diff --git a/apps/server/src/orchestration/ThreadSettlementReactor.test.ts b/apps/server/src/orchestration/ThreadSettlementReactor.test.ts
index eefc18f7b461..fcba210cf12b 100644
--- a/apps/server/src/orchestration/ThreadSettlementReactor.test.ts
+++ b/apps/server/src/orchestration/ThreadSettlementReactor.test.ts
@@ -149,6 +149,7 @@ const makeHarness = Effect.fn("makeThreadSettlementHarness")(function* (options:
   const snapshotReadCount = yield* Ref.make(0);
   const snapshotReads = yield* Queue.unbounded<number>();
   const settings = yield* Ref.make(options.settings ?? DEFAULT_SERVER_SETTINGS);
+  const settingsReads = yield* Queue.unbounded<ServerSettings>();
   const settingsChanges = yield* PubSub.unbounded<ServerSettings>();
   const mergedPullRequests = yield* PubSub.unbounded<PullRequestMergeEvent>();
   const commands = yield* Ref.make<ReadonlyArray<AutoSettleCommand>>([]);
@@ -208,7 +209,7 @@ const makeHarness = Effect.fn("makeThreadSettlementHarness")(function* (options:
   const serverSettings = ServerSettingsService.of({
     start: Effect.void,
     ready: Effect.void,
-    getSettings: Ref.get(settings),
+    getSettings: Ref.get(settings).pipe(Effect.tap((value) => Queue.offer(settingsReads, value))),
     updateSettings,
     streamChanges: Stream.fromPubSub(settingsChanges),
     subscribeChanges: PubSub.subscribe(settingsChanges).pipe(
@@ -253,6 +254,7 @@ const makeHarness = Effect.fn("makeThreadSettlementHarness")(function* (options:
     snapshots,
     snapshotReadCount,
     snapshotReads,
+    settingsReads,
     commands,
     branchCalls,
     summaryCalls,
@@ -281,6 +283,63 @@ const startHarness = Effect.fn("startThreadSettlementHarness")(function* (
 });
 
 describe("ThreadSettlementReactor", () => {
+  it.effect("skips PR work on startup, timer and merge sweeps when settlement is disabled", () =>
+    Effect.scoped(
+      Effect.gen(function* () {
+        yield* TestClock.setTime(Date.parse(NOW));
+        const fixture = yield* makeHarness({
+          snapshot: makeSnapshot([
+            makeThread("branch-thread", { branch: "feature" }),
+            makeThread("linked-thread", {
+              linkedPullRequest: {
+                projectId: PROJECT_ID,
+                repository: "owner/repository",
+                number: 42,
+                url: "https://example.test/owner/repository/pull/42",
+              },
+            }),
+          ]),
+          settings: {
+            ...DEFAULT_SERVER_SETTINGS,
+            sidebarAutoSettleAfterDays: null,
+            sidebarAutoSettleOnMerge: false,
+          },
+        });
+
+        yield* Effect.gen(function* () {
+          const reactor = yield* ThreadSettlementReactor.ThreadSettlementReactor;
+          yield* reactor.start();
+          yield* Queue.take(fixture.settingsReads);
+          yield* Deferred.succeed(fixture.activation, undefined);
+          yield* Queue.take(fixture.settingsReads);
+          yield* reactor.drain;
+          yield* TestClock.adjust("1 minute");
+          yield* Queue.take(fixture.settingsReads);
+          yield* reactor.drain;
+          yield* fixture.publishMerge;
+          yield* Queue.take(fixture.settingsReads);
+          yield* reactor.drain;
+
+          assert.deepStrictEqual(yield* Ref.get(fixture.branchCalls), []);
+          assert.deepStrictEqual(yield* Ref.get(fixture.summaryCalls), []);
+          assert.deepStrictEqual(yield* Ref.get(fixture.invalidatedCwds), []);
+          assert.deepStrictEqual(yield* Ref.get(fixture.commands), []);
+          assert.strictEqual(yield* Ref.get(fixture.snapshotReadCount), 0);
+
+          yield* fixture.updateSettings({ sidebarAutoSettleAfterDays: 1 });
+          yield* Queue.take(fixture.snapshotReads);
+          yield* reactor.drain;
+          assert.strictEqual((yield* Ref.get(fixture.branchCalls)).length, 1);
+          assert.strictEqual((yield* Ref.get(fixture.summaryCalls)).length, 1);
+          assert.deepStrictEqual(
+            (yield* Ref.get(fixture.commands)).map((command) => command.threadId).toSorted(),
+            [ThreadId.make("branch-thread"), ThreadId.make("linked-thread")],
+          );
+        }).pipe(Effect.provide(fixture.layer));
+      }),
+    ),
+  );
+
   it.effect("starts without clients and skips protected threads before pull request lookup", () =>
     Effect.scoped(
       Effect.gen(function* () {
@@ -600,14 +659,14 @@ describe("ThreadSettlementReactor", () => {
               Effect.tap((count) =>
                 count === 1
                   ? Deferred.succeed(firstLookupStarted, undefined)
-                  : count === 3
+                  : count === 2
                     ? Deferred.succeed(laterLookupStarted, undefined)
                     : Effect.void,
               ),
               Effect.tap((count) =>
                 count === 1
                   ? Deferred.await(releaseFirstLookup)
-                  : count === 3
+                  : count === 2
                     ? Deferred.await(releaseLaterLookup)
                     : Effect.void,
               ),
@@ -627,13 +686,16 @@ describe("ThreadSettlementReactor", () => {
           yield* Deferred.succeed(fixture.activation, undefined);
           yield* Queue.take(fixture.snapshotReads);
           yield* Deferred.await(firstLookupStarted);
+          yield* Queue.clear(fixture.settingsReads);
 
           yield* fixture.updateSettings({ sidebarAutoSettleOnMerge: false });
           yield* Deferred.succeed(releaseFirstLookup, undefined);
-          yield* Queue.take(fixture.snapshotReads);
+          // The in-flight decision and the newly queued sweep both read the disabled settings.
+          yield* Queue.take(fixture.settingsReads);
+          yield* Queue.take(fixture.settingsReads);
           yield* reactor.drain;
           assert.deepStrictEqual(yield* Ref.get(fixture.commands), []);
-          assert.strictEqual(yield* Ref.get(fixture.snapshotReadCount), 2);
+          assert.strictEqual(yield* Ref.get(fixture.snapshotReadCount), 1);
 
           yield* Ref.set(state, "closed");
           yield* fixture.updateSettings({ enableAgentBrowserAccess: false });
@@ -642,8 +704,8 @@ describe("ThreadSettlementReactor", () => {
           yield* Deferred.succeed(releaseLaterLookup, undefined);
           yield* reactor.drain;
 
-          assert.strictEqual(yield* Ref.get(fixture.snapshotReadCount), 3);
-          assert.strictEqual(yield* Ref.get(lookupCount), 3);
+          assert.strictEqual(yield* Ref.get(fixture.snapshotReadCount), 2);
+          assert.strictEqual(yield* Ref.get(lookupCount), 2);
           assert.deepStrictEqual(
             (yield* Ref.get(fixture.commands)).map((command) => command.threadId),
             [ThreadId.make("settings-thread")],
diff --git a/apps/server/src/orchestration/ThreadSettlementReactor.ts b/apps/server/src/orchestration/ThreadSettlementReactor.ts
index 70de3c41d7e9..48c72a6a43c1 100644
--- a/apps/server/src/orchestration/ThreadSettlementReactor.ts
+++ b/apps/server/src/orchestration/ThreadSettlementReactor.ts
@@ -43,6 +43,10 @@ export const make = Effect.gen(function* () {
   const sweep = Effect.fn("ThreadSettlementReactor.sweep")(function* (
     mergedPullRequest: PullRequestService.PullRequestMergeEvent | null,
   ) {
+    const settings = yield* settingsService.getSettings;
+    if (!settings.sidebarAutoSettleOnMerge && settings.sidebarAutoSettleAfterDays === null) {
+      return;
+    }
     const snapshot = yield* snapshots.getShellSnapshot();
     const now = DateTime.formatIso(yield* DateTime.now);
     const projects = new Map(snapshot.projects.map((project) => [project.id, project]));