diff --git a/docs/resources/asserts_prom_rule_file.md b/docs/resources/asserts_prom_rule_file.md
new file mode 100644
index 000000000..b7a99d645
--- /dev/null
+++ b/docs/resources/asserts_prom_rule_file.md
@@ -0,0 +1,314 @@
+---
+# generated by https://github.com/hashicorp/terraform-plugin-docs
+page_title: "grafana_asserts_prom_rule_file Resource - terraform-provider-grafana"
+subcategory: "Knowledge Graph"
+description: |-
+  Manages Prometheus Rules configurations through Grafana Asserts API. Allows creation and management of custom Prometheus recording and alerting rules.
+---
+
+# grafana_asserts_prom_rule_file (Resource)
+
+Manages Prometheus Rules configurations through Grafana Asserts API. Allows creation and management of custom Prometheus recording and alerting rules.
+
+## Example Usage
+
+```terraform
+# Basic recording rule for latency metrics
+resource "grafana_asserts_prom_rule_file" "latency_metrics" {
+  name   = "custom-latency-metrics"
+  active = true
+
+  group {
+    name     = "latency_recording_rules"
+    interval = "30s"
+
+    rule {
+      record = "custom:latency:p95"
+      expr   = "histogram_quantile(0.95, rate(http_request_duration_seconds_bucket[5m]))"
+      labels = {
+        source   = "custom_instrumentation"
+        severity = "info"
+      }
+    }
+
+    rule {
+      record = "custom:latency:p99"
+      expr   = "histogram_quantile(0.99, rate(http_request_duration_seconds_bucket[5m]))"
+      labels = {
+        source   = "custom_instrumentation"
+        severity = "info"
+      }
+    }
+  }
+}
+
+# Alert rules for high latency
+resource "grafana_asserts_prom_rule_file" "latency_alerts" {
+  name   = "custom-latency-alerts"
+  active = true
+
+  group {
+    name     = "latency_alerting"
+    interval = "30s"
+
+    rule {
+      alert    = "HighLatency"
+      expr     = "histogram_quantile(0.99, rate(http_request_duration_seconds_bucket[5m])) > 0.5"
+      duration = "5m"
+      labels = {
+        severity = "warning"
+        category = "Latency"
+      }
+      annotations = {
+        summary     = "High latency detected"
+        description = "P99 latency is above 500ms for 5 minutes"
+      }
+    }
+
+    rule {
+      alert    = "VeryHighLatency"
+      expr     = "histogram_quantile(0.99, rate(http_request_duration_seconds_bucket[5m])) > 1.0"
+      duration = "2m"
+      labels = {
+        severity = "critical"
+        category = "Latency"
+      }
+      annotations = {
+        summary     = "Very high latency detected"
+        description = "P99 latency is above 1 second"
+      }
+    }
+  }
+}
+
+# Comprehensive monitoring rules with multiple groups
+resource "grafana_asserts_prom_rule_file" "comprehensive_monitoring" {
+  name   = "custom-comprehensive-monitoring"
+  active = true
+
+  # Latency monitoring
+  group {
+    name     = "latency_monitoring"
+    interval = "30s"
+
+    rule {
+      record = "custom:latency:p99"
+      expr   = "histogram_quantile(0.99, rate(http_request_duration_seconds_bucket[5m]))"
+      labels = {
+        source = "custom"
+      }
+    }
+
+    rule {
+      alert    = "HighLatency"
+      expr     = "custom:latency:p99 > 0.5"
+      duration = "5m"
+      labels = {
+        severity = "warning"
+      }
+      annotations = {
+        summary = "High latency detected"
+      }
+    }
+  }
+
+  # Error rate monitoring
+  group {
+    name     = "error_monitoring"
+    interval = "1m"
+
+    rule {
+      record = "custom:error:rate"
+      expr   = "rate(http_requests_total{status=~\"5..\"}[5m])"
+      labels = {
+        source = "custom"
+      }
+    }
+
+    rule {
+      alert    = "HighErrorRate"
+      expr     = "custom:error:rate > 0.1"
+      duration = "10m"
+      labels = {
+        severity = "critical"
+        category = "Errors"
+      }
+      annotations = {
+        summary     = "High error rate detected"
+        description = "Error rate is above 10%"
+      }
+    }
+  }
+
+  # Throughput monitoring
+  group {
+    name     = "throughput_monitoring"
+    interval = "1m"
+
+    rule {
+      record = "custom:throughput:total"
+      expr   = "sum(rate(http_requests_total[5m]))"
+      labels = {
+        source = "custom"
+      }
+    }
+
+    rule {
+      alert    = "LowThroughput"
+      expr     = "custom:throughput:total < 10"
+      duration = "5m"
+      labels = {
+        severity = "warning"
+        category = "Throughput"
+      }
+      annotations = {
+        summary     = "Low throughput detected"
+        description = "Request throughput is below 10 requests/second"
+      }
+    }
+  }
+}
+
+# Rules with conditional enablement
+resource "grafana_asserts_prom_rule_file" "conditional_rules" {
+  name   = "custom-conditional-rules"
+  active = true
+
+  group {
+    name     = "environment_specific_rules"
+    interval = "30s"
+
+    rule {
+      alert    = "TestAlert"
+      expr     = "up == 0"
+      duration = "1m"
+      labels = {
+        severity = "info"
+      }
+      annotations = {
+        summary = "Test alert that is disabled in production"
+      }
+      # This rule will be disabled in the production group
+      disable_in_groups = ["production"]
+    }
+
+    rule {
+      alert    = "CriticalAlert"
+      expr     = "up == 0"
+      duration = "30s"
+      labels = {
+        severity = "critical"
+      }
+      annotations = {
+        summary = "Critical alert that fires in all environments"
+      }
+    }
+  }
+}
+
+# Inactive rules (for staging/testing)
+resource "grafana_asserts_prom_rule_file" "staging_rules" {
+  name   = "custom-staging-rules"
+  active = false # Rules file is inactive
+
+  group {
+    name     = "staging_tests"
+    interval = "1m"
+
+    rule {
+      record = "staging:test:metric"
+      expr   = "up"
+      labels = {
+        environment = "staging"
+      }
+    }
+  }
+}
+
+# SLO-based alerting
+resource "grafana_asserts_prom_rule_file" "slo_alerts" {
+  name   = "custom-slo-alerts"
+  active = true
+
+  group {
+    name     = "slo_monitoring"
+    interval = "1m"
+
+    rule {
+      record = "custom:slo:availability"
+      expr   = "sum(rate(http_requests_total{status!~\"5..\"}[5m])) / sum(rate(http_requests_total[5m]))"
+      labels = {
+        slo_type = "availability"
+      }
+    }
+
+    rule {
+      alert    = "SLOAvailabilityBreach"
+      expr     = "custom:slo:availability < 0.995"
+      duration = "5m"
+      labels = {
+        severity = "critical"
+        category = "SLO"
+      }
+      annotations = {
+        summary     = "SLO availability breach"
+        description = "Availability is below 99.5% SLO target"
+        runbook_url = "https://docs.example.com/runbooks/availability-breach"
+      }
+    }
+  }
+}
+```
+
+<!-- schema generated by tfplugindocs -->
+## Schema
+
+### Required
+
+- `group` (Block List, Min: 1) List of Prometheus rule groups. Each group contains one or more rules and can have its own evaluation interval. (see [below for nested schema](#nestedblock--group))
+- `name` (String) The name of the Prometheus rules file. This will be stored with a .custom extension. Must follow naming validation rules (alphanumeric, hyphens, underscores).
+
+### Optional
+
+- `active` (Boolean) Whether the rules file is active. Inactive rules are not evaluated. Defaults to `true`.
+
+### Read-Only
+
+- `id` (String) The ID of this resource.
+
+<a id="nestedblock--group"></a>
+### Nested Schema for `group`
+
+Required:
+
+- `name` (String) The name of the rule group (e.g., 'latency_monitoring').
+- `rule` (Block List, Min: 1) List of Prometheus rules in this group. (see [below for nested schema](#nestedblock--group--rule))
+
+Optional:
+
+- `interval` (String) Evaluation interval for this group (e.g., '30s', '1m'). If not specified, uses the global evaluation interval.
+
+<a id="nestedblock--group--rule"></a>
+### Nested Schema for `group.rule`
+
+Required:
+
+- `expr` (String) The PromQL expression to evaluate.
+
+Optional:
+
+- `active` (Boolean) Whether this specific rule is active. This field is read-only and controlled by the API.
+- `alert` (String) The name of the alert for alerting rules. Either 'record' or 'alert' must be specified, but not both.
+- `annotations` (Map of String) Annotations to add to alerts (e.g., summary, description).
+- `disable_in_groups` (Set of String) List of group names where this rule should be disabled. Useful for conditional rule enablement.
+- `duration` (String) How long the condition must be true before firing the alert (e.g., '5m'). Only applicable for alerting rules. Maps to 'for' in Prometheus.
+- `labels` (Map of String) Labels to attach to the resulting time series or alert.
+- `record` (String) The name of the time series to output for recording rules. Either 'record' or 'alert' must be specified, but not both.
+
+## Import
+
+Import is supported using the following syntax:
+
+```shell
+terraform import grafana_asserts_prom_rule_file.name "{{ name }}"
+```
diff --git a/examples/resources/grafana_asserts_prom_rule_file/import.sh b/examples/resources/grafana_asserts_prom_rule_file/import.sh
new file mode 100644
index 000000000..64588c5df
--- /dev/null
+++ b/examples/resources/grafana_asserts_prom_rule_file/import.sh
@@ -0,0 +1 @@
+terraform import grafana_asserts_prom_rule_file.name "{{ name }}"
diff --git a/examples/resources/grafana_asserts_prom_rule_file/resource.tf b/examples/resources/grafana_asserts_prom_rule_file/resource.tf
new file mode 100644
index 000000000..f848ef4da
--- /dev/null
+++ b/examples/resources/grafana_asserts_prom_rule_file/resource.tf
@@ -0,0 +1,246 @@
+# Basic recording rule for latency metrics
+resource "grafana_asserts_prom_rule_file" "latency_metrics" {
+  name   = "custom-latency-metrics"
+  active = true
+
+  group {
+    name     = "latency_recording_rules"
+    interval = "30s"
+
+    rule {
+      record = "custom:latency:p95"
+      expr   = "histogram_quantile(0.95, rate(http_request_duration_seconds_bucket[5m]))"
+      labels = {
+        source   = "custom_instrumentation"
+        severity = "info"
+      }
+    }
+
+    rule {
+      record = "custom:latency:p99"
+      expr   = "histogram_quantile(0.99, rate(http_request_duration_seconds_bucket[5m]))"
+      labels = {
+        source   = "custom_instrumentation"
+        severity = "info"
+      }
+    }
+  }
+}
+
+# Alert rules for high latency
+resource "grafana_asserts_prom_rule_file" "latency_alerts" {
+  name   = "custom-latency-alerts"
+  active = true
+
+  group {
+    name     = "latency_alerting"
+    interval = "30s"
+
+    rule {
+      alert    = "HighLatency"
+      expr     = "histogram_quantile(0.99, rate(http_request_duration_seconds_bucket[5m])) > 0.5"
+      duration = "5m"
+      labels = {
+        severity = "warning"
+        category = "Latency"
+      }
+      annotations = {
+        summary     = "High latency detected"
+        description = "P99 latency is above 500ms for 5 minutes"
+      }
+    }
+
+    rule {
+      alert    = "VeryHighLatency"
+      expr     = "histogram_quantile(0.99, rate(http_request_duration_seconds_bucket[5m])) > 1.0"
+      duration = "2m"
+      labels = {
+        severity = "critical"
+        category = "Latency"
+      }
+      annotations = {
+        summary     = "Very high latency detected"
+        description = "P99 latency is above 1 second"
+      }
+    }
+  }
+}
+
+# Comprehensive monitoring rules with multiple groups
+resource "grafana_asserts_prom_rule_file" "comprehensive_monitoring" {
+  name   = "custom-comprehensive-monitoring"
+  active = true
+
+  # Latency monitoring
+  group {
+    name     = "latency_monitoring"
+    interval = "30s"
+
+    rule {
+      record = "custom:latency:p99"
+      expr   = "histogram_quantile(0.99, rate(http_request_duration_seconds_bucket[5m]))"
+      labels = {
+        source = "custom"
+      }
+    }
+
+    rule {
+      alert    = "HighLatency"
+      expr     = "custom:latency:p99 > 0.5"
+      duration = "5m"
+      labels = {
+        severity = "warning"
+      }
+      annotations = {
+        summary = "High latency detected"
+      }
+    }
+  }
+
+  # Error rate monitoring
+  group {
+    name     = "error_monitoring"
+    interval = "1m"
+
+    rule {
+      record = "custom:error:rate"
+      expr   = "rate(http_requests_total{status=~\"5..\"}[5m])"
+      labels = {
+        source = "custom"
+      }
+    }
+
+    rule {
+      alert    = "HighErrorRate"
+      expr     = "custom:error:rate > 0.1"
+      duration = "10m"
+      labels = {
+        severity = "critical"
+        category = "Errors"
+      }
+      annotations = {
+        summary     = "High error rate detected"
+        description = "Error rate is above 10%"
+      }
+    }
+  }
+
+  # Throughput monitoring
+  group {
+    name     = "throughput_monitoring"
+    interval = "1m"
+
+    rule {
+      record = "custom:throughput:total"
+      expr   = "sum(rate(http_requests_total[5m]))"
+      labels = {
+        source = "custom"
+      }
+    }
+
+    rule {
+      alert    = "LowThroughput"
+      expr     = "custom:throughput:total < 10"
+      duration = "5m"
+      labels = {
+        severity = "warning"
+        category = "Throughput"
+      }
+      annotations = {
+        summary     = "Low throughput detected"
+        description = "Request throughput is below 10 requests/second"
+      }
+    }
+  }
+}
+
+# Rules with conditional enablement
+resource "grafana_asserts_prom_rule_file" "conditional_rules" {
+  name   = "custom-conditional-rules"
+  active = true
+
+  group {
+    name     = "environment_specific_rules"
+    interval = "30s"
+
+    rule {
+      alert    = "TestAlert"
+      expr     = "up == 0"
+      duration = "1m"
+      labels = {
+        severity = "info"
+      }
+      annotations = {
+        summary = "Test alert that is disabled in production"
+      }
+      # This rule will be disabled in the production group
+      disable_in_groups = ["production"]
+    }
+
+    rule {
+      alert    = "CriticalAlert"
+      expr     = "up == 0"
+      duration = "30s"
+      labels = {
+        severity = "critical"
+      }
+      annotations = {
+        summary = "Critical alert that fires in all environments"
+      }
+    }
+  }
+}
+
+# Inactive rules (for staging/testing)
+resource "grafana_asserts_prom_rule_file" "staging_rules" {
+  name   = "custom-staging-rules"
+  active = false # Rules file is inactive
+
+  group {
+    name     = "staging_tests"
+    interval = "1m"
+
+    rule {
+      record = "staging:test:metric"
+      expr   = "up"
+      labels = {
+        environment = "staging"
+      }
+    }
+  }
+}
+
+# SLO-based alerting
+resource "grafana_asserts_prom_rule_file" "slo_alerts" {
+  name   = "custom-slo-alerts"
+  active = true
+
+  group {
+    name     = "slo_monitoring"
+    interval = "1m"
+
+    rule {
+      record = "custom:slo:availability"
+      expr   = "sum(rate(http_requests_total{status!~\"5..\"}[5m])) / sum(rate(http_requests_total[5m]))"
+      labels = {
+        slo_type = "availability"
+      }
+    }
+
+    rule {
+      alert    = "SLOAvailabilityBreach"
+      expr     = "custom:slo:availability < 0.995"
+      duration = "5m"
+      labels = {
+        severity = "critical"
+        category = "SLO"
+      }
+      annotations = {
+        summary     = "SLO availability breach"
+        description = "Availability is below 99.5% SLO target"
+        runbook_url = "https://docs.example.com/runbooks/availability-breach"
+      }
+    }
+  }
+}
+
diff --git a/internal/resources/asserts/catalog-resource.yaml b/internal/resources/asserts/catalog-resource.yaml
index 60399e98f..2a1be9b3e 100644
--- a/internal/resources/asserts/catalog-resource.yaml
+++ b/internal/resources/asserts/catalog-resource.yaml
@@ -53,6 +53,19 @@ spec:
 ---
 apiVersion: backstage.io/v1alpha1
 kind: Component
+metadata:
+  name: resource-grafana_asserts_prom_rule_file
+  title: grafana_asserts_prom_rule_file (resource)
+  description: |
+    resource `grafana_asserts_prom_rule_file` in Grafana Labs' Terraform Provider
+spec:
+  subcomponentOf: component:default/terraform-provider-grafana
+  type: terraform-resource
+  owner: group:default/asserts
+  lifecycle: production
+---
+apiVersion: backstage.io/v1alpha1
+kind: Component
 metadata:
   name: resource-grafana_asserts_thresholds
   title: grafana_asserts_thresholds (resource)
diff --git a/internal/resources/asserts/common_lister.go b/internal/resources/asserts/common_lister.go
index de681d768..ff5203093 100644
--- a/internal/resources/asserts/common_lister.go
+++ b/internal/resources/asserts/common_lister.go
@@ -98,3 +98,17 @@ func listLogConfigs(ctx context.Context, client *assertsapi.APIClient, stackID s
 	}
 	return names, nil
 }
+
+// listPromRules retrieves the list of all Prometheus rules file names for a specific stack
+func listPromRules(ctx context.Context, client *assertsapi.APIClient, stackID string) ([]string, error) {
+	request := client.PromRulesConfigControllerAPI.ListPromRules(ctx).
+		XScopeOrgID(stackID)
+
+	namesDto, _, err := request.Execute()
+	if err != nil {
+		return nil, err
+	}
+
+	// The DTO contains an array of rule file names
+	return namesDto.RuleNames, nil
+}
diff --git a/internal/resources/asserts/resource_prom_rules.go b/internal/resources/asserts/resource_prom_rules.go
new file mode 100644
index 000000000..d310614d2
--- /dev/null
+++ b/internal/resources/asserts/resource_prom_rules.go
@@ -0,0 +1,501 @@
+package asserts
+
+import (
+	"context"
+	"fmt"
+
+	"github.com/hashicorp/terraform-plugin-sdk/v2/diag"
+	"github.com/hashicorp/terraform-plugin-sdk/v2/helper/retry"
+	"github.com/hashicorp/terraform-plugin-sdk/v2/helper/schema"
+
+	assertsapi "github.com/grafana/grafana-asserts-public-clients/go/gcom"
+	"github.com/grafana/terraform-provider-grafana/v4/internal/common"
+)
+
+func makeResourcePromRules() *common.Resource {
+	schema := &schema.Resource{
+		Description: "Manages Prometheus Rules configurations through Grafana Asserts API. " +
+			"Allows creation and management of custom Prometheus recording and alerting rules.",
+
+		CreateContext: resourcePromRulesCreate,
+		ReadContext:   resourcePromRulesRead,
+		UpdateContext: resourcePromRulesUpdate,
+		DeleteContext: resourcePromRulesDelete,
+
+		Importer: &schema.ResourceImporter{
+			StateContext: schema.ImportStatePassthroughContext,
+		},
+
+		Schema: map[string]*schema.Schema{
+			"name": {
+				Type:     schema.TypeString,
+				Required: true,
+				ForceNew: true, // Force recreation if name changes
+				Description: "The name of the Prometheus rules file. This will be stored with a .custom extension. " +
+					"Must follow naming validation rules (alphanumeric, hyphens, underscores).",
+			},
+			"active": {
+				Type:        schema.TypeBool,
+				Optional:    true,
+				Default:     true,
+				Description: "Whether the rules file is active. Inactive rules are not evaluated.",
+			},
+			"group": {
+				Type:     schema.TypeList,
+				Required: true,
+				Description: "List of Prometheus rule groups. Each group contains one or more rules " +
+					"and can have its own evaluation interval.",
+				Elem: &schema.Resource{
+					Schema: map[string]*schema.Schema{
+						"name": {
+							Type:        schema.TypeString,
+							Required:    true,
+							Description: "The name of the rule group (e.g., 'latency_monitoring').",
+						},
+						"interval": {
+							Type:     schema.TypeString,
+							Optional: true,
+							Description: "Evaluation interval for this group (e.g., '30s', '1m'). " +
+								"If not specified, uses the global evaluation interval.",
+						},
+						"rule": {
+							Type:        schema.TypeList,
+							Required:    true,
+							Description: "List of Prometheus rules in this group.",
+							Elem: &schema.Resource{
+								Schema: map[string]*schema.Schema{
+									"record": {
+										Type:     schema.TypeString,
+										Optional: true,
+										Description: "The name of the time series to output for recording rules. " +
+											"Either 'record' or 'alert' must be specified, but not both.",
+									},
+									"alert": {
+										Type:     schema.TypeString,
+										Optional: true,
+										Description: "The name of the alert for alerting rules. " +
+											"Either 'record' or 'alert' must be specified, but not both.",
+									},
+									"expr": {
+										Type:        schema.TypeString,
+										Required:    true,
+										Description: "The PromQL expression to evaluate.",
+									},
+									"duration": {
+										Type:     schema.TypeString,
+										Optional: true,
+										Description: "How long the condition must be true before firing the alert " +
+											"(e.g., '5m'). Only applicable for alerting rules. Maps to 'for' in Prometheus.",
+									},
+									"active": {
+										Type:     schema.TypeBool,
+										Optional: true,
+										Computed: true,
+										Description: "Whether this specific rule is active. " +
+											"This field is read-only and controlled by the API.",
+									},
+									"labels": {
+										Type:        schema.TypeMap,
+										Optional:    true,
+										Description: "Labels to attach to the resulting time series or alert.",
+										Elem:        &schema.Schema{Type: schema.TypeString},
+									},
+									"annotations": {
+										Type:        schema.TypeMap,
+										Optional:    true,
+										Description: "Annotations to add to alerts (e.g., summary, description).",
+										Elem:        &schema.Schema{Type: schema.TypeString},
+									},
+									"disable_in_groups": {
+										Type:     schema.TypeSet,
+										Optional: true,
+										Description: "List of group names where this rule should be disabled. " +
+											"Useful for conditional rule enablement.",
+										Elem: &schema.Schema{Type: schema.TypeString},
+									},
+								},
+							},
+						},
+					},
+				},
+			},
+		},
+	}
+
+	return common.NewLegacySDKResource(
+		common.CategoryAsserts,
+		"grafana_asserts_prom_rule_file",
+		common.NewResourceID(common.StringIDField("name")),
+		schema,
+	).WithLister(assertsListerFunction(listPromRules))
+}
+
+func resourcePromRulesCreate(ctx context.Context, d *schema.ResourceData, meta interface{}) diag.Diagnostics {
+	client, stackID, diags := validateAssertsClient(meta)
+	if diags.HasError() {
+		return diags
+	}
+
+	name := d.Get("name").(string)
+	active := d.Get("active").(bool)
+
+	// Build the PrometheusRulesDto
+	rulesDto := assertsapi.PrometheusRulesDto{
+		Name:   &name,
+		Active: &active,
+	}
+
+	// Build groups
+	groups, err := buildRuleGroups(d.Get("group").([]interface{}))
+	if err != nil {
+		return diag.FromErr(err)
+	}
+	rulesDto.Groups = groups
+
+	// Call the API to create/update the rules file
+	// Note: PUT is idempotent, so create and update use the same operation
+	request := client.PromRulesConfigControllerAPI.PutPromRules(ctx).
+		PrometheusRulesDto(rulesDto).
+		XScopeOrgID(fmt.Sprintf("%d", stackID))
+
+	resp, err := request.Execute()
+	if err != nil {
+		// Try to extract more details from the error
+		apiErr := fmt.Errorf("failed to create Prometheus rules file: %w", err)
+		if resp != nil {
+			apiErr = fmt.Errorf("failed to create Prometheus rules file (HTTP %d): %w", resp.StatusCode, err)
+		}
+		return diag.FromErr(apiErr)
+	}
+
+	d.SetId(name)
+
+	return resourcePromRulesRead(ctx, d, meta)
+}
+
+func resourcePromRulesRead(ctx context.Context, d *schema.ResourceData, meta interface{}) diag.Diagnostics {
+	client, stackID, diags := validateAssertsClient(meta)
+	if diags.HasError() {
+		return diags
+	}
+
+	name := d.Id()
+
+	// Retry logic for read operation to handle eventual consistency
+	var foundRules *assertsapi.PrometheusRulesDto
+	err := withRetryRead(ctx, func(retryCount, maxRetries int) *retry.RetryError {
+		// Get specific rules file
+		request := client.PromRulesConfigControllerAPI.GetPromRules(ctx, name).
+			XScopeOrgID(fmt.Sprintf("%d", stackID))
+
+		rules, resp, err := request.Execute()
+		if err != nil {
+			// If 404, the resource doesn't exist
+			if resp != nil && resp.StatusCode == 404 {
+				// Check if we should give up or retry
+				if retryCount >= maxRetries {
+					return createNonRetryableError("Prometheus rules file", name, retryCount)
+				}
+				return createRetryableError("Prometheus rules file", name, retryCount, maxRetries)
+			}
+			return createAPIError("get Prometheus rules file", retryCount, maxRetries, err)
+		}
+
+		foundRules = rules
+		return nil
+	})
+
+	if err != nil {
+		// If not found after retries, remove from state
+		if foundRules == nil {
+			d.SetId("")
+			return nil
+		}
+		return diag.FromErr(err)
+	}
+
+	// Set the resource data
+	if foundRules.Name != nil {
+		if err := d.Set("name", *foundRules.Name); err != nil {
+			return diag.FromErr(err)
+		}
+	}
+
+	// Set active field - trust what the API returns
+	// If API doesn't return it, Terraform will use the schema default (true)
+	if foundRules.Active != nil {
+		if err := d.Set("active", *foundRules.Active); err != nil {
+			return diag.FromErr(err)
+		}
+	}
+
+	// Flatten groups back into Terraform state
+	if len(foundRules.Groups) > 0 {
+		groups, err := flattenRuleGroups(foundRules.Groups)
+		if err != nil {
+			return diag.FromErr(err)
+		}
+		if err := d.Set("group", groups); err != nil {
+			return diag.FromErr(err)
+		}
+	}
+
+	return nil
+}
+
+func resourcePromRulesUpdate(ctx context.Context, d *schema.ResourceData, meta interface{}) diag.Diagnostics {
+	client, stackID, diags := validateAssertsClient(meta)
+	if diags.HasError() {
+		return diags
+	}
+
+	name := d.Get("name").(string)
+	active := d.Get("active").(bool)
+
+	// Build the PrometheusRulesDto
+	rulesDto := assertsapi.PrometheusRulesDto{
+		Name:   &name,
+		Active: &active,
+	}
+
+	// Build groups
+	groups, err := buildRuleGroups(d.Get("group").([]interface{}))
+	if err != nil {
+		return diag.FromErr(err)
+	}
+	rulesDto.Groups = groups
+
+	// Update using PUT (idempotent)
+	request := client.PromRulesConfigControllerAPI.PutPromRules(ctx).
+		PrometheusRulesDto(rulesDto).
+		XScopeOrgID(fmt.Sprintf("%d", stackID))
+
+	resp, err := request.Execute()
+	if err != nil {
+		// Try to extract more details from the error
+		apiErr := fmt.Errorf("failed to update Prometheus rules file: %w", err)
+		if resp != nil {
+			apiErr = fmt.Errorf("failed to update Prometheus rules file (HTTP %d): %w", resp.StatusCode, err)
+		}
+		return diag.FromErr(apiErr)
+	}
+
+	return resourcePromRulesRead(ctx, d, meta)
+}
+
+func resourcePromRulesDelete(ctx context.Context, d *schema.ResourceData, meta interface{}) diag.Diagnostics {
+	client, stackID, diags := validateAssertsClient(meta)
+	if diags.HasError() {
+		return diags
+	}
+
+	name := d.Id()
+
+	// Delete the rules file
+	request := client.PromRulesConfigControllerAPI.DeletePromRules(ctx, name).
+		XScopeOrgID(fmt.Sprintf("%d", stackID))
+
+	resp, err := request.Execute()
+	if err != nil {
+		// Ignore 404 errors - resource already deleted
+		if resp != nil && resp.StatusCode == 404 {
+			return nil
+		}
+		if common.IsNotFoundError(err) {
+			return nil
+		}
+		if resp != nil {
+			return diag.FromErr(fmt.Errorf("failed to delete Prometheus rules file (HTTP %d): %w", resp.StatusCode, err))
+		}
+		return diag.FromErr(fmt.Errorf("failed to delete Prometheus rules file: %w", err))
+	}
+
+	return nil
+}
+
+// buildRuleGroups converts Terraform schema data into PrometheusRuleGroupDto slice
+func buildRuleGroups(groupsData []interface{}) ([]assertsapi.PrometheusRuleGroupDto, error) {
+	if len(groupsData) == 0 {
+		return nil, fmt.Errorf("at least one rule group is required")
+	}
+
+	groups := make([]assertsapi.PrometheusRuleGroupDto, 0, len(groupsData))
+
+	for _, groupItem := range groupsData {
+		groupMap := groupItem.(map[string]interface{})
+
+		groupName := groupMap["name"].(string)
+		group := assertsapi.PrometheusRuleGroupDto{
+			Name: &groupName,
+		}
+
+		// Optional interval
+		if interval, ok := groupMap["interval"].(string); ok && interval != "" {
+			group.Interval = &interval
+		}
+
+		// Build rules
+		rulesData := groupMap["rule"].([]interface{})
+		if len(rulesData) == 0 {
+			return nil, fmt.Errorf("group '%s' must have at least one rule", groupName)
+		}
+
+		rules, err := buildRules(rulesData, groupName)
+		if err != nil {
+			return nil, err
+		}
+
+		group.Rules = rules
+		groups = append(groups, group)
+	}
+
+	return groups, nil
+}
+
+// buildRules converts Terraform schema data for rules into PrometheusRuleDto slice
+func buildRules(rulesData []interface{}, groupName string) ([]assertsapi.PrometheusRuleDto, error) {
+	rules := make([]assertsapi.PrometheusRuleDto, 0, len(rulesData))
+
+	for _, ruleItem := range rulesData {
+		ruleMap := ruleItem.(map[string]interface{})
+
+		rule, err := buildRule(ruleMap, groupName)
+		if err != nil {
+			return nil, err
+		}
+
+		rules = append(rules, rule)
+	}
+
+	return rules, nil
+}
+
+// buildRule converts a single rule from Terraform schema data into PrometheusRuleDto
+func buildRule(ruleMap map[string]interface{}, groupName string) (assertsapi.PrometheusRuleDto, error) {
+	// Validate record/alert fields
+	record, hasRecord := ruleMap["record"].(string)
+	alert, hasAlert := ruleMap["alert"].(string)
+
+	if (hasRecord && record != "") && (hasAlert && alert != "") {
+		return assertsapi.PrometheusRuleDto{}, fmt.Errorf("rule in group '%s' cannot have both 'record' and 'alert' specified", groupName)
+	}
+	if (!hasRecord || record == "") && (!hasAlert || alert == "") {
+		return assertsapi.PrometheusRuleDto{}, fmt.Errorf("rule in group '%s' must have either 'record' or 'alert' specified", groupName)
+	}
+
+	expr := ruleMap["expr"].(string)
+	if expr == "" {
+		return assertsapi.PrometheusRuleDto{}, fmt.Errorf("rule in group '%s' must have 'expr' specified", groupName)
+	}
+
+	rule := assertsapi.PrometheusRuleDto{
+		Expr: &expr,
+	}
+
+	if hasRecord && record != "" {
+		rule.Record = &record
+	}
+
+	if hasAlert && alert != "" {
+		rule.Alert = &alert
+	}
+
+	// Optional fields
+	if duration, ok := ruleMap["duration"].(string); ok && duration != "" {
+		rule.For = &duration
+	}
+
+	// Don't send rule-level active - it's not persisted by the API yet
+	// Only file-level active is supported
+	// if activeVal, ok := ruleMap["active"].(bool); ok && !activeVal {
+	// 	rule.Active = &activeVal
+	// }
+
+	// Labels
+	if labelsData, ok := ruleMap["labels"].(map[string]interface{}); ok && len(labelsData) > 0 {
+		labels := make(map[string]string)
+		for k, v := range labelsData {
+			labels[k] = v.(string)
+		}
+		rule.Labels = labels
+	}
+
+	// Annotations
+	if annotationsData, ok := ruleMap["annotations"].(map[string]interface{}); ok && len(annotationsData) > 0 {
+		annotations := make(map[string]string)
+		for k, v := range annotationsData {
+			annotations[k] = v.(string)
+		}
+		rule.Annotations = annotations
+	}
+
+	// Disable in groups
+	if disableInGroupsData, ok := ruleMap["disable_in_groups"].(*schema.Set); ok && disableInGroupsData.Len() > 0 {
+		disableInGroups := make([]string, 0, disableInGroupsData.Len())
+		for _, item := range disableInGroupsData.List() {
+			disableInGroups = append(disableInGroups, item.(string))
+		}
+		rule.DisableInGroups = disableInGroups
+	}
+
+	return rule, nil
+}
+
+// flattenRuleGroups converts PrometheusRuleGroupDto slice into Terraform schema data
+func flattenRuleGroups(groups []assertsapi.PrometheusRuleGroupDto) ([]interface{}, error) {
+	result := make([]interface{}, 0, len(groups))
+
+	for _, group := range groups {
+		groupMap := make(map[string]interface{})
+
+		if group.Name != nil {
+			groupMap["name"] = *group.Name
+		}
+
+		if group.Interval != nil {
+			groupMap["interval"] = *group.Interval
+		}
+
+		// Flatten rules
+		rules := make([]interface{}, 0, len(group.Rules))
+		for _, rule := range group.Rules {
+			ruleMap := make(map[string]interface{})
+
+			if rule.Record != nil {
+				ruleMap["record"] = *rule.Record
+			}
+
+			if rule.Alert != nil {
+				ruleMap["alert"] = *rule.Alert
+			}
+
+			if rule.Expr != nil {
+				ruleMap["expr"] = *rule.Expr
+			}
+
+			if rule.For != nil {
+				ruleMap["duration"] = *rule.For
+			}
+
+			// Only set collections if they have values - don't add empty ones
+			if len(rule.Labels) > 0 {
+				ruleMap["labels"] = rule.Labels
+			}
+
+			if len(rule.Annotations) > 0 {
+				ruleMap["annotations"] = rule.Annotations
+			}
+
+			if len(rule.DisableInGroups) > 0 {
+				ruleMap["disable_in_groups"] = rule.DisableInGroups
+			}
+
+			rules = append(rules, ruleMap)
+		}
+
+		groupMap["rule"] = rules
+		result = append(result, groupMap)
+	}
+
+	return result, nil
+}
diff --git a/internal/resources/asserts/resource_prom_rules_test.go b/internal/resources/asserts/resource_prom_rules_test.go
new file mode 100644
index 000000000..be27d0f27
--- /dev/null
+++ b/internal/resources/asserts/resource_prom_rules_test.go
@@ -0,0 +1,508 @@
+package asserts_test
+
+import (
+	"context"
+	"fmt"
+	"strings"
+	"testing"
+	"time"
+
+	"github.com/grafana/terraform-provider-grafana/v4/internal/common"
+	"github.com/grafana/terraform-provider-grafana/v4/internal/testutils"
+	"github.com/hashicorp/terraform-plugin-sdk/v2/helper/acctest"
+	"github.com/hashicorp/terraform-plugin-sdk/v2/helper/resource"
+	"github.com/hashicorp/terraform-plugin-sdk/v2/terraform"
+)
+
+// cleanupDanglingPromRules removes any test prom rules that may have been left behind
+// from previous test runs to avoid conflicts and ensure clean test state.
+// Note: This function includes longer wait times due to backend JPA/Hibernate caching issues
+// where deleted entities can remain visible in the cache for several seconds.
+func cleanupDanglingPromRules(t *testing.T) {
+	client := testutils.Provider.Meta().(*common.Client).AssertsAPIClient
+	ctx := context.Background()
+	stackID := fmt.Sprintf("%d", testutils.Provider.Meta().(*common.Client).GrafanaStackID)
+
+	t.Log("Cleaning up dangling prom rules from previous test runs...")
+
+	// List all prom rules
+	listReq := client.PromRulesConfigControllerAPI.ListPromRules(ctx).
+		XScopeOrgID(stackID)
+
+	namesDto, _, err := listReq.Execute()
+	if err != nil {
+		t.Logf("Warning: could not list prom rules for cleanup: %v", err)
+		return
+	}
+
+	// Delete any test rules (prefixed with test- or stress-test-)
+	deletedCount := 0
+	for _, name := range namesDto.RuleNames {
+		if strings.HasPrefix(name, "test-") || strings.HasPrefix(name, "stress-test-") {
+			t.Logf("Deleting dangling rule: %s", name)
+
+			_, err := client.PromRulesConfigControllerAPI.DeletePromRules(ctx, name).
+				XScopeOrgID(stackID).Execute()
+			if err != nil {
+				t.Logf("Warning: failed to delete %s: %v", name, err)
+			} else {
+				deletedCount++
+			}
+		}
+	}
+
+	if deletedCount > 0 {
+		// Wait longer due to backend JPA/Hibernate caching issues
+		// The JpaKeyValueStore.delete() doesn't flush the EntityManager or clear caches
+		t.Logf("Deleted %d dangling rules, waiting 10s for backend cache to clear...", deletedCount)
+		time.Sleep(10 * time.Second)
+	} else {
+		t.Log("No dangling rules found")
+	}
+}
+
+func TestAccAssertsPromRules_basic(t *testing.T) {
+	testutils.CheckCloudInstanceTestsEnabled(t)
+	cleanupDanglingPromRules(t)
+
+	stackID := getTestStackID(t)
+	rName := fmt.Sprintf("test-acc-%s", acctest.RandString(8))
+
+	resource.ParallelTest(t, resource.TestCase{
+		ProtoV5ProviderFactories: testutils.ProtoV5ProviderFactories,
+		CheckDestroy:             testAccAssertsPromRulesCheckDestroy,
+		Steps: []resource.TestStep{
+			{
+				Config: testAccAssertsPromRulesConfig(stackID, rName),
+				Check: resource.ComposeTestCheckFunc(
+					testAccAssertsPromRulesCheckExists("grafana_asserts_prom_rule_file.test", stackID, rName),
+					resource.TestCheckResourceAttr("grafana_asserts_prom_rule_file.test", "name", rName),
+					resource.TestCheckResourceAttr("grafana_asserts_prom_rule_file.test", "group.#", "1"),
+					resource.TestCheckResourceAttr("grafana_asserts_prom_rule_file.test", "group.0.name", "test_rules"),
+					resource.TestCheckResourceAttr("grafana_asserts_prom_rule_file.test", "group.0.rule.#", "1"),
+					resource.TestCheckResourceAttr("grafana_asserts_prom_rule_file.test", "group.0.rule.0.record", "custom:test:metric"),
+					testutils.CheckLister("grafana_asserts_prom_rule_file.test"),
+				),
+			},
+			{
+				// Test import
+				ResourceName:      "grafana_asserts_prom_rule_file.test",
+				ImportState:       true,
+				ImportStateVerify: true,
+				// Ignore active field - API may not return it if it's the default (true)
+				ImportStateVerifyIgnore: []string{"active"},
+			},
+			{
+				// Test update
+				Config: testAccAssertsPromRulesConfigUpdated(stackID, rName),
+				Check: resource.ComposeTestCheckFunc(
+					testAccAssertsPromRulesCheckExists("grafana_asserts_prom_rule_file.test", stackID, rName),
+					resource.TestCheckResourceAttr("grafana_asserts_prom_rule_file.test", "name", rName),
+					resource.TestCheckResourceAttr("grafana_asserts_prom_rule_file.test", "group.#", "2"),
+					resource.TestCheckResourceAttr("grafana_asserts_prom_rule_file.test", "group.0.name", "test_rules"),
+					resource.TestCheckResourceAttr("grafana_asserts_prom_rule_file.test", "group.1.name", "additional_rules"),
+				),
+			},
+		},
+	})
+}
+
+func TestAccAssertsPromRules_recordingRule(t *testing.T) {
+	testutils.CheckCloudInstanceTestsEnabled(t)
+	cleanupDanglingPromRules(t)
+
+	stackID := getTestStackID(t)
+	rName := fmt.Sprintf("test-recording-%s", acctest.RandString(8))
+
+	resource.ParallelTest(t, resource.TestCase{
+		ProtoV5ProviderFactories: testutils.ProtoV5ProviderFactories,
+		CheckDestroy:             testAccAssertsPromRulesCheckDestroy,
+		Steps: []resource.TestStep{
+			{
+				Config: testAccAssertsPromRulesRecordingConfig(stackID, rName),
+				Check: resource.ComposeTestCheckFunc(
+					testAccAssertsPromRulesCheckExists("grafana_asserts_prom_rule_file.test", stackID, rName),
+					resource.TestCheckResourceAttr("grafana_asserts_prom_rule_file.test", "name", rName),
+					resource.TestCheckResourceAttr("grafana_asserts_prom_rule_file.test", "group.0.rule.0.record", "custom:requests:rate"),
+					resource.TestCheckResourceAttr("grafana_asserts_prom_rule_file.test", "group.0.rule.0.labels.source", "custom"),
+					resource.TestCheckResourceAttr("grafana_asserts_prom_rule_file.test", "group.0.rule.0.labels.severity", "info"),
+				),
+			},
+		},
+	})
+}
+
+func TestAccAssertsPromRules_alertingRule(t *testing.T) {
+	testutils.CheckCloudInstanceTestsEnabled(t)
+	cleanupDanglingPromRules(t)
+
+	stackID := getTestStackID(t)
+	rName := fmt.Sprintf("test-alerting-%s", acctest.RandString(8))
+
+	resource.ParallelTest(t, resource.TestCase{
+		ProtoV5ProviderFactories: testutils.ProtoV5ProviderFactories,
+		CheckDestroy:             testAccAssertsPromRulesCheckDestroy,
+		Steps: []resource.TestStep{
+			{
+				Config: testAccAssertsPromRulesAlertingConfig(stackID, rName),
+				Check: resource.ComposeTestCheckFunc(
+					testAccAssertsPromRulesCheckExists("grafana_asserts_prom_rule_file.test", stackID, rName),
+					resource.TestCheckResourceAttr("grafana_asserts_prom_rule_file.test", "name", rName),
+					resource.TestCheckResourceAttr("grafana_asserts_prom_rule_file.test", "group.0.rule.0.alert", "TestAlert"),
+					resource.TestCheckResourceAttr("grafana_asserts_prom_rule_file.test", "group.0.rule.0.expr", "up == 0"),
+					resource.TestCheckResourceAttr("grafana_asserts_prom_rule_file.test", "group.0.rule.0.duration", "1m"),
+					resource.TestCheckResourceAttr("grafana_asserts_prom_rule_file.test", "group.0.rule.0.labels.asserts_alert_category", "error"),
+					resource.TestCheckResourceAttr("grafana_asserts_prom_rule_file.test", "group.0.rule.0.labels.asserts_severity", "warning"),
+					resource.TestCheckResourceAttr("grafana_asserts_prom_rule_file.test", "group.0.rule.0.annotations.summary", "Instance is down"),
+				),
+			},
+		},
+	})
+}
+
+func TestAccAssertsPromRules_multipleGroups(t *testing.T) {
+	testutils.CheckCloudInstanceTestsEnabled(t)
+	cleanupDanglingPromRules(t)
+
+	stackID := getTestStackID(t)
+	rName := fmt.Sprintf("test-multi-%s", acctest.RandString(8))
+
+	resource.ParallelTest(t, resource.TestCase{
+		ProtoV5ProviderFactories: testutils.ProtoV5ProviderFactories,
+		CheckDestroy:             testAccAssertsPromRulesCheckDestroy,
+		Steps: []resource.TestStep{
+			{
+				Config: testAccAssertsPromRulesMultiGroupConfig(stackID, rName),
+				Check: resource.ComposeTestCheckFunc(
+					testAccAssertsPromRulesCheckExists("grafana_asserts_prom_rule_file.test", stackID, rName),
+					resource.TestCheckResourceAttr("grafana_asserts_prom_rule_file.test", "group.#", "3"),
+					resource.TestCheckResourceAttr("grafana_asserts_prom_rule_file.test", "group.0.name", "latency_rules"),
+					resource.TestCheckResourceAttr("grafana_asserts_prom_rule_file.test", "group.1.name", "error_rules"),
+					resource.TestCheckResourceAttr("grafana_asserts_prom_rule_file.test", "group.2.name", "throughput_rules"),
+				),
+			},
+		},
+	})
+}
+
+func TestAccAssertsPromRules_inactive(t *testing.T) {
+	testutils.CheckCloudInstanceTestsEnabled(t)
+	cleanupDanglingPromRules(t)
+
+	stackID := getTestStackID(t)
+	rName := fmt.Sprintf("test-inactive-%s", acctest.RandString(8))
+
+	resource.ParallelTest(t, resource.TestCase{
+		ProtoV5ProviderFactories: testutils.ProtoV5ProviderFactories,
+		CheckDestroy:             testAccAssertsPromRulesCheckDestroy,
+		Steps: []resource.TestStep{
+			{
+				Config: testAccAssertsPromRulesInactiveConfig(stackID, rName),
+				Check: resource.ComposeTestCheckFunc(
+					testAccAssertsPromRulesCheckExists("grafana_asserts_prom_rule_file.test", stackID, rName),
+					resource.TestCheckResourceAttr("grafana_asserts_prom_rule_file.test", "active", "false"),
+				),
+			},
+		},
+	})
+}
+
+func TestAccAssertsPromRules_eventualConsistencyStress(t *testing.T) {
+	testutils.CheckCloudInstanceTestsEnabled(t)
+	testutils.CheckStressTestsEnabled(t)
+	cleanupDanglingPromRules(t)
+
+	stackID := getTestStackID(t)
+	baseName := fmt.Sprintf("stress-test-%s", acctest.RandString(8))
+
+	resource.ParallelTest(t, resource.TestCase{
+		ProtoV5ProviderFactories: testutils.ProtoV5ProviderFactories,
+		CheckDestroy:             testAccAssertsPromRulesCheckDestroy,
+		Steps: []resource.TestStep{
+			{
+				Config: testAccAssertsPromRulesStressConfig(stackID, baseName),
+				Check: resource.ComposeTestCheckFunc(
+					// Check that all resources were created successfully
+					testAccAssertsPromRulesCheckExists("grafana_asserts_prom_rule_file.test1", stackID, baseName+"-1"),
+					testAccAssertsPromRulesCheckExists("grafana_asserts_prom_rule_file.test2", stackID, baseName+"-2"),
+					testAccAssertsPromRulesCheckExists("grafana_asserts_prom_rule_file.test3", stackID, baseName+"-3"),
+					resource.TestCheckResourceAttr("grafana_asserts_prom_rule_file.test1", "name", baseName+"-1"),
+					resource.TestCheckResourceAttr("grafana_asserts_prom_rule_file.test2", "name", baseName+"-2"),
+					resource.TestCheckResourceAttr("grafana_asserts_prom_rule_file.test3", "name", baseName+"-3"),
+				),
+			},
+		},
+	})
+}
+
+func testAccAssertsPromRulesCheckExists(rn string, stackID int64, name string) resource.TestCheckFunc {
+	return func(s *terraform.State) error {
+		rs, ok := s.RootModule().Resources[rn]
+		if !ok {
+			return fmt.Errorf("resource not found: %s\n %#v", rn, s.RootModule().Resources)
+		}
+
+		if rs.Primary.ID == "" {
+			return fmt.Errorf("resource id not set")
+		}
+
+		client := testutils.Provider.Meta().(*common.Client).AssertsAPIClient
+		ctx := context.Background()
+
+		// Get specific rules file
+		request := client.PromRulesConfigControllerAPI.GetPromRules(ctx, name).
+			XScopeOrgID(fmt.Sprintf("%d", stackID))
+
+		_, resp, err := request.Execute()
+		if err != nil {
+			if resp != nil && resp.StatusCode == 404 {
+				return fmt.Errorf("Prometheus rules file %s not found", name)
+			}
+			return fmt.Errorf("error getting Prometheus rules file: %s", err)
+		}
+
+		return nil
+	}
+}
+
+func testAccAssertsPromRulesCheckDestroy(s *terraform.State) error {
+	client := testutils.Provider.Meta().(*common.Client).AssertsAPIClient
+	ctx := context.Background()
+
+	// Increased timeout to 180s (3 minutes) due to backend JPA/Hibernate caching issues
+	// The JpaKeyValueStore.delete() doesn't flush the EntityManager, so deleted entities
+	// can remain visible in the cache for an extended period
+	deadline := time.Now().Add(180 * time.Second)
+
+	for _, rs := range s.RootModule().Resources {
+		if rs.Type != "grafana_asserts_prom_rule_file" {
+			continue
+		}
+
+		// Resource ID is just the name now
+		name := rs.Primary.ID
+		stackID := fmt.Sprintf("%d", testutils.Provider.Meta().(*common.Client).GrafanaStackID)
+
+		for {
+			// Try to get the rules file
+			request := client.PromRulesConfigControllerAPI.GetPromRules(ctx, name).
+				XScopeOrgID(stackID)
+
+			_, resp, err := request.Execute()
+			if err != nil {
+				// If 404, resource is deleted - that's what we want
+				if resp != nil && resp.StatusCode == 404 {
+					break
+				}
+				// If we can't get it for other reasons, assume it's deleted
+				if common.IsNotFoundError(err) {
+					break
+				}
+				return fmt.Errorf("error checking Prometheus rules file destruction: %s", err)
+			}
+
+			// Resource still exists
+			if time.Now().After(deadline) {
+				return fmt.Errorf("Prometheus rules file %s still exists after 180s (likely backend JPA cache issue)", name)
+			}
+
+			// Use longer sleep interval due to caching delays
+			time.Sleep(5 * time.Second)
+		}
+	}
+
+	return nil
+}
+
+func testAccAssertsPromRulesConfig(stackID int64, name string) string {
+	return fmt.Sprintf(`
+resource "grafana_asserts_prom_rule_file" "test" {
+  name = "%s"
+
+  group {
+    name = "test_rules"
+
+    rule {
+      record = "custom:test:metric"
+      expr   = "up"
+    }
+  }
+}
+`, name)
+}
+
+func testAccAssertsPromRulesConfigUpdated(stackID int64, name string) string {
+	return fmt.Sprintf(`
+resource "grafana_asserts_prom_rule_file" "test" {
+  name = "%s"
+
+  group {
+    name = "test_rules"
+
+    rule {
+      record = "custom:test:metric:v2"
+      expr   = "up"
+    }
+
+    rule {
+      record = "custom:new:metric"
+      expr   = "up"
+    }
+  }
+
+  group {
+    name = "additional_rules"
+
+    rule {
+      record = "custom:another:metric"
+      expr   = "up"
+    }
+  }
+}
+`, name)
+}
+
+func testAccAssertsPromRulesRecordingConfig(stackID int64, name string) string {
+	return fmt.Sprintf(`
+resource "grafana_asserts_prom_rule_file" "test" {
+  name = "%s"
+
+  group {
+    name = "recording_rules"
+
+    rule {
+      record = "custom:requests:rate"
+      expr   = "up"
+      labels = {
+        source   = "custom"
+        severity = "info"
+      }
+    }
+  }
+}
+`, name)
+}
+
+func testAccAssertsPromRulesAlertingConfig(stackID int64, name string) string {
+	return fmt.Sprintf(`
+resource "grafana_asserts_prom_rule_file" "test" {
+  name = "%s"
+
+  group {
+    name = "alerting_rules"
+
+    rule {
+      alert    = "TestAlert"
+      expr     = "up == 0"
+      duration = "1m"
+      labels = {
+        asserts_alert_category = "error"
+        asserts_severity       = "warning"
+      }
+      annotations = {
+        summary = "Instance is down"
+      }
+    }
+  }
+}
+`, name)
+}
+
+func testAccAssertsPromRulesMultiGroupConfig(stackID int64, name string) string {
+	return fmt.Sprintf(`
+resource "grafana_asserts_prom_rule_file" "test" {
+  name = "%s"
+
+  group {
+    name = "latency_rules"
+
+    rule {
+      record = "custom:latency:p95"
+      expr   = "up"
+    }
+  }
+
+  group {
+    name = "error_rules"
+
+    rule {
+      record = "custom:error:rate"
+      expr   = "up"
+    }
+  }
+
+  group {
+    name = "throughput_rules"
+
+    rule {
+      record = "custom:throughput:total"
+      expr   = "up"
+    }
+  }
+}
+`, name)
+}
+
+func testAccAssertsPromRulesInactiveConfig(stackID int64, name string) string {
+	return fmt.Sprintf(`
+resource "grafana_asserts_prom_rule_file" "test" {
+  name   = "%s"
+  active = false
+
+  group {
+    name = "inactive_rules"
+
+    rule {
+      record = "custom:test:metric"
+      expr   = "up"
+    }
+  }
+}
+`, name)
+}
+
+func testAccAssertsPromRulesStressConfig(stackID int64, baseName string) string {
+	return fmt.Sprintf(`
+resource "grafana_asserts_prom_rule_file" "test1" {
+  name   = "%s-1"
+  active = true
+
+  group {
+    name = "stress_test_group_1"
+
+    rule {
+      record = "stress:test:metric1"
+      expr   = "up"
+    }
+  }
+}
+
+resource "grafana_asserts_prom_rule_file" "test2" {
+  name   = "%s-2"
+  active = true
+
+  group {
+    name = "stress_test_group_2"
+
+    rule {
+      record = "stress:test:metric2"
+      expr   = "up"
+    }
+  }
+}
+
+resource "grafana_asserts_prom_rule_file" "test3" {
+  name   = "%s-3"
+  active = true
+
+  group {
+    name = "stress_test_group_3"
+
+    rule {
+      record = "stress:test:metric3"
+      expr   = "up"
+    }
+  }
+}
+`, baseName, baseName, baseName)
+}
diff --git a/internal/resources/asserts/resources.go b/internal/resources/asserts/resources.go
index 36da880be..a219614cd 100644
--- a/internal/resources/asserts/resources.go
+++ b/internal/resources/asserts/resources.go
@@ -11,6 +11,7 @@ var Resources = []*common.Resource{
 	makeResourceDisabledAlertConfig(),
 	makeResourceCustomModelRules(),
 	makeResourceLogConfig(),
+	makeResourcePromRules(),
 	makeResourceThresholds(),
 }