diff --git a/src/Umbraco.Web.UI.Client/src/packages/data-type/workspace/data-type-workspace.context.ts b/src/Umbraco.Web.UI.Client/src/packages/data-type/workspace/data-type-workspace.context.ts
index 9164fb56d0..bcd771eea2 100644
--- a/src/Umbraco.Web.UI.Client/src/packages/data-type/workspace/data-type-workspace.context.ts
+++ b/src/Umbraco.Web.UI.Client/src/packages/data-type/workspace/data-type-workspace.context.ts
@@ -1,5 +1,5 @@
 import { UmbDataTypeDetailRepository } from '../repository/detail/data-type-detail.repository.js';
-import type { UmbDataTypeDetailModel } from '../types.js';
+import type { UmbDataTypeDetailModel, UmbDataTypePropertyModel } from '../types.js';
 import { UmbDataTypeWorkspaceEditorElement } from './data-type-workspace-editor.element.js';
 import type { UmbPropertyDatasetContext } from '@umbraco-cms/backoffice/property';
 import type {
@@ -14,7 +14,6 @@ import {
 } from '@umbraco-cms/backoffice/workspace';
 import {
 	appendToFrozenArray,
-	mergeObservables,
 	UmbArrayState,
 	UmbObjectState,
 	UmbStringState,
@@ -25,7 +24,6 @@ import type {
 	PropertyEditorSettingsProperty,
 } from '@umbraco-cms/backoffice/extension-registry';
 import { umbExtensionsRegistry } from '@umbraco-cms/backoffice/extension-registry';
-import { UMB_PROPERTY_EDITOR_SCHEMA_ALIAS_DEFAULT } from '@umbraco-cms/backoffice/property-editor';
 import { UMB_ACTION_EVENT_CONTEXT } from '@umbraco-cms/backoffice/action';
 import {
 	UmbRequestReloadChildrenOfEntityEvent,
@@ -65,9 +63,6 @@ export class UmbDataTypeWorkspaceContext
 	);
 	readonly properties = this.#properties.asObservable();
 
-	#defaults = new UmbArrayState<PropertyEditorSettingsDefaultData>([], (entry) => entry.alias);
-	readonly defaults = this.#defaults.asObservable();
-
 	#propertyEditorSchemaSettingsDefaultData: Array<PropertyEditorSettingsDefaultData> = [];
 	#propertyEditorUISettingsDefaultData: Array<PropertyEditorSettingsDefaultData> = [];
 
@@ -123,6 +118,13 @@ export class UmbDataTypeWorkspaceContext
 		super.resetState();
 		this.#persistedData.setValue(undefined);
 		this.#currentData.setValue(undefined);
+		this.#propertyEditorSchemaSettingsProperties = [];
+		this.#propertyEditorUISettingsProperties = [];
+		this.#propertyEditorSchemaSettingsDefaultData = [];
+		this.#propertyEditorUISettingsDefaultData = [];
+		this.#settingsDefaultData = undefined;
+
+		this._mergeConfigProperties();
 	}
 
 	#observePropertyEditorUIAlias() {
@@ -142,8 +144,10 @@ export class UmbDataTypeWorkspaceContext
 					await this.#observePropertyEditorSchemaAlias();
 				}
 
+				if (this.getIsNew()) {
+					this.#transferConfigDefaultData();
+				}
 				this._mergeConfigProperties();
-				this._mergeConfigDefaultData();
 			},
 			'editorUiAlias',
 		);
@@ -152,21 +156,18 @@ export class UmbDataTypeWorkspaceContext
 	#observePropertyEditorSchemaAlias() {
 		return this.observe(
 			this.propertyEditorSchemaAlias,
-			async (propertyEditorSchemaAlias) => {
-				if (!propertyEditorSchemaAlias) {
-					this.setPropertyEditorSchemaAlias(UMB_PROPERTY_EDITOR_SCHEMA_ALIAS_DEFAULT);
-					return;
-				}
-
-				await this.#setPropertyEditorSchemaConfig(propertyEditorSchemaAlias);
+			(propertyEditorSchemaAlias) => {
+				this.#setPropertyEditorSchemaConfig(propertyEditorSchemaAlias);
 			},
 			'schemaAlias',
 		).asPromise();
 	}
 
-	#setPropertyEditorSchemaConfig(propertyEditorSchemaAlias: string) {
-		return this.observe(
-			umbExtensionsRegistry.byTypeAndAlias('propertyEditorSchema', propertyEditorSchemaAlias),
+	#setPropertyEditorSchemaConfig(propertyEditorSchemaAlias?: string) {
+		this.observe(
+			propertyEditorSchemaAlias
+				? umbExtensionsRegistry.byTypeAndAlias('propertyEditorSchema', propertyEditorSchemaAlias)
+				: undefined,
 			(manifest) => {
 				// Maps properties to have a weight, so they can be sorted
 				this.#propertyEditorSchemaSettingsProperties = (manifest?.meta.settings?.properties ?? []).map((x, i) => ({
@@ -177,7 +178,7 @@ export class UmbDataTypeWorkspaceContext
 				this.#propertyEditorSchemaConfigDefaultUIAlias = manifest?.meta.defaultPropertyEditorUiAlias || null;
 			},
 			'schema',
-		).asPromise();
+		);
 	}
 
 	#setPropertyEditorUIConfig(propertyEditorUIAlias: string) {
@@ -208,14 +209,20 @@ export class UmbDataTypeWorkspaceContext
 		}
 	}
 
-	private _mergeConfigDefaultData() {
+	#transferConfigDefaultData() {
 		if (!this.#propertyEditorSchemaSettingsDefaultData || !this.#propertyEditorUISettingsDefaultData) return;
 
+		const data = this.#currentData.getValue();
+		if (!data) return;
+
 		this.#settingsDefaultData = [
 			...this.#propertyEditorSchemaSettingsDefaultData,
 			...this.#propertyEditorUISettingsDefaultData,
-		];
-		this.#defaults.setValue(this.#settingsDefaultData);
+		] satisfies Array<UmbDataTypePropertyModel>;
+		// We check for satisfied type, because we will be directly transferring them to become value. Future note, if they are not satisfied, we need to transfer alias and value. [NL]
+
+		this.#persistedData.update({ values: this.#settingsDefaultData });
+		this.#currentData.update({ values: this.#settingsDefaultData });
 	}
 
 	public getPropertyDefaultValue(alias: string) {
@@ -258,6 +265,7 @@ export class UmbDataTypeWorkspaceContext
 		this.#getDataPromise = request;
 		let { data } = await request;
 		if (!data) return undefined;
+
 		if (this.modalContext) {
 			data = { ...data, ...this.modalContext.data.preset };
 		}
@@ -295,19 +303,8 @@ export class UmbDataTypeWorkspaceContext
 
 	async propertyValueByAlias<ReturnType = unknown>(propertyAlias: string) {
 		await this.#getDataPromise;
-
-		return mergeObservables(
-			[
-				this.#currentData.asObservablePart(
-					(data) => data?.values?.find((x) => x.alias === propertyAlias)?.value as ReturnType,
-				),
-				this.#defaults.asObservablePart(
-					(defaults) => defaults?.find((x) => x.alias === propertyAlias)?.value as ReturnType,
-				),
-			],
-			([value, defaultValue]) => {
-				return value ?? defaultValue;
-			},
+		return this.#currentData.asObservablePart(
+			(data) => data?.values?.find((x) => x.alias === propertyAlias)?.value as ReturnType,
 		);
 	}
 
@@ -379,7 +376,6 @@ export class UmbDataTypeWorkspaceContext
 		this.#persistedData.destroy();
 		this.#currentData.destroy();
 		this.#properties.destroy();
-		this.#defaults.destroy();
 		this.#propertyEditorUiIcon.destroy();
 		this.#propertyEditorUiName.destroy();
 		this.repository.destroy();
diff --git a/src/Umbraco.Web.UI.Client/src/packages/data-type/workspace/views/details/data-type-details-workspace-view.element.ts b/src/Umbraco.Web.UI.Client/src/packages/data-type/workspace/views/details/data-type-details-workspace-view.element.ts
index a779b6a88a..8c1709bcaf 100644
--- a/src/Umbraco.Web.UI.Client/src/packages/data-type/workspace/views/details/data-type-details-workspace-view.element.ts
+++ b/src/Umbraco.Web.UI.Client/src/packages/data-type/workspace/views/details/data-type-details-workspace-view.element.ts
@@ -77,6 +77,13 @@ export class UmbDataTypeDetailsWorkspaceViewEditElement extends UmbLitElement im
 						: this.#renderChooseButton()}
 				</umb-property-layout>
 			</uui-box>
+			${this.#renderSettings()}
+		`;
+	}
+
+	#renderSettings() {
+		if (!this._propertyEditorUiAlias || !this._propertyEditorSchemaAlias) return nothing;
+		return html`
 			<uui-box headline=${this.localize.term('general_settings')}>
 				<umb-property-editor-config></umb-property-editor-config>
 			</uui-box>