diff --git a/CHANGELOG.md b/CHANGELOG.md
index cbf45a046ea9..6a224f8aa542 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -12,6 +12,7 @@ Inspired from [Keep a Changelog](https://keepachangelog.com/en/1.0.0/)
 
 * [MD] Support legacy client for data source ([#2204](https://github.com/opensearch-project/OpenSearch-Dashboards/pull/2204))
 * [Plugin Helpers] Facilitate version changes ([#2398](https://github.com/opensearch-project/OpenSearch-Dashboards/pull/2398))
+* [MD] Display error toast for create index pattern with data source ([#2506](https://github.com/opensearch-project/OpenSearch-Dashboards/pull/2506))
 
 ### 🐛 Bug Fixes
 * [Vis Builder] Fixes auto bounds for timeseries bar chart visualization ([2401](https://github.com/opensearch-project/OpenSearch-Dashboards/pull/2401))
diff --git a/src/plugins/index_pattern_management/public/components/create_index_pattern_wizard/create_index_pattern_wizard.tsx b/src/plugins/index_pattern_management/public/components/create_index_pattern_wizard/create_index_pattern_wizard.tsx
index f0f0563eee87..4083cb3d3700 100644
--- a/src/plugins/index_pattern_management/public/components/create_index_pattern_wizard/create_index_pattern_wizard.tsx
+++ b/src/plugins/index_pattern_management/public/components/create_index_pattern_wizard/create_index_pattern_wizard.tsx
@@ -134,6 +134,7 @@ export class CreateIndexPatternWizard extends Component<
             id: errorMsg.props.id,
             color: 'warning',
             iconType: 'alert',
+            text: errors.body.message,
           },
         ]),
       }));
diff --git a/src/plugins/index_pattern_management/public/components/create_index_pattern_wizard/lib/get_indices.test.ts b/src/plugins/index_pattern_management/public/components/create_index_pattern_wizard/lib/get_indices.test.ts
index 56ae8515ddde..4cafe9e1d195 100644
--- a/src/plugins/index_pattern_management/public/components/create_index_pattern_wizard/lib/get_indices.test.ts
+++ b/src/plugins/index_pattern_management/public/components/create_index_pattern_wizard/lib/get_indices.test.ts
@@ -119,7 +119,7 @@ describe('getIndices', () => {
     expect(result[1].name).toBe('foo');
   });
 
-  it('should make two calls in cross cluser case', async () => {
+  it('should make two calls in cross cluster case', async () => {
     http.get.mockResolvedValue(successfulResolveResponse);
     const result = await getIndices({
       http,
@@ -201,9 +201,23 @@ describe('getIndices', () => {
         getIndexTags,
         pattern: 'opensearch-dashboards',
         searchClient,
-        dataSourceId,
       });
       expect(result.length).toBe(0);
     });
+
+    it('should throw error with data source use case', async () => {
+      http.get.mockImplementationOnce(() => {
+        throw new Error('Test error');
+      });
+      expect(
+        getIndices({
+          http,
+          getIndexTags,
+          pattern: 'opensearch-dashboards',
+          searchClient,
+          dataSourceId,
+        })
+      ).rejects.toThrowError();
+    });
   });
 });
diff --git a/src/plugins/index_pattern_management/public/components/create_index_pattern_wizard/lib/get_indices.ts b/src/plugins/index_pattern_management/public/components/create_index_pattern_wizard/lib/get_indices.ts
index 39bd044d8011..0130bbac2df2 100644
--- a/src/plugins/index_pattern_management/public/components/create_index_pattern_wizard/lib/get_indices.ts
+++ b/src/plugins/index_pattern_management/public/components/create_index_pattern_wizard/lib/get_indices.ts
@@ -199,7 +199,14 @@ export async function getIndices({
     pattern,
     showAllIndices,
     dataSourceId,
-  }).catch(() => []);
+  }).catch((error) => {
+    // swallow the errors to be backwards compatible with non-data-source use case
+    if (dataSourceId) {
+      throw error;
+    } else {
+      return [];
+    }
+  });
   requests.push(promiseResolve);
 
   if (isCCS) {