diff --git a/app/server/appsmith-server/src/main/java/com/appsmith/server/services/DatasourceServiceImpl.java b/app/server/appsmith-server/src/main/java/com/appsmith/server/services/DatasourceServiceImpl.java
index 94768901db..62eb289604 100644
--- a/app/server/appsmith-server/src/main/java/com/appsmith/server/services/DatasourceServiceImpl.java
+++ b/app/server/appsmith-server/src/main/java/com/appsmith/server/services/DatasourceServiceImpl.java
@@ -3,6 +3,7 @@ package com.appsmith.server.services;
 import com.appsmith.external.models.DatasourceConfiguration;
 import com.appsmith.external.models.DatasourceTestResult;
 import com.appsmith.external.plugins.PluginExecutor;
+import com.appsmith.server.constants.AnalyticsEvents;
 import com.appsmith.server.constants.FieldName;
 import com.appsmith.server.domains.Datasource;
 import com.appsmith.server.domains.Organization;
@@ -49,7 +50,7 @@ public class DatasourceServiceImpl extends BaseService<DatasourceRepository, Dat
                                  ReactiveMongoTemplate reactiveMongoTemplate,
                                  DatasourceRepository repository,
                                  OrganizationService organizationService,
-                                 AnalyticsService analyticsService,
+                                 AnalyticsService<Datasource> analyticsService,
                                  SessionUserService sessionUserService,
                                  ObjectMapper objectMapper,
                                  PluginService pluginService,
@@ -210,4 +211,18 @@ public class DatasourceServiceImpl extends BaseService<DatasourceRepository, Dat
                 .switchIfEmpty(Mono.error(new AppsmithException(AppsmithError.NO_RESOURCE_FOUND, FieldName.DATASOURCE, id)));
     }
 
+    @Override
+    public Mono<Datasource> delete(String id) {
+        Mono<Datasource> datasourceMono = repository.findById(id)
+                .switchIfEmpty(Mono.error(new AppsmithException(AppsmithError.NO_RESOURCE_FOUND, "datasource", id)));
+        return datasourceMono
+                .flatMap(toDelete -> repository.archive(toDelete).thenReturn(toDelete))
+                .flatMap(deletedObj ->
+                    analyticsService.sendEvent(
+                            AnalyticsEvents.DELETE + "_" + deletedObj.getClass().getSimpleName().toUpperCase(),
+                            deletedObj
+                    )
+                );
+    }
+
 }
diff --git a/app/server/appsmith-server/src/main/resources/public/appsmith/authz/acl.rego b/app/server/appsmith-server/src/main/resources/public/appsmith/authz/acl.rego
index c4626f3074..ac33bf3f45 100644
--- a/app/server/appsmith-server/src/main/resources/public/appsmith/authz/acl.rego
+++ b/app/server/appsmith-server/src/main/resources/public/appsmith/authz/acl.rego
@@ -85,6 +85,7 @@ authenticated_operations = [
     {"method": "GET", "resource": "datasources", "permission": "read:datasources"},
     {"method": "POST", "resource": "datasources", "permission": "create:datasources"},
     {"method": "PUT", "resource": "datasources", "permission": "update:datasources"},
+    {"method": "DELETE", "resource": "datasources", "permission": "delete:datasources"},
 
     {"method": "GET", "resource": "configs", "permission": "read:configs"},
     {"method": "POST", "resource": "configs", "permission": "create:configs"},
diff --git a/app/server/appsmith-server/src/main/resources/public/bundle.tar.gz b/app/server/appsmith-server/src/main/resources/public/bundle.tar.gz
index eafd2209ec..50c6dca17b 100644
Binary files a/app/server/appsmith-server/src/main/resources/public/bundle.tar.gz and b/app/server/appsmith-server/src/main/resources/public/bundle.tar.gz differ