diff --git a/app/client/cypress/e2e/Regression/ServerSide/ApiTests/API_EvaluatedValue_spec.ts b/app/client/cypress/e2e/Regression/ServerSide/ApiTests/API_EvaluatedValue_spec.ts
new file mode 100644
index 0000000000..57813f9388
--- /dev/null
+++ b/app/client/cypress/e2e/Regression/ServerSide/ApiTests/API_EvaluatedValue_spec.ts
@@ -0,0 +1,10 @@
+import { ObjectsRegistry } from "../../../../support/Objects/Registry";
+
+const apiPage = ObjectsRegistry.ApiPage;
+
+describe("Validate API URL Evaluated value", () => {
+  it("1. Check if url object does not crash App", () => {
+    apiPage.CreateApi("FirstAPI");
+    apiPage.EnterURL(`{{{"key": "value"}}}`, true, `{"key":"value"}`);
+  });
+});
diff --git a/app/client/cypress/support/Pages/ApiPage.ts b/app/client/cypress/support/Pages/ApiPage.ts
index d5bf3a03a6..cdfdcd9697 100644
--- a/app/client/cypress/support/Pages/ApiPage.ts
+++ b/app/client/cypress/support/Pages/ApiPage.ts
@@ -129,13 +129,17 @@ export class ApiPage {
     cy.get(this._apiRunBtn).should(query);
   }
 
-  EnterURL(url: string) {
+  EnterURL(url: string, validateEvaluatedValue = false, evaluatedValue = "") {
     this.agHelper.EnterValue(url, {
       propFieldName: this._resourceUrl,
       directInput: true,
       inputFieldName: "",
     });
     this.agHelper.AssertAutoSave();
+
+    if (validateEvaluatedValue) {
+      this.agHelper.VerifyEvaluatedValue(evaluatedValue);
+    }
   }
 
   EnterHeader(hKey: string, hValue: string, index = 0) {
diff --git a/app/client/src/components/editorComponents/form/fields/EmbeddedDatasourcePathField.tsx b/app/client/src/components/editorComponents/form/fields/EmbeddedDatasourcePathField.tsx
index 9b3d7807d7..b1b172a2bf 100644
--- a/app/client/src/components/editorComponents/form/fields/EmbeddedDatasourcePathField.tsx
+++ b/app/client/src/components/editorComponents/form/fields/EmbeddedDatasourcePathField.tsx
@@ -57,6 +57,7 @@ import LazyCodeEditor from "components/editorComponents/LazyCodeEditor";
 import { getCodeMirrorNamespaceFromEditor } from "utils/getCodeMirrorNamespace";
 import { isDynamicValue } from "utils/DynamicBindingUtils";
 import { DEFAULT_DATASOURCE_NAME } from "constants/ApiEditorConstants/ApiEditorConstants";
+import { isString } from "lodash";
 
 type ReduxStateProps = {
   workspaceId: string;
@@ -397,9 +398,14 @@ class EmbeddedDatasourcePathComponent extends React.Component<
     if ("ENTITY_TYPE" in entity && entity.ENTITY_TYPE === ENTITY_TYPE.ACTION) {
       let evaluatedPath = "path" in entity.config ? entity.config.path : "";
 
-      if (evaluatedPath && evaluatedPath.indexOf("?") > -1) {
-        evaluatedPath = extractApiUrlPath(evaluatedPath);
+      if (evaluatedPath) {
+        if (isString(evaluatedPath) && evaluatedPath.indexOf("?") > -1) {
+          evaluatedPath = extractApiUrlPath(evaluatedPath);
+        } else {
+          evaluatedPath = JSON.stringify(evaluatedPath);
+        }
       }
+
       const evaluatedQueryParameters = entity?.config?.queryParameters
         ?.filter((p: KeyValuePair) => !!p?.key)
         .map(