diff --git a/x-pack/plugins/index_management/__jest__/client_integration/index_template_wizard/template_edit.test.tsx b/x-pack/plugins/index_management/__jest__/client_integration/index_template_wizard/template_edit.test.tsx
index 6ba2454025beb..2897551a209b2 100644
--- a/x-pack/plugins/index_management/__jest__/client_integration/index_template_wizard/template_edit.test.tsx
+++ b/x-pack/plugins/index_management/__jest__/client_integration/index_template_wizard/template_edit.test.tsx
@@ -71,6 +71,10 @@ describe('<TemplateEdit />', () => {
     const templateToEdit = fixtures.getTemplate({
       name: 'index_template_without_mappings',
       indexPatterns: ['indexPattern1'],
+      dataStream: {
+        hidden: true,
+        anyUnknownKey: 'should_be_kept',
+      },
     });
 
     beforeAll(() => {
@@ -85,7 +89,7 @@ describe('<TemplateEdit />', () => {
       testBed.component.update();
     });
 
-    it('allows you to add mappings', async () => {
+    test('allows you to add mappings', async () => {
       const { actions, find } = testBed;
       // Logistics
       await actions.completeStepOne();
@@ -98,6 +102,47 @@ describe('<TemplateEdit />', () => {
 
       expect(find('fieldsListItem').length).toBe(1);
     });
+
+    test('should keep data stream configuration', async () => {
+      const { actions } = testBed;
+      // Logistics
+      await actions.completeStepOne({
+        name: 'test',
+        indexPatterns: ['myPattern*'],
+        version: 1,
+      });
+      // Component templates
+      await actions.completeStepTwo();
+      // Index settings
+      await actions.completeStepThree();
+      // Mappings
+      await actions.completeStepFour();
+      // Aliases
+      await actions.completeStepFive();
+
+      await act(async () => {
+        actions.clickNextButton();
+      });
+
+      const latestRequest = server.requests[server.requests.length - 1];
+
+      const expected = {
+        name: 'test',
+        indexPatterns: ['myPattern*'],
+        dataStream: {
+          hidden: true,
+          anyUnknownKey: 'should_be_kept',
+        },
+        version: 1,
+        _kbnMeta: {
+          type: 'default',
+          isLegacy: false,
+          hasDatastream: true,
+        },
+      };
+
+      expect(JSON.parse(JSON.parse(latestRequest.requestBody).body)).toEqual(expected);
+    });
   });
 
   describe('with mappings', () => {
diff --git a/x-pack/plugins/index_management/common/types/templates.ts b/x-pack/plugins/index_management/common/types/templates.ts
index d1b51fe5b89bf..7b442b9dd2935 100644
--- a/x-pack/plugins/index_management/common/types/templates.ts
+++ b/x-pack/plugins/index_management/common/types/templates.ts
@@ -46,7 +46,11 @@ export interface TemplateDeserialized {
     name: string;
   };
   _meta?: { [key: string]: any }; // Composable template only
-  dataStream?: {}; // Composable template only
+  // Composable template only
+  dataStream?: {
+    hidden?: boolean;
+    [key: string]: any;
+  };
   _kbnMeta: {
     type: TemplateType;
     hasDatastream: boolean;
diff --git a/x-pack/plugins/index_management/public/application/components/template_form/steps/step_logistics.tsx b/x-pack/plugins/index_management/public/application/components/template_form/steps/step_logistics.tsx
index 89e857eec0bb3..bbc3656195470 100644
--- a/x-pack/plugins/index_management/public/application/components/template_form/steps/step_logistics.tsx
+++ b/x-pack/plugins/index_management/public/application/components/template_form/steps/step_logistics.tsx
@@ -55,7 +55,7 @@ function getFieldsMeta(esDocsBase: string) {
       ),
       testSubject: 'indexPatternsField',
     },
-    dataStream: {
+    createDataStream: {
       title: i18n.translate('xpack.idxMgmt.templateForm.stepLogistics.dataStreamTitle', {
         defaultMessage: 'Data stream',
       }),
@@ -119,6 +119,7 @@ interface LogisticsForm {
 
 interface LogisticsFormInternal extends LogisticsForm {
   addMeta: boolean;
+  doCreateDataStream: boolean;
 }
 
 interface Props {
@@ -132,12 +133,16 @@ function formDeserializer(formData: LogisticsForm): LogisticsFormInternal {
   return {
     ...formData,
     addMeta: Boolean(formData._meta && Object.keys(formData._meta).length),
+    doCreateDataStream: Boolean(formData.dataStream),
   };
 }
 
-function formSerializer(formData: LogisticsFormInternal): LogisticsForm {
-  const { addMeta, ...rest } = formData;
-  return rest;
+function getformSerializer(initialTemplateData: LogisticsForm = {}) {
+  return (formData: LogisticsFormInternal): LogisticsForm => {
+    const { addMeta, doCreateDataStream, ...rest } = formData;
+    const dataStream = doCreateDataStream ? initialTemplateData.dataStream ?? {} : undefined;
+    return { ...rest, dataStream };
+  };
 }
 
 export const StepLogistics: React.FunctionComponent<Props> = React.memo(
@@ -146,7 +151,7 @@ export const StepLogistics: React.FunctionComponent<Props> = React.memo(
       schema: schemas.logistics,
       defaultValue,
       options: { stripEmptyFields: false },
-      serializer: formSerializer,
+      serializer: getformSerializer(defaultValue),
       deserializer: formDeserializer,
     });
     const {
@@ -178,7 +183,7 @@ export const StepLogistics: React.FunctionComponent<Props> = React.memo(
       });
     }, [onChange, isFormValid, validate, getFormData]);
 
-    const { name, indexPatterns, dataStream, order, priority, version } = getFieldsMeta(
+    const { name, indexPatterns, createDataStream, order, priority, version } = getFieldsMeta(
       documentationService.getEsDocsBase()
     );
 
@@ -245,10 +250,10 @@ export const StepLogistics: React.FunctionComponent<Props> = React.memo(
 
           {/* Create data stream */}
           {isLegacy !== true && (
-            <FormRow title={dataStream.title} description={dataStream.description}>
+            <FormRow title={createDataStream.title} description={createDataStream.description}>
               <UseField
-                path="dataStream"
-                componentProps={{ 'data-test-subj': dataStream.testSubject }}
+                path="doCreateDataStream"
+                componentProps={{ 'data-test-subj': createDataStream.testSubject }}
               />
             </FormRow>
           )}
diff --git a/x-pack/plugins/index_management/public/application/components/template_form/template_form_schemas.tsx b/x-pack/plugins/index_management/public/application/components/template_form/template_form_schemas.tsx
index c85126f08685e..2bc146c118ba2 100644
--- a/x-pack/plugins/index_management/public/application/components/template_form/template_form_schemas.tsx
+++ b/x-pack/plugins/index_management/public/application/components/template_form/template_form_schemas.tsx
@@ -129,31 +129,12 @@ export const schemas: Record<string, FormSchema> = {
         },
       ],
     },
-    dataStream: {
+    doCreateDataStream: {
       type: FIELD_TYPES.TOGGLE,
       label: i18n.translate('xpack.idxMgmt.templateForm.stepLogistics.datastreamLabel', {
         defaultMessage: 'Create data stream',
       }),
       defaultValue: false,
-      serializer: (value) => {
-        if (value === true) {
-          // For now, ES expects an empty object when defining a data stream
-          // https://github.com/elastic/elasticsearch/pull/59317
-          return {};
-        }
-      },
-      deserializer: (value) => {
-        if (typeof value === 'boolean') {
-          return value;
-        }
-
-        /**
-         * For now, it is enough to have a "data_stream" declared on the index template
-         * to assume that the template creates a data stream. In the future, this condition
-         * might change
-         */
-        return value !== undefined;
-      },
     },
     order: {
       type: FIELD_TYPES.NUMBER,
diff --git a/x-pack/plugins/index_management/server/routes/api/templates/validate_schemas.ts b/x-pack/plugins/index_management/server/routes/api/templates/validate_schemas.ts
index 18c74716a35b6..3dab4113e6965 100644
--- a/x-pack/plugins/index_management/server/routes/api/templates/validate_schemas.ts
+++ b/x-pack/plugins/index_management/server/routes/api/templates/validate_schemas.ts
@@ -20,7 +20,14 @@ export const templateSchema = schema.object({
     })
   ),
   composedOf: schema.maybe(schema.arrayOf(schema.string())),
-  dataStream: schema.maybe(schema.object({}, { unknowns: 'allow' })),
+  dataStream: schema.maybe(
+    schema.object(
+      {
+        hidden: schema.maybe(schema.boolean()),
+      },
+      { unknowns: 'allow' }
+    )
+  ),
   _meta: schema.maybe(schema.object({}, { unknowns: 'allow' })),
   ilmPolicy: schema.maybe(
     schema.object({
diff --git a/x-pack/plugins/index_management/test/fixtures/template.ts b/x-pack/plugins/index_management/test/fixtures/template.ts
index 016100faea601..90f556794a5d9 100644
--- a/x-pack/plugins/index_management/test/fixtures/template.ts
+++ b/x-pack/plugins/index_management/test/fixtures/template.ts
@@ -53,6 +53,7 @@ export const getTemplate = ({
   order = getRandomNumber(),
   indexPatterns = [],
   template: { settings, aliases, mappings } = {},
+  dataStream,
   hasDatastream = false,
   isLegacy = false,
   type = 'default',
@@ -73,12 +74,13 @@ export const getTemplate = ({
       mappings,
       settings,
     },
+    dataStream,
     hasSettings: objHasProperties(settings),
     hasMappings: objHasProperties(mappings),
     hasAliases: objHasProperties(aliases),
     _kbnMeta: {
       type,
-      hasDatastream,
+      hasDatastream: dataStream !== undefined ? true : hasDatastream,
       isLegacy,
     },
   };