diff --git a/app/client/src/transformers/RestActionTransformer.ts b/app/client/src/transformers/RestActionTransformer.ts
index 827a903e6c..d23ddaac56 100644
--- a/app/client/src/transformers/RestActionTransformer.ts
+++ b/app/client/src/transformers/RestActionTransformer.ts
@@ -44,16 +44,10 @@ export const transformRestAction = (data: any): any => {
         contentType = contentTypeHeader.value;
       }
     }
-    let body: any = "";
 
-    if (
-      contentType !== POST_BODY_FORMAT_OPTIONS[1].value &&
-      contentType !== POST_BODY_FORMAT_OPTIONS[2].value
-    ) {
-      action.actionConfiguration.bodyFormData = undefined;
-      if (action.actionConfiguration.body)
-        body = action.actionConfiguration.body || undefined;
-    }
+    let body: any = "";
+    if (action.actionConfiguration.body)
+      body = action.actionConfiguration.body || undefined;
 
     if (!_.isString(body)) body = JSON.stringify(body);
     action = {
diff --git a/app/client/src/transformers/RestActionTransformers.test.ts b/app/client/src/transformers/RestActionTransformers.test.ts
index 91ee9c4fc3..4fc2a0cdef 100644
--- a/app/client/src/transformers/RestActionTransformers.test.ts
+++ b/app/client/src/transformers/RestActionTransformers.test.ts
@@ -102,6 +102,60 @@ describe("Api action transformer", () => {
     expect(result).toEqual(output);
   });
 
+  it("bodyFormData should not be reset for non xxx-form-encoded-data type", () => {
+    const input = {
+      ...BASE_ACTION,
+      actionConfiguration: {
+        ...BASE_ACTION.actionConfiguration,
+        httpMethod: "POST",
+        headers: [{ key: "content-type", value: "application/json" }],
+        body: "{ name: 'test' }",
+        bodyFormData: [{ key: "key", value: "value" }],
+      },
+    };
+    const output = {
+      ...BASE_ACTION,
+      actionConfiguration: {
+        ...BASE_ACTION.actionConfiguration,
+        httpMethod: "POST",
+        headers: [{ key: "content-type", value: "application/json" }],
+        body: "{ name: 'test' }",
+        bodyFormData: [{ key: "key", value: "value" }],
+      },
+    };
+    const result = transformRestAction(input);
+    expect(result).toEqual(output);
+  });
+
+  it("body should not be reset for xxx-form-encoded-data type", () => {
+    const input = {
+      ...BASE_ACTION,
+      actionConfiguration: {
+        ...BASE_ACTION.actionConfiguration,
+        httpMethod: "POST",
+        headers: [
+          { key: "content-type", value: POST_BODY_FORMAT_OPTIONS[1].value },
+        ],
+        bodyFormData: [{ key: "key", value: "value" }],
+        body: "{ name: 'test' }",
+      },
+    };
+    const output = {
+      ...BASE_ACTION,
+      actionConfiguration: {
+        ...BASE_ACTION.actionConfiguration,
+        httpMethod: "POST",
+        headers: [
+          { key: "content-type", value: POST_BODY_FORMAT_OPTIONS[1].value },
+        ],
+        body: "{ name: 'test' }",
+        bodyFormData: [{ key: "key", value: "value" }],
+      },
+    };
+    const result = transformRestAction(input);
+    expect(result).toEqual(output);
+  });
+
   it("Sets the correct body for xxx-form-encoded-data display type", () => {
     const input = {
       ...BASE_ACTION,