diff --git a/src/main/kotlin/eu/ibagroup/formainframe/explorer/ui/ExplorerPasteProvider.kt b/src/main/kotlin/eu/ibagroup/formainframe/explorer/ui/ExplorerPasteProvider.kt
index 2ee67229..8942af15 100644
--- a/src/main/kotlin/eu/ibagroup/formainframe/explorer/ui/ExplorerPasteProvider.kt
+++ b/src/main/kotlin/eu/ibagroup/formainframe/explorer/ui/ExplorerPasteProvider.kt
@@ -324,7 +324,7 @@ class ExplorerPasteProvider : PasteProvider {
 
       // conflicts end
       // specific configs resolution
-      val ussToPdsWarnings = pasteDestinations
+      val ussOrLocalFileToPdsWarnings = pasteDestinations
         .mapNotNull { destFile ->
           val destAttributes = dataOpsManager.tryToGetAttributes(destFile)
           if (destAttributes !is RemoteDatasetAttributes) null
@@ -332,27 +332,28 @@ class ExplorerPasteProvider : PasteProvider {
             val sourceUssAttributes = sourceFiles
               .filter { sourceFile ->
                 val sourceAttributes = dataOpsManager.tryToGetAttributes(sourceFile)
-                sourceAttributes is RemoteUssAttributes || sourceFile is VirtualFileImpl
+                sourceAttributes is RemoteUssAttributes || sourceFile.isInLocalFileSystem
               }
             sourceUssAttributes.map { Pair(destFile, it) }.ifEmpty { null }
           }
         }
         .flatten()
 
-      if (
-        ussToPdsWarnings.isNotEmpty() &&
-        !showYesNoDialog(
-          "USS File To PDS Placing",
-          "You are about to place USS file to PDS. All lines exceeding the record length will be truncated.",
-          null,
-          "Ok",
-          "Skip This Files",
-          AllIcons.General.WarningDialog
-        )
-      ) {
-        conflictsResolutions.addAll(
-          ussToPdsWarnings.map { ConflictResolution(it.second, it.first).apply { resolveBySkip() } }
-        )
+      if (ussOrLocalFileToPdsWarnings.isNotEmpty()) {
+        val isLocalFilesPresent = ussOrLocalFileToPdsWarnings.find { it.second.isInLocalFileSystem } != null
+        val fileTypesPattern = if (isLocalFilesPresent) "Local Files" else "USS Files"
+        if (!showYesNoDialog(
+            "$fileTypesPattern to PDS Placing",
+            "You are about to place $fileTypesPattern to PDS. All lines exceeding the record length will be truncated.",
+            null,
+            "Ok",
+            "Skip This Files",
+            AllIcons.General.WarningDialog
+          )) {
+          conflictsResolutions.addAll(
+            ussOrLocalFileToPdsWarnings.map { ConflictResolution(it.second, it.first).apply { resolveBySkip() } }
+          )
+        }
       }
       // specific conflicts resolution end
 
diff --git a/src/test/kotlin/eu/ibagroup/formainframe/explorer/ui/ExplorerPasteProviderTestSpec.kt b/src/test/kotlin/eu/ibagroup/formainframe/explorer/ui/ExplorerPasteProviderTestSpec.kt
index 24066234..369d8124 100644
--- a/src/test/kotlin/eu/ibagroup/formainframe/explorer/ui/ExplorerPasteProviderTestSpec.kt
+++ b/src/test/kotlin/eu/ibagroup/formainframe/explorer/ui/ExplorerPasteProviderTestSpec.kt
@@ -299,6 +299,7 @@ class ExplorerPasteProviderTestSpec : WithApplicationShouldSpec({
         every { mockedSourceAttributes.isDirectory } returns false
         every { mockedSourceNodeData.node } returns mockedSourceNode
         every { mockedSourceNodeData.file } returns mockedSourceFile
+        every { mockedSourceFile.isInLocalFileSystem } returns false
         every { mockedSourceNodeData.attributes } returns mockedSourceAttributes
 
         // children of target
@@ -394,6 +395,7 @@ class ExplorerPasteProviderTestSpec : WithApplicationShouldSpec({
         val mockedSourceFile = mockk<MFVirtualFile>()
         val mockedSourceAttributes = mockk<RemoteDatasetAttributes>()
         every { mockedSourceFile.name } returns "TEST.FILE"
+        every { mockedSourceFile.isInLocalFileSystem } returns false
         every { mockedSourceAttributes.name } returns "TEST.FILE"
         every { mockedSourceAttributes.isPastePossible } returns false
         every { mockedSourceAttributes.isDirectory } returns false
@@ -1251,6 +1253,7 @@ class ExplorerPasteProviderTestSpec : WithApplicationShouldSpec({
           every { mockedSourceFile.name } returns fileName
           every { mockedSourceFile.isDirectory } returns isDirectory
           every { mockedSourceFile.parent } returns parent
+          every { mockedSourceFile.isInLocalFileSystem } returns false
 
           val mockedSourceAttributes = if (sourceAttributes != null) {
             sourceAttributes