diff --git a/ads/aqua/extension/model_handler.py b/ads/aqua/extension/model_handler.py
index 029d71643..269337d2d 100644
--- a/ads/aqua/extension/model_handler.py
+++ b/ads/aqua/extension/model_handler.py
@@ -133,7 +133,7 @@ def post(self, *args, **kwargs):  # noqa: ARG002
         )
         local_dir = input_data.get("local_dir")
         cleanup_model_cache = (
-            str(input_data.get("cleanup_model_cache", "true")).lower() == "true"
+            str(input_data.get("cleanup_model_cache", "false")).lower() == "true"
         )
         inference_container_uri = input_data.get("inference_container_uri")
         allow_patterns = input_data.get("allow_patterns")
diff --git a/ads/aqua/model/entities.py b/ads/aqua/model/entities.py
index dfd1ac374..991c67b54 100644
--- a/ads/aqua/model/entities.py
+++ b/ads/aqua/model/entities.py
@@ -283,7 +283,7 @@ class ImportModelDetails(CLIBuilderMixin):
     os_path: str
     download_from_hf: Optional[bool] = True
     local_dir: Optional[str] = None
-    cleanup_model_cache: Optional[bool] = True
+    cleanup_model_cache: Optional[bool] = False
     inference_container: Optional[str] = None
     finetuning_container: Optional[str] = None
     compartment_id: Optional[str] = None
diff --git a/tests/unitary/with_extras/aqua/test_model.py b/tests/unitary/with_extras/aqua/test_model.py
index 4cd59afb9..daafb2bed 100644
--- a/tests/unitary/with_extras/aqua/test_model.py
+++ b/tests/unitary/with_extras/aqua/test_model.py
@@ -1228,14 +1228,14 @@ def test_import_model_with_input_tags(
                     "model": "oracle/oracle-1it",
                     "inference_container": "odsc-vllm-serving",
                 },
-                "ads aqua model register --model oracle/oracle-1it --os_path oci://aqua-bkt@aqua-ns/path --download_from_hf True --cleanup_model_cache True --inference_container odsc-vllm-serving",
+                "ads aqua model register --model oracle/oracle-1it --os_path oci://aqua-bkt@aqua-ns/path --download_from_hf True --cleanup_model_cache False --inference_container odsc-vllm-serving",
             ),
             (
                 {
                     "os_path": "oci://aqua-bkt@aqua-ns/path",
                     "model": "ocid1.datasciencemodel.oc1.iad.<OCID>",
                 },
-                "ads aqua model register --model ocid1.datasciencemodel.oc1.iad.<OCID> --os_path oci://aqua-bkt@aqua-ns/path --download_from_hf True --cleanup_model_cache True",
+                "ads aqua model register --model ocid1.datasciencemodel.oc1.iad.<OCID> --os_path oci://aqua-bkt@aqua-ns/path --download_from_hf True --cleanup_model_cache False",
             ),
             (
                 {
@@ -1243,7 +1243,7 @@ def test_import_model_with_input_tags(
                     "model": "oracle/oracle-1it",
                     "download_from_hf": False,
                 },
-                "ads aqua model register --model oracle/oracle-1it --os_path oci://aqua-bkt@aqua-ns/path --download_from_hf False --cleanup_model_cache True",
+                "ads aqua model register --model oracle/oracle-1it --os_path oci://aqua-bkt@aqua-ns/path --download_from_hf False --cleanup_model_cache False",
             ),
             (
                 {
@@ -1252,7 +1252,7 @@ def test_import_model_with_input_tags(
                     "download_from_hf": True,
                     "model_file": "test_model_file",
                 },
-                "ads aqua model register --model oracle/oracle-1it --os_path oci://aqua-bkt@aqua-ns/path --download_from_hf True --cleanup_model_cache True --model_file test_model_file",
+                "ads aqua model register --model oracle/oracle-1it --os_path oci://aqua-bkt@aqua-ns/path --download_from_hf True --cleanup_model_cache False --model_file test_model_file",
             ),
             (
                 {
@@ -1261,7 +1261,7 @@ def test_import_model_with_input_tags(
                     "inference_container": "odsc-tei-serving",
                     "inference_container_uri": "<region>.ocir.io/<your_tenancy>/<your_image>",
                 },
-                "ads aqua model register --model oracle/oracle-1it --os_path oci://aqua-bkt@aqua-ns/path --download_from_hf True --cleanup_model_cache True --inference_container odsc-tei-serving --inference_container_uri <region>.ocir.io/<your_tenancy>/<your_image>",
+                "ads aqua model register --model oracle/oracle-1it --os_path oci://aqua-bkt@aqua-ns/path --download_from_hf True --cleanup_model_cache False --inference_container odsc-tei-serving --inference_container_uri <region>.ocir.io/<your_tenancy>/<your_image>",
             ),
             (
                 {
@@ -1272,7 +1272,7 @@ def test_import_model_with_input_tags(
                     "defined_tags": {"dtag1": "dvalue1", "dtag2": "dvalue2"},
                 },
                 "ads aqua model register --model oracle/oracle-1it --os_path oci://aqua-bkt@aqua-ns/path "
-                "--download_from_hf True --cleanup_model_cache True --inference_container odsc-vllm-serving --freeform_tags "
+                "--download_from_hf True --cleanup_model_cache False --inference_container odsc-vllm-serving --freeform_tags "
                 '{"ftag1": "fvalue1", "ftag2": "fvalue2"} --defined_tags {"dtag1": "dvalue1", "dtag2": "dvalue2"}',
             ),
             (
@@ -1281,6 +1281,7 @@ def test_import_model_with_input_tags(
                     "model": "oracle/oracle-1it",
                     "inference_container": "odsc-vllm-serving",
                     "ignore_model_artifact_check": True,
+                    "cleanup_model_cache": True,
                 },
                 "ads aqua model register --model oracle/oracle-1it --os_path oci://aqua-bkt@aqua-ns/path --download_from_hf True --cleanup_model_cache True --inference_container odsc-vllm-serving --ignore_model_artifact_check True",
             ),
diff --git a/tests/unitary/with_extras/aqua/test_model_handler.py b/tests/unitary/with_extras/aqua/test_model_handler.py
index af9165f63..a9236597d 100644
--- a/tests/unitary/with_extras/aqua/test_model_handler.py
+++ b/tests/unitary/with_extras/aqua/test_model_handler.py
@@ -219,7 +219,7 @@ def test_register(
             model_file=model_file,
             download_from_hf=download_from_hf,
             local_dir=None,
-            cleanup_model_cache=True,
+            cleanup_model_cache=False,
             inference_container_uri=inference_container_uri,
             allow_patterns=allow_patterns,
             ignore_patterns=ignore_patterns,