diff --git a/test/e2e/helpers.js b/test/e2e/helpers.js
index b604a83cdefc..f1769d77593a 100644
--- a/test/e2e/helpers.js
+++ b/test/e2e/helpers.js
@@ -520,15 +520,11 @@ const onboardingCompleteWalletCreationWithOptOut = async (driver) => {
   );
   await driver.clickElement('[id="basic-configuration-checkbox"]');
   await driver.clickElement({ text: 'Turn off', tag: 'button' });
-  await driver.clickElement(
-    '[data-testid="profile-sync-toggle"] .toggle-button',
-  );
-  await driver.clickElement('[data-testid="submit-button"]');
 
   await Promise.all(
     (
       await driver.findClickableElements(
-        '.toggle-button.toggle-button--on:not([data-testid="basic-functionality-toggle"] .toggle-button):not([data-testid="profile-sync-toggle"] .toggle-button)',
+        '.toggle-button.toggle-button--on:not([data-testid="basic-functionality-toggle"] .toggle-button)',
       )
     ).map((toggle) => toggle.click()),
   );
diff --git a/ui/components/multichain/global-menu/global-menu.js b/ui/components/multichain/global-menu/global-menu.js
index 7ba0de804919..3841151dd7aa 100644
--- a/ui/components/multichain/global-menu/global-menu.js
+++ b/ui/components/multichain/global-menu/global-menu.js
@@ -60,6 +60,7 @@ import {
   ///: BEGIN:ONLY_INCLUDE_IF(snaps)
   getAnySnapUpdateAvailable,
   getNotifySnaps,
+  getUseExternalServices,
   ///: END:ONLY_INCLUDE_IF
 } from '../../../selectors';
 ///: BEGIN:ONLY_INCLUDE_IF(snaps)
@@ -81,6 +82,7 @@ export const GlobalMenu = ({ closeMenu, anchorElement, isOpen }) => {
   const t = useI18nContext();
   const dispatch = useDispatch();
   const trackEvent = useContext(MetaMetricsContext);
+  const basicFunctionality = useSelector(getUseExternalServices);
 
   const history = useHistory();
 
@@ -189,30 +191,31 @@ export const GlobalMenu = ({ closeMenu, anchorElement, isOpen }) => {
       borderStyle={BorderStyle.none}
       position={PopoverPosition.BottomEnd}
     >
-      <>
-        <MenuItem
-          iconName={IconName.Notification}
-          onClick={() => handleNotificationsClick()}
-        >
-          <Box
-            display={Display.Flex}
-            flexDirection={FlexDirection.Row}
-            alignItems={AlignItems.center}
-            justifyContent={JustifyContent.spaceBetween}
+      {basicFunctionality && (
+        <>
+          <MenuItem
+            iconName={IconName.Notification}
+            onClick={() => handleNotificationsClick()}
           >
-            {t('notifications')}
-            {notificationsCount === 0 && !isMetamaskNotificationFeatureSeen && (
-              <NewFeatureTag />
-            )}
-            <NotificationsTagCounter />
-          </Box>
-        </MenuItem>
-        <Box
-          borderColor={BorderColor.borderMuted}
-          width={BlockSize.Full}
-          style={{ height: '1px', borderBottomWidth: 0 }}
-        ></Box>
-      </>
+            <Box
+              display={Display.Flex}
+              flexDirection={FlexDirection.Row}
+              alignItems={AlignItems.center}
+              justifyContent={JustifyContent.spaceBetween}
+            >
+              {t('notifications')}
+              {notificationsCount === 0 &&
+                !isMetamaskNotificationFeatureSeen && <NewFeatureTag />}
+              <NotificationsTagCounter />
+            </Box>
+          </MenuItem>
+          <Box
+            borderColor={BorderColor.borderMuted}
+            width={BlockSize.Full}
+            style={{ height: '1px', borderBottomWidth: 0 }}
+          ></Box>
+        </>
+      )}
       {account && (
         <>
           <AccountDetailsMenuItem
diff --git a/ui/contexts/metamask-notifications/metamask-notifications.tsx b/ui/contexts/metamask-notifications/metamask-notifications.tsx
index f09126316764..ed40b9d7c55a 100644
--- a/ui/contexts/metamask-notifications/metamask-notifications.tsx
+++ b/ui/contexts/metamask-notifications/metamask-notifications.tsx
@@ -4,6 +4,7 @@ import { useListNotifications } from '../../hooks/metamask-notifications/useNoti
 import { selectIsProfileSyncingEnabled } from '../../selectors/metamask-notifications/profile-syncing';
 import { selectIsMetamaskNotificationsEnabled } from '../../selectors/metamask-notifications/metamask-notifications';
 import type { Notification } from '../../../app/scripts/controllers/metamask-notifications/types/notification/notification';
+import { getUseExternalServices } from '../../selectors';
 
 type MetamaskNotificationsContextType = {
   listNotifications: () => void;
@@ -31,6 +32,7 @@ export const MetamaskNotificationsProvider: React.FC = ({ children }) => {
   const isNotificationsEnabled = useSelector(
     selectIsMetamaskNotificationsEnabled,
   );
+  const basicFunctionality = useSelector(getUseExternalServices);
 
   const { listNotifications, notificationsData, isLoading, error } =
     useListNotifications();
@@ -41,10 +43,10 @@ export const MetamaskNotificationsProvider: React.FC = ({ children }) => {
   );
 
   useEffect(() => {
-    if (shouldFetchNotifications) {
+    if (basicFunctionality && shouldFetchNotifications) {
       listNotifications();
     }
-  }, [shouldFetchNotifications, listNotifications]);
+  }, [shouldFetchNotifications, listNotifications, basicFunctionality]);
 
   return (
     <MetamaskNotificationsContext.Provider
diff --git a/ui/hooks/metamask-notifications/useProfileSyncing.ts b/ui/hooks/metamask-notifications/useProfileSyncing.ts
index 931dd21cabde..4a30bf7978fd 100644
--- a/ui/hooks/metamask-notifications/useProfileSyncing.ts
+++ b/ui/hooks/metamask-notifications/useProfileSyncing.ts
@@ -46,7 +46,6 @@ export function useEnableProfileSyncing(): {
         e instanceof Error ? e.message : JSON.stringify(e ?? '');
       log.error(errorMessage);
       setError(errorMessage);
-      throw e;
     }
   }, [dispatch]);
 
@@ -79,7 +78,6 @@ export function useDisableProfileSyncing(): {
         e instanceof Error ? e.message : JSON.stringify(e ?? '');
       setError(errorMessage);
       log.error(errorMessage);
-      throw e;
     } finally {
       dispatch(hideLoadingIndication());
     }
@@ -88,27 +86,29 @@ export function useDisableProfileSyncing(): {
   return { disableProfileSyncing, error };
 }
 
-export function useSetIsProfileSyncingEnabled(state: boolean): {
-  setIsProfileSyncingEnabled: () => Promise<void>;
+export function useSetIsProfileSyncingEnabled(): {
+  setIsProfileSyncingEnabled: (state: boolean) => Promise<void>;
   error: string | null;
 } {
   const dispatch = useDispatch();
 
   const [error, setError] = useState<string | null>(null);
 
-  const setIsProfileSyncingEnabled = useCallback(async () => {
-    setError(null);
-
-    try {
-      await dispatch(setIsProfileSyncingEnabledAction(state));
-    } catch (e) {
-      const errorMessage =
-        e instanceof Error ? e.message : JSON.stringify(e ?? '');
-      setError(errorMessage);
-      log.error(errorMessage);
-      throw e;
-    }
-  }, [dispatch]);
+  const setIsProfileSyncingEnabled = useCallback(
+    async (state: boolean) => {
+      setError(null);
+
+      try {
+        await dispatch(setIsProfileSyncingEnabledAction(state));
+      } catch (e) {
+        const errorMessage =
+          e instanceof Error ? e.message : JSON.stringify(e ?? '');
+        setError(errorMessage);
+        log.error(errorMessage);
+      }
+    },
+    [dispatch],
+  );
 
   return { setIsProfileSyncingEnabled, error };
 }
diff --git a/ui/hooks/metamask-notifications/useSwitchNotifications.test.tsx b/ui/hooks/metamask-notifications/useSwitchNotifications.test.tsx
index d0b78f43ced9..b67c2ea80cef 100644
--- a/ui/hooks/metamask-notifications/useSwitchNotifications.test.tsx
+++ b/ui/hooks/metamask-notifications/useSwitchNotifications.test.tsx
@@ -68,8 +68,8 @@ describe('useSwitchNotifications', () => {
       ),
     });
 
-    act(() => {
-      result.current.onChange(true);
+    await act(async () => {
+      await result.current.onChange(true);
     });
 
     expect(actions.setFeatureAnnouncementsEnabled).toHaveBeenCalledWith(true);
@@ -86,8 +86,8 @@ describe('useSwitchNotifications', () => {
       ),
     });
 
-    act(() => {
-      result.current.switchAccountNotifications(['0x123']);
+    await act(async () => {
+      await result.current.switchAccountNotifications(['0x123']);
     });
 
     expect(actions.checkAccountsPresence).toHaveBeenCalledWith(['0x123']);
@@ -105,8 +105,8 @@ describe('useSwitchNotifications', () => {
     });
 
     // Test enabling notifications
-    act(() => {
-      result.current.onChange(['0x123'], true);
+    await act(async () => {
+      await result.current.onChange(['0x123'], true);
     });
 
     expect(actions.updateOnChainTriggersByAccount).toHaveBeenCalledWith([
@@ -114,8 +114,8 @@ describe('useSwitchNotifications', () => {
     ]);
 
     // Test disabling notifications
-    act(() => {
-      result.current.onChange(['0x123'], false);
+    await act(async () => {
+      await result.current.onChange(['0x123'], false);
     });
 
     expect(actions.deleteOnChainTriggersByAccount).toHaveBeenCalledWith([
diff --git a/ui/pages/onboarding-flow/privacy-settings/privacy-settings.js b/ui/pages/onboarding-flow/privacy-settings/privacy-settings.js
index 3f5e0d6dc5ba..30cc64553fcc 100644
--- a/ui/pages/onboarding-flow/privacy-settings/privacy-settings.js
+++ b/ui/pages/onboarding-flow/privacy-settings/privacy-settings.js
@@ -1,4 +1,4 @@
-import React, { useContext, useState } from 'react';
+import React, { useContext, useState, useEffect } from 'react';
 import { useDispatch, useSelector } from 'react-redux';
 import { useHistory } from 'react-router-dom';
 import { addUrlProtocolPrefix } from '../../../../app/scripts/lib/util';
@@ -65,18 +65,41 @@ import {
 import IncomingTransactionToggle from '../../../components/app/incoming-trasaction-toggle/incoming-transaction-toggle';
 import { Setting } from './setting';
 
-export default function PrivacySettings() {
-  const t = useI18nContext();
-  const dispatch = useDispatch();
-  const history = useHistory();
-
+/**
+ * Profile Syncing Setting props
+ *
+ * @param {boolean} basicFunctionalityOnboarding
+ * @returns props that are used for the profile syncing toggle.
+ */
+function useProfileSyncingProps(basicFunctionalityOnboarding) {
   const { setIsProfileSyncingEnabled, error: setIsProfileSyncingEnabledError } =
     useSetIsProfileSyncingEnabled();
-  const { enableProfileSyncing, error: disableProfileSyncingError } =
+  const { enableProfileSyncing, error: enableProfileSyncingError } =
     useEnableProfileSyncing();
 
   const profileSyncingError =
-    setIsProfileSyncingEnabledError || disableProfileSyncingError;
+    setIsProfileSyncingEnabledError || enableProfileSyncingError;
+
+  const isProfileSyncingEnabled = useSelector(selectIsProfileSyncingEnabled);
+
+  // Effect - toggle profile syncing on/off based on basic functionality toggle
+  useEffect(() => {
+    const changeProfileSync = basicFunctionalityOnboarding === true;
+    setIsProfileSyncingEnabled(changeProfileSync);
+  }, [basicFunctionalityOnboarding, setIsProfileSyncingEnabled]);
+
+  return {
+    setIsProfileSyncingEnabled,
+    enableProfileSyncing,
+    profileSyncingError,
+    isProfileSyncingEnabled,
+  };
+}
+
+export default function PrivacySettings() {
+  const t = useI18nContext();
+  const dispatch = useDispatch();
+  const history = useHistory();
 
   const defaultState = useSelector((state) => state.metamask);
   const {
@@ -91,7 +114,6 @@ export default function PrivacySettings() {
     useTransactionSimulations,
   } = defaultState;
   const petnamesEnabled = useSelector(getPetnamesEnabled);
-  const isProfileSyncingEnabled = useSelector(selectIsProfileSyncingEnabled);
   const participateInMetaMetrics = useSelector(selectParticipateInMetaMetrics);
 
   const [usePhishingDetection, setUsePhishingDetection] =
@@ -124,6 +146,10 @@ export default function PrivacySettings() {
     getExternalServicesOnboardingToggleState,
   );
 
+  const profileSyncingProps = useProfileSyncingProps(
+    externalServicesOnboardingToggleState,
+  );
+
   const handleSubmit = () => {
     dispatch(toggleExternalServices(externalServicesOnboardingToggleState));
     dispatch(setUsePhishDetect(usePhishingDetection));
@@ -138,10 +164,16 @@ export default function PrivacySettings() {
     setUseTransactionSimulations(isTransactionSimulationsEnabled);
     dispatch(setPetnamesEnabled(turnOnPetnames));
 
+    // Profile Syncing Setup
     if (externalServicesOnboardingToggleState) {
-      if (!isProfileSyncingEnabled && participateInMetaMetrics) {
+      if (
+        profileSyncingProps.isProfileSyncingEnabled ||
+        participateInMetaMetrics
+      ) {
         dispatch(performSignIn());
       }
+    } else {
+      profileSyncingProps.setIsProfileSyncingEnabled(false);
     }
 
     if (ipfsURL && !ipfsError) {
@@ -160,7 +192,7 @@ export default function PrivacySettings() {
     });
 
     const eventName =
-      isProfileSyncingEnabled || participateInMetaMetrics
+      profileSyncingProps.isProfileSyncingEnabled || participateInMetaMetrics
         ? MetaMetricsEventName.OnboardingWalletAdvancedSettingsWithAuthenticating
         : MetaMetricsEventName.OnboardingWalletAdvancedSettingsWithoutAuthenticating;
 
@@ -168,7 +200,7 @@ export default function PrivacySettings() {
       category: MetaMetricsEventCategory.Onboarding,
       event: eventName,
       properties: {
-        isProfileSyncingEnabled,
+        isProfileSyncingEnabled: profileSyncingProps.isProfileSyncingEnabled,
         participateInMetaMetrics,
       },
     });
@@ -177,12 +209,12 @@ export default function PrivacySettings() {
   };
 
   const handleUseProfileSync = async () => {
-    if (isProfileSyncingEnabled) {
+    if (profileSyncingProps.isProfileSyncingEnabled) {
       dispatch(
         showModal({
           name: 'CONFIRM_TURN_OFF_PROFILE_SYNCING',
           turnOffProfileSyncing: () => {
-            setIsProfileSyncingEnabled(false);
+            profileSyncingProps.setIsProfileSyncingEnabled(false);
             trackEvent({
               category: MetaMetricsEventCategory.Onboarding,
               event:
@@ -195,7 +227,7 @@ export default function PrivacySettings() {
         }),
       );
     } else {
-      await enableProfileSyncing();
+      profileSyncingProps.setIsProfileSyncingEnabled(true);
     }
   };
 
@@ -260,7 +292,8 @@ export default function PrivacySettings() {
 
           <Setting
             dataTestId="profile-sync-toggle"
-            value={isProfileSyncingEnabled}
+            disabled={!externalServicesOnboardingToggleState}
+            value={profileSyncingProps.isProfileSyncingEnabled}
             setValue={handleUseProfileSync}
             title={t('profileSync')}
             description={t('profileSyncDescription', [
@@ -274,7 +307,7 @@ export default function PrivacySettings() {
               </a>,
             ])}
           />
-          {profileSyncingError && (
+          {profileSyncingProps.profileSyncingError && (
             <Box paddingBottom={4}>
               <Text
                 as="p"
diff --git a/ui/pages/onboarding-flow/privacy-settings/setting.js b/ui/pages/onboarding-flow/privacy-settings/setting.js
index 804e16cad7b0..31ee059d1126 100644
--- a/ui/pages/onboarding-flow/privacy-settings/setting.js
+++ b/ui/pages/onboarding-flow/privacy-settings/setting.js
@@ -17,6 +17,7 @@ export const Setting = ({
   description,
   showToggle = true,
   dataTestId,
+  disabled = false,
 }) => {
   const t = useI18nContext();
 
@@ -43,6 +44,7 @@ export const Setting = ({
             onToggle={(val) => setValue(!val)}
             offLabel={t('off')}
             onLabel={t('on')}
+            disabled={disabled}
           />
         </div>
       ) : null}
@@ -57,4 +59,5 @@ Setting.propTypes = {
   description: PropTypes.oneOfType([PropTypes.object, PropTypes.string]),
   showToggle: PropTypes.bool,
   dataTestId: PropTypes.string,
+  disabled: PropTypes.bool,
 };
diff --git a/ui/pages/settings/security-tab/__snapshots__/security-tab.test.js.snap b/ui/pages/settings/security-tab/__snapshots__/security-tab.test.js.snap
index 08552fa9d90c..5d0a1853360b 100644
--- a/ui/pages/settings/security-tab/__snapshots__/security-tab.test.js.snap
+++ b/ui/pages/settings/security-tab/__snapshots__/security-tab.test.js.snap
@@ -241,7 +241,7 @@ exports[`Security Tab should match snapshot 1`] = `
             class="settings-page__content-item-col"
           >
             <label
-              class="toggle-button toggle-button--off"
+              class="toggle-button toggle-button--off toggle-button--disabled"
               tabindex="0"
             >
               <div
diff --git a/ui/pages/settings/security-tab/profile-sync-toggle/profile-sync-toggle.test.tsx b/ui/pages/settings/security-tab/profile-sync-toggle/profile-sync-toggle.test.tsx
index d2eae5a0e1cd..6bc9bed95cb1 100644
--- a/ui/pages/settings/security-tab/profile-sync-toggle/profile-sync-toggle.test.tsx
+++ b/ui/pages/settings/security-tab/profile-sync-toggle/profile-sync-toggle.test.tsx
@@ -1,59 +1,63 @@
 import React from 'react';
-import { Provider } from 'react-redux';
+import * as Redux from 'react-redux';
 import configureMockStore from 'redux-mock-store';
 import { render, fireEvent } from '@testing-library/react';
 import * as ProfileSyncingHook from '../../../../hooks/metamask-notifications/useProfileSyncing';
 import ProfileSyncToggle from './profile-sync-toggle';
 
-let mockUseSelectorReturnValue = false;
-
-jest.mock('react-redux', () => ({
-  ...jest.requireActual('react-redux'),
-  useSelector: jest.fn(() => mockUseSelectorReturnValue),
-}));
-
 const mockStore = configureMockStore();
-const initialState = {
+const initialStore = () => ({
   metamask: {
     isSignedIn: false,
+    useExternalServices: true,
+    isProfileSyncingEnabled: true,
+    participateInMetaMetrics: false,
+    isProfileSyncingUpdateLoading: false,
   },
-};
-const store = mockStore(initialState);
+});
 
 describe('ProfileSyncToggle', () => {
-  const enableProfileSyncingMock = jest.fn(() => Promise.resolve());
-  const showModal = jest.fn();
-
-  beforeEach(() => {
-    jest.spyOn(ProfileSyncingHook, 'useEnableProfileSyncing').mockReturnValue({
-      enableProfileSyncing: enableProfileSyncingMock,
-      error: null,
-    });
-    jest.spyOn(store, 'dispatch').mockImplementation(showModal);
-  });
-
-  afterEach(() => {
-    jest.clearAllMocks();
-  });
-
   it('renders correctly', () => {
-    mockUseSelectorReturnValue = false;
     const { getByTestId } = render(
-      <Provider store={store}>
+      <Redux.Provider store={mockStore(initialStore())}>
         <ProfileSyncToggle />
-      </Provider>,
+      </Redux.Provider>,
     );
     expect(getByTestId('profileSyncToggle')).toBeInTheDocument();
   });
 
   it('calls enableProfileSyncing when toggle is turned on', () => {
-    mockUseSelectorReturnValue = false;
+    const store = initialStore();
+    store.metamask.isProfileSyncingEnabled = false; // We want to test enabling this toggle
+
+    const { enableProfileSyncingMock } = arrangeMocks();
+
     const { getByTestId } = render(
-      <Provider store={store}>
+      <Redux.Provider store={mockStore(store)}>
         <ProfileSyncToggle />
-      </Provider>,
+      </Redux.Provider>,
     );
     fireEvent.click(getByTestId('toggleButton'));
     expect(enableProfileSyncingMock).toHaveBeenCalled();
   });
+
+  function arrangeMocks() {
+    const enableProfileSyncingMock = jest.fn(() => Promise.resolve());
+    const disableProfileSyncingMock = jest.fn(() => Promise.resolve());
+
+    jest.spyOn(ProfileSyncingHook, 'useEnableProfileSyncing').mockReturnValue({
+      enableProfileSyncing: enableProfileSyncingMock,
+      error: null,
+    });
+
+    jest.spyOn(ProfileSyncingHook, 'useDisableProfileSyncing').mockReturnValue({
+      disableProfileSyncing: disableProfileSyncingMock,
+      error: null,
+    });
+
+    return {
+      enableProfileSyncingMock,
+      disableProfileSyncingMock,
+    };
+  }
 });
diff --git a/ui/pages/settings/security-tab/profile-sync-toggle/profile-sync-toggle.tsx b/ui/pages/settings/security-tab/profile-sync-toggle/profile-sync-toggle.tsx
index c8f4759bd712..a0661635797d 100644
--- a/ui/pages/settings/security-tab/profile-sync-toggle/profile-sync-toggle.tsx
+++ b/ui/pages/settings/security-tab/profile-sync-toggle/profile-sync-toggle.tsx
@@ -1,10 +1,11 @@
-import React, { useContext } from 'react';
+import React, { useContext, useEffect } from 'react';
 import { useDispatch, useSelector } from 'react-redux';
 import { useI18nContext } from '../../../../hooks/useI18nContext';
 import { MetaMetricsContext } from '../../../../contexts/metametrics';
 import {
   useEnableProfileSyncing,
   useDisableProfileSyncing,
+  useSetIsProfileSyncingEnabled,
 } from '../../../../hooks/metamask-notifications/useProfileSyncing';
 import {
   selectIsProfileSyncingEnabled,
@@ -26,6 +27,23 @@ import {
   TextVariant,
 } from '../../../../helpers/constants/design-system';
 import Preloader from '../../../../components/ui/icon/preloader/preloader-icon.component';
+import { getUseExternalServices } from '../../../../selectors';
+
+function ProfileSyncBasicFunctionalitySetting() {
+  const basicFunctionality: boolean = useSelector(getUseExternalServices);
+  const { setIsProfileSyncingEnabled } = useSetIsProfileSyncingEnabled();
+
+  // Effect - toggle profile syncing off when basic functionality is off
+  useEffect(() => {
+    if (basicFunctionality === false) {
+      setIsProfileSyncingEnabled(false);
+    }
+  }, [basicFunctionality, setIsProfileSyncingEnabled]);
+
+  return {
+    isProfileSyncDisabled: !basicFunctionality,
+  };
+}
 
 const ProfileSyncToggle = () => {
   const t = useI18nContext();
@@ -36,6 +54,8 @@ const ProfileSyncToggle = () => {
   const { disableProfileSyncing, error: disableProfileSyncingError } =
     useDisableProfileSyncing();
 
+  const { isProfileSyncDisabled } = ProfileSyncBasicFunctionalitySetting();
+
   const error = enableProfileSyncingError || disableProfileSyncingError;
 
   const isProfileSyncingEnabled = useSelector(selectIsProfileSyncingEnabled);
@@ -113,6 +133,7 @@ const ProfileSyncToggle = () => {
         {!isProfileSyncingUpdateLoading && (
           <div className="settings-page__content-item-col">
             <ToggleButton
+              disabled={isProfileSyncDisabled}
               value={isProfileSyncingEnabled}
               onToggle={handleUseProfileSync}
               offLabel={t('off')}