diff --git a/src/plugins/index_pattern_management/public/components/create_index_pattern_wizard/components/step_data_source/__snapshots__/step_data_source.test.tsx.snap b/src/plugins/index_pattern_management/public/components/create_index_pattern_wizard/components/step_data_source/__snapshots__/step_data_source.test.tsx.snap
new file mode 100644
index 000000000000..ba690127435c
--- /dev/null
+++ b/src/plugins/index_pattern_management/public/components/create_index_pattern_wizard/components/step_data_source/__snapshots__/step_data_source.test.tsx.snap
@@ -0,0 +1,19 @@
+// Jest Snapshot v1, https://goo.gl/fbAQLP
+
+exports[`StepDataSource should render normally 1`] = `
+<Fragment>
+  <EuiPageContent>
+    <Header
+      goToNextStep={[Function]}
+      isNextStepDisabled={true}
+      onDataSourceSelected={[Function]}
+      stepInfo={
+        Object {
+          "currentStepNumber": 0,
+          "totalStepNumber": 0,
+        }
+      }
+    />
+  </EuiPageContent>
+</Fragment>
+`;
diff --git a/src/plugins/index_pattern_management/public/components/create_index_pattern_wizard/components/step_data_source/components/header/__snapshots__/header.test.tsx.snap b/src/plugins/index_pattern_management/public/components/create_index_pattern_wizard/components/step_data_source/components/header/__snapshots__/header.test.tsx.snap
new file mode 100644
index 000000000000..40ce23f30de4
--- /dev/null
+++ b/src/plugins/index_pattern_management/public/components/create_index_pattern_wizard/components/step_data_source/components/header/__snapshots__/header.test.tsx.snap
@@ -0,0 +1,238 @@
+// Jest Snapshot v1, https://goo.gl/fbAQLP
+
+exports[`Header should render data source finder when choose to use data source 1`] = `
+<div>
+  <EuiTitle
+    size="s"
+  >
+    <h2>
+      <FormattedMessage
+        defaultMessage="Step {currentStepNumber} of {totalStepNumber}: Configure data source"
+        id="indexPatternManagement.createIndexPattern.stepDataSourceHeader"
+        values={
+          Object {
+            "currentStepNumber": 0,
+            "totalStepNumber": 0,
+          }
+        }
+      />
+    </h2>
+  </EuiTitle>
+  <EuiText>
+    <FormattedMessage
+      defaultMessage="Please pick the data source -- within which to configure index patterns."
+      id="indexPatternManagement.createIndexPattern.stepDataSourceLabel"
+      values={Object {}}
+    />
+  </EuiText>
+  <EuiSpacer
+    size="m"
+  />
+  <EuiRadio
+    checked={false}
+    compressed={true}
+    data-test-subj="createIndexPatternStepDataSourceUseDefaultRadio"
+    id="useDefault"
+    label={
+      <FormattedMessage
+        defaultMessage="Use default"
+        id="indexPatternManagement.createIndexPattern.stepDataSource.useDefaultLabel"
+        values={Object {}}
+      />
+    }
+    onChange={[Function]}
+  />
+  <EuiText
+    className="dataSourceRadioHelperText"
+    size="s"
+  >
+    <FormattedMessage
+      defaultMessage="Uses the default data source configured by the OpenSearch dashboards administrator."
+      id="indexPatternManagement.createIndexPattern.stepDataSource.useDefault.helperText"
+      values={Object {}}
+    />
+  </EuiText>
+  <EuiSpacer
+    size="l"
+  />
+  <EuiRadio
+    checked={true}
+    compressed={true}
+    data-test-subj="createIndexPatternStepDataSourceUseDataSourceRadio"
+    id="useDataSource"
+    label={
+      <FormattedMessage
+        defaultMessage="Choose data source"
+        id="indexPatternManagement.createIndexPattern.stepDataSource.useDataSourceLabel"
+        values={Object {}}
+      />
+    }
+    onChange={[Function]}
+  />
+  <EuiText
+    className="dataSourceRadioHelperText"
+    size="s"
+  >
+    <FormattedMessage
+      defaultMessage="Connect to an existing external data source."
+      id="indexPatternManagement.createIndexPattern.stepDataSource.useDataSource.helperText"
+      values={Object {}}
+    />
+  </EuiText>
+  <EuiFlexItem
+    grow={false}
+  >
+    <EuiSpacer
+      size="m"
+    />
+    <SavedObjectFinderUi
+      fixedPageSize={5}
+      key="searchSavedObjectFinder"
+      noItemsMessage="No data sources have been configured yet."
+      onChoose={[Function]}
+      savedObjectMetaData={
+        Array [
+          Object {
+            "getIconForSavedObject": [Function],
+            "name": "Data Source",
+            "type": "data-source",
+          },
+        ]
+      }
+      showFilter={false}
+    />
+  </EuiFlexItem>
+  <EuiSpacer
+    size="m"
+  />
+  <EuiFlexGroup
+    justifyContent="flexEnd"
+  >
+    <EuiFlexItem
+      grow={false}
+    >
+      <EuiButton
+        data-test-subj="createIndexPatternStepDataSourceNextStepButton"
+        fill={true}
+        iconSide="right"
+        iconType="arrowRight"
+        isDisabled={true}
+        onClick={[Function]}
+      >
+        <FormattedMessage
+          defaultMessage="Next step"
+          id="indexPatternManagement.createIndexPattern.step.nextStepButton"
+          values={Object {}}
+        />
+      </EuiButton>
+    </EuiFlexItem>
+  </EuiFlexGroup>
+</div>
+`;
+
+exports[`Header should render normally 1`] = `
+<div>
+  <EuiTitle
+    size="s"
+  >
+    <h2>
+      <FormattedMessage
+        defaultMessage="Step {currentStepNumber} of {totalStepNumber}: Configure data source"
+        id="indexPatternManagement.createIndexPattern.stepDataSourceHeader"
+        values={
+          Object {
+            "currentStepNumber": 0,
+            "totalStepNumber": 0,
+          }
+        }
+      />
+    </h2>
+  </EuiTitle>
+  <EuiText>
+    <FormattedMessage
+      defaultMessage="Please pick the data source -- within which to configure index patterns."
+      id="indexPatternManagement.createIndexPattern.stepDataSourceLabel"
+      values={Object {}}
+    />
+  </EuiText>
+  <EuiSpacer
+    size="m"
+  />
+  <EuiRadio
+    checked={true}
+    compressed={true}
+    data-test-subj="createIndexPatternStepDataSourceUseDefaultRadio"
+    id="useDefault"
+    label={
+      <FormattedMessage
+        defaultMessage="Use default"
+        id="indexPatternManagement.createIndexPattern.stepDataSource.useDefaultLabel"
+        values={Object {}}
+      />
+    }
+    onChange={[Function]}
+  />
+  <EuiText
+    className="dataSourceRadioHelperText"
+    size="s"
+  >
+    <FormattedMessage
+      defaultMessage="Uses the default data source configured by the OpenSearch dashboards administrator."
+      id="indexPatternManagement.createIndexPattern.stepDataSource.useDefault.helperText"
+      values={Object {}}
+    />
+  </EuiText>
+  <EuiSpacer
+    size="l"
+  />
+  <EuiRadio
+    checked={false}
+    compressed={true}
+    data-test-subj="createIndexPatternStepDataSourceUseDataSourceRadio"
+    id="useDataSource"
+    label={
+      <FormattedMessage
+        defaultMessage="Choose data source"
+        id="indexPatternManagement.createIndexPattern.stepDataSource.useDataSourceLabel"
+        values={Object {}}
+      />
+    }
+    onChange={[Function]}
+  />
+  <EuiText
+    className="dataSourceRadioHelperText"
+    size="s"
+  >
+    <FormattedMessage
+      defaultMessage="Connect to an existing external data source."
+      id="indexPatternManagement.createIndexPattern.stepDataSource.useDataSource.helperText"
+      values={Object {}}
+    />
+  </EuiText>
+  <EuiSpacer
+    size="m"
+  />
+  <EuiFlexGroup
+    justifyContent="flexEnd"
+  >
+    <EuiFlexItem
+      grow={false}
+    >
+      <EuiButton
+        data-test-subj="createIndexPatternStepDataSourceNextStepButton"
+        fill={true}
+        iconSide="right"
+        iconType="arrowRight"
+        isDisabled={false}
+        onClick={[Function]}
+      >
+        <FormattedMessage
+          defaultMessage="Next step"
+          id="indexPatternManagement.createIndexPattern.step.nextStepButton"
+          values={Object {}}
+        />
+      </EuiButton>
+    </EuiFlexItem>
+  </EuiFlexGroup>
+</div>
+`;
diff --git a/src/plugins/index_pattern_management/public/components/create_index_pattern_wizard/components/step_data_source/components/header/header.test.tsx b/src/plugins/index_pattern_management/public/components/create_index_pattern_wizard/components/step_data_source/components/header/header.test.tsx
new file mode 100644
index 000000000000..0805f6a5f78e
--- /dev/null
+++ b/src/plugins/index_pattern_management/public/components/create_index_pattern_wizard/components/step_data_source/components/header/header.test.tsx
@@ -0,0 +1,98 @@
+/*
+ * Copyright OpenSearch Contributors
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+import React from 'react';
+import { Header } from '../header';
+import { shallow } from 'enzyme';
+
+describe('Header', () => {
+  it('should render normally', () => {
+    const component = shallow(
+      <Header
+        onDataSourceSelected={() => {}}
+        dataSourceRef={{ type: 'type', id: 'id' }!}
+        goToNextStep={() => {}}
+        isNextStepDisabled={true}
+        stepInfo={{ totalStepNumber: 0, currentStepNumber: 0 }}
+      />
+    );
+
+    expect(component).toMatchSnapshot();
+  });
+
+  it('should render data source finder when choose to use data source', () => {
+    const component = shallow(
+      <Header
+        onDataSourceSelected={() => {}}
+        dataSourceRef={{ type: 'type', id: 'id' }!}
+        goToNextStep={() => {}}
+        isNextStepDisabled={true}
+        stepInfo={{ totalStepNumber: 0, currentStepNumber: 0 }}
+      />
+    );
+
+    component
+      .find('[data-test-subj="createIndexPatternStepDataSourceUseDataSourceRadio"]')
+      .simulate('change', {
+        target: {
+          checked: true,
+        },
+      });
+
+    expect(component).toMatchSnapshot();
+  });
+
+  it('should disable next step before select data source', () => {
+    const component = shallow(
+      <Header
+        onDataSourceSelected={() => {}}
+        dataSourceRef={{ type: 'type', id: 'id' }!}
+        goToNextStep={() => {}}
+        isNextStepDisabled={true}
+        stepInfo={{ totalStepNumber: 0, currentStepNumber: 0 }}
+      />
+    );
+
+    component
+      .find('[data-test-subj="createIndexPatternStepDataSourceUseDataSourceRadio"]')
+      .simulate('change', {
+        target: {
+          checked: true,
+        },
+      });
+
+    expect(
+      component
+        .find('[data-test-subj="createIndexPatternStepDataSourceNextStepButton"]')
+        .prop('isDisabled')
+    ).toEqual(true);
+  });
+
+  it('should enable next step when pick default option', () => {
+    const component = shallow(
+      <Header
+        onDataSourceSelected={() => {}}
+        dataSourceRef={{ type: 'type', id: 'id' }!}
+        goToNextStep={() => {}}
+        isNextStepDisabled={true}
+        stepInfo={{ totalStepNumber: 0, currentStepNumber: 0 }}
+      />
+    );
+
+    component
+      .find('[data-test-subj="createIndexPatternStepDataSourceUseDefaultRadio"]')
+      .simulate('change', {
+        target: {
+          checked: true,
+        },
+      });
+
+    expect(
+      component
+        .find('[data-test-subj="createIndexPatternStepDataSourceNextStepButton"]')
+        .prop('isDisabled')
+    ).toEqual(false);
+  });
+});
diff --git a/src/plugins/index_pattern_management/public/components/create_index_pattern_wizard/components/step_data_source/components/header/header.tsx b/src/plugins/index_pattern_management/public/components/create_index_pattern_wizard/components/step_data_source/components/header/header.tsx
index b66aeceecb51..5786752b27e8 100644
--- a/src/plugins/index_pattern_management/public/components/create_index_pattern_wizard/components/step_data_source/components/header/header.tsx
+++ b/src/plugins/index_pattern_management/public/components/create_index_pattern_wizard/components/step_data_source/components/header/header.tsx
@@ -27,7 +27,7 @@ import { useOpenSearchDashboards } from '../../../../../../../../../plugins/open
 import { StepInfo } from '../../../../types';
 
 interface HeaderProps {
-  onSearchSelected: (id: string, type: string) => void;
+  onDataSourceSelected: (id: string, type: string) => void;
   dataSourceRef: DataSourceRef;
   goToNextStep: (dataSourceRef: DataSourceRef) => void;
   isNextStepDisabled: boolean;
@@ -37,7 +37,7 @@ interface HeaderProps {
 const DATA_SOURCE_PAGE_SIZE = 5;
 
 export const Header: React.FC<HeaderProps> = (props: HeaderProps) => {
-  const { dataSourceRef, onSearchSelected, goToNextStep, isNextStepDisabled, stepInfo } = props;
+  const { dataSourceRef, onDataSourceSelected, goToNextStep, isNextStepDisabled, stepInfo } = props;
   const { currentStepNumber, totalStepNumber } = stepInfo;
 
   const [defaultChecked, setDefaultChecked] = useState(true);
@@ -74,10 +74,9 @@ export const Header: React.FC<HeaderProps> = (props: HeaderProps) => {
           defaultMessage="Please pick the data source -- within which to configure index patterns."
         />
       </EuiText>
-
       <EuiSpacer size="m" />
-
       <EuiRadio
+        data-test-subj="createIndexPatternStepDataSourceUseDefaultRadio"
         id={'useDefault'}
         label={
           <FormattedMessage
@@ -97,6 +96,7 @@ export const Header: React.FC<HeaderProps> = (props: HeaderProps) => {
       </EuiText>
       <EuiSpacer size="l" />
       <EuiRadio
+        data-test-subj="createIndexPatternStepDataSourceUseDataSourceRadio"
         id={'useDataSource'}
         label={
           <FormattedMessage
@@ -119,7 +119,7 @@ export const Header: React.FC<HeaderProps> = (props: HeaderProps) => {
           <EuiSpacer size="m" />
           <SavedObjectFinderUi
             key="searchSavedObjectFinder"
-            onChoose={onSearchSelected}
+            onChoose={onDataSourceSelected}
             showFilter={false}
             noItemsMessage={i18n.translate(
               'indexPatternManagement.createIndexPattern.searchSelection.notFoundLabel',
@@ -149,6 +149,7 @@ export const Header: React.FC<HeaderProps> = (props: HeaderProps) => {
       <EuiFlexGroup justifyContent="flexEnd">
         <EuiFlexItem grow={false}>
           <EuiButton
+            data-test-subj="createIndexPatternStepDataSourceNextStepButton"
             fill
             iconSide="right"
             iconType="arrowRight"
diff --git a/src/plugins/index_pattern_management/public/components/create_index_pattern_wizard/components/step_data_source/step_data_source.test.tsx b/src/plugins/index_pattern_management/public/components/create_index_pattern_wizard/components/step_data_source/step_data_source.test.tsx
new file mode 100644
index 000000000000..42c5ffa4cee6
--- /dev/null
+++ b/src/plugins/index_pattern_management/public/components/create_index_pattern_wizard/components/step_data_source/step_data_source.test.tsx
@@ -0,0 +1,21 @@
+/*
+ * Copyright OpenSearch Contributors
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+import React from 'react';
+import { shallow } from 'enzyme';
+import { StepDataSource } from './step_data_source';
+
+describe('StepDataSource', () => {
+  it('should render normally', () => {
+    const component = shallow(
+      <StepDataSource
+        goToNextStep={() => {}}
+        stepInfo={{ totalStepNumber: 0, currentStepNumber: 0 }}
+      />
+    );
+
+    expect(component).toMatchSnapshot();
+  });
+});
diff --git a/src/plugins/index_pattern_management/public/components/create_index_pattern_wizard/components/step_data_source/step_data_source.tsx b/src/plugins/index_pattern_management/public/components/create_index_pattern_wizard/components/step_data_source/step_data_source.tsx
index ea16e93ae539..5e1b1c92f1aa 100644
--- a/src/plugins/index_pattern_management/public/components/create_index_pattern_wizard/components/step_data_source/step_data_source.tsx
+++ b/src/plugins/index_pattern_management/public/components/create_index_pattern_wizard/components/step_data_source/step_data_source.tsx
@@ -21,7 +21,7 @@ export const StepDataSource = (props: StepDataSourceProps) => {
   const [selectedDataSource, setSelectedDataSource] = useState<DataSourceRef>();
   const [isNextStepDisabled, setIsNextStepDisabled] = useState(true);
 
-  const onSearchSelected = (id: string, selectedType: string) => {
+  const onDataSourceSelected = (id: string, selectedType: string) => {
     const selected = { id, type: selectedType };
 
     setSelectedDataSource(selected);
@@ -32,7 +32,7 @@ export const StepDataSource = (props: StepDataSourceProps) => {
     return (
       <EuiPageContent>
         <Header
-          onSearchSelected={onSearchSelected}
+          onDataSourceSelected={onDataSourceSelected}
           dataSourceRef={selectedDataSource!}
           goToNextStep={() => goToNextStep(selectedDataSource!)}
           isNextStepDisabled={isNextStepDisabled}