diff --git a/apps/studio/components/interfaces/Home/ServiceStatus.tsx b/apps/studio/components/interfaces/Home/ServiceStatus.tsx
index a2e768ac0fe..69a57ca1a8d 100644
--- a/apps/studio/components/interfaces/Home/ServiceStatus.tsx
+++ b/apps/studio/components/interfaces/Home/ServiceStatus.tsx
@@ -8,7 +8,8 @@ import { InlineLink } from 'components/ui/InlineLink'
 import { useBranchesQuery } from 'data/branches/branches-query'
 import { useEdgeFunctionServiceStatusQuery } from 'data/service-status/edge-functions-status-query'
 import {
-  ProjectServiceStatus,
+  ProjectServiceStatus as APIProjectServiceStatus,
+  ServiceHealthResponse,
   useProjectServiceStatusQuery,
 } from 'data/service-status/service-status-query'
 import { useIsFeatureEnabled } from 'hooks/misc/useIsFeatureEnabled'
@@ -24,22 +25,23 @@ import {
 
 const SERVICE_STATUS_THRESHOLD = 5 // minutes
 
-const StatusMessage = ({
+export type ProjectServiceStatus = APIProjectServiceStatus | 'DISABLED'
+
+export const StatusMessage = ({
   status,
   isLoading,
-  isHealthy,
   isProjectNew,
 }: {
   isLoading: boolean
-  isHealthy: boolean
   isProjectNew: boolean
   status?: ProjectServiceStatus
 }) => {
-  if (isHealthy) return 'Healthy'
   if (isLoading) return 'Checking status'
+  if (status === 'DISABLED') return 'Disabled'
   if (status === 'UNHEALTHY') return 'Unhealthy'
   if (status === 'COMING_UP') return 'Coming up...'
   if (status === 'ACTIVE_HEALTHY') return 'Healthy'
+  // isProjectNew has to be after all other statuses
   if (isProjectNew) return 'Coming up...'
   if (status) return status
   return 'Unable to connect'
@@ -53,26 +55,36 @@ const LoaderIcon = () => <Loader2 {...iconProps} className="animate-spin" />
 const AlertIcon = () => <AlertTriangle {...iconProps} />
 const CheckIcon = () => <CheckCircle2 {...iconProps} className="text-brand" />
 
-const StatusIcon = ({
+export const StatusIcon = ({
   isLoading,
-  isHealthy,
   isProjectNew,
   projectStatus,
 }: {
   isLoading: boolean
-  isHealthy: boolean
   isProjectNew: boolean
   projectStatus?: ProjectServiceStatus
 }) => {
-  if (isHealthy) return <CheckIcon />
-  if (isLoading) return <LoaderIcon />
-  if (projectStatus === 'UNHEALTHY') return <AlertIcon />
-  if (projectStatus === 'COMING_UP') return <LoaderIcon />
+  //
   if (projectStatus === 'ACTIVE_HEALTHY') return <CheckIcon />
+  if (projectStatus === 'DISABLED') return <AlertIcon />
+  if (projectStatus === 'COMING_UP') return <LoaderIcon />
+  if (isLoading) return <LoaderIcon />
+  // isProjectNew has to be above UNHEALTHY because in the first few minutes, some services might be starting up and show as UNHEALTHY
   if (isProjectNew) return <LoaderIcon />
+  if (projectStatus === 'UNHEALTHY') return <AlertIcon />
   return <AlertIcon />
 }
 
+/*
+ * Extract the db_schema from the response.info object
+ */
+export const extractDbSchema = (response: ServiceHealthResponse | undefined) => {
+  if (response?.info && 'db_schema' in response.info) {
+    return response.info.db_schema
+  }
+  return undefined
+}
+
 export const ServiceStatus = () => {
   const { ref } = useParams()
   const { data: project } = useSelectedProjectQuery()
@@ -126,7 +138,18 @@ export const ServiceStatus = () => {
     {
       refetchInterval: (query) => {
         const data = query.state.data
-        return data?.some((service) => !service.healthy) ? 5000 : false
+        const isServiceUnhealthy = data?.some((service) => {
+          // if the postgrest service has an empty schema, the user chose to turn off postgrest during project creation
+          if (service.name === 'rest' && extractDbSchema(service) === '') {
+            return false
+          }
+          if (service.status === 'ACTIVE_HEALTHY') {
+            return false
+          }
+          return true
+        })
+
+        return isServiceUnhealthy ? 5000 : false
       },
     }
   )
@@ -155,7 +178,6 @@ export const ServiceStatus = () => {
     error?: string
     docsUrl?: string
     isLoading: boolean
-    isHealthy: boolean
     status: ProjectServiceStatus
     logsUrl: string
   }[] = [
@@ -164,7 +186,6 @@ export const ServiceStatus = () => {
       error: undefined,
       docsUrl: undefined,
       isLoading: isLoading,
-      isHealthy: !!dbStatus?.healthy,
       status: dbStatus?.status ?? 'UNHEALTHY',
       logsUrl: '/logs/postgres-logs',
     },
@@ -173,8 +194,8 @@ export const ServiceStatus = () => {
       error: restStatus?.error,
       docsUrl: undefined,
       isLoading,
-      isHealthy: !!restStatus?.healthy,
-      status: restStatus?.status ?? 'UNHEALTHY',
+      // If PostgREST has an empty schema, it means it's been disabled
+      status: extractDbSchema(restStatus) === '' ? 'DISABLED' : restStatus?.status ?? 'UNHEALTHY',
       logsUrl: '/logs/postgrest-logs',
     },
     ...(authEnabled
@@ -184,7 +205,6 @@ export const ServiceStatus = () => {
             error: authStatus?.error,
             docsUrl: undefined,
             isLoading,
-            isHealthy: !!authStatus?.healthy,
             status: authStatus?.status ?? 'UNHEALTHY',
             logsUrl: '/logs/auth-logs',
           },
@@ -197,7 +217,6 @@ export const ServiceStatus = () => {
             error: realtimeStatus?.error,
             docsUrl: undefined,
             isLoading,
-            isHealthy: !!realtimeStatus?.healthy,
             status: realtimeStatus?.status ?? 'UNHEALTHY',
             logsUrl: '/logs/realtime-logs',
           },
@@ -210,7 +229,6 @@ export const ServiceStatus = () => {
             error: storageStatus?.error,
             docsUrl: undefined,
             isLoading,
-            isHealthy: !!storageStatus?.healthy,
             status: storageStatus?.status ?? 'UNHEALTHY',
             logsUrl: '/logs/storage-logs',
           },
@@ -223,7 +241,6 @@ export const ServiceStatus = () => {
             error: undefined,
             docsUrl: `${DOCS_URL}/guides/functions/troubleshooting`,
             isLoading,
-            isHealthy: !!edgeFunctionsStatus?.healthy,
             status: edgeFunctionsStatus?.healthy
               ? 'ACTIVE_HEALTHY'
               : isLoading
@@ -240,7 +257,6 @@ export const ServiceStatus = () => {
             error: undefined,
             docsUrl: undefined,
             isLoading: isBranchesLoading,
-            isHealthy: currentBranch?.status === 'FUNCTIONS_DEPLOYED',
             status: (currentBranch?.status === 'FUNCTIONS_DEPLOYED'
               ? 'ACTIVE_HEALTHY'
               : currentBranch?.status === 'FUNCTIONS_FAILED' ||
@@ -258,7 +274,10 @@ export const ServiceStatus = () => {
     currentBranch?.status === 'CREATING_PROJECT' ||
     currentBranch?.status === 'RUNNING_MIGRATIONS'
   const isLoadingChecks = services.some((service) => service.isLoading)
-  const allServicesOperational = services.every((service) => service.isHealthy)
+  // We consider a service operational if it's healthy or intentionally disabled
+  const allServicesOperational = services.every(
+    (service) => service.status === 'ACTIVE_HEALTHY' || service.status === 'DISABLED'
+  )
 
   // If the project is less than 5 minutes old, and status is not operational, then it's likely the service is still starting up
   const isProjectNew =
@@ -316,7 +335,6 @@ export const ServiceStatus = () => {
             <div className="flex gap-x-2">
               <StatusIcon
                 isLoading={service.isLoading}
-                isHealthy={!!service.isHealthy}
                 isProjectNew={isProjectNew}
                 projectStatus={service.status}
               />
@@ -325,7 +343,6 @@ export const ServiceStatus = () => {
                 <p className="text-foreground-light flex items-center gap-1">
                   <StatusMessage
                     isLoading={service.isLoading}
-                    isHealthy={!!service.isHealthy}
                     isProjectNew={isProjectNew}
                     status={service.status}
                   />
diff --git a/apps/studio/components/interfaces/HomeNew/ServiceStatus.tsx b/apps/studio/components/interfaces/HomeNew/ServiceStatus.tsx
index 7b8dd1706c9..810f3eb0d07 100644
--- a/apps/studio/components/interfaces/HomeNew/ServiceStatus.tsx
+++ b/apps/studio/components/interfaces/HomeNew/ServiceStatus.tsx
@@ -1,5 +1,5 @@
 import dayjs from 'dayjs'
-import { AlertTriangle, CheckCircle2, ChevronRight, Loader2 } from 'lucide-react'
+import { ChevronRight, Loader2 } from 'lucide-react'
 import Link from 'next/link'
 
 import { useParams } from 'common'
@@ -7,14 +7,17 @@ import { InlineLink } from 'components/ui/InlineLink'
 import { SingleStat } from 'components/ui/SingleStat'
 import { useBranchesQuery } from 'data/branches/branches-query'
 import { useEdgeFunctionServiceStatusQuery } from 'data/service-status/edge-functions-status-query'
-import {
-  ProjectServiceStatus,
-  useProjectServiceStatusQuery,
-} from 'data/service-status/service-status-query'
+import { useProjectServiceStatusQuery } from 'data/service-status/service-status-query'
 import { useIsFeatureEnabled } from 'hooks/misc/useIsFeatureEnabled'
 import { useSelectedProjectQuery } from 'hooks/misc/useSelectedProject'
 import { DOCS_URL } from 'lib/constants'
 import { InfoIcon, PopoverContent_Shadcn_, PopoverTrigger_Shadcn_, Popover_Shadcn_, cn } from 'ui'
+import {
+  ProjectServiceStatus,
+  StatusIcon,
+  StatusMessage,
+  extractDbSchema,
+} from '../Home/ServiceStatus'
 
 const SERVICE_STATUS_THRESHOLD = 5 // minutes
 
@@ -36,49 +39,6 @@ const SERVICE_STATUS_THRESHOLD = 5 // minutes
  * minutes of when it was created). Might be related to decoupling "ready" state vs "health checks"
  */
 
-const StatusMessage = ({
-  status,
-  isLoading,
-  isHealthy,
-  isProjectNew,
-}: {
-  isLoading: boolean
-  isHealthy: boolean
-  isProjectNew: boolean
-  status?: ProjectServiceStatus
-}) => {
-  if (isHealthy || status === 'ACTIVE_HEALTHY') return 'Healthy'
-  if (isLoading) return 'Checking status'
-  if (status === 'UNHEALTHY') return 'Unhealthy'
-  if (isProjectNew || status === 'COMING_UP') return 'Coming up...'
-  if (status) return status
-  return 'Unable to connect'
-}
-
-const iconProps = {
-  size: 18,
-  strokeWidth: 1.5,
-}
-const LoaderIcon = () => <Loader2 {...iconProps} className="animate-spin" />
-const AlertIcon = () => <AlertTriangle {...iconProps} />
-const CheckIcon = () => <CheckCircle2 {...iconProps} className="text-brand" />
-
-const StatusIcon = ({
-  isLoading,
-  isHealthy,
-  isProjectNew,
-  projectStatus,
-}: {
-  isLoading: boolean
-  isHealthy: boolean
-  isProjectNew: boolean
-  projectStatus?: ProjectServiceStatus
-}) => {
-  if (isHealthy || projectStatus === 'ACTIVE_HEALTHY') return <CheckIcon />
-  if (isLoading || isProjectNew || projectStatus === 'COMING_UP') return <LoaderIcon />
-  return <AlertIcon />
-}
-
 export const ServiceStatus = () => {
   const { ref } = useParams()
   const { data: project } = useSelectedProjectQuery()
@@ -113,8 +73,21 @@ export const ServiceStatus = () => {
   const { data: status, isPending: isLoading } = useProjectServiceStatusQuery(
     { projectRef: ref },
     {
-      refetchInterval: (query) =>
-        query.state.data?.some((service) => !service.healthy) ? 5000 : false,
+      refetchInterval: (query) => {
+        const data = query.state.data
+        const isServiceUnhealthy = data?.some((service) => {
+          // if the postgrest service has an empty schema, postgrest has been disabled
+          if (service.name === 'rest' && extractDbSchema(service) === '') {
+            return false
+          }
+          if (service.status === 'ACTIVE_HEALTHY') {
+            return false
+          }
+          return true
+        })
+
+        return isServiceUnhealthy ? 5000 : false
+      },
     }
   )
   const { data: edgeFunctionsStatus } = useEdgeFunctionServiceStatusQuery(
@@ -141,7 +114,6 @@ export const ServiceStatus = () => {
     error?: string
     docsUrl?: string
     isLoading: boolean
-    isHealthy: boolean
     status: ProjectServiceStatus
     logsUrl: string
   }[] = [
@@ -150,7 +122,6 @@ export const ServiceStatus = () => {
       error: undefined,
       docsUrl: undefined,
       isLoading: isLoading,
-      isHealthy: !!dbStatus?.healthy,
       status: dbStatus?.status ?? 'UNHEALTHY',
       logsUrl: '/logs/postgres-logs',
     },
@@ -159,8 +130,8 @@ export const ServiceStatus = () => {
       error: restStatus?.error,
       docsUrl: undefined,
       isLoading,
-      isHealthy: !!restStatus?.healthy,
-      status: restStatus?.status ?? 'UNHEALTHY',
+      // If PostgREST has an empty schema, it means it's been disabled
+      status: extractDbSchema(restStatus) === '' ? 'DISABLED' : restStatus?.status ?? 'UNHEALTHY',
       logsUrl: '/logs/postgrest-logs',
     },
     ...(authEnabled
@@ -170,7 +141,6 @@ export const ServiceStatus = () => {
             error: authStatus?.error,
             docsUrl: undefined,
             isLoading,
-            isHealthy: !!authStatus?.healthy,
             status: authStatus?.status ?? 'UNHEALTHY',
             logsUrl: '/logs/auth-logs',
           },
@@ -183,7 +153,6 @@ export const ServiceStatus = () => {
             error: realtimeStatus?.error,
             docsUrl: undefined,
             isLoading,
-            isHealthy: !!realtimeStatus?.healthy,
             status: realtimeStatus?.status ?? 'UNHEALTHY',
             logsUrl: '/logs/realtime-logs',
           },
@@ -196,7 +165,6 @@ export const ServiceStatus = () => {
             error: storageStatus?.error,
             docsUrl: undefined,
             isLoading,
-            isHealthy: !!storageStatus?.healthy,
             status: storageStatus?.status ?? 'UNHEALTHY',
             logsUrl: '/logs/storage-logs',
           },
@@ -209,12 +177,11 @@ export const ServiceStatus = () => {
             error: undefined,
             docsUrl: `${DOCS_URL}/guides/functions/troubleshooting`,
             isLoading,
-            isHealthy: !!edgeFunctionsStatus?.healthy,
             status: edgeFunctionsStatus?.healthy
-              ? 'ACTIVE_HEALTHY'
+              ? ('ACTIVE_HEALTHY' as const)
               : isLoading
-                ? 'COMING_UP'
-                : ('UNHEALTHY' as ProjectServiceStatus),
+                ? ('COMING_UP' as const)
+                : ('UNHEALTHY' as const),
             logsUrl: '/logs/edge-functions-logs',
           },
         ]
@@ -226,19 +193,16 @@ export const ServiceStatus = () => {
             error: undefined,
             docsUrl: undefined,
             isLoading: isBranchesLoading,
-            isHealthy: isBranch
+            status: isBranch
               ? currentBranch?.status === 'FUNCTIONS_DEPLOYED'
-              : !isMigrationLoading,
-            status: (isBranch
-              ? currentBranch?.status === 'FUNCTIONS_DEPLOYED'
-                ? 'ACTIVE_HEALTHY'
+                ? ('ACTIVE_HEALTHY' as const)
                 : currentBranch?.status === 'FUNCTIONS_FAILED' ||
                     currentBranch?.status === 'MIGRATIONS_FAILED'
-                  ? 'UNHEALTHY'
-                  : 'COMING_UP'
+                  ? ('UNHEALTHY' as const)
+                  : ('COMING_UP' as const)
               : isMigrationLoading
                 ? 'COMING_UP'
-                : 'ACTIVE_HEALTHY') as ProjectServiceStatus,
+                : 'ACTIVE_HEALTHY',
             logsUrl: isBranch ? '/branches' : '/logs/database-logs',
           },
         ]
@@ -246,7 +210,10 @@ export const ServiceStatus = () => {
   ]
 
   const isLoadingChecks = services.some((service) => service.isLoading)
-  const allServicesOperational = services.every((service) => service.isHealthy)
+  // We consider a service operational if it's healthy or intentionally disabled
+  const allServicesOperational = services.every(
+    (service) => service.status === 'ACTIVE_HEALTHY' || service.status === 'DISABLED'
+  )
 
   // Check if project or branch is in a startup state
   const isProjectNew =
@@ -257,9 +224,7 @@ export const ServiceStatus = () => {
         currentBranch?.status === 'RUNNING_MIGRATIONS' ||
         isMigrationLoading))
 
-  const anyUnhealthy = services.some(
-    (service) => !service.isHealthy && service.status !== 'COMING_UP'
-  )
+  const anyUnhealthy = services.some((service) => service.status === 'UNHEALTHY')
   const anyComingUp = services.some((service) => service.status === 'COMING_UP')
   // Spinner only while the overall project is in COMING_UP; otherwise show 6-dot grid
   const showSpinnerIcon = project?.status === 'COMING_UP'
@@ -289,9 +254,9 @@ export const ServiceStatus = () => {
                       'w-1.5 h-1.5 rounded-full',
                       service.isLoading ||
                         service.status === 'COMING_UP' ||
-                        (isProjectNew && !service.isHealthy)
+                        (isProjectNew && service.status !== 'ACTIVE_HEALTHY')
                         ? 'bg-foreground-lighter animate-pulse'
-                        : service.isHealthy
+                        : service.status === 'ACTIVE_HEALTHY'
                           ? 'bg-brand'
                           : 'bg-selection'
                     )}
@@ -314,7 +279,6 @@ export const ServiceStatus = () => {
             <div className="flex gap-x-2">
               <StatusIcon
                 isLoading={service.isLoading}
-                isHealthy={!!service.isHealthy}
                 isProjectNew={isProjectNew}
                 projectStatus={service.status}
               />
@@ -323,7 +287,6 @@ export const ServiceStatus = () => {
                 <p className="text-foreground-light flex items-center gap-1">
                   <StatusMessage
                     isLoading={service.isLoading}
-                    isHealthy={!!service.isHealthy}
                     isProjectNew={isProjectNew}
                     status={service.status}
                   />
diff --git a/apps/studio/data/service-status/service-status-query.ts b/apps/studio/data/service-status/service-status-query.ts
index 38d481bbdd6..4b8f2d3c422 100644
--- a/apps/studio/data/service-status/service-status-query.ts
+++ b/apps/studio/data/service-status/service-status-query.ts
@@ -1,5 +1,6 @@
 import { useQuery } from '@tanstack/react-query'
 
+import { components } from 'api-types'
 import { get, handleError } from 'data/fetchers'
 import type { ResponseError, UseCustomQueryOptions } from 'types'
 import { serviceStatusKeys } from './keys'
@@ -8,6 +9,13 @@ export type ProjectServiceStatusVariables = {
   projectRef?: string
 }
 
+// Omit the 'healthy' field as it's equivalent to status = 'ACTIVE_HEALTHY'
+export type ServiceHealthResponse = Omit<
+  components['schemas']['V1ServiceHealthResponse'],
+  'healthy'
+>
+export type ProjectServiceStatus = ServiceHealthResponse['status']
+
 export async function getProjectServiceStatus(
   { projectRef }: ProjectServiceStatusVariables,
   signal?: AbortSignal
@@ -25,11 +33,11 @@ export async function getProjectServiceStatus(
   })
 
   if (error) handleError(error)
-  return data
+
+  return data as ServiceHealthResponse[]
 }
 
 export type ProjectServiceStatusData = Awaited<ReturnType<typeof getProjectServiceStatus>>
-export type ProjectServiceStatus = ProjectServiceStatusData[0]['status']
 export type ProjectServiceStatusError = ResponseError
 
 export const useProjectServiceStatusQuery = <TData = ProjectServiceStatusData>(