diff --git a/app/server/appsmith-server/src/main/java/com/appsmith/server/services/ce/ApplicationServiceCEImpl.java b/app/server/appsmith-server/src/main/java/com/appsmith/server/services/ce/ApplicationServiceCEImpl.java
index decb9719a9..a4d53c4f15 100644
--- a/app/server/appsmith-server/src/main/java/com/appsmith/server/services/ce/ApplicationServiceCEImpl.java
+++ b/app/server/appsmith-server/src/main/java/com/appsmith/server/services/ce/ApplicationServiceCEImpl.java
@@ -281,6 +281,7 @@ public class ApplicationServiceCEImpl extends BaseService<ApplicationRepository,
                             }
                             return Mono.error(error);
                         })
+                        .flatMap(application1 -> this.setTransientFields(application1))
                         .flatMap(application1 -> {
                             final Map<String, Object> eventData = Map.of(
                                     FieldName.APP_MODE, ApplicationMode.EDIT.toString(),
diff --git a/app/server/appsmith-server/src/test/java/com/appsmith/server/services/ce/ApplicationServiceCETest.java b/app/server/appsmith-server/src/test/java/com/appsmith/server/services/ce/ApplicationServiceCETest.java
index 8d59745fe4..10793194f7 100644
--- a/app/server/appsmith-server/src/test/java/com/appsmith/server/services/ce/ApplicationServiceCETest.java
+++ b/app/server/appsmith-server/src/test/java/com/appsmith/server/services/ce/ApplicationServiceCETest.java
@@ -3298,4 +3298,92 @@ public class ApplicationServiceCETest {
                 .verifyComplete();
 
     }
+
+
+    /**
+     * Test case which proves the non-dependency of isPublic Field in Update Application API Response
+     * on the deprecated Application collection isPublic field for a public application
+     * The following steps are followed:
+     *  1. Create a new app
+     *  2. Invoke the changeViewAccess method to set the App "Public"
+     *  3. Invoke the update method and assert the "isPublic" field in the response
+     */
+    @Test
+    @WithUserDetails(value = "api_user")
+    public void validPublicAppUpdateApplication() {
+        Application application = new Application();
+        application.setName("validPublicAppUpdateApplication-Test");
+
+        Application createdApplication = applicationPageService.createApplication(application, workspaceId).block();
+
+        /**
+         * Making the App public using changeViewAccess method which changes the permission groups of the app to allow public access
+         */
+        ApplicationAccessDTO applicationAccessDTO = new ApplicationAccessDTO();
+        applicationAccessDTO.setPublicAccess(true);
+        Application publicAccessApplication = applicationService.changeViewAccess(createdApplication.getId(), applicationAccessDTO).block();
+
+        /**
+         * setIsPublic to False, purposely set to prove non-dependency on this field of the output
+         */
+        publicAccessApplication.setIsPublic(false);
+
+        /**
+         * Using the Update App method and asserting the response to verify the isPublic field in the response is True
+         * which proves it's non-dependency on the deprecated Application collection isPublic field
+         * and shows it dependency on the actual app permissions and state of the app which has been set public in this case
+        **/
+        Mono<Application> updatedApplication = applicationService.update(createdApplication.getId(), publicAccessApplication);
+        StepVerifier.create(updatedApplication)
+                .assertNext(t -> {
+                    assertThat(t).isNotNull();
+                    assertThat(t.getId()).isNotNull();
+                    assertThat(t.getIsPublic()).isTrue();
+                })
+                .verifyComplete();
+    }
+
+    /**
+     * Test case which proves the non-dependency of isPublic Field in Update Application API Response
+     * on the deprecated Application collection isPublic field for a public application
+     * The following steps are followed:
+     *  1. Create a new app
+     *  2. Invoke the changeViewAccess method to set the App "Public"
+     *  3. Invoke the update method and assert the "isPublic" field in the response
+     */
+    @Test
+    @WithUserDetails(value = "api_user")
+    public void validPrivateAppUpdateApplication() {
+        Application application = new Application();
+        application.setName("validPrivateAppUpdateApplication-Test");
+
+        Application createdApplication = applicationPageService.createApplication(application, workspaceId).block();
+
+        /**
+         * Making the App private using changeViewAccess method which changes the permission groups of the app to restrict public access
+         */
+        ApplicationAccessDTO applicationAccessDTO = new ApplicationAccessDTO();
+        applicationAccessDTO.setPublicAccess(false);
+
+        Application privateAccessApplication = applicationService.changeViewAccess(createdApplication.getId(), applicationAccessDTO).block();
+
+        /**
+         * setIsPublic to True, purposely set to prove non-dependency on this field of the output
+         */
+        privateAccessApplication.setIsPublic(true);
+
+        /**
+         * Using the Update App method and asserting the response to verify the isPublic field in the response is False
+         * which proves it's non-dependency on the deprecated Application collection isPublic field
+         * and shows it dependency on the actual app permissions and state of the app which has been set private in this case
+         **/
+        Mono<Application> updatedApplication = applicationService.update(createdApplication.getId(), privateAccessApplication);
+        StepVerifier.create(updatedApplication)
+                .assertNext(t -> {
+                    assertThat(t).isNotNull();
+                    assertThat(t.getId()).isNotNull();
+                    assertThat(t.getIsPublic()).isFalse();
+                })
+                .verifyComplete();
+    }
 }