diff --git a/app/server/appsmith-server/src/main/java/com/appsmith/server/services/MockDataServiceImpl.java b/app/server/appsmith-server/src/main/java/com/appsmith/server/services/MockDataServiceImpl.java
index 5fb62fb3c4..874741cf66 100644
--- a/app/server/appsmith-server/src/main/java/com/appsmith/server/services/MockDataServiceImpl.java
+++ b/app/server/appsmith-server/src/main/java/com/appsmith/server/services/MockDataServiceImpl.java
@@ -15,6 +15,7 @@ import com.appsmith.server.dtos.ResponseDTO;
 import lombok.extern.slf4j.Slf4j;
 import org.springframework.beans.factory.annotation.Autowired;
 import org.springframework.core.ParameterizedTypeReference;
+import org.springframework.dao.DuplicateKeyException;
 import org.springframework.stereotype.Service;
 import org.springframework.util.StringUtils;
 import org.springframework.web.reactive.function.client.WebClient;
@@ -90,7 +91,7 @@ public class MockDataServiceImpl implements MockDataService {
             datasource.setPluginId(mockDataSource.getPluginId());
             datasource.setName(mockDataSource.getName().toUpperCase(Locale.ROOT)+" - Mock");
             datasource.setDatasourceConfiguration(datasourceConfiguration);
-            return datasourceService.create(datasource);
+            return createSuffixedDatasource(datasource);
         });
 
     }
@@ -158,4 +159,29 @@ public class MockDataServiceImpl implements MockDataService {
         return datasourceConfiguration;
     }
 
+    private Mono<Datasource> createSuffixedDatasource(Datasource datasource) {
+        return createSuffixedDatasource(datasource, datasource.getName(), 0);
+    }
+
+    /**
+     * Tries to create the given datasource with the name, over and over again with an incremented suffix, but **only**
+     * if the error is because of a name clash.
+     * @param datasource Datasource to try create.
+     * @param name Name of the datasource, to which numbered suffixes will be appended.
+     * @param suffix Suffix used for appending, recursion artifact. Usually set to 0.
+     * @return A Mono that yields the created datasource.
+     */
+    private Mono<Datasource> createSuffixedDatasource(Datasource datasource, String name, int suffix) {
+        final String actualName = name + (suffix == 0 ? "" : " (" + suffix + ")");
+        datasource.setName(actualName);
+        return datasourceService.create(datasource)
+                .onErrorResume(DuplicateKeyException.class, error -> {
+                    if (error.getMessage() != null
+                            && error.getMessage().contains("organization_datasource_deleted_compound_index")) {
+                        return createSuffixedDatasource(datasource, name, 1 + suffix);
+                    }
+                    throw error;
+                });
+    }
+
 }
diff --git a/app/server/appsmith-server/src/test/java/com/appsmith/server/services/MockDataServiceTest.java b/app/server/appsmith-server/src/test/java/com/appsmith/server/services/MockDataServiceTest.java
index 2e679f19ad..d7305e1869 100644
--- a/app/server/appsmith-server/src/test/java/com/appsmith/server/services/MockDataServiceTest.java
+++ b/app/server/appsmith-server/src/test/java/com/appsmith/server/services/MockDataServiceTest.java
@@ -3,6 +3,7 @@ package com.appsmith.server.services;
 import com.appsmith.external.models.DBAuth;
 import com.appsmith.external.models.Policy;
 import com.appsmith.server.acl.AclPermission;
+import com.appsmith.server.domains.Datasource;
 import com.appsmith.server.domains.Organization;
 import com.appsmith.server.domains.Plugin;
 import com.appsmith.server.dtos.MockDataSource;
@@ -96,7 +97,7 @@ public class MockDataServiceTest {
                 .assertNext(createdDatasource -> {
                     assertThat(createdDatasource.getId()).isNotEmpty();
                     assertThat(createdDatasource.getPluginId()).isEqualTo(pluginMono.getId());
-                    assertThat(createdDatasource.getName()).isEqualTo("MOVIES - Mock");
+                    assertThat(createdDatasource.getName()).isEqualTo("MOVIES - Mock (2)");
                     Policy manageDatasourcePolicy = Policy.builder().permission(MANAGE_DATASOURCES.getValue())
                             .users(Set.of("api_user"))
                             .build();
@@ -154,4 +155,47 @@ public class MockDataServiceTest {
                 })
                 .verifyComplete();
     }
+
+    @Test
+    @WithUserDetails(value = "api_user")
+    public void testCreateMockDataSetsDuplicateName() {
+
+        Mockito.when(pluginExecutorHelper.getPluginExecutor(Mockito.any())).thenReturn(Mono.just(new MockPluginExecutor()));
+
+        Plugin pluginMono = pluginService.findByName("Installed Plugin Name").block();
+        MockDataSource mockDataSource = new MockDataSource();
+        mockDataSource.setName("movies");
+        mockDataSource.setOrganizationId(orgId);
+        mockDataSource.setPackageName("mongo-plugin");
+        mockDataSource.setPluginId(pluginMono.getId());
+
+        Mono<Datasource> datasourceMono = mockDataService.createMockDataSet(mockDataSource)
+                .flatMap(datasource -> mockDataService.createMockDataSet(mockDataSource));
+
+        StepVerifier
+                .create(datasourceMono)
+                .assertNext(createdDatasource -> {
+                    assertThat(createdDatasource.getId()).isNotEmpty();
+                    assertThat(createdDatasource.getPluginId()).isEqualTo(pluginMono.getId());
+                    assertThat(createdDatasource.getName()).isEqualTo("MOVIES - Mock (1)");
+                    Policy manageDatasourcePolicy = Policy.builder().permission(MANAGE_DATASOURCES.getValue())
+                            .users(Set.of("api_user"))
+                            .build();
+                    Policy readDatasourcePolicy = Policy.builder().permission(READ_DATASOURCES.getValue())
+                            .users(Set.of("api_user"))
+                            .build();
+                    Policy executeDatasourcePolicy = Policy.builder().permission(EXECUTE_DATASOURCES.getValue())
+                            .users(Set.of("api_user"))
+                            .build();
+
+                    DBAuth auth = (DBAuth) createdDatasource.getDatasourceConfiguration().getAuthentication();
+                    assertThat(createdDatasource.getPolicies()).isNotEmpty();
+                    assertThat(createdDatasource.getPolicies()).containsAll(Set.of(manageDatasourcePolicy, readDatasourcePolicy, executeDatasourcePolicy));
+                    assertThat(createdDatasource.getDatasourceConfiguration().getProperties().get(0).getValue()).isEqualTo("Yes");
+                    assertThat(createdDatasource.getDatasourceConfiguration().getProperties().get(0).getKey()).isEqualTo("Use Mongo Connection String URI");
+                    assertThat(auth.getDatabaseName()).isEqualTo("movies");
+                    assertThat(auth.getUsername()).isEqualTo("mockdb-admin");
+                })
+                .verifyComplete();
+    }
 }