diff --git a/packages/scenes/src/components/VizPanel/VizPanel.test.tsx b/packages/scenes/src/components/VizPanel/VizPanel.test.tsx
index ae42a05d2..a19ec45cb 100644
--- a/packages/scenes/src/components/VizPanel/VizPanel.test.tsx
+++ b/packages/scenes/src/components/VizPanel/VizPanel.test.tsx
@@ -642,6 +642,86 @@ describe('VizPanel', () => {
     });
   });
 
+  describe('Migration with shouldMigrate functionality', () => {
+    let onPanelMigration: jest.Mock;
+    let shouldMigrate: jest.Mock;
+    let panel: VizPanel<OptionsPlugin1, FieldConfigPlugin1>;
+
+    beforeEach(() => {
+      onPanelMigration = jest.fn().mockReturnValue({ option2: 'migration option' });
+      shouldMigrate = jest.fn();
+    });
+
+    it('should call migration when shouldMigrate returns true even with same plugin version', async () => {
+      panel = new VizPanel<OptionsPlugin1, FieldConfigPlugin1>({
+        pluginId: 'custom-plugin-id',
+        pluginVersion: '1.0.0',
+      });
+
+      pluginToLoad = getTestPlugin1();
+      pluginToLoad.onPanelMigration = onPanelMigration;
+      // @ts-expect-error
+      pluginToLoad.shouldMigrate = shouldMigrate.mockReturnValue(true);
+
+      await panel.activate();
+
+      expect(onPanelMigration).toHaveBeenCalled();
+      expect(shouldMigrate).toHaveBeenCalled();
+      expect(panel.state.options.option2).toBe('migration option');
+    });
+
+    it('should run migration due to version change without calling shouldMigrate', async () => {
+      panel = new VizPanel<OptionsPlugin1, FieldConfigPlugin1>({
+        pluginId: 'custom-plugin-id',
+        pluginVersion: '0.9.0',
+      });
+
+      pluginToLoad = getTestPlugin1();
+      pluginToLoad.onPanelMigration = onPanelMigration;
+      // @ts-expect-error
+      pluginToLoad.shouldMigrate = shouldMigrate.mockReturnValue(false);
+
+      await panel.activate();
+
+      expect(onPanelMigration).toHaveBeenCalled();
+      expect(shouldMigrate).not.toHaveBeenCalled();
+      expect(panel.state.options.option2).toBe('migration option');
+    });
+
+    it('should not call migration when shouldMigrate returns false with same plugin version', async () => {
+      panel = new VizPanel<OptionsPlugin1, FieldConfigPlugin1>({
+        pluginId: 'custom-plugin-id',
+        pluginVersion: '1.0.0',
+      });
+
+      pluginToLoad = getTestPlugin1();
+      pluginToLoad.onPanelMigration = onPanelMigration;
+      // @ts-expect-error
+      pluginToLoad.shouldMigrate = shouldMigrate.mockReturnValue(false);
+
+      await panel.activate();
+
+      expect(shouldMigrate).toHaveBeenCalled();
+      expect(onPanelMigration).not.toHaveBeenCalled();
+      expect(panel.state.options.option2).toBeUndefined();
+    });
+
+    it('should work with existing migration when shouldMigrate is undefined', async () => {
+      panel = new VizPanel<OptionsPlugin1, FieldConfigPlugin1>({
+        pluginId: 'custom-plugin-id',
+        pluginVersion: '0.9.0',
+      });
+
+      pluginToLoad = getTestPlugin1();
+      pluginToLoad.onPanelMigration = onPanelMigration;
+
+      await panel.activate();
+
+      expect(onPanelMigration).toHaveBeenCalled();
+      expect(panel.state.options.option2).toBe('migration option');
+    });
+  });
+
   describe('Should provide a panel context', () => {
     let panel: VizPanel<OptionsPlugin1, FieldConfigPlugin1>;
 
diff --git a/packages/scenes/src/components/VizPanel/VizPanel.tsx b/packages/scenes/src/components/VizPanel/VizPanel.tsx
index fd47c99a0..9ff667f68 100644
--- a/packages/scenes/src/components/VizPanel/VizPanel.tsx
+++ b/packages/scenes/src/components/VizPanel/VizPanel.tsx
@@ -233,7 +233,10 @@ export class VizPanel<TOptions = {}, TFieldConfig extends {} = {}> extends Scene
 
     _UNSAFE_customMigrationHandler?.(panel, plugin);
 
-    if (plugin.onPanelMigration && currentVersion !== pluginVersion && !isAfterPluginChange) {
+    //@ts-expect-error (TODO: remove after upgrading with https://github.com/grafana/grafana/pull/108998)
+    const needsMigration = currentVersion !== pluginVersion || plugin.shouldMigrate?.(panel);
+
+    if (plugin.onPanelMigration && needsMigration && !isAfterPluginChange) {
       // These migration handlers also mutate panel.fieldConfig to migrate fieldConfig
       panel.options = await plugin.onPanelMigration(panel);
     }