diff --git a/src/Common/Constants.ts b/src/Common/Constants.ts
index 69bd5ed49..0658d28c5 100644
--- a/src/Common/Constants.ts
+++ b/src/Common/Constants.ts
@@ -90,6 +90,11 @@ export class CapabilityNames {
   public static readonly EnableServerless: string = "EnableServerless";
 }
 
+export enum CapacityMode {
+  Provisioned = "Provisioned",
+  Serverless = "Serverless",
+}
+
 // flight names returned from the portal are always lowercase
 export class Flights {
   public static readonly SettingsV2 = "settingsv2";
diff --git a/src/Contracts/DataModels.ts b/src/Contracts/DataModels.ts
index 3c8a5175d..e85f56964 100644
--- a/src/Contracts/DataModels.ts
+++ b/src/Contracts/DataModels.ts
@@ -1,4 +1,4 @@
-import { ConnectionStatusType, ContainerStatusType } from "../Common/Constants";
+import { CapacityMode, ConnectionStatusType, ContainerStatusType } from "../Common/Constants";
 
 export interface ArmEntity {
   id: string;
@@ -35,6 +35,7 @@ export interface DatabaseAccountExtendedProperties {
   ipRules?: IpRule[];
   privateEndpointConnections?: unknown[];
   capacity?: { totalThroughputLimit: number };
+  capacityMode?: CapacityMode;
   locations?: DatabaseAccountResponseLocation[];
   postgresqlEndpoint?: string;
   publicNetworkAccess?: string;
diff --git a/src/Utils/CapabilityUtils.ts b/src/Utils/CapabilityUtils.ts
index fc2de8149..216eff13d 100644
--- a/src/Utils/CapabilityUtils.ts
+++ b/src/Utils/CapabilityUtils.ts
@@ -9,4 +9,10 @@ export const isCapabilityEnabled = (capabilityName: string): boolean => {
   return false;
 };
 
-export const isServerlessAccount = (): boolean => isCapabilityEnabled(Constants.CapabilityNames.EnableServerless);
+export const isServerlessAccount = (): boolean => {
+  const { databaseAccount } = userContext;
+  return (
+    databaseAccount?.properties?.capacityMode === Constants.CapacityMode.Serverless ||
+    isCapabilityEnabled(Constants.CapabilityNames.EnableServerless)
+  );
+};