diff --git a/site/src/modules/workspaces/WorkspaceMoreActions/UpdateBuildParametersDialogExperimental.tsx b/site/src/modules/workspaces/WorkspaceMoreActions/UpdateBuildParametersDialogExperimental.tsx
index 04bb92a5e79b2..bc21b289a082b 100644
--- a/site/src/modules/workspaces/WorkspaceMoreActions/UpdateBuildParametersDialogExperimental.tsx
+++ b/site/src/modules/workspaces/WorkspaceMoreActions/UpdateBuildParametersDialogExperimental.tsx
@@ -47,14 +47,13 @@ export const UpdateBuildParametersDialogExperimental: FC<
 					<DialogDescription>
 						This template has{" "}
 						<strong className="text-content-primary">
-							{missedParameters.length} new parameter
+							{missedParameters.length} ephemeral parameter
 							{missedParameters.length === 1 ? "" : "s"}
 						</strong>{" "}
-						that must be configured to complete the update.
+						that need to be configured before continuing. Ephemeral parameters may depend on values of non-ephemeral parameters.
 					</DialogDescription>
 					<DialogDescription>
-						Would you like to go to the workspace parameters page to review and
-						update these parameters before continuing?
+						Please go to the workspace settings page to provide values for these ephemeral parameters before continuing.
 					</DialogDescription>
 				</DialogHeader>
 				<DialogFooter>
diff --git a/site/src/pages/WorkspacePage/WorkspaceActions/Buttons.tsx b/site/src/pages/WorkspacePage/WorkspaceActions/Buttons.tsx
index b02e4473eb57f..3076c5a1d4003 100644
--- a/site/src/pages/WorkspacePage/WorkspaceActions/Buttons.tsx
+++ b/site/src/pages/WorkspacePage/WorkspaceActions/Buttons.tsx
@@ -12,7 +12,7 @@ import {
 	StarOffIcon,
 } from "lucide-react";
 import type { FC } from "react";
-import { BuildParametersPopover } from "./BuildParametersPopover";
+import { ConditionalBuildParametersPopover } from "./ConditionalBuildParametersPopover";
 
 export interface ActionButtonProps {
 	loading?: boolean;
@@ -74,7 +74,7 @@ export const StartButton: FC<ActionButtonPropsWithWorkspace> = ({
 	return (
 		<div className="flex gap-1 items-center">
 			{mainButton}
-			<BuildParametersPopover
+			<ConditionalBuildParametersPopover
 				label="Start with build parameters"
 				workspace={workspace}
 				disabled={loading}
@@ -128,7 +128,7 @@ export const RestartButton: FC<ActionButtonPropsWithWorkspace> = ({
 				<RotateCcwIcon />
 				{loading ? <>Restarting&hellip;</> : <>Restart&hellip;</>}
 			</TopbarButton>
-			<BuildParametersPopover
+			<ConditionalBuildParametersPopover
 				label="Restart with build parameters"
 				workspace={workspace}
 				disabled={loading}
diff --git a/site/src/pages/WorkspacePage/WorkspaceActions/ConditionalBuildParametersPopover.tsx b/site/src/pages/WorkspacePage/WorkspaceActions/ConditionalBuildParametersPopover.tsx
new file mode 100644
index 0000000000000..58dfbd3afb0c3
--- /dev/null
+++ b/site/src/pages/WorkspacePage/WorkspaceActions/ConditionalBuildParametersPopover.tsx
@@ -0,0 +1,80 @@
+import type { Workspace, WorkspaceBuildParameter } from "api/typesGenerated";
+import { TopbarButton } from "components/FullPageLayout/Topbar";
+import visuallyHidden from "@mui/utils/visuallyHidden";
+import { ChevronDownIcon } from "lucide-react";
+import type { FC } from "react";
+import { useState } from "react";
+import { BuildParametersPopover } from "./BuildParametersPopover";
+import { UpdateBuildParametersDialogExperimental } from "modules/workspaces/WorkspaceMoreActions/UpdateBuildParametersDialogExperimental";
+import { useQuery } from "react-query";
+import { API } from "api/api";
+
+interface ConditionalBuildParametersPopoverProps {
+	workspace: Workspace;
+	disabled?: boolean;
+	onSubmit: (buildParameters?: WorkspaceBuildParameter[]) => void;
+	label: string;
+}
+
+export const ConditionalBuildParametersPopover: FC<ConditionalBuildParametersPopoverProps> = ({
+	workspace,
+	disabled,
+	label,
+	onSubmit,
+}) => {
+	const [isDialogOpen, setIsDialogOpen] = useState(false);
+
+	const { data: parameters } = useQuery({
+		queryKey: ["workspace", workspace.id, "parameters"],
+		queryFn: () => API.getWorkspaceParameters(workspace),
+	});
+	
+	const ephemeralParameters = parameters
+		? parameters.templateVersionRichParameters.filter((p) => p.ephemeral)
+		: [];
+
+	// If using classic parameter flow, render the original BuildParametersPopover
+	if (workspace.template_use_classic_parameter_flow) {
+		return (
+			<BuildParametersPopover
+				workspace={workspace}
+				disabled={disabled}
+				label={label}
+				onSubmit={onSubmit}
+			/>
+		);
+	}
+
+	// For experimental flow, show dialog directing to workspace settings
+	const handleClick = () => {
+		if (ephemeralParameters.length > 0) {
+			setIsDialogOpen(true);
+		} else {
+			// If no ephemeral parameters, proceed with the action
+			onSubmit();
+		}
+	};
+
+	return (
+		<>
+			<TopbarButton
+				data-testid="build-parameters-button"
+				disabled={disabled}
+				className="min-w-fit"
+				onClick={handleClick}
+			>
+				<ChevronDownIcon />
+				<span css={{ ...visuallyHidden }}>{label}</span>
+			</TopbarButton>
+
+			<UpdateBuildParametersDialogExperimental
+				open={isDialogOpen}
+				onClose={() => setIsDialogOpen(false)}
+				missedParameters={ephemeralParameters}
+				workspaceOwnerName={workspace.owner_name}
+				workspaceName={workspace.name}
+				templateVersionId={workspace.latest_build.template_version_id}
+			/>
+		</>
+	);
+};
\ No newline at end of file
diff --git a/site/src/pages/WorkspacePage/WorkspaceActions/DebugButton.tsx b/site/src/pages/WorkspacePage/WorkspaceActions/DebugButton.tsx
index 864f5938975bd..e7b74c31489ca 100644
--- a/site/src/pages/WorkspacePage/WorkspaceActions/DebugButton.tsx
+++ b/site/src/pages/WorkspacePage/WorkspaceActions/DebugButton.tsx
@@ -2,7 +2,7 @@ import type { Workspace } from "api/typesGenerated";
 import { TopbarButton } from "components/FullPageLayout/Topbar";
 import { BugIcon } from "lucide-react";
 import type { FC } from "react";
-import { BuildParametersPopover } from "./BuildParametersPopover";
+import { ConditionalBuildParametersPopover } from "./ConditionalBuildParametersPopover";
 import type { ActionButtonProps } from "./Buttons";
 
 type DebugButtonProps = Omit<ActionButtonProps, "loading"> & {
@@ -29,7 +29,7 @@ export const DebugButton: FC<DebugButtonProps> = ({
 	return (
 		<div className="flex gap-1 items-center">
 			{mainAction}
-			<BuildParametersPopover
+			<ConditionalBuildParametersPopover
 				label="Debug with build parameters"
 				workspace={workspace}
 				onSubmit={handleAction}
diff --git a/site/src/pages/WorkspacePage/WorkspaceActions/RetryButton.tsx b/site/src/pages/WorkspacePage/WorkspaceActions/RetryButton.tsx
index a64b8417f9e53..3031852f825f1 100644
--- a/site/src/pages/WorkspacePage/WorkspaceActions/RetryButton.tsx
+++ b/site/src/pages/WorkspacePage/WorkspaceActions/RetryButton.tsx
@@ -2,8 +2,8 @@ import type { Workspace } from "api/typesGenerated";
 import { TopbarButton } from "components/FullPageLayout/Topbar";
 import { RotateCcwIcon } from "lucide-react";
 import type { FC } from "react";
-import { BuildParametersPopover } from "./BuildParametersPopover";
 import type { ActionButtonProps } from "./Buttons";
+import { ConditionalBuildParametersPopover } from "./ConditionalBuildParametersPopover";
 
 type RetryButtonProps = Omit<ActionButtonProps, "loading"> & {
 	enableBuildParameters: boolean;
@@ -29,7 +29,7 @@ export const RetryButton: FC<RetryButtonProps> = ({
 	return (
 		<div className="flex gap-1 items-center">
 			{mainAction}
-			<BuildParametersPopover
+			<ConditionalBuildParametersPopover
 				label="Retry with build parameters"
 				workspace={workspace}
 				onSubmit={handleAction}
diff --git a/site/src/pages/WorkspaceSettingsPage/WorkspaceParametersPage/WorkspaceParametersPageViewExperimental.tsx b/site/src/pages/WorkspaceSettingsPage/WorkspaceParametersPage/WorkspaceParametersPageViewExperimental.tsx
index b3763e5a03485..ae3c39fcd964f 100644
--- a/site/src/pages/WorkspaceSettingsPage/WorkspaceParametersPage/WorkspaceParametersPageViewExperimental.tsx
+++ b/site/src/pages/WorkspaceSettingsPage/WorkspaceParametersPage/WorkspaceParametersPageViewExperimental.tsx
@@ -204,13 +204,14 @@ export const WorkspaceParametersPageViewExperimental: FC<
 			)}
 
 			<form onSubmit={form.handleSubmit} className="flex flex-col gap-8">
-				{standardParameters.length > 0 && (
+				{(standardParameters.length > 0 || ephemeralParameters.length > 0) && (
 					<section className="flex flex-col gap-9">
 						<hgroup>
 							<h2 className="text-xl font-medium mb-0">Parameters</h2>
 							<p className="text-sm text-content-secondary m-0">
 								These are the settings used by your template. Immutable
 								parameters cannot be modified once the workspace is created.
+								Ephemeral parameters only apply for a single workspace start.
 								<Link
 									href={docs(
 										"/admin/templates/extending-templates/parameters#enable-dynamic-parameters-early-access",
@@ -220,7 +221,8 @@ export const WorkspaceParametersPageViewExperimental: FC<
 								</Link>
 							</p>
 						</hgroup>
-						{standardParameters.map((parameter, index) => {
+						{/* Render all parameters together, with ephemeral parameters marked */}
+						{parameters.map((parameter, index) => {
 							const currentParameterValueIndex =
 								form.values.rich_parameter_values?.findIndex(
 									(p) => p.name === parameter.name,
@@ -241,57 +243,30 @@ export const WorkspaceParametersPageViewExperimental: FC<
 							const isDisabled =
 								disabled ||
 								parameter.styling?.disabled ||
-								!parameter.mutable ||
+								(!parameter.ephemeral && !parameter.mutable) ||
 								isSubmitting;
 
 							return (
-								<DynamicParameter
-									key={parameter.name}
-									parameter={parameter}
-									onChange={(value) =>
-										handleChange(parameter, parameterField, value)
-									}
-									autofill={false}
-									disabled={isDisabled}
-									value={formValue}
-								/>
-							);
-						})}
-					</section>
-				)}
-
-				{ephemeralParameters.length > 0 && (
-					<section className="flex flex-col gap-6">
-						<hgroup>
-							<h2 className="text-xl font-medium mb-1">Ephemeral Parameters</h2>
-							<p className="text-sm text-content-secondary m-0">
-								These parameters only apply for a single workspace start
-							</p>
-						</hgroup>
-
-						<div className="flex flex-col gap-9">
-							{ephemeralParameters.map((parameter, index) => {
-								const actualIndex = standardParameters.length + index;
-								const parameterField = `rich_parameter_values.${actualIndex}`;
-								const isDisabled =
-									disabled || parameter.styling?.disabled || isSubmitting;
-
-								return (
+								<div key={parameter.name} className="relative">
+									{parameter.ephemeral && (
+										<div className="mb-2">
+											<span className="inline-flex items-center px-2 py-1 text-xs font-medium bg-blue-100 text-blue-800 rounded-md">
+												Ephemeral
+											</span>
+										</div>
+									)}
 									<DynamicParameter
-										key={parameter.name}
 										parameter={parameter}
 										onChange={(value) =>
 											handleChange(parameter, parameterField, value)
 										}
 										autofill={false}
 										disabled={isDisabled}
-										value={
-											form.values?.rich_parameter_values?.[index]?.value || ""
-										}
+										value={formValue}
 									/>
-								);
-							})}
-						</div>
+								</div>
+							);
+						})}
 					</section>
 				)}