diff --git a/public/app/features/dashboard-scene/serialization/transformSaveModelToScene.test.ts b/public/app/features/dashboard-scene/serialization/transformSaveModelToScene.test.ts
index 908dbbcca4c..212dbfbb7bf 100644
--- a/public/app/features/dashboard-scene/serialization/transformSaveModelToScene.test.ts
+++ b/public/app/features/dashboard-scene/serialization/transformSaveModelToScene.test.ts
@@ -186,12 +186,26 @@ describe('transformSaveModelToScene', () => {
         gridPos: { x: 1, y: 0, w: 12, h: 8 },
       }) as Panel;
 
+      const widgetLibPanel = {
+        title: 'Widget Panel',
+        type: 'add-library-panel',
+      };
+
+      const libPanel = createPanelSaveModel({
+        title: 'Library Panel',
+        gridPos: { x: 0, y: 0, w: 12, h: 8 },
+        libraryPanel: {
+          uid: '123',
+          name: 'My Panel',
+        },
+      });
+
       const row = createPanelSaveModel({
         title: 'test',
         type: 'row',
         gridPos: { x: 0, y: 0, w: 12, h: 1 },
         collapsed: true,
-        panels: [panel],
+        panels: [panel, widgetLibPanel, libPanel],
       }) as unknown as RowPanel;
 
       const dashboard = {
@@ -210,8 +224,12 @@ describe('transformSaveModelToScene', () => {
       expect(rowScene.state.title).toEqual(row.title);
       expect(rowScene.state.y).toEqual(row.gridPos!.y);
       expect(rowScene.state.isCollapsed).toEqual(row.collapsed);
-      expect(rowScene.state.children).toHaveLength(1);
+      expect(rowScene.state.children).toHaveLength(3);
       expect(rowScene.state.children[0]).toBeInstanceOf(SceneGridItem);
+      expect(rowScene.state.children[1]).toBeInstanceOf(SceneGridItem);
+      expect(rowScene.state.children[2]).toBeInstanceOf(SceneGridItem);
+      expect((rowScene.state.children[1] as SceneGridItem).state.body!).toBeInstanceOf(AddLibraryPanelWidget);
+      expect((rowScene.state.children[2] as SceneGridItem).state.body!).toBeInstanceOf(LibraryVizPanel);
     });
 
     it('should create panels within expanded row', () => {
@@ -224,6 +242,24 @@ describe('transformSaveModelToScene', () => {
           y: 0,
         },
       });
+      const widgetLibPanelOutOfRow = {
+        title: 'Widget Panel',
+        type: 'add-library-panel',
+        gridPos: {
+          h: 8,
+          w: 12,
+          x: 12,
+          y: 0,
+        },
+      };
+      const libPanelOutOfRow = createPanelSaveModel({
+        title: 'Library Panel',
+        gridPos: { x: 0, y: 8, w: 12, h: 8 },
+        libraryPanel: {
+          uid: '123',
+          name: 'My Panel',
+        },
+      });
       const rowWithPanel = createPanelSaveModel({
         title: 'Row with panel',
         type: 'row',
@@ -233,7 +269,7 @@ describe('transformSaveModelToScene', () => {
           h: 1,
           w: 24,
           x: 0,
-          y: 8,
+          y: 16,
         },
         // This panels array is not used if the row is not collapsed
         panels: [],
@@ -243,17 +279,35 @@ describe('transformSaveModelToScene', () => {
           h: 8,
           w: 12,
           x: 0,
-          y: 9,
+          y: 17,
         },
         title: 'In row 1',
       });
+      const widgetLibPanelInRow = {
+        title: 'Widget Panel',
+        type: 'add-library-panel',
+        gridPos: {
+          h: 8,
+          w: 12,
+          x: 12,
+          y: 17,
+        },
+      };
+      const libPanelInRow = createPanelSaveModel({
+        title: 'Library Panel',
+        gridPos: { x: 0, y: 25, w: 12, h: 8 },
+        libraryPanel: {
+          uid: '123',
+          name: 'My Panel',
+        },
+      });
       const emptyRow = createPanelSaveModel({
         collapsed: false,
         gridPos: {
           h: 1,
           w: 24,
           x: 0,
-          y: 17,
+          y: 26,
         },
         // This panels array is not used if the row is not collapsed
         panels: [],
@@ -262,7 +316,16 @@ describe('transformSaveModelToScene', () => {
       });
       const dashboard = {
         ...defaultDashboard,
-        panels: [panelOutOfRow, rowWithPanel, panelInRow, emptyRow],
+        panels: [
+          panelOutOfRow,
+          widgetLibPanelOutOfRow,
+          libPanelOutOfRow,
+          rowWithPanel,
+          panelInRow,
+          widgetLibPanelInRow,
+          libPanelInRow,
+          emptyRow,
+        ],
       };
 
       const oldModel = new DashboardModel(dashboard);
@@ -270,25 +333,37 @@ describe('transformSaveModelToScene', () => {
       const scene = createDashboardSceneFromDashboardModel(oldModel);
       const body = scene.state.body as SceneGridLayout;
 
-      expect(body.state.children).toHaveLength(3);
+      expect(body.state.children).toHaveLength(5);
       expect(body).toBeInstanceOf(SceneGridLayout);
       // Panel out of row
       expect(body.state.children[0]).toBeInstanceOf(SceneGridItem);
       const panelOutOfRowVizPanel = body.state.children[0] as SceneGridItem;
       expect((panelOutOfRowVizPanel.state.body as VizPanel)?.state.title).toBe(panelOutOfRow.title);
-      // Row with panel
-      expect(body.state.children[1]).toBeInstanceOf(SceneGridRow);
-      const rowWithPanelsScene = body.state.children[1] as SceneGridRow;
+      // widget lib panel out of row
+      expect(body.state.children[1]).toBeInstanceOf(SceneGridItem);
+      const panelOutOfRowWidget = body.state.children[1] as SceneGridItem;
+      expect(panelOutOfRowWidget.state.body!).toBeInstanceOf(AddLibraryPanelWidget);
+      // lib panel out of row
+      expect(body.state.children[2]).toBeInstanceOf(SceneGridItem);
+      const panelOutOfRowLibVizPanel = body.state.children[2] as SceneGridItem;
+      expect(panelOutOfRowLibVizPanel.state.body!).toBeInstanceOf(LibraryVizPanel);
+      // Row with panels
+      expect(body.state.children[3]).toBeInstanceOf(SceneGridRow);
+      const rowWithPanelsScene = body.state.children[3] as SceneGridRow;
       expect(rowWithPanelsScene.state.title).toBe(rowWithPanel.title);
       expect(rowWithPanelsScene.state.key).toBe('panel-10');
-      expect(rowWithPanelsScene.state.children).toHaveLength(1);
+      expect(rowWithPanelsScene.state.children).toHaveLength(3);
+      const widget = rowWithPanelsScene.state.children[1] as SceneGridItem;
+      expect(widget.state.body!).toBeInstanceOf(AddLibraryPanelWidget);
+      const libPanel = rowWithPanelsScene.state.children[2] as SceneGridItem;
+      expect(libPanel.state.body!).toBeInstanceOf(LibraryVizPanel);
       // Panel within row
       expect(rowWithPanelsScene.state.children[0]).toBeInstanceOf(SceneGridItem);
       const panelInRowVizPanel = rowWithPanelsScene.state.children[0] as SceneGridItem;
       expect((panelInRowVizPanel.state.body as VizPanel).state.title).toBe(panelInRow.title);
       // Empty row
-      expect(body.state.children[2]).toBeInstanceOf(SceneGridRow);
-      const emptyRowScene = body.state.children[2] as SceneGridRow;
+      expect(body.state.children[4]).toBeInstanceOf(SceneGridRow);
+      const emptyRowScene = body.state.children[4] as SceneGridRow;
       expect(emptyRowScene.state.title).toBe(emptyRow.title);
       expect(emptyRowScene.state.children).toHaveLength(0);
     });
diff --git a/public/app/features/dashboard-scene/serialization/transformSaveModelToScene.ts b/public/app/features/dashboard-scene/serialization/transformSaveModelToScene.ts
index 1957b83104c..2ecd10085d7 100644
--- a/public/app/features/dashboard-scene/serialization/transformSaveModelToScene.ts
+++ b/public/app/features/dashboard-scene/serialization/transformSaveModelToScene.ts
@@ -114,12 +114,25 @@ export function createSceneObjectsForPanels(oldPanels: PanelModel[]): SceneGridI
     } else if (panel.type === 'add-library-panel') {
       const gridItem = buildGridItemForLibraryPanelWidget(panel);
 
-      if (gridItem) {
+      if (!gridItem) {
+        continue;
+      }
+
+      if (currentRow) {
+        currentRowPanels.push(gridItem);
+      } else {
         panels.push(gridItem);
       }
     } else if (panel.libraryPanel?.uid && !('model' in panel.libraryPanel)) {
       const gridItem = buildGridItemForLibPanel(panel);
-      if (gridItem) {
+
+      if (!gridItem) {
+        continue;
+      }
+
+      if (currentRow) {
+        currentRowPanels.push(gridItem);
+      } else {
         panels.push(gridItem);
       }
     } else {
@@ -155,6 +168,25 @@ function createRowFromPanelModel(row: PanelModel, content: SceneGridItemLike[]):
         if (!(saveModel instanceof PanelModel)) {
           saveModel = new PanelModel(saveModel);
         }
+
+        if (saveModel.type === 'add-library-panel') {
+          const gridItem = buildGridItemForLibraryPanelWidget(saveModel);
+
+          if (!gridItem) {
+            throw new Error('Failed to build grid item for library panel widget');
+          }
+
+          return gridItem;
+        } else if (saveModel.libraryPanel?.uid && !('model' in saveModel.libraryPanel)) {
+          const gridItem = buildGridItemForLibPanel(saveModel);
+
+          if (!gridItem) {
+            throw new Error('Failed to build grid item for library panel');
+          }
+
+          return gridItem;
+        }
+
         return buildGridItemForPanel(saveModel);
       });
     }