diff --git a/tests/e2e/pageobjects/dashboard/Dashboard.ts b/tests/e2e/pageobjects/dashboard/Dashboard.ts
index 15b001a459d..3bd48875b3f 100644
--- a/tests/e2e/pageobjects/dashboard/Dashboard.ts
+++ b/tests/e2e/pageobjects/dashboard/Dashboard.ts
@@ -1,5 +1,5 @@
 /** *******************************************************************
- * copyright (c) 2019-2023 Red Hat, Inc.
+ * copyright (c) 2019-2024 Red Hat, Inc.
  *
  * This program and the accompanying materials are made
  * available under the terms of the Eclipse Public License 2.0
@@ -38,6 +38,7 @@ export class Dashboard {
 		browserVersion: 'browser-version',
 		username: 'username'
 	};
+	private static readonly CONTINUE_WITH_DEFAULT_DEVFILE_BUTTON: By = By.xpath('//button[text()="Continue with default devfile"]');
 
 	constructor(
 		@inject(CLASSES.DriverHelper)
@@ -184,6 +185,12 @@ export class Dashboard {
 		await this.driverHelper.waitDisappearance(Dashboard.USER_SETTINGS_DROPDOWN, timeout);
 	}
 
+	async clickContinueWithDefaultDevfileButton(timeout: number = TIMEOUT_CONSTANTS.TS_CLICK_DASHBOARD_ITEM_TIMEOUT): Promise<void> {
+		Logger.debug();
+
+		await this.driverHelper.waitAndClick(Dashboard.CONTINUE_WITH_DEFAULT_DEVFILE_BUTTON, timeout);
+	}
+
 	private getAboutMenuItemButtonLocator(text: string): By {
 		return By.xpath(`//li/button[text()="${text}"]`);
 	}
diff --git a/tests/e2e/specs/factory/NoSetupRepoFactory.spec.ts b/tests/e2e/specs/factory/NoSetupRepoFactory.spec.ts
index a09c09a9212..fea2fdee730 100644
--- a/tests/e2e/specs/factory/NoSetupRepoFactory.spec.ts
+++ b/tests/e2e/specs/factory/NoSetupRepoFactory.spec.ts
@@ -105,6 +105,26 @@ suite(
 				const allCreatedWorkspacesNames: string[] = await workspaces.getAllCreatedWorkspacesNames();
 				expect(allCreatedWorkspacesNames).has.length(numberOfCreatedWorkspaces);
 			});
+
+			test('Check creating workspace using default devfile', async function (): Promise<void> {
+				await browserTabsUtil.navigateTo(FACTORY_TEST_CONSTANTS.TS_SELENIUM_FACTORY_URL());
+				await dashboard.waitLoader();
+				await dashboard.clickContinueWithDefaultDevfileButton();
+				await workspaceHandlingTests.obtainWorkspaceNameFromStartingPage();
+				registerRunningWorkspace(WorkspaceHandlingTests.getWorkspaceName());
+				await projectAndFileTests.waitWorkspaceReadinessForCheCodeEditor();
+			});
+
+			test('Check that a project folder has not been cloned', async function (): Promise<void> {
+				testRepoProjectName = StringUtil.getProjectNameFromGitUrl(FACTORY_TEST_CONSTANTS.TS_SELENIUM_FACTORY_GIT_REPO_URL);
+				await driverHelper.waitVisibility(webCheCodeLocators.TitleBar.itemElement);
+				await projectAndFileTests.performTrustAuthorDialog();
+				const isProjectFolderUnable: string = await driverHelper.waitAndGetElementAttribute(
+					(webCheCodeLocators.TreeItem as any).projectFolderItem,
+					'aria-label'
+				);
+				expect(isProjectFolderUnable).to.contain('No Folder Opened Section');
+			});
 		} else {
 			test('Obtain workspace name from workspace loader page', async function (): Promise<void> {
 				await workspaceHandlingTests.obtainWorkspaceNameFromStartingPage();