diff --git a/src/binder/bind/bind_export_database.cpp b/src/binder/bind/bind_export_database.cpp
index b8bd885385..052c3e5888 100644
--- a/src/binder/bind/bind_export_database.cpp
+++ b/src/binder/bind/bind_export_database.cpp
@@ -3,7 +3,6 @@
 #include "catalog/catalog_entry/node_table_catalog_entry.h"
 #include "catalog/catalog_entry/rel_table_catalog_entry.h"
 #include "common/exception/binder.h"
-#include "common/file_system/virtual_file_system.h"
 #include "common/string_utils.h"
 #include "main/client_context.h"
 #include "parser/parser.h"
@@ -93,12 +92,6 @@ std::unique_ptr<BoundStatement> Binder::bindExportDatabaseClause(const Statement
     if (fileType != FileType::CSV && parsedOptions.size() != 0) {
         throw BinderException{"Only export to csv can have options."};
     }
-    auto fs = clientContext->getVFSUnsafe();
-    if (!fs->fileOrPathExists(boundFilePath)) {
-        fs->createDir(boundFilePath);
-    } else {
-        throw BinderException(stringFormat("Directory {} already exists.", boundFilePath));
-    }
     return std::make_unique<BoundExportDatabase>(
         boundFilePath, fileType, std::move(exportData), std::move(parsedOptions));
 }
diff --git a/src/processor/map/map_port_db.cpp b/src/processor/map/map_port_db.cpp
index 83909ec25a..9a9aec8f8e 100644
--- a/src/processor/map/map_port_db.cpp
+++ b/src/processor/map/map_port_db.cpp
@@ -1,3 +1,4 @@
+#include "common/file_system/virtual_file_system.h"
 #include "planner/operator/persistent/logical_export_db.h"
 #include "planner/operator/persistent/logical_import_db.h"
 #include "processor/operator/persistent/export_db.h"
@@ -20,6 +21,17 @@ std::unique_ptr<PhysicalOperator> PlanMapper::mapExportDatabase(
         auto childPhysicalOperator = mapOperator(childCopyTo.get());
         children.push_back(std::move(childPhysicalOperator));
     }
+    // Ideally we should create directory inside operator but ExportDatabase is executed before
+    // CopyTo which requires the directory to exist. So we create directory in mapper inside.
+    auto fs = clientContext->getVFSUnsafe();
+    auto boundFileInfo = exportDatabase->getBoundFileInfo();
+    KU_ASSERT(boundFileInfo->filePaths.size() == 1);
+    auto filePath = boundFileInfo->filePaths[0];
+    if (!fs->fileOrPathExists(filePath)) {
+        fs->createDir(filePath);
+    } else {
+        throw RuntimeException(stringFormat("Directory {} already exists.", filePath));
+    }
     std::unique_ptr<ResultSetDescriptor> resultSetDescriptor;
     return std::make_unique<ExportDB>(exportDatabase->getBoundFileInfo()->copy(), getOperatorID(),
         exportDatabase->getExpressionsForPrinting(), std::move(children));
diff --git a/test/main/prepare_test.cpp b/test/main/prepare_test.cpp
index 3aa3902d45..5a38ddafb5 100644
--- a/test/main/prepare_test.cpp
+++ b/test/main/prepare_test.cpp
@@ -234,3 +234,10 @@ TEST_F(ApiTest, issueTest4) {
     checkTuple(result->getNext().get(), "-123456789\n");
     ASSERT_FALSE(result->hasNext());
 }
+
+TEST_F(ApiTest, PrepareExport) {
+    auto newDBPath = databasePath + "/newdb";
+    auto preparedStatement = conn->prepare("EXPORT DATABASE '" + newDBPath + '\'');
+    auto result = conn->execute(preparedStatement.get());
+    ASSERT_TRUE(result->isSuccess());
+}
diff --git a/test/test_files/copy/export_import_db.test b/test/test_files/copy/export_import_db.test
index 23b2d1275c..86a97d9aa7 100644
--- a/test/test_files/copy/export_import_db.test
+++ b/test/test_files/copy/export_import_db.test
@@ -41,7 +41,7 @@
 50
 -STATEMENT Export Database "${KUZU_EXPORT_DB_DIRECTORY}_case2/demo-db2" (format='csv', header=true)
 ---- error
-Binder exception: Directory ${KUZU_EXPORT_DB_DIRECTORY}_case2/demo-db2 already exists.
+Runtime exception: Directory ${KUZU_EXPORT_DB_DIRECTORY}_case2/demo-db2 already exists.
 
 -CASE ExportImportDatabaseWithPARQUET
 -STATEMENT Export Database "${KUZU_EXPORT_DB_DIRECTORY}_case4/demo-db3" (format='parquet')