diff --git a/packages/mco/components/modals/app-failover-relocate/argo-application-set.tsx b/packages/mco/components/modals/app-failover-relocate/argo-application-set.tsx
index 164b16d3f..93d415cdf 100644
--- a/packages/mco/components/modals/app-failover-relocate/argo-application-set.tsx
+++ b/packages/mco/components/modals/app-failover-relocate/argo-application-set.tsx
@@ -141,14 +141,13 @@ export const ArogoApplicationSetModal = (
             drPolicyName: getName(drPolicy),
             drPlacementControlName: getName(drPlacementControl),
             targetClusterName: getName(targetDRCluster),
+            primaryClusterName: getName(primaryCluster),
             isTargetClusterAvailable: !!targetClusterCondition,
             targetClusterAvailableTime:
               targetClusterCondition?.lastTransitionTime,
             isPrimaryClusterAvailable: !!primaryClusterCondition,
             isDRActionReady: checkDRActionReadiness(drPlacementControl, action),
             snapshotTakenTime: drPlacementControl?.status?.lastGroupSyncTime,
-            preferredCluster: drPlacementControl?.spec?.preferredCluster,
-            failoverCluster: drPlacementControl?.spec?.failoverCluster,
             replicationType: findDRType(drClusters),
             isTargetClusterFenced: isDRClusterFenced(targetDRCluster),
             isPrimaryClusterFenced: isDRClusterFenced(primaryDRCluster),
diff --git a/packages/mco/components/modals/app-failover-relocate/failover-relocate-modal-body.tsx b/packages/mco/components/modals/app-failover-relocate/failover-relocate-modal-body.tsx
index 7168fbf7c..5b3871c1c 100644
--- a/packages/mco/components/modals/app-failover-relocate/failover-relocate-modal-body.tsx
+++ b/packages/mco/components/modals/app-failover-relocate/failover-relocate-modal-body.tsx
@@ -299,9 +299,8 @@ export type PlacementProps = Partial<{
   drPlacementControlName: string;
   targetClusterName: string;
   targetClusterAvailableTime: string;
+  primaryClusterName: string;
   snapshotTakenTime: string;
-  failoverCluster: string;
-  preferredCluster: string;
   isTargetClusterAvailable: boolean;
   isPrimaryClusterAvailable: boolean;
   isDRActionReady: boolean;
diff --git a/packages/mco/components/modals/app-failover-relocate/failover-relocate-modal.tsx b/packages/mco/components/modals/app-failover-relocate/failover-relocate-modal.tsx
index 66a33a477..ef555d396 100644
--- a/packages/mco/components/modals/app-failover-relocate/failover-relocate-modal.tsx
+++ b/packages/mco/components/modals/app-failover-relocate/failover-relocate-modal.tsx
@@ -59,6 +59,7 @@ export const FailoverRelocateModal: React.FC<FailoverRelocateModalProps> = (
 
   const onClick = () => {
     setFooterStatus(ModalFooterStatus.INPROGRESS);
+    // Prefered cluster and failover cluster should not be same for failover and relocate.
     const patch = [
       {
         op: 'replace',
@@ -67,11 +68,19 @@ export const FailoverRelocateModal: React.FC<FailoverRelocateModalProps> = (
       },
       {
         op: 'replace',
-        path:
+        path: '/spec/failoverCluster',
+        value:
           action === DRActionType.FAILOVER
-            ? '/spec/failoverCluster'
-            : '/spec/preferredCluster',
-        value: placement?.targetClusterName,
+            ? placement?.targetClusterName
+            : placement?.primaryClusterName,
+      },
+      {
+        op: 'replace',
+        path: '/spec/preferredCluster',
+        value:
+          action === DRActionType.FAILOVER
+            ? placement?.primaryClusterName
+            : placement?.targetClusterName,
       },
     ];
     k8sPatch({
diff --git a/packages/mco/components/modals/app-failover-relocate/subscriptions/failover-relocate-modal.tsx b/packages/mco/components/modals/app-failover-relocate/subscriptions/failover-relocate-modal.tsx
index 848a8b746..2069c0fa4 100644
--- a/packages/mco/components/modals/app-failover-relocate/subscriptions/failover-relocate-modal.tsx
+++ b/packages/mco/components/modals/app-failover-relocate/subscriptions/failover-relocate-modal.tsx
@@ -115,6 +115,11 @@ export const SubscriptionFailoverRelocateModal: React.FC<FailoverRelocateModalPr
     const onClick = () => {
       updateModalStatus(ModalFooterStatus.INPROGRESS);
       const promises: Promise<K8sResourceKind>[] = [];
+      const targetClusterName =
+        state.selectedTargetCluster.clusterInfo.clusterName;
+      const primaryClusterName = state.selectedDRPolicy.drClusters.find(
+        (drCluster) => drCluster !== targetClusterName
+      );
       state.drPolicyControlState.forEach((acmToDRState) => {
         if (
           state.selectedSubsGroups.includes(
@@ -127,15 +132,21 @@ export const SubscriptionFailoverRelocateModal: React.FC<FailoverRelocateModalPr
               path: '/spec/action',
               value: action,
             },
-            state.actionType === DRActionType.RELOCATE && {
+            {
               op: 'replace',
-              path: '/spec/preferredCluster',
-              value: state.selectedTargetCluster.clusterInfo.clusterName,
+              path: '/spec/failoverCluster',
+              value:
+                action === DRActionType.FAILOVER
+                  ? targetClusterName
+                  : primaryClusterName,
             },
-            state.actionType === DRActionType.FAILOVER && {
+            {
               op: 'replace',
-              path: '/spec/failoverCluster',
-              value: state.selectedTargetCluster.clusterInfo.clusterName,
+              path: '/spec/preferredCluster',
+              value:
+                action === DRActionType.FAILOVER
+                  ? primaryClusterName
+                  : targetClusterName,
             },
           ];
           promises.push(