diff --git a/app/client/package.json b/app/client/package.json
index 91f497ea9d..185ff7a7bd 100644
--- a/app/client/package.json
+++ b/app/client/package.json
@@ -146,6 +146,7 @@
     "marked": "^4.0.18",
     "memoize-one": "^6.0.0",
     "micro-memoize": "^4.0.10",
+    "microdiff": "^1.4.0",
     "moment": "2.29.4",
     "moment-timezone": "^0.5.35",
     "nanoid": "^2.0.4",
diff --git a/app/client/src/ce/workers/Evaluation/evaluationUtils.ts b/app/client/src/ce/workers/Evaluation/evaluationUtils.ts
index 1df27bf905..344afcb72e 100644
--- a/app/client/src/ce/workers/Evaluation/evaluationUtils.ts
+++ b/app/client/src/ce/workers/Evaluation/evaluationUtils.ts
@@ -992,3 +992,30 @@ export const isNotEntity = (entity: DataTreeEntity) => {
 export const isEntityAction = (entity: DataTreeEntity) => {
   return isAction(entity);
 };
+export const convertMicroDiffToDeepDiff = (
+  microDiffDifferences: Record<string, any>[],
+) =>
+  microDiffDifferences.map((v: Record<string, any>) => {
+    const { oldValue, path, type, value } = v;
+    //convert microDiff format to deepDiff format
+    if (type === "CREATE") {
+      return {
+        kind: "N",
+        path,
+        rhs: value,
+      };
+    }
+    if (type === "REMOVE") {
+      return {
+        kind: "D",
+        path,
+        lhs: oldValue,
+      };
+    }
+    return {
+      kind: "E",
+      path,
+      lhs: oldValue,
+      rhs: value,
+    };
+  });
diff --git a/app/client/src/workers/common/DataTreeEvaluator/index.ts b/app/client/src/workers/common/DataTreeEvaluator/index.ts
index 100d955ae0..c8c9f5c233 100644
--- a/app/client/src/workers/common/DataTreeEvaluator/index.ts
+++ b/app/client/src/workers/common/DataTreeEvaluator/index.ts
@@ -37,6 +37,7 @@ import type {
 import { EvaluationSubstitutionType } from "entities/DataTree/dataTreeFactory";
 import { ENTITY_TYPE } from "@appsmith/entities/DataTree/types";
 import type { DataTreeDiff } from "@appsmith/workers/Evaluation/evaluationUtils";
+import { convertMicroDiffToDeepDiff } from "@appsmith/workers/Evaluation/evaluationUtils";
 
 import {
   addDependantsOfNestedPropertyPaths,
@@ -127,6 +128,7 @@ import { DependencyMapUtils } from "entities/DependencyMap/DependencyMapUtils";
 import { isWidgetActionOrJsObject } from "@appsmith/entities/DataTree/utils";
 import DataStore from "workers/Evaluation/dataStore";
 import { updateTreeWithData } from "workers/Evaluation/dataStore/utils";
+import microDiff from "microdiff";
 import {
   profileFn,
   type WebworkerSpanData,
@@ -501,7 +503,6 @@ export default class DataTreeEvaluator {
     //get difference in js collection body to be parsed
     const oldUnEvalTreeJSCollections = getJSEntities(this.oldUnEvalTree);
     const localUnEvalTreeJSCollection = getJSEntities(localUnEvalTree);
-
     const jsDifferences: Diff<
       Record<string, JSActionEntity>,
       Record<string, JSActionEntity>
@@ -509,12 +510,13 @@ export default class DataTreeEvaluator {
       "SetupUpdateTree.Diff1",
       undefined,
       webworkerTelemetry,
-      () => {
-        return (
-          diff(oldUnEvalTreeJSCollections, localUnEvalTreeJSCollection) || []
-        );
-      },
+      () =>
+        convertMicroDiffToDeepDiff(
+          microDiff(oldUnEvalTreeJSCollections, localUnEvalTreeJSCollection) ||
+            [],
+        ),
     );
+
     const jsTranslatedDiffs = flatten(
       jsDifferences.map((diff) =>
         translateDiffEventToDataTreeDiffEvent(diff, localUnEvalTree),
diff --git a/app/client/yarn.lock b/app/client/yarn.lock
index b0b1b6c1e1..8f5471a465 100644
--- a/app/client/yarn.lock
+++ b/app/client/yarn.lock
@@ -13314,6 +13314,7 @@ __metadata:
     marked: ^4.0.18
     memoize-one: ^6.0.0
     micro-memoize: ^4.0.10
+    microdiff: ^1.4.0
     moment: 2.29.4
     moment-timezone: ^0.5.35
     msw: ^0.28.0
@@ -24707,6 +24708,13 @@ __metadata:
   languageName: node
   linkType: hard
 
+"microdiff@npm:^1.4.0":
+  version: 1.4.0
+  resolution: "microdiff@npm:1.4.0"
+  checksum: 4cae2ec4d0540b65656837a7c47a17d6428a1be2909d268a579921183c9c21a86e0dfa0c8ade8c60f9127887783a17d54ce7be16d5556708a0e58312bca8803d
+  languageName: node
+  linkType: hard
+
 "micromatch@npm:4.0.5, micromatch@npm:^4.0.0, micromatch@npm:^4.0.2, micromatch@npm:^4.0.4, micromatch@npm:^4.0.5":
   version: 4.0.5
   resolution: "micromatch@npm:4.0.5"