diff --git a/x-pack/platform/plugins/shared/fleet/common/services/package_to_package_policy.ts b/x-pack/platform/plugins/shared/fleet/common/services/package_to_package_policy.ts
index d1a68c81d39f5..0b9c1e005582c 100644
--- a/x-pack/platform/plugins/shared/fleet/common/services/package_to_package_policy.ts
+++ b/x-pack/platform/plugins/shared/fleet/common/services/package_to_package_policy.ts
@@ -89,6 +89,10 @@ export const varsReducer = (
   configObject: PackagePolicyConfigRecord,
   registryVar: RegistryVarsEntry
 ): PackagePolicyConfigRecord => {
+  // section_header vars are decorative only and hold no value
+  if (registryVar.type === 'section_header') {
+    return configObject;
+  }
   const configEntry: PackagePolicyConfigRecordEntry = {
     value: !registryVar.default && registryVar.multi ? [] : registryVar.default,
   };
diff --git a/x-pack/platform/plugins/shared/fleet/common/types/models/epm.ts b/x-pack/platform/plugins/shared/fleet/common/types/models/epm.ts
index 3b058da24c7cf..5ead043d5f2e1 100644
--- a/x-pack/platform/plugins/shared/fleet/common/types/models/epm.ts
+++ b/x-pack/platform/plugins/shared/fleet/common/types/models/epm.ts
@@ -323,6 +323,7 @@ export enum RegistryInputKeys {
   deprecated = 'deprecated',
   migrate_from = 'migrate_from',
   dynamic_signal_types = 'dynamic_signal_types',
+  show_divider = 'show_divider',
 }
 
 export type RegistryInputGroup = 'logs' | 'metrics';
@@ -344,6 +345,8 @@ export interface RegistryInput {
   [RegistryInputKeys.migrate_from]?: string;
   /** When true the data stream signal type (logs/metrics/traces) is determined at runtime by the agent. Valid for OTel collector inputs in composable integrations. */
   [RegistryInputKeys.dynamic_signal_types]?: boolean;
+  /** When false, suppresses the automatic horizontal divider rendered after the input-level config section. Defaults to true. */
+  [RegistryInputKeys.show_divider]?: boolean;
 }
 
 export enum RegistryStreamKeys {
@@ -548,7 +551,8 @@ export type RegistryVarType =
   | 'string'
   | 'textarea'
   | 'duration'
-  | 'url';
+  | 'url'
+  | 'section_header';
 export enum RegistryVarsEntryKeys {
   name = 'name',
   title = 'title',
diff --git a/x-pack/platform/plugins/shared/fleet/common/types/models/package_spec.ts b/x-pack/platform/plugins/shared/fleet/common/types/models/package_spec.ts
index 5f1f99da7e28d..39c34505d5466 100644
--- a/x-pack/platform/plugins/shared/fleet/common/types/models/package_spec.ts
+++ b/x-pack/platform/plugins/shared/fleet/common/types/models/package_spec.ts
@@ -28,6 +28,7 @@ export interface RegistryVarGroup {
   selector_title: string;
   description?: string;
   required?: boolean; // When true, all vars in the selected option are treated as required
+  show_divider?: boolean; // When false, suppresses the automatic horizontal divider rendered after this var_group's stream section
   options: RegistryVarGroupOption[];
 }
 
diff --git a/x-pack/platform/plugins/shared/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/components/steps/components/package_policy_input_config.tsx b/x-pack/platform/plugins/shared/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/components/steps/components/package_policy_input_config.tsx
index 9620dce4f9f6d..4363ec92d88da 100644
--- a/x-pack/platform/plugins/shared/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/components/steps/components/package_policy_input_config.tsx
+++ b/x-pack/platform/plugins/shared/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/components/steps/components/package_policy_input_config.tsx
@@ -26,7 +26,7 @@ import type {
 } from '../../../../../../types';
 import type { PackagePolicyConfigValidationResults } from '../../../services';
 import { isAdvancedVar, validationHasErrors } from '../../../services';
-import { shouldShowVar } from '../../../services/var_group_helpers';
+import { shouldShowVar, getVarsControlledByVarGroups } from '../../../services/var_group_helpers';
 import type { VarGroupSelection } from '../../../services/var_group_helpers';
 import { useAgentless } from '../../../single_page_layout/hooks/setup_technology';
 
@@ -72,10 +72,15 @@ export const PackagePolicyInputConfig: React.FunctionComponent<{
     const [isShowingAdvanced, setIsShowingAdvanced] = useState<boolean>(false);
     const { isAgentlessEnabled } = useAgentless();
 
-    // Split vars into required and advanced, filtering by var_group visibility and deprecated vars
-    const [requiredVars, advancedVars] = useMemo(() => {
+    // Split vars into required and advanced, filtering by var_group visibility and deprecated vars.
+    // Required vars are further split into pre-group (not controlled by any var_group, rendered
+    // above var_group selectors) and post-group (controlled by a selected var_group option,
+    // rendered below var_group selectors) to preserve manifest declaration order intent.
+    const [preGroupRequiredVars, postGroupRequiredVars, advancedVars] = useMemo(() => {
       const _advancedVars: RegistryVarsEntry[] = [];
-      const _requiredVars: RegistryVarsEntry[] = [];
+      const _preGroupVars: RegistryVarsEntry[] = [];
+      const _postGroupVars: RegistryVarsEntry[] = [];
+      const controlledVars = varGroups?.length ? getVarsControlledByVarGroups(varGroups) : null;
       (packageInputVars || []).forEach((varDef) => {
         if (!isEditPage && !!varDef.deprecated) {
           return;
@@ -89,11 +94,15 @@ export const PackagePolicyInputConfig: React.FunctionComponent<{
         }
         if (isAdvancedVar(varDef, varGroups, varGroupSelections)) {
           _advancedVars.push(varDef);
+        } else if (controlledVars?.has(varDef.name)) {
+          // Var is controlled by a var_group option — render after the var_group selector
+          _postGroupVars.push(varDef);
         } else {
-          _requiredVars.push(varDef);
+          // Var is independent of var_groups — render before the var_group selector
+          _preGroupVars.push(varDef);
         }
       });
-      return [_requiredVars, _advancedVars];
+      return [_preGroupVars, _postGroupVars, _advancedVars];
     }, [packageInputVars, varGroups, varGroupSelections, isEditPage]);
 
     const allAdvancedVars = useMemo(() => {
@@ -189,6 +198,36 @@ export const PackagePolicyInputConfig: React.FunctionComponent<{
         ) : null}
         <EuiFlexItem>
           <EuiFlexGroup direction="column" gutterSize="m">
+            {preGroupRequiredVars.map((varDef) => {
+              const { name: varName, type: varType } = varDef;
+
+              const value = packagePolicyInput.vars?.[varName]?.value;
+              const frozen = packagePolicyInput.vars?.[varName]?.frozen;
+
+              return (
+                <EuiFlexItem key={varName}>
+                  <PackagePolicyInputVarField
+                    varDef={varDef}
+                    value={value}
+                    frozen={frozen}
+                    onChange={(newValue: any) => {
+                      updatePackagePolicyInput({
+                        vars: {
+                          ...packagePolicyInput.vars,
+                          [varName]: {
+                            type: varType,
+                            value: newValue,
+                          },
+                        },
+                      });
+                    }}
+                    errors={inputValidationResults.vars?.[varName]}
+                    forceShowErrors={forceShowErrors}
+                    isEditPage={isEditPage}
+                  />
+                </EuiFlexItem>
+              );
+            })}
             {varGroups?.map((varGroup) => (
               <EuiFlexItem key={varGroup.name}>
                 <VarGroupSelector
@@ -199,7 +238,7 @@ export const PackagePolicyInputConfig: React.FunctionComponent<{
                 />
               </EuiFlexItem>
             ))}
-            {requiredVars.map((varDef) => {
+            {postGroupRequiredVars.map((varDef) => {
               const { name: varName, type: varType } = varDef;
 
               const value = packagePolicyInput.vars?.[varName]?.value;
diff --git a/x-pack/platform/plugins/shared/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/components/steps/components/package_policy_input_panel.tsx b/x-pack/platform/plugins/shared/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/components/steps/components/package_policy_input_panel.tsx
index a515c537e5e68..72092f3f1122c 100644
--- a/x-pack/platform/plugins/shared/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/components/steps/components/package_policy_input_panel.tsx
+++ b/x-pack/platform/plugins/shared/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/components/steps/components/package_policy_input_panel.tsx
@@ -525,7 +525,9 @@ export const PackagePolicyInputPanel: React.FunctionComponent<{
               showDescriptionColumn={!isSingleInputAndStreams}
               streamAdvancedVars={consolidatedStreamAdvancedVars}
             />
-            {hasInputStreams && !shouldConsolidateAdvancedSections ? (
+            {hasInputStreams &&
+            !shouldConsolidateAdvancedSections &&
+            packageInput.show_divider !== false ? (
               <ShortenedHorizontalRule margin="m" />
             ) : (
               <EuiSpacer size="l" />
diff --git a/x-pack/platform/plugins/shared/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/components/steps/components/package_policy_input_var_field.tsx b/x-pack/platform/plugins/shared/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/components/steps/components/package_policy_input_var_field.tsx
index 811d67b32515a..5f6aa973b4bab 100644
--- a/x-pack/platform/plugins/shared/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/components/steps/components/package_policy_input_var_field.tsx
+++ b/x-pack/platform/plugins/shared/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/components/steps/components/package_policy_input_var_field.tsx
@@ -13,6 +13,7 @@ import {
   EuiSwitch,
   EuiFieldText,
   EuiText,
+  EuiTitle,
   EuiFieldPassword,
   EuiCodeBlock,
   EuiTextArea,
@@ -112,6 +113,21 @@ export const PackagePolicyInputVarField: React.FunctionComponent<InputFieldProps
       return null;
     }
 
+    if (type === 'section_header') {
+      return (
+        <>
+          <EuiTitle size="xxs">
+            <h4>{title || name}</h4>
+          </EuiTitle>
+          {description && (
+            <EuiText size="s" color="subdued">
+              <ReactMarkdown children={description} />
+            </EuiText>
+          )}
+        </>
+      );
+    }
+
     if (name === DATASET_VAR_NAME && packageType === 'input') {
       return (
         <DatasetComponent
diff --git a/x-pack/platform/plugins/shared/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/services/is_advanced_var.ts b/x-pack/platform/plugins/shared/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/services/is_advanced_var.ts
index f288f707d56cd..3a350bd95d7da 100644
--- a/x-pack/platform/plugins/shared/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/services/is_advanced_var.ts
+++ b/x-pack/platform/plugins/shared/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/services/is_advanced_var.ts
@@ -26,6 +26,11 @@ export const isAdvancedVar = (
   varGroups?: RegistryVarGroup[],
   varGroupSelections?: VarGroupSelection
 ): boolean => {
+  // section_header vars are decorative and always render with required vars, never under "Advanced options"
+  if (varDef.type === 'section_header') {
+    return false;
+  }
+
   // If var is in a selected var_group option, treat as non-advanced (override show_user: false)
   if (
     varGroups &&