diff --git a/packages/odf/components/create-storage-system/create-storage-system-steps/backing-storage-step/backing-storage-step.tsx b/packages/odf/components/create-storage-system/create-storage-system-steps/backing-storage-step/backing-storage-step.tsx
index 5cf11d8bb..08d8d9c32 100644
--- a/packages/odf/components/create-storage-system/create-storage-system-steps/backing-storage-step/backing-storage-step.tsx
+++ b/packages/odf/components/create-storage-system/create-storage-system-steps/backing-storage-step/backing-storage-step.tsx
@@ -3,6 +3,7 @@ import {
   STORAGE_CLUSTER_SYSTEM_KIND,
   NO_PROVISIONER,
 } from '@odf/core/constants';
+import { PROVIDER_MODE } from '@odf/core/features';
 import { useSafeK8sGet } from '@odf/core/hooks';
 import { useODFNamespaceSelector } from '@odf/core/redux';
 import { scResource } from '@odf/core/resources';
@@ -25,6 +26,7 @@ import {
 } from '@odf/shared/types';
 import { useCustomTranslation } from '@odf/shared/useCustomTranslationHook';
 import { isDefaultClass, getODFCsv, getGVKLabel } from '@odf/shared/utils';
+import { useFlag } from '@openshift-console/dynamic-plugin-sdk';
 import * as _ from 'lodash-es';
 import {
   Form,
@@ -213,6 +215,7 @@ export const BackingStorage: React.FC<BackingStorageProps> = ({
 
   const isFullDeployment = deployment === DeploymentType.FULL;
   const isProviderMode = deployment === DeploymentType.PROVIDER_MODE;
+  const isProviderModePresent = useFlag(PROVIDER_MODE) && hasInternal;
   const isNonRHCSExternalType =
     type === BackingStorageType.EXTERNAL &&
     externalStorage !== StorageClusterModel.kind;
@@ -269,7 +272,7 @@ export const BackingStorage: React.FC<BackingStorageProps> = ({
      * Allow pre selecting the "external connection" option instead of the "existing" option
      * if an OCS Storage System is already created.
      */
-    if (hasOCS && allowedExternalStorage.length) {
+    if (hasOCS && allowedExternalStorage.length && !isProviderModePresent) {
       dispatch({
         type: 'backingStorage/setType',
         payload: BackingStorageType.EXTERNAL,
@@ -384,7 +387,11 @@ export const BackingStorage: React.FC<BackingStorageProps> = ({
             value={BackingStorageType.EXTERNAL}
             isChecked={type === BackingStorageType.EXTERNAL}
             onChange={(event, _unused) => onRadioSelect(_unused, event)}
-            isDisabled={allowedExternalStorage.length === 0 || isProviderMode}
+            isDisabled={
+              allowedExternalStorage.length === 0 ||
+              isProviderMode ||
+              isProviderModePresent
+            }
             body={
               showExternalStorageSelection && (
                 <ExternalSystemSelection