diff --git a/app/client/src/ce/actions/environmentAction.ts b/app/client/src/ce/actions/environmentAction.ts
index 9736308933..ff48d6d747 100644
--- a/app/client/src/ce/actions/environmentAction.ts
+++ b/app/client/src/ce/actions/environmentAction.ts
@@ -6,3 +6,12 @@ export const setCurrentEditingEnvironmentID = (currentEditingId: string) => ({
   type: "",
   payload: { currentEditingId },
 });
+
+// Redux action to fetch environments
+export const fetchingEnvironmentConfigs = (
+  workspaceId: string,
+  fetchDatasourceMeta = false,
+) => ({
+  type: "",
+  payload: { workspaceId, fetchDatasourceMeta },
+});
diff --git a/app/client/src/ce/pages/Applications/CreateNewAppsOption.tsx b/app/client/src/ce/pages/Applications/CreateNewAppsOption.tsx
index c3acd055ec..2f77f60571 100644
--- a/app/client/src/ce/pages/Applications/CreateNewAppsOption.tsx
+++ b/app/client/src/ce/pages/Applications/CreateNewAppsOption.tsx
@@ -61,6 +61,7 @@ import { TEMP_DATASOURCE_ID } from "constants/Datasource";
 import { fetchMockDatasources } from "actions/datasourceActions";
 import DatasourceForm from "pages/Editor/SaaSEditor/DatasourceForm";
 import type { Datasource } from "entities/Datasource";
+import { fetchingEnvironmentConfigs } from "@appsmith/actions/environmentAction";
 
 const SectionWrapper = styled.div`
   display: flex;
@@ -242,6 +243,9 @@ const CreateNewAppsOption = ({
       if (isEnabledForStartWithData) {
         dispatch(fetchPlugins());
         dispatch(fetchMockDatasources());
+        if (application?.workspaceId) {
+          dispatch(fetchingEnvironmentConfigs(application?.workspaceId, true));
+        }
         setUseType(START_WITH_TYPE.DATA);
       }
     } else {
diff --git a/app/client/src/sagas/DatasourcesSagas.ts b/app/client/src/sagas/DatasourcesSagas.ts
index 052863c0ca..91b0ff22c1 100644
--- a/app/client/src/sagas/DatasourcesSagas.ts
+++ b/app/client/src/sagas/DatasourcesSagas.ts
@@ -1157,6 +1157,9 @@ function* changeDatasourceSaga(
   const { datasource, shouldNotRedirect } = actionPayload.payload;
   const { id } = datasource;
   const draft: Record<string, unknown> = yield select(getDatasourceDraft, id);
+  const currentApplicationIdForCreateNewApp: string | undefined = yield select(
+    getCurrentApplicationIdForCreateNewApp,
+  );
   const pageId: string = yield select(getCurrentPageId);
   let data;
   if (isEmpty(draft)) {
@@ -1173,7 +1176,8 @@ function* changeDatasourceSaga(
     ),
   );
   // on reconnect modal, it shouldn't be redirected to datasource edit page
-  if (shouldNotRedirect) return;
+  // on create new app onboarding flow, it shouldn't redirect either
+  if (shouldNotRedirect || currentApplicationIdForCreateNewApp) return;
   // this redirects to the same route, so checking first.
   const datasourcePath = trimQueryString(
     datasourcesEditorIdURL({