diff --git a/app/server/appsmith-server/src/main/java/com/appsmith/server/domains/Application.java b/app/server/appsmith-server/src/main/java/com/appsmith/server/domains/Application.java
index 7ef804c03a..7da580c899 100644
--- a/app/server/appsmith-server/src/main/java/com/appsmith/server/domains/Application.java
+++ b/app/server/appsmith-server/src/main/java/com/appsmith/server/domains/Application.java
@@ -123,6 +123,8 @@ public class Application extends BaseDomain {
     @JsonIgnore
     AppPositioning unpublishedAppPositioning;
 
+    Boolean collapseInvisibleWidgets;
+
     /**
      * Earlier this was returning value of the updatedAt property in the base domain.
      * As this property is modified by the framework when there is any change in domain,
@@ -192,6 +194,7 @@ public class Application extends BaseDomain {
         this.unpublishedNavigationSetting = application.getUnpublishedNavigationSetting() == null ? null : new NavigationSetting();
         this.publishedNavigationSetting = application.getPublishedNavigationSetting() == null ? null : new NavigationSetting();
         this.unpublishedCustomJSLibs = application.getUnpublishedCustomJSLibs();
+        this.collapseInvisibleWidgets = application.getCollapseInvisibleWidgets();
     }
 
     public void exportApplicationPages(final Map<String, String> pageIdToNameMap) {
diff --git a/app/server/appsmith-server/src/main/java/com/appsmith/server/services/ce/ApplicationPageServiceCEImpl.java b/app/server/appsmith-server/src/main/java/com/appsmith/server/services/ce/ApplicationPageServiceCEImpl.java
index 2f4bbb6224..d290edb877 100644
--- a/app/server/appsmith-server/src/main/java/com/appsmith/server/services/ce/ApplicationPageServiceCEImpl.java
+++ b/app/server/appsmith-server/src/main/java/com/appsmith/server/services/ce/ApplicationPageServiceCEImpl.java
@@ -318,6 +318,7 @@ public class ApplicationPageServiceCEImpl implements ApplicationPageServiceCE {
 
         application.setPublishedPages(new ArrayList<>());
         application.setUnpublishedCustomJSLibs(new HashSet<>());
+        application.setCollapseInvisibleWidgets(Boolean.TRUE);
 
         // For all new applications being created, set it to use the latest evaluation version.
         application.setEvaluationVersion(EVALUATION_VERSION);
diff --git a/app/server/appsmith-server/src/test/java/com/appsmith/server/services/ce/ApplicationServiceCETest.java b/app/server/appsmith-server/src/test/java/com/appsmith/server/services/ce/ApplicationServiceCETest.java
index 4db22e5a6e..3354570827 100644
--- a/app/server/appsmith-server/src/test/java/com/appsmith/server/services/ce/ApplicationServiceCETest.java
+++ b/app/server/appsmith-server/src/test/java/com/appsmith/server/services/ce/ApplicationServiceCETest.java
@@ -345,6 +345,7 @@ public class ApplicationServiceCETest {
                     assertThat(application.getColor()).isNotEmpty();
                     assertThat(application.getEditModeThemeId()).isEqualTo(defaultThemeId);
                     assertThat(application.getPublishedModeThemeId()).isEqualTo(defaultThemeId);
+                    assertThat(application.getCollapseInvisibleWidgets()).isEqualTo(TRUE);
 
                     List<PermissionGroup> permissionGroups = tuple2.getT3();
                     PermissionGroup adminPermissionGroup = permissionGroups.stream()