diff --git a/extensions/sql-database-projects/src/dialogs/publishDatabaseDialog.ts b/extensions/sql-database-projects/src/dialogs/publishDatabaseDialog.ts
index b6ff320068..7e3fe3f306 100644
--- a/extensions/sql-database-projects/src/dialogs/publishDatabaseDialog.ts
+++ b/extensions/sql-database-projects/src/dialogs/publishDatabaseDialog.ts
@@ -58,6 +58,7 @@ export class PublishDatabaseDialog {
 	private serverName: string | undefined;
 	protected optionsButton: azdataType.ButtonComponent | undefined;
 	private publishOptionsDialog: PublishOptionsDialog | undefined;
+	public publishOptionsModified: boolean = false;
 
 	private completionPromise: Deferred = new Deferred();
 
diff --git a/extensions/sql-database-projects/src/dialogs/publishOptionsDialog.ts b/extensions/sql-database-projects/src/dialogs/publishOptionsDialog.ts
index 18e0a040aa..159bd11311 100644
--- a/extensions/sql-database-projects/src/dialogs/publishOptionsDialog.ts
+++ b/extensions/sql-database-projects/src/dialogs/publishOptionsDialog.ts
@@ -23,6 +23,7 @@ export class PublishOptionsDialog {
 	public optionsModel: DeployOptionsModel;
 	private optionsFlexBuilder: azdataType.FlexContainer | undefined;
 	private optionsChanged: boolean = false;
+	private isResetOptionsClicked: boolean = false;
 
 	constructor(defaultOptions: mssql.DeploymentOptions, private publish: PublishDatabaseDialog) {
 		this.optionsModel = new DeployOptionsModel(defaultOptions);
@@ -47,6 +48,8 @@ export class PublishOptionsDialog {
 
 		let resetButton = utils.getAzdataApi()!.window.createButton(constants.ResetButton);
 		resetButton.onClick(async () => await this.reset());
+		// If options values already modified then enable the reset button
+		resetButton.enabled = this.publish.publishOptionsModified;
 		this.dialog.customButtons = [resetButton];
 
 		utils.getAzdataApi()!.window.openDialog(this.dialog);
@@ -91,6 +94,8 @@ export class PublishOptionsDialog {
 					const displayName = this.optionsTable?.data[checkboxState.row][1];
 					this.optionsModel.setOptionValue(displayName, checkboxState.checked);
 					this.optionsChanged = true;
+					// customButton[0] is the reset button, enabling it when option checkbox is changed
+					this.dialog.customButtons[0].enabled = true;
 				}
 			}));
 
@@ -149,6 +154,9 @@ export class PublishOptionsDialog {
 		if (this.optionsChanged) {
 			TelemetryReporter.sendActionEvent(TelemetryViews.PublishOptionsDialog, TelemetryActions.optionsChanged);
 		}
+		// When options are Reset to default and clicked Ok, seting optionsChanged flag to false
+		// When options are Reset to default and options are changed and then clicked Ok, seting optionsChanged flag to the state of the option change
+		this.publish.publishOptionsModified = this.isResetOptionsClicked && !this.optionsChanged ? false : (this.optionsChanged || this.publish.publishOptionsModified);
 	}
 
 	/*
@@ -172,6 +180,10 @@ export class PublishOptionsDialog {
 		this.optionsFlexBuilder?.removeItem(this.optionsTable!);
 		this.optionsFlexBuilder?.insertItem(this.optionsTable!, 0, { CSSStyles: { 'overflow': 'scroll', 'height': '65vh', 'padding-top': '2px' } });
 		TelemetryReporter.sendActionEvent(TelemetryViews.PublishOptionsDialog, TelemetryActions.resetOptions);
+
+		// setting optionsChanged to false when reset click, if optionsChanged is true during execute, that means there is an option changed after reset
+		this.isResetOptionsClicked = true;
+		this.optionsChanged = false;
 	}
 
 	private disposeListeners(): void {