diff --git a/app/server/appsmith-server/src/main/java/com/appsmith/server/repositories/AppsmithRepository.java b/app/server/appsmith-server/src/main/java/com/appsmith/server/repositories/AppsmithRepository.java
index 53d184d5e7..5d57ac9576 100644
--- a/app/server/appsmith-server/src/main/java/com/appsmith/server/repositories/AppsmithRepository.java
+++ b/app/server/appsmith-server/src/main/java/com/appsmith/server/repositories/AppsmithRepository.java
@@ -1,6 +1,7 @@
 package com.appsmith.server.repositories;
 
 import com.appsmith.server.acl.AclPermission;
+import com.appsmith.server.domains.User;
 import org.springframework.data.domain.Sort;
 import org.springframework.data.mongodb.core.query.Criteria;
 import reactor.core.publisher.Flux;
@@ -17,4 +18,6 @@ public interface AppsmithRepository<T> {
     Flux<T> queryAll(List<Criteria> criterias, AclPermission permission);
 
     Flux<T> queryAll(List<Criteria> criterias, AclPermission permission, Sort sort);
+
+    T setUserPermissionsInObject(T obj, User user);
 }
diff --git a/app/server/appsmith-server/src/main/java/com/appsmith/server/services/ActionCollectionServiceImpl.java b/app/server/appsmith-server/src/main/java/com/appsmith/server/services/ActionCollectionServiceImpl.java
index e319bbd5af..31644a6fb3 100644
--- a/app/server/appsmith-server/src/main/java/com/appsmith/server/services/ActionCollectionServiceImpl.java
+++ b/app/server/appsmith-server/src/main/java/com/appsmith/server/services/ActionCollectionServiceImpl.java
@@ -87,6 +87,10 @@ public class ActionCollectionServiceImpl implements ActionCollectionService {
 
     @Override
     public Mono<Action> updateAction(String id, Action action) {
+
+        // Since the policies are server only concept, we should first set this to null.
+        action.setPolicies(null);
+
         //The change was not in CollectionId, just go ahead and update normally
         if (action.getCollectionId() == null) {
             return layoutActionService.updateAction(id, action);
diff --git a/app/server/appsmith-server/src/main/java/com/appsmith/server/services/DatasourceServiceImpl.java b/app/server/appsmith-server/src/main/java/com/appsmith/server/services/DatasourceServiceImpl.java
index 080c249c40..41b972920c 100644
--- a/app/server/appsmith-server/src/main/java/com/appsmith/server/services/DatasourceServiceImpl.java
+++ b/app/server/appsmith-server/src/main/java/com/appsmith/server/services/DatasourceServiceImpl.java
@@ -10,6 +10,7 @@ import com.appsmith.server.constants.AnalyticsEvents;
 import com.appsmith.server.constants.FieldName;
 import com.appsmith.server.domains.Datasource;
 import com.appsmith.server.domains.Organization;
+import com.appsmith.server.domains.User;
 import com.appsmith.server.exceptions.AppsmithError;
 import com.appsmith.server.exceptions.AppsmithException;
 import com.appsmith.server.helpers.PluginExecutorHelper;
@@ -93,8 +94,6 @@ public class DatasourceServiceImpl extends BaseService<DatasourceRepository, Dat
                     });
         }
 
-
-
         return datasourceMono
                 .flatMap(datasource1 ->
                         sessionUserService.getCurrentUser()
@@ -130,6 +129,10 @@ public class DatasourceServiceImpl extends BaseService<DatasourceRepository, Dat
         if (id == null) {
             return Mono.error(new AppsmithException(AppsmithError.INVALID_PARAMETER, FieldName.ID));
         }
+
+        // Since policies are a server only concept, first set the empty set (set by constructor) to null
+        datasource.setPolicies(null);
+
         Mono<Datasource> datasourceMono = repository.findById(id)
                 .switchIfEmpty(Mono.error(new AppsmithException(AppsmithError.NO_RESOURCE_FOUND, FieldName.DATASOURCE, id)));
 
@@ -184,9 +187,18 @@ public class DatasourceServiceImpl extends BaseService<DatasourceRepository, Dat
     }
 
     private Mono<Datasource> validateAndSaveDatasourceToRepository(Datasource datasource) {
+
+        Mono<User> currentUserMono = sessionUserService.getCurrentUser();
+
         return Mono.just(datasource)
                 .flatMap(this::validateDatasource)
-                .flatMap(repository::save);
+                .zipWith(currentUserMono)
+                .flatMap(tuple -> {
+                    Datasource savedDatasource = tuple.getT1();
+                    User user = tuple.getT2();
+                    Datasource userPermissionsInDatasource = repository.setUserPermissionsInObject(savedDatasource, user);
+                    return repository.save(userPermissionsInDatasource);
+                });
     }
 
     @Override