diff --git a/pkg/appClone/AppCloneService.go b/pkg/appClone/AppCloneService.go
index 84ea6bb6d7..68fac6ef78 100644
--- a/pkg/appClone/AppCloneService.go
+++ b/pkg/appClone/AppCloneService.go
@@ -935,6 +935,8 @@ func (impl *AppCloneServiceImpl) CreateCiPipeline(req *cloneCiPipelineRequest) (
 			DockerRepository: templateOverride.DockerRepository,
 			CiBuildConfig:    ciBuildConfig,
 		}
+	} else if refCiPipeline.IsExternal {
+		ciPatchReq.CiPipeline.IsDockerConfigOverridden = false
 	}
 	return impl.pipelineBuilder.PatchCiPipeline(ciPatchReq)
 }
diff --git a/pkg/pipeline/CiCdPipelineOrchestrator.go b/pkg/pipeline/CiCdPipelineOrchestrator.go
index 7dfeb289ed..710dbe0562 100644
--- a/pkg/pipeline/CiCdPipelineOrchestrator.go
+++ b/pkg/pipeline/CiCdPipelineOrchestrator.go
@@ -991,7 +991,7 @@ func (impl CiCdPipelineOrchestratorImpl) CreateCiConf(createRequest *bean.CiConf
 				CiBuildConfig:      ciPipeline.DockerConfigOverride.CiBuildConfig,
 				UserId:             createRequest.UserId,
 			}
-			if !ciPipeline.IsExternal {
+			if !ciPipeline.IsExternal { //pipeline is not [linked, webhook] and overridden, then create template override
 				err = impl.createDockerRepoIfNeeded(ciPipeline.DockerConfigOverride.DockerRegistry, ciPipeline.DockerConfigOverride.DockerRepository)
 				if err != nil {
 					impl.logger.Errorw("error, createDockerRepoIfNeeded", "err", err, "dockerRegistryId", ciPipeline.DockerConfigOverride.DockerRegistry, "dockerRegistry", ciPipeline.DockerConfigOverride.DockerRepository)