diff --git a/changelogs/fragments/6908.yml b/changelogs/fragments/6908.yml
new file mode 100644
index 00000000000..025eba9b10c
--- /dev/null
+++ b/changelogs/fragments/6908.yml
@@ -0,0 +1,2 @@
+fix:
+- Fix not setting the default data source when creating data source bug ([#6908](https://github.com/opensearch-project/OpenSearch-Dashboards/pull/6908))
\ No newline at end of file
diff --git a/src/plugins/data_source_management/public/components/utils.test.ts b/src/plugins/data_source_management/public/components/utils.test.ts
index ceeec875f10..1599454e7a1 100644
--- a/src/plugins/data_source_management/public/components/utils.test.ts
+++ b/src/plugins/data_source_management/public/components/utils.test.ts
@@ -369,6 +369,12 @@ describe('DataSourceManagement: Utils.ts', () => {
       await handleSetDefaultDatasource(savedObjects.client, uiSettings);
       expect(uiSettings.set).toHaveBeenCalled();
     });
+    test('should set default datasource when returned default datasource id is empty string', async () => {
+      mockUiSettingsCalls(uiSettings, 'get', '');
+      mockResponseForSavedObjectsCalls(savedObjects.client, 'find', getDataSourcesResponse);
+      await handleSetDefaultDatasource(savedObjects.client, uiSettings);
+      expect(uiSettings.set).toHaveBeenCalled();
+    });
     test('should not set default datasource when it has default datasouce', async () => {
       mockUiSettingsCalls(uiSettings, 'get', 'test');
       mockResponseForSavedObjectsCalls(savedObjects.client, 'find', getDataSourcesResponse);
diff --git a/src/plugins/data_source_management/public/components/utils.ts b/src/plugins/data_source_management/public/components/utils.ts
index 2de485d881b..1ace30bd8ea 100644
--- a/src/plugins/data_source_management/public/components/utils.ts
+++ b/src/plugins/data_source_management/public/components/utils.ts
@@ -79,7 +79,7 @@ export async function handleSetDefaultDatasource(
   savedObjectsClient: SavedObjectsClientContract,
   uiSettings: IUiSettingsClient
 ) {
-  if (getDefaultDataSourceId(uiSettings) === null) {
+  if (!getDefaultDataSourceId(uiSettings)) {
     return await setFirstDataSourceAsDefault(savedObjectsClient, uiSettings, false);
   }
 }