diff --git a/metadata-ingestion/src/datahub/ingestion/run/pipeline.py b/metadata-ingestion/src/datahub/ingestion/run/pipeline.py
index 72626372758cd..e5e77724867b4 100644
--- a/metadata-ingestion/src/datahub/ingestion/run/pipeline.py
+++ b/metadata-ingestion/src/datahub/ingestion/run/pipeline.py
@@ -88,7 +88,7 @@ def datahub_api_should_use_rest_sink_as_default(
         cls, v: Optional[DatahubClientConfig], values: Dict[str, Any], **kwargs: Any
     ) -> Optional[DatahubClientConfig]:
         if v is None:
-            if "sink" in values and "type" in values["sink"]:
+            if "sink" in values and hasattr(values["sink"], "type"):
                 sink_type = values["sink"].type
                 if sink_type == "datahub-rest":
                     sink_config = values["sink"].config
diff --git a/metadata-ingestion/tests/unit/test_pipeline.py b/metadata-ingestion/tests/unit/test_pipeline.py
index eb1061384cfaf..827adc8686ce6 100644
--- a/metadata-ingestion/tests/unit/test_pipeline.py
+++ b/metadata-ingestion/tests/unit/test_pipeline.py
@@ -44,16 +44,20 @@ def test_configure(self, mock_sink, mock_source):
         mock_sink.assert_called_once()
 
     @freeze_time(FROZEN_TIME)
-    @patch("datahub.emitter.rest_emitter.DatahubRestEmitter.test_connection")
-    @patch("datahub.ingestion.source.kafka.KafkaSource.get_workunits", autospec=True)
-    def test_configure_without_sink(self, mock_source, mock_test_connection):
-
-        mock_test_connection.return_value = {"noCode": True}
+    @patch(
+        "datahub.emitter.rest_emitter.DatahubRestEmitter.test_connection",
+        return_value={"noCode": True},
+    )
+    @patch(
+        "datahub.ingestion.graph.client.DataHubGraph.get_config",
+        return_value={"noCode": True},
+    )
+    def test_configure_without_sink(self, mock_emitter, mock_graph):
         pipeline = Pipeline.create(
             {
                 "source": {
-                    "type": "kafka",
-                    "config": {"connection": {"bootstrap": "localhost:9092"}},
+                    "type": "file",
+                    "config": {"filename": "test_file.json"},
                 },
             }
         )
@@ -65,6 +69,67 @@ def test_configure_without_sink(self, mock_source, mock_test_connection):
             "token": "",
         }
 
+    @freeze_time(FROZEN_TIME)
+    @patch(
+        "datahub.emitter.rest_emitter.DatahubRestEmitter.test_connection",
+        return_value={"noCode": True},
+    )
+    @patch(
+        "datahub.ingestion.graph.client.DataHubGraph.get_config",
+        return_value={"noCode": True},
+    )
+    def test_configure_with_rest_sink_initializes_graph(
+        self, mock_source, mock_test_connection
+    ):
+        pipeline = Pipeline.create(
+            {
+                "source": {
+                    "type": "file",
+                    "config": {"filename": "test_events.json"},
+                },
+                "sink": {
+                    "type": "datahub-rest",
+                    "config": {
+                        "server": "http://somehost.someplace.some:8080",
+                        "token": "foo",
+                    },
+                },
+            }
+        )
+        # assert that the default sink config is for a DatahubRestSink
+        assert isinstance(pipeline.config.sink, DynamicTypedConfig)
+        assert pipeline.config.sink.type == "datahub-rest"
+        assert pipeline.config.sink.config == {
+            "server": "http://somehost.someplace.some:8080",
+            "token": "foo",
+        }
+        assert pipeline.ctx.graph is not None, "DataHubGraph should be initialized"
+        assert pipeline.ctx.graph.config.server == pipeline.config.sink.config["server"]
+        assert pipeline.ctx.graph.config.token == pipeline.config.sink.config["token"]
+
+    @freeze_time(FROZEN_TIME)
+    @patch("datahub.ingestion.source.kafka.KafkaSource.get_workunits", autospec=True)
+    def test_configure_with_file_sink_does_not_init_graph(self, mock_source):
+        pipeline = Pipeline.create(
+            {
+                "source": {
+                    "type": "kafka",
+                    "config": {"connection": {"bootstrap": "localhost:9092"}},
+                },
+                "sink": {
+                    "type": "file",
+                    "config": {
+                        "filename": "test.json",
+                    },
+                },
+            }
+        )
+        # assert that the default sink config is for a DatahubRestSink
+        assert isinstance(pipeline.config.sink, DynamicTypedConfig)
+        assert pipeline.config.sink.type == "file"
+        assert pipeline.config.sink.config == {"filename": "test.json"}
+        assert pipeline.ctx.graph is None, "DataHubGraph should not be initialized"
+
     @freeze_time(FROZEN_TIME)
     def test_run_including_fake_transformation(self):
         pipeline = Pipeline.create(