diff --git a/changelogs/fragments/7440.yml b/changelogs/fragments/7440.yml
new file mode 100644
index 000000000000..9c314cc7263a
--- /dev/null
+++ b/changelogs/fragments/7440.yml
@@ -0,0 +1,2 @@
+fix:
+- [Bug][Data Source] Move data source manageable feature flag to DSM plugin ([#7440](https://github.com/opensearch-project/OpenSearch-Dashboards/pull/7440))
\ No newline at end of file
diff --git a/config/opensearch_dashboards.yml b/config/opensearch_dashboards.yml
index 4833c3f96e30..7ba83c9248b6 100644
--- a/config/opensearch_dashboards.yml
+++ b/config/opensearch_dashboards.yml
@@ -325,7 +325,7 @@
 # "none": The data source is readonly for all users.
 # "dashboard_admin": The data source can only be managed by dashboard admin.
 # "all": The data source can be managed by all users. Default to "all".
-# data_source.manageableBy: "all"
+# data_source_management.manageableBy: "all"
 
 # Set the value of this setting to false to hide the help menu link to the OpenSearch Dashboards user survey
 # opensearchDashboards.survey.url: "https://survey.opensearch.org"
diff --git a/src/plugins/data_source/common/data_sources/types.ts b/src/plugins/data_source/common/data_sources/types.ts
index bd147ac00c04..cde21f648c61 100644
--- a/src/plugins/data_source/common/data_sources/types.ts
+++ b/src/plugins/data_source/common/data_sources/types.ts
@@ -60,9 +60,3 @@ export enum DataSourceEngineType {
   Elasticsearch = 'Elasticsearch',
   NA = 'No Engine Type Available',
 }
-
-export enum ManageableBy {
-  All = 'all',
-  DashboardAdmin = 'dashboard_admin',
-  None = 'none',
-}
diff --git a/src/plugins/data_source/config.ts b/src/plugins/data_source/config.ts
index 36c298cde119..30824b486257 100644
--- a/src/plugins/data_source/config.ts
+++ b/src/plugins/data_source/config.ts
@@ -59,10 +59,6 @@ export const configSchema = schema.object({
       enabled: schema.boolean({ defaultValue: true }),
     }),
   }),
-  manageableBy: schema.oneOf(
-    [schema.literal('all'), schema.literal('dashboard_admin'), schema.literal('none')],
-    { defaultValue: 'all' }
-  ),
 });
 
 export type DataSourcePluginConfigType = TypeOf<typeof configSchema>;
diff --git a/src/plugins/data_source/server/plugin.ts b/src/plugins/data_source/server/plugin.ts
index fa3085a63935..bbf5a89d1b53 100644
--- a/src/plugins/data_source/server/plugin.ts
+++ b/src/plugins/data_source/server/plugin.ts
@@ -33,8 +33,6 @@ import { registerTestConnectionRoute } from './routes/test_connection';
 import { registerFetchDataSourceMetaDataRoute } from './routes/fetch_data_source_metadata';
 import { AuthenticationMethodRegistry, IAuthenticationMethodRegistry } from './auth_registry';
 import { CustomApiSchemaRegistry } from './schema_registry';
-import { ManageableBy } from '../common/data_sources';
-import { getWorkspaceState } from '../../../../src/core/server/utils';
 
 export class DataSourcePlugin implements Plugin<DataSourcePluginSetup, DataSourcePluginStart> {
   private readonly logger: Logger;
@@ -83,25 +81,6 @@ export class DataSourcePlugin implements Plugin<DataSourcePluginSetup, DataSourc
       dataSourceSavedObjectsClientWrapper.wrapperFactory
     );
 
-    const { manageableBy } = config;
-    core.capabilities.registerProvider(() => ({
-      dataSource: {
-        canManage: false,
-      },
-    }));
-
-    core.capabilities.registerSwitcher((request) => {
-      const { requestWorkspaceId, isDashboardAdmin } = getWorkspaceState(request);
-      // User can not manage data source in the workspace.
-      const canManage =
-        (manageableBy === ManageableBy.All && !requestWorkspaceId) ||
-        (manageableBy === ManageableBy.DashboardAdmin &&
-          isDashboardAdmin !== false &&
-          !requestWorkspaceId);
-
-      return { dataSource: { canManage } };
-    });
-
     core.logging.configure(
       this.config$.pipe<LoggerContextConfigInput>(
         map((dataSourceConfig) => ({
diff --git a/src/plugins/data_source_management/common/index.ts b/src/plugins/data_source_management/common/index.ts
index 980bf8939456..2b9b3a4454bf 100644
--- a/src/plugins/data_source_management/common/index.ts
+++ b/src/plugins/data_source_management/common/index.ts
@@ -6,3 +6,4 @@
 export const PLUGIN_ID = 'dataSourceManagement';
 export const PLUGIN_NAME = 'Data sources';
 export const DEFAULT_DATA_SOURCE_UI_SETTINGS_ID = 'defaultDataSource';
+export * from './types';
diff --git a/src/plugins/data_source_management/common/types.ts b/src/plugins/data_source_management/common/types.ts
new file mode 100644
index 000000000000..23b2f437e248
--- /dev/null
+++ b/src/plugins/data_source_management/common/types.ts
@@ -0,0 +1,10 @@
+/*
+ * Copyright OpenSearch Contributors
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+export enum ManageableBy {
+  All = 'all',
+  DashboardAdmin = 'dashboard_admin',
+  None = 'none',
+}
diff --git a/src/plugins/data_source_management/config.ts b/src/plugins/data_source_management/config.ts
new file mode 100644
index 000000000000..1a56a126a943
--- /dev/null
+++ b/src/plugins/data_source_management/config.ts
@@ -0,0 +1,15 @@
+/*
+ * Copyright OpenSearch Contributors
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+import { schema, TypeOf } from '@osd/config-schema';
+
+export const configSchema = schema.object({
+  manageableBy: schema.oneOf(
+    [schema.literal('all'), schema.literal('dashboard_admin'), schema.literal('none')],
+    { defaultValue: 'all' }
+  ),
+});
+
+export type ConfigSchema = TypeOf<typeof configSchema>;
diff --git a/src/plugins/data_source_management/opensearch_dashboards.json b/src/plugins/data_source_management/opensearch_dashboards.json
index a8790d04823d..fb37a16eea0f 100644
--- a/src/plugins/data_source_management/opensearch_dashboards.json
+++ b/src/plugins/data_source_management/opensearch_dashboards.json
@@ -6,5 +6,6 @@
   "requiredPlugins": ["management", "indexPatternManagement"],
   "optionalPlugins": ["dataSource"],
   "requiredBundles": ["opensearchDashboardsReact", "dataSource", "opensearchDashboardsUtils"],
-  "extraPublicDirs": ["public/components/utils"]
+  "extraPublicDirs": ["public/components/utils"],
+  "configPath": ["data_source_management"]
 }
diff --git a/src/plugins/data_source_management/server/index.ts b/src/plugins/data_source_management/server/index.ts
index bf4fb4377c93..f3d229ea3f1d 100644
--- a/src/plugins/data_source_management/server/index.ts
+++ b/src/plugins/data_source_management/server/index.ts
@@ -3,7 +3,8 @@
  * SPDX-License-Identifier: Apache-2.0
  */
 
-import { PluginInitializerContext } from '../../../core/server';
+import { PluginConfigDescriptor, PluginInitializerContext } from '../../../core/server';
+import { ConfigSchema, configSchema } from '../config';
 import { DataSourceManagementPlugin } from './plugin';
 
 // This exports static code and TypeScript types,
@@ -13,4 +14,8 @@ export function plugin(initializerContext: PluginInitializerContext) {
   return new DataSourceManagementPlugin(initializerContext);
 }
 
+export const config: PluginConfigDescriptor<ConfigSchema> = {
+  schema: configSchema,
+};
+
 export { DataSourceManagementPluginSetup, DataSourceManagementPluginStart } from './types';
diff --git a/src/plugins/data_source_management/server/plugin.ts b/src/plugins/data_source_management/server/plugin.ts
index 97ac8cacc237..de8dcf74cf96 100644
--- a/src/plugins/data_source_management/server/plugin.ts
+++ b/src/plugins/data_source_management/server/plugin.ts
@@ -5,6 +5,8 @@
 
 // eslint-disable-next-line @osd/eslint/no-restricted-paths
 import { DataSourcePluginSetup } from 'src/plugins/data_source/server/types';
+import { Observable } from 'rxjs';
+import { first } from 'rxjs/operators';
 import {
   CoreSetup,
   CoreStart,
@@ -18,6 +20,9 @@ import { setupRoutes } from './routes';
 import { DataSourceManagementPluginSetup, DataSourceManagementPluginStart } from './types';
 import { OpenSearchDataSourceManagementPlugin } from './adaptors/opensearch_data_source_management_plugin';
 import { PPLPlugin } from './adaptors/ppl_plugin';
+import { ConfigSchema } from '../config';
+import { getWorkspaceState } from '../../../../src/core/server/utils';
+import { ManageableBy } from '../common';
 
 export interface DataSourceManagementPluginDependencies {
   dataSource: DataSourcePluginSetup;
@@ -25,13 +30,15 @@ export interface DataSourceManagementPluginDependencies {
 
 export class DataSourceManagementPlugin
   implements Plugin<DataSourceManagementPluginSetup, DataSourceManagementPluginStart> {
+  private readonly config$: Observable<ConfigSchema>;
   private readonly logger: Logger;
 
   constructor(initializerContext: PluginInitializerContext) {
     this.logger = initializerContext.logger.get();
+    this.config$ = initializerContext.config.create<ConfigSchema>();
   }
 
-  public setup(
+  public async setup(
     core: CoreSetup,
     deps: {
       dataSource: DataSourceManagementPluginDependencies;
@@ -39,6 +46,8 @@ export class DataSourceManagementPlugin
   ) {
     const { dataSource } = deps;
 
+    const config: ConfigSchema = await this.config$.pipe(first()).toPromise();
+
     const dataSourceEnabled = !!dataSource;
 
     const openSearchDataSourceManagementClient: ILegacyClusterClient = core.opensearch.legacy.createClient(
@@ -51,6 +60,25 @@ export class DataSourceManagementPlugin
     this.logger.debug('dataSourceManagement: Setup');
     const router = core.http.createRouter();
 
+    const { manageableBy } = config;
+    core.capabilities.registerProvider(() => ({
+      dataSource: {
+        canManage: false,
+      },
+    }));
+
+    core.capabilities.registerSwitcher((request) => {
+      const { requestWorkspaceId, isDashboardAdmin } = getWorkspaceState(request);
+      // User can not manage data source in the workspace.
+      const canManage =
+        (manageableBy === ManageableBy.All && !requestWorkspaceId) ||
+        (manageableBy === ManageableBy.DashboardAdmin &&
+          isDashboardAdmin !== false &&
+          !requestWorkspaceId);
+
+      return { dataSource: { canManage } };
+    });
+
     if (dataSourceEnabled) {
       dataSource.registerCustomApiSchema(PPLPlugin);
       dataSource.registerCustomApiSchema(OpenSearchDataSourceManagementPlugin);