diff --git a/src/pages/workspace/WorkspacesListPage.tsx b/src/pages/workspace/WorkspacesListPage.tsx
index d39d52c5a9ca..589845e3afd7 100755
--- a/src/pages/workspace/WorkspacesListPage.tsx
+++ b/src/pages/workspace/WorkspacesListPage.tsx
@@ -1,4 +1,5 @@
 import {useIsFocused, useRoute} from '@react-navigation/native';
+import {Str} from 'expensify-common';
 import React, {useCallback, useEffect, useMemo, useRef, useState} from 'react';
 import {FlatList, InteractionManager, View} from 'react-native';
 import type {ValueOf} from 'type-fest';
@@ -117,6 +118,8 @@ function WorkspacesListPage() {
     const [fundList] = useOnyx(ONYXKEYS.FUND_LIST, {canBeMissing: true});
     const [duplicateWorkspace] = useOnyx(ONYXKEYS.DUPLICATE_WORKSPACE, {canBeMissing: false});
     const isDuplicatedWorkspaceEnabled = isBetaEnabled(CONST.BETAS.DUPLICATE_WORKSPACE);
+    const [myDomainSecurityGroups] = useOnyx(ONYXKEYS.MY_DOMAIN_SECURITY_GROUPS, {canBeMissing: true});
+    const [securityGroups] = useOnyx(ONYXKEYS.COLLECTION.SECURITY_GROUP, {canBeMissing: true});
 
     // This hook preloads the screens of adjacent tabs to make changing tabs faster.
     usePreloadFullScreenNavigators();
@@ -192,6 +195,24 @@ function WorkspacesListPage() {
         [session?.accountID],
     );
 
+    const canUserSetWorkspaceAsDefault = useCallback(() => {
+        const userEmail = session?.email;
+        if (!userEmail) {
+            return true;
+        }
+
+        const domainName = Str.extractEmailDomain(userEmail);
+        const primaryDomainSecurityGroupID = myDomainSecurityGroups?.[domainName];
+
+        if (!primaryDomainSecurityGroupID) {
+            return true;
+        }
+
+        const securityGroup = securityGroups?.[`${ONYXKEYS.COLLECTION.SECURITY_GROUP}${primaryDomainSecurityGroupID}`];
+
+        return !securityGroup?.enableRestrictedPrimaryPolicy;
+    }, [session?.email, myDomainSecurityGroups, securityGroups]);
+
     /**
      * Gets the menu item for each workspace
      */
@@ -227,7 +248,7 @@ function WorkspacesListPage() {
                 });
             }
 
-            if (!isDefault && !item?.isJoinRequestPending) {
+            if (!isDefault && !item?.isJoinRequestPending && canUserSetWorkspaceAsDefault()) {
                 threeDotsMenuItems.push({
                     icon: Expensicons.Star,
                     text: translate('workspace.common.setAsDefault'),
@@ -323,20 +344,20 @@ function WorkspacesListPage() {
             session?.email,
             session?.accountID,
             activePolicyID,
+            duplicateWorkspace?.policyID,
             translate,
             policies,
+            isDuplicatedWorkspaceEnabled,
+            canUserSetWorkspaceAsDefault,
             fundList,
             styles.ph5,
             styles.mb2,
             styles.mh5,
-            styles.ph5,
-            duplicateWorkspace?.policyID,
             styles.hoveredComponentBG,
             styles.offlineFeedback.deleted,
             loadingSpinnerIconIndex,
             shouldCalculateBillNewDot,
             isSupportalAction,
-            isDuplicatedWorkspaceEnabled,
             setIsDeletingPaidWorkspace,
             startChangeOwnershipFlow,
             isLessThanMediumScreen,