diff --git a/.changeset/cold-beds-hope.md b/.changeset/cold-beds-hope.md
new file mode 100644
index 00000000000..33fc910e424
--- /dev/null
+++ b/.changeset/cold-beds-hope.md
@@ -0,0 +1,5 @@
+---
+'@rocket.chat/meteor': patch
+---
+
+Fixes an issue not allowing override retention policy in channels
diff --git a/apps/meteor/app/channel-settings/server/methods/saveRoomSettings.ts b/apps/meteor/app/channel-settings/server/methods/saveRoomSettings.ts
index 4f6c0678094..e17faebea38 100644
--- a/apps/meteor/app/channel-settings/server/methods/saveRoomSettings.ts
+++ b/apps/meteor/app/channel-settings/server/methods/saveRoomSettings.ts
@@ -117,14 +117,10 @@ const validators: RoomSettingsValidators = {
 		}
 	},
 	async retentionEnabled({ userId, value, room, rid }) {
-		if (!hasRetentionPolicy(room)) {
-			throw new Meteor.Error('error-action-not-allowed', 'Room does not have retention policy', {
-				method: 'saveRoomSettings',
-				action: 'Editing_room',
-			});
-		}
-
-		if (!(await hasPermissionAsync(userId, 'edit-room-retention-policy', rid)) && value !== room.retention.enabled) {
+		if (
+			!(await hasPermissionAsync(userId, 'edit-room-retention-policy', rid)) &&
+			(!hasRetentionPolicy(room) || value !== room.retention.enabled)
+		) {
 			throw new Meteor.Error('error-action-not-allowed', 'Editing room retention policy is not allowed', {
 				method: 'saveRoomSettings',
 				action: 'Editing_room',
@@ -132,14 +128,10 @@ const validators: RoomSettingsValidators = {
 		}
 	},
 	async retentionMaxAge({ userId, value, room, rid }) {
-		if (!hasRetentionPolicy(room)) {
-			throw new Meteor.Error('error-action-not-allowed', 'Room does not have retention policy', {
-				method: 'saveRoomSettings',
-				action: 'Editing_room',
-			});
-		}
-
-		if (!(await hasPermissionAsync(userId, 'edit-room-retention-policy', rid)) && value !== room.retention.maxAge) {
+		if (
+			!(await hasPermissionAsync(userId, 'edit-room-retention-policy', rid)) &&
+			(!hasRetentionPolicy(room) || value !== room.retention.maxAge)
+		) {
 			throw new Meteor.Error('error-action-not-allowed', 'Editing room retention policy is not allowed', {
 				method: 'saveRoomSettings',
 				action: 'Editing_room',
@@ -147,14 +139,10 @@ const validators: RoomSettingsValidators = {
 		}
 	},
 	async retentionExcludePinned({ userId, value, room, rid }) {
-		if (!hasRetentionPolicy(room)) {
-			throw new Meteor.Error('error-action-not-allowed', 'Room does not have retention policy', {
-				method: 'saveRoomSettings',
-				action: 'Editing_room',
-			});
-		}
-
-		if (!(await hasPermissionAsync(userId, 'edit-room-retention-policy', rid)) && value !== room.retention.excludePinned) {
+		if (
+			!(await hasPermissionAsync(userId, 'edit-room-retention-policy', rid)) &&
+			(!hasRetentionPolicy(room) || value !== room.retention.excludePinned)
+		) {
 			throw new Meteor.Error('error-action-not-allowed', 'Editing room retention policy is not allowed', {
 				method: 'saveRoomSettings',
 				action: 'Editing_room',
@@ -162,14 +150,10 @@ const validators: RoomSettingsValidators = {
 		}
 	},
 	async retentionFilesOnly({ userId, value, room, rid }) {
-		if (!hasRetentionPolicy(room)) {
-			throw new Meteor.Error('error-action-not-allowed', 'Room does not have retention policy', {
-				method: 'saveRoomSettings',
-				action: 'Editing_room',
-			});
-		}
-
-		if (!(await hasPermissionAsync(userId, 'edit-room-retention-policy', rid)) && value !== room.retention.filesOnly) {
+		if (
+			!(await hasPermissionAsync(userId, 'edit-room-retention-policy', rid)) &&
+			(!hasRetentionPolicy(room) || value !== room.retention.filesOnly)
+		) {
 			throw new Meteor.Error('error-action-not-allowed', 'Editing room retention policy is not allowed', {
 				method: 'saveRoomSettings',
 				action: 'Editing_room',
@@ -177,14 +161,10 @@ const validators: RoomSettingsValidators = {
 		}
 	},
 	async retentionIgnoreThreads({ userId, value, room, rid }) {
-		if (!hasRetentionPolicy(room)) {
-			throw new Meteor.Error('error-action-not-allowed', 'Room does not have retention policy', {
-				method: 'saveRoomSettings',
-				action: 'Editing_room',
-			});
-		}
-
-		if (!(await hasPermissionAsync(userId, 'edit-room-retention-policy', rid)) && value !== room.retention.ignoreThreads) {
+		if (
+			!(await hasPermissionAsync(userId, 'edit-room-retention-policy', rid)) &&
+			(!hasRetentionPolicy(room) || value !== room.retention.ignoreThreads)
+		) {
 			throw new Meteor.Error('error-action-not-allowed', 'Editing room retention policy is not allowed', {
 				method: 'saveRoomSettings',
 				action: 'Editing_room',
@@ -469,7 +449,7 @@ export async function saveRoomSettings(
 			rid,
 		});
 
-		if (setting === 'retentionOverrideGlobal') {
+		if (setting === 'retentionOverrideGlobal' && settings.retentionOverrideGlobal === false) {
 			delete settings.retentionMaxAge;
 			delete settings.retentionExcludePinned;
 			delete settings.retentionFilesOnly;
diff --git a/apps/meteor/client/components/InfoPanel/InfoPanel.stories.tsx b/apps/meteor/client/components/InfoPanel/InfoPanel.stories.tsx
index 4e8e44b1f93..39242161ed4 100644
--- a/apps/meteor/client/components/InfoPanel/InfoPanel.stories.tsx
+++ b/apps/meteor/client/components/InfoPanel/InfoPanel.stories.tsx
@@ -52,7 +52,7 @@ export const Default: ComponentStory<typeof InfoPanel> = () => (
 		</InfoPanel.Section>
 
 		<InfoPanel.Section>
-			<RetentionPolicyCallout maxAgeDefault={30} filesOnlyDefault={false} excludePinnedDefault={true} />
+			<RetentionPolicyCallout maxAge={30} filesOnly={false} excludePinned={true} />
 		</InfoPanel.Section>
 	</InfoPanel>
 );
diff --git a/apps/meteor/client/components/InfoPanel/RetentionPolicyCallout.tsx b/apps/meteor/client/components/InfoPanel/RetentionPolicyCallout.tsx
index 27202afa496..06f6ed133dc 100644
--- a/apps/meteor/client/components/InfoPanel/RetentionPolicyCallout.tsx
+++ b/apps/meteor/client/components/InfoPanel/RetentionPolicyCallout.tsx
@@ -4,23 +4,26 @@ import type { FC } from 'react';
 import React from 'react';
 
 import { useFormattedRelativeTime } from '../../hooks/useFormattedRelativeTime';
+import { getMaxAgeInMS } from '../../views/room/hooks/useRetentionPolicy';
 
 type RetentionPolicyCalloutProps = {
-	filesOnlyDefault: boolean;
-	excludePinnedDefault: boolean;
-	maxAgeDefault: number;
+	filesOnly: boolean;
+	excludePinned: boolean;
+	maxAge: number;
 };
 
-const RetentionPolicyCallout: FC<RetentionPolicyCalloutProps> = ({ filesOnlyDefault, excludePinnedDefault, maxAgeDefault }) => {
+const RetentionPolicyCallout: FC<RetentionPolicyCalloutProps> = ({ filesOnly, excludePinned, maxAge }) => {
 	const t = useTranslation();
-	const time = useFormattedRelativeTime(maxAgeDefault);
+	const time = useFormattedRelativeTime(getMaxAgeInMS(maxAge));
 
 	return (
-		<Callout type='warning'>
-			{filesOnlyDefault && excludePinnedDefault && <p>{t('RetentionPolicy_RoomWarning_FilesOnly', { time })}</p>}
-			{filesOnlyDefault && !excludePinnedDefault && <p>{t('RetentionPolicy_RoomWarning_UnpinnedFilesOnly', { time })}</p>}
-			{!filesOnlyDefault && excludePinnedDefault && <p>{t('RetentionPolicy_RoomWarning', { time })}</p>}
-			{!filesOnlyDefault && !excludePinnedDefault && <p>{t('RetentionPolicy_RoomWarning_Unpinned', { time })}</p>}
+		<Callout arial-label={t('Retention_policy_warning_callout')} role='alert' aria-live='polite' type='warning'>
+			<div>
+				{filesOnly && excludePinned && <p>{t('RetentionPolicy_RoomWarning_FilesOnly', { time })}</p>}
+				{filesOnly && !excludePinned && <p>{t('RetentionPolicy_RoomWarning_UnpinnedFilesOnly', { time })}</p>}
+				{!filesOnly && excludePinned && <p>{t('RetentionPolicy_RoomWarning', { time })}</p>}
+				{!filesOnly && !excludePinned && <p>{t('RetentionPolicy_RoomWarning_Unpinned', { time })}</p>}
+			</div>
 		</Callout>
 	);
 };
diff --git a/apps/meteor/client/hooks/useFormatRelativeTime.ts b/apps/meteor/client/hooks/useFormatRelativeTime.ts
deleted file mode 100644
index 5f0a0675cf6..00000000000
--- a/apps/meteor/client/hooks/useFormatRelativeTime.ts
+++ /dev/null
@@ -1,14 +0,0 @@
-import moment from 'moment';
-import { useCallback } from 'react';
-
-export const useFormatRelativeTime = (): ((timeMs: number) => string) =>
-	useCallback((timeMs: number) => {
-		moment.relativeTimeThreshold('s', 60);
-		moment.relativeTimeThreshold('ss', 0);
-		moment.relativeTimeThreshold('m', 60);
-		moment.relativeTimeThreshold('h', 24);
-		moment.relativeTimeThreshold('d', 31);
-		moment.relativeTimeThreshold('M', 12);
-
-		return moment.duration(timeMs).humanize();
-	}, []);
diff --git a/apps/meteor/client/views/room/body/RetentionPolicyWarning.tsx b/apps/meteor/client/views/room/body/RetentionPolicyWarning.tsx
index 6455d391425..87a061c682e 100644
--- a/apps/meteor/client/views/room/body/RetentionPolicyWarning.tsx
+++ b/apps/meteor/client/views/room/body/RetentionPolicyWarning.tsx
@@ -1,9 +1,10 @@
 import { Icon } from '@rocket.chat/fuselage';
 import { useTranslation } from '@rocket.chat/ui-contexts';
 import type { ReactElement } from 'react';
-import React, { useMemo } from 'react';
+import React from 'react';
 
-import { useFormatRelativeTime } from '../../../hooks/useFormatRelativeTime';
+import { useFormattedRelativeTime } from '../../../hooks/useFormattedRelativeTime';
+import { getMaxAgeInMS } from '../hooks/useRetentionPolicy';
 
 type RetentionPolicyWarningProps = {
 	filesOnly: boolean;
@@ -13,13 +14,16 @@ type RetentionPolicyWarningProps = {
 
 const RetentionPolicyWarning = ({ filesOnly, excludePinned, maxAge }: RetentionPolicyWarningProps): ReactElement => {
 	const t = useTranslation();
-
-	const formatRelativeTime = useFormatRelativeTime();
-	const time = useMemo(() => formatRelativeTime(maxAge), [formatRelativeTime, maxAge]);
+	const time = useFormattedRelativeTime(getMaxAgeInMS(maxAge));
 
 	if (filesOnly) {
 		return (
-			<div className='start__purge-warning error-background error-border error-color'>
+			<div
+				aria-label={t('Retention_policy_warning_banner')}
+				role='alert'
+				aria-live='polite'
+				className='start__purge-warning error-background error-border error-color'
+			>
 				<Icon name='warning' size='x20' />{' '}
 				{excludePinned
 					? t('RetentionPolicy_RoomWarning_UnpinnedFilesOnly', { time })
@@ -29,7 +33,12 @@ const RetentionPolicyWarning = ({ filesOnly, excludePinned, maxAge }: RetentionP
 	}
 
 	return (
-		<div className='start__purge-warning error-background error-border error-color'>
+		<div
+			aria-label={t('Retention_policy_warning_banner')}
+			role='alert'
+			aria-live='polite'
+			className='start__purge-warning error-background error-border error-color'
+		>
 			<Icon name='warning' size='x20' />{' '}
 			{excludePinned ? t('RetentionPolicy_RoomWarning_Unpinned', { time }) : t('RetentionPolicy_RoomWarning', { time })}
 		</div>
diff --git a/apps/meteor/client/views/room/body/RoomBody.tsx b/apps/meteor/client/views/room/body/RoomBody.tsx
index 5f63f9f571c..0535b65c6cf 100644
--- a/apps/meteor/client/views/room/body/RoomBody.tsx
+++ b/apps/meteor/client/views/room/body/RoomBody.tsx
@@ -22,6 +22,7 @@ import { useRoomToolbox } from '../contexts/RoomToolboxContext';
 import { useUserCard } from '../contexts/UserCardContext';
 import { useDateScroll } from '../hooks/useDateScroll';
 import { useMessageListNavigation } from '../hooks/useMessageListNavigation';
+import { useRetentionPolicy } from '../hooks/useRetentionPolicy';
 import DropTargetOverlay from './DropTargetOverlay';
 import JumpToRecentMessageButton from './JumpToRecentMessageButton';
 import LeaderBar from './LeaderBar';
@@ -39,7 +40,6 @@ import { useListIsAtBottom } from './hooks/useListIsAtBottom';
 import { useQuoteMessageByUrl } from './hooks/useQuoteMessageByUrl';
 import { useReadMessageWindowEvents } from './hooks/useReadMessageWindowEvents';
 import { useRestoreScrollPosition } from './hooks/useRestoreScrollPosition';
-import { useRetentionPolicy } from './hooks/useRetentionPolicy';
 import { useHandleUnread } from './hooks/useUnreadMessages';
 
 const RoomBody = (): ReactElement => {
@@ -291,7 +291,7 @@ const RoomBody = (): ReactElement => {
 															<li className='load-more'>{isLoadingMoreMessages ? <LoadingMessagesIndicator /> : null}</li>
 														) : (
 															<li className='start color-info-font-color'>
-																{retentionPolicy ? <RetentionPolicyWarning {...retentionPolicy} /> : null}
+																{retentionPolicy?.isActive ? <RetentionPolicyWarning {...retentionPolicy} /> : null}
 																<RoomForeword user={user} room={room} />
 															</li>
 														)}
diff --git a/apps/meteor/client/views/room/contextualBar/Info/EditRoomInfo/EditRoomInfo.tsx b/apps/meteor/client/views/room/contextualBar/Info/EditRoomInfo/EditRoomInfo.tsx
index bc7714da06a..6b8d0777910 100644
--- a/apps/meteor/client/views/room/contextualBar/Info/EditRoomInfo/EditRoomInfo.tsx
+++ b/apps/meteor/client/views/room/contextualBar/Info/EditRoomInfo/EditRoomInfo.tsx
@@ -23,6 +23,7 @@ import {
 import { useEffectEvent, useUniqueId } from '@rocket.chat/fuselage-hooks';
 import type { TranslationKey } from '@rocket.chat/ui-contexts';
 import { useSetting, useTranslation, useToastMessageDispatch, useEndpoint } from '@rocket.chat/ui-contexts';
+import type { ChangeEvent } from 'react';
 import React, { useMemo } from 'react';
 import { useForm, Controller } from 'react-hook-form';
 
@@ -39,6 +40,7 @@ import RawText from '../../../../../components/RawText';
 import RoomAvatarEditor from '../../../../../components/avatar/RoomAvatarEditor';
 import { getDirtyFields } from '../../../../../lib/getDirtyFields';
 import { useArchiveRoom } from '../../../../hooks/roomActions/useArchiveRoom';
+import { useRetentionPolicy } from '../../../hooks/useRetentionPolicy';
 import { useEditRoomInitialValues } from './useEditRoomInitialValues';
 import { useEditRoomPermissions } from './useEditRoomPermissions';
 
@@ -54,6 +56,18 @@ const title = {
 	discussion: 'Edit_discussion' as TranslationKey,
 };
 
+const getRetentionSetting = (roomType: IRoomWithRetentionPolicy['t']): string => {
+	switch (roomType) {
+		case 'd':
+			return 'RetentionPolicy_MaxAge_DMs';
+		case 'p':
+			return 'RetentionPolicy_MaxAge_Groups';
+		case 'c':
+		default:
+			return 'RetentionPolicy_MaxAge_Channels';
+	}
+};
+
 const EditRoomInfo = ({ room, onClickClose, onClickBack }: EditRoomInfoProps) => {
 	const t = useTranslation();
 	const dispatchToastMessage = useToastMessageDispatch();
@@ -61,7 +75,8 @@ const EditRoomInfo = ({ room, onClickClose, onClickBack }: EditRoomInfoProps) =>
 	// eslint-disable-next-line no-nested-ternary
 	const roomType = 'prid' in room ? 'discussion' : room.teamId ? 'team' : 'channel';
 
-	const retentionPolicy = useSetting<boolean>('RetentionPolicy_Enabled');
+	const retentionPolicy = useRetentionPolicy(room);
+	const retentionMaxAgeDefault = useSetting<number>(getRetentionSetting(room.t)) ?? 30;
 	const defaultValues = useEditRoomInitialValues(room);
 	const namesValidation = useSetting('UTF8_Channel_Names_Validation');
 	const allowSpecialNames = useSetting('UI_Allow_room_names_with_special_chars');
@@ -97,7 +112,6 @@ const EditRoomInfo = ({ room, onClickClose, onClickBack }: EditRoomInfoProps) =>
 		joinCodeRequired,
 		hideSysMes,
 		retentionEnabled,
-		retentionMaxAge,
 		retentionOverrideGlobal,
 		roomType: roomTypeP,
 		reactWhenReadOnly,
@@ -128,26 +142,46 @@ const EditRoomInfo = ({ room, onClickClose, onClickBack }: EditRoomInfoProps) =>
 
 	const handleArchive = useArchiveRoom(room);
 
-	const handleUpdateRoomData = useEffectEvent(async ({ hideSysMes, joinCodeRequired, ...formData }) => {
-		const data = getDirtyFields(formData, dirtyFields);
-		delete data.archived;
+	// TODO: add payload validation
+	const handleUpdateRoomData = useEffectEvent(
+		async ({
+			hideSysMes,
+			joinCodeRequired,
+			retentionEnabled,
+			retentionOverrideGlobal,
+			retentionMaxAge,
+			retentionExcludePinned,
+			retentionFilesOnly,
+			...formData
+		}) => {
+			const data = getDirtyFields(formData, dirtyFields);
+			delete data.archived;
 
-		try {
-			await saveAction({
-				rid: room._id,
-				...data,
-				...((data.joinCode || 'joinCodeRequired' in data) && { joinCode: joinCodeRequired ? data.joinCode : '' }),
-				...((data.systemMessages || !hideSysMes) && {
-					systemMessages: hideSysMes && data.systemMessages,
-				}),
-			});
+			try {
+				await saveAction({
+					rid: room._id,
+					...data,
+					...((data.joinCode || 'joinCodeRequired' in data) && { joinCode: joinCodeRequired ? data.joinCode : '' }),
+					...((data.systemMessages || !hideSysMes) && {
+						systemMessages: hideSysMes && data.systemMessages,
+					}),
+					retentionEnabled,
+					retentionOverrideGlobal,
+					...(retentionEnabled &&
+						retentionOverrideGlobal && {
+							retentionMaxAge,
+							retentionExcludePinned,
+							retentionFilesOnly,
+						}),
+				});
 
-			dispatchToastMessage({ type: 'success', message: t('Room_updated_successfully') });
-			onClickClose();
-		} catch (error) {
-			dispatchToastMessage({ type: 'error', message: error });
-		}
-	});
+				dispatchToastMessage({ type: 'success', message: t('Room_updated_successfully') });
+				onClickClose();
+			} catch (error) {
+				dispatchToastMessage({ type: 'error', message: error });
+			}
+		},
+	);
 
 	const handleSave = useEffectEvent((data) =>
 		Promise.all([isDirty && handleUpdateRoomData(data), changeArchiving && handleArchive()].filter(Boolean)),
@@ -431,7 +465,7 @@ const EditRoomInfo = ({ room, onClickClose, onClickBack }: EditRoomInfoProps) =>
 							</Field>
 						)}
 					</FieldGroup>
-					{retentionPolicy && (
+					{retentionPolicy?.enabled && (
 						<Accordion>
 							<Accordion.Item title={t('Prune')}>
 								<FieldGroup>
@@ -468,7 +502,9 @@ const EditRoomInfo = ({ room, onClickClose, onClickBack }: EditRoomInfoProps) =>
 												<RawText>{t('RetentionPolicyRoom_ReadTheDocs')}</RawText>
 											</Callout>
 											<Field>
-												<FieldLabel htmlFor={retentionMaxAgeField}>{t('RetentionPolicyRoom_MaxAge', { max: retentionMaxAge })}</FieldLabel>
+												<FieldLabel htmlFor={retentionMaxAgeField}>
+													{t('RetentionPolicyRoom_MaxAge', { max: retentionMaxAgeDefault })}
+												</FieldLabel>
 												<FieldRow>
 													<Controller
 														control={control}
@@ -477,7 +513,7 @@ const EditRoomInfo = ({ room, onClickClose, onClickBack }: EditRoomInfoProps) =>
 															<NumberInput
 																id={retentionMaxAgeField}
 																{...field}
-																onChange={(currentValue) => onChange(Math.max(1, Number(currentValue)))}
+																onChange={(e: ChangeEvent<HTMLInputElement>) => onChange(Number(e.currentTarget.value))}
 															/>
 														)}
 													/>
diff --git a/apps/meteor/client/views/room/contextualBar/Info/EditRoomInfo/useEditRoomInitialValues.ts b/apps/meteor/client/views/room/contextualBar/Info/EditRoomInfo/useEditRoomInitialValues.ts
index f36802bb9f5..128f6c3c66f 100644
--- a/apps/meteor/client/views/room/contextualBar/Info/EditRoomInfo/useEditRoomInitialValues.ts
+++ b/apps/meteor/client/views/room/contextualBar/Info/EditRoomInfo/useEditRoomInitialValues.ts
@@ -1,29 +1,13 @@
 import type { IRoomWithRetentionPolicy } from '@rocket.chat/core-typings';
-import { useSetting } from '@rocket.chat/ui-contexts';
 import { useMemo } from 'react';
 
 import { roomCoordinator } from '../../../../../lib/rooms/roomCoordinator';
-
-const getPolicyRoomType = (roomType: IRoomWithRetentionPolicy['t']) => {
-	switch (roomType) {
-		case 'c':
-			return 'Channels';
-		case 'p':
-			return 'Groups';
-		case 'd':
-			return 'DMs';
-	}
-};
+import { useRetentionPolicy } from '../../../hooks/useRetentionPolicy';
 
 export const useEditRoomInitialValues = (room: IRoomWithRetentionPolicy) => {
+	const retentionPolicy = useRetentionPolicy(room);
 	const { t, ro, archived, topic, description, announcement, joinCodeRequired, sysMes, encrypted, retention, reactWhenReadOnly } = room;
 
-	const retentionPolicyEnabled = useSetting('RetentionPolicy_Enabled');
-	const maxAgeDefault = useSetting<number>(`RetentionPolicy_MaxAge_${getPolicyRoomType(room.t)}`) || 30;
-	const retentionEnabledDefault = useSetting<boolean>(`RetentionPolicy_AppliesTo${getPolicyRoomType(room.t)}`);
-	const excludePinnedDefault = useSetting('RetentionPolicy_DoNotPrunePinned');
-	const filesOnlyDefault = useSetting('RetentionPolicy_FilesOnly');
-
 	return useMemo(
 		() => ({
 			roomName: t === 'd' && room.usernames ? room.usernames.join(' x ') : roomCoordinator.getRoomName(t, room),
@@ -40,25 +24,21 @@ export const useEditRoomInitialValues = (room: IRoomWithRetentionPolicy) => {
 			systemMessages: Array.isArray(sysMes) ? sysMes : [],
 			hideSysMes: Array.isArray(sysMes) ? !!sysMes?.length : !!sysMes,
 			encrypted,
-			...(retentionPolicyEnabled && {
-				retentionEnabled: retention?.enabled ?? retentionEnabledDefault,
+			...(retentionPolicy?.enabled && {
+				retentionEnabled: retention?.enabled ?? retentionPolicy.isActive,
 				retentionOverrideGlobal: !!retention?.overrideGlobal,
-				retentionMaxAge: Math.min(retention?.maxAge, maxAgeDefault) || maxAgeDefault,
-				retentionExcludePinned: retention?.excludePinned ?? excludePinnedDefault,
-				retentionFilesOnly: retention?.filesOnly ?? filesOnlyDefault,
+				retentionMaxAge: retention?.maxAge ?? retentionPolicy.maxAge,
+				retentionExcludePinned: retention?.excludePinned ?? retentionPolicy.excludePinned,
+				retentionFilesOnly: retention?.filesOnly ?? retentionPolicy.filesOnly,
 			}),
 		}),
 		[
 			announcement,
 			archived,
 			description,
-			excludePinnedDefault,
-			filesOnlyDefault,
 			joinCodeRequired,
-			maxAgeDefault,
 			retention,
-			retentionEnabledDefault,
-			retentionPolicyEnabled,
+			retentionPolicy,
 			ro,
 			room,
 			sysMes,
diff --git a/apps/meteor/client/views/room/contextualBar/Info/RoomInfo/RoomInfo.tsx b/apps/meteor/client/views/room/contextualBar/Info/RoomInfo/RoomInfo.tsx
index 80abe104c88..5c45e8d095f 100644
--- a/apps/meteor/client/views/room/contextualBar/Info/RoomInfo/RoomInfo.tsx
+++ b/apps/meteor/client/views/room/contextualBar/Info/RoomInfo/RoomInfo.tsx
@@ -17,7 +17,7 @@ import RetentionPolicyCallout from '../../../../../components/InfoPanel/Retentio
 import MarkdownText from '../../../../../components/MarkdownText';
 import type { Action } from '../../../../hooks/useActionSpread';
 import { useActionSpread } from '../../../../hooks/useActionSpread';
-import { useRetentionPolicy } from '../../../body/hooks/useRetentionPolicy';
+import { useRetentionPolicy } from '../../../hooks/useRetentionPolicy';
 import { useRoomActions } from '../hooks/useRoomActions';
 
 type RoomInfoProps = {
@@ -135,11 +135,11 @@ const RoomInfo = ({ room, icon, onClickBack, onClickClose, onClickEnterRoom, onC
 							</InfoPanel.Field>
 						)}
 
-						{retentionPolicy && (
+						{retentionPolicy?.isActive && (
 							<RetentionPolicyCallout
-								filesOnlyDefault={retentionPolicy.filesOnly}
-								excludePinnedDefault={retentionPolicy.excludePinned}
-								maxAgeDefault={retentionPolicy.maxAge}
+								filesOnly={retentionPolicy.filesOnly}
+								excludePinned={retentionPolicy.excludePinned}
+								maxAge={retentionPolicy.maxAge}
 							/>
 						)}
 					</InfoPanel.Section>
diff --git a/apps/meteor/client/views/room/body/hooks/useRetentionPolicy.ts b/apps/meteor/client/views/room/hooks/useRetentionPolicy.ts
similarity index 92%
rename from apps/meteor/client/views/room/body/hooks/useRetentionPolicy.ts
rename to apps/meteor/client/views/room/hooks/useRetentionPolicy.ts
index f77bc5bf994..ce16df8bc32 100644
--- a/apps/meteor/client/views/room/body/hooks/useRetentionPolicy.ts
+++ b/apps/meteor/client/views/room/hooks/useRetentionPolicy.ts
@@ -16,6 +16,8 @@ type RetentionPolicySettings = {
 	maxAgeDMs: number;
 };
 
+export const getMaxAgeInMS = (maxAge: number) => maxAge * 24 * 60 * 60 * 1000;
+
 const isActive = (room: IRoom, { enabled, appliesToChannels, appliesToGroups, appliesToDMs }: RetentionPolicySettings): boolean => {
 	if (!enabled) {
 		return false;
@@ -75,6 +77,8 @@ export const useRetentionPolicy = (
 	room: IRoom | undefined,
 ):
 	| {
+			enabled: boolean;
+			isActive: boolean;
 			filesOnly: boolean;
 			excludePinned: boolean;
 			maxAge: number;
@@ -92,13 +96,15 @@ export const useRetentionPolicy = (
 		maxAgeDMs: useSetting('RetentionPolicy_MaxAge_DMs') as number,
 	} as const;
 
-	if (!room || !isActive(room, settings)) {
+	if (!room) {
 		return undefined;
 	}
 
 	return {
+		enabled: settings.enabled,
+		isActive: isActive(room, settings),
 		filesOnly: extractFilesOnly(room, settings),
 		excludePinned: extractExcludePinned(room, settings),
-		maxAge: getMaxAge(room, settings) * 24 * 60 * 60 * 1000,
+		maxAge: getMaxAge(room, settings),
 	};
 };
diff --git a/apps/meteor/client/views/teams/contextualBar/info/TeamsInfo.tsx b/apps/meteor/client/views/teams/contextualBar/info/TeamsInfo.tsx
index 809e20100c9..12e092b4876 100644
--- a/apps/meteor/client/views/teams/contextualBar/info/TeamsInfo.tsx
+++ b/apps/meteor/client/views/teams/contextualBar/info/TeamsInfo.tsx
@@ -200,11 +200,7 @@ const TeamsInfo = ({
 						)}
 
 						{retentionPolicyEnabled && (
-							<RetentionPolicyCallout
-								filesOnlyDefault={filesOnlyDefault}
-								excludePinnedDefault={excludePinnedDefault}
-								maxAgeDefault={maxAgeDefault}
-							/>
+							<RetentionPolicyCallout filesOnly={filesOnlyDefault} excludePinned={excludePinnedDefault} maxAge={maxAgeDefault} />
 						)}
 					</InfoPanel.Section>
 				</InfoPanel>
diff --git a/apps/meteor/tests/e2e/page-objects/fragments/home-content.ts b/apps/meteor/tests/e2e/page-objects/fragments/home-content.ts
index 01237e68cfb..4f55c4f088e 100644
--- a/apps/meteor/tests/e2e/page-objects/fragments/home-content.ts
+++ b/apps/meteor/tests/e2e/page-objects/fragments/home-content.ts
@@ -13,6 +13,10 @@ export class HomeContent {
 		return this.page.locator('main header');
 	}
 
+	get channelRetentionPolicyWarning(): Locator {
+		return this.page.locator('main').getByRole('alert', { name: 'Retention policy warning banner' });
+	}
+
 	get inputMessage(): Locator {
 		return this.page.locator('[name="msg"]');
 	}
diff --git a/apps/meteor/tests/e2e/page-objects/fragments/home-flextab-room.ts b/apps/meteor/tests/e2e/page-objects/fragments/home-flextab-room.ts
index ece3d27fd25..fac98e630ca 100644
--- a/apps/meteor/tests/e2e/page-objects/fragments/home-flextab-room.ts
+++ b/apps/meteor/tests/e2e/page-objects/fragments/home-flextab-room.ts
@@ -38,4 +38,28 @@ export class HomeFlextabRoom {
 	get btnSave(): Locator {
 		return this.page.locator('role=button[name="Save"]');
 	}
+
+	get calloutRetentionPolicy(): Locator {
+		return this.page.getByRole('dialog').getByRole('alert', { name: 'Retention policy warning callout' });
+	}
+
+	get pruneAccordion(): Locator {
+		return this.page.getByRole('dialog').getByRole('button', { name: 'Prune' });
+	}
+
+	getMaxAgeLabel(maxAge = '30') {
+		return this.page.getByRole('dialog').getByText(`Maximum message age in days (default: ${maxAge})`)
+	}
+
+	get inputRetentionMaxAge(): Locator {
+		return this.page.getByRole('dialog').locator('input[name="retentionMaxAge"]');
+	}
+
+	get checkboxPruneMessages(): Locator {
+		return this.page.locator('label', { has: this.page.getByRole('checkbox', { name: 'Automatically prune old messages' }) });
+	}
+
+	get checkboxOverrideGlobalRetention(): Locator {
+		return this.page.locator('label', { has: this.page.getByRole('checkbox', { name: 'Override global retention policy' }) });
+	}
 }
diff --git a/apps/meteor/tests/e2e/retention-policy.spec.ts b/apps/meteor/tests/e2e/retention-policy.spec.ts
new file mode 100644
index 00000000000..94acdc6d65f
--- /dev/null
+++ b/apps/meteor/tests/e2e/retention-policy.spec.ts
@@ -0,0 +1,138 @@
+import { Users } from './fixtures/userStates';
+import { HomeChannel } from './page-objects';
+import { createTargetChannel, createTargetPrivateChannel, setSettingValueById } from './utils';
+import { test, expect } from './utils/test';
+
+test.use({ storageState: Users.admin.state });
+
+test.describe.serial('retention-policy', () => {
+	let poHomeChannel: HomeChannel;
+	let targetChannel: string;
+	let targetGroup: string;
+
+	test.beforeAll(async ({ api }) => {
+		targetChannel = await createTargetChannel(api);
+		targetGroup = await createTargetPrivateChannel(api);
+	})
+
+	test.beforeEach(async ({ page }) => {
+		poHomeChannel = new HomeChannel(page);
+
+		await page.goto('/home');
+	});
+
+	test.describe('retention policy disabled', () => {
+		test('should not show prune banner in channel', async () => {
+			await poHomeChannel.sidenav.openChat(targetChannel);
+
+			await expect(poHomeChannel.content.channelRetentionPolicyWarning).not.toBeVisible();
+		});
+
+		test('should not show prune section on edit channel', async () => {
+			await poHomeChannel.sidenav.openChat(targetChannel);
+			await poHomeChannel.tabs.btnRoomInfo.click();
+			await poHomeChannel.tabs.room.btnEdit.click();
+
+			await expect(poHomeChannel.tabs.room.pruneAccordion).not.toBeVisible();
+		});
+	});
+
+	test.describe('retention policy enabled', () => {	
+		test.beforeAll(async ({ api }) => {
+			await setSettingValueById(api, 'RetentionPolicy_Enabled', true);
+		})
+		test.afterAll(async ({ api }) => {
+			await setSettingValueById(api, 'RetentionPolicy_Enabled', false);
+			await setSettingValueById(api, 'RetentionPolicy_AppliesToChannels', false);
+			await setSettingValueById(api, 'RetentionPolicy_AppliesToGroups', false);
+			await setSettingValueById(api, 'RetentionPolicy_AppliesToDMs', false);
+			await setSettingValueById(api, 'RetentionPolicy_MaxAge_Channels', 30);
+		});
+
+		test('should not show prune banner even with retention policy setting enabled in any type of room', async () => {
+			await poHomeChannel.sidenav.openChat(targetChannel);
+			await expect(poHomeChannel.content.channelRetentionPolicyWarning).not.toBeVisible();
+
+			await poHomeChannel.sidenav.openChat(targetGroup);
+			await expect(poHomeChannel.content.channelRetentionPolicyWarning).not.toBeVisible();
+
+			await poHomeChannel.sidenav.openChat('user1');
+			await expect(poHomeChannel.content.channelRetentionPolicyWarning).not.toBeVisible();
+		});
+
+		test('should show prune section in edit channel', async () => {
+			await poHomeChannel.sidenav.openChat(targetChannel);
+			await poHomeChannel.tabs.btnRoomInfo.click();
+			await poHomeChannel.tabs.room.btnEdit.click();
+
+			await expect(poHomeChannel.tabs.room.pruneAccordion).toBeVisible();
+		});
+
+		test.describe('retention policy applies enabled by default', () => {
+			test.beforeAll(async ({ api }) => {
+				await setSettingValueById(api, 'RetentionPolicy_AppliesToChannels', true);
+				await setSettingValueById(api, 'RetentionPolicy_AppliesToGroups', true);
+				await setSettingValueById(api, 'RetentionPolicy_AppliesToDMs', true);
+			});
+
+			test('should prune old messages checkbox enabled by default in channel and show retention policy banner', async () => {
+				await poHomeChannel.sidenav.openChat(targetChannel);
+				await expect(poHomeChannel.content.channelRetentionPolicyWarning).toBeVisible();
+	
+				await poHomeChannel.tabs.btnRoomInfo.click();
+				await poHomeChannel.tabs.room.btnEdit.click();
+				await poHomeChannel.tabs.room.pruneAccordion.click();
+				await expect(poHomeChannel.tabs.room.checkboxPruneMessages).toBeChecked();
+			});
+
+			test('should prune old messages checkbox enabled by default in group and show retention policy banner', async () => {
+				await poHomeChannel.sidenav.openChat(targetGroup);
+				await expect(poHomeChannel.content.channelRetentionPolicyWarning).toBeVisible();
+	
+				await poHomeChannel.tabs.btnRoomInfo.click();
+				await poHomeChannel.tabs.room.btnEdit.click();
+				await poHomeChannel.tabs.room.pruneAccordion.click();
+				await expect(poHomeChannel.tabs.room.checkboxPruneMessages).toBeChecked();
+			});
+
+			test('should show retention policy banner in DMs', async () => {
+				await poHomeChannel.sidenav.openChat('user1');
+				await expect(poHomeChannel.content.channelRetentionPolicyWarning).toBeVisible();
+			});
+		});
+
+		test.describe('retention policy override', () => {
+			test.beforeAll(async ({ api }) => {
+				expect((await setSettingValueById(api, 'RetentionPolicy_MaxAge_Channels', 15)).status()).toBe(200);
+			});
+
+			test('should display the default max age in edit channel', async () => {
+				await poHomeChannel.sidenav.openChat(targetChannel);
+				await poHomeChannel.tabs.btnRoomInfo.click();
+				await poHomeChannel.tabs.room.btnEdit.click();
+				await poHomeChannel.tabs.room.pruneAccordion.click();
+				await poHomeChannel.tabs.room.checkboxOverrideGlobalRetention.click();
+	
+				await expect(poHomeChannel.tabs.room.getMaxAgeLabel('15')).toBeVisible();
+			});
+	
+			test('should display overridden retention max age value', async () => {
+				await poHomeChannel.sidenav.openChat(targetChannel);
+				await poHomeChannel.tabs.btnRoomInfo.click();
+				await poHomeChannel.tabs.room.btnEdit.click();
+				await poHomeChannel.tabs.room.pruneAccordion.click();
+				await poHomeChannel.tabs.room.checkboxOverrideGlobalRetention.click();
+				await poHomeChannel.tabs.room.inputRetentionMaxAge.fill('365');
+				await poHomeChannel.tabs.room.btnSave.click();
+				await poHomeChannel.dismissToast();
+	
+				await poHomeChannel.tabs.btnRoomInfo.click();
+				await poHomeChannel.tabs.room.btnEdit.click();
+				await poHomeChannel.tabs.room.pruneAccordion.click();
+	
+				await expect(poHomeChannel.tabs.room.getMaxAgeLabel('15')).toBeVisible();
+				await expect(poHomeChannel.tabs.room.inputRetentionMaxAge).toHaveValue('365');
+			});
+		});
+	});
+});
diff --git a/packages/i18n/src/locales/en.i18n.json b/packages/i18n/src/locales/en.i18n.json
index 1dc586fb0c4..c59f3887106 100644
--- a/packages/i18n/src/locales/en.i18n.json
+++ b/packages/i18n/src/locales/en.i18n.json
@@ -4500,6 +4500,8 @@
   "RetentionPolicyRoom_MaxAge": "Maximum message age in days (default: {{max}})",
   "RetentionPolicyRoom_OverrideGlobal": "Override global retention policy",
   "RetentionPolicyRoom_ReadTheDocs": "Watch out! Tweaking these settings without utmost care can destroy all message history. Please read the documentation before turning the feature on <a href='https://docs.rocket.chat/use-rocket.chat/workspace-administration/settings/retention-policies'>here</a>.",
+  "Retention_policy_warning_banner": "Retention policy warning banner",
+  "Retention_policy_warning_callout": "Retention policy warning callout",
   "Retry": "Retry",
   "Return_to_home": "Return to home",
   "Return_to_previous_page": "Return to previous page",