diff --git a/cypress/e2e/2-credentials.cy.ts b/cypress/e2e/2-credentials.cy.ts
index 8ce3bc4080..71c3083856 100644
--- a/cypress/e2e/2-credentials.cy.ts
+++ b/cypress/e2e/2-credentials.cy.ts
@@ -26,6 +26,22 @@ const nodeDetailsView = new NDV();
 const NEW_CREDENTIAL_NAME = 'Something else';
 const NEW_CREDENTIAL_NAME2 = 'Something else entirely';
 
+function createNotionCredential() {
+	workflowPage.actions.addNodeToCanvas(NOTION_NODE_NAME);
+	workflowPage.actions.openNode(NOTION_NODE_NAME);
+	workflowPage.getters.nodeCredentialsSelect().click();
+	getVisibleSelect().find('li').last().click();
+	credentialsModal.actions.fillCredentialsForm();
+	cy.get('body').type('{esc}');
+	workflowPage.actions.deleteNode(NOTION_NODE_NAME);
+}
+
+function deleteSelectedCredential() {
+	workflowPage.getters.nodeCredentialsEditButton().click();
+	credentialsModal.getters.deleteButton().click();
+	cy.get('.el-message-box').find('button').contains('Yes').click();
+}
+
 describe('Credentials', () => {
 	beforeEach(() => {
 		cy.visit(credentialsPage.url);
@@ -229,6 +245,40 @@ describe('Credentials', () => {
 			.should('have.value', NEW_CREDENTIAL_NAME);
 	});
 
+	it('should set a default credential when adding nodes', () => {
+		workflowPage.actions.visit();
+
+		createNotionCredential();
+
+		workflowPage.actions.addNodeToCanvas(NOTION_NODE_NAME, true, true);
+		workflowPage.getters
+			.nodeCredentialsSelect()
+			.find('input')
+			.should('have.value', NEW_NOTION_ACCOUNT_NAME);
+
+		deleteSelectedCredential();
+	});
+
+	it('should set a default credential when editing a node', () => {
+		workflowPage.actions.visit();
+
+		createNotionCredential();
+
+		workflowPage.actions.addNodeToCanvas(HTTP_REQUEST_NODE_NAME, true, true);
+		nodeDetailsView.getters.parameterInput('authentication').click();
+		getVisibleSelect().find('li').contains('Predefined').click();
+
+		nodeDetailsView.getters.parameterInput('nodeCredentialType').click();
+		getVisibleSelect().find('li').contains('Notion API').click();
+
+		workflowPage.getters
+			.nodeCredentialsSelect()
+			.find('input')
+			.should('have.value', NEW_NOTION_ACCOUNT_NAME);
+
+		deleteSelectedCredential();
+	});
+
 	it('should setup generic authentication for HTTP node', () => {
 		workflowPage.actions.visit();
 		workflowPage.actions.addNodeToCanvas(SCHEDULE_TRIGGER_NODE_NAME);
diff --git a/packages/editor-ui/src/components/NodeCredentials.vue b/packages/editor-ui/src/components/NodeCredentials.vue
index 34657284c3..a718b91757 100644
--- a/packages/editor-ui/src/components/NodeCredentials.vue
+++ b/packages/editor-ui/src/components/NodeCredentials.vue
@@ -37,6 +37,7 @@ import {
 	N8nText,
 	N8nTooltip,
 } from 'n8n-design-system';
+import { isEmpty } from '@/utils/typesUtils';
 
 interface CredentialDropdownOption extends ICredentialsResponse {
 	typeDisplayName: string;
@@ -87,9 +88,9 @@ const credentialTypesNode = computed(() =>
 );
 
 const credentialTypesNodeDescriptionDisplayed = computed(() =>
-	credentialTypesNodeDescription.value.filter((credentialTypeDescription) =>
-		displayCredentials(credentialTypeDescription),
-	),
+	credentialTypesNodeDescription.value
+		.filter((credentialTypeDescription) => displayCredentials(credentialTypeDescription))
+		.map((type) => ({ type, options: getCredentialOptions(getAllRelatedCredentialTypes(type)) })),
 );
 const credentialTypesNodeDescription = computed(() => {
 	if (typeof props.overrideCredType !== 'string') return [];
@@ -149,6 +150,27 @@ watch(
 	{ immediate: true, deep: true },
 );
 
+// Select most recent credential by default
+watch(
+	credentialTypesNodeDescriptionDisplayed,
+	(types) => {
+		if (types.length === 0 || !isEmpty(selected.value)) return;
+
+		const allOptions = types.map((type) => type.options).flat();
+
+		if (allOptions.length === 0) return;
+
+		const mostRecentCredential = allOptions.reduce(
+			(mostRecent, current) =>
+				mostRecent && mostRecent.updatedAt > current.updatedAt ? mostRecent : current,
+			allOptions[0],
+		);
+
+		onCredentialSelected(mostRecentCredential.type, mostRecentCredential.id);
+	},
+	{ immediate: true },
+);
+
 onMounted(() => {
 	credentialsStore.$onAction(({ name, after, args }) => {
 		const listeningForActions = ['createNewCredential', 'updateCredential', 'deleteCredential'];
@@ -481,12 +503,9 @@ function getCredentialsFieldLabel(credentialType: INodeCredentialDescription): s
 		v-if="credentialTypesNodeDescriptionDisplayed.length"
 		:class="['node-credentials', $style.container]"
 	>
-		<div
-			v-for="credentialTypeDescription in credentialTypesNodeDescriptionDisplayed"
-			:key="credentialTypeDescription.name"
-		>
+		<div v-for="{ type, options } in credentialTypesNodeDescriptionDisplayed" :key="type.name">
 			<N8nInputLabel
-				:label="getCredentialsFieldLabel(credentialTypeDescription)"
+				:label="getCredentialsFieldLabel(type)"
 				:bold="false"
 				size="small"
 				color="text-dark"
@@ -494,7 +513,7 @@ function getCredentialsFieldLabel(credentialType: INodeCredentialDescription): s
 			>
 				<div v-if="readonly">
 					<N8nInput
-						:model-value="getSelectedName(credentialTypeDescription.name)"
+						:model-value="getSelectedName(type.name)"
 						disabled
 						size="small"
 						data-test-id="node-credentials-select"
@@ -502,36 +521,20 @@ function getCredentialsFieldLabel(credentialType: INodeCredentialDescription): s
 				</div>
 				<div
 					v-else
-					:class="
-						getIssues(credentialTypeDescription.name).length && !hideIssues
-							? $style.hasIssues
-							: $style.input
-					"
+					:class="getIssues(type.name).length && !hideIssues ? $style.hasIssues : $style.input"
 					data-test-id="node-credentials-select"
 				>
 					<N8nSelect
-						:model-value="getSelectedId(credentialTypeDescription.name)"
-						:placeholder="
-							getSelectPlaceholder(
-								credentialTypeDescription.name,
-								getIssues(credentialTypeDescription.name),
-							)
-						"
+						:model-value="getSelectedId(type.name)"
+						:placeholder="getSelectPlaceholder(type.name, getIssues(type.name))"
 						size="small"
 						@update:model-value="
-							(value: string) =>
-								onCredentialSelected(
-									credentialTypeDescription.name,
-									value,
-									showMixedCredentials(credentialTypeDescription),
-								)
+							(value: string) => onCredentialSelected(type.name, value, showMixedCredentials(type))
 						"
 						@blur="emit('blur', 'credentials')"
 					>
 						<N8nOption
-							v-for="item in getCredentialOptions(
-								getAllRelatedCredentialTypes(credentialTypeDescription),
-							)"
+							v-for="item in options"
 							:key="item.id"
 							:data-test-id="`node-credentials-select-item-${item.id}`"
 							:label="item.name"
@@ -551,15 +554,12 @@ function getCredentialsFieldLabel(credentialType: INodeCredentialDescription): s
 						</N8nOption>
 					</N8nSelect>
 
-					<div
-						v-if="getIssues(credentialTypeDescription.name).length && !hideIssues"
-						:class="$style.warning"
-					>
+					<div v-if="getIssues(type.name).length && !hideIssues" :class="$style.warning">
 						<N8nTooltip placement="top">
 							<template #content>
 								<TitledList
 									:title="`${$locale.baseText('nodeCredentials.issues')}:`"
-									:items="getIssues(credentialTypeDescription.name)"
+									:items="getIssues(type.name)"
 								/>
 							</template>
 							<font-awesome-icon icon="exclamation-triangle" />
@@ -567,10 +567,7 @@ function getCredentialsFieldLabel(credentialType: INodeCredentialDescription): s
 					</div>
 
 					<div
-						v-if="
-							selected[credentialTypeDescription.name] &&
-							isCredentialExisting(credentialTypeDescription.name)
-						"
+						v-if="selected[type.name] && isCredentialExisting(type.name)"
 						:class="$style.edit"
 						data-test-id="credential-edit-button"
 					>
@@ -578,7 +575,7 @@ function getCredentialsFieldLabel(credentialType: INodeCredentialDescription): s
 							icon="pen"
 							class="clickable"
 							:title="$locale.baseText('nodeCredentials.updateCredential')"
-							@click="editCredential(credentialTypeDescription.name)"
+							@click="editCredential(type.name)"
 						/>
 					</div>
 				</div>
diff --git a/packages/editor-ui/src/composables/useCanvasOperations.test.ts b/packages/editor-ui/src/composables/useCanvasOperations.test.ts
index 9b6a819238..b3c9c06b15 100644
--- a/packages/editor-ui/src/composables/useCanvasOperations.test.ts
+++ b/packages/editor-ui/src/composables/useCanvasOperations.test.ts
@@ -191,36 +191,6 @@ describe('useCanvasOperations', () => {
 			expect(result.position).toEqual([20, 20]);
 		});
 
-		it('should create node with default credentials when only one credential is available', () => {
-			const credentialsStore = useCredentialsStore();
-			const credential = mock<ICredentialsResponse>({ id: '1', name: 'cred', type: 'cred' });
-			const nodeTypeName = 'type';
-			const nodeTypeDescription = mockNodeTypeDescription({
-				name: nodeTypeName,
-				credentials: [{ name: credential.name }],
-			});
-
-			credentialsStore.state.credentials = {
-				[credential.id]: credential,
-			};
-
-			// @ts-expect-error Known pinia issue when spying on store getters
-			vi.spyOn(credentialsStore, 'getUsableCredentialByType', 'get').mockReturnValue(() => [
-				credential,
-			]);
-
-			const { addNode } = useCanvasOperations({ router });
-			const result = addNode(
-				{
-					type: nodeTypeName,
-					typeVersion: 1,
-				},
-				nodeTypeDescription,
-			);
-
-			expect(result.credentials).toEqual({ [credential.name]: { id: '1', name: credential.name } });
-		});
-
 		it('should not assign credentials when multiple credentials are available', () => {
 			const credentialsStore = useCredentialsStore();
 			const credentialA = mock<ICredentialsResponse>({ id: '1', name: 'credA', type: 'cred' });
diff --git a/packages/editor-ui/src/composables/useCanvasOperations.ts b/packages/editor-ui/src/composables/useCanvasOperations.ts
index 2d811a539e..a27c4f99db 100644
--- a/packages/editor-ui/src/composables/useCanvasOperations.ts
+++ b/packages/editor-ui/src/composables/useCanvasOperations.ts
@@ -777,7 +777,6 @@ export function useCanvasOperations({ router }: { router: ReturnType<typeof useR
 		};
 
 		resolveNodeParameters(nodeData);
-		resolveNodeCredentials(nodeData, nodeTypeDescription);
 		resolveNodeName(nodeData);
 		resolveNodeWebhook(nodeData, nodeTypeDescription);
 
@@ -840,60 +839,6 @@ export function useCanvasOperations({ router }: { router: ReturnType<typeof useR
 		node.parameters = nodeParameters ?? {};
 	}
 
-	function resolveNodeCredentials(node: INodeUi, nodeTypeDescription: INodeTypeDescription) {
-		const credentialPerType = nodeTypeDescription.credentials
-			?.map((type) => credentialsStore.getUsableCredentialByType(type.name))
-			.flat();
-
-		if (credentialPerType?.length === 1) {
-			const defaultCredential = credentialPerType[0];
-
-			const selectedCredentials = credentialsStore.getCredentialById(defaultCredential.id);
-			const selected = { id: selectedCredentials.id, name: selectedCredentials.name };
-			const credentials = {
-				[defaultCredential.type]: selected,
-			};
-
-			if (nodeTypeDescription.credentials) {
-				const authentication = nodeTypeDescription.credentials.find(
-					(type) => type.name === defaultCredential.type,
-				);
-
-				const authDisplayOptionsHide = authentication?.displayOptions?.hide;
-				const authDisplayOptionsShow = authentication?.displayOptions?.show;
-
-				if (!authDisplayOptionsHide) {
-					if (!authDisplayOptionsShow) {
-						node.credentials = credentials;
-					} else if (
-						Object.keys(authDisplayOptionsShow).length === 1 &&
-						authDisplayOptionsShow.authentication
-					) {
-						// ignore complex case when there's multiple dependencies
-						node.credentials = credentials;
-
-						let parameters: { [key: string]: string } = {};
-						for (const displayOption of Object.keys(authDisplayOptionsShow)) {
-							if (node.parameters && !node.parameters[displayOption]) {
-								parameters = {};
-								node.credentials = undefined;
-								break;
-							}
-							const optionValue = authDisplayOptionsShow[displayOption]?.[0];
-							if (optionValue && typeof optionValue === 'string') {
-								parameters[displayOption] = optionValue;
-							}
-							node.parameters = {
-								...node.parameters,
-								...parameters,
-							};
-						}
-					}
-				}
-			}
-		}
-	}
-
 	function resolveNodePosition(
 		node: Omit<INodeUi, 'position'> & { position?: INodeUi['position'] },
 		nodeTypeDescription: INodeTypeDescription,