diff --git a/metadata-ingestion/src/datahub/ingestion/source/fivetran/fivetran.py b/metadata-ingestion/src/datahub/ingestion/source/fivetran/fivetran.py
index c0395b4e4e..12e362fa8a 100644
--- a/metadata-ingestion/src/datahub/ingestion/source/fivetran/fivetran.py
+++ b/metadata-ingestion/src/datahub/ingestion/source/fivetran/fivetran.py
@@ -7,6 +7,7 @@ from datahub.api.entities.dataprocess.dataprocess_instance import (
     DataProcessInstance,
     InstanceRunResult,
 )
+from datahub.emitter.mcp import MetadataChangeProposalWrapper
 from datahub.ingestion.api.common import PipelineContext
 from datahub.ingestion.api.decorators import (
     SourceCapability,
@@ -248,13 +249,17 @@ class FivetranSource(StatefulIngestionSourceBase):
 
         # Map Fivetran's connector entity with Datahub's datajob entity
         datajob = self._generate_datajob_from_connector(connector)
-        for mcp in datajob.generate_mcp(materialize_iolets=True):
-            if mcp.entityType == "dataset" and isinstance(mcp.aspect, StatusClass):
-                # While we "materialize" the referenced datasets, we don't want them
-                # to be tracked by stateful ingestion.
-                yield mcp.as_workunit(is_primary_source=False)
-            else:
-                yield mcp.as_workunit()
+        for mcp in datajob.generate_mcp(materialize_iolets=False):
+            yield mcp.as_workunit()
+
+        # Materialize the upstream referenced datasets.
+        # We assume that the downstreams are materialized by other ingestion sources.
+        for iolet in datajob.inlets:
+            # We don't want these to be tracked by stateful ingestion.
+            yield MetadataChangeProposalWrapper(
+                entityUrn=str(iolet),
+                aspect=StatusClass(removed=False),
+            ).as_workunit(is_primary_source=False)
 
         # Map Fivetran's job/sync history entity with Datahub's data process entity
         for job in connector.jobs:
diff --git a/metadata-ingestion/tests/integration/fivetran/fivetran_golden.json b/metadata-ingestion/tests/integration/fivetran/fivetran_golden.json
index a72c960a72..b8f05fa6e9 100644
--- a/metadata-ingestion/tests/integration/fivetran/fivetran_golden.json
+++ b/metadata-ingestion/tests/integration/fivetran/fivetran_golden.json
@@ -178,38 +178,6 @@
         "lastRunId": "no-run-id-provided"
     }
 },
-{
-    "entityType": "dataset",
-    "entityUrn": "urn:li:dataset:(urn:li:dataPlatform:snowflake,test_database.postgres_public.employee,PROD)",
-    "changeType": "UPSERT",
-    "aspectName": "status",
-    "aspect": {
-        "json": {
-            "removed": false
-        }
-    },
-    "systemMetadata": {
-        "lastObserved": 1654621200000,
-        "runId": "powerbi-test",
-        "lastRunId": "no-run-id-provided"
-    }
-},
-{
-    "entityType": "dataset",
-    "entityUrn": "urn:li:dataset:(urn:li:dataPlatform:snowflake,test_database.postgres_public.company,PROD)",
-    "changeType": "UPSERT",
-    "aspectName": "status",
-    "aspect": {
-        "json": {
-            "removed": false
-        }
-    },
-    "systemMetadata": {
-        "lastObserved": 1654621200000,
-        "runId": "powerbi-test",
-        "lastRunId": "no-run-id-provided"
-    }
-},
 {
     "entityType": "dataJob",
     "entityUrn": "urn:li:dataJob:(urn:li:dataFlow:(fivetran,calendar_elected,PROD),calendar_elected)",