diff --git a/airbyte-cdk/python/airbyte_cdk/sources/declarative/parsers/manifest_component_transformer.py b/airbyte-cdk/python/airbyte_cdk/sources/declarative/parsers/manifest_component_transformer.py
index f4f7694ad3ba..7b8b221c68df 100644
--- a/airbyte-cdk/python/airbyte_cdk/sources/declarative/parsers/manifest_component_transformer.py
+++ b/airbyte-cdk/python/airbyte_cdk/sources/declarative/parsers/manifest_component_transformer.py
@@ -103,7 +103,11 @@ def propagate_types_and_parameters(
                 propagated_component["type"] = found_type
 
         # When there is no resolved type, we're not processing a component (likely a regular object) and don't need to propagate parameters
-        if "type" not in propagated_component:
+        # When the type refers to a json schema, we're not processing a component as well. This check is currently imperfect as there could
+        # be json_schema are not objects but we believe this is not likely in our case because:
+        # * records are Mapping so objects hence SchemaLoader root should be an object
+        # * connection_specification is a Mapping
+        if "type" not in propagated_component or self._is_json_schema_object(propagated_component):
             return propagated_component
 
         # Combines parameters defined at the current level with parameters from parent components. Parameters at the current
@@ -140,3 +144,7 @@ def propagate_types_and_parameters(
         if current_parameters:
             propagated_component[PARAMETERS_STR] = current_parameters
         return propagated_component
+
+    @staticmethod
+    def _is_json_schema_object(propagated_component: Mapping[str, Any]) -> bool:
+        return propagated_component.get("type") == "object"
diff --git a/airbyte-cdk/python/unit_tests/sources/declarative/parsers/test_manifest_component_transformer.py b/airbyte-cdk/python/unit_tests/sources/declarative/parsers/test_manifest_component_transformer.py
index 18cf013d6127..63efac6688d5 100644
--- a/airbyte-cdk/python/unit_tests/sources/declarative/parsers/test_manifest_component_transformer.py
+++ b/airbyte-cdk/python/unit_tests/sources/declarative/parsers/test_manifest_component_transformer.py
@@ -347,3 +347,60 @@ def test_only_propagate_parameters_to_components():
     actual_component = transformer.propagate_types_and_parameters("", component, {})
 
     assert actual_component == expected_component
+
+
+def test_do_not_propagate_parameters_on_json_schema_object():
+    component = {
+        "type": "DeclarativeStream",
+        "streams": [
+            {
+                "type": "DeclarativeStream",
+                "schema_loader": {
+                    "type": "InlineSchemaLoader",
+                    "schema": {
+                        "type": "object",
+                        "$schema": "http://json-schema.org/schema#",
+                        "properties": {"id": {"type": "string"}},
+                    },
+                },
+                "$parameters": {
+                    "name": "roasters",
+                    "primary_key": "id",
+                },
+            }
+        ],
+    }
+
+    expected_component = {
+        "type": "DeclarativeStream",
+        "streams": [
+            {
+                "type": "DeclarativeStream",
+                "name": "roasters",
+                "primary_key": "id",
+                "schema_loader": {
+                    "type": "InlineSchemaLoader",
+                    "name": "roasters",
+                    "primary_key": "id",
+                    "schema": {
+                        "type": "object",
+                        "$schema": "http://json-schema.org/schema#",
+                        "properties": {"id": {"type": "string"}},
+                    },
+                    "$parameters": {
+                        "name": "roasters",
+                        "primary_key": "id",
+                    },
+                },
+                "$parameters": {
+                    "name": "roasters",
+                    "primary_key": "id",
+                },
+            }
+        ],
+    }
+
+    transformer = ManifestComponentTransformer()
+    actual_component = transformer.propagate_types_and_parameters("", component, {})
+
+    assert actual_component == expected_component