diff --git a/app/server/appsmith-server/src/main/java/com/appsmith/server/configurations/TenantConfig.java b/app/server/appsmith-server/src/main/java/com/appsmith/server/configurations/TenantConfig.java
new file mode 100644
index 00000000000..544430ca03c
--- /dev/null
+++ b/app/server/appsmith-server/src/main/java/com/appsmith/server/configurations/TenantConfig.java
@@ -0,0 +1,45 @@
+package com.appsmith.server.configurations;
+
+import com.appsmith.server.constants.FieldName;
+import com.appsmith.server.domains.Tenant;
+import com.appsmith.server.helpers.CollectionUtils;
+import com.appsmith.server.repositories.CacheableRepositoryHelper;
+import com.appsmith.server.repositories.TenantRepository;
+import lombok.RequiredArgsConstructor;
+import lombok.extern.slf4j.Slf4j;
+import org.springframework.boot.context.event.ApplicationStartedEvent;
+import org.springframework.context.ApplicationListener;
+import org.springframework.context.annotation.Configuration;
+import reactor.core.publisher.Mono;
+
+import static com.appsmith.external.models.BaseDomain.policySetToMap;
+
+@Configuration
+@RequiredArgsConstructor
+@Slf4j
+public class TenantConfig implements ApplicationListener<ApplicationStartedEvent> {
+
+    private final TenantRepository tenantRepository;
+    private final CacheableRepositoryHelper cachableRepositoryHelper;
+
+    // Method to cleanup the cache and update the default tenant policies if the policyMap is empty. This will make sure
+    // cache will be updated if we update the tenant via startup DB migrations.
+    // As we have mocked the TenantService in the tests, we had to manually evict the cache and save the object to DB
+    private Mono<Tenant> cleanupAndUpdateRefreshDefaultTenantPolicies() {
+        log.debug("Cleaning up and updating default tenant policies on server startup");
+        return tenantRepository.findBySlug(FieldName.DEFAULT).flatMap(tenant -> {
+            if (CollectionUtils.isNullOrEmpty(tenant.getPolicyMap())) {
+                tenant.setPolicyMap(policySetToMap(tenant.getPolicies()));
+                return cachableRepositoryHelper
+                        .evictCachedTenant(tenant.getId())
+                        .then(tenantRepository.save(tenant));
+            }
+            return Mono.just(tenant);
+        });
+    }
+
+    @Override
+    public void onApplicationEvent(ApplicationStartedEvent event) {
+        cleanupAndUpdateRefreshDefaultTenantPolicies().block();
+    }
+}