Gather all ingredients.

Place bacon in a large skillet; cook and stir over medium-high heat until evenly browned, about 10 minutes.

Use a slotted spoon to transfer bacon to a paper towel-lined plate; set aside.

Sprinkle rabbit with salt and coat with flour, shaking off excess.

Cook rabbit in bacon fat in the skillet over medium heat until browned. Transfer rabbit to a plate and set aside. Drain excess grease, leaving 2 tablespoons fat in the skillet.

Sauté shallots and garlic in fat in the skillet until tender, about 4 minutes.

Add wine, water, and bouillon. Bring to a boil, then stir in jelly, peppercorns, bay leaf, and rosemary.

Return rabbit and bacon to the skillet. Bring to a boil, then reduce heat to low. Cover and let simmer until rabbit is tender, about 1 1/2 hours.

Remove bay leaf and discard. Place rabbit on a warm platter; cover to keep warm while preparing gravy.

Make gravy: Stir lemon juice into cooking liquid in the skillet. Mix together water and flour in a small bowl; stir mixture into the skillet over low heat and simmer until thickened. Stir in thyme.

Pour gravy over rabbit or serve in a gravy boat on the side.