diff --git a/packages/nc-gui-v2/pages/index/index/create-external.vue b/packages/nc-gui-v2/pages/index/index/create-external.vue
index 18e8d48b19..801df33e12 100644
--- a/packages/nc-gui-v2/pages/index/index/create-external.vue
+++ b/packages/nc-gui-v2/pages/index/index/create-external.vue
@@ -39,7 +39,7 @@ useSidebar({ hasSidebar: false })
 
 const { t } = useI18n()
 
-const formState = $ref<ProjectCreateForm>({
+let formState = $ref<ProjectCreateForm>({
   title: '',
   dataSource: { ...getDefaultConnectionConfig(ClientType.MYSQL) },
   inflection: {
@@ -120,6 +120,18 @@ const onSSLModeChange = ((mode: 'No' | 'Allow' | string) => {
   }
 }) as unknown as SelectHandler
 
+const updateSSLUse = () => {
+  if (formState?.dataSource?.connection?.ssl) {
+    if (typeof formState.dataSource.connection.ssl === 'string') {
+      formState.sslUse = 'Allowed'
+    } else {
+      formState.sslUse = 'Preferred'
+    }
+  } else {
+    formState.sslUse = 'No'
+  }
+}
+
 const addNewParam = () => {
   formState.extraParameters.push({ key: '', value: '' })
 }
@@ -265,6 +277,7 @@ const handleImportURL = async () => {
     message.error('Invalid URL')
   }
   importURLDlg.value = false
+  updateSSLUse()
 }
 
 const handleEditJSON = () => {
@@ -273,20 +286,21 @@ const handleEditJSON = () => {
 }
 
 const handleOk = () => {
-  formState.dataSource = { ...customFormState.value.dataSource }
+  formState = { ...customFormState.value }
   configEditDlg.value = false
+  updateSSLUse()
 }
 
 // reset test status on config change
 watch(
-  () => formState.dataSource,
+  () => formState?.dataSource,
   () => (testSuccess.value = false),
   { deep: true },
 )
 
 // populate database name based on title
 watch(
-  () => formState.title,
+  () => formState?.title,
   (v) => populateName(v),
 )
 
diff --git a/packages/nocodb/src/lib/utils/NcConfigFactory.ts b/packages/nocodb/src/lib/utils/NcConfigFactory.ts
index 480b2b6f18..d3aa41b63e 100644
--- a/packages/nocodb/src/lib/utils/NcConfigFactory.ts
+++ b/packages/nocodb/src/lib/utils/NcConfigFactory.ts
@@ -644,7 +644,7 @@ export default class NcConfigFactory implements NcConfig {
 
     const config = parseDbUrl(url);
 
-    const parsedConfig: { driver?: string, host?: string, port?: string, database?: string, user?:string, password?: string  } = {}
+    const parsedConfig: { driver?: string, host?: string, port?: string, database?: string, user?:string, password?: string, ssl?: string } = {}
     for (const [key, value] of Object.entries(config)) {
       const fnd = knownQueryParams.find((param) => param.parameter === key || param.aliases.includes(key))
       if (fnd) {
@@ -655,12 +655,20 @@ export default class NcConfigFactory implements NcConfig {
     }
 
     if (!parsedConfig?.port) parsedConfig.port = defaultClientPortMapping[driverClientMapping[parsedConfig.driver] || parsedConfig.driver];
-    
+
     if (rtConfig) {
       const { driver, ...connectionConfig } = parsedConfig;
+      
+      const client = driverClientMapping[driver] || driver;
+      
+      const avoidSSL = ['localhost', '127.0.0.1', 'host.docker.internal', '172.17. 0.1']
+
+      if (client === 'pg' && !connectionConfig?.ssl && !avoidSSL.includes(connectionConfig.host)) {
+        connectionConfig.ssl = 'true';
+      }
 
       return {
-        client: driverClientMapping[driver] || driver,
+        client: client,
         connection: {
           ...connectionConfig
         }