diff --git a/site/src/api/queries/buildInfo.ts b/site/src/api/queries/buildInfo.ts
index b42ff410dfc0d..a632a3a152845 100644
--- a/site/src/api/queries/buildInfo.ts
+++ b/site/src/api/queries/buildInfo.ts
@@ -3,7 +3,7 @@ import type { BuildInfoResponse } from "#/api/typesGenerated";
 import type { MetadataState } from "#/hooks/useEmbeddedMetadata";
 import { cachedQuery } from "./util";
 
-const buildInfoKey = ["buildInfo"] as const;
+export const buildInfoKey = ["buildInfo"];
 
 export const buildInfo = (metadata: MetadataState<BuildInfoResponse>) => {
 	// The version of the app can't change without reloading the page.
diff --git a/site/src/api/queries/deployment.ts b/site/src/api/queries/deployment.ts
index e17f2c6b0878e..bf45559032fce 100644
--- a/site/src/api/queries/deployment.ts
+++ b/site/src/api/queries/deployment.ts
@@ -18,9 +18,11 @@ export const deploymentDAUs = () => {
 	};
 };
 
+export const deploymentStatsQueryKey = ["deployment", "stats"];
+
 export const deploymentStats = () => {
 	return {
-		queryKey: ["deployment", "stats"],
+		queryKey: deploymentStatsQueryKey,
 		queryFn: API.getDeploymentStats,
 	};
 };
diff --git a/site/src/api/queries/updateCheck.ts b/site/src/api/queries/updateCheck.ts
index b0724d9a1e8be..9d613a751e42a 100644
--- a/site/src/api/queries/updateCheck.ts
+++ b/site/src/api/queries/updateCheck.ts
@@ -1,8 +1,10 @@
 import { API } from "#/api/api";
 
+export const updateCheckQueryKey = ["updateCheck"];
+
 export const updateCheck = () => {
 	return {
-		queryKey: ["updateCheck"],
+		queryKey: updateCheckQueryKey,
 		queryFn: () => API.getUpdateCheck(),
 	};
 };
diff --git a/site/src/modules/dashboard/DashboardLayout.stories.tsx b/site/src/modules/dashboard/DashboardLayout.stories.tsx
new file mode 100644
index 0000000000000..c8e290e4b0319
--- /dev/null
+++ b/site/src/modules/dashboard/DashboardLayout.stories.tsx
@@ -0,0 +1,125 @@
+import type { Meta, StoryObj } from "@storybook/react-vite";
+import { expect, screen, userEvent, within } from "storybook/test";
+import {
+	reactRouterOutlet,
+	reactRouterParameters,
+} from "storybook-addon-remix-react-router";
+import { buildInfoKey } from "#/api/queries/buildInfo";
+import { deploymentStatsQueryKey } from "#/api/queries/deployment";
+import { updateCheckQueryKey } from "#/api/queries/updateCheck";
+import type { UpdateCheckResponse } from "#/api/typesGenerated";
+import {
+	MockBuildInfo,
+	MockDeploymentStats,
+	MockNoPermissions,
+	MockPermissions,
+	MockUpdateCheck,
+	MockUserMember,
+	MockUserOwner,
+} from "#/testHelpers/entities";
+import { pixelWithTablet } from "#/testHelpers/pixel";
+import {
+	withAuthProvider,
+	withDashboardProvider,
+	withProxyProvider,
+} from "#/testHelpers/storybook";
+import { DashboardFullPage, DashboardLayout } from "./DashboardLayout";
+
+const outdatedUpdateCheck: UpdateCheckResponse = {
+	...MockUpdateCheck,
+	current: false,
+	version: "v0.12.9",
+	url: "https://github.com/coder/coder/releases/tag/v0.12.9",
+};
+
+const pageContent = (
+	<DashboardFullPage className="p-6">
+		<h1>Workspaces</h1>
+		<p>Page content rendered in the dashboard outlet.</p>
+	</DashboardFullPage>
+);
+
+const meta: Meta<typeof DashboardLayout> = {
+	title: "modules/dashboard/DashboardLayout",
+	component: DashboardLayout,
+	decorators: [withAuthProvider, withDashboardProvider, withProxyProvider()],
+	parameters: {
+		layout: "fullscreen",
+		pixel: { matrix: pixelWithTablet },
+		user: MockUserOwner,
+		permissions: MockPermissions,
+		reactRouter: reactRouterParameters({
+			location: { path: "/" },
+			routing: reactRouterOutlet({ path: "/" }, pageContent),
+		}),
+		queries: [
+			{ key: buildInfoKey, data: MockBuildInfo },
+			{ key: updateCheckQueryKey, data: MockUpdateCheck },
+			{ key: deploymentStatsQueryKey, data: MockDeploymentStats },
+		],
+	},
+};
+
+export default meta;
+type Story = StoryObj<typeof DashboardLayout>;
+
+export const Default: Story = {
+	play: async ({ canvasElement }) => {
+		const canvas = within(canvasElement);
+		await expect(
+			canvas.getByRole("heading", { name: "Workspaces" }),
+		).toBeVisible();
+		await expect(
+			canvas.getByRole("link", { name: "Skip to main content" }),
+		).toBeInTheDocument();
+	},
+};
+
+export const ForMember: Story = {
+	parameters: {
+		user: MockUserMember,
+		permissions: MockNoPermissions,
+	},
+	play: async ({ canvasElement }) => {
+		const canvas = within(canvasElement);
+		await expect(
+			canvas.getByRole("heading", { name: "Workspaces" }),
+		).toBeVisible();
+		await expect(
+			screen.queryByTestId("update-check-notice"),
+		).not.toBeInTheDocument();
+	},
+};
+
+export const UpdateAvailable: Story = {
+	parameters: {
+		queries: [
+			{ key: buildInfoKey, data: MockBuildInfo },
+			{ key: updateCheckQueryKey, data: outdatedUpdateCheck },
+			{ key: deploymentStatsQueryKey, data: MockDeploymentStats },
+		],
+	},
+	beforeEach: () => {
+		localStorage.removeItem("dismissedVersion");
+	},
+	play: async () => {
+		const notice = await screen.findByTestId("update-check-notice");
+		await expect(notice).toBeVisible();
+		await expect(
+			screen.getByText(/Coder v0\.12\.9 is now available/),
+		).toBeVisible();
+	},
+};
+
+export const SkipToMainContent: Story = {
+	play: async ({ canvasElement }) => {
+		const canvas = within(canvasElement);
+		const skipLink = canvas.getByRole("link", {
+			name: "Skip to main content",
+		});
+		const main = canvas.getByRole("main");
+
+		await userEvent.click(skipLink);
+		await expect(main).toHaveFocus();
+	},
+};
diff --git a/site/src/modules/dashboard/DashboardLayout.test.tsx b/site/src/modules/dashboard/DashboardLayout.test.tsx
index 5b55f342cb2ab..3147514586076 100644
--- a/site/src/modules/dashboard/DashboardLayout.test.tsx
+++ b/site/src/modules/dashboard/DashboardLayout.test.tsx
@@ -68,7 +68,7 @@ test("Show the new Coder version notification", async () => {
 	renderWithAuth(<DashboardLayout />, {
 		children: [{ element: <h1>Test page</h1> }],
 	});
-	await screen.findByTestId("update-check-snackbar");
+	await screen.findByTestId("update-check-notice");
 });
 
 test("hides AI Governance seat warnings for non-admin users", async () => {
diff --git a/site/src/modules/dashboard/DashboardLayout.tsx b/site/src/modules/dashboard/DashboardLayout.tsx
index 9bc970f53d987..fe2229fe731e2 100644
--- a/site/src/modules/dashboard/DashboardLayout.tsx
+++ b/site/src/modules/dashboard/DashboardLayout.tsx
@@ -1,17 +1,13 @@
-import Link from "@mui/material/Link";
-import Snackbar from "@mui/material/Snackbar";
-import { InfoIcon } from "lucide-react";
 import { type FC, type HTMLAttributes, Suspense } from "react";
 import { Outlet } from "react-router";
-import { Button } from "#/components/Button/Button";
 import { Loader } from "#/components/Loader/Loader";
 import { useAuthenticated } from "#/hooks/useAuthenticated";
 import { AnnouncementBanners } from "#/modules/dashboard/AnnouncementBanners/AnnouncementBanners";
 import { LicenseBanner } from "#/modules/dashboard/LicenseBanner/LicenseBanner";
 import { cn } from "#/utils/cn";
-import { docs } from "#/utils/docs";
 import { DeploymentBanner } from "./DeploymentBanner/DeploymentBanner";
 import { Navbar } from "./Navbar/Navbar";
+import { UpdateCheckNotice } from "./UpdateCheckNotice/UpdateCheckNotice";
 import { useUpdateCheck } from "./useUpdateCheck";
 
 export const DashboardLayout: FC = () => {
@@ -54,56 +50,14 @@ export const DashboardLayout: FC = () => {
 
 				<DeploymentBanner />
 
-				<Snackbar
-					data-testid="update-check-snackbar"
-					open={updateCheck.isVisible}
-					anchorOrigin={{
-						vertical: "bottom",
-						horizontal: "right",
-					}}
-					ContentProps={{
-						sx: (theme) => ({
-							background: theme.palette.background.paper,
-							color: theme.palette.text.primary,
-							maxWidth: 440,
-							flexDirection: "row",
-							borderColor: theme.palette.info.light,
-
-							"& .MuiSnackbarContent-message": {
-								flex: 1,
-							},
-
-							"& .MuiSnackbarContent-action": {
-								marginRight: 0,
-							},
-						}),
-					}}
-					message={
-						<div className="flex gap-4">
-							<InfoIcon
-								className="size-icon-xs"
-								css={(theme) => ({
-									fontSize: 16,
-									height: 20, // 20 is the height of the text line so we can align them
-									color: theme.palette.info.light,
-								})}
-							/>
-							<p>
-								Coder {updateCheck.data?.version} is now available. View the{" "}
-								<Link href={updateCheck.data?.url}>release notes</Link> and{" "}
-								<Link href={docs("/install/upgrade")}>
-									upgrade instructions
-								</Link>{" "}
-								for more information.
-							</p>
-						</div>
-					}
-					action={
-						<Button variant="subtle" size="sm" onClick={updateCheck.dismiss}>
-							Dismiss
-						</Button>
-					}
-				/>
+				{updateCheck.isVisible && updateCheck.data && (
+					<UpdateCheckNotice
+						version={updateCheck.data.version}
+						releaseNotesUrl={updateCheck.data.url}
+						onDismiss={updateCheck.dismiss}
+						aboveDeploymentBanner={Boolean(permissions.viewDeploymentStats)}
+					/>
+				)}
 			</div>
 		</>
 	);
diff --git a/site/src/modules/dashboard/UpdateCheckNotice/UpdateCheckNotice.stories.tsx b/site/src/modules/dashboard/UpdateCheckNotice/UpdateCheckNotice.stories.tsx
new file mode 100644
index 0000000000000..45d0786f64a8a
--- /dev/null
+++ b/site/src/modules/dashboard/UpdateCheckNotice/UpdateCheckNotice.stories.tsx
@@ -0,0 +1,47 @@
+import type { Meta, StoryObj } from "@storybook/react-vite";
+import { expect, fn, userEvent, within } from "storybook/test";
+import { UpdateCheckNotice } from "./UpdateCheckNotice";
+
+const meta: Meta<typeof UpdateCheckNotice> = {
+	title: "modules/dashboard/UpdateCheckNotice",
+	component: UpdateCheckNotice,
+	args: {
+		version: "v0.12.9",
+		releaseNotesUrl: "https://github.com/coder/coder/releases/tag/v0.12.9",
+		onDismiss: fn(),
+		aboveDeploymentBanner: true,
+	},
+	parameters: {
+		layout: "fullscreen",
+	},
+};
+
+export default meta;
+type Story = StoryObj<typeof UpdateCheckNotice>;
+
+export const AboveDeploymentBanner: Story = {
+	play: async ({ canvasElement, args }) => {
+		const canvas = within(canvasElement);
+		await expect(
+			canvas.getByText(/Coder v0\.12\.9 is now available/),
+		).toBeVisible();
+		await expect(
+			canvas.getByRole("link", { name: "release notes" }),
+		).toHaveAttribute(
+			"href",
+			"https://github.com/coder/coder/releases/tag/v0.12.9",
+		);
+		await expect(
+			canvas.getByRole("link", { name: "upgrade instructions" }),
+		).toBeVisible();
+
+		await userEvent.click(canvas.getByRole("button", { name: "Dismiss" }));
+		await expect(args.onDismiss).toHaveBeenCalled();
+	},
+};
+
+export const WithoutDeploymentBanner: Story = {
+	args: {
+		aboveDeploymentBanner: false,
+	},
+};
diff --git a/site/src/modules/dashboard/UpdateCheckNotice/UpdateCheckNotice.tsx b/site/src/modules/dashboard/UpdateCheckNotice/UpdateCheckNotice.tsx
new file mode 100644
index 0000000000000..72b8cbf999c07
--- /dev/null
+++ b/site/src/modules/dashboard/UpdateCheckNotice/UpdateCheckNotice.tsx
@@ -0,0 +1,66 @@
+import { InfoIcon, XIcon } from "lucide-react";
+import type { FC } from "react";
+import { Button } from "#/components/Button/Button";
+import { cn } from "#/utils/cn";
+import { docs } from "#/utils/docs";
+
+type UpdateCheckNoticeProps = {
+	version: string;
+	releaseNotesUrl: string;
+	onDismiss: () => void;
+	aboveDeploymentBanner?: boolean;
+};
+
+export const UpdateCheckNotice: FC<UpdateCheckNoticeProps> = ({
+	version,
+	releaseNotesUrl,
+	onDismiss,
+	aboveDeploymentBanner = false,
+}) => {
+	return (
+		<div
+			data-testid="update-check-notice"
+			role="status"
+			className={cn(
+				"fixed right-6 z-50 flex max-w-[420px] items-start gap-4 rounded border border-solid border-highlight-sky bg-surface-primary p-4 text-sm text-content-primary shadow",
+				// 60px keeps a 24px gap above the 36px deployment banner.
+				aboveDeploymentBanner ? "bottom-[60px]" : "bottom-6",
+			)}
+		>
+			<InfoIcon className="mt-0.5 size-icon-sm shrink-0 text-highlight-sky" />
+			<div className="flex flex-col gap-1">
+				<p className="m-0 font-semibold">Coder {version} is now available. </p>
+				<p className="m-0 flex-1 leading-5">
+					View the{" "}
+					<a
+						href={releaseNotesUrl}
+						target="_blank"
+						rel="noreferrer"
+						className="text-content-link underline hover:no-underline"
+					>
+						release notes
+					</a>{" "}
+					and{" "}
+					<a
+						href={docs("/install/upgrade")}
+						target="_blank"
+						rel="noreferrer"
+						className="text-content-link underline hover:no-underline"
+					>
+						upgrade instructions
+					</a>{" "}
+					for more information.
+				</p>
+			</div>
+			<Button
+				aria-label="Dismiss"
+				size="icon"
+				variant="subtle"
+				onClick={onDismiss}
+				className="-m-2"
+			>
+				<XIcon />
+			</Button>
+		</div>
+	);
+};