diff --git a/web-common/src/features/entity-management/AddAssetButton.svelte b/web-common/src/features/entity-management/AddAssetButton.svelte
index e31119eaeff..49630a071f3 100644
--- a/web-common/src/features/entity-management/AddAssetButton.svelte
+++ b/web-common/src/features/entity-management/AddAssetButton.svelte
@@ -85,7 +85,6 @@
    */
   async function handleAddSource() {
     addSourceModal.open();
-    featureFlags.set(true, "sourceImportedModal");
 
     await behaviourEvent?.fireSourceTriggerEvent(
       BehaviourEventAction.SourceAdd,
diff --git a/web-common/src/features/entity-management/WatchResourcesClient.ts b/web-common/src/features/entity-management/WatchResourcesClient.ts
index 3815c7892d9..3f1245cef18 100644
--- a/web-common/src/features/entity-management/WatchResourcesClient.ts
+++ b/web-common/src/features/entity-management/WatchResourcesClient.ts
@@ -21,8 +21,8 @@ import { runtime } from "@rilldata/web-common/runtime-client/runtime-store";
 import { WatchRequestClient } from "@rilldata/web-common/runtime-client/watch-request-client";
 import { get } from "svelte/store";
 import { connectorExplorerStore } from "../connectors/connector-explorer-store";
-import { featureFlags } from "../feature-flags";
 import { sourceImportedPath } from "../sources/sources-store";
+import { isLeafResource } from "./dag-utils";
 
 export class WatchResourcesClient {
   public readonly client: WatchRequestClient<V1WatchResourcesResponse>;
@@ -35,7 +35,7 @@ export class WatchResourcesClient {
     this.client.on("reconnect", () => this.invalidateAllRuntimeQueries());
   }
 
-  private handleWatchResourceResponse(res: V1WatchResourcesResponse) {
+  private async handleWatchResourceResponse(res: V1WatchResourcesResponse) {
     // Log resource status to the browser console during e2e tests. Currently, our e2e tests make assertions
     // based on these logs. However, the e2e tests really should make UI-based assertions.
     if (import.meta.env.VITE_PLAYWRIGHT_TEST) {
@@ -186,11 +186,9 @@ export class WatchResourcesClient {
             // If it's a new source, show the "Source imported successfully" modal
             const isNewSource =
               res.name.kind === ResourceKind.Source &&
-              res.resource.meta.specVersion === "1";
-            const showSourceImportedModal = get(
-              featureFlags.sourceImportedModal,
-            ); // This will be false when unpacking example projects
-            if (isNewSource && showSourceImportedModal) {
+              res.resource.meta.specVersion === "1" &&
+              (await isLeafResource(res.resource, this.instanceId)); // Protects against existing projects reconciling anew
+            if (isNewSource) {
               const filePath = res.resource?.meta?.filePaths?.[0] as string;
               sourceImportedPath.set(filePath);
             }
diff --git a/web-common/src/features/entity-management/dag-utils.ts b/web-common/src/features/entity-management/dag-utils.ts
new file mode 100644
index 00000000000..005e1e16368
--- /dev/null
+++ b/web-common/src/features/entity-management/dag-utils.ts
@@ -0,0 +1,21 @@
+import {
+  getRuntimeServiceListResourcesQueryKey,
+  runtimeServiceListResources,
+  type V1Resource,
+} from "@rilldata/web-common/runtime-client";
+import { queryClient } from "../../lib/svelte-query/globalQueryClient";
+
+export async function isLeafResource(resource: V1Resource, instanceId: string) {
+  const allResources = await queryClient.fetchQuery({
+    queryKey: getRuntimeServiceListResourcesQueryKey(instanceId, undefined),
+    queryFn: () => runtimeServiceListResources(instanceId, undefined),
+  });
+
+  if (!allResources || !allResources.resources) return false;
+
+  const hasDownstreamResource = allResources.resources.some((r: V1Resource) =>
+    r.meta?.refs?.some((ref) => ref.name === resource.meta?.name?.name),
+  );
+
+  return !hasDownstreamResource;
+}
diff --git a/web-common/src/features/feature-flags.ts b/web-common/src/features/feature-flags.ts
index 9fda4a50fb7..fca78de3634 100644
--- a/web-common/src/features/feature-flags.ts
+++ b/web-common/src/features/feature-flags.ts
@@ -30,7 +30,6 @@ type FeatureFlagKey = keyof Omit<FeatureFlags, "set">;
 class FeatureFlags {
   adminServer = new FeatureFlag("rill", false);
   readOnly = new FeatureFlag("rill", false);
-  sourceImportedModal = new FeatureFlag("rill", true);
 
   ai = new FeatureFlag("user", !import.meta.env.VITE_PLAYWRIGHT_TEST);
   exports = new FeatureFlag("user", true);
diff --git a/web-common/src/features/welcome/ProjectCards.svelte b/web-common/src/features/welcome/ProjectCards.svelte
index 77412a58f27..192343b5f80 100644
--- a/web-common/src/features/welcome/ProjectCards.svelte
+++ b/web-common/src/features/welcome/ProjectCards.svelte
@@ -15,7 +15,6 @@
     createRuntimeServiceUnpackExample,
   } from "../../runtime-client";
   import { runtime } from "../../runtime-client/runtime-store";
-  import { featureFlags } from "../feature-flags";
   import { EMPTY_PROJECT_TITLE } from "./constants";
 
   const unpackExampleProject = createRuntimeServiceUnpackExample();
@@ -102,7 +101,6 @@
         disabled={!!selectedProjectName}
         isLoading={selectedProjectName === example.name}
         on:click={async () => {
-          featureFlags.set(false, "sourceImportedModal");
           await unpackProject(example);
         }}
       >