diff --git a/public/app/features/dashboard-scene/scene/DashboardGridItem.test.tsx b/public/app/features/dashboard-scene/scene/DashboardGridItem.test.tsx
index 6a710357cdf..fc045edfa16 100644
--- a/public/app/features/dashboard-scene/scene/DashboardGridItem.test.tsx
+++ b/public/app/features/dashboard-scene/scene/DashboardGridItem.test.tsx
@@ -1,7 +1,6 @@
 import { getPanelPlugin } from '@grafana/data/test/__mocks__/pluginMocks';
 import { setPluginImportUtils } from '@grafana/runtime';
-import { SceneGridLayout, TestVariable, VizPanel } from '@grafana/scenes';
-import { ALL_VARIABLE_TEXT, ALL_VARIABLE_VALUE } from 'app/features/variables/constants';
+import { SceneGridLayout, VizPanel } from '@grafana/scenes';
 
 import { activateFullSceneTree, buildPanelRepeaterScene } from '../utils/test-utils';
 
@@ -41,7 +40,7 @@ describe('PanelRepeaterGridItem', () => {
     expect(repeater.state.repeatedPanels?.length).toBe(5);
   });
 
-  it('Should adjust container height to fit panels if direction is horizontal', async () => {
+  it('Should adjust container height to fit panels direction is horizontal', async () => {
     const { scene, repeater } = buildPanelRepeaterScene({ variableQueryTime: 0, maxPerRow: 2, itemHeight: 10 });
 
     const layoutForceRender = jest.fn();
@@ -145,56 +144,4 @@ describe('PanelRepeaterGridItem', () => {
 
     expect(gridItem.getClassName()).toBe('');
   });
-
-  it('should have correct height after repeat is performed', () => {
-    const { scene, repeater } = buildPanelRepeaterScene({
-      variableQueryTime: 0,
-      height: 4,
-      maxPerRow: 4,
-      repeatDirection: 'h',
-      numberOfOptions: 5,
-    });
-
-    activateFullSceneTree(scene);
-
-    expect(repeater.state.height).toBe(4);
-  });
-
-  it('should have same item height if number of repititions changes', async () => {
-    const { scene, repeater } = buildPanelRepeaterScene({
-      variableQueryTime: 0,
-      height: 4,
-      maxPerRow: 4,
-      repeatDirection: 'h',
-      numberOfOptions: 5,
-    });
-    activateFullSceneTree(scene);
-
-    scene.state.$variables!.setState({
-      variables: [
-        new TestVariable({
-          name: 'server',
-          query: 'A.*',
-          value: ALL_VARIABLE_VALUE,
-          text: ALL_VARIABLE_TEXT,
-          isMulti: true,
-          includeAll: true,
-          delayMs: 0,
-          optionsToReturn: [
-            { label: 'A', value: '1' },
-            { label: 'B', value: '2' },
-            { label: 'C', value: '3' },
-            { label: 'D', value: '4' },
-            { label: 'E', value: '5' },
-            { label: 'F', value: '6' },
-            { label: 'G', value: '7' },
-            { label: 'H', value: '8' },
-            { label: 'I', value: '9' },
-            { label: 'J', value: '10' },
-          ],
-        }),
-      ],
-    });
-    expect(repeater.state.height).toBe(6);
-  });
 });
diff --git a/public/app/features/dashboard-scene/scene/DashboardGridItem.tsx b/public/app/features/dashboard-scene/scene/DashboardGridItem.tsx
index 1c7e76adf45..0a48d944190 100644
--- a/public/app/features/dashboard-scene/scene/DashboardGridItem.tsx
+++ b/public/app/features/dashboard-scene/scene/DashboardGridItem.tsx
@@ -163,8 +163,6 @@ export class DashboardGridItem extends SceneObjectBase<DashboardGridItemState> i
       return;
     }
 
-    // Needed to calculate item height
-    const prevRepeatCount = this._prevRepeatValues?.length ?? values.length;
     this._prevRepeatValues = values;
     const panelToRepeat = this.state.body instanceof LibraryVizPanel ? this.state.body.state.panel! : this.state.body;
     const repeatedPanels: VizPanel[] = [];
@@ -190,15 +188,16 @@ export class DashboardGridItem extends SceneObjectBase<DashboardGridItemState> i
 
     const direction = this.getRepeatDirection();
     const stateChange: Partial<DashboardGridItemState> = { repeatedPanels: repeatedPanels };
-    const prevHeight = this.state.height ?? 0;
-    const maxPerRow = direction === 'h' ? this.getMaxPerRow() : 1;
-    const prevRowCount = Math.ceil(prevRepeatCount / maxPerRow);
-    const newRowCount = Math.ceil(repeatedPanels.length / maxPerRow);
+    const itemHeight = this.state.itemHeight ?? 10;
+    const prevHeight = this.state.height;
+    const maxPerRow = this.getMaxPerRow();
 
-    // If item height is not defined, calculate based on total height and row count
-    const itemHeight = this.state.itemHeight ?? prevHeight / prevRowCount;
-    stateChange.itemHeight = itemHeight;
-    stateChange.height = Math.ceil(newRowCount * itemHeight);
+    if (direction === 'h') {
+      const rowCount = Math.ceil(repeatedPanels.length / maxPerRow);
+      stateChange.height = rowCount * itemHeight;
+    } else {
+      stateChange.height = repeatedPanels.length * itemHeight;
+    }
 
     this.setState(stateChange);
 
diff --git a/public/app/features/dashboard-scene/serialization/transformSaveModelToScene.ts b/public/app/features/dashboard-scene/serialization/transformSaveModelToScene.ts
index 7f312c60208..1e11bc51bde 100644
--- a/public/app/features/dashboard-scene/serialization/transformSaveModelToScene.ts
+++ b/public/app/features/dashboard-scene/serialization/transformSaveModelToScene.ts
@@ -438,6 +438,7 @@ export function buildGridItemForLibPanel(panel: PanelModel) {
     x: panel.gridPos.x,
     width: panel.gridPos.w,
     height: panel.gridPos.h,
+    itemHeight: panel.gridPos.h,
     body,
   });
 }
@@ -502,6 +503,7 @@ export function buildGridItemForPanel(panel: PanelModel): DashboardGridItem {
     y: panel.gridPos.y,
     width: repeatOptions.repeatDirection === 'h' ? 24 : panel.gridPos.w,
     height: panel.gridPos.h,
+    itemHeight: panel.gridPos.h,
     body,
     maxPerRow: panel.maxPerRow,
     ...repeatOptions,
diff --git a/public/app/features/dashboard-scene/utils/test-utils.ts b/public/app/features/dashboard-scene/utils/test-utils.ts
index b8f284622d0..235dae85035 100644
--- a/public/app/features/dashboard-scene/utils/test-utils.ts
+++ b/public/app/features/dashboard-scene/utils/test-utils.ts
@@ -96,7 +96,6 @@ interface SceneOptions {
   variableQueryTime: number;
   maxPerRow?: number;
   itemHeight?: number;
-  height?: number;
   repeatDirection?: RepeatDirection;
   x?: number;
   y?: number;
@@ -114,7 +113,6 @@ export function buildPanelRepeaterScene(options: SceneOptions, source?: VizPanel
     repeatDirection: options.repeatDirection,
     maxPerRow: options.maxPerRow,
     itemHeight: options.itemHeight,
-    height: options.height,
     body:
       source ??
       new VizPanel({