diff --git a/bootstrap/helpers/shared.php b/bootstrap/helpers/shared.php
index ee1e4fe2b..a12d6b02d 100644
--- a/bootstrap/helpers/shared.php
+++ b/bootstrap/helpers/shared.php
@@ -343,6 +343,15 @@ function send_user_an_email(MailMessage $mail, string $email, ?string $cc = null
         );
     }
 }
+function isTestEmailEnabled($notifiable)
+{
+    if (data_get($notifiable, 'use_instance_email_settings') && isInstanceAdmin()) {
+        return true;
+    } else if (data_get($notifiable, 'smtp_enabled') || data_get($notifiable, 'resend_enabled') && auth()->user()->isAdminFromSession()) {
+        return true;
+    }
+    return false;
+}
 function isEmailEnabled($notifiable)
 {
     return data_get($notifiable, 'smtp_enabled') || data_get($notifiable, 'resend_enabled') || data_get($notifiable, 'use_instance_email_settings');
diff --git a/config/sentry.php b/config/sentry.php
index 39f09d436..25eda3bcb 100644
--- a/config/sentry.php
+++ b/config/sentry.php
@@ -7,7 +7,7 @@ return [
 
     // The release version of your application
     // Example with dynamic git hash: trim(exec('git --git-dir ' . base_path('.git') . ' log --pretty="%h" -n1 HEAD'))
-    'release' => '4.0.0-beta.67',
+    'release' => '4.0.0-beta.68',
     // When left empty or `null` the Laravel environment will be used
     'environment' => config('app.env'),
 
diff --git a/config/version.php b/config/version.php
index d39ecf0c6..9877f77ef 100644
--- a/config/version.php
+++ b/config/version.php
@@ -1,3 +1,3 @@
 <?php
 
-return '4.0.0-beta.67';
+return '4.0.0-beta.68';
diff --git a/database/migrations/2023_09_23_111817_use_instance_email_settings_by_default.php b/database/migrations/2023_09_23_111817_use_instance_email_settings_by_default.php
new file mode 100644
index 000000000..86a77c22d
--- /dev/null
+++ b/database/migrations/2023_09_23_111817_use_instance_email_settings_by_default.php
@@ -0,0 +1,28 @@
+<?php
+
+use Illuminate\Database\Migrations\Migration;
+use Illuminate\Database\Schema\Blueprint;
+use Illuminate\Support\Facades\Schema;
+
+return new class extends Migration
+{
+    /**
+     * Run the migrations.
+     */
+    public function up(): void
+    {
+        Schema::table('teams', function (Blueprint $table) {
+            $table->boolean('use_instance_email_settings')->default(true)->change();
+        });
+    }
+
+    /**
+     * Reverse the migrations.
+     */
+    public function down(): void
+    {
+        Schema::table('teams', function (Blueprint $table) {
+            $table->boolean('use_instance_email_settings')->default(false)->change();
+        });
+    }
+};
diff --git a/resources/views/livewire/notifications/email-settings.blade.php b/resources/views/livewire/notifications/email-settings.blade.php
index 8734b3c60..fb38247b4 100644
--- a/resources/views/livewire/notifications/email-settings.blade.php
+++ b/resources/views/livewire/notifications/email-settings.blade.php
@@ -22,7 +22,8 @@
                 </x-forms.button>
             @endif
             @if (isEmailEnabled($team) &&
-                    auth()->user()->isAdminFromSession())
+                    auth()->user()->isAdminFromSession() &&
+                    isTestEmailEnabled($team))
                 <x-forms.button onclick="sendTestEmail.showModal()"
                     class="text-white normal-case btn btn-xs no-animation btn-primary">
                     Send Test Email
@@ -31,15 +32,22 @@
 
         </div>
     </form>
-    @if ($this->sharedEmailEnabled)
-        <div class="w-64 pb-4">
-            <x-forms.checkbox instantSave="instantSaveInstance" id="team.use_instance_email_settings"
-                label="Use hosted email service" />
-        </div>
+    @if (isCloud())
+        @if ($this->sharedEmailEnabled)
+            <div class="w-64 pb-4">
+                <x-forms.checkbox instantSave="instantSaveInstance" id="team.use_instance_email_settings"
+                    label="Use Hosted Email Service" />
+            </div>
+        @else
+            <div class="pb-4 w-96">
+                <x-forms.checkbox disabled id="team.use_instance_email_settings"
+                    label="Use Hosted Email Service (Pro+ subscription required)" />
+            </div>
+        @endif
     @else
         <div class="pb-4 w-96">
-            <x-forms.checkbox disabled id="team.use_instance_email_settings"
-                label="Use hosted email service (Pro+ subscription required)" />
+            <x-forms.checkbox instantSave="instantSaveInstance" id="team.use_instance_email_settings"
+                label="Use system wide (transactional) email settings" />
         </div>
     @endif
     @if (!$team->use_instance_email_settings)
diff --git a/resources/views/livewire/settings/email.blade.php b/resources/views/livewire/settings/email.blade.php
index 09fa6097c..3758ca373 100644
--- a/resources/views/livewire/settings/email.blade.php
+++ b/resources/views/livewire/settings/email.blade.php
@@ -22,7 +22,9 @@
             <x-forms.button type="submit">
                 Save
             </x-forms.button>
-            @if (isEmailEnabled($settings))
+            @if (isEmailEnabled($settings) &&
+                    auth()->user()->isAdminFromSession() &&
+                    isTestEmailEnabled($settings))
                 <x-forms.button onclick="sendTestEmail.showModal()"
                     class="text-white normal-case btn btn-xs no-animation btn-primary">
                     Send Test Email
diff --git a/versions.json b/versions.json
index d3590f35c..e8c451510 100644
--- a/versions.json
+++ b/versions.json
@@ -4,7 +4,7 @@
             "version": "3.12.36"
         },
         "v4": {
-            "version": "4.0.0-beta.67"
+            "version": "4.0.0-beta.68"
         }
     }
 }