diff --git a/pkg/services/dashboardimport/api/api.go b/pkg/services/dashboardimport/api/api.go
index 9ce7a72684a..7f866fc2c15 100644
--- a/pkg/services/dashboardimport/api/api.go
+++ b/pkg/services/dashboardimport/api/api.go
@@ -14,6 +14,7 @@ import (
 	"github.com/grafana/grafana/pkg/services/dashboardimport/utils"
 	"github.com/grafana/grafana/pkg/services/dashboards"
 	"github.com/grafana/grafana/pkg/services/featuremgmt"
+	libraryelementsmodel "github.com/grafana/grafana/pkg/services/libraryelements/model"
 	"github.com/grafana/grafana/pkg/services/pluginsintegration/pluginstore"
 	"github.com/grafana/grafana/pkg/services/quota"
 	"github.com/grafana/grafana/pkg/web"
@@ -125,6 +126,9 @@ func (api *ImportDashboardAPI) ImportDashboard(c *contextmodel.ReqContext) respo
 		if errors.Is(err, utils.ErrDashboardInputMissing) {
 			return response.Error(http.StatusBadRequest, err.Error(), err)
 		}
+		if errors.Is(err, libraryelementsmodel.ErrLibraryElementInsufficientPermissions) {
+			return response.Error(http.StatusForbidden, err.Error(), err)
+		}
 		return apierrors.ToDashboardErrorResponse(c.Req.Context(), api.pluginStore, err)
 	}
 
diff --git a/pkg/services/dashboardimport/api/api_test.go b/pkg/services/dashboardimport/api/api_test.go
index 461e370352e..1618f20036e 100644
--- a/pkg/services/dashboardimport/api/api_test.go
+++ b/pkg/services/dashboardimport/api/api_test.go
@@ -4,6 +4,7 @@ import (
 	"bytes"
 	"context"
 	"encoding/json"
+	"fmt"
 	"net/http"
 	"testing"
 
@@ -16,6 +17,7 @@ import (
 	"github.com/grafana/grafana/pkg/services/dashboardimport"
 	"github.com/grafana/grafana/pkg/services/dashboards"
 	"github.com/grafana/grafana/pkg/services/featuremgmt"
+	libraryelementsmodel "github.com/grafana/grafana/pkg/services/libraryelements/model"
 	"github.com/grafana/grafana/pkg/services/quota"
 	"github.com/grafana/grafana/pkg/services/user"
 	"github.com/grafana/grafana/pkg/web/webtest"
@@ -158,6 +160,35 @@ func TestImportDashboardAPI(t *testing.T) {
 			require.Equal(t, http.StatusForbidden, resp.StatusCode)
 		})
 	})
+
+	t.Run("Import service returns a library panel permission error", func(t *testing.T) {
+		service := &serviceMock{
+			importDashboardFunc: func(ctx context.Context, req *dashboardimport.ImportDashboardRequest) (*dashboardimport.ImportDashboardResponse, error) {
+				return nil, fmt.Errorf("%w: folder UID 'abc'", libraryelementsmodel.ErrLibraryElementInsufficientPermissions)
+			},
+		}
+		importDashboardAPI := New(service, quotaServiceFunc(quotaNotReached), nil, actest.FakeAccessControl{ExpectedEvaluate: true}, featuremgmt.WithFeatures())
+		routeRegister := routing.NewRouteRegister()
+		importDashboardAPI.RegisterAPIEndpoints(routeRegister)
+		s := webtest.NewServer(t, routeRegister)
+
+		cmd := &dashboardimport.ImportDashboardRequest{
+			Dashboard: simplejson.New(),
+		}
+		jsonBytes, err := json.Marshal(cmd)
+		require.NoError(t, err)
+		req := s.NewPostRequest("/api/dashboards/import", bytes.NewReader(jsonBytes))
+		webtest.RequestWithSignedInUser(req, &user.SignedInUser{
+			UserID: 1,
+			Permissions: map[int64]map[string][]string{
+				1: {dashboards.ActionDashboardsCreate: {}},
+			},
+		})
+		resp, err := s.SendJSON(req)
+		require.NoError(t, err)
+		require.NoError(t, resp.Body.Close())
+		require.Equal(t, http.StatusForbidden, resp.StatusCode)
+	})
 }
 
 func TestInterpolateDashboardFeatureFlag(t *testing.T) {
diff --git a/pkg/services/libraryelements/api.go b/pkg/services/libraryelements/api.go
index 3cde82428d7..4663804cc5f 100644
--- a/pkg/services/libraryelements/api.go
+++ b/pkg/services/libraryelements/api.go
@@ -6,7 +6,6 @@ import (
 	"fmt"
 	"hash/fnv"
 	"net/http"
-	"strings"
 
 	k8serrors "k8s.io/apimachinery/pkg/api/errors"
 	v1 "k8s.io/apimachinery/pkg/apis/meta/v1"
@@ -421,7 +420,7 @@ func (l *LibraryElementService) toLibraryElementError(err error, message string)
 	if errors.Is(err, model.ErrLibraryElementProvisionedFolder) {
 		return response.Error(http.StatusConflict, model.ErrLibraryElementProvisionedFolder.Error(), err)
 	}
-	if err != nil && strings.Contains(err.Error(), "insufficient permissions") {
+	if errors.Is(err, model.ErrLibraryElementInsufficientPermissions) {
 		return response.Error(http.StatusForbidden, err.Error(), err)
 	}
 
diff --git a/pkg/services/libraryelements/database.go b/pkg/services/libraryelements/database.go
index b602c7ea873..9eea2d0a241 100644
--- a/pkg/services/libraryelements/database.go
+++ b/pkg/services/libraryelements/database.go
@@ -181,12 +181,12 @@ func (l *LibraryElementService) CreateElement(c context.Context, signedInUser id
 
 	err = l.SQLStore.WithTransactionalDbSession(c, func(session *db.Session) error {
 		allowed, err := l.AccessControl.Evaluate(c, signedInUser, ac.EvalPermission(ActionLibraryPanelsCreate, folder.ScopeFoldersProvider.GetResourceScopeUID(folderUID)))
-		if !allowed {
-			return fmt.Errorf("insufficient permissions for creating library panel in folder with UID: '%s'", folderUID)
-		}
 		if err != nil {
 			return err
 		}
+		if !allowed {
+			return fmt.Errorf("%w: folder UID '%s'", model.ErrLibraryElementInsufficientPermissions, folderUID)
+		}
 		if _, err := session.Insert(&element); err != nil {
 			if l.SQLStore.GetDialect().IsUniqueConstraintViolation(err) {
 				return model.ErrLibraryElementAlreadyExists
diff --git a/pkg/services/libraryelements/model/model.go b/pkg/services/libraryelements/model/model.go
index 7480997c4a1..4210b468e4c 100644
--- a/pkg/services/libraryelements/model/model.go
+++ b/pkg/services/libraryelements/model/model.go
@@ -134,6 +134,8 @@ var (
 	ErrLibraryElementUIDTooLong = errors.New("uid too long, max 40 characters")
 	// ErrLibraryElementProvisionedFolder indicates that a library element cannot be created on a provisioned folder.
 	ErrLibraryElementProvisionedFolder = errors.New("resource type not supported in repository-managed folders")
+	// ErrLibraryElementInsufficientPermissions is returned when the caller lacks permission to perform a library element operation in a folder.
+	ErrLibraryElementInsufficientPermissions = errors.New("insufficient permissions for library element operation")
 )
 
 // Commands