diff --git a/app/client/src/pages/Editor/APIEditor/CommonEditorForm.tsx b/app/client/src/pages/Editor/APIEditor/CommonEditorForm.tsx
index 7e99a6a1ec..0f8794fa98 100644
--- a/app/client/src/pages/Editor/APIEditor/CommonEditorForm.tsx
+++ b/app/client/src/pages/Editor/APIEditor/CommonEditorForm.tsx
@@ -549,6 +549,8 @@ function CommonEditorForm(props: CommonFormPropsWithExtraParams) {
   // this gets the url of the current action's datasource
   const actionDatasourceUrl =
     currentActionConfig?.datasource?.datasourceConfiguration?.url || "";
+  const actionDatasourceUrlPath =
+    currentActionConfig?.actionConfiguration?.path || "";
   // this gets the name of the current action's datasource
   const actionDatasourceName = currentActionConfig?.datasource.name || "";
 
@@ -557,6 +559,7 @@ function CommonEditorForm(props: CommonFormPropsWithExtraParams) {
   // we block action execution.
   const blockExecution =
     (!actionDatasourceUrl &&
+      !actionDatasourceUrlPath &&
       actionDatasourceName === DEFAULT_DATASOURCE_NAME) ||
     !isExecutePermitted;