diff --git a/persistence-service-v1/persistence-service-processor-v1/src/main/java/com/iqser/red/service/persistence/management/v1/processor/service/DictionaryManagementService.java b/persistence-service-v1/persistence-service-processor-v1/src/main/java/com/iqser/red/service/persistence/management/v1/processor/service/DictionaryManagementService.java
index 3f077a717..c9579cbe8 100644
--- a/persistence-service-v1/persistence-service-processor-v1/src/main/java/com/iqser/red/service/persistence/management/v1/processor/service/DictionaryManagementService.java
+++ b/persistence-service-v1/persistence-service-processor-v1/src/main/java/com/iqser/red/service/persistence/management/v1/processor/service/DictionaryManagementService.java
@@ -294,11 +294,13 @@ public class DictionaryManagementService {
                 checkDossierMatchesDossierTemplate(dossierId, dossierTemplateId);
                 // type not found, it should be created based on the info from the dossier template type
                 var dossierTemplateType = dictionaryPersistenceService.getType(getDosssierTemplateTypeIdFromTypeId(typeId), includeDeleted);
-                Type dossierDictionaryType = MagicConverter.convert(dossierTemplateType, Type.class);
-                dossierDictionaryType.setVersion(0);
-                dossierDictionaryType.setDossierId(dossierId);
-                var returnedType = this.addType(dossierDictionaryType);
-                log.info("Type added: " + returnedType.toString());
+                if (!dossierTemplateType.isDeleted()) { //create dossier types if dossier template type is not deleted
+                    Type dossierDictionaryType = MagicConverter.convert(dossierTemplateType, Type.class);
+                    dossierDictionaryType.setVersion(0);
+                    dossierDictionaryType.setDossierId(dossierId);
+                    var returnedType = this.addType(dossierDictionaryType);
+                    log.info("Type added: " + returnedType.toString());
+                }
             }
         }
     }
diff --git a/persistence-service-v1/persistence-service-server-v1/src/test/java/com/iqser/red/service/peristence/v1/server/integration/tests/DictionaryTest.java b/persistence-service-v1/persistence-service-server-v1/src/test/java/com/iqser/red/service/peristence/v1/server/integration/tests/DictionaryTest.java
index 584cbd23c..7a9888bf5 100644
--- a/persistence-service-v1/persistence-service-server-v1/src/test/java/com/iqser/red/service/peristence/v1/server/integration/tests/DictionaryTest.java
+++ b/persistence-service-v1/persistence-service-server-v1/src/test/java/com/iqser/red/service/peristence/v1/server/integration/tests/DictionaryTest.java
@@ -851,6 +851,55 @@ public class DictionaryTest extends AbstractPersistenceServerServiceTest {
     }
 
 
+    @Test
+    public void testCreateDossierOnTheFlyForDTTypeDeleted() {
+
+        var dossier = dossierTesterAndProvider.provideTestDossier();
+
+        var dossierTemplate = dossierTemplateClient.getDossierTemplate(dossier.getDossierTemplateId());
+
+        var dtType = dictionaryClient.addType(CreateTypeValue.builder()
+                                                      .type("test1")
+                                                      .label("test1")
+                                                      .hexColor("#fcba03")
+                                                      .rank(100)
+                                                      .hint(false)
+                                                      .caseInsensitive(false)
+                                                      .recommendation(false)
+                                                      .addToDictionaryAction(true)
+                                                      .dossierTemplateId(dossierTemplate.getId())
+                                                      .dossierDictionaryOnly(false)
+                                                      .build());
+        assertThat(dtType.getRank()).isEqualTo(100);
+        assertThat(dtType.isDossierDictionaryOnly()).isFalse();
+        assertThat(dictionaryClient.getAllTypes(dossierTemplate.getId(), null, true).getTypes().size()).isEqualTo(1);
+
+        dictionaryClient.deleteType(dtType.getType(), dtType.getDossierTemplateId());
+        assertThat(dictionaryClient.getAllTypes(dossierTemplate.getId(), null, false).getTypes().size()).isEqualTo(0);
+        assertThat(dictionaryClient.getAllTypes(dossierTemplate.getId(), null, true).getTypes().size()).isEqualTo(1);
+
+        var dtType2 = dictionaryClient.addType(CreateTypeValue.builder()
+                                                       .type("test2")
+                                                       .label("test2")
+                                                       .hexColor("#fcba03")
+                                                       .rank(100)
+                                                       .hint(false)
+                                                       .caseInsensitive(false)
+                                                       .recommendation(false)
+                                                       .addToDictionaryAction(true)
+                                                       .dossierTemplateId(dossierTemplate.getId())
+                                                       .dossierDictionaryOnly(false)
+                                                       .build());
+        assertThat(dictionaryClient.getAllTypes(dossierTemplate.getId(), null, false).getTypes().size()).isEqualTo(1);
+        assertThat(dictionaryClient.getAllTypes(dossierTemplate.getId(), null, true).getTypes().size()).isEqualTo(2);
+
+        assertThat(dtType2.getRank()).isEqualTo(dtType.getRank());
+        assertThat(dictionaryClient.getAllTypes(dossierTemplate.getId(), dossier.getId(), false).getTypes().size()).isEqualTo(2);
+        assertThat(dictionaryClient.getAllTypes(dossierTemplate.getId(), dossier.getId(), true).getTypes().size()).isEqualTo(3);
+
+    }
+
+
     @SuppressWarnings("SameParameterValue")
     private List<String> createDummyEntries(int numberOfEntries) {