diff --git a/studio/frontend/src/features/studio/sections/dataset-section.tsx b/studio/frontend/src/features/studio/sections/dataset-section.tsx
index 576b45610b..a72c21100a 100644
--- a/studio/frontend/src/features/studio/sections/dataset-section.tsx
+++ b/studio/frontend/src/features/studio/sections/dataset-section.tsx
@@ -293,7 +293,7 @@ export function DatasetSection() {
     if (!uploadedFile) return;
     if (selectedLocalDataset) return;
     // Don't clear if this is a direct file upload (not a recipe directory)
-    if (uploadedFile.includes("/dataset-uploads/")) return;
+    if (isLikelyLocalDatasetRef(uploadedFile)) return;
     selectLocalDataset(null);
   }, [
     datasetSource,