diff --git a/x-pack/plugins/index_management/public/application/components/mappings_editor/__jest__/client_integration/configuration_form.test.tsx b/x-pack/plugins/index_management/public/application/components/mappings_editor/__jest__/client_integration/configuration_form.test.tsx
index 9c317fd2486c..39c04d2e9da3 100644
--- a/x-pack/plugins/index_management/public/application/components/mappings_editor/__jest__/client_integration/configuration_form.test.tsx
+++ b/x-pack/plugins/index_management/public/application/components/mappings_editor/__jest__/client_integration/configuration_form.test.tsx
@@ -7,7 +7,6 @@
 
 import { AppDependencies } from '../../../..';
 import { registerTestBed, TestBed } from '@kbn/test-jest-helpers';
-import { licensingMock } from '@kbn/licensing-plugin/public/mocks';
 import { ConfigurationForm } from '../../components/configuration_form';
 import { WithAppDependencies } from './helpers/setup_environment';
 import { TestSubjects } from './helpers/mappings_editor.helpers';
@@ -29,21 +28,32 @@ const setup = (props: any = { onUpdate() {} }, appDependencies?: any) => {
   return testBed;
 };
 
+const getContext = (sourceFieldEnabled: boolean = true, hasEnterpriseLicense: boolean = true) =>
+  ({
+    config: {
+      enableMappingsSourceFieldSection: sourceFieldEnabled,
+    },
+    plugins: {
+      licensing: {
+        license$: {
+          subscribe: jest.fn((callback: any) => {
+            callback({
+              isActive: true,
+              hasAtLeast: jest.fn((type: any) => hasEnterpriseLicense),
+            });
+            return { unsubscribe: jest.fn() };
+          }),
+        },
+      },
+    },
+  } as unknown as AppDependencies);
+
 describe('Mappings editor: configuration form', () => {
   let testBed: TestBed<TestSubjects>;
 
   it('renders the form', async () => {
-    const ctx = {
-      config: {
-        enableMappingsSourceFieldSection: true,
-      },
-      plugins: {
-        licensing: licensingMock.createStart(),
-      },
-    } as unknown as AppDependencies;
-
     await act(async () => {
-      testBed = setup({ esNodesPlugins: [] }, ctx);
+      testBed = setup({ esNodesPlugins: [] }, getContext());
     });
     testBed.component.update();
     const { exists } = testBed;
@@ -52,42 +62,87 @@ describe('Mappings editor: configuration form', () => {
   });
 
   describe('_source field', () => {
-    it('renders the _source field when it is enabled', async () => {
-      const ctx = {
-        config: {
-          enableMappingsSourceFieldSection: true,
-        },
-        plugins: {
-          licensing: licensingMock.createStart(),
-        },
-      } as unknown as AppDependencies;
+    describe('renders depending on enableMappingsSourceFieldSection config', () => {
+      it('renders when config set to true', async () => {
+        await act(async () => {
+          testBed = setup({ esNodesPlugins: [] }, getContext(true));
+        });
+        testBed.component.update();
+        const { exists } = testBed;
 
-      await act(async () => {
-        testBed = setup({ esNodesPlugins: [] }, ctx);
+        expect(exists('sourceField')).toBe(true);
       });
-      testBed.component.update();
-      const { exists } = testBed;
 
-      expect(exists('sourceField')).toBe(true);
+      it("doesn't render when config set to false", async () => {
+        await act(async () => {
+          testBed = setup({ esNodesPlugins: [] }, getContext(false));
+        });
+        testBed.component.update();
+        const { exists } = testBed;
+
+        expect(exists('sourceField')).toBe(false);
+      });
     });
 
-    it("doesn't render the _source field when it is disabled", async () => {
-      const ctx = {
-        config: {
-          enableMappingsSourceFieldSection: false,
-        },
-        plugins: {
-          licensing: licensingMock.createStart(),
-        },
-      } as unknown as AppDependencies;
+    describe('has synthetic option depending on license', () => {
+      it('has synthetic option on enterprise license', async () => {
+        await act(async () => {
+          testBed = setup({ esNodesPlugins: [] }, getContext(true, true));
+        });
+        testBed.component.update();
+        const { exists, find } = testBed;
 
-      await act(async () => {
-        testBed = setup({ esNodesPlugins: [] }, ctx);
+        // Clicking on the field to open the options dropdown
+        find('sourceValueField').simulate('click');
+        expect(exists('syntheticSourceFieldOption')).toBe(true);
       });
-      testBed.component.update();
-      const { exists } = testBed;
 
-      expect(exists('sourceField')).toBe(false);
+      it("doesn't have synthetic option on lower than enterprise license", async () => {
+        await act(async () => {
+          testBed = setup({ esNodesPlugins: [] }, getContext(true, false));
+        });
+        testBed.component.update();
+        const { exists, find } = testBed;
+
+        // Clicking on the field to open the options dropdown
+        find('sourceValueField').simulate('click');
+        expect(exists('syntheticSourceFieldOption')).toBe(false);
+      });
+    });
+
+    describe('has correct default value', () => {
+      it("defaults to 'stored' if index mode prop is 'standard'", async () => {
+        await act(async () => {
+          testBed = setup({ esNodesPlugins: [], indexMode: 'standard' }, getContext());
+        });
+        testBed.component.update();
+        const { find } = testBed;
+
+        // Check that the stored option is selected
+        expect(find('sourceValueField').text()).toBe('Stored _source');
+      });
+
+      it("defaults to 'synthetic' if index mode prop is 'logsdb'", async () => {
+        await act(async () => {
+          testBed = setup({ esNodesPlugins: [], indexMode: 'logsdb' }, getContext());
+        });
+        testBed.component.update();
+        const { find } = testBed;
+
+        // Check that the synthetic option is selected
+        expect(find('sourceValueField').text()).toBe('Synthetic _source');
+      });
+
+      it("defaults to 'synthetic' if index mode prop is 'time_series'", async () => {
+        await act(async () => {
+          testBed = setup({ esNodesPlugins: [], indexMode: 'time_series' }, getContext());
+        });
+        testBed.component.update();
+        const { find } = testBed;
+
+        // Check that the synthetic option is selected
+        expect(find('sourceValueField').text()).toBe('Synthetic _source');
+      });
     });
   });
 });
diff --git a/x-pack/plugins/index_management/public/application/components/mappings_editor/components/configuration_form/source_field_section/source_field_section.tsx b/x-pack/plugins/index_management/public/application/components/mappings_editor/components/configuration_form/source_field_section/source_field_section.tsx
index 3b5d62a5aeb6..45df40caa3a0 100644
--- a/x-pack/plugins/index_management/public/application/components/mappings_editor/components/configuration_form/source_field_section/source_field_section.tsx
+++ b/x-pack/plugins/index_management/public/application/components/mappings_editor/components/configuration_form/source_field_section/source_field_section.tsx
@@ -47,6 +47,7 @@ export const SourceFieldSection = () => {
       value: STORED_SOURCE_OPTION,
       inputDisplay: sourceOptionLabels[STORED_SOURCE_OPTION],
       dropdownDisplay: renderOptionDropdownDisplay(STORED_SOURCE_OPTION),
+      'data-test-subj': 'storedSourceFieldOption',
     },
   ];
 
@@ -55,12 +56,14 @@ export const SourceFieldSection = () => {
       value: SYNTHETIC_SOURCE_OPTION,
       inputDisplay: sourceOptionLabels[SYNTHETIC_SOURCE_OPTION],
       dropdownDisplay: renderOptionDropdownDisplay(SYNTHETIC_SOURCE_OPTION),
+      'data-test-subj': 'syntheticSourceFieldOption',
     });
   }
   sourceValueOptions.push({
     value: DISABLED_SOURCE_OPTION,
     inputDisplay: sourceOptionLabels[DISABLED_SOURCE_OPTION],
     dropdownDisplay: renderOptionDropdownDisplay(DISABLED_SOURCE_OPTION),
+    'data-test-subj': 'disabledSourceFieldOption',
   });
 
   const renderDisableWarning = () => (