diff --git a/locales/en/plugin__odf-console.json b/locales/en/plugin__odf-console.json
index 0ce5b7c17..cfbbf23e6 100644
--- a/locales/en/plugin__odf-console.json
+++ b/locales/en/plugin__odf-console.json
@@ -55,6 +55,8 @@
   "We could not retrieve any information about the managed cluster {{names}}. Check the documentation for potential causes and follow the steps mentioned and try again.": "We could not retrieve any information about the managed cluster {{names}}. Check the documentation for potential causes and follow the steps mentioned and try again.",
   "{{ names }} has either an unsupported Data Foundation version or the Data Foundation operator is missing, install or update to Data Foundation {{ version }} or the latest version to enable DR protection.": "{{ names }} has either an unsupported Data Foundation version or the Data Foundation operator is missing, install or update to Data Foundation {{ version }} or the latest version to enable DR protection.",
   "{{ names }} is not connected to RHCS": "{{ names }} is not connected to RHCS",
+  "Cluster not pre-configured for Regional-DR": "Cluster not pre-configured for Regional-DR",
+  "The selected cluster(s)[{{clusters}}] is not configured for Regional-DR setup. Migrate the OSDs to optimise the cluster for disaster recovery services.": "The selected cluster(s)[{{clusters}}] is not configured for Regional-DR setup. Migrate the OSDs to optimise the cluster for disaster recovery services.",
   "Sync schedule": "Sync schedule",
   "Replication policy": "Replication policy",
   "Information unavailable": "Information unavailable",
diff --git a/packages/mco/components/create-dr-policy/create-dr-policy.tsx b/packages/mco/components/create-dr-policy/create-dr-policy.tsx
index 67661b83c..803c3deb1 100644
--- a/packages/mco/components/create-dr-policy/create-dr-policy.tsx
+++ b/packages/mco/components/create-dr-policy/create-dr-policy.tsx
@@ -242,7 +242,7 @@ const CreateDRPolicy: React.FC<{}> = () => {
     !!state.policyName &&
     !!state.replicationType &&
     state.selectedClusters.length === MAX_ALLOWED_CLUSTERS &&
-    !checkForErrors(state.selectedClusters);
+    !checkForErrors(state.selectedClusters, state.replicationType);
 
   const loaded = mirrorPeerLoaded && policyLoaded;
   const loadedError = mirrorPeerLoadError || policyLoadedError;
@@ -317,7 +317,12 @@ const CreateDRPolicy: React.FC<{}> = () => {
               label={t('Selected clusters')}
             >
               {state.selectedClusters.map((c, i) => (
-                <SelectedCluster key={c.name} id={i + 1} cluster={c} />
+                <SelectedCluster
+                  key={c.name}
+                  id={i + 1}
+                  cluster={c}
+                  replicationType={state.replicationType}
+                />
               ))}
             </FormGroup>
           )}
diff --git a/packages/mco/components/create-dr-policy/reducer.ts b/packages/mco/components/create-dr-policy/reducer.ts
index b43f1c58f..ab2712097 100644
--- a/packages/mco/components/create-dr-policy/reducer.ts
+++ b/packages/mco/components/create-dr-policy/reducer.ts
@@ -7,6 +7,8 @@ export type StorageClusterInfoType = {
   storageSystemNamespacedName: string;
   // Ceph FSID to determine RDR/MDR.
   cephFSID: string;
+  //  OSDs are migrated for the RDR or not.
+  isDROptimized: boolean;
 };
 
 export type ODFConfigInfoType = {
diff --git a/packages/mco/components/create-dr-policy/select-cluster-list.tsx b/packages/mco/components/create-dr-policy/select-cluster-list.tsx
index e9e13af49..90399d7b1 100644
--- a/packages/mco/components/create-dr-policy/select-cluster-list.tsx
+++ b/packages/mco/components/create-dr-policy/select-cluster-list.tsx
@@ -93,6 +93,7 @@ const getODFInfo = (
       storageClusterNamespace
     );
     const cephFSID = odfInfo?.storageCluster?.cephClusterFSID;
+    const isDROptimized = odfInfo?.storageCluster?.isDROptimized;
 
     return {
       odfVersion,
@@ -105,6 +106,7 @@ const getODFInfo = (
         storageClusterNamespacedName,
         storageSystemNamespacedName,
         cephFSID,
+        isDROptimized,
       },
     };
   } catch (err) {
@@ -119,6 +121,7 @@ const getODFInfo = (
         storageClusterNamespacedName: '',
         storageSystemNamespacedName: '',
         cephFSID: '',
+        isDROptimized: false,
       },
     };
   }
diff --git a/packages/mco/components/create-dr-policy/select-replication-type.tsx b/packages/mco/components/create-dr-policy/select-replication-type.tsx
index f9fcce86d..eab7064d6 100644
--- a/packages/mco/components/create-dr-policy/select-replication-type.tsx
+++ b/packages/mco/components/create-dr-policy/select-replication-type.tsx
@@ -45,7 +45,8 @@ const checkSyncPolicyAlreadyExists = (
   });
 
 const getClusterErrorInfo = (
-  selectedClusters: ManagedClusterInfoType[]
+  selectedClusters: ManagedClusterInfoType[],
+  replicationType: REPLICATION_TYPE
 ): ClusterErrorType =>
   selectedClusters.reduce(
     (acc, cluster) => {
@@ -62,6 +63,12 @@ const getClusterErrorInfo = (
       if (!storageClusterInfo?.cephFSID) {
         acc.clustersWithUnsuccessfulODF.push(cluster.name);
       }
+      if (
+        !storageClusterInfo?.isDROptimized &&
+        replicationType === REPLICATION_TYPE.ASYNC
+      ) {
+        acc.clustersWithoutDROptimizedODF.push(cluster.name);
+      }
       return acc;
     },
     {
@@ -69,6 +76,7 @@ const getClusterErrorInfo = (
       clustersWithUnsupportedODF: [],
       clustersWithoutODF: [],
       clustersWithUnsuccessfulODF: [],
+      clustersWithoutDROptimizedODF: [],
     }
   );
 
@@ -76,9 +84,13 @@ const getErrorMessage = (
   selectedClusters: ManagedClusterInfoType[],
   requiredODFVersion: string,
   isSyncPolicyFound: boolean,
+  replicationType: REPLICATION_TYPE,
   t: TFunction
 ): ErrorMessageType => {
-  const clusterErrorInfo = getClusterErrorInfo(selectedClusters);
+  const clusterErrorInfo = getClusterErrorInfo(
+    selectedClusters,
+    replicationType
+  );
   if (isSyncPolicyFound) {
     return {
       message: t('Existing DRPolicy detected'),
@@ -117,6 +129,14 @@ const getErrorMessage = (
         names: clusterErrorInfo.clustersWithUnsuccessfulODF.join(' & '),
       }),
     };
+  } else if (!!clusterErrorInfo.clustersWithoutDROptimizedODF.length) {
+    return {
+      message: t('Cluster not pre-configured for Regional-DR'),
+      description: t(
+        'The selected cluster(s)[{{clusters}}] is not configured for Regional-DR setup. Migrate the OSDs to optimise the cluster for disaster recovery services.',
+        { clusters: clusterErrorInfo.clustersWithoutDROptimizedODF.join(', ') }
+      ),
+    };
   }
   return null;
 };
@@ -171,6 +191,7 @@ export const DRReplicationType: React.FC<DRReplicationTypeProps> = ({
     selectedClusters,
     requiredODFVersion,
     isSyncPolicyFound,
+    replicationType,
     t
   );
 
@@ -276,6 +297,7 @@ type ClusterErrorType = {
   clustersWithUnsupportedODF: string[];
   clustersWithoutODF: string[];
   clustersWithUnsuccessfulODF: string[];
+  clustersWithoutDROptimizedODF: string[];
 };
 
 type ErrorMessageType = {
diff --git a/packages/mco/components/create-dr-policy/selected-cluster-view.tsx b/packages/mco/components/create-dr-policy/selected-cluster-view.tsx
index 1a70fdfa8..594026db6 100644
--- a/packages/mco/components/create-dr-policy/selected-cluster-view.tsx
+++ b/packages/mco/components/create-dr-policy/selected-cluster-view.tsx
@@ -1,4 +1,5 @@
 import * as React from 'react';
+import { REPLICATION_TYPE } from '@odf/mco/constants';
 import { parseNamespaceName } from '@odf/mco/utils';
 import { RedExclamationCircleIcon } from '@odf/shared/status/icons';
 import { useCustomTranslation } from '@odf/shared/useCustomTranslationHook';
@@ -16,32 +17,38 @@ import './create-dr-policy.scss';
 type SelectedClusterProps = {
   id: number;
   cluster: ManagedClusterInfoType;
+  replicationType: REPLICATION_TYPE;
 };
 
-export const checkForErrors = (clusters: ManagedClusterInfoType[]) =>
+export const checkForErrors = (
+  clusters: ManagedClusterInfoType[],
+  replicationType: REPLICATION_TYPE
+) =>
   clusters.some((cluster) => {
     const { isManagedClusterAvailable, odfInfo } = cluster;
-    const { cephFSID, storageSystemNamespacedName } =
+    const { cephFSID, storageSystemNamespacedName, isDROptimized } =
       odfInfo.storageClusterInfo;
     const [storageSystemName] = parseNamespaceName(storageSystemNamespacedName);
     return (
       !isManagedClusterAvailable ||
       !odfInfo?.isValidODFVersion ||
       !storageSystemName ||
-      !cephFSID
+      !cephFSID ||
+      (replicationType === REPLICATION_TYPE.ASYNC && !isDROptimized)
     );
   });
 
 export const SelectedCluster: React.FC<SelectedClusterProps> = ({
   id,
   cluster,
+  replicationType,
 }) => {
   const { t } = useCustomTranslation();
   const { name, region, odfInfo } = cluster;
   const [storageSystemName] = parseNamespaceName(
     odfInfo.storageClusterInfo.storageSystemNamespacedName
   );
-  const anyError = checkForErrors([cluster]);
+  const anyError = checkForErrors([cluster], replicationType);
   return (
     <Flex
       display={{ default: 'inlineFlex' }}
diff --git a/packages/mco/types/odf-mco.ts b/packages/mco/types/odf-mco.ts
index 3993dc479..06705f317 100644
--- a/packages/mco/types/odf-mco.ts
+++ b/packages/mco/types/odf-mco.ts
@@ -26,6 +26,7 @@ export type InfoStorageCluster = {
   };
   storageProviderEndpoint: string;
   cephClusterFSID: string;
+  isDROptimized: boolean;
 };
 
 export type ODFInfoYamlObject = {