diff --git a/x-pack/platform/plugins/shared/index_management/public/application/components/template_form/steps/step_logistics.tsx b/x-pack/platform/plugins/shared/index_management/public/application/components/template_form/steps/step_logistics.tsx
index 9742f2eec525f..55154d5308955 100644
--- a/x-pack/platform/plugins/shared/index_management/public/application/components/template_form/steps/step_logistics.tsx
+++ b/x-pack/platform/plugins/shared/index_management/public/application/components/template_form/steps/step_logistics.tsx
@@ -110,6 +110,7 @@ function getFieldsMeta(esDocsBase: string) {
         {
           value: STANDARD_INDEX_MODE,
           inputDisplay: indexModeLabels[STANDARD_INDEX_MODE],
+          'data-test-subj': 'index_mode_standard',
           dropdownDisplay: (
             <Fragment>
               <strong>{indexModeLabels[STANDARD_INDEX_MODE]}</strong>
@@ -122,6 +123,7 @@ function getFieldsMeta(esDocsBase: string) {
         {
           value: TIME_SERIES_MODE,
           inputDisplay: indexModeLabels[TIME_SERIES_MODE],
+          'data-test-subj': 'index_mode_time_series',
           dropdownDisplay: (
             <Fragment>
               <strong>{indexModeLabels[TIME_SERIES_MODE]}</strong>
@@ -134,6 +136,7 @@ function getFieldsMeta(esDocsBase: string) {
         {
           value: LOGSDB_INDEX_MODE,
           inputDisplay: indexModeLabels[LOGSDB_INDEX_MODE],
+          'data-test-subj': 'index_mode_logsdb',
           dropdownDisplay: (
             <Fragment>
               <strong>{indexModeLabels[LOGSDB_INDEX_MODE]}</strong>
diff --git a/x-pack/platform/plugins/shared/index_management/public/application/sections/home/template_list/template_details/template_details_content.tsx b/x-pack/platform/plugins/shared/index_management/public/application/sections/home/template_list/template_details/template_details_content.tsx
index 75446c0c05f2d..5ba051bcaafce 100644
--- a/x-pack/platform/plugins/shared/index_management/public/application/sections/home/template_list/template_details/template_details_content.tsx
+++ b/x-pack/platform/plugins/shared/index_management/public/application/sections/home/template_list/template_details/template_details_content.tsx
@@ -290,6 +290,7 @@ export const TemplateDetailsContent = ({
                             defaultMessage: 'Edit',
                           }),
                           icon: 'pencil',
+                          'data-test-subj': 'editIndexTemplateButton',
                           onClick: () => editTemplate(templateName, isLegacy),
                           disabled: isCloudManaged,
                         },
diff --git a/x-pack/test/functional/apps/index_management/data_streams_tab/data_streams_tab.ts b/x-pack/test/functional/apps/index_management/data_streams_tab/data_streams_tab.ts
index 0a6101b71ca5c..e91bdeeb5e417 100644
--- a/x-pack/test/functional/apps/index_management/data_streams_tab/data_streams_tab.ts
+++ b/x-pack/test/functional/apps/index_management/data_streams_tab/data_streams_tab.ts
@@ -17,6 +17,12 @@ export default ({ getPageObjects, getService }: FtrProviderContext) => {
   const security = getService('security');
   const testSubjects = getService('testSubjects');
 
+  enum INDEX_MODE {
+    STANDARD = 'Standard',
+    LOGSDB = 'LogsDB',
+    TIME_SERIES = 'Time series',
+  }
+
   const TEST_DS_NAME_1 = 'test-ds-1';
   const TEST_DS_NAME_2 = 'test-ds-2';
   const TEST_DATA_STREAM_NAMES = [TEST_DS_NAME_1, TEST_DS_NAME_2];
@@ -132,6 +138,7 @@ export default ({ getPageObjects, getService }: FtrProviderContext) => {
         await es.indices.deleteIndexTemplate({
           name: `logsdb_index_template`,
         });
+        await testSubjects.click('reloadButton');
       });
     });
 
@@ -224,5 +231,171 @@ export default ({ getPageObjects, getService }: FtrProviderContext) => {
         });
       });
     });
+
+    describe('Modify data streams index mode', () => {
+      const TEST_DS_NAME = 'test-ds';
+      const setIndexModeTemplate = async (settings: object) => {
+        await es.indices.putIndexTemplate({
+          name: `index_template_${TEST_DS_NAME}`,
+          index_patterns: [TEST_DS_NAME],
+          data_stream: {},
+          template: {
+            settings,
+          },
+        });
+        await es.indices.createDataStream({
+          name: TEST_DS_NAME,
+        });
+        await testSubjects.click('reloadButton');
+      };
+
+      const verifyIndexModeIsOrigin = async (indexModeName: string) => {
+        // Open details flyout of data stream
+        await pageObjects.indexManagement.clickDataStreamNameLink(TEST_DS_NAME);
+        // Check that index mode detail exists and its label is origin
+        expect(await testSubjects.exists('indexModeDetail')).to.be(true);
+        expect(await testSubjects.getVisibleText('indexModeDetail')).to.be(indexModeName);
+        // Close flyout
+        await testSubjects.click('closeDetailsButton');
+        // Navigate to the templates tab
+        await pageObjects.indexManagement.changeTabs('templatesTab');
+        await pageObjects.header.waitUntilLoadingHasFinished();
+        // Edit template
+        await pageObjects.indexManagement.clickIndexTemplateNameLink(
+          `index_template_${TEST_DS_NAME}`
+        );
+        await testSubjects.click('manageTemplateButton');
+        await testSubjects.click('editIndexTemplateButton');
+
+        // Verify index mode is origin
+        expect(await testSubjects.getVisibleText('indexModeField')).to.be(indexModeName);
+      };
+
+      const changeIndexMode = async (indexModeSelector: string) => {
+        // Modify index mode
+        await testSubjects.click('indexModeField');
+        await testSubjects.click(indexModeSelector);
+      };
+
+      const verifyModeHasBeenChanged = async (indexModeName: string) => {
+        expect(await testSubjects.getVisibleText('indexModeValue')).to.be(indexModeName);
+
+        // Click update template
+        await pageObjects.indexManagement.clickNextButton();
+
+        // Verify index mode and close detail tab
+        expect(await testSubjects.getVisibleText('indexModeValue')).to.be(indexModeName);
+        await testSubjects.click('closeDetailsButton');
+
+        // Navigate to the data streams tab
+        await pageObjects.indexManagement.changeTabs('data_streamsTab');
+        await pageObjects.header.waitUntilLoadingHasFinished();
+
+        // Open data stream
+        await pageObjects.indexManagement.clickDataStreamNameLink(TEST_DS_NAME);
+        // Check that index mode detail exists and its label is destination index mode
+        expect(await testSubjects.exists('indexModeDetail')).to.be(true);
+        expect(await testSubjects.getVisibleText('indexModeDetail')).to.be(indexModeName);
+        // Close flyout
+        await testSubjects.click('closeDetailsButton');
+      };
+
+      afterEach(async () => {
+        await log.debug('Cleaning up created data stream');
+
+        try {
+          await es.indices.deleteDataStream({ name: TEST_DS_NAME });
+          await es.indices.deleteIndexTemplate({
+            name: `index_template_${TEST_DS_NAME}`,
+          });
+        } catch (e) {
+          log.debug('Error deleting test data stream');
+          throw e;
+        }
+      });
+
+      it('allows to upgrade data stream from standard to logsdb index mode', async () => {
+        await setIndexModeTemplate({
+          mode: 'standard',
+        });
+        await verifyIndexModeIsOrigin(INDEX_MODE.STANDARD);
+
+        await changeIndexMode('index_mode_logsdb');
+        // Navigate to the last step of the wizard
+        await testSubjects.click('nextButton');
+        await testSubjects.click('nextButton');
+        await testSubjects.click('nextButton');
+        await testSubjects.click('nextButton');
+        await testSubjects.click('nextButton');
+
+        await verifyModeHasBeenChanged(INDEX_MODE.LOGSDB);
+      });
+
+      it('allows to downgrade data stream from logsdb to standard index mode', async () => {
+        await setIndexModeTemplate({
+          mode: 'logsdb',
+        });
+        await verifyIndexModeIsOrigin(INDEX_MODE.LOGSDB);
+
+        await changeIndexMode('index_mode_standard');
+        // Navigate to the last step of the wizard
+        await testSubjects.click('nextButton');
+        await testSubjects.click('nextButton');
+        await testSubjects.click('nextButton');
+        await testSubjects.click('nextButton');
+        await testSubjects.click('nextButton');
+
+        await verifyModeHasBeenChanged(INDEX_MODE.STANDARD);
+      });
+
+      it('allows to upgrade data stream from time series to logsdb index mode', async () => {
+        await setIndexModeTemplate({
+          mode: 'time_series',
+          routing_path: 'test',
+        });
+        await verifyIndexModeIsOrigin(INDEX_MODE.TIME_SERIES);
+
+        await changeIndexMode('index_mode_logsdb');
+
+        await testSubjects.click('nextButton');
+        await testSubjects.click('nextButton');
+        // Modify Index settings
+        await testSubjects.setValue('kibanaCodeEditor', '{}', {
+          clearWithKeyboard: true,
+        });
+        // Navigate to the last step of the wizard
+        await testSubjects.click('nextButton');
+        await testSubjects.click('nextButton');
+        await testSubjects.click('nextButton');
+
+        await verifyModeHasBeenChanged(INDEX_MODE.LOGSDB);
+      });
+
+      it('allows to downgrade data stream from logsdb to time series index mode', async () => {
+        await setIndexModeTemplate({
+          mode: 'logsdb',
+        });
+        await verifyIndexModeIsOrigin(INDEX_MODE.LOGSDB);
+
+        await changeIndexMode('index_mode_time_series');
+
+        await testSubjects.click('nextButton');
+        await testSubjects.click('nextButton');
+        // Modify Index settings
+        await testSubjects.setValue(
+          'kibanaCodeEditor',
+          JSON.stringify({ index: { mode: 'time_series', routing_path: 'test' } }),
+          {
+            clearWithKeyboard: true,
+          }
+        );
+        // Navigate to the last step of the wizard
+        await testSubjects.click('nextButton');
+        await testSubjects.click('nextButton');
+        await testSubjects.click('nextButton');
+
+        await verifyModeHasBeenChanged(INDEX_MODE.TIME_SERIES);
+      });
+    });
   });
 };
diff --git a/x-pack/test/functional/apps/index_management/index.ts b/x-pack/test/functional/apps/index_management/index.ts
index c43f8b9688da5..b75f08565e742 100644
--- a/x-pack/test/functional/apps/index_management/index.ts
+++ b/x-pack/test/functional/apps/index_management/index.ts
@@ -16,5 +16,6 @@ export default ({ loadTestFile }: FtrProviderContext) => {
     loadTestFile(require.resolve('./enrich_policies_tab'));
     loadTestFile(require.resolve('./create_enrich_policy'));
     loadTestFile(require.resolve('./data_streams_tab'));
+    loadTestFile(require.resolve('./index_templates_tab'));
   });
 };
diff --git a/x-pack/test/functional/apps/index_management/index_templates_tab/index.ts b/x-pack/test/functional/apps/index_management/index_templates_tab/index.ts
index 992c2094c037e..f415bced4a418 100644
--- a/x-pack/test/functional/apps/index_management/index_templates_tab/index.ts
+++ b/x-pack/test/functional/apps/index_management/index_templates_tab/index.ts
@@ -9,6 +9,6 @@ import { FtrProviderContext } from '../../../ftr_provider_context';
 
 export default ({ loadTestFile }: FtrProviderContext) => {
   describe('Index Management: index templates tab', function () {
-    loadTestFile(require.resolve('./create_index_template'));
+    loadTestFile(require.resolve('./index_template_tab'));
   });
 };
diff --git a/x-pack/test/functional/apps/index_management/index_templates_tab/create_index_template.ts b/x-pack/test/functional/apps/index_management/index_templates_tab/index_template_tab.ts
similarity index 56%
rename from x-pack/test/functional/apps/index_management/index_templates_tab/create_index_template.ts
rename to x-pack/test/functional/apps/index_management/index_templates_tab/index_template_tab.ts
index 68b75fa86a0c5..75f022eaf7555 100644
--- a/x-pack/test/functional/apps/index_management/index_templates_tab/create_index_template.ts
+++ b/x-pack/test/functional/apps/index_management/index_templates_tab/index_template_tab.ts
@@ -13,21 +13,29 @@ export default ({ getPageObjects, getService }: FtrProviderContext) => {
   const log = getService('log');
   const security = getService('security');
   const testSubjects = getService('testSubjects');
+  const es = getService('es');
 
-  const INDEX_TEMPLATE_NAME = `test-index-template`;
+  const INDEX_TEMPLATE_NAME = `test-index-template-name`;
 
-  describe('Create index template', function () {
+  describe('Index template tab', function () {
     before(async () => {
       await log.debug('Navigating to the index templates tab');
       await security.testUser.setRoles(['index_management_user']);
       await pageObjects.common.navigateToApp('indexManagement');
-      // Navigate to the data streams tab
+      // Navigate to the templates tab
       await pageObjects.indexManagement.changeTabs('templatesTab');
       await pageObjects.header.waitUntilLoadingHasFinished();
       // Click create template button
       await testSubjects.click('createTemplateButton');
     });
 
+    afterEach(async () => {
+      await es.indices.deleteIndexTemplate({
+        name: INDEX_TEMPLATE_NAME,
+      });
+      await testSubjects.click('reloadButton');
+    });
+
     it('can create an index template with data retention', async () => {
       // Complete required fields from step 1
       await testSubjects.setValue('nameField', INDEX_TEMPLATE_NAME);
@@ -46,6 +54,36 @@ export default ({ getPageObjects, getService }: FtrProviderContext) => {
       await testSubjects.click('nextButton');
 
       expect(await testSubjects.getVisibleText('lifecycleValue')).to.be('7 hours');
+
+      // Click Create template
+      await pageObjects.indexManagement.clickNextButton();
+      // Close detail tab
+      await testSubjects.click('closeDetailsButton');
+    });
+
+    it('can create an index template with logsdb index mode', async () => {
+      await testSubjects.click('createTemplateButton');
+      // Fill out required fields
+      await testSubjects.setValue('nameField', INDEX_TEMPLATE_NAME);
+      await testSubjects.setValue('indexPatternsField', 'logsdb-test-index-pattern');
+
+      await testSubjects.click('indexModeField');
+      await testSubjects.click('index_mode_logsdb');
+
+      // Navigate to the last step of the wizard
+      await testSubjects.click('nextButton');
+      await testSubjects.click('nextButton');
+      await testSubjects.click('nextButton');
+      await testSubjects.click('nextButton');
+      await testSubjects.click('nextButton');
+
+      expect(await testSubjects.exists('indexModeTitle')).to.be(true);
+      expect(await testSubjects.getVisibleText('indexModeValue')).to.be('LogsDB');
+
+      // Click Create template
+      await pageObjects.indexManagement.clickNextButton();
+      // Close detail tab
+      await testSubjects.click('closeDetailsButton');
     });
   });
 };
diff --git a/x-pack/test/functional/page_objects/index_management_page.ts b/x-pack/test/functional/page_objects/index_management_page.ts
index 207bf2281c080..a29e84e677cbc 100644
--- a/x-pack/test/functional/page_objects/index_management_page.ts
+++ b/x-pack/test/functional/page_objects/index_management_page.ts
@@ -49,6 +49,10 @@ export function IndexManagementPageProvider({ getService }: FtrProviderContext)
       await testSubjects.click('bulkEditDataRetentionButton');
     },
 
+    async clickIndexTemplateNameLink(name: string): Promise<void> {
+      await find.clickByLinkText(name);
+    },
+
     async clickDataStreamNameLink(name: string): Promise<void> {
       await find.clickByLinkText(name);
     },
diff --git a/x-pack/test_serverless/functional/test_suites/common/management/index_management/data_streams.ts b/x-pack/test_serverless/functional/test_suites/common/management/index_management/data_streams.ts
index 96164b0e1f9ce..5ebef67bcec0c 100644
--- a/x-pack/test_serverless/functional/test_suites/common/management/index_management/data_streams.ts
+++ b/x-pack/test_serverless/functional/test_suites/common/management/index_management/data_streams.ts
@@ -19,9 +19,13 @@ export default ({ getPageObjects, getService }: FtrProviderContext) => {
 
   const TEST_DS_NAME = 'test-ds-1';
 
-  describe('Data Streams', function () {
-    // failsOnMKI, see https://github.com/elastic/kibana/issues/181242
-    this.tags(['failsOnMKI']);
+  enum INDEX_MODE {
+    STANDARD = 'Standard',
+    LOGSDB = 'LogsDB',
+    TIME_SERIES = 'Time series',
+  }
+
+  describe('Data Streams', () => {
     before(async () => {
       log.debug('Creating required data stream');
       try {
@@ -40,7 +44,7 @@ export default ({ getPageObjects, getService }: FtrProviderContext) => {
         });
 
         await es.indices.putIndexTemplate({
-          name: `${TEST_DS_NAME}_index_template`,
+          name: `index_template_${TEST_DS_NAME}`,
           index_patterns: [TEST_DS_NAME],
           data_stream: {},
           composed_of: [`${TEST_DS_NAME}_mapping`],
@@ -71,7 +75,7 @@ export default ({ getPageObjects, getService }: FtrProviderContext) => {
       try {
         await es.indices.deleteDataStream({ name: TEST_DS_NAME });
         await es.indices.deleteIndexTemplate({
-          name: `${TEST_DS_NAME}_index_template`,
+          name: `index_template_${TEST_DS_NAME}`,
         });
         await es.cluster.deleteComponentTemplate({
           name: `${TEST_DS_NAME}_mapping`,
@@ -99,45 +103,222 @@ export default ({ getPageObjects, getService }: FtrProviderContext) => {
       await testSubjects.click('closeDetailsButton');
     });
 
-    it('allows to update data retention', async () => {
-      // Open details flyout
-      await pageObjects.indexManagement.clickDataStreamNameLink(TEST_DS_NAME);
-      // Open the edit retention dialog
-      await testSubjects.click('manageDataStreamButton');
-      await testSubjects.click('editDataRetentionButton');
-
-      // Disable infinite retention
-      await testSubjects.click('infiniteRetentionPeriod > input');
-      // Set the retention to 7 hours
-      await testSubjects.setValue('dataRetentionValue', '7');
-      await testSubjects.click('show-filters-button');
-      await testSubjects.click('filter-option-h');
-
-      // Submit the form
-      await testSubjects.click('saveButton');
-
-      // Expect to see a success toast
-      const successToast = await toasts.getElementByIndex(1);
-      expect(await successToast.getVisibleText()).to.contain('Data retention updated');
-    });
+    describe('data retention', function () {
+      // failsOnMKI, see https://github.com/elastic/kibana/issues/181242
+      this.tags(['failsOnMKI']);
+      it('allows to update data retention', async () => {
+        // Open details flyout
+        await pageObjects.indexManagement.clickDataStreamNameLink(TEST_DS_NAME);
+        // Open the edit retention dialog
+        await testSubjects.click('manageDataStreamButton');
+        await testSubjects.click('editDataRetentionButton');
+
+        // Disable infinite retention
+        await testSubjects.click('infiniteRetentionPeriod > input');
+        // Set the retention to 7 hours
+        await testSubjects.setValue('dataRetentionValue', '7');
+        await testSubjects.click('show-filters-button');
+        await testSubjects.click('filter-option-h');
+
+        // Submit the form
+        await testSubjects.click('saveButton');
+
+        // Expect to see a success toast
+        const successToast = await toasts.getElementByIndex(1);
+        expect(await successToast.getVisibleText()).to.contain('Data retention updated');
+      });
 
-    describe('Project level data retention checks - security solution', () => {
-      this.tags(['skipSvlOblt', 'skipSvlSearch']);
+      describe('Project level data retention checks - security solution', () => {
+        this.tags(['skipSvlOblt', 'skipSvlSearch']);
 
-      it('shows project data retention in the datastreams list', async () => {
-        expect(await testSubjects.exists('projectLevelRetentionCallout')).to.be(true);
-        expect(await testSubjects.exists('cloudLinkButton')).to.be(true);
+        it('shows project data retention in the datastreams list', async () => {
+          expect(await testSubjects.exists('projectLevelRetentionCallout')).to.be(true);
+          expect(await testSubjects.exists('cloudLinkButton')).to.be(true);
+        });
+      });
+
+      it('disabling data retention in serverless is not allowed', async () => {
+        // Open details flyout
+        await pageObjects.indexManagement.clickDataStreamNameLink(TEST_DS_NAME);
+        // Open the edit retention dialog
+        await testSubjects.click('manageDataStreamButton');
+        await testSubjects.click('editDataRetentionButton');
+
+        expect(await testSubjects.exists('dataRetentionEnabledField')).to.be(false);
       });
     });
 
-    it('disabling data retention in serverless is not allowed', async () => {
-      // Open details flyout
-      await pageObjects.indexManagement.clickDataStreamNameLink(TEST_DS_NAME);
-      // Open the edit retention dialog
-      await testSubjects.click('manageDataStreamButton');
-      await testSubjects.click('editDataRetentionButton');
+    describe('Modify data streams index mode', () => {
+      const TEST_DS_NAME_INDEX_MODE = 'test-ds';
+      const setIndexModeTemplate = async (settings: object) => {
+        await es.indices.putIndexTemplate({
+          name: `index_template_${TEST_DS_NAME_INDEX_MODE}`,
+          index_patterns: [TEST_DS_NAME_INDEX_MODE],
+          data_stream: {},
+          template: {
+            settings,
+          },
+        });
+        await es.indices.createDataStream({
+          name: TEST_DS_NAME_INDEX_MODE,
+        });
+        await testSubjects.click('reloadButton');
+      };
+
+      const verifyIndexModeIsOrigin = async (indexModeName: string) => {
+        // Open details flyout of data stream
+        await pageObjects.indexManagement.clickDataStreamNameLink(TEST_DS_NAME_INDEX_MODE);
+        // Check that index mode detail exists and its label is origin
+        expect(await testSubjects.exists('indexModeDetail')).to.be(true);
+        expect(await testSubjects.getVisibleText('indexModeDetail')).to.be(indexModeName);
+        // Close flyout
+        await testSubjects.click('closeDetailsButton');
+        // Navigate to the templates tab
+        await pageObjects.indexManagement.changeTabs('templatesTab');
+        await pageObjects.header.waitUntilLoadingHasFinished();
+        // Edit template
+        await pageObjects.indexManagement.clickIndexTemplateNameLink(
+          `index_template_${TEST_DS_NAME_INDEX_MODE}`
+        );
+        await testSubjects.click('manageTemplateButton');
+        await testSubjects.click('editIndexTemplateButton');
+
+        // Verify index mode is origin
+        expect(await testSubjects.getVisibleText('indexModeField')).to.be(indexModeName);
+      };
+
+      const changeIndexMode = async (indexModeSelector: string) => {
+        // Modify index mode
+        await testSubjects.click('indexModeField');
+        await testSubjects.click(indexModeSelector);
+      };
+
+      const verifyModeHasBeenChanged = async (indexModeName: string) => {
+        expect(await testSubjects.getVisibleText('indexModeValue')).to.be(indexModeName);
+
+        // Click update template
+        await pageObjects.indexManagement.clickNextButton();
+
+        // Verify index mode and close detail tab
+        expect(await testSubjects.getVisibleText('indexModeValue')).to.be(indexModeName);
+        await testSubjects.click('closeDetailsButton');
+
+        // Navigate to the data streams tab
+        await pageObjects.indexManagement.changeTabs('data_streamsTab');
+        await pageObjects.header.waitUntilLoadingHasFinished();
 
-      expect(await testSubjects.exists('dataRetentionEnabledField')).to.be(false);
+        // Open data stream
+        await pageObjects.indexManagement.clickDataStreamNameLink(TEST_DS_NAME_INDEX_MODE);
+        // Check that index mode detail exists and its label is destination index mode
+        expect(await testSubjects.exists('indexModeDetail')).to.be(true);
+        expect(await testSubjects.getVisibleText('indexModeDetail')).to.be(indexModeName);
+        // Close flyout
+        await testSubjects.click('closeDetailsButton');
+      };
+
+      before(async () => {
+        await pageObjects.common.navigateToApp('indexManagement');
+        // Navigate to the indices tab
+        await pageObjects.indexManagement.changeTabs('data_streamsTab');
+        await pageObjects.header.waitUntilLoadingHasFinished();
+      });
+
+      afterEach(async () => {
+        await log.debug('Cleaning up created data stream');
+
+        try {
+          await es.indices.deleteDataStream({ name: TEST_DS_NAME_INDEX_MODE });
+          await es.indices.deleteIndexTemplate({
+            name: `index_template_${TEST_DS_NAME_INDEX_MODE}`,
+          });
+        } catch (e) {
+          log.debug('Error deleting test data stream');
+          throw e;
+        }
+      });
+
+      it('allows to upgrade data stream from standard to logsdb index mode', async () => {
+        await setIndexModeTemplate({
+          mode: 'standard',
+        });
+        await verifyIndexModeIsOrigin(INDEX_MODE.STANDARD);
+
+        await changeIndexMode('index_mode_logsdb');
+        // Navigate to the last step of the wizard
+        await testSubjects.click('nextButton');
+        await testSubjects.click('nextButton');
+        await testSubjects.click('nextButton');
+        await testSubjects.click('nextButton');
+        await testSubjects.click('nextButton');
+
+        await verifyModeHasBeenChanged(INDEX_MODE.LOGSDB);
+      });
+
+      it('allows to downgrade data stream from logsdb to standard index mode', async () => {
+        await setIndexModeTemplate({
+          mode: 'logsdb',
+        });
+        await verifyIndexModeIsOrigin(INDEX_MODE.LOGSDB);
+
+        await changeIndexMode('index_mode_standard');
+        // Navigate to the last step of the wizard
+        await testSubjects.click('nextButton');
+        await testSubjects.click('nextButton');
+        await testSubjects.click('nextButton');
+        await testSubjects.click('nextButton');
+        await testSubjects.click('nextButton');
+
+        await verifyModeHasBeenChanged(INDEX_MODE.STANDARD);
+      });
+
+      it('allows to upgrade data stream from time series to logsdb index mode', async () => {
+        await setIndexModeTemplate({
+          mode: 'time_series',
+          routing_path: 'test',
+        });
+        await verifyIndexModeIsOrigin(INDEX_MODE.TIME_SERIES);
+
+        await changeIndexMode('index_mode_logsdb');
+
+        await testSubjects.click('nextButton');
+        await testSubjects.click('nextButton');
+        // Modify Index settings
+        await testSubjects.setValue('kibanaCodeEditor', '{}', {
+          clearWithKeyboard: true,
+        });
+        // Navigate to the last step of the wizard
+        await testSubjects.click('nextButton');
+        await testSubjects.click('nextButton');
+        await testSubjects.click('nextButton');
+
+        await verifyModeHasBeenChanged(INDEX_MODE.LOGSDB);
+      });
+
+      it('allows to downgrade data stream from logsdb to time series index mode', async () => {
+        await setIndexModeTemplate({
+          mode: 'logsdb',
+        });
+        await verifyIndexModeIsOrigin(INDEX_MODE.LOGSDB);
+
+        await changeIndexMode('index_mode_time_series');
+
+        await testSubjects.click('nextButton');
+        await testSubjects.click('nextButton');
+        // Modify Index settings
+        await testSubjects.setValue(
+          'kibanaCodeEditor',
+          JSON.stringify({ index: { mode: 'time_series', routing_path: 'test' } }),
+          {
+            clearWithKeyboard: true,
+          }
+        );
+        // Navigate to the last step of the wizard
+        await testSubjects.click('nextButton');
+        await testSubjects.click('nextButton');
+        await testSubjects.click('nextButton');
+
+        await verifyModeHasBeenChanged(INDEX_MODE.TIME_SERIES);
+      });
     });
   });
 };
diff --git a/x-pack/test_serverless/functional/test_suites/common/management/index_management/index_templates.ts b/x-pack/test_serverless/functional/test_suites/common/management/index_management/index_templates.ts
index 1a98bea48e940..30ed3c30104e3 100644
--- a/x-pack/test_serverless/functional/test_suites/common/management/index_management/index_templates.ts
+++ b/x-pack/test_serverless/functional/test_suites/common/management/index_management/index_templates.ts
@@ -86,7 +86,7 @@ export default ({ getPageObjects, getService }: FtrProviderContext) => {
     describe('Create index template', () => {
       const TEST_TEMPLATE_NAME = `test_template_${Date.now()}`;
 
-      after(async () => {
+      afterEach(async () => {
         await es.indices.deleteIndexTemplate({ name: TEST_TEMPLATE_NAME }, { ignore: [404] });
       });
 
@@ -103,6 +103,28 @@ export default ({ getPageObjects, getService }: FtrProviderContext) => {
         await retry.try(async () => {
           expect(await testSubjects.getVisibleText('title')).to.contain(TEST_TEMPLATE_NAME);
         });
+        await testSubjects.click('closeDetailsButton');
+      });
+
+      it('can create an index template with logsdb index mode', async () => {
+        await testSubjects.click('createTemplateButton');
+        // Fill out required fields
+        await testSubjects.setValue('nameField', TEST_TEMPLATE_NAME);
+        await testSubjects.setValue('indexPatternsField', INDEX_PATTERN);
+
+        await testSubjects.click('indexModeField');
+        await testSubjects.click('index_mode_logsdb');
+
+        // Click form summary step and then the submit button
+        await testSubjects.click('formWizardStep-5');
+        expect(await testSubjects.getVisibleText('indexModeValue')).to.be('LogsDB');
+
+        // Click update template
+        await pageObjects.indexManagement.clickNextButton();
+
+        // Close detail tab
+        expect(await testSubjects.getVisibleText('indexModeValue')).to.be('LogsDB');
+        await testSubjects.click('closeDetailsButton');
       });
     });
   });