diff --git a/packages/ui/src/dropdowns/custom-search-select.tsx b/packages/ui/src/dropdowns/custom-search-select.tsx
index 4302c12fdc7..e592f0dc2bc 100644
--- a/packages/ui/src/dropdowns/custom-search-select.tsx
+++ b/packages/ui/src/dropdowns/custom-search-select.tsx
@@ -1,18 +1,15 @@
-import React, { useRef, useState } from "react";
-import { usePopper } from "react-popper";
 import { Combobox } from "@headlessui/react";
 import { Check, ChevronDown, Info, Search } from "lucide-react";
+import React, { useRef, useState } from "react";
 import { createPortal } from "react-dom";
-// plane helpers
+import { usePopper } from "react-popper";
+// plane imports
 import { useOutsideClickDetector } from "@plane/hooks";
-// hooks
-import { useDropdownKeyDown } from "../hooks/use-dropdown-key-down";
-// helpers
+// local imports
 import { cn } from "../../helpers";
-// types
-import { ICustomSearchSelectProps } from "./helper";
-// local components
+import { useDropdownKeyDown } from "../hooks/use-dropdown-key-down";
 import { Tooltip } from "../tooltip";
+import { ICustomSearchSelectProps } from "./helper";
 
 export const CustomSearchSelect = (props: ICustomSearchSelectProps) => {
   const {
@@ -36,6 +33,7 @@ export const CustomSearchSelect = (props: ICustomSearchSelectProps) => {
     optionsClassName = "",
     value,
     tabIndex,
+    noResultsMessage = "No matches found",
   } = props;
   const [query, setQuery] = useState("");
 
@@ -201,7 +199,7 @@ export const CustomSearchSelect = (props: ICustomSearchSelectProps) => {
                             </Combobox.Option>
                           ))
                         ) : (
-                          <p className="text-custom-text-400 italic py-1 px-1.5">No matches found</p>
+                          <p className="text-custom-text-400 italic py-1 px-1.5">{noResultsMessage}</p>
                         )
                       ) : (
                         <p className="text-custom-text-400 italic py-1 px-1.5">Loading...</p>
diff --git a/packages/ui/src/dropdowns/helper.tsx b/packages/ui/src/dropdowns/helper.tsx
index a7ef61c3de0..4ce12d9f8ca 100644
--- a/packages/ui/src/dropdowns/helper.tsx
+++ b/packages/ui/src/dropdowns/helper.tsx
@@ -43,6 +43,7 @@ interface CustomSearchSelectProps {
   footerOption?: JSX.Element;
   onChange: any;
   onClose?: () => void;
+  noResultsMessage?: string;
   options:
   | {
     value: any;
diff --git a/web/ce/components/issues/issue-modal/template-select.tsx b/web/ce/components/issues/issue-modal/template-select.tsx
index 679e9419dec..6d58bb33c93 100644
--- a/web/ce/components/issues/issue-modal/template-select.tsx
+++ b/web/ce/components/issues/issue-modal/template-select.tsx
@@ -8,6 +8,7 @@ export type TWorkItemTemplateSelect = {
   placeholder?: string;
   renderChevron?: boolean;
   dropDownContainerClassName?: string;
+  handleModalClose: () => void;
   handleFormChange?: () => void;
 };
 
diff --git a/web/core/components/issues/issue-modal/draft-issue-layout.tsx b/web/core/components/issues/issue-modal/draft-issue-layout.tsx
index 0e714cca44d..e10ca34b786 100644
--- a/web/core/components/issues/issue-modal/draft-issue-layout.tsx
+++ b/web/core/components/issues/issue-modal/draft-issue-layout.tsx
@@ -38,27 +38,34 @@ export const DraftIssueLayout: React.FC<DraftIssueProps> = observer((props) => {
   const { createIssue } = useWorkspaceDraftIssues();
   const { t } = useTranslation();
 
+  const sanitizeChanges = (): Partial<TIssue> => {
+    const sanitizedChanges = { ...changesMade };
+    Object.entries(sanitizedChanges).forEach(([key, value]) => {
+      const issueKey = key as keyof TIssue;
+      if (value === null || value === undefined || value === "") delete sanitizedChanges[issueKey];
+      if (typeof value === "object" && isEmpty(value)) delete sanitizedChanges[issueKey];
+      if (Array.isArray(value) && value.length === 0) delete sanitizedChanges[issueKey];
+      if (issueKey === "project_id") delete sanitizedChanges.project_id;
+      if (issueKey === "priority" && value && value === "none") delete sanitizedChanges.priority;
+      if (
+        issueKey === "description_html" &&
+        changesMade?.description_html &&
+        isEmptyHtmlString(changesMade.description_html, ["img"])
+      )
+        delete sanitizedChanges.description_html;
+    });
+    return sanitizedChanges;
+  };
+
   const handleClose = () => {
+    // If the user is updating an existing work item, we don't need to show the discard modal
     if (data?.id) {
       onClose();
       setIssueDiscardModal(false);
     } else {
       if (changesMade) {
-        Object.entries(changesMade).forEach(([key, value]) => {
-          const issueKey = key as keyof TIssue;
-          if (value === null || value === undefined || value === "") delete changesMade[issueKey];
-          if (typeof value === "object" && isEmpty(value)) delete changesMade[issueKey];
-          if (Array.isArray(value) && value.length === 0) delete changesMade[issueKey];
-          if (issueKey === "project_id") delete changesMade.project_id;
-          if (issueKey === "priority" && value && value === "none") delete changesMade.priority;
-          if (
-            issueKey === "description_html" &&
-            changesMade.description_html &&
-            isEmptyHtmlString(changesMade.description_html, ["img"])
-          )
-            delete changesMade.description_html;
-        });
-        if (isEmpty(changesMade)) {
+        const sanitizedChanges = sanitizeChanges();
+        if (isEmpty(sanitizedChanges)) {
           onClose();
           setIssueDiscardModal(false);
         } else setIssueDiscardModal(true);
@@ -119,6 +126,14 @@ export const DraftIssueLayout: React.FC<DraftIssueProps> = observer((props) => {
     }
   };
 
+  const handleDraftAndClose = () => {
+    const sanitizedChanges = sanitizeChanges();
+    if (!data?.id && !isEmpty(sanitizedChanges)) {
+      handleCreateDraftIssue();
+    }
+    onClose();
+  };
+
   return (
     <>
       <ConfirmIssueDiscard
@@ -131,7 +146,7 @@ export const DraftIssueLayout: React.FC<DraftIssueProps> = observer((props) => {
           onClose();
         }}
       />
-      <IssueFormRoot {...props} onClose={handleClose} />
+      <IssueFormRoot {...props} onClose={handleClose} handleDraftAndClose={handleDraftAndClose} />
     </>
   );
 });
diff --git a/web/core/components/issues/issue-modal/form.tsx b/web/core/components/issues/issue-modal/form.tsx
index c278540e5c5..ca37cbf24a8 100644
--- a/web/core/components/issues/issue-modal/form.tsx
+++ b/web/core/components/issues/issue-modal/form.tsx
@@ -61,6 +61,7 @@ export interface IssueFormProps {
   };
   isDuplicateModalOpen: boolean;
   handleDuplicateIssueModal: (isOpen: boolean) => void;
+  handleDraftAndClose?: () => void;
   isProjectSelectionDisabled?: boolean;
   storeType: EIssuesStoreType;
 }
@@ -86,6 +87,7 @@ export const IssueFormRoot: FC<IssueFormProps> = observer((props) => {
     },
     isDuplicateModalOpen,
     handleDuplicateIssueModal,
+    handleDraftAndClose,
     isProjectSelectionDisabled = false,
     storeType,
   } = props;
@@ -235,14 +237,22 @@ export const IssueFormRoot: FC<IssueFormProps> = observer((props) => {
     await onSubmit(submitData, is_draft_issue)
       .then(() => {
         setGptAssistantModal(false);
-        reset({
-          ...DEFAULT_WORK_ITEM_FORM_VALUES,
-          ...(isCreateMoreToggleEnabled ? { ...data } : {}),
-          project_id: getValues<"project_id">("project_id"),
-          type_id: getValues<"type_id">("type_id"),
-          description_html: data?.description_html ?? "<p></p>",
-        });
-        editorRef?.current?.clearEditor();
+        if (isCreateMoreToggleEnabled && workItemTemplateId) {
+          handleTemplateChange({
+            workspaceSlug: workspaceSlug?.toString(),
+            reset,
+            editorRef,
+          });
+        } else {
+          reset({
+            ...DEFAULT_WORK_ITEM_FORM_VALUES,
+            ...(isCreateMoreToggleEnabled ? { ...data } : {}),
+            project_id: getValues<"project_id">("project_id"),
+            type_id: getValues<"type_id">("type_id"),
+            description_html: data?.description_html ?? "<p></p>",
+          });
+          editorRef?.current?.clearEditor();
+        }
       })
       .catch((error) => {
         console.error(error);
@@ -389,6 +399,13 @@ export const IssueFormRoot: FC<IssueFormProps> = observer((props) => {
                     <WorkItemTemplateSelect
                       projectId={projectId}
                       typeId={watch("type_id")}
+                      handleModalClose={() => {
+                        if (handleDraftAndClose) {
+                          handleDraftAndClose();
+                        } else {
+                          onClose();
+                        }
+                      }}
                       handleFormChange={handleFormChange}
                       renderChevron
                     />