diff --git a/app/e2e/server/beforeCreateRoom.js b/app/e2e/server/beforeCreateRoom.js
index ce3b21ad693..a8c6a893351 100644
--- a/app/e2e/server/beforeCreateRoom.js
+++ b/app/e2e/server/beforeCreateRoom.js
@@ -3,9 +3,8 @@ import { settings } from '../../settings/server';
 
 callbacks.add('beforeCreateRoom', ({ type, extraData }) => {
 	if (
-		settings.get('E2E_Enabled') && ((type === 'd' && settings.get('E2E_Enabled_Default_DirectRooms'))
-		|| (type === 'p' && settings.get('E2E_Enabled_Default_PrivateRooms')))
-	) {
+		settings.get('E2E_Enable') && ((type === 'd' && settings.get('E2E_Enabled_Default_DirectRooms'))
+		|| (type === 'p' && settings.get('E2E_Enabled_Default_PrivateRooms')))) {
 		extraData.encrypted = extraData.encrypted ?? true;
 	}
 });
diff --git a/app/e2e/server/settings.ts b/app/e2e/server/settings.ts
index 3b3aad9e6dc..20c624fed9b 100644
--- a/app/e2e/server/settings.ts
+++ b/app/e2e/server/settings.ts
@@ -11,11 +11,13 @@ settingsRegistry.addGroup('E2E Encryption', function() {
 
 	this.add('E2E_Enabled_Default_DirectRooms', false, {
 		type: 'boolean',
+		public: true,
 		enableQuery: { _id: 'E2E_Enable', value: true },
 	});
 
 	this.add('E2E_Enabled_Default_PrivateRooms', false, {
 		type: 'boolean',
+		public: true,
 		enableQuery: { _id: 'E2E_Enable', value: true },
 	});
 });
diff --git a/tests/end-to-end/api/03-groups.js b/tests/end-to-end/api/03-groups.js
index b20d253fb17..5cc6f531aa4 100644
--- a/tests/end-to-end/api/03-groups.js
+++ b/tests/end-to-end/api/03-groups.js
@@ -3,7 +3,7 @@ import { expect } from 'chai';
 import { getCredentials, api, request, credentials, group, apiPrivateChannelName } from '../../data/api-data.js';
 import { adminUsername, password } from '../../data/user.js';
 import { createUser, login } from '../../data/users.helper';
-import { updatePermission } from '../../data/permissions.helper';
+import { updatePermission, updateSetting } from '../../data/permissions.helper';
 import { createRoom } from '../../data/rooms.helper';
 import { createIntegration, removeIntegration } from '../../data/integration.helper';
 
@@ -43,7 +43,49 @@ describe('[Groups]', function() {
 			})
 			.end(done);
 	});
+	describe('/groups.create (encrypted)', () => {
+		it('should create a new encrypted group', async () => {
+			await request.post(api('groups.create'))
+				.set(credentials)
+				.send({
+					name: `encrypted-${ apiPrivateChannelName }`,
+					extraData: {
+						encrypted: true,
+					},
+				})
+				.expect('Content-Type', 'application/json')
+				.expect(200)
+				.expect((res) => {
+					expect(res.body).to.have.property('success', true);
+					expect(res.body).to.have.nested.property('group.name', `encrypted-${ apiPrivateChannelName }`);
+					expect(res.body).to.have.nested.property('group.t', 'p');
+					expect(res.body).to.have.nested.property('group.msgs', 0);
+					expect(res.body).to.have.nested.property('group.encrypted', true);
+				});
+		});
 
+		it('should create the encrypted room by default', async () => {
+			await updateSetting('E2E_Enabled_Default_PrivateRooms', true);
+			try {
+				await request.post(api('groups.create'))
+					.set(credentials)
+					.send({
+						name: `default-encrypted-${ apiPrivateChannelName }`,
+					})
+					.expect('Content-Type', 'application/json')
+					.expect(200)
+					.expect((res) => {
+						expect(res.body).to.have.property('success', true);
+						expect(res.body).to.have.nested.property('group.name', `default-encrypted-${ apiPrivateChannelName }`);
+						expect(res.body).to.have.nested.property('group.t', 'p');
+						expect(res.body).to.have.nested.property('group.msgs', 0);
+						expect(res.body).to.have.nested.property('group.encrypted', true);
+					});
+			} finally {
+				await updateSetting('E2E_Enabled_Default_PrivateRooms', false);
+			}
+		});
+	});
 	describe('[/groups.info]', () => {
 		let testGroup = {};
 		let groupMessage = {};
@@ -177,7 +219,6 @@ describe('[Groups]', function() {
 
 	it('/groups.invite', async () => {
 		const roomInfo = await getRoomInfo(group._id);
-
 		return request.post(api('groups.invite'))
 			.set(credentials)
 			.send({