diff --git a/app/client/src/actions/pluginActionActions.ts b/app/client/src/actions/pluginActionActions.ts
index 063088d2d0..c12ba3082c 100644
--- a/app/client/src/actions/pluginActionActions.ts
+++ b/app/client/src/actions/pluginActionActions.ts
@@ -17,6 +17,12 @@ import type { ModalInfo } from "reducers/uiReducers/modalActionReducer";
 import type { OtlpSpan } from "UITelemetry/generateTraces";
 
 export const createActionRequest = (payload: Partial<Action>) => {
+  return {
+    type: ReduxActionTypes.CREATE_ACTION_REQUEST,
+    payload,
+  };
+};
+export const createActionInit = (payload: Partial<Action>) => {
   return {
     type: ReduxActionTypes.CREATE_ACTION_INIT,
     payload,
diff --git a/app/client/src/ce/constants/ReduxActionConstants.tsx b/app/client/src/ce/constants/ReduxActionConstants.tsx
index 80693215db..9a63a75eab 100644
--- a/app/client/src/ce/constants/ReduxActionConstants.tsx
+++ b/app/client/src/ce/constants/ReduxActionConstants.tsx
@@ -256,6 +256,7 @@ const ActionTypes = {
   FETCH_PROPERTY_PANE_CONFIGS_SUCCESS: "FETCH_PROPERTY_PANE_CONFIGS_SUCCESS",
   FETCH_CONFIGS_INIT: "FETCH_CONFIGS_INIT",
   ADD_WIDGET_REF: "ADD_WIDGET_REF",
+  CREATE_ACTION_REQUEST: "CREATE_ACTION_REQUEST",
   CREATE_ACTION_INIT: "CREATE_ACTION_INIT",
   CREATE_ACTION_SUCCESS: "CREATE_ACTION_SUCCESS",
   FETCH_ACTIONS_INIT: "FETCH_ACTIONS_INIT",
diff --git a/app/client/src/ce/sagas/helpers.ts b/app/client/src/ce/sagas/helpers.ts
new file mode 100644
index 0000000000..79480ca7cc
--- /dev/null
+++ b/app/client/src/ce/sagas/helpers.ts
@@ -0,0 +1,22 @@
+import type { CreateNewActionKeyInterface } from "@appsmith/entities/Engine/actionHelpers";
+import { CreateNewActionKey } from "@appsmith/entities/Engine/actionHelpers";
+import type { Action } from "entities/Action";
+
+export interface ResolveParentEntityMetadataReturnType {
+  parentEntityId?: string;
+  parentEntityKey?: CreateNewActionKeyInterface;
+}
+
+// This function is extended in EE. Please check the EE implementation before any modification.
+export const resolveParentEntityMetadata = (
+  action: Partial<Action>,
+): ResolveParentEntityMetadataReturnType => {
+  if (action.pageId) {
+    return {
+      parentEntityId: action.pageId,
+      parentEntityKey: CreateNewActionKey.PAGE,
+    };
+  }
+
+  return { parentEntityId: undefined, parentEntityKey: undefined };
+};
diff --git a/app/client/src/ce/selectors/entitiesSelector.ts b/app/client/src/ce/selectors/entitiesSelector.ts
index 1b40f1e03e..7f6bdcaad8 100644
--- a/app/client/src/ce/selectors/entitiesSelector.ts
+++ b/app/client/src/ce/selectors/entitiesSelector.ts
@@ -57,6 +57,8 @@ import {
   getCurrentWorkflowJSActions,
 } from "@appsmith/selectors/workflowSelectors";
 import { MAX_DATASOURCE_SUGGESTIONS } from "constants/DatasourceEditorConstants";
+import type { CreateNewActionKeyInterface } from "@appsmith/entities/Engine/actionHelpers";
+import { getNextEntityName } from "utils/AppsmithUtils";
 
 export const getEntities = (state: AppState): AppState["entities"] =>
   state.entities;
@@ -74,6 +76,12 @@ export enum PluginCategory {
   Others = "Others",
 }
 
+export interface NewEntityNameOptions {
+  prefix: string;
+  parentEntityId: string;
+  parentEntityKey: CreateNewActionKeyInterface;
+}
+
 export type DatasourceGroupByPluginCategory = Record<
   PluginCategory,
   Datasource[]
@@ -1432,3 +1440,21 @@ export const getAllJSCollections = createSelector(
 export const getIsActionConverting = (state: AppState, actionId: string) => {
   return false;
 };
+
+export const getNewEntityName = createSelector(
+  getActions,
+  getJSCollections,
+  (_state: AppState, options: NewEntityNameOptions) => options,
+  (actions, jsCollections, options) => {
+    const { parentEntityId, parentEntityKey, prefix } = options;
+
+    const actionNames = actions
+      .filter((a) => a.config[parentEntityKey] === parentEntityId)
+      .map((a) => a.config.name);
+    const jsActionNames = jsCollections
+      .filter((a) => a.config[parentEntityKey] === parentEntityId)
+      .map((a) => a.config.name);
+
+    return getNextEntityName(prefix, actionNames.concat(jsActionNames));
+  },
+);
diff --git a/app/client/src/ee/sagas/helpers.ts b/app/client/src/ee/sagas/helpers.ts
new file mode 100644
index 0000000000..8e05b607d8
--- /dev/null
+++ b/app/client/src/ee/sagas/helpers.ts
@@ -0,0 +1 @@
+export * from "ce/sagas/helpers";
diff --git a/app/client/src/entities/Action/index.ts b/app/client/src/entities/Action/index.ts
index 6e99bcfd1a..3d835d3749 100644
--- a/app/client/src/entities/Action/index.ts
+++ b/app/client/src/entities/Action/index.ts
@@ -283,11 +283,11 @@ export const SCHEMA_SECTION_ID = "t--api-right-pane-schema";
 export interface CreateApiActionDefaultsParams {
   apiType: string;
   from?: EventLocation;
-  newActionName: string;
+  newActionName?: string;
 }
 
 export interface CreateActionDefaultsParams {
   datasourceId: string;
   from?: EventLocation;
-  newActionName: string;
+  newActionName?: string;
 }
diff --git a/app/client/src/pages/Editor/APIEditor/CurlImportEditor.tsx b/app/client/src/pages/Editor/APIEditor/CurlImportEditor.tsx
index 107165d601..37b553a199 100644
--- a/app/client/src/pages/Editor/APIEditor/CurlImportEditor.tsx
+++ b/app/client/src/pages/Editor/APIEditor/CurlImportEditor.tsx
@@ -1,9 +1,8 @@
 import React, { useMemo } from "react";
 
 import CurlImportForm from "./CurlImportForm";
-import { createNewApiName } from "utils/AppsmithUtils";
 import { curlImportSubmitHandler } from "./helpers";
-import { getActions } from "@appsmith/selectors/entitiesSelector";
+import { getNewEntityName } from "@appsmith/selectors/entitiesSelector";
 import { getIsImportingCurl } from "selectors/ui";
 import { showDebuggerFlag } from "selectors/debuggerSelectors";
 import { useSelector } from "react-redux";
@@ -12,19 +11,27 @@ import type { BuilderRouteParams } from "constants/routes";
 import CloseEditor from "components/editorComponents/CloseEditor";
 import { useFeatureFlag } from "utils/hooks/useFeatureFlag";
 import { FEATURE_FLAG } from "@appsmith/entities/FeatureFlag";
+import { CreateNewActionKey } from "@appsmith/entities/Engine/actionHelpers";
+import { DEFAULT_PREFIX } from "sagas/ActionSagas";
 
 type CurlImportEditorProps = RouteComponentProps<BuilderRouteParams>;
 
 function CurlImportEditor(props: CurlImportEditorProps) {
-  const actions = useSelector(getActions);
   const { pageId } = props.match.params;
+  const actionName = useSelector((state) =>
+    getNewEntityName(state, {
+      prefix: DEFAULT_PREFIX.API,
+      parentEntityId: pageId,
+      parentEntityKey: CreateNewActionKey.PAGE,
+    }),
+  );
 
   const showDebugger = useSelector(showDebuggerFlag);
   const isImportingCurl = useSelector(getIsImportingCurl);
 
   const initialFormValues = {
     pageId,
-    name: createNewApiName(actions, pageId),
+    name: actionName,
   };
   const isPagesPaneEnabled = useFeatureFlag(
     FEATURE_FLAG.release_show_new_sidebar_pages_pane_enabled,
diff --git a/app/client/src/pages/Editor/DatasourceInfo/QueryTemplates.tsx b/app/client/src/pages/Editor/DatasourceInfo/QueryTemplates.tsx
index c358a17c2e..57449d7fb1 100644
--- a/app/client/src/pages/Editor/DatasourceInfo/QueryTemplates.tsx
+++ b/app/client/src/pages/Editor/DatasourceInfo/QueryTemplates.tsx
@@ -2,7 +2,6 @@ import React, { useCallback, useContext } from "react";
 import { useDispatch, useSelector } from "react-redux";
 import { createActionRequest } from "actions/pluginActionActions";
 import type { AppState } from "@appsmith/reducers";
-import { createNewQueryName } from "utils/AppsmithUtils";
 import {
   getCurrentApplicationId,
   getCurrentPageId,
@@ -81,7 +80,6 @@ export function QueryTemplates(props: QueryTemplatesProps) {
   );
   const createQueryAction = useCallback(
     (template: QueryTemplate) => {
-      const newQueryName = createNewQueryName(actions, currentPageId || "");
       const queryactionConfiguration: Partial<QueryAction> = {
         actionConfiguration: {
           body: template.body,
@@ -93,7 +91,6 @@ export function QueryTemplates(props: QueryTemplatesProps) {
 
       dispatch(
         createActionRequest({
-          name: newQueryName,
           pageId: currentPageId,
           pluginId: dataSource?.pluginId,
           datasource: {
diff --git a/app/client/src/pages/Editor/SaaSEditor/ListView.tsx b/app/client/src/pages/Editor/SaaSEditor/ListView.tsx
index 6a32f496fd..65adcc2744 100644
--- a/app/client/src/pages/Editor/SaaSEditor/ListView.tsx
+++ b/app/client/src/pages/Editor/SaaSEditor/ListView.tsx
@@ -12,7 +12,6 @@ import { createDatasourceFromForm } from "actions/datasourceActions";
 import type { SaaSAction } from "entities/Action";
 import { createActionRequest } from "actions/pluginActionActions";
 import type { Datasource } from "entities/Datasource";
-import { createNewApiName } from "utils/AppsmithUtils";
 import type { ActionDataState } from "@appsmith/reducers/entityReducers/actionsReducer";
 
 // Design
@@ -88,7 +87,6 @@ class ListView extends React.Component<Props> {
 
   handleCreateNewAPI = (datasource: Datasource) => {
     const {
-      actions,
       location,
       match: {
         params: { pageId },
@@ -100,10 +98,7 @@ class ListView extends React.Component<Props> {
       pgId = pageId;
     }
     if (pgId) {
-      const newApiName = createNewApiName(actions, pgId);
-
       this.props.createAction({
-        name: newApiName,
         pageId: pgId,
         pluginId: datasource.pluginId,
         datasource: {
diff --git a/app/client/src/sagas/ActionSagas.ts b/app/client/src/sagas/ActionSagas.ts
index 4f70cfab85..363026151c 100644
--- a/app/client/src/sagas/ActionSagas.ts
+++ b/app/client/src/sagas/ActionSagas.ts
@@ -31,6 +31,7 @@ import type {
 import {
   copyActionError,
   copyActionSuccess,
+  createActionInit,
   createActionSuccess,
   deleteActionSuccess,
   fetchActionsForPage,
@@ -79,6 +80,7 @@ import {
   getPlugin,
   getSettingConfig,
   getPageActions,
+  getNewEntityName,
 } from "@appsmith/selectors/entitiesSelector";
 import history from "utils/history";
 import { INTEGRATION_TABS } from "constants/routes";
@@ -142,6 +144,12 @@ import { selectFeatureFlagCheck } from "@appsmith/selectors/featureFlagsSelector
 import { FEATURE_FLAG } from "@appsmith/entities/FeatureFlag";
 import { identifyEntityFromPath } from "../navigation/FocusEntity";
 import { getActionConfig } from "../pages/Editor/Explorer/Actions/helpers";
+import { resolveParentEntityMetadata } from "@appsmith/sagas/helpers";
+
+export const DEFAULT_PREFIX = {
+  QUERY: "Query",
+  API: "Api",
+} as const;
 
 export function* createDefaultActionPayloadWithPluginDefaults(
   props: CreateActionDefaultsParams,
@@ -245,6 +253,52 @@ export function* getPluginActionDefaultValues(pluginId: string) {
   return initialValues;
 }
 
+/**
+ * This saga prepares the action request i.e it helps generating a
+ * new name of an action. This is to reduce any dependency on name generation
+ * on the caller of this saga.
+ */
+export function* createActionRequestSaga(
+  actionPayload: ReduxAction<
+    Partial<Action> & { eventData: any; pluginId: string }
+  >,
+) {
+  const payload = { ...actionPayload.payload };
+  const pluginId =
+    actionPayload.payload.pluginId ||
+    actionPayload.payload.datasource?.pluginId;
+  if (!actionPayload.payload.name) {
+    const { parentEntityId, parentEntityKey } = resolveParentEntityMetadata(
+      actionPayload.payload,
+    );
+
+    if (!parentEntityId || !parentEntityKey) return;
+    const plugin: Plugin | undefined = yield select(getPlugin, pluginId || "");
+    const isQueryType =
+      plugin?.type === PluginType.DB ||
+      plugin?.packageName === PluginPackageName.APPSMITH_AI;
+
+    const prefix = isQueryType ? DEFAULT_PREFIX.QUERY : DEFAULT_PREFIX.API;
+
+    if (
+      plugin?.type === PluginType.DB ||
+      plugin?.packageName === PluginPackageName.APPSMITH_AI
+    ) {
+      DEFAULT_PREFIX.QUERY;
+    }
+
+    const name: string = yield select(getNewEntityName, {
+      prefix,
+      parentEntityId,
+      parentEntityKey,
+    });
+
+    payload.name = name;
+  }
+
+  yield put(createActionInit(payload));
+}
+
 export function* createActionSaga(
   actionPayload: ReduxAction<
     Partial<Action> & { eventData: any; pluginId: string }
@@ -1128,6 +1182,7 @@ export function* watchActionSagas() {
       ReduxActionTypes.FETCH_ACTIONS_VIEW_MODE_INIT,
       fetchActionsForViewModeSaga,
     ),
+    takeEvery(ReduxActionTypes.CREATE_ACTION_REQUEST, createActionRequestSaga),
     takeEvery(ReduxActionTypes.CREATE_ACTION_INIT, createActionSaga),
     takeLatest(ReduxActionTypes.UPDATE_ACTION_INIT, updateActionSaga),
     takeLatest(ReduxActionTypes.DELETE_ACTION_INIT, deleteActionSaga),
diff --git a/app/client/src/sagas/ApiPaneSagas.ts b/app/client/src/sagas/ApiPaneSagas.ts
index bfc8b5f286..629f7e8f33 100644
--- a/app/client/src/sagas/ApiPaneSagas.ts
+++ b/app/client/src/sagas/ApiPaneSagas.ts
@@ -34,19 +34,13 @@ import history from "utils/history";
 import { INTEGRATION_EDITOR_MODES, INTEGRATION_TABS } from "constants/routes";
 import { initialize, autofill, change, reset } from "redux-form";
 import type { Property } from "api/ActionAPI";
-import { createNewApiName, createNewQueryName } from "utils/AppsmithUtils";
 import { getQueryParams } from "utils/URLUtils";
 import { getPluginIdOfPackageName } from "sagas/selectors";
 import {
   getAction,
-  getActions,
   getDatasourceActionRouteInfo,
   getPlugin,
 } from "@appsmith/selectors/entitiesSelector";
-import type {
-  ActionData,
-  ActionDataState,
-} from "@appsmith/reducers/entityReducers/actionsReducer";
 import {
   createActionRequest,
   setActionProperty,
@@ -724,16 +718,6 @@ function* handleCreateNewApiActionSaga(
   const { apiType = PluginPackageName.REST_API, from, pageId } = action.payload;
 
   if (pageId) {
-    const actions: ActionDataState = yield select(getActions);
-    const pageActions = actions.filter(
-      (a: ActionData) => a.config.pageId === pageId,
-    );
-    let newActionName = createNewApiName(pageActions, pageId);
-
-    // Change the action name to Query if the plugin is Appsmith AI
-    if (apiType === PluginPackageName.APPSMITH_AI) {
-      newActionName = createNewQueryName(pageActions, pageId);
-    }
     // Note: Do NOT send pluginId on top level here.
     // It breaks embedded rest datasource flow.
 
@@ -742,7 +726,6 @@ function* handleCreateNewApiActionSaga(
       {
         apiType,
         from,
-        newActionName,
       },
     );
 
diff --git a/app/client/src/sagas/QueryPaneSagas.ts b/app/client/src/sagas/QueryPaneSagas.ts
index fd90fad027..b4ecf6bdfc 100644
--- a/app/client/src/sagas/QueryPaneSagas.ts
+++ b/app/client/src/sagas/QueryPaneSagas.ts
@@ -36,7 +36,6 @@ import {
   getSettingConfig,
   getPlugins,
   getGenerateCRUDEnabledPluginMap,
-  getActions,
 } from "@appsmith/selectors/entitiesSelector";
 import type { Action, QueryAction } from "entities/Action";
 import { PluginType } from "entities/Action";
@@ -86,8 +85,6 @@ import { selectFeatureFlags } from "@appsmith/selectors/featureFlagsSelectors";
 import { isGACEnabled } from "@appsmith/utils/planHelpers";
 import { getHasManageActionPermission } from "@appsmith/utils/BusinessFeatures/permissionPageHelpers";
 import type { ChangeQueryPayload } from "actions/queryPaneActions";
-import { createNewApiName, createNewQueryName } from "utils/AppsmithUtils";
-import type { ActionDataState } from "@appsmith/reducers/entityReducers/actionsReducer";
 import {
   getApplicationByIdFromWorkspaces,
   getCurrentApplicationIdForCreateNewApp,
@@ -499,23 +496,14 @@ function* createNewQueryForDatasourceSaga(
     from: EventLocation;
   }>,
 ) {
-  const { datasourceId, from, pageId } = action.payload;
+  const { datasourceId, from } = action.payload;
   if (!datasourceId) return;
 
-  const actions: ActionDataState = yield select(getActions);
-  const datasource: Datasource = yield select(getDatasource, datasourceId);
-  const plugin: Plugin = yield select(getPlugin, datasource?.pluginId);
-  const newActionName =
-    plugin?.type === PluginType.DB
-      ? createNewQueryName(actions, pageId || "")
-      : createNewApiName(actions, pageId || "");
-
   const createActionPayload: Partial<Action> = yield call(
     createDefaultActionPayloadWithPluginDefaults,
     {
       datasourceId,
       from,
-      newActionName,
     },
   );