diff --git a/app/client/cypress/integration/Smoke_TestSuite/ClientSideTests/Onboarding/CreateNewApp_spec.js b/app/client/cypress/integration/Smoke_TestSuite/ClientSideTests/Onboarding/CreateNewApp_spec.js
new file mode 100644
index 0000000000..6db9c30c78
--- /dev/null
+++ b/app/client/cypress/integration/Smoke_TestSuite/ClientSideTests/Onboarding/CreateNewApp_spec.js
@@ -0,0 +1,20 @@
+const explorerLocators = require("../../../../locators/explorerlocators.json");
+const guidedTourLocators = require("../../../../locators/GuidedTour.json");
+const commonlocators = require("../../../../locators/commonlocators.json");
+const homePage = require("../../../../locators/HomePage");
+
+describe("Creating new app after discontinuing guided tour should not start the same", function() {
+  it("Creating new app after discontinuing guided tour should not start the same", function() {
+    // Start guided tour
+    cy.get(commonlocators.homeIcon).click({ force: true });
+    cy.get(guidedTourLocators.welcomeTour).click();
+    cy.get(guidedTourLocators.startBuilding).should("be.visible");
+    // Go back to applications page
+    cy.get(commonlocators.homeIcon).click({ force: true });
+    cy.get(homePage.createNewAppButton)
+      .first()
+      .click();
+    // Check if explorer is visible, explorer is collapsed initialy in guided tour
+    cy.get(explorerLocators.entityExplorer).should("be.visible");
+  });
+});
diff --git a/app/client/cypress/locators/HomePage.js b/app/client/cypress/locators/HomePage.js
index 447667d6d2..a5d9861160 100644
--- a/app/client/cypress/locators/HomePage.js
+++ b/app/client/cypress/locators/HomePage.js
@@ -17,6 +17,7 @@ export default {
   forkAppOrgButton: "[data-cy=t--fork-app-to-org-button]",
   selectAction: "#Base",
   deleteApp: "[data-cy=t--delete]",
+  createNewAppButton: ".t--new-button",
   deleteAppConfirm: "[data-cy=t--delete-confirm]",
   homeIcon: ".t--appsmith-logo",
   inputAppName: "input[name=applicationName]",
diff --git a/app/client/cypress/locators/explorerlocators.json b/app/client/cypress/locators/explorerlocators.json
index 149c35590b..2db4c4304f 100644
--- a/app/client/cypress/locators/explorerlocators.json
+++ b/app/client/cypress/locators/explorerlocators.json
@@ -5,10 +5,10 @@
     "AddPage": ".pages .t--entity-add-btn",
     "addEntityAPI": ".datasources .t--entity-add-btn",
     "addEntityJSEditor": ".js_actions .t--entity-add-btn",
+    "entityExplorer": ".t--entity-explorer",
     "entityWidget": ".t--entity-name:contains('WIDGETS')",
     "entityTable": ".t--entity-name:contains('Table1')",
     "entityText": ".t--entity-name:contains('Text1')",
-    "entityExplorer": ".t--nav-link-entity-explorer",
     "popover": "//div[contains(@class,'t--entity page')]//*[local-name()='g' and @id='Icon/Outline/more-vertical']",
     "datsourceEntityPopover": "//div[contains(@class,'t--entity datasource')]//*[local-name()='g' and @id='Icon/Outline/more-vertical']",
     "editName": ".single-select >div:contains('Edit Name')",
diff --git a/app/client/cypress/support/commands.js b/app/client/cypress/support/commands.js
index 0f530e3e86..4cee123947 100644
--- a/app/client/cypress/support/commands.js
+++ b/app/client/cypress/support/commands.js
@@ -649,13 +649,6 @@ Cypress.Commands.add("NavigateToAPI_Panel", () => {
   cy.get("#loading").should("not.exist");
 });
 
-Cypress.Commands.add("NavigateToEntityExplorer", () => {
-  cy.get(explorer.entityExplorer)
-    .should("be.visible")
-    .click({ force: true });
-  cy.get("#loading").should("not.exist");
-});
-
 Cypress.Commands.add("CreateAPI", (apiname) => {
   cy.get(explorer.createNew).click({ force: true });
   cy.get(explorer.blankAPI).click({ force: true });
diff --git a/app/client/src/sagas/InitSagas.ts b/app/client/src/sagas/InitSagas.ts
index 8c176dfba0..0278221a1b 100644
--- a/app/client/src/sagas/InitSagas.ts
+++ b/app/client/src/sagas/InitSagas.ts
@@ -65,6 +65,8 @@ import {
   updateBranchLocally,
 } from "actions/gitSyncActions";
 import { getCurrentGitBranch } from "selectors/gitSyncSelectors";
+import { enableGuidedTour } from "actions/onboardingActions";
+import { setPreviewModeAction } from "actions/editorActions";
 
 function* failFastApiCalls(
   triggerActions: Array<ReduxAction<unknown> | ReduxActionWithoutPayload>,
@@ -392,6 +394,13 @@ export function* initializeAppViewerSaga(
 function* resetEditorSaga() {
   yield put(resetEditorSuccess());
   yield put(resetRecentEntities());
+  // End guided tour once user exits editor
+  yield put(enableGuidedTour(false));
+  // Reset to edit mode once user exits editor
+  // Without doing this if the user creates a new app they
+  // might end up in preview mode if they were in preview mode
+  // previously
+  yield put(setPreviewModeAction(false));
 }
 
 export function* waitForInit() {
diff --git a/app/server/appsmith-server/src/main/resources/docker-compose.yml b/app/server/appsmith-server/src/main/resources/docker-compose.yml
index 36a611c01b..21381f6826 100644
--- a/app/server/appsmith-server/src/main/resources/docker-compose.yml
+++ b/app/server/appsmith-server/src/main/resources/docker-compose.yml
@@ -18,4 +18,4 @@ services:
     volumes:
       - /var/run/docker.sock:/var/run/docker.sock
     # Update check interval in seconds.
-    command: --interval 300 --label-enable --cleanup
+    command: --interval 300 --label-enable --cleanup
\ No newline at end of file
diff --git a/deploy/aws_ami/docker-compose.yml b/deploy/aws_ami/docker-compose.yml
index 5092da8be3..9e933f2995 100644
--- a/deploy/aws_ami/docker-compose.yml
+++ b/deploy/aws_ami/docker-compose.yml
@@ -20,4 +20,4 @@ services:
       - /var/run/docker.sock:/var/run/docker.sock
     # Update check every hour.
     command: --schedule "0 0 * ? * *" --label-enable --cleanup
-    restart: unless-stopped
+    restart: unless-stopped
\ No newline at end of file
diff --git a/deploy/docker/README.md b/deploy/docker/README.md
index 02161c1165..3ac2ab224e 100644
--- a/deploy/docker/README.md
+++ b/deploy/docker/README.md
@@ -188,4 +188,4 @@ To learn more, please refer to [Supervisor's documentation](http://supervisord.o
 
 ## Troubleshooting
 
-If you encounter any errors during this process, please reach out to [**support@appsmith.com**](mailto:support@appsmith.com) or join our [Discord Server](https://discord.com/invite/rBTTVJp) and reach out on the #support channel.
+If you encounter any errors during this process, please reach out to [**support@appsmith.com**](mailto:support@appsmith.com) or join our [Discord Server](https://discord.com/invite/rBTTVJp) and reach out on the #support channel.
\ No newline at end of file
diff --git a/deploy/docker/docker-compose.yml b/deploy/docker/docker-compose.yml
index fc5ac26b88..b3f67d1bdd 100644
--- a/deploy/docker/docker-compose.yml
+++ b/deploy/docker/docker-compose.yml
@@ -18,4 +18,4 @@ services:
     volumes:
       - /var/run/docker.sock:/var/run/docker.sock
     # Update check every hour.
-    command: --schedule "0 0 * ? * *" --label-enable --cleanup
+    command: --schedule "0 0 * ? * *" --label-enable --cleanup
\ No newline at end of file