diff --git a/app/client/cypress/e2e/Regression/ClientSide/BugTests/Bug25148_Spec.ts b/app/client/cypress/e2e/Regression/ClientSide/BugTests/Bug25148_Spec.ts
new file mode 100644
index 0000000000..7fdbeffd69
--- /dev/null
+++ b/app/client/cypress/e2e/Regression/ClientSide/BugTests/Bug25148_Spec.ts
@@ -0,0 +1,23 @@
+import * as _ from "../../../../support/Objects/ObjectsCore";
+
+const { agHelper, apiPage, dataSources } = _;
+let dsName: any;
+
+describe("Bug 25148 - Edit Datasource button was disabled on Authentication tab of Api action", () => {
+  it("1. Checking if the Edit datasource button is enabled or not", () => {
+    dataSources.NavigateToDSCreateNew();
+    agHelper.GenerateUUID();
+    cy.get("@guid").then((uid) => {
+      dsName = "AuthAPI " + uid;
+      dataSources.CreatePlugIn("Authenticated API");
+      agHelper.RenameWithInPane(dsName, false);
+      dataSources.FillAuthAPIUrl();
+      dataSources.SaveDatasource();
+      apiPage.CreateApi("API" + uid, "GET", true);
+      apiPage.SelectPaneTab("Authentication");
+      agHelper.AssertElementEnabledDisabled(apiPage._saveAsDS, 0, false);
+      // Last one if present on the authentication tab.
+      agHelper.AssertElementEnabledDisabled(apiPage._saveAsDS, 1, false);
+    });
+  });
+});
diff --git a/app/client/src/pages/Editor/APIEditor/ApiAuthentication.tsx b/app/client/src/pages/Editor/APIEditor/ApiAuthentication.tsx
index c5408f9812..8f421c5e78 100644
--- a/app/client/src/pages/Editor/APIEditor/ApiAuthentication.tsx
+++ b/app/client/src/pages/Editor/APIEditor/ApiAuthentication.tsx
@@ -149,6 +149,10 @@ const mapStateToProps = (state: AppState, ownProps: any): ReduxStateProps => {
         datasourceFromDataSourceList.datasourceStorages[
           currentEnvironment
         ].datasourceId;
+
+      // Adding user permissions for datasource from datasourceFromDataSourceList
+      datasourceMerged.userPermissions =
+        datasourceFromDataSourceList.userPermissions || [];
     }
   }