diff --git a/src/codegen/sdk/codebase/codebase_context.py b/src/codegen/sdk/codebase/codebase_context.py
index 92d441e2f..6e361ef1e 100644
--- a/src/codegen/sdk/codebase/codebase_context.py
+++ b/src/codegen/sdk/codebase/codebase_context.py
@@ -224,7 +224,9 @@ def build_graph(self, repo_operator: RepoOperator) -> None:
 
         # =====[ Add all files to the graph in parallel ]=====
         syncs = defaultdict(lambda: [])
-        if not self.config.disable_file_parse:
+        if self.config.disable_file_parse:
+            logger.warning("WARNING: File parsing is disabled!")
+        else:
             for filepath, _ in repo_operator.iter_files(subdirs=self.projects[0].subdirectories, extensions=self.extensions, ignore_list=GLOBAL_FILE_IGNORE_LIST):
                 syncs[SyncType.ADD].append(self.to_absolute(filepath))
         logger.info(f"> Parsing {len(syncs[SyncType.ADD])} files in {self.projects[0].subdirectories or 'ALL'} subdirectories with {self.extensions} extensions")
@@ -266,7 +268,9 @@ def apply_diffs(self, diff_list: list[DiffLite]) -> None:
             else:
                 logger.warning(f"Unhandled diff change type: {diff.change_type}")
         by_sync_type = defaultdict(lambda: [])
-        if not self.config.disable_file_parse:
+        if self.config.disable_file_parse:
+            logger.warning("WARNING: File parsing is disabled!")
+        else:
             for filepath, sync_type in files_to_sync.items():
                 if self.get_file(filepath) is None:
                     if sync_type is SyncType.DELETE:
diff --git a/src/codegen/sdk/core/codebase.py b/src/codegen/sdk/core/codebase.py
index f5b853a6e..9d6eaf2fd 100644
--- a/src/codegen/sdk/core/codebase.py
+++ b/src/codegen/sdk/core/codebase.py
@@ -498,7 +498,7 @@ def create_file(self, filepath: str, content: str = "", sync: bool = True) -> TS
 
         file_exts = self.ctx.extensions
         # Create file as source file if it has a registered extension
-        if any(filepath.endswith(ext) for ext in file_exts):
+        if any(filepath.endswith(ext) for ext in file_exts) and not self.ctx.config.disable_file_parse:
             file_cls = self.ctx.node_classes.file_cls
             file = file_cls.from_content(filepath, content, self.ctx, sync=sync)
             if file is None: