diff --git a/packages/zowe-explorer/__tests__/__unit__/trees/dataset/DatasetActions.unit.test.ts b/packages/zowe-explorer/__tests__/__unit__/trees/dataset/DatasetActions.unit.test.ts
index adabd3327..7b12c46a6 100644
--- a/packages/zowe-explorer/__tests__/__unit__/trees/dataset/DatasetActions.unit.test.ts
+++ b/packages/zowe-explorer/__tests__/__unit__/trees/dataset/DatasetActions.unit.test.ts
@@ -279,6 +279,28 @@ describe("Dataset Actions Unit Tests - Function createMember", () => {
             }
         );
     });
+
+    it("should not replace existing member when user cancels the replacement prompt", async () => {
+        const blockMocks = createBlockMocksShared();
+        const parent = new ZoweDatasetNode({
+            label: "parent",
+            collapsibleState: vscode.TreeItemCollapsibleState.Collapsed,
+            parentNode: blockMocks.datasetSessionNode,
+            session: blockMocks.session,
+        });
+
+        blockMocks.testDatasetTree.getChildren = jest.fn().mockResolvedValueOnce([{ ...parent, label: "TESTMEMBER" } as any] as any);
+
+        jest.spyOn(DatasetActions, "determineReplacement").mockResolvedValueOnce("cancel" as any);
+        mocked(vscode.window.showInputBox).mockResolvedValueOnce("TESTMEMBER");
+
+        jest.spyOn(DatasetFSProvider.instance, "fetchDatasetAtUri").mockResolvedValueOnce(true as any);
+
+        await DatasetActions.createMember(parent, blockMocks.testDatasetTree);
+
+        expect(vscode.commands.executeCommand).toHaveBeenCalledWith("vscode.open", { path: "/parent/parent/TESTMEMBER", scheme: "zowe-ds" });
+        expect(blockMocks.testDatasetTree.refresh).toHaveBeenCalled();
+    });
 });
 
 describe("Dataset Actions Unit Tests - Function refreshPS", () => {