diff --git a/metadata-ingestion/src/datahub/sql_parsing/sqlglot_lineage.py b/metadata-ingestion/src/datahub/sql_parsing/sqlglot_lineage.py
index 5148757ffa..86c97046b1 100644
--- a/metadata-ingestion/src/datahub/sql_parsing/sqlglot_lineage.py
+++ b/metadata-ingestion/src/datahub/sql_parsing/sqlglot_lineage.py
@@ -1176,7 +1176,12 @@ def _try_extract_select(
             statement = sqlglot.exp.Select().select("*").from_(statement)
     elif isinstance(statement, sqlglot.exp.Insert):
         # TODO Need to map column renames in the expressions part of the statement.
-        statement = statement.expression
+        # Preserve CTEs when extracting the SELECT expression from INSERT
+        original_ctes = statement.ctes
+        statement = statement.expression  # Get the SELECT expression from the INSERT
+        if isinstance(statement, sqlglot.exp.Query) and original_ctes:
+            for cte in original_ctes:
+                statement = statement.with_(alias=cte.alias, as_=cte.this)
     elif isinstance(statement, sqlglot.exp.Update):
         # Assumption: the output table is already captured in the modified tables list.
         statement = _extract_select_from_update(statement)
diff --git a/metadata-ingestion/tests/unit/sql_parsing/goldens/test_insert_with_cte.json b/metadata-ingestion/tests/unit/sql_parsing/goldens/test_insert_with_cte.json
new file mode 100644
index 0000000000..9c4de5e739
--- /dev/null
+++ b/metadata-ingestion/tests/unit/sql_parsing/goldens/test_insert_with_cte.json
@@ -0,0 +1,72 @@
+{
+    "query_type": "INSERT",
+    "query_type_props": {},
+    "query_fingerprint": "195448498ded7a1b4df767cf0a5ec53e2fa4c7b011234bafe0a60ff9d7d11c1d",
+    "in_tables": [
+        "urn:li:dataset:(urn:li:dataPlatform:tsql,db.schema.source_table,PROD)"
+    ],
+    "out_tables": [
+        "urn:li:dataset:(urn:li:dataPlatform:tsql,db.schema.target_table,PROD)"
+    ],
+    "column_lineage": [
+        {
+            "downstream": {
+                "table": "urn:li:dataset:(urn:li:dataPlatform:tsql,db.schema.target_table,PROD)",
+                "column": "id",
+                "column_type": null,
+                "native_column_type": null
+            },
+            "upstreams": [
+                {
+                    "table": "urn:li:dataset:(urn:li:dataPlatform:tsql,db.schema.source_table,PROD)",
+                    "column": "id"
+                }
+            ],
+            "logic": {
+                "is_direct_copy": true,
+                "column_logic": "[source_table].[id] AS [id]"
+            }
+        },
+        {
+            "downstream": {
+                "table": "urn:li:dataset:(urn:li:dataPlatform:tsql,db.schema.target_table,PROD)",
+                "column": "name",
+                "column_type": null,
+                "native_column_type": null
+            },
+            "upstreams": [
+                {
+                    "table": "urn:li:dataset:(urn:li:dataPlatform:tsql,db.schema.source_table,PROD)",
+                    "column": "name"
+                }
+            ],
+            "logic": {
+                "is_direct_copy": true,
+                "column_logic": "[source_table].[name] AS [name]"
+            }
+        },
+        {
+            "downstream": {
+                "table": "urn:li:dataset:(urn:li:dataPlatform:tsql,db.schema.target_table,PROD)",
+                "column": "value",
+                "column_type": null,
+                "native_column_type": null
+            },
+            "upstreams": [
+                {
+                    "table": "urn:li:dataset:(urn:li:dataPlatform:tsql,db.schema.source_table,PROD)",
+                    "column": "value"
+                }
+            ],
+            "logic": {
+                "is_direct_copy": true,
+                "column_logic": "[source_table].[value] AS [value]"
+            }
+        }
+    ],
+    "joins": [],
+    "debug_info": {
+        "confidence": 0.2,
+        "generalized_statement": "WITH temp_cte AS (SELECT id AS id, name AS name, value AS value FROM db.schema.source_table) INSERT INTO db.schema.target_table (id, name, value) SELECT id, name, value FROM temp_cte"
+    }
+}
\ No newline at end of file
diff --git a/metadata-ingestion/tests/unit/sql_parsing/test_sqlglot_lineage.py b/metadata-ingestion/tests/unit/sql_parsing/test_sqlglot_lineage.py
index 592c08bb40..ce97ecf13f 100644
--- a/metadata-ingestion/tests/unit/sql_parsing/test_sqlglot_lineage.py
+++ b/metadata-ingestion/tests/unit/sql_parsing/test_sqlglot_lineage.py
@@ -199,6 +199,21 @@ insert into downstream (a, c) select a, c from upstream2
     )
 
 
+def test_insert_with_cte() -> None:
+    assert_sql_result(
+        """
+WITH temp_cte AS (
+    SELECT id, name, value
+    FROM db.schema.source_table
+)
+INSERT INTO db.schema.target_table (id, name, value)
+SELECT id, name, value FROM temp_cte
+""",
+        dialect="tsql",
+        expected_file=RESOURCE_DIR / "test_insert_with_cte.json",
+    )
+
+
 def test_select_with_full_col_name() -> None:
     # In this case, `widget` is a struct column.
     # This also tests the `default_db` functionality.