diff --git a/public/app/features/dashboard-scene/scene/DashboardDatasourceBehaviour.test.tsx b/public/app/features/dashboard-scene/scene/DashboardDatasourceBehaviour.test.tsx
index 453b3e7983ff..86814f13b4be 100644
--- a/public/app/features/dashboard-scene/scene/DashboardDatasourceBehaviour.test.tsx
+++ b/public/app/features/dashboard-scene/scene/DashboardDatasourceBehaviour.test.tsx
@@ -21,6 +21,7 @@ import { activateFullSceneTree } from '../utils/test-utils';
 import { DashboardDatasourceBehaviour } from './DashboardDatasourceBehaviour';
 import { DashboardGridItem } from './DashboardGridItem';
 import { DashboardScene } from './DashboardScene';
+import { LibraryVizPanel } from './LibraryVizPanel';
 
 const grafanaDs = {
   id: 1,
@@ -487,6 +488,87 @@ describe('DashboardDatasourceBehaviour', () => {
       }
     });
   });
+
+  describe('Library panels', () => {
+    it('should wait for library panel to be loaded', async () => {
+      const sourcePanel = new LibraryVizPanel({
+        name: 'My Library Panel',
+        title: 'Panel title',
+        uid: 'fdcvggvfy2qdca',
+        panelKey: 'lib-panel',
+        panel: new VizPanel({
+          key: 'panel-1',
+          title: 'Panel A',
+          pluginId: 'table',
+        }),
+      });
+
+      // query references inexistent panel
+      const dashboardDSPanel = new VizPanel({
+        title: 'Panel B',
+        pluginId: 'table',
+        key: 'panel-2',
+        $data: new SceneQueryRunner({
+          datasource: { uid: SHARED_DASHBOARD_QUERY },
+          queries: [{ refId: 'A', panelId: 1 }],
+          $behaviors: [new DashboardDatasourceBehaviour({})],
+        }),
+      });
+
+      const scene = new DashboardScene({
+        title: 'hello',
+        uid: 'dash-1',
+        meta: {
+          canEdit: true,
+        },
+        body: new SceneGridLayout({
+          children: [
+            new DashboardGridItem({
+              key: 'griditem-1',
+              x: 0,
+              y: 0,
+              width: 10,
+              height: 12,
+              body: sourcePanel,
+            }),
+            new DashboardGridItem({
+              key: 'griditem-2',
+              x: 0,
+              y: 0,
+              width: 10,
+              height: 12,
+              body: dashboardDSPanel,
+            }),
+          ],
+        }),
+      });
+
+      activateFullSceneTree(scene);
+
+      // spy on runQueries
+      const spy = jest.spyOn(dashboardDSPanel.state.$data as SceneQueryRunner, 'runQueries');
+
+      await new Promise((r) => setTimeout(r, 1));
+
+      expect(spy).not.toHaveBeenCalled();
+
+      // Simulate library panel being loaded
+      sourcePanel.setState({
+        isLoaded: true,
+        panel: new VizPanel({
+          title: 'Panel A',
+          pluginId: 'table',
+          key: 'panel-1',
+          $data: new SceneQueryRunner({
+            datasource: { uid: 'grafana' },
+            queries: [{ refId: 'A', queryType: 'randomWalk' }],
+          }),
+        }),
+      });
+
+      expect(spy).toHaveBeenCalledTimes(1);
+    });
+  });
 });
 
 async function buildTestScene() {
diff --git a/public/app/features/dashboard-scene/scene/DashboardDatasourceBehaviour.tsx b/public/app/features/dashboard-scene/scene/DashboardDatasourceBehaviour.tsx
index d39903a6ca0c..26fb6f0c8bcb 100644
--- a/public/app/features/dashboard-scene/scene/DashboardDatasourceBehaviour.tsx
+++ b/public/app/features/dashboard-scene/scene/DashboardDatasourceBehaviour.tsx
@@ -1,9 +1,12 @@
+import { Unsubscribable } from 'rxjs';
+
 import { SceneObjectBase, SceneObjectState, SceneQueryRunner, VizPanel } from '@grafana/scenes';
 import { SHARED_DASHBOARD_QUERY } from 'app/plugins/datasource/dashboard';
 
 import { findVizPanelByKey, getDashboardSceneFor, getQueryRunnerFor, getVizPanelKeyForPanelId } from '../utils/utils';
 
 import { DashboardScene } from './DashboardScene';
+import { LibraryVizPanel, LibraryVizPanelState } from './LibraryVizPanel';
 
 interface DashboardDatasourceBehaviourState extends SceneObjectState {}
 
@@ -18,6 +21,7 @@ export class DashboardDatasourceBehaviour extends SceneObjectBase<DashboardDatas
   private _activationHandler() {
     const queryRunner = this.parent;
     let dashboard: DashboardScene;
+    let libraryPanelSub: Unsubscribable;
 
     if (!(queryRunner instanceof SceneQueryRunner)) {
       throw new Error('DashboardDatasourceBehaviour must be attached to a SceneQueryRunner');
@@ -50,15 +54,38 @@ export class DashboardDatasourceBehaviour extends SceneObjectBase<DashboardDatas
     const sourcePanelQueryRunner = getQueryRunnerFor(panel);
 
     if (!(sourcePanelQueryRunner instanceof SceneQueryRunner)) {
-      throw new Error('Could not find SceneQueryRunner for panel');
-    }
-
-    if (this.prevRequestId && this.prevRequestId !== sourcePanelQueryRunner.state.data?.request?.requestId) {
-      queryRunner.runQueries();
+      if (!(panel.parent instanceof LibraryVizPanel)) {
+        throw new Error('Could not find SceneQueryRunner for panel');
+      } else {
+        // Library panels load and create internal viz panel asynchroniously. Here we are subscribing to
+        // library panel state, and run dashboard queries when the source panel query runner is ready.
+        libraryPanelSub = panel.parent.subscribeToState((n, p) => {
+          this.handleLibPanelStateUpdates(n, p, queryRunner);
+        });
+      }
+    } else {
+      if (this.prevRequestId && this.prevRequestId !== sourcePanelQueryRunner.state.data?.request?.requestId) {
+        queryRunner.runQueries();
+      }
     }
 
     return () => {
-      this.prevRequestId = sourcePanelQueryRunner.state.data?.request?.requestId;
+      this.prevRequestId = sourcePanelQueryRunner?.state.data?.request?.requestId;
+      if (libraryPanelSub) {
+        libraryPanelSub.unsubscribe();
+      }
     };
   }
+
+  private handleLibPanelStateUpdates(n: LibraryVizPanelState, p: LibraryVizPanelState, queryRunner: SceneQueryRunner) {
+    if (n.panel && n.panel !== p.panel) {
+      const libPanelQueryRunner = getQueryRunnerFor(n.panel);
+
+      if (!(libPanelQueryRunner instanceof SceneQueryRunner)) {
+        throw new Error('Could not find SceneQueryRunner for panel');
+      }
+
+      queryRunner.runQueries();
+    }
+  }
 }
diff --git a/public/app/features/dashboard-scene/scene/LibraryVizPanel.tsx b/public/app/features/dashboard-scene/scene/LibraryVizPanel.tsx
index 53b9c2ddc429..b7a1a4d87219 100644
--- a/public/app/features/dashboard-scene/scene/LibraryVizPanel.tsx
+++ b/public/app/features/dashboard-scene/scene/LibraryVizPanel.tsx
@@ -20,7 +20,7 @@ import { VizPanelLinks, VizPanelLinksMenu } from './PanelLinks';
 import { panelLinksBehavior, panelMenuBehavior } from './PanelMenuBehavior';
 import { PanelNotices } from './PanelNotices';
 
-interface LibraryVizPanelState extends SceneObjectState {
+export interface LibraryVizPanelState extends SceneObjectState {
   // Library panels use title from dashboard JSON's panel model, not from library panel definition, hence we pass it.
   title: string;
   uid: string;