diff --git a/app/client/src/sagas/DatasourcesSagas.ts b/app/client/src/sagas/DatasourcesSagas.ts
index b05c609664ed..8d9b77bf4e32 100644
--- a/app/client/src/sagas/DatasourcesSagas.ts
+++ b/app/client/src/sagas/DatasourcesSagas.ts
@@ -929,7 +929,7 @@ function* testDatasourceSaga(actionPayload: ReduxAction<Datasource>) {
             id: datasource.id,
             environmentId: currentEnvironment,
             show: true,
-            error: { message: responseData.invalids.join(", ") },
+            error: { message: responseData.invalids.join("\n") },
           },
         });
         AppsmithConsole.error({
diff --git a/app/server/appsmith-plugins/postgresPlugin/src/main/java/com/external/plugins/PostgresPlugin.java b/app/server/appsmith-plugins/postgresPlugin/src/main/java/com/external/plugins/PostgresPlugin.java
index 8a6db99d5a6d..a27e2ecc8e9b 100644
--- a/app/server/appsmith-plugins/postgresPlugin/src/main/java/com/external/plugins/PostgresPlugin.java
+++ b/app/server/appsmith-plugins/postgresPlugin/src/main/java/com/external/plugins/PostgresPlugin.java
@@ -47,6 +47,8 @@
 import org.pf4j.Extension;
 import org.pf4j.PluginWrapper;
 import org.postgresql.util.PGobject;
+import org.postgresql.util.PSQLException;
+import org.postgresql.util.PSQLState;
 import org.springframework.util.CollectionUtils;
 import org.springframework.util.StringUtils;
 import reactor.core.publisher.Mono;
@@ -1347,10 +1349,21 @@ private static HikariDataSource createConnectionPool(
         try {
             datasource = new HikariDataSource(config);
         } catch (PoolInitializationException e) {
+            Throwable cause = e.getCause();
+            if (cause instanceof PSQLException) {
+                PSQLException psqlException = (PSQLException) cause;
+                String sqlState = psqlException.getSQLState();
+                if (PSQLState.CONNECTION_UNABLE_TO_CONNECT.getState().equals(sqlState)) {
+                    throw new AppsmithPluginException(
+                            AppsmithPluginError.PLUGIN_DATASOURCE_ARGUMENT_ERROR,
+                            PostgresErrorMessages.DS_INVALID_HOSTNAME_AND_PORT_MSG,
+                            psqlException.getMessage());
+                }
+            }
             throw new AppsmithPluginException(
                     AppsmithPluginError.PLUGIN_DATASOURCE_ARGUMENT_ERROR,
                     PostgresErrorMessages.CONNECTION_POOL_CREATION_FAILED_ERROR_MSG,
-                    e.getMessage());
+                    cause != null ? cause.getMessage() : e.getMessage());
         }
 
         return datasource;
diff --git a/app/server/appsmith-plugins/postgresPlugin/src/main/java/com/external/plugins/exceptions/PostgresErrorMessages.java b/app/server/appsmith-plugins/postgresPlugin/src/main/java/com/external/plugins/exceptions/PostgresErrorMessages.java
index daee36541178..8cee7970b58a 100644
--- a/app/server/appsmith-plugins/postgresPlugin/src/main/java/com/external/plugins/exceptions/PostgresErrorMessages.java
+++ b/app/server/appsmith-plugins/postgresPlugin/src/main/java/com/external/plugins/exceptions/PostgresErrorMessages.java
@@ -49,4 +49,6 @@ public class PostgresErrorMessages extends BasePluginErrorMessages {
     public static final String DS_MISSING_PASSWORD_ERROR_MSG = "Missing password for authentication.";
 
     public static final String DS_MISSING_DATABASE_NAME_ERROR_MSG = "Missing database name.";
+
+    public static final String DS_INVALID_HOSTNAME_AND_PORT_MSG = "Please check the host and port.";
 }