diff --git a/web/pgadmin/static/js/sqleditor/query_tool_preferences.js b/web/pgadmin/static/js/sqleditor/query_tool_preferences.js
index daeefad..586b0ec 100644
--- a/web/pgadmin/static/js/sqleditor/query_tool_preferences.js
+++ b/web/pgadmin/static/js/sqleditor/query_tool_preferences.js
@@ -105,20 +105,6 @@ function updateUIPreferences(sqlEditor) {
     .attr('title',
       shortcut_title('Rollback',preferences.rollback_transaction));
 
-  /* Set Auto-commit and auto-rollback on query editor */
-  if (preferences.auto_commit) {
-    $el.find('.auto-commit').removeClass('visibility-hidden');
-  }
-  else {
-    $el.find('.auto-commit').addClass('visibility-hidden');
-  }
-  if (preferences.auto_rollback) {
-    $el.find('.auto-rollback').removeClass('visibility-hidden');
-  }
-  else {
-    $el.find('.auto-rollback').addClass('visibility-hidden');
-  }
-
   /* Set explain options on query editor */
   if (preferences.explain_verbose){
     $el.find('.explain-verbose').removeClass('visibility-hidden');
diff --git a/web/pgadmin/tools/datagrid/__init__.py b/web/pgadmin/tools/datagrid/__init__.py
index 3736e38..ca61483 100644
--- a/web/pgadmin/tools/datagrid/__init__.py
+++ b/web/pgadmin/tools/datagrid/__init__.py
@@ -28,6 +28,7 @@ from config import PG_DEFAULT_DRIVER
 from pgadmin.model import Server
 from pgadmin.utils.driver import get_driver
 from pgadmin.utils.exception import ConnectionLost, SSHTunnelConnectionLost
+from pgadmin.utils.preferences import Preferences
 
 query_tool_close_session_lock = Lock()
 
@@ -374,6 +375,11 @@ def initialize_query_tool(sgid, sid, did=None):
     else:
         sql_grid_data = session['gridData']
 
+    # Set the value of auto commit and auto rollback specify in Preferences
+    pref = Preferences.module('sqleditor')
+    command_obj.set_auto_commit(pref.preference('auto_commit').get())
+    command_obj.set_auto_rollback(pref.preference('auto_rollback').get())
+
     # Use pickle to store the command object which will be used
     # later by the sql grid module.
     sql_grid_data[trans_id] = {
diff --git a/web/pgadmin/tools/sqleditor/__init__.py b/web/pgadmin/tools/sqleditor/__init__.py
index 18098e6..e2dd5a4 100644
--- a/web/pgadmin/tools/sqleditor/__init__.py
+++ b/web/pgadmin/tools/sqleditor/__init__.py
@@ -308,15 +308,6 @@ def start_query_tool(trans_id):
 
     connect = 'connect' in request.args and request.args['connect'] == '1'
 
-    # Preferences can be changed from outside.
-    # Get the latest preferences for auto commit, rollback,etc. before
-    # executing the query
-    error_msg = set_trans_preferences(trans_id)
-    if error_msg == gettext('Transaction ID not found in the session.'):
-        return make_json_response(success=0, errormsg=error_msg,
-                                  info='DATAGRID_TRANSACTION_REQUIRED',
-                                  status=404)
-
     return StartRunningQuery(blueprint, current_app.logger).execute(
         sql, trans_id, session, connect
     )
@@ -335,30 +326,9 @@ def extract_sql_from_network_parameters(request_data, request_arguments,
         return request_arguments or request_form_data
 
 
-def set_trans_preferences(trans_id):
-    # Check the transaction and connection status
-    status, error_msg, conn, trans_obj, session_obj = \
-        check_transaction_status(trans_id)
-
-    if error_msg == gettext('Transaction ID not found in the session.'):
-        return error_msg
-
-    if status and conn is not None and \
-       trans_obj is not None and session_obj is not None:
-        # Call the set_auto_commit and set_auto_rollback method of
-        # transaction object
-        trans_obj.set_auto_commit(blueprint.auto_commit.get())
-        trans_obj.set_auto_rollback(blueprint.auto_rollback.get())
-
-        # As we changed the transaction object we need to
-        # restore it and update the session variable.
-        session_obj['command_obj'] = pickle.dumps(trans_obj, -1)
-        update_session_grid_transaction(trans_id, session_obj)
-
-
 @blueprint.route(
     '/query_tool/preferences/<int:trans_id>',
-    methods=["GET", "PUT"], endpoint='query_tool_preferences'
+    methods=["PUT"], endpoint='query_tool_preferences'
 )
 @login_required
 def preferences(trans_id):
@@ -368,42 +338,24 @@ def preferences(trans_id):
         Args:
             trans_id: unique transaction id
     """
-    if request.method == 'GET':
-
-        error_msg = set_trans_preferences(trans_id)
-        if error_msg == gettext('Transaction ID not found in the session.'):
-            return make_json_response(success=0, errormsg=error_msg,
-                                      info='DATAGRID_TRANSACTION_REQUIRED',
-                                      status=404)
 
-        return make_json_response(
-            data={
-                'explain_verbose': blueprint.explain_verbose.get(),
-                'explain_costs': blueprint.explain_costs.get(),
-                'explain_buffers': blueprint.explain_buffers.get(),
-                'explain_timing': blueprint.explain_timing.get(),
-                'auto_commit': blueprint.auto_commit.get(),
-                'auto_rollback': blueprint.auto_rollback.get()
-            }
-        )
+    data = None
+    if request.data:
+        data = json.loads(request.data, encoding='utf-8')
     else:
-        data = None
-        if request.data:
-            data = json.loads(request.data, encoding='utf-8')
-        else:
-            data = request.args or request.form
-        for k, v in data.items():
-            v = bool(v)
-            if k == 'explain_verbose':
-                blueprint.explain_verbose.set(v)
-            elif k == 'explain_costs':
-                blueprint.explain_costs.set(v)
-            elif k == 'explain_buffers':
-                blueprint.explain_buffers.set(v)
-            elif k == 'explain_timing':
-                blueprint.explain_timing.set(v)
+        data = request.args or request.form
+    for k, v in data.items():
+        v = bool(v)
+        if k == 'explain_verbose':
+            blueprint.explain_verbose.set(v)
+        elif k == 'explain_costs':
+            blueprint.explain_costs.set(v)
+        elif k == 'explain_buffers':
+            blueprint.explain_buffers.set(v)
+        elif k == 'explain_timing':
+            blueprint.explain_timing.set(v)
 
-        return success_return()
+    return success_return()
 
 
 @blueprint.route('/poll/<int:trans_id>', methods=["GET"], endpoint='poll')
@@ -1157,9 +1109,6 @@ def set_auto_commit(trans_id):
         # Call the set_auto_commit method of transaction object
         trans_obj.set_auto_commit(auto_commit)
 
-        # Set Auto commit in preferences
-        blueprint.auto_commit.set(bool(auto_commit))
-
         # As we changed the transaction object we need to
         # restore it and update the session variable.
         session_obj['command_obj'] = pickle.dumps(trans_obj, -1)
@@ -1205,9 +1154,6 @@ def set_auto_rollback(trans_id):
         # Call the set_auto_rollback method of transaction object
         trans_obj.set_auto_rollback(auto_rollback)
 
-        # Set Auto Rollback in preferences
-        blueprint.auto_rollback.set(bool(auto_rollback))
-
         # As we changed the transaction object we need to
         # restore it and update the session variable.
         session_obj['command_obj'] = pickle.dumps(trans_obj, -1)
diff --git a/web/pgadmin/tools/sqleditor/static/js/sqleditor.js b/web/pgadmin/tools/sqleditor/static/js/sqleditor.js
index f6b63e2..c7232e4 100644
--- a/web/pgadmin/tools/sqleditor/static/js/sqleditor.js
+++ b/web/pgadmin/tools/sqleditor/static/js/sqleditor.js
@@ -554,6 +554,20 @@ define('tools.querytool', [
 
       self.reflectPreferences();
 
+      /* Set Auto-commit and auto-rollback on query editor */
+      if (self.preferences.auto_commit) {
+        $('.auto-commit').removeClass('visibility-hidden');
+      }
+      else {
+        $('.auto-commit').addClass('visibility-hidden');
+      }
+      if (self.preferences.auto_rollback) {
+        $('.auto-rollback').removeClass('visibility-hidden');
+      }
+      else {
+        $('.auto-rollback').addClass('visibility-hidden');
+      }
+
       /* Register for preference changed event broadcasted in parent
        * to reload the shorcuts. As sqleditor is in iFrame of wcDocker
        * window parent is referred
@@ -3654,8 +3668,6 @@ define('tools.querytool', [
         .done(function(res) {
           if (!res.data.status)
             alertify.alert(gettext('Auto Rollback Error'), res.data.result);
-          else
-            self.call_cache_preferences();
         })
         .fail(function(e) {
 
@@ -3677,6 +3689,13 @@ define('tools.querytool', [
           auto_commit = false;
         }
 
+        if (auto_commit && !self.is_transaction_buttons_disabled) {
+          alertify.alert(gettext('Warning - Transaction in progress'),
+            gettext('The current transaction is still in progess.<br><br>') +
+            gettext('In order to take the effect of AUTOCOMMIT mode, please ') +
+            gettext('complete the transaction by executing COMMIT, or ROLLBACK statement.')
+          );
+        }
         // Make ajax call to toggle auto commit
         $.ajax({
           url: url_for('sqleditor.auto_commit', {
@@ -3689,8 +3708,6 @@ define('tools.querytool', [
         .done(function(res) {
           if (!res.data.status)
             alertify.alert(gettext('Auto Commit Error'), res.data.result);
-          else
-            self.call_cache_preferences();
         })
         .fail(function(e) {
           let msg = httpErrorHandler.handleQueryToolAjaxError(
diff --git a/web/pgadmin/tools/sqleditor/tests/test_start_query_tool.py b/web/pgadmin/tools/sqleditor/tests/test_start_query_tool.py
index 6c1b3a0..a5a6aa4 100644
--- a/web/pgadmin/tools/sqleditor/tests/test_start_query_tool.py
+++ b/web/pgadmin/tools/sqleditor/tests/test_start_query_tool.py
@@ -23,17 +23,13 @@ class StartQueryTool(BaseTestGenerator):
     calls the needed functions
     """
 
-    @patch('pgadmin.tools.sqleditor.set_trans_preferences')
     @patch('pgadmin.tools.sqleditor.extract_sql_from_network_parameters')
-    def runTest(self, extract_sql_from_network_parameters_mock,
-                set_trans_preferences):
+    def runTest(self, extract_sql_from_network_parameters_mock):
         """Check correct function is called to handle to run query."""
 
         extract_sql_from_network_parameters_mock.return_value = \
             'transformed sql'
 
-        set_trans_preferences.return_value = ''
-
         with patch.object(StartRunningQuery,
                           'execute',
                           return_value='some result'