diff --git a/app/server/appsmith-git/src/main/java/com/appsmith/git/service/ce/GitExecutorCEImpl.java b/app/server/appsmith-git/src/main/java/com/appsmith/git/service/ce/GitExecutorCEImpl.java
index d0c71d7028..bf0f3ab349 100644
--- a/app/server/appsmith-git/src/main/java/com/appsmith/git/service/ce/GitExecutorCEImpl.java
+++ b/app/server/appsmith-git/src/main/java/com/appsmith/git/service/ce/GitExecutorCEImpl.java
@@ -224,10 +224,8 @@ public class GitExecutorCEImpl implements GitExecutor {
         // open the repo
         Path baseRepoPath = createRepoPath(repoSuffix);
 
-        return gitConfig
-                .getIsAtomicPushAllowed()
-                .flatMap(isAtomicPushAllowed -> {
-                    return Mono.using(
+        return gitConfig.getIsAtomicPushAllowed().flatMap(isAtomicPushAllowed -> {
+            return Mono.using(
                             () -> Git.open(baseRepoPath.toFile()),
                             git -> Mono.fromCallable(() -> {
                                         log.debug(Thread.currentThread().getName() + ": pushing changes to remote "
@@ -265,9 +263,12 @@ public class GitExecutorCEImpl implements GitExecutor {
                                     .timeout(Duration.ofMillis(Constraint.TIMEOUT_MILLIS))
                                     .name(GitSpan.FS_PUSH)
                                     .tap(Micrometer.observation(observationRegistry)),
-                            Git::close);
-                })
-                .subscribeOn(scheduler);
+                            Git::close)
+                    // this subscribeOn on is required because Mono.using
+                    // is not deferring the execution of push and for that reason it runs on the
+                    // lettuce-nioEventLoop thread instead of boundedElastic
+                    .subscribeOn(scheduler);
+        });
     }
 
     /** Clone the repo to the file path : container-volume/orgId/defaultAppId/repo/<Data>
diff --git a/app/server/appsmith-server/src/main/java/com/appsmith/server/helpers/ce/CommonGitFileUtilsCE.java b/app/server/appsmith-server/src/main/java/com/appsmith/server/helpers/ce/CommonGitFileUtilsCE.java
index a648871bb1..5cfd3c2a2b 100644
--- a/app/server/appsmith-server/src/main/java/com/appsmith/server/helpers/ce/CommonGitFileUtilsCE.java
+++ b/app/server/appsmith-server/src/main/java/com/appsmith/server/helpers/ce/CommonGitFileUtilsCE.java
@@ -34,6 +34,7 @@ import org.springframework.context.annotation.Import;
 import org.springframework.stereotype.Component;
 import reactor.core.Exceptions;
 import reactor.core.publisher.Mono;
+import reactor.core.scheduler.Schedulers;
 
 import java.io.IOException;
 import java.nio.file.Path;
@@ -93,7 +94,9 @@ public class CommonGitFileUtilsCE {
 
         // Save application to git repo
         try {
-            return fileUtils.saveApplicationToGitRepo(baseRepoSuffix, artifactGitReference, branchName);
+            return fileUtils
+                    .saveApplicationToGitRepo(baseRepoSuffix, artifactGitReference, branchName)
+                    .subscribeOn(Schedulers.boundedElastic());
         } catch (IOException | GitAPIException e) {
             log.error("Error occurred while saving files to local git repo: ", e);
             throw Exceptions.propagate(e);