diff --git a/apps/files_sharing/tests/ApiTest.php b/apps/files_sharing/tests/ApiTest.php
index 27b79bee7dfa9..e417bc06f6ca8 100644
--- a/apps/files_sharing/tests/ApiTest.php
+++ b/apps/files_sharing/tests/ApiTest.php
@@ -275,6 +275,8 @@ public function testCreateShareLinkPublicUpload(array $appConfig, int $permissio
 	public function testEnforceLinkPassword(): void {
 		$password = md5(time());
 		$config = Server::get(IConfig::class);
+		$appConfig = Server::get(IAppConfig::class);
+		$appConfig->setValueBool('core', ConfigLexicon::SHARE_LINK_PASSWORD_DEFAULT, true);
 		$config->setAppValue('core', 'shareapi_enforce_links_password', 'yes');
 
 		$ocs = $this->createOCS(self::TEST_FILES_SHARING_API_USER1);
@@ -320,6 +322,7 @@ public function testEnforceLinkPassword(): void {
 		$ocs->cleanup();
 
 		$config->setAppValue('core', 'shareapi_enforce_links_password', 'no');
+		$appConfig->setValueBool('core', ConfigLexicon::SHARE_LINK_PASSWORD_DEFAULT, false);
 		$this->addToAssertionCount(1);
 	}
 
diff --git a/apps/files_sharing/tests/CapabilitiesTest.php b/apps/files_sharing/tests/CapabilitiesTest.php
index 99b1712e38e9f..fe47dd420d03a 100644
--- a/apps/files_sharing/tests/CapabilitiesTest.php
+++ b/apps/files_sharing/tests/CapabilitiesTest.php
@@ -151,6 +151,7 @@ public function testLinkPassword(): void {
 			['core', 'shareapi_enforce_links_password_excluded_groups', '', ''],
 		];
 		$typedMap = [
+			['core', 'shareapi_enable_link_password_by_default', true],
 			['core', 'shareapi_enforce_links_password', true],
 		];
 		$result = $this->getResults($map, $typedMap);
@@ -159,6 +160,22 @@ public function testLinkPassword(): void {
 		$this->assertTrue($result['public']['password']['enforced']);
 	}
 
+	public function testLinkPasswordEnforcedWithoutDefaultPrompt(): void {
+		$map = [
+			['core', 'shareapi_enabled', 'yes', 'yes'],
+			['core', 'shareapi_allow_links', 'yes', 'yes'],
+			['core', 'shareapi_enforce_links_password_excluded_groups', '', ''],
+		];
+		$typedMap = [
+			['core', 'shareapi_enable_link_password_by_default', false],
+			['core', 'shareapi_enforce_links_password', true],
+		];
+		$result = $this->getResults($map, $typedMap);
+		$this->assertArrayHasKey('password', $result['public']);
+		$this->assertArrayHasKey('enforced', $result['public']['password']);
+		$this->assertFalse($result['public']['password']['enforced']);
+	}
+
 	public function testLinkNoPassword(): void {
 		$map = [
 			['core', 'shareapi_enabled', 'yes', 'yes'],
diff --git a/apps/settings/lib/Settings/Admin/Sharing.php b/apps/settings/lib/Settings/Admin/Sharing.php
index e560fce0b2bc6..3deb750451b92 100644
--- a/apps/settings/lib/Settings/Admin/Sharing.php
+++ b/apps/settings/lib/Settings/Admin/Sharing.php
@@ -60,7 +60,7 @@ public function getForm() {
 			'restrictUserEnumerationFullMatchDisplayname' => $this->shareManager->matchDisplayName(),
 			'restrictUserEnumerationFullMatchEmail' => $this->shareManager->matchEmail(),
 			'restrictUserEnumerationFullMatchIgnoreSecondDN' => $this->shareManager->ignoreSecondDisplayName(),
-			'enforceLinksPassword' => $this->shareManager->shareApiLinkEnforcePassword(false),
+			'enforceLinksPassword' => $this->appConfig->getValueBool('core', ConfigLexicon::SHARE_LINK_PASSWORD_ENFORCED),
 			'enforceLinksPasswordExcludedGroups' => json_decode($excludedPasswordGroups) ?? [],
 			'enforceLinksPasswordExcludedGroupsEnabled' => $this->config->getSystemValueBool('sharing.allow_disabled_password_enforcement_groups', false),
 			'onlyShareWithGroupMembers' => $this->shareManager->shareWithGroupMembersOnly(),
diff --git a/apps/settings/src/components/AdminSettingsSharingForm.vue b/apps/settings/src/components/AdminSettingsSharingForm.vue
index 89fa03525adfa..01914ad716028 100644
--- a/apps/settings/src/components/AdminSettingsSharingForm.vue
+++ b/apps/settings/src/components/AdminSettingsSharingForm.vue
@@ -59,15 +59,20 @@
 				<NcCheckboxRadioSwitch v-model="settings.enableLinkPasswordByDefault">
 					{{ t('settings', 'Always ask for a password') }}
 				</NcCheckboxRadioSwitch>
-				<NcCheckboxRadioSwitch v-model="settings.enforceLinksPassword" :disabled="!settings.enableLinkPasswordByDefault">
+				<NcCheckboxRadioSwitch
+					v-show="settings.enableLinkPasswordByDefault"
+					v-model="settings.enforceLinksPassword">
 					{{ t('settings', 'Enforce password protection') }}
 				</NcCheckboxRadioSwitch>
-				<label v-if="settings.enforceLinksPasswordExcludedGroupsEnabled" class="sharing__labeled-entry sharing__input">
+				<label
+					v-if="settings.enforceLinksPasswordExcludedGroupsEnabled"
+					v-show="settings.enableLinkPasswordByDefault"
+					class="sharing__labeled-entry sharing__input">
 					<span>{{ t('settings', 'Exclude groups from password requirements') }}</span>
 					<NcSettingsSelectGroup
 						v-model="settings.enforceLinksPasswordExcludedGroups"
 						style="width: 100%"
-						:disabled="!settings.enforceLinksPassword || !settings.enableLinkPasswordByDefault" />
+						:disabled="!settings.enforceLinksPassword" />
 				</label>
 				<label class="sharing__labeled-entry sharing__input">
 					<span>{{ t('settings', 'Exclude groups from creating link shares') }}</span>
diff --git a/apps/settings/tests/Settings/Admin/SharingTest.php b/apps/settings/tests/Settings/Admin/SharingTest.php
index df4af61f4b9ad..40f06e193d98c 100644
--- a/apps/settings/tests/Settings/Admin/SharingTest.php
+++ b/apps/settings/tests/Settings/Admin/SharingTest.php
@@ -62,6 +62,7 @@ public function testGetFormWithoutExcludedGroups(): void {
 			->willReturnMap([
 				['core', 'shareapi_allow_federation_on_public_shares', true],
 				['core', 'shareapi_enable_link_password_by_default', true],
+				['core', 'shareapi_enforce_links_password', false],
 				['core', 'shareapi_default_expire_date', false],
 				['core', 'shareapi_enforce_expire_date', false],
 			]);
@@ -163,6 +164,16 @@ public function testGetFormWithoutExcludedGroups(): void {
 	}
 
 	public function testGetFormWithExcludedGroups(): void {
+		$this->appConfig
+			->method('getValueBool')
+			->willReturnMap([
+				['core', 'shareapi_allow_federation_on_public_shares', true],
+				['core', 'shareapi_enable_link_password_by_default', true],
+				['core', 'shareapi_enforce_links_password', false],
+				['core', 'shareapi_default_expire_date', false],
+				['core', 'shareapi_enforce_expire_date', false],
+			]);
+
 		$this->config
 			->method('getAppValue')
 			->willReturnMap([
diff --git a/lib/private/Share20/Manager.php b/lib/private/Share20/Manager.php
index 4939e42911037..609f5f4e33c1f 100644
--- a/lib/private/Share20/Manager.php
+++ b/lib/private/Share20/Manager.php
@@ -1641,6 +1641,11 @@ protected function userCanCreateLinkShares(IUser $user): bool {
 
 	#[Override]
 	public function shareApiLinkEnforcePassword(bool $checkGroupMembership = true): bool {
+		// Password enforcement requires the default password prompt to be enabled.
+		if (!$this->appConfig->getValueBool('core', ConfigLexicon::SHARE_LINK_PASSWORD_DEFAULT)) {
+			return false;
+		}
+
 		$excludedGroups = $this->config->getAppValue('core', 'shareapi_enforce_links_password_excluded_groups', '');
 		if ($excludedGroups !== '' && $checkGroupMembership) {
 			$excludedGroups = json_decode($excludedGroups);
diff --git a/tests/Core/Sharing/Property/PasswordSharePropertyTypeTest.php b/tests/Core/Sharing/Property/PasswordSharePropertyTypeTest.php
index 63282e18e85f5..a80d38f009a88 100644
--- a/tests/Core/Sharing/Property/PasswordSharePropertyTypeTest.php
+++ b/tests/Core/Sharing/Property/PasswordSharePropertyTypeTest.php
@@ -88,10 +88,12 @@ public function testGetDefaultValue(): void {
 		);
 
 		$appConfig = Server::get(IAppConfig::class);
+		$appConfig->deleteKey(Application::APP_ID, ConfigLexicon::SHARE_LINK_PASSWORD_DEFAULT);
 		$appConfig->deleteKey(Application::APP_ID, ConfigLexicon::SHARE_LINK_PASSWORD_ENFORCED);
 
 		$this->assertNull($this->propertyType->getDefaultValue($share));
 
+		$appConfig->setValueBool(Application::APP_ID, ConfigLexicon::SHARE_LINK_PASSWORD_DEFAULT, true);
 		$appConfig->setValueBool(Application::APP_ID, ConfigLexicon::SHARE_LINK_PASSWORD_ENFORCED, true);
 
 		$value = $this->propertyType->getDefaultValue($share);
@@ -100,6 +102,7 @@ public function testGetDefaultValue(): void {
 		$this->assertGreaterThan(1, strlen((string)$value));
 		$this->assertTrue($this->propertyType->validateValue(Server::get(IFactory::class), $share, $value));
 
+		$appConfig->deleteKey(Application::APP_ID, ConfigLexicon::SHARE_LINK_PASSWORD_DEFAULT);
 		$appConfig->deleteKey(Application::APP_ID, ConfigLexicon::SHARE_LINK_PASSWORD_ENFORCED);
 	}
 
diff --git a/tests/lib/Share20/ManagerTest.php b/tests/lib/Share20/ManagerTest.php
index e287faf12459c..252f3f6f05e57 100644
--- a/tests/lib/Share20/ManagerTest.php
+++ b/tests/lib/Share20/ManagerTest.php
@@ -849,18 +849,38 @@ public function testVerifyPasswordNullButEnforced(): void {
 		]);
 
 		$this->appConfig->method('getValueBool')->willReturnMap([
+			['core', 'shareapi_enable_link_password_by_default', true],
 			['core', 'shareapi_enforce_links_password', true],
 		]);
 
 		self::invokePrivate($this->manager, 'verifyPassword', [null]);
 	}
 
+	public function testVerifyPasswordEnforcedWithoutDefaultPrompt(): void {
+		$this->config->method('getAppValue')->willReturnMap([
+			['core', 'shareapi_enforce_links_password_excluded_groups', '', ''],
+		]);
+
+		$this->appConfig->method('getValueBool')->willReturnMap([
+			['core', 'shareapi_enable_link_password_by_default', false],
+			['core', 'shareapi_enforce_links_password', true],
+		]);
+
+		$result = self::invokePrivate($this->manager, 'verifyPassword', [null]);
+		$this->assertNull($result);
+	}
+
 	public function testVerifyPasswordNotEnforcedGroup(): void {
 		$this->config->method('getAppValue')->willReturnMap([
 			['core', 'shareapi_enforce_links_password_excluded_groups', '', '["admin"]'],
 			['core', 'shareapi_enforce_links_password', 'no', 'yes'],
 		]);
 
+		$this->appConfig->method('getValueBool')->willReturnMap([
+			['core', 'shareapi_enable_link_password_by_default', true],
+			['core', 'shareapi_enforce_links_password', true],
+		]);
+
 		// Create admin user
 		$user = $this->createMock(IUser::class);
 		$this->userSession->method('getUser')->willReturn($user);
@@ -876,6 +896,11 @@ public function testVerifyPasswordNotEnforcedMultipleGroups(): void {
 			['core', 'shareapi_enforce_links_password', 'no', 'yes'],
 		]);
 
+		$this->appConfig->method('getValueBool')->willReturnMap([
+			['core', 'shareapi_enable_link_password_by_default', true],
+			['core', 'shareapi_enforce_links_password', true],
+		]);
+
 		// Create admin user
 		$user = $this->createMock(IUser::class);
 		$this->userSession->method('getUser')->willReturn($user);