diff --git a/flytepropeller/pkg/compiler/validators/typing.go b/flytepropeller/pkg/compiler/validators/typing.go
index 0d941f795d..9f9c1321c7 100644
--- a/flytepropeller/pkg/compiler/validators/typing.go
+++ b/flytepropeller/pkg/compiler/validators/typing.go
@@ -97,13 +97,12 @@ type schemaTypeChecker struct {
 // Schemas are more complex types in the Flyte ecosystem. A schema is considered castable in the following
 // cases.
 //
-//    1. The downstream schema has no column types specified.  In such a case, it accepts all schema input since it is
-//       generic.
+//  1. The downstream schema has no column types specified.  In such a case, it accepts all schema input since it is
+//     generic.
 //
-//    2. The downstream schema has a subset of the upstream columns and they match perfectly.
-//
-//    3. The upstream type can be Schema type or structured dataset type
+//  2. The downstream schema has a subset of the upstream columns and they match perfectly.
 //
+//  3. The upstream type can be Schema type or structured dataset type
 func (t schemaTypeChecker) CastsFrom(upstreamType *flyte.LiteralType) bool {
 	schemaType := upstreamType.GetSchema()
 	structuredDatasetType := upstreamType.GetStructuredDatasetType()
@@ -130,13 +129,12 @@ type structuredDatasetChecker struct {
 // CastsFrom for Structured dataset are more complex types in the Flyte ecosystem. A structured dataset is considered
 // castable in the following cases:
 //
-//    1. The downstream structured dataset has no column types specified.  In such a case, it accepts all structured dataset input since it is
-//       generic.
-//
-//    2. The downstream structured dataset has a subset of the upstream structured dataset columns and they match perfectly.
+//  1. The downstream structured dataset has no column types specified.  In such a case, it accepts all structured dataset input since it is
+//     generic.
 //
-//    3. The upstream type can be Schema type or structured dataset type
+//  2. The downstream structured dataset has a subset of the upstream structured dataset columns and they match perfectly.
 //
+//  3. The upstream type can be Schema type or structured dataset type
 func (t structuredDatasetChecker) CastsFrom(upstreamType *flyte.LiteralType) bool {
 	// structured datasets are nullable
 	if isNoneType(upstreamType) {
@@ -154,9 +152,6 @@ func (t structuredDatasetChecker) CastsFrom(upstreamType *flyte.LiteralType) boo
 		}
 		return structuredDatasetCastFromSchema(schemaType, t.literalType.GetStructuredDatasetType())
 	}
-	if !strings.EqualFold(structuredDatasetType.Format, t.literalType.GetStructuredDatasetType().Format) {
-		return false
-	}
 	return structuredDatasetCastFromStructuredDataset(structuredDatasetType, t.literalType.GetStructuredDatasetType())
 }
 
@@ -226,6 +221,11 @@ func (t unionTypeChecker) CastsFrom(upstreamType *flyte.LiteralType) bool {
 
 // Upstream (structuredDatasetType) -> downstream (structuredDatasetType)
 func structuredDatasetCastFromStructuredDataset(upstream *flyte.StructuredDatasetType, downstream *flyte.StructuredDatasetType) bool {
+	// Skip the format check here when format is empty. https://github.com/flyteorg/flyte/issues/2864
+	if len(upstream.Format) != 0 && len(downstream.Format) != 0 && !strings.EqualFold(upstream.Format, downstream.Format) {
+		return false
+	}
+
 	if len(upstream.Columns) == 0 || len(downstream.Columns) == 0 {
 		return true
 	}
diff --git a/flytepropeller/pkg/compiler/validators/typing_test.go b/flytepropeller/pkg/compiler/validators/typing_test.go
index 132ee0ecdd..a4b6a7a3a7 100644
--- a/flytepropeller/pkg/compiler/validators/typing_test.go
+++ b/flytepropeller/pkg/compiler/validators/typing_test.go
@@ -690,6 +690,14 @@ func TestSchemaCasting(t *testing.T) {
 }
 
 func TestStructuredDatasetCasting(t *testing.T) {
+	emptyStructuredDataset := &core.LiteralType{
+		Type: &core.LiteralType_StructuredDatasetType{
+			StructuredDatasetType: &core.StructuredDatasetType{
+				Columns: []*core.StructuredDatasetType_DatasetColumn{},
+				Format:  "",
+			},
+		},
+	}
 	genericStructuredDataset := &core.LiteralType{
 		Type: &core.LiteralType_StructuredDatasetType{
 			StructuredDatasetType: &core.StructuredDatasetType{
@@ -819,6 +827,16 @@ func TestStructuredDatasetCasting(t *testing.T) {
 		assert.False(t, castable, "StructuredDataset(a=Float) should not be castable to StructuredDataset(a=Integer, b=Collection)")
 	})
 
+	t.Run("GenericToEmptyFormat", func(t *testing.T) {
+		castable := AreTypesCastable(genericStructuredDataset, emptyStructuredDataset)
+		assert.True(t, castable, "StructuredDataset(format='Parquet') should be castable to StructuredDataset()")
+	})
+
+	t.Run("EmptyFormatToGeneric", func(t *testing.T) {
+		castable := AreTypesCastable(genericStructuredDataset, emptyStructuredDataset)
+		assert.True(t, castable, "StructuredDataset() should be castable to StructuredDataset(format='Parquet')")
+	})
+
 	t.Run("StructuredDatasetsAreNullable", func(t *testing.T) {
 		castable := AreTypesCastable(
 			&core.LiteralType{