diff --git a/e2e_test/source_inline/fs/posix_fs.slt b/e2e_test/source_inline/fs/posix_fs.slt
index 79980737a0cc..96fb18e97e66 100644
--- a/e2e_test/source_inline/fs/posix_fs.slt
+++ b/e2e_test/source_inline/fs/posix_fs.slt
@@ -11,8 +11,19 @@ CREATE TABLE diamonds (
     connector = 'posix_fs',
     match_pattern = 'data*.csv',
     posix_fs.root = 'e2e_test/source_inline/fs/data',
+    source_rate_limit = 0
 ) FORMAT PLAIN ENCODE CSV ( without_header = 'false', delimiter = ',');
 
+sleep 1s
+
+# no output due to rate limit
+query TTTT rowsort
+select * from diamonds;
+----
+
+statement ok
+ALTER TABLE diamonds SET source_rate_limit TO DEFAULT;
+
 sleep 10s
 
 query TTTT rowsort
diff --git a/src/frontend/src/optimizer/plan_node/stream_fs_fetch.rs b/src/frontend/src/optimizer/plan_node/stream_fs_fetch.rs
index 3f8c89d7def1..9d3f46ca77cc 100644
--- a/src/frontend/src/optimizer/plan_node/stream_fs_fetch.rs
+++ b/src/frontend/src/optimizer/plan_node/stream_fs_fetch.rs
@@ -119,7 +119,7 @@ impl StreamNode for StreamFsFetch {
                     .map(|c| c.to_protobuf())
                     .collect_vec(),
                 with_properties,
-                rate_limit: self.base.ctx().overwrite_options().source_rate_limit,
+                rate_limit: source_catalog.rate_limit,
                 secret_refs,
             }
         });
diff --git a/src/meta/src/controller/streaming_job.rs b/src/meta/src/controller/streaming_job.rs
index 8496904d44c0..2da096268cff 100644
--- a/src/meta/src/controller/streaming_job.rs
+++ b/src/meta/src/controller/streaming_job.rs
@@ -21,6 +21,7 @@ use risingwave_common::hash::VnodeCountCompat;
 use risingwave_common::util::column_index_mapping::ColIndexMapping;
 use risingwave_common::util::stream_graph_visitor::visit_stream_node;
 use risingwave_common::{bail, current_cluster_version};
+use risingwave_connector::WithPropertiesExt;
 use risingwave_meta_model::actor::ActorStatus;
 use risingwave_meta_model::actor_dispatcher::DispatcherType;
 use risingwave_meta_model::object::ObjectType;
@@ -1276,6 +1277,7 @@ impl CatalogController {
                 MetaError::catalog_id_not_found(ObjectType::Source.as_str(), source_id)
             })?;
 
+        let is_fs_source = source.with_properties.inner_ref().is_new_fs_connector();
         let streaming_job_ids: Vec<ObjectId> =
             if let Some(table_id) = source.optional_associated_table_id {
                 vec![table_id]
@@ -1330,6 +1332,20 @@ impl CatalogController {
                     }
                 });
             }
+            if is_fs_source && *fragment_type_mask == PbFragmentTypeFlag::FragmentUnspecified as i32
+            {
+                // when create table with fs connector, the fragment type is unspecified
+                visit_stream_node(stream_node, |node| {
+                    if let PbNodeBody::StreamFsFetch(node) = node {
+                        if let Some(node_inner) = &mut node.node_inner
+                            && node_inner.source_id == source_id as u32
+                        {
+                            node_inner.rate_limit = rate_limit;
+                            found = true;
+                        }
+                    }
+                });
+            }
             found
         });
 
diff --git a/src/meta/src/stream/stream_graph/fragment.rs b/src/meta/src/stream/stream_graph/fragment.rs
index c2ccd4300ccf..fcd3a2c5d185 100644
--- a/src/meta/src/stream/stream_graph/fragment.rs
+++ b/src/meta/src/stream/stream_graph/fragment.rs
@@ -156,6 +156,15 @@ impl BuildingFragment {
                 dml_node.table_id = job_id;
                 dml_node.table_version_id = job.table_version_id().unwrap();
             }
+            NodeBody::StreamFsFetch(fs_fetch_node) => {
+                if let StreamingJob::Table(table_source, _, _) = job {
+                    if let Some(node_inner) = fs_fetch_node.node_inner.as_mut()
+                        && let Some(source) = table_source
+                    {
+                        node_inner.source_id = source.id;
+                    }
+                }
+            }
             NodeBody::Source(source_node) => {
                 match job {
                     // Note: For table without connector, it has a dummy Source node.
diff --git a/src/stream/src/executor/source/fetch_executor.rs b/src/stream/src/executor/source/fetch_executor.rs
index 766c42a5e2c8..19c83702a837 100644
--- a/src/stream/src/executor/source/fetch_executor.rs
+++ b/src/stream/src/executor/source/fetch_executor.rs
@@ -258,6 +258,11 @@ impl<S: StateStore, Src: OpendalSource> FsFetchExecutor<S, Src> {
                                                     actor_to_apply.get(&self.actor_ctx.id)
                                                     && *new_rate_limit != self.rate_limit_rps
                                                 {
+                                                    tracing::debug!(
+                                                        "updating rate limit from {:?} to {:?}",
+                                                        self.rate_limit_rps,
+                                                        *new_rate_limit
+                                                    );
                                                     self.rate_limit_rps = *new_rate_limit;
                                                     need_rebuild_reader = true;
                                                 }
diff --git a/src/stream/src/executor/source/source_executor.rs b/src/stream/src/executor/source/source_executor.rs
index 6e583caf739a..6fb72fe15ea3 100644
--- a/src/stream/src/executor/source/source_executor.rs
+++ b/src/stream/src/executor/source/source_executor.rs
@@ -608,6 +608,11 @@ impl<S: StateStore> SourceExecutor<S> {
                                 if let Some(new_rate_limit) = actor_to_apply.get(&self.actor_ctx.id)
                                     && *new_rate_limit != self.rate_limit_rps
                                 {
+                                    tracing::debug!(
+                                        "updating rate limit from {:?} to {:?}",
+                                        self.rate_limit_rps,
+                                        *new_rate_limit
+                                    );
                                     self.rate_limit_rps = *new_rate_limit;
                                     // recreate from latest_split_info
                                     self.rebuild_stream_reader(&source_desc, &mut stream)