diff --git a/frontend/src/container/GridCardLayout/DashboardEmptyState/DashboardEmptyState.tsx b/frontend/src/container/GridCardLayout/DashboardEmptyState/DashboardEmptyState.tsx
index 099d74411b..29e2defe2a 100644
--- a/frontend/src/container/GridCardLayout/DashboardEmptyState/DashboardEmptyState.tsx
+++ b/frontend/src/container/GridCardLayout/DashboardEmptyState/DashboardEmptyState.tsx
@@ -17,6 +17,7 @@ export default function DashboardEmptyState(): JSX.Element {
 		selectedDashboard,
 		isDashboardLocked,
 		handleToggleDashboardSlider,
+		setSelectedRowWidgetId,
 	} = useDashboard();
 
 	const { user } = useAppContext();
@@ -34,6 +35,7 @@ export default function DashboardEmptyState(): JSX.Element {
 	const [addPanelPermission] = useComponentPermission(permissions, userRole);
 
 	const onEmptyWidgetHandler = useCallback(() => {
+		setSelectedRowWidgetId(null);
 		handleToggleDashboardSlider(true);
 		logEvent('Dashboard Detail: Add new panel clicked', {
 			dashboardId: selectedDashboard?.uuid,
diff --git a/frontend/src/container/GridCardLayout/GridCardLayout.styles.scss b/frontend/src/container/GridCardLayout/GridCardLayout.styles.scss
index 567bd10470..c450801537 100644
--- a/frontend/src/container/GridCardLayout/GridCardLayout.styles.scss
+++ b/frontend/src/container/GridCardLayout/GridCardLayout.styles.scss
@@ -133,7 +133,8 @@
 
 		.menu-content {
 			.section-1 {
-				.rename-btn {
+				.rename-btn,
+				.new-panel-btn {
 					display: flex;
 					align-items: center;
 					gap: 6px;
@@ -150,6 +151,10 @@
 						margin-inline-end: 0px;
 					}
 				}
+
+				.rename-btn {
+					padding-bottom: 10px;
+				}
 			}
 
 			.section-2 {
diff --git a/frontend/src/container/GridCardLayout/GridCardLayout.tsx b/frontend/src/container/GridCardLayout/GridCardLayout.tsx
index c61fbcc7bc..6fda3fbc5e 100644
--- a/frontend/src/container/GridCardLayout/GridCardLayout.tsx
+++ b/frontend/src/container/GridCardLayout/GridCardLayout.tsx
@@ -65,6 +65,7 @@ function GraphLayout(props: GraphLayoutProps): JSX.Element {
 		isDashboardLocked,
 		dashboardQueryRangeCalled,
 		setDashboardQueryRangeCalled,
+		setSelectedRowWidgetId,
 	} = useDashboard();
 	const { data } = selectedDashboard || {};
 	const { pathname } = useLocation();
@@ -174,6 +175,7 @@ function GraphLayout(props: GraphLayoutProps): JSX.Element {
 
 		updateDashboardMutation.mutate(updatedDashboard, {
 			onSuccess: (updatedDashboard) => {
+				setSelectedRowWidgetId(null);
 				if (updatedDashboard.payload) {
 					if (updatedDashboard.payload.data.layout)
 						setLayouts(sortLayout(updatedDashboard.payload.data.layout));
diff --git a/frontend/src/container/GridCardLayout/WidgetRow.tsx b/frontend/src/container/GridCardLayout/WidgetRow.tsx
index 70e5b64670..d46bff3b5d 100644
--- a/frontend/src/container/GridCardLayout/WidgetRow.tsx
+++ b/frontend/src/container/GridCardLayout/WidgetRow.tsx
@@ -1,7 +1,12 @@
 import { Button, Popover } from 'antd';
-import { EllipsisIcon, PenLine, X } from 'lucide-react';
+import useComponentPermission from 'hooks/useComponentPermission';
+import { EllipsisIcon, PenLine, Plus, X } from 'lucide-react';
+import { useAppContext } from 'providers/App/App';
+import { useDashboard } from 'providers/Dashboard/Dashboard';
 import { useState } from 'react';
 import { Layout } from 'react-grid-layout';
+import { ROLES, USER_ROLES } from 'types/roles';
+import { ComponentTypes } from 'utils/permission';
 
 interface WidgetRowHeaderProps {
 	rowWidgetProperties: {
@@ -27,6 +32,23 @@ export function WidgetRowHeader(props: WidgetRowHeaderProps): JSX.Element {
 		id,
 	} = props;
 	const [isRowSettingsOpen, setIsRowSettingsOpen] = useState<boolean>(false);
+
+	const {
+		handleToggleDashboardSlider,
+		selectedDashboard,
+		isDashboardLocked,
+		setSelectedRowWidgetId,
+	} = useDashboard();
+
+	const permissions: ComponentTypes[] = ['add_panel'];
+	const { user } = useAppContext();
+
+	const userRole: ROLES | null =
+		selectedDashboard?.created_by === user?.email
+			? (USER_ROLES.AUTHOR as ROLES)
+			: user.role;
+	const [addPanelPermission] = useComponentPermission(permissions, userRole);
+
 	return (
 		<Popover
 			open={isRowSettingsOpen}
@@ -52,6 +74,20 @@ export function WidgetRowHeader(props: WidgetRowHeaderProps): JSX.Element {
 							Rename
 						</Button>
 					</section>
+					<section className="section-1">
+						<Button
+							className="new-panel-btn"
+							type="text"
+							disabled={!editWidget && addPanelPermission && !isDashboardLocked}
+							icon={<Plus size={14} />}
+							onClick={(): void => {
+								setSelectedRowWidgetId(id);
+								handleToggleDashboardSlider(true);
+							}}
+						>
+							New Panel
+						</Button>
+					</section>
 					{!rowWidgetProperties.collapsed && (
 						<section className="section-2">
 							<Button
diff --git a/frontend/src/container/NewDashboard/DashboardDescription/index.tsx b/frontend/src/container/NewDashboard/DashboardDescription/index.tsx
index 5a98dcb0fc..8725e7f43e 100644
--- a/frontend/src/container/NewDashboard/DashboardDescription/index.tsx
+++ b/frontend/src/container/NewDashboard/DashboardDescription/index.tsx
@@ -100,6 +100,7 @@ function DashboardDescription(props: DashboardDescriptionProps): JSX.Element {
 		listSortOrder,
 		setSelectedDashboard,
 		handleToggleDashboardSlider,
+		setSelectedRowWidgetId,
 		handleDashboardLockToggle,
 	} = useDashboard();
 
@@ -157,6 +158,7 @@ function DashboardDescription(props: DashboardDescriptionProps): JSX.Element {
 	const [addPanelPermission] = useComponentPermission(permissions, userRole);
 
 	const onEmptyWidgetHandler = useCallback(() => {
+		setSelectedRowWidgetId(null);
 		handleToggleDashboardSlider(true);
 		logEvent('Dashboard Detail: Add new panel clicked', {
 			dashboardId: selectedDashboard?.uuid,
diff --git a/frontend/src/container/NewWidget/__test__/NewWidget.test.tsx b/frontend/src/container/NewWidget/__test__/NewWidget.test.tsx
index bab32530d9..68b58f3e01 100644
--- a/frontend/src/container/NewWidget/__test__/NewWidget.test.tsx
+++ b/frontend/src/container/NewWidget/__test__/NewWidget.test.tsx
@@ -6,7 +6,7 @@
 // - Handling multiple rows correctly
 // - Handling widgets with different heights
 
-import { placeWidgetAtBottom } from '../utils';
+import { placeWidgetAtBottom, placeWidgetBetweenRows } from '../utils';
 
 describe('placeWidgetAtBottom', () => {
 	it('should place widget at (0,0) when layout is empty', () => {
@@ -90,3 +90,129 @@ describe('placeWidgetAtBottom', () => {
 		});
 	});
 });
+
+describe('placeWidgetBetweenRows', () => {
+	it('should return single widget layout when layout is empty', () => {
+		const result = placeWidgetBetweenRows('widget1', [], 'currentRow');
+		expect(result).toEqual([
+			{
+				i: 'widget1',
+				x: 0,
+				y: 0,
+				w: 6,
+				h: 6,
+			},
+		]);
+	});
+
+	it('should place widget at the end of the layout when no nextRowId is provided', () => {
+		const existingLayout = [
+			{ i: 'widget1', x: 0, y: 0, w: 6, h: 6 },
+			{ i: 'widget2', x: 6, y: 0, w: 6, h: 6 },
+		];
+
+		const result = placeWidgetBetweenRows('widget3', existingLayout, 'widget2');
+
+		expect(result).toEqual([
+			{ i: 'widget1', x: 0, y: 0, w: 6, h: 6 },
+			{ i: 'widget2', x: 6, y: 0, w: 6, h: 6 },
+			{ i: 'widget3', x: 0, y: 6, w: 6, h: 6 },
+		]);
+	});
+
+	it('should place widget between current and next row', () => {
+		const existingLayout = [
+			{
+				h: 1,
+				i: "'widget1'",
+				maxH: 1,
+				minH: 1,
+				minW: 12,
+				moved: false,
+				static: false,
+				w: 12,
+				x: 0,
+				y: 0,
+			},
+			{ i: 'widget2', x: 6, y: 0, w: 6, h: 6 },
+			{
+				h: 1,
+				i: 'widget3',
+				maxH: 1,
+				minH: 1,
+				minW: 12,
+				moved: false,
+				static: false,
+				w: 12,
+				x: 0,
+				y: 7,
+			},
+		];
+
+		const result = placeWidgetBetweenRows(
+			'widget4',
+			existingLayout,
+			'widget1',
+			'widget3',
+		);
+
+		expect(result).toEqual([
+			{
+				h: 1,
+				i: "'widget1'",
+				maxH: 1,
+				minH: 1,
+				minW: 12,
+				moved: false,
+				static: false,
+				w: 12,
+				x: 0,
+				y: 0,
+			},
+			{
+				h: 6,
+				i: 'widget2',
+				w: 6,
+				x: 6,
+				y: 0,
+			},
+			{
+				h: 6,
+				i: 'widget4',
+				w: 6,
+				x: 0,
+				y: 6,
+			},
+			{
+				h: 1,
+				i: 'widget3',
+				maxH: 1,
+				minH: 1,
+				minW: 12,
+				moved: false,
+				static: false,
+				w: 12,
+				x: 0,
+				y: 7,
+			},
+		]);
+	});
+
+	it('should respect custom widget dimensions', () => {
+		const existingLayout = [{ i: 'widget1', x: 0, y: 0, w: 12, h: 4 }];
+
+		const result = placeWidgetBetweenRows(
+			'widget2',
+			existingLayout,
+			'widget1',
+			null,
+			8,
+			3,
+		);
+
+		expect(result).toEqual([
+			{ i: 'widget1', x: 0, y: 0, w: 12, h: 4 },
+			{ i: 'widget2', x: 0, y: 4, w: 8, h: 3 },
+		]);
+	});
+});
diff --git a/frontend/src/container/NewWidget/index.tsx b/frontend/src/container/NewWidget/index.tsx
index e45c73b18b..c553f8b158 100644
--- a/frontend/src/container/NewWidget/index.tsx
+++ b/frontend/src/container/NewWidget/index.tsx
@@ -7,7 +7,11 @@ import logEvent from 'api/common/logEvent';
 import OverlayScrollbar from 'components/OverlayScrollbar/OverlayScrollbar';
 import { FeatureKeys } from 'constants/features';
 import { QueryParams } from 'constants/query';
-import { initialQueriesMap, PANEL_TYPES } from 'constants/queryBuilder';
+import {
+	initialQueriesMap,
+	PANEL_GROUP_TYPES,
+	PANEL_TYPES,
+} from 'constants/queryBuilder';
 import ROUTES from 'constants/routes';
 import { DashboardShortcuts } from 'constants/shortcuts/DashboardShortcuts';
 import { DEFAULT_BUCKET_COUNT } from 'container/PanelWrapper/constants';
@@ -20,7 +24,7 @@ import useUrlQuery from 'hooks/useUrlQuery';
 import { getDashboardVariables } from 'lib/dashbaordVariables/getDashboardVariables';
 import { GetQueryResultsProps } from 'lib/dashboard/getQueryResults';
 import history from 'lib/history';
-import { defaultTo, isUndefined } from 'lodash-es';
+import { defaultTo, isEmpty, isUndefined } from 'lodash-es';
 import { Check, X } from 'lucide-react';
 import { DashboardWidgetPageParams } from 'pages/DashboardWidget';
 import { useAppContext } from 'providers/App/App';
@@ -59,6 +63,7 @@ import {
 	getIsQueryModified,
 	handleQueryChange,
 	placeWidgetAtBottom,
+	placeWidgetBetweenRows,
 } from './utils';
 
 function NewWidget({ selectedGraph }: NewWidgetProps): JSX.Element {
@@ -66,6 +71,8 @@ function NewWidget({ selectedGraph }: NewWidgetProps): JSX.Element {
 		selectedDashboard,
 		setSelectedDashboard,
 		setToScrollWidgetId,
+		selectedRowWidgetId,
+		setSelectedRowWidgetId,
 	} = useDashboard();
 
 	const { t } = useTranslation(['dashboard']);
@@ -367,11 +374,33 @@ function NewWidget({ selectedGraph }: NewWidgetProps): JSX.Element {
 		const widgetId = query.get('widgetId') || '';
 		let updatedLayout = selectedDashboard.data.layout || [];
 
-		if (isNewDashboard) {
+		if (isNewDashboard && isEmpty(selectedRowWidgetId)) {
 			const newLayoutItem = placeWidgetAtBottom(widgetId, updatedLayout);
 			updatedLayout = [...updatedLayout, newLayoutItem];
 		}
 
+		if (isNewDashboard && selectedRowWidgetId) {
+			// Find the next row by looking through remaining layout items
+			const currentIndex = updatedLayout.findIndex(
+				(e) => e.i === selectedRowWidgetId,
+			);
+			const nextRowIndex = updatedLayout.findIndex(
+				(item, index) =>
+					index > currentIndex &&
+					widgets?.find((w) => w.id === item.i)?.panelTypes ===
+						PANEL_GROUP_TYPES.ROW,
+			);
+			const nextRowId = nextRowIndex !== -1 ? updatedLayout[nextRowIndex].i : null;
+
+			const newLayoutItem = placeWidgetBetweenRows(
+				widgetId,
+				updatedLayout,
+				selectedRowWidgetId,
+				nextRowId,
+			);
+			updatedLayout = newLayoutItem;
+		}
+
 		const dashboard: Dashboard = {
 			...selectedDashboard,
 			uuid: selectedDashboard.uuid,
@@ -437,6 +466,7 @@ function NewWidget({ selectedGraph }: NewWidgetProps): JSX.Element {
 
 		updateDashboardMutation.mutateAsync(dashboard, {
 			onSuccess: () => {
+				setSelectedRowWidgetId(null);
 				setSelectedDashboard(dashboard);
 				setToScrollWidgetId(selectedWidget?.id || '');
 				history.push({
@@ -449,16 +479,19 @@ function NewWidget({ selectedGraph }: NewWidgetProps): JSX.Element {
 		selectedDashboard,
 		query,
 		isNewDashboard,
-		preWidgets,
+		selectedRowWidgetId,
+		afterWidgets,
 		selectedWidget,
 		selectedTime.enum,
 		graphType,
 		currentQuery,
-		afterWidgets,
+		preWidgets,
 		updateDashboardMutation,
 		handleError,
+		widgets,
 		setSelectedDashboard,
 		setToScrollWidgetId,
+		setSelectedRowWidgetId,
 		dashboardId,
 	]);
 
diff --git a/frontend/src/container/NewWidget/utils.ts b/frontend/src/container/NewWidget/utils.ts
index 8527b90ac5..81645d7e08 100644
--- a/frontend/src/container/NewWidget/utils.ts
+++ b/frontend/src/container/NewWidget/utils.ts
@@ -631,3 +631,43 @@ export const placeWidgetAtBottom = (
 		h: widgetHeight || 6,
 	};
 };
+
+export const placeWidgetBetweenRows = (
+	widgetId: string,
+	layout: Layout[],
+	_currentRowId: string,
+	nextRowId?: string | null,
+	widgetWidth?: number,
+	widgetHeight?: number,
+): Layout[] => {
+	if (layout.length === 0) {
+		return [
+			{
+				i: widgetId,
+				x: 0,
+				y: 0,
+				w: widgetWidth || 6,
+				h: widgetHeight || 6,
+			},
+		];
+	}
+
+	const nextRowIndex = nextRowId
+		? layout.findIndex((item) => item.i === nextRowId)
+		: -1;
+
+	// slice the layout from current row to next row
+	const sectionWidgets =
+		nextRowIndex === -1 ? layout : layout.slice(0, nextRowIndex);
+
+	const newWidgetLayout = placeWidgetAtBottom(
+		widgetId,
+		sectionWidgets,
+		widgetWidth,
+		widgetHeight,
+	);
+	const remainingWidgets = nextRowIndex === -1 ? [] : layout.slice(nextRowIndex);
+
+	// add new layout in between the sectionWidgets and the rest of the layout
+	return [...sectionWidgets, newWidgetLayout, ...remainingWidgets];
+};
diff --git a/frontend/src/providers/Dashboard/Dashboard.tsx b/frontend/src/providers/Dashboard/Dashboard.tsx
index ee3d196e01..76cadda908 100644
--- a/frontend/src/providers/Dashboard/Dashboard.tsx
+++ b/frontend/src/providers/Dashboard/Dashboard.tsx
@@ -71,6 +71,8 @@ const DashboardContext = createContext<IDashboardContext>({
 	setVariablesToGetUpdated: () => {},
 	dashboardQueryRangeCalled: false,
 	setDashboardQueryRangeCalled: () => {},
+	selectedRowWidgetId: '',
+	setSelectedRowWidgetId: () => {},
 });
 
 interface Props {
@@ -87,6 +89,10 @@ export function DashboardProvider({
 
 	const [isDashboardLocked, setIsDashboardLocked] = useState<boolean>(false);
 
+	const [selectedRowWidgetId, setSelectedRowWidgetId] = useState<string | null>(
+		null,
+	);
+
 	const [
 		dashboardQueryRangeCalled,
 		setDashboardQueryRangeCalled,
@@ -416,6 +422,8 @@ export function DashboardProvider({
 			setVariablesToGetUpdated,
 			dashboardQueryRangeCalled,
 			setDashboardQueryRangeCalled,
+			selectedRowWidgetId,
+			setSelectedRowWidgetId,
 		}),
 		// eslint-disable-next-line react-hooks/exhaustive-deps
 		[
@@ -435,6 +443,8 @@ export function DashboardProvider({
 			setVariablesToGetUpdated,
 			dashboardQueryRangeCalled,
 			setDashboardQueryRangeCalled,
+			selectedRowWidgetId,
+			setSelectedRowWidgetId,
 		],
 	);
 
diff --git a/frontend/src/providers/Dashboard/types.ts b/frontend/src/providers/Dashboard/types.ts
index 8ca214cfaf..17d55e767c 100644
--- a/frontend/src/providers/Dashboard/types.ts
+++ b/frontend/src/providers/Dashboard/types.ts
@@ -45,4 +45,6 @@ export interface IDashboardContext {
 	setVariablesToGetUpdated: React.Dispatch<React.SetStateAction<string[]>>;
 	dashboardQueryRangeCalled: boolean;
 	setDashboardQueryRangeCalled: (value: boolean) => void;
+	selectedRowWidgetId: string | null;
+	setSelectedRowWidgetId: React.Dispatch<React.SetStateAction<string | null>>;
 }