diff --git a/app/client/cypress/integration/Smoke_TestSuite/ClientSideTests/ExplorerTests/Entity_Explorer_Query_Datasource_spec.js b/app/client/cypress/integration/Smoke_TestSuite/ClientSideTests/ExplorerTests/Entity_Explorer_Query_Datasource_spec.js
index 263c16e894..f08798d041 100644
--- a/app/client/cypress/integration/Smoke_TestSuite/ClientSideTests/ExplorerTests/Entity_Explorer_Query_Datasource_spec.js
+++ b/app/client/cypress/integration/Smoke_TestSuite/ClientSideTests/ExplorerTests/Entity_Explorer_Query_Datasource_spec.js
@@ -120,6 +120,7 @@ describe("Entity explorer tests related to query and datasource", function() {
       .click({ force: true });
     cy.contains(".t--datasource-name", datasourceName).click();
     cy.get(".t--delete-datasource").click();
+    cy.get("[data-cy=t--confirm-modal-btn]").click();
     cy.wait("@deleteDatasource").should(
       "have.nested.property",
       "response.body.responseMeta.status",
diff --git a/app/client/cypress/integration/Smoke_TestSuite/ServerSideTests/ExplorerTests/Entity_Explorer_CopyQuery_RenameDatasource_spec.js b/app/client/cypress/integration/Smoke_TestSuite/ServerSideTests/ExplorerTests/Entity_Explorer_CopyQuery_RenameDatasource_spec.js
index 1cbe239508..ac5a6e9b3d 100644
--- a/app/client/cypress/integration/Smoke_TestSuite/ServerSideTests/ExplorerTests/Entity_Explorer_CopyQuery_RenameDatasource_spec.js
+++ b/app/client/cypress/integration/Smoke_TestSuite/ServerSideTests/ExplorerTests/Entity_Explorer_CopyQuery_RenameDatasource_spec.js
@@ -94,6 +94,7 @@ describe("Entity explorer tests related to copy query", function() {
       cy.wait(2000);
       cy.hoverAndClick();
       cy.get(apiwidget.delete).click({ force: true });
+      cy.get("[data-cy=t--confirm-modal-btn]").click();
       //This is check to make sure if a datasource is active 409
       cy.wait("@deleteDatasource").should(
         "have.nested.property",
diff --git a/app/client/cypress/integration/Smoke_TestSuite/ServerSideTests/QueryPane/Mongo_Spec.js b/app/client/cypress/integration/Smoke_TestSuite/ServerSideTests/QueryPane/Mongo_Spec.js
index 599ed9c69f..e87565b250 100644
--- a/app/client/cypress/integration/Smoke_TestSuite/ServerSideTests/QueryPane/Mongo_Spec.js
+++ b/app/client/cypress/integration/Smoke_TestSuite/ServerSideTests/QueryPane/Mongo_Spec.js
@@ -196,6 +196,7 @@ describe("Create a query with a mongo datasource, run, save and then delete the
     cy.NavigateToActiveTab();
     cy.contains(".t--datasource-name", datasourceName).click();
     cy.get(".t--delete-datasource").click();
+    cy.get("[data-cy=t--confirm-modal-btn]").click();
     cy.wait("@deleteDatasource").should(
       "have.nested.property",
       "response.body.responseMeta.status",
@@ -288,6 +289,7 @@ describe("Create a query with a mongo datasource, run, save and then delete the
     cy.NavigateToActiveTab();
     cy.contains(".t--datasource-name", datasourceName).click();
     cy.get(".t--delete-datasource").click();
+    cy.get("[data-cy=t--confirm-modal-btn]").click();
     // cy.wait("@deleteDatasource").should(
     //   "have.nested.property",
     //   "response.body.responseMeta.status",
diff --git a/app/client/cypress/support/commands.js b/app/client/cypress/support/commands.js
index e36b59efd5..d4405b5139 100644
--- a/app/client/cypress/support/commands.js
+++ b/app/client/cypress/support/commands.js
@@ -2186,6 +2186,7 @@ Cypress.Commands.add("testSaveDeleteDatasource", () => {
         .click();
       // delete datasource
       cy.get(".t--delete-datasource").click();
+      cy.get("[data-cy=t--confirm-modal-btn]").click();
       cy.wait("@deleteDatasource").should(
         "have.nested.property",
         "response.body.responseMeta.status",
@@ -2504,6 +2505,7 @@ Cypress.Commands.add("deleteDatasource", (datasourceName) => {
     .click({ force: true });
   cy.contains(".t--datasource-name", datasourceName).click();
   cy.get(".t--delete-datasource").click();
+  cy.get("[data-cy=t--confirm-modal-btn]").click();
   cy.wait("@deleteDatasource").should(
     "have.nested.property",
     "response.body.responseMeta.status",
@@ -2581,6 +2583,7 @@ Cypress.Commands.add("deleteJSObject", () => {
 Cypress.Commands.add("deleteDataSource", () => {
   cy.hoverAndClick();
   cy.get(apiwidget.delete).click({ force: true });
+  cy.get("[data-cy=t--confirm-modal-btn]").click();
   cy.wait("@deleteDatasource").should(
     "have.nested.property",
     "response.body.responseMeta.status",
diff --git a/app/client/src/actions/pluginActionActions.ts b/app/client/src/actions/pluginActionActions.ts
index 5744efb6dc..fc3adebcc6 100644
--- a/app/client/src/actions/pluginActionActions.ts
+++ b/app/client/src/actions/pluginActionActions.ts
@@ -89,22 +89,22 @@ export const runAction = (id: string, paginationField?: PaginationField) => {
   };
 };
 
-export const showRunActionConfirmModal = (show: boolean) => {
+export const showActionConfirmationModal = (show: boolean) => {
   return {
-    type: ReduxActionTypes.SHOW_RUN_ACTION_CONFIRM_MODAL,
+    type: ReduxActionTypes.SHOW_ACTION_MODAL,
     payload: show,
   };
 };
 
-export const cancelRunActionConfirmModal = () => {
+export const cancelActionConfirmationModal = () => {
   return {
-    type: ReduxActionTypes.CANCEL_RUN_ACTION_CONFIRM_MODAL,
+    type: ReduxActionTypes.CANCEL_ACTION_MODAL,
   };
 };
 
-export const acceptRunActionConfirmModal = () => {
+export const acceptActionConfirmationModal = () => {
   return {
-    type: ReduxActionTypes.ACCEPT_RUN_ACTION_CONFIRM_MODAL,
+    type: ReduxActionTypes.CONFIRM_ACTION_MODAL,
   };
 };
 
diff --git a/app/client/src/constants/ReduxActionConstants.tsx b/app/client/src/constants/ReduxActionConstants.tsx
index ec9f438666..34b2429448 100644
--- a/app/client/src/constants/ReduxActionConstants.tsx
+++ b/app/client/src/constants/ReduxActionConstants.tsx
@@ -260,9 +260,9 @@ export const ReduxActionTypes = {
   DELETE_ACTION_INIT: "DELETE_ACTION_INIT",
   SET_DATASOURCE_EDITOR_MODE: "SET_DATASOURCE_EDITOR_MODE",
   DELETE_ACTION_SUCCESS: "DELETE_ACTION_SUCCESS",
-  SHOW_RUN_ACTION_CONFIRM_MODAL: "SHOW_RUN_ACTION_CONFIRM_MODAL",
-  CANCEL_RUN_ACTION_CONFIRM_MODAL: "CANCEL_RUN_ACTION_CONFIRM_MODAL",
-  ACCEPT_RUN_ACTION_CONFIRM_MODAL: "ACCEPT_RUN_ACTION_CONFIRM_MODAL",
+  SHOW_ACTION_MODAL: "SHOW_ACTION_MODAL",
+  CANCEL_ACTION_MODAL: "CANCEL_ACTION_MODAL",
+  CONFIRM_ACTION_MODAL: "CONFIRM_ACTION_MODAL",
   CREATE_QUERY_INIT: "CREATE_QUERY_INIT",
   ONBOARDING_CREATE_APPLICATION: "ONBOARDING_CREATE_APPLICATION",
   FETCH_DATASOURCES_INIT: "FETCH_DATASOURCES_INIT",
@@ -295,6 +295,7 @@ export const ReduxActionTypes = {
   HISTORY_PUSH: "HISTORY_PUSH",
   DELETE_DATASOURCE_INIT: "DELETE_DATASOURCE_INIT",
   DELETE_DATASOURCE_SUCCESS: "DELETE_DATASOURCE_SUCCESS",
+  DELETE_DATASOURCE_CANCELLED: "DELETE_DATASOURCE_CANCELLED",
   STORE_AS_DATASOURCE_INIT: "STORE_AS_DATASOURCE_INIT",
   STORE_AS_DATASOURCE_UPDATE: "STORE_AS_DATASOURCE_UPDATE",
   STORE_AS_DATASOURCE_COMPLETE: "STORE_AS_DATASOURCE_COMPLETE",
diff --git a/app/client/src/pages/AppViewer/AppViewerPageContainer.tsx b/app/client/src/pages/AppViewer/AppViewerPageContainer.tsx
index 333cc1c2d1..487b642b9d 100644
--- a/app/client/src/pages/AppViewer/AppViewerPageContainer.tsx
+++ b/app/client/src/pages/AppViewer/AppViewerPageContainer.tsx
@@ -14,7 +14,7 @@ import {
   getCurrentApplicationId,
   getCurrentPageName,
 } from "selectors/editorSelectors";
-import ConfirmRunModal from "pages/Editor/ConfirmRunModal";
+import RequestConfirmationModal from "pages/Editor/RequestConfirmationModal";
 import { getCurrentApplication } from "selectors/applicationSelectors";
 import {
   isPermitted,
@@ -110,7 +110,7 @@ class AppViewerPageContainer extends Component<AppViewerPageContainerProps> {
             pageId={this.props.match.params.pageId}
             pageName={this.props.currentPageName}
           />
-          <ConfirmRunModal />
+          <RequestConfirmationModal />
         </Section>
       );
     }
diff --git a/app/client/src/pages/Editor/APIEditor/ApiRightPane.tsx b/app/client/src/pages/Editor/APIEditor/ApiRightPane.tsx
index 4a03d2ef0f..0392b5fc62 100644
--- a/app/client/src/pages/Editor/APIEditor/ApiRightPane.tsx
+++ b/app/client/src/pages/Editor/APIEditor/ApiRightPane.tsx
@@ -128,7 +128,8 @@ const SelectedDatasourceInfoContainer = styled.div`
   align-items: center;
   padding: 2px 8px;
   background-color: ${Colors.LIGHT_GREEN_CYAN};
-  margin-right: 5px;
+  margin-right: 2px;
+  margin-left: 3px;
   text-transform: uppercase;
   & p {
     font-style: normal;
@@ -141,6 +142,7 @@ const SelectedDatasourceInfoContainer = styled.div`
     letter-spacing: 0.4px;
     text-transform: uppercase;
     color: ${Colors.GREEN};
+    white-space: nowrap;
   }
 `;
 
diff --git a/app/client/src/pages/Editor/ConfirmRunModal.tsx b/app/client/src/pages/Editor/RequestConfirmationModal.tsx
similarity index 81%
rename from app/client/src/pages/Editor/ConfirmRunModal.tsx
rename to app/client/src/pages/Editor/RequestConfirmationModal.tsx
index b370b25855..9748853ac4 100644
--- a/app/client/src/pages/Editor/ConfirmRunModal.tsx
+++ b/app/client/src/pages/Editor/RequestConfirmationModal.tsx
@@ -3,9 +3,9 @@ import { connect } from "react-redux";
 import { AppState } from "reducers";
 import { Keys } from "@blueprintjs/core";
 import {
-  showRunActionConfirmModal,
-  cancelRunActionConfirmModal,
-  acceptRunActionConfirmModal,
+  showActionConfirmationModal,
+  cancelActionConfirmationModal,
+  acceptActionConfirmationModal,
 } from "actions/pluginActionActions";
 import DialogComponent from "components/ads/DialogComponent";
 import styled from "styled-components";
@@ -33,7 +33,7 @@ const ModalFooter = styled.div`
   }
 `;
 
-class ConfirmRunModal extends React.Component<Props> {
+class RequestConfirmationModal extends React.Component<Props> {
   addEventListener = () => {
     document.addEventListener("keydown", this.onKeyUp);
   };
@@ -50,14 +50,14 @@ class ConfirmRunModal extends React.Component<Props> {
 
   onConfirm = () => {
     const { dispatch } = this.props;
-    dispatch(acceptRunActionConfirmModal());
+    dispatch(acceptActionConfirmationModal());
     this.handleClose();
   };
 
   handleClose = () => {
     const { dispatch } = this.props;
-    dispatch(showRunActionConfirmModal(false));
-    dispatch(cancelRunActionConfirmModal());
+    dispatch(showActionConfirmationModal(false));
+    dispatch(cancelActionConfirmationModal());
   };
 
   componentDidUpdate() {
@@ -85,8 +85,9 @@ class ConfirmRunModal extends React.Component<Props> {
         <ModalFooter>
           <Button
             category={Category.tertiary}
+            cypressSelector="t--cancel-modal-btn"
             onClick={() => {
-              dispatch(cancelRunActionConfirmModal());
+              dispatch(cancelActionConfirmationModal());
               this.handleClose();
             }}
             size={Size.medium}
@@ -96,6 +97,7 @@ class ConfirmRunModal extends React.Component<Props> {
           />
           <Button
             category={Category.primary}
+            cypressSelector="t--confirm-modal-btn"
             onClick={this.onConfirm}
             size={Size.medium}
             tag="button"
@@ -112,4 +114,4 @@ const mapStateToProps = (state: AppState) => ({
   isModalOpen: state.ui.confirmRunAction.modalOpen,
 });
 
-export default connect(mapStateToProps)(ConfirmRunModal);
+export default connect(mapStateToProps)(RequestConfirmationModal);
diff --git a/app/client/src/pages/Editor/index.tsx b/app/client/src/pages/Editor/index.tsx
index ada8b512ec..55bf3633e6 100644
--- a/app/client/src/pages/Editor/index.tsx
+++ b/app/client/src/pages/Editor/index.tsx
@@ -20,7 +20,7 @@ import { editorInitializer } from "utils/EditorUtils";
 import CenteredWrapper from "components/designSystems/appsmith/CenteredWrapper";
 import { getCurrentUser } from "selectors/usersSelectors";
 import { User } from "constants/userConstants";
-import ConfirmRunModal from "pages/Editor/ConfirmRunModal";
+import RequestConfirmationModal from "pages/Editor/RequestConfirmationModal";
 import * as Sentry from "@sentry/react";
 import { getTheme, ThemeMode } from "selectors/themeSelectors";
 import { ThemeProvider } from "styled-components";
@@ -228,7 +228,7 @@ class Editor extends Component<Props> {
               <RepoLimitExceededErrorModal />
             </GlobalHotKeys>
           </div>
-          <ConfirmRunModal />
+          <RequestConfirmationModal />
         </DndProvider>
       </ThemeProvider>
     );
diff --git a/app/client/src/reducers/entityReducers/datasourceReducer.ts b/app/client/src/reducers/entityReducers/datasourceReducer.ts
index 95eec94f2d..adfad4213d 100644
--- a/app/client/src/reducers/entityReducers/datasourceReducer.ts
+++ b/app/client/src/reducers/entityReducers/datasourceReducer.ts
@@ -197,6 +197,14 @@ const datasourceReducer = createReducer(initialState, {
       ),
     };
   },
+  [ReduxActionTypes.DELETE_DATASOURCE_CANCELLED]: (
+    state: DatasourceDataState,
+  ) => {
+    return {
+      ...state,
+      isDeleting: false,
+    };
+  },
   [ReduxActionTypes.CREATE_DATASOURCE_SUCCESS]: (
     state: DatasourceDataState,
     action: ReduxAction<Datasource>,
diff --git a/app/client/src/reducers/uiReducers/confirmRunActionReducer.ts b/app/client/src/reducers/uiReducers/confirmRunActionReducer.ts
index 96c4a6bd6b..d5ed1fbb87 100644
--- a/app/client/src/reducers/uiReducers/confirmRunActionReducer.ts
+++ b/app/client/src/reducers/uiReducers/confirmRunActionReducer.ts
@@ -6,7 +6,7 @@ const initialState: ConfirmRunActionReduxState = {
 };
 
 const confirmRunActionReducer = createReducer(initialState, {
-  [ReduxActionTypes.SHOW_RUN_ACTION_CONFIRM_MODAL]: (
+  [ReduxActionTypes.SHOW_ACTION_MODAL]: (
     state: ConfirmRunActionReduxState,
     action: ReduxAction<boolean>,
   ) => {
diff --git a/app/client/src/reducers/uiReducers/explorerReducer.ts b/app/client/src/reducers/uiReducers/explorerReducer.ts
index 6d51a62c80..9e1ec95e74 100644
--- a/app/client/src/reducers/uiReducers/explorerReducer.ts
+++ b/app/client/src/reducers/uiReducers/explorerReducer.ts
@@ -113,6 +113,7 @@ const explorerReducer = createReducer(initialState, {
   [ReduxActionTypes.DELETE_DATASOURCE_INIT]: setUpdatingDatasourceEntity,
   [ReduxActionErrorTypes.DELETE_DATASOURCE_ERROR]: setEntityUpdateError,
   [ReduxActionTypes.DELETE_DATASOURCE_SUCCESS]: setEntityUpdateSuccess,
+  [ReduxActionTypes.DELETE_DATASOURCE_CANCELLED]: setEntityUpdateSuccess,
 
   [ReduxActionTypes.UPDATE_DATASOURCE_INIT]: setUpdatingDatasourceEntity,
   [ReduxActionErrorTypes.UPDATE_DATASOURCE_ERROR]: setEntityUpdateError,
diff --git a/app/client/src/sagas/ActionExecution/PluginActionSaga.ts b/app/client/src/sagas/ActionExecution/PluginActionSaga.ts
index a3c3102575..d6d51191ca 100644
--- a/app/client/src/sagas/ActionExecution/PluginActionSaga.ts
+++ b/app/client/src/sagas/ActionExecution/PluginActionSaga.ts
@@ -1,18 +1,9 @@
-import {
-  all,
-  call,
-  put,
-  race,
-  select,
-  take,
-  takeLatest,
-} from "redux-saga/effects";
+import { all, call, put, select, take, takeLatest } from "redux-saga/effects";
 import {
   executePluginActionError,
   executePluginActionRequest,
   executePluginActionSuccess,
   runAction,
-  showRunActionConfirmModal,
   updateAction,
 } from "actions/pluginActionActions";
 import {
@@ -102,6 +93,7 @@ import {
   executeAppAction,
   TriggerMeta,
 } from "sagas/ActionExecution/ActionExecutionSagas";
+import { requestModalConfirmationSaga } from "sagas/UtilSagas";
 
 enum ActionResponseDataTypes {
   BINARY = "BINARY",
@@ -237,17 +229,6 @@ function* evaluateActionParams(
   return mapToPropList(actionParams);
 }
 
-function* confirmRunActionSaga() {
-  yield put(showRunActionConfirmModal(true));
-
-  const { accept } = yield race({
-    cancel: take(ReduxActionTypes.CANCEL_RUN_ACTION_CONFIRM_MODAL),
-    accept: take(ReduxActionTypes.ACCEPT_RUN_ACTION_CONFIRM_MODAL),
-  });
-
-  return !!accept;
-}
-
 export default function* executePluginActionTriggerSaga(
   pluginAction: RunPluginActionDescription["payload"],
   eventType: EventType,
@@ -700,7 +681,7 @@ function* executePluginActionSaga(
   }
 
   if (pluginAction.confirmBeforeExecute) {
-    const confirmed = yield call(confirmRunActionSaga);
+    const confirmed = yield call(requestModalConfirmationSaga);
     if (!confirmed) {
       yield put({
         type: ReduxActionTypes.RUN_ACTION_CANCELLED,
diff --git a/app/client/src/sagas/DatasourcesSagas.ts b/app/client/src/sagas/DatasourcesSagas.ts
index 24a8eff1a9..f05bac7995 100644
--- a/app/client/src/sagas/DatasourcesSagas.ts
+++ b/app/client/src/sagas/DatasourcesSagas.ts
@@ -95,6 +95,7 @@ import { inGuidedTour } from "selectors/onboardingSelectors";
 import { updateReplayEntity } from "actions/pageActions";
 import OAuthApi from "api/OAuthApi";
 import { AppState } from "reducers";
+import { requestModalConfirmationSaga } from "sagas/UtilSagas";
 
 function* fetchDatasourcesSaga() {
   try {
@@ -212,6 +213,15 @@ export function* deleteDatasourceSaga(
   actionPayload: ReduxActionWithCallbacks<{ id: string }, unknown, unknown>,
 ) {
   try {
+    // request confirmation from user before deleting datasource.
+    const confirmed = yield call(requestModalConfirmationSaga);
+
+    if (!confirmed) {
+      return yield put({
+        type: ReduxActionTypes.DELETE_DATASOURCE_CANCELLED,
+      });
+    }
+
     const id = actionPayload.payload.id;
     const response: GenericApiResponse<Datasource> = yield DatasourcesApi.deleteDatasource(
       id,
diff --git a/app/client/src/sagas/UtilSagas.ts b/app/client/src/sagas/UtilSagas.ts
index 05385c5845..1cf9e29e5e 100644
--- a/app/client/src/sagas/UtilSagas.ts
+++ b/app/client/src/sagas/UtilSagas.ts
@@ -1,6 +1,7 @@
-import { all, takeEvery } from "redux-saga/effects";
+import { all, takeEvery, race, put, take } from "redux-saga/effects";
 import { ReduxAction, ReduxActionTypes } from "constants/ReduxActionConstants";
 import history from "utils/history";
+import { showActionConfirmationModal } from "actions/pluginActionActions";
 
 function* redirectWindowLocationSaga(
   actionPayload: ReduxAction<{ url: string }>,
@@ -21,3 +22,14 @@ export default function* root() {
     ),
   ]);
 }
+
+export function* requestModalConfirmationSaga() {
+  yield put(showActionConfirmationModal(true));
+
+  const { accept } = yield race({
+    cancel: take(ReduxActionTypes.CANCEL_ACTION_MODAL),
+    accept: take(ReduxActionTypes.CONFIRM_ACTION_MODAL),
+  });
+
+  return !!accept;
+}