diff --git a/app/assets/javascripts/blob/blob_line_permalink_updater.js b/app/assets/javascripts/blob/blob_line_permalink_updater.js
index 928035d7c1ef7e53c9070707063963564d2fc167..62d9da528f4cff392a1bf986eeec95b1ae71d71a 100644
--- a/app/assets/javascripts/blob/blob_line_permalink_updater.js
+++ b/app/assets/javascripts/blob/blob_line_permalink_updater.js
@@ -1,4 +1,4 @@
-import { getLocationHash } from '../lib/utils/url_utility';
+import { getLocationHash } from '~/lib/utils/url_utility';
 import { getPageParamValue, getPageSearchString } from './utils';
 
 const lineNumberRe = /^(L|LC)[0-9]+/;
diff --git a/app/assets/javascripts/blob/state.js b/app/assets/javascripts/blob/state.js
new file mode 100644
index 0000000000000000000000000000000000000000..21456a84a3884334080c05563f8a0970bce464a2
--- /dev/null
+++ b/app/assets/javascripts/blob/state.js
@@ -0,0 +1,9 @@
+import Vue from 'vue';
+
+export const lineState = Vue.observable({
+  currentLineNumber: null,
+});
+
+export const updateLineNumber = (lineNumber) => {
+  lineState.currentLineNumber = lineNumber;
+};
diff --git a/app/assets/javascripts/repository/components/header_area/blob_button_group.vue b/app/assets/javascripts/repository/components/header_area/blob_button_group.vue
index bcaecfc0b5d8a54867d79cd423a6de6ecbbd62b4..bcbbb5138b4f9d28c7674c37499db31d2b19c310 100644
--- a/app/assets/javascripts/repository/components/header_area/blob_button_group.vue
+++ b/app/assets/javascripts/repository/components/header_area/blob_button_group.vue
@@ -110,7 +110,7 @@ export default {
 </script>
 
 <template>
-  <gl-disclosure-dropdown-group>
+  <gl-disclosure-dropdown-group bordered>
     <lock-file-dropdown-item
       v-if="glFeatures.fileLocks"
       :name="blobInfo.name"
diff --git a/app/assets/javascripts/repository/components/header_area/blob_controls.vue b/app/assets/javascripts/repository/components/header_area/blob_controls.vue
index 3c6e1efb00b84180c0527665f13c069ab9179d0b..974ecc09b207f829058c7d591cbcf4dfd576f8bd 100644
--- a/app/assets/javascripts/repository/components/header_area/blob_controls.vue
+++ b/app/assets/javascripts/repository/components/header_area/blob_controls.vue
@@ -212,6 +212,7 @@ export default {
     </gl-button>
 
     <gl-button
+      v-if="!glFeatures.blobOverflowMenu"
       v-gl-tooltip.html="permalinkTooltip"
       :aria-keyshortcuts="permalinkShortcutKey"
       data-testid="permalink"
diff --git a/app/assets/javascripts/repository/components/header_area/blob_overflow_menu.vue b/app/assets/javascripts/repository/components/header_area/blob_overflow_menu.vue
index 1b83e6e4819d6872c6ff8a95f23526f83fa0317b..845b457f4299d051a125f5dfdebd5185edd38037 100644
--- a/app/assets/javascripts/repository/components/header_area/blob_overflow_menu.vue
+++ b/app/assets/javascripts/repository/components/header_area/blob_overflow_menu.vue
@@ -10,6 +10,7 @@ import { DEFAULT_BLOB_INFO } from '~/repository/constants';
 import BlobDefaultActionsGroup from './blob_default_actions_group.vue';
 import BlobButtonGroup from './blob_button_group.vue';
 import BlobDeleteFileGroup from './blob_delete_file_group.vue';
+import PermalinkDropdownItem from './permalink_dropdown_item.vue';
 
 export const i18n = {
   dropdownLabel: __('Actions'),
@@ -19,6 +20,7 @@ export const i18n = {
 export default {
   i18n,
   components: {
+    PermalinkDropdownItem,
     GlDisclosureDropdown,
     BlobDefaultActionsGroup,
     BlobButtonGroup,
@@ -124,6 +126,7 @@ export default {
     :toggle-text="$options.i18n.dropdownLabel"
     text-sr-only
   >
+    <permalink-dropdown-item :permalink-path="blobInfo.permalinkPath" />
     <blob-button-group
       v-if="isLoggedIn && !blobInfo.archived"
       :current-ref="currentRef"
diff --git a/app/assets/javascripts/repository/components/header_area/permalink_dropdown_item.vue b/app/assets/javascripts/repository/components/header_area/permalink_dropdown_item.vue
new file mode 100644
index 0000000000000000000000000000000000000000..20804f914c1edaec6bc10686448927c7abd7bcd3
--- /dev/null
+++ b/app/assets/javascripts/repository/components/header_area/permalink_dropdown_item.vue
@@ -0,0 +1,81 @@
+<script>
+import Vue from 'vue';
+import { GlDisclosureDropdownGroup, GlDisclosureDropdownItem, GlToast } from '@gitlab/ui';
+import { __ } from '~/locale';
+import { keysFor, PROJECT_FILES_GO_TO_PERMALINK } from '~/behaviors/shortcuts/keybindings';
+import { Mousetrap } from '~/lib/mousetrap';
+import { shouldDisableShortcuts } from '~/behaviors/shortcuts/shortcuts_toggle';
+import { getBaseURL, relativePathToAbsolute } from '~/lib/utils/url_utility';
+import { lineState } from '~/blob/state';
+import { getPageParamValue, getPageSearchString } from '~/blob/utils';
+
+Vue.use(GlToast);
+
+export default {
+  components: {
+    GlDisclosureDropdownGroup,
+    GlDisclosureDropdownItem,
+  },
+  props: {
+    permalinkPath: {
+      type: String,
+      required: true,
+    },
+  },
+  computed: {
+    permalinkShortcutKey() {
+      return keysFor(PROJECT_FILES_GO_TO_PERMALINK)[0];
+    },
+    shortcutsDisabled() {
+      return shouldDisableShortcuts();
+    },
+    absolutePermalinkPath() {
+      const baseAbsolutePath = relativePathToAbsolute(this.permalinkPath, getBaseURL());
+      if (lineState.currentLineNumber) {
+        const page = getPageParamValue(lineState.currentLineNumber);
+        const searchString = getPageSearchString(baseAbsolutePath, page);
+        return `${baseAbsolutePath}${searchString}#L${lineState.currentLineNumber}`;
+      }
+      return baseAbsolutePath;
+    },
+  },
+  mounted() {
+    Mousetrap.bind(keysFor(PROJECT_FILES_GO_TO_PERMALINK), this.triggerCopyPermalink);
+  },
+  beforeDestroy() {
+    Mousetrap.unbind(keysFor(PROJECT_FILES_GO_TO_PERMALINK));
+  },
+  methods: {
+    triggerCopyPermalink() {
+      const buttonElement = this.$refs.copyPermalinkButton.$el;
+      buttonElement.click();
+      this.onCopyPermalink();
+    },
+    onCopyPermalink() {
+      this.$toast.show(__('Permalink copied to clipboard.'));
+    },
+  },
+};
+</script>
+
+<template>
+  <gl-disclosure-dropdown-group>
+    <gl-disclosure-dropdown-item
+      ref="copyPermalinkButton"
+      :aria-keyshortcuts="permalinkShortcutKey"
+      data-testid="permalink"
+      :data-clipboard-text="absolutePermalinkPath"
+      data-clipboard-handle-tooltip="false"
+      @action="onCopyPermalink"
+    >
+      <template #list-item>
+        <span class="gl-flex gl-items-center gl-justify-between">
+          <span>{{ __('Copy permalink') }}</span>
+          <kbd v-if="permalinkShortcutKey && !shortcutsDisabled" class="flat">{{
+            permalinkShortcutKey
+          }}</kbd>
+        </span>
+      </template>
+    </gl-disclosure-dropdown-item>
+  </gl-disclosure-dropdown-group>
+</template>
diff --git a/app/assets/javascripts/vue_shared/components/source_viewer/components/chunk.vue b/app/assets/javascripts/vue_shared/components/source_viewer/components/chunk.vue
index 8d1ebb26cbb127edb6154bfaf0a5f0f4d9f1f9d4..52d7d1290092a5a124a18cda379ec17467af5563 100644
--- a/app/assets/javascripts/vue_shared/components/source_viewer/components/chunk.vue
+++ b/app/assets/javascripts/vue_shared/components/source_viewer/components/chunk.vue
@@ -6,6 +6,7 @@ import { GlIntersectionObserver } from '@gitlab/ui';
 import SafeHtml from '~/vue_shared/directives/safe_html';
 import { getPageParamValue, getPageSearchString } from '~/blob/utils';
 import { addInteractionClass } from '~/code_navigation/utils';
+import { updateLineNumber } from '~/blob/state';
 
 /*
  * We only highlight the chunk that is currently visible to the user.
@@ -107,6 +108,10 @@ export default {
       this.hasAppeared = true;
       this.$emit('appear');
     },
+    handleOnClick(event) {
+      const { lineNumber } = event.target.dataset;
+      updateLineNumber(lineNumber);
+    },
     calculateLineNumber(index) {
       return this.startingFrom + index + 1;
     },
@@ -146,6 +151,7 @@ export default {
           class="file-line-num gl-select-none !gl-shadow-none"
           :href="`#L${calculateLineNumber(index)}`"
           :data-line-number="calculateLineNumber(index)"
+          @click="handleOnClick"
         >
           {{ calculateLineNumber(index) }}
         </a>
diff --git a/locale/gitlab.pot b/locale/gitlab.pot
index dd3dd40140d0cde8745d94f847ad22ac9b5e60e6..aca64890fed6621215e52b6ac256f0384b7bcce7 100644
--- a/locale/gitlab.pot
+++ b/locale/gitlab.pot
@@ -16819,6 +16819,9 @@ msgstr ""
 msgid "Copy link URL"
 msgstr ""
 
+msgid "Copy permalink"
+msgstr ""
+
 msgid "Copy reference"
 msgstr ""
 
@@ -42052,6 +42055,9 @@ msgstr ""
 msgid "Permalink"
 msgstr ""
 
+msgid "Permalink copied to clipboard."
+msgstr ""
+
 msgid "Permissions"
 msgstr ""
 
diff --git a/spec/features/projects/blobs/blob_line_permalink_updater_spec.rb b/spec/features/projects/blobs/blob_line_permalink_updater_spec.rb
index ae942cda29b4e33833096f1379a7adf3e7e49e54..af4baa17ce6ed2a90fc9bf51819d6b3997063a42 100644
--- a/spec/features/projects/blobs/blob_line_permalink_updater_spec.rb
+++ b/spec/features/projects/blobs/blob_line_permalink_updater_spec.rb
@@ -19,13 +19,17 @@ def visit_blob(fragment = nil)
     end
 
     describe 'Click "Permalink" button' do
+      before do
+        stub_feature_flags(blob_overflow_menu: false)
+      end
+
       it 'works with no initial line number fragment hash' do
         visit_blob
 
         expect(find('.js-data-file-blob-permalink-url')['href']).to eq(get_absolute_url(project_blob_path(project, tree_join(sha, path))))
       end
 
-      it 'maintains intitial fragment hash' do
+      it 'maintains initial fragment hash' do
         fragment = "L3"
 
         visit_blob(fragment)
@@ -61,7 +65,7 @@ def visit_blob(fragment = nil)
         expect(find('.js-blob-blame-link')['href']).to eq(get_absolute_url(project_blame_path(project, tree_join('master', path))))
       end
 
-      it 'maintains intitial fragment hash' do
+      it 'maintains initial fragment hash' do
         fragment = "L3"
 
         visit_blob(fragment)
diff --git a/spec/features/projects/blobs/shortcuts_blob_spec.rb b/spec/features/projects/blobs/shortcuts_blob_spec.rb
index 0de9137f9ec70b9e606c62d928241955361ebfc8..4a0422c15da9608efea8d307c9e90d994664f538 100644
--- a/spec/features/projects/blobs/shortcuts_blob_spec.rb
+++ b/spec/features/projects/blobs/shortcuts_blob_spec.rb
@@ -18,6 +18,10 @@ def visit_blob(fragment = nil)
     end
 
     describe 'pressing "y"' do
+      before do
+        stub_feature_flags(blob_overflow_menu: false)
+      end
+
       it 'redirects to permalink with commit sha' do
         visit_blob
         wait_for_requests
diff --git a/spec/frontend/repository/components/header_area/blob_overflow_menu_spec.js b/spec/frontend/repository/components/header_area/blob_overflow_menu_spec.js
index 83c608d5b767f00ac664cccb36967eab2b87eeab..1e14b2d4358e14d747d31b2b748b588f5d36d6f0 100644
--- a/spec/frontend/repository/components/header_area/blob_overflow_menu_spec.js
+++ b/spec/frontend/repository/components/header_area/blob_overflow_menu_spec.js
@@ -9,6 +9,7 @@ import { createAlert } from '~/alert';
 import projectInfoQuery from 'ee_else_ce/repository/queries/project_info.query.graphql';
 import BlobOverflowMenu from '~/repository/components/header_area/blob_overflow_menu.vue';
 import BlobDefaultActionsGroup from '~/repository/components/header_area/blob_default_actions_group.vue';
+import PermalinkDropdownItem from '~/repository/components/header_area/permalink_dropdown_item.vue';
 import BlobButtonGroup from '~/repository/components/header_area/blob_button_group.vue';
 import BlobDeleteFileGroup from '~/repository/components/header_area/blob_delete_file_group.vue';
 import createRouter from '~/repository/router';
@@ -62,6 +63,7 @@ describe('Blob Overflow Menu', () => {
 
   const findBlobDefaultActionsGroup = () => wrapper.findComponent(BlobDefaultActionsGroup);
   const findBlobButtonGroup = () => wrapper.findComponent(BlobButtonGroup);
+  const findPermalinkDropdownItem = () => wrapper.findComponent(PermalinkDropdownItem);
   const findBlobDeleteFileGroup = () => wrapper.findComponent(BlobDeleteFileGroup);
 
   beforeEach(async () => {
@@ -162,4 +164,10 @@ describe('Blob Overflow Menu', () => {
       expect(findBlobDeleteFileGroup().exists()).toBe(false);
     });
   });
+
+  describe('Permalink Dropdown Item', () => {
+    it('renders component', () => {
+      expect(findPermalinkDropdownItem().exists()).toBe(true);
+    });
+  });
 });
diff --git a/spec/frontend/repository/components/header_area/permalink_dropdown_item_spec.js b/spec/frontend/repository/components/header_area/permalink_dropdown_item_spec.js
new file mode 100644
index 0000000000000000000000000000000000000000..f4a64c100cff76a92b5eab1182e05abc7143e3a6
--- /dev/null
+++ b/spec/frontend/repository/components/header_area/permalink_dropdown_item_spec.js
@@ -0,0 +1,112 @@
+import { nextTick } from 'vue';
+import { GlDisclosureDropdownGroup } from '@gitlab/ui';
+import PermalinkDropdownItem from '~/repository/components/header_area/permalink_dropdown_item.vue';
+import { keysFor, PROJECT_FILES_GO_TO_PERMALINK } from '~/behaviors/shortcuts/keybindings';
+import { shouldDisableShortcuts } from '~/behaviors/shortcuts/shortcuts_toggle';
+import { Mousetrap } from '~/lib/mousetrap';
+import { lineState } from '~/blob/state';
+import { shallowMountExtended } from 'helpers/vue_test_utils_helper';
+
+jest.mock('~/behaviors/shortcuts/shortcuts_toggle');
+jest.mock('~/blob/state');
+
+const relativePermalinkPath =
+  'flightjs/Flight/-/blob/46ca9ebd5a43ec240ee8d64e2bb829169dff744e/bower.json';
+
+describe('PermalinkDropdownItem', () => {
+  let wrapper;
+
+  const $toast = {
+    show: jest.fn(),
+  };
+
+  const createComponent = (props = {}) => {
+    wrapper = shallowMountExtended(PermalinkDropdownItem, {
+      propsData: {
+        permalinkPath: relativePermalinkPath,
+        ...props,
+      },
+      stubs: {
+        GlDisclosureDropdownGroup,
+      },
+      mocks: { $toast },
+    });
+  };
+
+  const findDropdownGroup = () => wrapper.findComponent(GlDisclosureDropdownGroup);
+
+  const findPermalinkLinkDropdown = () => wrapper.findByTestId('permalink');
+
+  beforeEach(() => {
+    lineState.currentLineNumber = null;
+    createComponent();
+  });
+
+  it('renders correctly', () => {
+    expect(findDropdownGroup().exists()).toBe(true);
+    expect(findPermalinkLinkDropdown().exists()).toBe(true);
+  });
+
+  describe('updatedPermalinkPath', () => {
+    it('returns absolutePermalinkPath when no line number is set', () => {
+      expect(findPermalinkLinkDropdown().attributes('data-clipboard-text')).toBe(
+        'http://test.host/flightjs/Flight/-/blob/46ca9ebd5a43ec240ee8d64e2bb829169dff744e/bower.json',
+      );
+    });
+
+    it('returns updated path with line number when set', () => {
+      lineState.currentLineNumber = '10';
+      createComponent();
+
+      expect(findPermalinkLinkDropdown().attributes('data-clipboard-text')).toBe(
+        `http://test.host/flightjs/Flight/-/blob/46ca9ebd5a43ec240ee8d64e2bb829169dff744e/bower.json#L10`,
+      );
+    });
+  });
+
+  describe('handles onCopyPermalink correctly', () => {
+    it('shows toast when dropdown item is clicked', () => {
+      findPermalinkLinkDropdown().vm.$emit('action');
+      expect($toast.show).toHaveBeenCalledWith('Permalink copied to clipboard.');
+    });
+
+    it('triggers copy permalink when shortcut is used', async () => {
+      const clickSpy = jest.spyOn(findPermalinkLinkDropdown().element, 'click');
+
+      Mousetrap.trigger('y');
+      await nextTick();
+
+      expect(clickSpy).toHaveBeenCalled();
+      expect($toast.show).toHaveBeenCalledWith('Permalink copied to clipboard.');
+    });
+  });
+
+  describe('lifecycle hooks', () => {
+    it('binds and unbinds Mousetrap shortcuts', () => {
+      const bindSpy = jest.spyOn(Mousetrap, 'bind');
+      const unbindSpy = jest.spyOn(Mousetrap, 'unbind');
+
+      createComponent();
+      expect(bindSpy).toHaveBeenCalledWith(
+        keysFor(PROJECT_FILES_GO_TO_PERMALINK),
+        expect.any(Function),
+      );
+
+      wrapper.destroy();
+      expect(unbindSpy).toHaveBeenCalledWith(keysFor(PROJECT_FILES_GO_TO_PERMALINK));
+    });
+  });
+
+  it('displays the shortcut key when shortcuts are not disabled', () => {
+    shouldDisableShortcuts.mockReturnValue(false);
+    createComponent();
+    expect(wrapper.find('kbd').exists()).toBe(true);
+    expect(wrapper.find('kbd').text()).toBe(keysFor(PROJECT_FILES_GO_TO_PERMALINK)[0]);
+  });
+
+  it('does not display the shortcut key when shortcuts are disabled', () => {
+    shouldDisableShortcuts.mockReturnValue(true);
+    createComponent();
+    expect(wrapper.find('kbd').exists()).toBe(false);
+  });
+});
diff --git a/spec/frontend/vue_shared/components/source_viewer/components/chunk_spec.js b/spec/frontend/vue_shared/components/source_viewer/components/chunk_spec.js
index 32833e58c3b9a1d4f83e9b566bce1bc7f2d81ced..fae586cd17aa9d44ce4b7b7bb9a1434eda00fa52 100644
--- a/spec/frontend/vue_shared/components/source_viewer/components/chunk_spec.js
+++ b/spec/frontend/vue_shared/components/source_viewer/components/chunk_spec.js
@@ -5,9 +5,11 @@ import { GlIntersectionObserver } from '@gitlab/ui';
 import { shallowMountExtended } from 'helpers/vue_test_utils_helper';
 import Chunk from '~/vue_shared/components/source_viewer/components/chunk.vue';
 import { addInteractionClass } from '~/code_navigation/utils';
+import { updateLineNumber } from '~/blob/state';
 import { CHUNK_1, CHUNK_2 } from '../mock_data';
 
 jest.mock('~/code_navigation/utils');
+jest.mock('~/blob/state');
 
 Vue.use(Vuex);
 
@@ -101,5 +103,18 @@ describe('Chunk component', () => {
 
       expect(addInteractionClass).toHaveBeenCalledWith({ d: 'test', path: 'index.js' });
     });
+
+    it('calls updateLineNumber with the correct line number when a line is clicked', async () => {
+      createComponent({ ...CHUNK_2, isHighlighted: true });
+
+      const lineNumber = '71';
+      const lineNumberElement = wrapper.find(`[data-line-number="${lineNumber}"]`);
+
+      expect(lineNumberElement.exists()).toBe(true);
+
+      await lineNumberElement.trigger('click');
+
+      expect(updateLineNumber).toHaveBeenCalledWith(lineNumber);
+    });
   });
 });