diff --git a/app/server/appsmith-plugins/smtpPlugin/src/main/java/com/external/plugins/SmtpPlugin.java b/app/server/appsmith-plugins/smtpPlugin/src/main/java/com/external/plugins/SmtpPlugin.java
index 403ccd9c20..0023c17d20 100644
--- a/app/server/appsmith-plugins/smtpPlugin/src/main/java/com/external/plugins/SmtpPlugin.java
+++ b/app/server/appsmith-plugins/smtpPlugin/src/main/java/com/external/plugins/SmtpPlugin.java
@@ -205,8 +205,6 @@ public class SmtpPlugin extends BasePlugin {
 
             Properties prop = new Properties();
             prop.put("mail.transport.protocol", "smtp");
-            prop.put("mail.smtp.auth", true);
-            prop.put("mail.smtp.starttls.enable", "true");
             prop.put("mail.smtp.host", endpoint.getHost());
             Long port = (endpoint.getPort() == null || endpoint.getPort() < 0) ? 25 : endpoint.getPort();
             prop.put("mail.smtp.port", String.valueOf(port));
@@ -218,6 +216,10 @@ public class SmtpPlugin extends BasePlugin {
                     && StringUtils.hasText(authentication.getUsername())
                     && StringUtils.hasText(authentication.getPassword())) {
 
+                // Set authentication specific properties only when credentials are provided
+                prop.put("mail.smtp.auth", "true");
+                prop.put("mail.smtp.starttls.enable", "true");
+
                 String username = authentication.getUsername();
                 String password = authentication.getPassword();
 
@@ -228,6 +230,7 @@ public class SmtpPlugin extends BasePlugin {
                     }
                 });
             } else {
+                // For non-authenticated SMTP servers
                 prop.put("mail.smtp.auth", "false");
                 session = Session.getInstance(prop);
             }
diff --git a/app/server/appsmith-plugins/smtpPlugin/src/test/java/com/external/plugins/SmtpPluginTest.java b/app/server/appsmith-plugins/smtpPlugin/src/test/java/com/external/plugins/SmtpPluginTest.java
index 3b95047aee..b539b8ad07 100644
--- a/app/server/appsmith-plugins/smtpPlugin/src/test/java/com/external/plugins/SmtpPluginTest.java
+++ b/app/server/appsmith-plugins/smtpPlugin/src/test/java/com/external/plugins/SmtpPluginTest.java
@@ -37,6 +37,7 @@ import java.util.stream.Collectors;
 
 import static org.junit.jupiter.api.Assertions.assertEquals;
 import static org.junit.jupiter.api.Assertions.assertNotNull;
+import static org.junit.jupiter.api.Assertions.assertNull;
 import static org.junit.jupiter.api.Assertions.assertTrue;
 import static org.mockito.Mockito.anyString;
 import static org.mockito.Mockito.doNothing;
@@ -145,6 +146,15 @@ public class SmtpPluginTest {
         DatasourceConfiguration noAuthDatasourceConfiguration = createDatasourceConfiguration();
         noAuthDatasourceConfiguration.setAuthentication(null); // No authentication
 
+        // First create the session and verify its properties
+        Session session =
+                pluginExecutor.datasourceCreate(noAuthDatasourceConfiguration).block();
+        assertNotNull(session);
+        assertEquals("false", session.getProperties().getProperty("mail.smtp.auth"));
+        // Verify STARTTLS is not enabled when there's no authentication
+        assertNull(session.getProperties().getProperty("mail.smtp.starttls.enable"));
+
+        // Then test the datasource connection
         Mono<DatasourceTestResult> testDatasourceMono = pluginExecutor.testDatasource(noAuthDatasourceConfiguration);
 
         StepVerifier.create(testDatasourceMono)