diff --git a/code/core/src/manager-api/modules/layout.ts b/code/core/src/manager-api/modules/layout.ts
index f8d053773926..23a444fa8837 100644
--- a/code/core/src/manager-api/modules/layout.ts
+++ b/code/core/src/manager-api/modules/layout.ts
@@ -2,6 +2,7 @@ import { SET_CONFIG } from 'storybook/internal/core-events';
 import type {
   API_Layout,
   API_LayoutCustomisations,
+  API_LayoutOptions,
   API_PanelPositions,
   API_UI,
 } from 'storybook/internal/types';
@@ -192,6 +193,38 @@ const getRecentVisibleSizes = (layoutState: API_Layout) => {
   };
 };
 
+const applyLayoutOptions = (
+  layoutState: API_Layout,
+  options: API_LayoutOptions | undefined,
+  singleStory: boolean
+) => {
+  const { showPanel, showSidebar, ...layoutOptions } = options ?? {};
+  const layoutKeys = Object.keys(layoutState) as (keyof API_Layout)[];
+  const nextLayoutState = toMerged(layoutState, pick(layoutOptions, layoutKeys)) as API_Layout;
+
+  if (showSidebar === false) {
+    nextLayoutState.recentVisibleSizes = getRecentVisibleSizes(nextLayoutState);
+    nextLayoutState.navSize = 0;
+  } else if (showSidebar === true && !singleStory) {
+    nextLayoutState.navSize = nextLayoutState.recentVisibleSizes.navSize;
+  }
+
+  if (showPanel === false) {
+    nextLayoutState.recentVisibleSizes = getRecentVisibleSizes(nextLayoutState);
+    nextLayoutState.bottomPanelHeight = 0;
+    nextLayoutState.rightPanelWidth = 0;
+  } else if (showPanel === true) {
+    nextLayoutState.bottomPanelHeight = nextLayoutState.recentVisibleSizes.bottomPanelHeight;
+    nextLayoutState.rightPanelWidth = nextLayoutState.recentVisibleSizes.rightPanelWidth;
+  }
+
+  if (singleStory) {
+    nextLayoutState.navSize = 0;
+  }
+
+  return nextLayoutState;
+};
+
 export const init: ModuleFn<SubAPI, SubState> = ({ store, provider, singleStory }) => {
   const api = {
     toggleFullscreen(nextState?: boolean) {
@@ -444,13 +477,14 @@ export const init: ModuleFn<SubAPI, SubState> = ({ store, provider, singleStory
 
       return {
         ...defaultLayoutState,
-        layout: {
-          ...toMerged(
-            defaultLayoutState.layout,
-            pick(options, Object.keys(defaultLayoutState.layout))
-          ),
-          ...(singleStory && { navSize: 0 }),
-        },
+        layout: applyLayoutOptions(
+          defaultLayoutState.layout,
+          {
+            ...options.layout,
+            ...pick(options, Object.keys(defaultLayoutState.layout)),
+          },
+          !!singleStory
+        ),
         layoutCustomisations: {
           ...defaultLayoutState.layoutCustomisations,
           ...(layoutCustomisations ?? {}),
@@ -513,12 +547,14 @@ export const init: ModuleFn<SubAPI, SubState> = ({ store, provider, singleStory
         return;
       }
 
-      const updatedLayout = {
-        ...layout,
-        ...(options.layout || {}),
-        ...pick(options, Object.keys(layout)),
-        ...(singleStory && { navSize: 0 }),
-      };
+      const updatedLayout = applyLayoutOptions(
+        layout,
+        {
+          ...options.layout,
+          ...pick(options, Object.keys(layout)),
+        },
+        !!singleStory
+      );
 
       const updatedUi = {
         ...ui,
diff --git a/code/core/src/manager-api/tests/layout.test.ts b/code/core/src/manager-api/tests/layout.test.ts
index 30fd16e0e4ad..73b2c5526c78 100644
--- a/code/core/src/manager-api/tests/layout.test.ts
+++ b/code/core/src/manager-api/tests/layout.test.ts
@@ -486,6 +486,44 @@ describe('layout API', () => {
 
       expect(getLastSetStateArgs()[0].selectedPanel).toEqual(panelName);
     });
+
+    it('should hide the panel when layout.showPanel is false', () => {
+      layoutApi.setSizes({
+        bottomPanelHeight: 200,
+        rightPanelWidth: 250,
+      });
+
+      layoutApi.setOptions({ layout: { showPanel: false } });
+
+      expect(currentState.layout.bottomPanelHeight).toBe(0);
+      expect(currentState.layout.rightPanelWidth).toBe(0);
+      expect(currentState.layout.recentVisibleSizes.bottomPanelHeight).toBe(200);
+      expect(currentState.layout.recentVisibleSizes.rightPanelWidth).toBe(250);
+
+      layoutApi.togglePanel(true);
+
+      expect(currentState.layout.bottomPanelHeight).toBe(200);
+      expect(currentState.layout.rightPanelWidth).toBe(250);
+    });
+  });
+
+  describe('getInitialOptions', () => {
+    it('should apply layout.showPanel from the initial config', () => {
+      (provider.getConfig as Mock).mockReturnValue({
+        layout: { showPanel: false },
+      });
+
+      const { state } = initLayout({
+        store,
+        provider,
+        singleStory: false,
+      } as unknown as ModuleArgs);
+
+      expect(state.layout.bottomPanelHeight).toBe(0);
+      expect(state.layout.rightPanelWidth).toBe(0);
+      expect(state.layout.recentVisibleSizes.bottomPanelHeight).toBe(300);
+      expect(state.layout.recentVisibleSizes.rightPanelWidth).toBe(400);
+    });
   });
 
   describe('state getters', () => {
diff --git a/code/core/src/types/modules/addons.ts b/code/core/src/types/modules/addons.ts
index 31af4e84b326..ef83aae3ad62 100644
--- a/code/core/src/types/modules/addons.ts
+++ b/code/core/src/types/modules/addons.ts
@@ -2,7 +2,7 @@ import type { FC, PropsWithChildren, ReactElement, ReactNode } from 'react';
 
 import type { RenderData as RouterData } from '../../router/types.ts';
 import type { ThemeVars } from '../../theming/types.ts';
-import type { API_LayoutCustomisations, API_SidebarOptions } from './api.ts';
+import type { API_LayoutCustomisations, API_LayoutOptions, API_SidebarOptions } from './api.ts';
 import type { API_HashEntry, API_StoryEntry } from './api-stories.ts';
 import type {
   Args,
@@ -479,6 +479,7 @@ export interface Addon_ToolbarConfig {
 }
 export interface Addon_Config {
   theme?: ThemeVars;
+  layout?: API_LayoutOptions;
   layoutCustomisations?: {
     showPanel?: API_LayoutCustomisations['showPanel'];
     showSidebar?: API_LayoutCustomisations['showSidebar'];
diff --git a/code/core/src/types/modules/api.ts b/code/core/src/types/modules/api.ts
index 0e94d96699b6..75e0916502d9 100644
--- a/code/core/src/types/modules/api.ts
+++ b/code/core/src/types/modules/api.ts
@@ -95,6 +95,11 @@ export interface API_Layout {
   showToolbar: boolean;
 }
 
+export interface API_LayoutOptions extends Partial<API_Layout> {
+  showPanel?: boolean;
+  showSidebar?: boolean;
+}
+
 export interface API_LayoutCustomisations {
   showPanel?: (state: State, defaultValue: boolean) => boolean | undefined;
   showSidebar?: (state: State, defaultValue: boolean) => boolean | undefined;