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 33e757f4b9..993986e58e 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
@@ -227,14 +227,35 @@ export class UmbDataTypeWorkspaceContext
 		const data = this._data.getCurrent();
 		if (!data) return;
 
+		// We are going to transfer the default data from the schema and the UI (the UI can override the schema data).
+		// Let us figure out which editors are alike from the inherited data, so we can keep that data around and only transfer the data that is not
+		// inherited from the previous data type.
 		this.#settingsDefaultData = [
 			...this.#propertyEditorSchemaSettingsDefaultData,
 			...this.#propertyEditorUISettingsDefaultData,
 		] satisfies Array<UmbDataTypePropertyValueModel>;
-		// 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._data.updatePersisted({ values: this.#settingsDefaultData });
-		this._data.updateCurrent({ values: this.#settingsDefaultData });
+		const values: Array<UmbDataTypePropertyValueModel> = [];
+
+		// We want to keep the existing data, if it is not in the default data, and if it is in the default data, then we want to keep the default data.
+		for (const defaultDataItem of this.#properties.getValue()) {
+			// We are matching on the alias, as we assume that the alias is unique for the data type.
+			// TODO: Consider if we should also match on the editorAlias just to be on the safe side [JOV]
+			const existingData = data.values?.find((x) => x.alias === defaultDataItem.alias);
+			if (existingData) {
+				values.push(existingData);
+				continue;
+			}
+
+			// If the data is not in the existing data, then we want to add the default data if it exists.
+			const existingDefaultData = this.#settingsDefaultData.find((x) => x.alias === defaultDataItem.alias);
+			if (existingDefaultData) {
+				values.push(existingDefaultData);
+			}
+		}
+
+		this._data.updatePersisted({ values });
+		this._data.updateCurrent({ values });
 	}
 
 	public getPropertyDefaultValue(alias: string) {
diff --git a/tests/Umbraco.Tests.AcceptanceTest/tests/DefaultConfig/DataType/DataType.spec.ts b/tests/Umbraco.Tests.AcceptanceTest/tests/DefaultConfig/DataType/DataType.spec.ts
index 82c0d392e7..f32dd850bf 100644
--- a/tests/Umbraco.Tests.AcceptanceTest/tests/DefaultConfig/DataType/DataType.spec.ts
+++ b/tests/Umbraco.Tests.AcceptanceTest/tests/DefaultConfig/DataType/DataType.spec.ts
@@ -65,8 +65,9 @@ test('can change property editor in a data type', {tag: '@smoke'}, async ({umbra
   const updatedEditorName = 'Text Area';
   const updatedEditorAlias = 'Umbraco.TextArea';
   const updatedEditorUiAlias = 'Umb.PropertyEditorUi.TextArea';
+  const maxChars = 999;
 
-  await umbracoApi.dataType.createTextstringDataType(dataTypeName);
+  await umbracoApi.dataType.createTextstringDataType(dataTypeName, maxChars);
   expect(await umbracoApi.dataType.doesNameExist(dataTypeName)).toBeTruthy();
 
   // Act
@@ -81,6 +82,9 @@ test('can change property editor in a data type', {tag: '@smoke'}, async ({umbra
   const dataTypeData = await umbracoApi.dataType.getByName(dataTypeName);
   expect(dataTypeData.editorAlias).toBe(updatedEditorAlias);
   expect(dataTypeData.editorUiAlias).toBe(updatedEditorUiAlias);
+
+  const maxCharsSetting = dataTypeData.values.find((x: {alias: string, value: unknown}) => x.alias === 'maxChars');
+  expect(maxCharsSetting.value, 'Stored configuration should be transferred').toBe(maxChars);
 });
 
 test('cannot create a data type without selecting the property editor', {tag: '@smoke'}, async ({umbracoApi, umbracoUi}) => {