diff --git a/packages/dashboard-frontend/src/services/workspace-client/devworkspace/devWorkspaceClient.ts b/packages/dashboard-frontend/src/services/workspace-client/devworkspace/devWorkspaceClient.ts
index 528826235..3c62ec8da 100644
--- a/packages/dashboard-frontend/src/services/workspace-client/devworkspace/devWorkspaceClient.ts
+++ b/packages/dashboard-frontend/src/services/workspace-client/devworkspace/devWorkspaceClient.ts
@@ -33,6 +33,7 @@ import {
 import {
   DEVWORKSPACE_CONFIG_ATTR,
   DEVWORKSPACE_CONTAINER_BUILD_ATTR,
+  DEVWORKSPACE_STORAGE_TYPE_ATTR,
 } from '@/services/devfileApi/devWorkspace/spec/template';
 import { delay } from '@/services/helpers/delay';
 import { isWebTerminal } from '@/services/helpers/devworkspace';
@@ -209,14 +210,22 @@ export class DevWorkspaceClient {
     return DwtApi.createTemplate(devWorkspaceTemplateResource);
   }
 
-  async updateDevWorkspace(
-    devWorkspace: devfileApi.DevWorkspace,
+  /**
+   * Update the storage-type of a devworkspace
+   * @param namespace
+   * @param name
+   * @param storageType
+   */
+  async updateDevWorkspaceStorageType(
+    namespace,
+    name,
+    storageType,
   ): Promise<{ headers: DwApi.Headers; devWorkspace: devfileApi.DevWorkspace }> {
-    return await DwApi.patchWorkspace(devWorkspace.metadata.namespace, devWorkspace.metadata.name, [
+    return await DwApi.patchWorkspace(namespace, name, [
       {
         op: 'replace',
-        path: '/spec/template/components',
-        value: devWorkspace.spec.template.components || [],
+        path: '/spec/template/attributes/' + DEVWORKSPACE_STORAGE_TYPE_ATTR.replace(/\//g, '~1'),
+        value: storageType,
       },
     ]);
   }
diff --git a/packages/dashboard-frontend/src/store/Workspaces/devWorkspaces/actions/actionCreators/__tests__/createWorkspaceFromResources.spec.ts b/packages/dashboard-frontend/src/store/Workspaces/devWorkspaces/actions/actionCreators/__tests__/createWorkspaceFromResources.spec.ts
index 92422364e..c5ce53f0b 100644
--- a/packages/dashboard-frontend/src/store/Workspaces/devWorkspaces/actions/actionCreators/__tests__/createWorkspaceFromResources.spec.ts
+++ b/packages/dashboard-frontend/src/store/Workspaces/devWorkspaces/actions/actionCreators/__tests__/createWorkspaceFromResources.spec.ts
@@ -40,6 +40,25 @@ jest.mock('@/store/InfrastructureNamespaces');
 jest.mock('@/store/ClusterInfo');
 
 describe('devWorkspaces, actions', () => {
+  let mockWorkspace: devfileApi.DevWorkspace;
+
+  beforeEach(() => {
+    mockWorkspace = {
+      metadata: {
+        namespace: 'test-namespace',
+        name: 'test-workspace',
+        uid: '1',
+      },
+      spec: {
+        template: {
+          attributes: {
+            'controller.devfile.io/storage-type': 'per-user',
+          },
+        },
+      },
+    } as devfileApi.DevWorkspace;
+  });
+
   afterEach(() => {
     jest.clearAllMocks();
   });
@@ -48,20 +67,12 @@ describe('devWorkspaces, actions', () => {
     let store: ReturnType<typeof createMockStore>;
     const mockCreateDevWorkspace = jest.fn();
     const mockCreateDevWorkspaceTemplate = jest.fn();
-    const mockUpdateDevWorkspace = jest.fn();
+    const mockUpdateDevWorkspaceStorageType = jest.fn();
     const mockVerifyAuthorized = verifyAuthorized as jest.MockedFunction<typeof verifyAuthorized>;
     const mockUpdateDevWorkspaceTemplate = updateDevWorkspaceTemplate as jest.MockedFunction<
       typeof updateDevWorkspaceTemplate
     >;
 
-    const mockWorkspace = {
-      metadata: {
-        namespace: 'test-namespace',
-        name: 'test-workspace',
-        uid: '1',
-      },
-    } as devfileApi.DevWorkspace;
-
     const mockWorkspaceTemplate = {} as devfileApi.DevWorkspaceTemplate;
 
     const mockFactoryParams = {} as Partial<FactoryParams>;
@@ -92,7 +103,7 @@ describe('devWorkspaces, actions', () => {
       (getDevWorkspaceClient as jest.Mock).mockReturnValue({
         createDevWorkspace: mockCreateDevWorkspace,
         createDevWorkspaceTemplate: mockCreateDevWorkspaceTemplate,
-        updateDevWorkspace: mockUpdateDevWorkspace,
+        updateDevWorkspaceStorageType: mockUpdateDevWorkspaceStorageType,
       });
 
       mockCreateDevWorkspace.mockResolvedValue({
@@ -100,7 +111,7 @@ describe('devWorkspaces, actions', () => {
         headers: {},
       });
 
-      mockUpdateDevWorkspace.mockResolvedValue({
+      mockUpdateDevWorkspaceStorageType.mockResolvedValue({
         devWorkspace: mockWorkspace,
         headers: {},
       });
@@ -132,7 +143,11 @@ describe('devWorkspaces, actions', () => {
 
       expect(mockCreateDevWorkspaceTemplate).toHaveBeenCalled();
 
-      expect(mockUpdateDevWorkspace).toHaveBeenCalledWith(mockWorkspace);
+      expect(mockUpdateDevWorkspaceStorageType).toHaveBeenCalledWith(
+        'test-namespace',
+        'test-workspace',
+        'per-user',
+      );
     });
 
     it('should handle warnings from createDevWorkspace and dispatch warning action', async () => {
@@ -159,8 +174,8 @@ describe('devWorkspaces, actions', () => {
       expect(actions[2]).toEqual(devWorkspacesAddAction(mockWorkspace));
     });
 
-    it('should handle warnings from updateDevWorkspace and dispatch warning action', async () => {
-      mockUpdateDevWorkspace.mockResolvedValueOnce({
+    it('should handle warnings from updateDevWorkspaceStorageType and dispatch warning action', async () => {
+      mockUpdateDevWorkspaceStorageType.mockResolvedValueOnce({
         devWorkspace: mockWorkspace,
         headers: {
           warning: '299 - Another warning message',
diff --git a/packages/dashboard-frontend/src/store/Workspaces/devWorkspaces/actions/actionCreators/createWorkspaceFromResources.ts b/packages/dashboard-frontend/src/store/Workspaces/devWorkspaces/actions/actionCreators/createWorkspaceFromResources.ts
index 2d9e782a5..7635f03c4 100644
--- a/packages/dashboard-frontend/src/store/Workspaces/devWorkspaces/actions/actionCreators/createWorkspaceFromResources.ts
+++ b/packages/dashboard-frontend/src/store/Workspaces/devWorkspaces/actions/actionCreators/createWorkspaceFromResources.ts
@@ -13,6 +13,7 @@
 import common, { ApplicationId } from '@eclipse-che/common';
 
 import devfileApi from '@/services/devfileApi';
+import { DEVWORKSPACE_STORAGE_TYPE_ATTR } from '@/services/devfileApi/devWorkspace/spec/template';
 import { FactoryParams } from '@/services/helpers/factoryFlow/buildFactoryParams';
 import { AppThunk } from '@/store';
 import { selectApplications } from '@/store/ClusterInfo';
@@ -54,6 +55,10 @@ export const createWorkspaceFromResources =
 
       dispatch(devWorkspacesRequestAction());
 
+      const storageType = devWorkspace.spec?.template?.attributes?.[DEVWORKSPACE_STORAGE_TYPE_ATTR];
+      if (storageType && storageType !== 'ephemeral') {
+        devWorkspace.spec.template.attributes[DEVWORKSPACE_STORAGE_TYPE_ATTR] = 'ephemeral';
+      }
       /* create a new DevWorkspace */
       const createResp = await getDevWorkspaceClient().createDevWorkspace(
         defaultNamespace,
@@ -90,18 +95,27 @@ export const createWorkspaceFromResources =
 
       /* update the DevWorkspace */
 
-      const updateResp = await getDevWorkspaceClient().updateDevWorkspace(createResp.devWorkspace);
-
-      if (updateResp.headers.warning) {
-        dispatch(
-          devWorkspaceWarningUpdateAction({
-            warning: cleanupMessage(updateResp.headers.warning),
-            workspace: updateResp.devWorkspace,
-          }),
+      if (storageType && storageType !== 'ephemeral') {
+        const { namespace, name } = devWorkspace.metadata;
+        const updateResp = await getDevWorkspaceClient().updateDevWorkspaceStorageType(
+          namespace,
+          name,
+          storageType,
         );
-      }
 
-      dispatch(devWorkspacesAddAction(updateResp.devWorkspace));
+        if (updateResp.headers.warning) {
+          dispatch(
+            devWorkspaceWarningUpdateAction({
+              warning: cleanupMessage(updateResp.headers.warning),
+              workspace: updateResp.devWorkspace,
+            }),
+          );
+        }
+
+        dispatch(devWorkspacesAddAction(updateResp.devWorkspace));
+      } else {
+        dispatch(devWorkspacesAddAction(createResp.devWorkspace));
+      }
     } catch (e) {
       const errorMessage =
         'Failed to create a new workspace, reason: ' + common.helpers.errors.getMessage(e);