
 
 import { GrafanaTheme2 } from '@grafana/data';
@@ -7,18 +7,17 @@ import { useStyles2 } from '../../themes';
 import { ToolbarButton } from '../ToolbarButton/ToolbarButton';
 
 export interface Props {
-  className?: string;
   message?: string;
   onClick?: (e: React.SyntheticEvent) => void;
   ariaLabel?: string;
 }
 
-export function PanelStatus({ className, message, onClick, ariaLabel = 'status' }: Props) {
+export function PanelStatus({ message, onClick, ariaLabel = 'status' }: Props) {
   const styles = useStyles2(getStyles);
 
   return (
     <ToolbarButton
-      className={cx(className, styles.buttonStyles)}
+      className={styles.buttonStyles}
       onClick={onClick}
       variant={'destructive'}
       icon="exclamation-triangle"
diff --git a/public/app/features/dashboard/dashgrid/PanelHeader/PanelHeaderTitleItems.tsx b/public/app/features/dashboard/dashgrid/PanelHeader/PanelHeaderTitleItems.tsx
index df92d69525e..8f43db0f959 100644
--- a/public/app/features/dashboard/dashgrid/PanelHeader/PanelHeaderTitleItems.tsx
+++ b/public/app/features/dashboard/dashgrid/PanelHeader/PanelHeaderTitleItems.tsx
@@ -73,6 +73,7 @@ const getStyles = (theme: GrafanaTheme2) => {
     }),
     timeshift: css({
       color: theme.colors.text.link,
+      gap: theme.spacing(0.5),
 
       '&:hover': {
         color: theme.colors.emphasize(theme.colors.text.link, 0.03),
diff --git a/public/app/features/dashboard/dashgrid/PanelStateWrapper.tsx b/public/app/features/dashboard/dashgrid/PanelStateWrapper.tsx
index 6e2c72fc71a..b6648bfc838 100644
--- a/public/app/features/dashboard/dashgrid/PanelStateWrapper.tsx
+++ b/public/app/features/dashboard/dashgrid/PanelStateWrapper.tsx
@@ -631,12 +631,13 @@ export class PanelStateWrapper extends PureComponent<Props, State> {
     const { transparent } = panel;
 
     const alertState = data.alertState?.state;
+    const hasHoverHeader = this.hasOverlayHeader();
 
     const containerClassNames = classNames({
       'panel-container': true,
       'panel-container--absolute': isSoloRoute(locationService.getLocation().pathname),
       'panel-container--transparent': transparent,
-      'panel-container--no-title': this.hasOverlayHeader(),
+      'panel-container--no-title': hasHoverHeader,
       [`panel-alert-state--${alertState}`]: alertState !== undefined,
     });
 
@@ -648,6 +649,7 @@ export class PanelStateWrapper extends PureComponent<Props, State> {
       (data.series.length > 0 && data.series.some((v) => (v.meta?.notices?.length ?? 0) > 0)) ||
       (data.request && data.request.timeInfo) ||
       alertState;
+
     const titleItems = showTitleItems && (
       <PanelHeaderTitleItems
         key="title-items"
@@ -685,7 +687,7 @@ export class PanelStateWrapper extends PureComponent<Props, State> {
           dragClassCancel="grid-drag-cancel"
           padding={padding}
           hoverHeaderOffset={hoverHeaderOffset}
-          hoverHeader={title ? false : true}
+          hoverHeader={this.hasOverlayHeader()}
           displayMode={transparent ? 'transparent' : 'default'}
         >
           {(innerWidth, innerHeight) => (