diff --git a/packages/cli/src/config/schema.ts b/packages/cli/src/config/schema.ts
index 3a2c3a8ee4842..fca700fc7890d 100644
--- a/packages/cli/src/config/schema.ts
+++ b/packages/cli/src/config/schema.ts
@@ -1143,12 +1143,6 @@ export const schema = {
 					default: 'https://ph.n8n.io',
 					env: 'N8N_DIAGNOSTICS_POSTHOG_API_HOST',
 				},
-				disableSessionRecording: {
-					doc: 'Disable posthog session recording',
-					format: Boolean,
-					default: true,
-					env: 'N8N_DIAGNOSTICS_POSTHOG_DISABLE_RECORDING',
-				},
 			},
 			sentry: {
 				dsn: {
diff --git a/packages/cli/src/services/frontend.service.ts b/packages/cli/src/services/frontend.service.ts
index 7849884d1a5b1..8e815c9d2ada6 100644
--- a/packages/cli/src/services/frontend.service.ts
+++ b/packages/cli/src/services/frontend.service.ts
@@ -115,9 +115,7 @@ export class FrontendService {
 				apiHost: config.getEnv('diagnostics.config.posthog.apiHost'),
 				apiKey: config.getEnv('diagnostics.config.posthog.apiKey'),
 				autocapture: false,
-				disableSessionRecording: config.getEnv(
-					'diagnostics.config.posthog.disableSessionRecording',
-				),
+				disableSessionRecording: config.getEnv('deployment.type') !== 'cloud',
 				debug: config.getEnv('logs.level') === 'debug',
 			},
 			personalizationSurveyEnabled: