diff --git a/public/app/features/alerting/unified/components/rule-editor/alert-rule-form/simplifiedRouting/route-settings/RouteSettings.tsx b/public/app/features/alerting/unified/components/rule-editor/alert-rule-form/simplifiedRouting/route-settings/RouteSettings.tsx
index d676664f2f1..900ca46a35c 100644
--- a/public/app/features/alerting/unified/components/rule-editor/alert-rule-form/simplifiedRouting/route-settings/RouteSettings.tsx
+++ b/public/app/features/alerting/unified/components/rule-editor/alert-rule-form/simplifiedRouting/route-settings/RouteSettings.tsx
@@ -1,8 +1,8 @@
 import { css } from '@emotion/css';
-import React, { useState } from 'react';
+import React, { useEffect, useState } from 'react';
 import { useFormContext } from 'react-hook-form';
 
-import { GrafanaTheme2 } from '@grafana/data';
+import { GrafanaTheme2, SelectableValue } from '@grafana/data';
 import {
   Field,
   FieldValidationMessage,
@@ -14,6 +14,7 @@ import {
   Text,
   useStyles2,
 } from '@grafana/ui';
+import { MultiValueRemove, MultiValueRemoveProps } from '@grafana/ui/src/components/Select/MultiValue';
 import { RuleFormValues } from 'app/features/alerting/unified/types/rule-form';
 import {
   commonGroupByOptions,
@@ -27,6 +28,15 @@ import { TIMING_OPTIONS_DEFAULTS } from '../../../../notification-policies/timin
 
 import { RouteTimings } from './RouteTimings';
 
+const REQUIRED_FIELDS_IN_GROUPBY = ['grafana_folder', 'alertname'];
+
+const DEFAULTS_TIMINGS = {
+  groupWaitValue: TIMING_OPTIONS_DEFAULTS.group_wait,
+  groupIntervalValue: TIMING_OPTIONS_DEFAULTS.group_interval,
+  repeatIntervalValue: TIMING_OPTIONS_DEFAULTS.repeat_interval,
+};
+const DISABLE_GROUPING = '...';
+
 export interface RoutingSettingsProps {
   alertManager: string;
 }
@@ -40,12 +50,18 @@ export const RoutingSettings = ({ alertManager }: RoutingSettingsProps) => {
     formState: { errors },
   } = useFormContext<RuleFormValues>();
   const [groupByOptions, setGroupByOptions] = useState(stringsToSelectableValues([]));
-  const { groupIntervalValue, groupWaitValue, repeatIntervalValue } = getDefaultsForRoutingSettings();
+  const { groupIntervalValue, groupWaitValue, repeatIntervalValue } = DEFAULTS_TIMINGS;
   const overrideGrouping = watch(`contactPoints.${alertManager}.overrideGrouping`);
   const overrideTimings = watch(`contactPoints.${alertManager}.overrideTimings`);
-  const requiredFieldsInGroupBy = ['grafana_folder', 'alertname'];
-  const disableGrouping = '...';
+  const groupByCount = watch(`contactPoints.${alertManager}.groupBy`)?.length ?? 0;
+
   const styles = useStyles2(getStyles);
+  useEffect(() => {
+    if (overrideGrouping && groupByCount === 0) {
+      setValue(`contactPoints.${alertManager}.groupBy`, REQUIRED_FIELDS_IN_GROUPBY);
+    }
+  }, [overrideGrouping, setValue, alertManager, groupByCount]);
+
   return (
     <Stack direction="column">
       <Stack direction="row" gap={1} alignItems="center" justifyContent="space-between">
@@ -54,7 +70,7 @@ export const RoutingSettings = ({ alertManager }: RoutingSettingsProps) => {
         </InlineField>
         {!overrideGrouping && (
           <Text variant="body" color="secondary">
-            Grouping: <strong>{requiredFieldsInGroupBy.join(', ')}</strong>
+            Grouping: <strong>{REQUIRED_FIELDS_IN_GROUPBY.join(', ')}</strong>
           </Text>
         )}
       </Stack>
@@ -72,14 +88,13 @@ export const RoutingSettings = ({ alertManager }: RoutingSettingsProps) => {
                 if (!value || value.length === 0) {
                   return 'At least one group by option is required.';
                 }
-                // if value includes only the allowedSingleFieldInGroupBy, it is valid
-                if (value.length === 1 && value[0] === disableGrouping) {
+                if (value.length === 1 && value[0] === DISABLE_GROUPING) {
                   return true;
                 }
                 // we need to make sure that the required fields are included
-                const requiredFieldsIncluded = requiredFieldsInGroupBy.every((field) => value.includes(field));
+                const requiredFieldsIncluded = REQUIRED_FIELDS_IN_GROUPBY.every((field) => value.includes(field));
                 if (!requiredFieldsIncluded) {
-                  return `Group by must include ${requiredFieldsInGroupBy.join(', ')}`;
+                  return `Group by must include ${REQUIRED_FIELDS_IN_GROUPBY.join(', ')}`;
                 }
                 return true;
               },
@@ -97,8 +112,30 @@ export const RoutingSettings = ({ alertManager }: RoutingSettingsProps) => {
                     // @ts-ignore-check: react-hook-form made me do this
                     setValue(`contactPoints.${alertManager}.groupBy`, [...field.value, opt]);
                   }}
-                  onChange={(value) => onChange(mapMultiSelectValueToStrings(value))}
+                  onChange={(value) => {
+                    return onChange(mapMultiSelectValueToStrings(value));
+                  }}
                   options={[...commonGroupByOptions, ...groupByOptions]}
+                  components={{
+                    MultiValueRemove(
+                      props: React.PropsWithChildren<
+                        MultiValueRemoveProps &
+                          Array<SelectableValue<string>> & {
+                            data: {
+                              label: string;
+                              value: string;
+                              isFixed: boolean;
+                            };
+                          }
+                      >
+                    ) {
+                      const { data } = props;
+                      if (data.isFixed) {
+                        return null;
+                      }
+                      return MultiValueRemove(props);
+                    },
+                  }}
                 />
                 {error && <FieldValidationMessage>{error.message}</FieldValidationMessage>}
               </>
@@ -129,13 +166,6 @@ export const RoutingSettings = ({ alertManager }: RoutingSettingsProps) => {
   );
 };
 
-function getDefaultsForRoutingSettings() {
-  return {
-    groupWaitValue: TIMING_OPTIONS_DEFAULTS.group_wait,
-    groupIntervalValue: TIMING_OPTIONS_DEFAULTS.group_interval,
-    repeatIntervalValue: TIMING_OPTIONS_DEFAULTS.repeat_interval,
-  };
-}
 const getStyles = (theme: GrafanaTheme2) => ({
   switchElement: css({
     flexFlow: 'row-reverse',
@@ -144,5 +174,6 @@ const getStyles = (theme: GrafanaTheme2) => ({
   }),
   optionalContent: css({
     marginLeft: '49px',
+    marginBottom: theme.spacing(1),
   }),
 });
diff --git a/public/app/features/alerting/unified/utils/amroutes.ts b/public/app/features/alerting/unified/utils/amroutes.ts
index f3724401587..dbfbd58ad3b 100644
--- a/public/app/features/alerting/unified/utils/amroutes.ts
+++ b/public/app/features/alerting/unified/utils/amroutes.ts
@@ -44,8 +44,8 @@ export const defaultGroupBy = ['grafana_folder', 'alertname'];
 
 // Common route group_by options for multiselect drop-down
 export const commonGroupByOptions = [
-  { label: 'grafana_folder', value: 'grafana_folder' },
-  { label: 'alertname', value: 'alertname' },
+  { label: 'grafana_folder', value: 'grafana_folder', isFixed: true },
+  { label: 'alertname', value: 'alertname', isFixed: true },
   { label: 'Disable (...)', value: '...' },
 ];