diff --git a/i18n/en.pot b/i18n/en.pot
index 0a68ef12a..6d5fde1b5 100644
--- a/i18n/en.pot
+++ b/i18n/en.pot
@@ -5,8 +5,8 @@ msgstr ""
 "Content-Type: text/plain; charset=utf-8\n"
 "Content-Transfer-Encoding: 8bit\n"
 "Plural-Forms: nplurals=2; plural=(n != 1)\n"
-"POT-Creation-Date: 2026-04-20T04:35:46.003Z\n"
-"PO-Revision-Date: 2026-04-20T04:35:46.003Z\n"
+"POT-Creation-Date: 2026-04-27T07:43:21.475Z\n"
+"PO-Revision-Date: 2026-04-27T07:43:21.476Z\n"
 
 msgid ""
 "THIS NEW RELEASE INCLUDES SHARING SETTINGS PER INSTANCES. FOR THIS VERSION "
diff --git a/src/data/metadata/MetadataD2ApiRepository.ts b/src/data/metadata/MetadataD2ApiRepository.ts
index df747e718..1b3732d94 100644
--- a/src/data/metadata/MetadataD2ApiRepository.ts
+++ b/src/data/metadata/MetadataD2ApiRepository.ts
@@ -68,14 +68,20 @@ export class MetadataD2ApiRepository implements MetadataRepository {
     public async getMetadataByIds<T>(
         ids: string[],
         fields?: object | string,
-        includeDefaults = false
+        includeDefaults = false,
+        preserveNestedDefaultRefs = false
     ): Promise<MetadataPackage<T>> {
         const { apiVersion } = this.targetInstance;
 
         const d2ApiDataStore = new D2ApiDataStore(this.targetInstance);
         const dataStoreIds = DataStoreMetadata.getDataStoreIds(ids);
         const requestFields = typeof fields === "object" ? getFieldsAsString(fields) : fields;
-        const d2Metadata = await this.getMetadata<D2Model>(ids, requestFields, includeDefaults);
+        const d2Metadata = await this.getMetadata<D2Model>(
+            ids,
+            requestFields,
+            includeDefaults,
+            preserveNestedDefaultRefs
+        );
 
         if (apiVersion >= 32 && d2Metadata["dashboards"] && fields === undefined) {
             //Fix dashboard bug from 2.32
@@ -84,7 +90,8 @@ export class MetadataD2ApiRepository implements MetadataRepository {
             const fixedD2Metadata = await this.getMetadata<D2Model>(
                 ids,
                 ":all,dashboardItems[:all,visualization[id,type]]",
-                includeDefaults
+                includeDefaults,
+                preserveNestedDefaultRefs
             );
 
             const metadataPackage = this.transformationRepository.mapPackageFrom(
@@ -589,11 +596,13 @@ export class MetadataD2ApiRepository implements MetadataRepository {
     private async getMetadata<T>(
         elements: string[],
         fields = ":all",
-        includeDefaults: boolean
+        includeDefaults: boolean,
+        preserveNestedDefaultRefs: boolean
     ): Promise<Record<string, T[]>> {
         try {
             const promises = [];
             const chunkSize = 50;
+            const keepDefaults = includeDefaults || preserveNestedDefaultRefs;
 
             for (let i = 0; i < elements.length; i += chunkSize) {
                 const requestElements = elements.slice(i, i + chunkSize).toString();
@@ -602,7 +611,7 @@ export class MetadataD2ApiRepository implements MetadataRepository {
                         .get("/metadata", {
                             fields,
                             filter: "id:in:[" + requestElements + "]",
-                            defaults: includeDefaults ? undefined : "EXCLUDE",
+                            defaults: keepDefaults ? undefined : "EXCLUDE",
                         })
                         .getData()
                 );
diff --git a/src/domain/metadata/builders/MetadataPayloadBuilder.ts b/src/domain/metadata/builders/MetadataPayloadBuilder.ts
index 3ede28837..803cae0dd 100644
--- a/src/domain/metadata/builders/MetadataPayloadBuilder.ts
+++ b/src/domain/metadata/builders/MetadataPayloadBuilder.ts
@@ -238,7 +238,13 @@ export class MetadataPayloadBuilder {
             // Get all the required metadata
             const originInstance = await this.getOriginInstance(originInstanceId);
             const metadataRepository = this.repositoryFactory.metadataRepository(originInstance);
-            const syncMetadata = await metadataRepository.getMetadataByIds(newIds);
+            // DataSets need preserveNestedDefaultRefs because the server-side defaults=EXCLUDE
+            // strips the default categoryOptionCombo.id from compulsoryDataElementOperands,
+            // which then fails on import. Client-side default stripping still runs.
+            const syncMetadata =
+                type === "dataSets"
+                    ? await metadataRepository.getMetadataByIds(newIds, undefined, false, true)
+                    : await metadataRepository.getMetadataByIds(newIds);
             const elements = syncMetadata[collectionName] || [];
             this.registry.addList(builder, newIds);
 
diff --git a/src/domain/metadata/builders/__tests__/MetadataPayloadBuilder.spec.tsx b/src/domain/metadata/builders/__tests__/MetadataPayloadBuilder.spec.tsx
index 34b5c34ad..c88acb2f4 100644
--- a/src/domain/metadata/builders/__tests__/MetadataPayloadBuilder.spec.tsx
+++ b/src/domain/metadata/builders/__tests__/MetadataPayloadBuilder.spec.tsx
@@ -349,8 +349,10 @@ describe("MetadataPayloadBuilder", () => {
             if (includeObjectsAndReferences) {
                 const metadataByIdsResponses = getDataSetMetadataByIdsResponsesWithIncludeAll();
 
+                when(
+                    mockedMetadataRepository.getMetadataByIds(anything(), anything(), anything(), anything())
+                ).thenResolve(metadataByIdsResponses.first);
                 when(mockedMetadataRepository.getMetadataByIds(anything()))
-                    .thenResolve(metadataByIdsResponses.first)
                     .thenResolve(metadataByIdsResponses.second)
                     .thenResolve(metadataByIdsResponses.third)
                     .thenResolve(metadataByIdsResponses.fourth)
@@ -359,8 +361,12 @@ describe("MetadataPayloadBuilder", () => {
                     .thenResolve(metadataByIdsResponses.seventh)
                     .thenResolve(metadataByIdsResponses.eighth);
             } else {
+                when(
+                    mockedMetadataRepository.getMetadataByIds(anything(), anything(), anything(), anything())
+                ).thenResolve({
+                    dataSets: [getDataSetMetadata()],
+                });
                 when(mockedMetadataRepository.getMetadataByIds(anything()))
-                    .thenResolve({ dataSets: [getDataSetMetadata()] })
                     .thenResolve({
                         dataSets: [getDataSetMetadata()],
                         dataElements: [getDataElementDataSetMetadata()],
diff --git a/src/domain/metadata/repositories/MetadataRepository.ts b/src/domain/metadata/repositories/MetadataRepository.ts
index 179fae675..9aa6de2f7 100644
--- a/src/domain/metadata/repositories/MetadataRepository.ts
+++ b/src/domain/metadata/repositories/MetadataRepository.ts
@@ -13,7 +13,12 @@ import {
 import { MetadataImportParams } from "../entities/MetadataSynchronizationParams";
 
 export interface MetadataRepository {
-    getMetadataByIds<T>(ids: Id[], fields?: object | string, includeDefaults?: boolean): Promise<MetadataPackage<T>>;
+    getMetadataByIds<T>(
+        ids: Id[],
+        fields?: object | string,
+        includeDefaults?: boolean,
+        preserveNestedDefaultRefs?: boolean
+    ): Promise<MetadataPackage<T>>;
     getByFilterRules(filterRules: FilterRule[]): Promise<Id[]>;
     getDefaultIds(filter?: string): Promise<string[]>;
     getCategoryOptionCombos(): Promise<