diff --git a/build/lib/policies/policyData.jsonc b/build/lib/policies/policyData.jsonc
index 53387c4fa34..7489336e814 100644
--- a/build/lib/policies/policyData.jsonc
+++ b/build/lib/policies/policyData.jsonc
@@ -169,6 +169,20 @@
             "type": "boolean",
             "default": true
         },
+        {
+            "key": "chat.useHooks",
+            "name": "ChatHooks",
+            "category": "InteractiveSession",
+            "minimumVersion": "1.109",
+            "localization": {
+                "description": {
+                    "key": "chat.useHooks.description",
+                    "value": "Controls whether chat hooks are executed at strategic points during an agent's workflow. Hooks are loaded from the files configured in `#chat.hookFilesLocations#`."
+                }
+            },
+            "type": "boolean",
+            "default": true
+        },
         {
             "key": "chat.tools.terminal.enableAutoApprove",
             "name": "ChatToolsTerminalEnableAutoApprove",
diff --git a/src/vs/workbench/contrib/chat/browser/chat.contribution.ts b/src/vs/workbench/contrib/chat/browser/chat.contribution.ts
index d9a0dbe7a6a..13e9b83a523 100644
--- a/src/vs/workbench/contrib/chat/browser/chat.contribution.ts
+++ b/src/vs/workbench/contrib/chat/browser/chat.contribution.ts
@@ -958,7 +958,7 @@ configurationRegistry.registerConfiguration({
 				patternErrorMessage: nls.localize('chat.hookFilesLocations.invalidPath', "Paths must be relative or start with '~/'. Absolute paths and '\\' separators are not supported."),
 			},
 			restricted: true,
-			tags: ['prompts', 'hooks', 'agent'],
+			tags: ['preview', 'prompts', 'hooks', 'agent'],
 			examples: [
 				{
 					[DEFAULT_HOOK_FILE_PATHS[0].path]: true,
@@ -971,12 +971,24 @@ configurationRegistry.registerConfiguration({
 		},
 		[PromptsConfig.USE_CHAT_HOOKS]: {
 			type: 'boolean',
-			title: nls.localize('chat.useChatHooks.title', "Use Chat Hooks",),
-			markdownDescription: nls.localize('chat.useChatHooks.description', "Controls whether chat hooks are executed at strategic points during an agent's workflow. Hooks are loaded from the files configured in `#chat.hookFilesLocations#`.",),
+			title: nls.localize('chat.useHooks.title', "Use Chat Hooks",),
+			markdownDescription: nls.localize('chat.useHooks.description', "Controls whether chat hooks are executed at strategic points during an agent's workflow. Hooks are loaded from the files configured in `#chat.hookFilesLocations#`.",),
 			default: true,
 			restricted: true,
 			disallowConfigurationDefault: true,
-			tags: ['prompts', 'hooks', 'agent']
+			tags: ['preview', 'prompts', 'hooks', 'agent'],
+			policy: {
+				name: 'ChatHooks',
+				category: PolicyCategory.InteractiveSession,
+				minimumVersion: '1.109',
+				value: (policyData) => policyData.chat_preview_features_enabled === false ? false : undefined,
+				localization: {
+					description: {
+						key: 'chat.useHooks.description',
+						value: nls.localize('chat.useHooks.description', "Controls whether chat hooks are executed at strategic points during an agent's workflow. Hooks are loaded from the files configured in `#chat.hookFilesLocations#`.",)
+					}
+				},
+			}
 		},
 		[PromptsConfig.PROMPT_FILES_SUGGEST_KEY]: {
 			type: 'object',
diff --git a/src/vs/workbench/contrib/chat/common/promptSyntax/config/config.ts b/src/vs/workbench/contrib/chat/common/promptSyntax/config/config.ts
index 4b9621c5547..89d415a99ef 100644
--- a/src/vs/workbench/contrib/chat/common/promptSyntax/config/config.ts
+++ b/src/vs/workbench/contrib/chat/common/promptSyntax/config/config.ts
@@ -108,7 +108,7 @@ export namespace PromptsConfig {
 	/**
 	 * Configuration key for chat hooks usage.
 	 */
-	export const USE_CHAT_HOOKS = 'chat.useChatHooks';
+	export const USE_CHAT_HOOKS = 'chat.useHooks';
 
 	/**
 	 * Configuration key for enabling stronger skill adherence prompt (experimental).
diff --git a/src/vs/workbench/contrib/chat/common/promptSyntax/service/promptsServiceImpl.ts b/src/vs/workbench/contrib/chat/common/promptSyntax/service/promptsServiceImpl.ts
index 7d4cb5cc352..e32abc667f0 100644
--- a/src/vs/workbench/contrib/chat/common/promptSyntax/service/promptsServiceImpl.ts
+++ b/src/vs/workbench/contrib/chat/common/promptSyntax/service/promptsServiceImpl.ts
@@ -177,7 +177,10 @@ export class PromptsService extends Disposable implements IPromptsService {
 
 		this.cachedHooks = this._register(new CachedPromise(
 			(token) => this.computeHooks(token),
-			() => this.getFileLocatorEvent(PromptsType.hook)
+			() => Event.any(
+				this.getFileLocatorEvent(PromptsType.hook),
+				Event.filter(this.configurationService.onDidChangeConfiguration, e => e.affectsConfiguration(PromptsConfig.USE_CHAT_HOOKS)),
+			)
 		));
 
 		// Hack: Subscribe to activate caching (CachedPromise only caches when onDidChange has listeners)
@@ -1000,6 +1003,11 @@ export class PromptsService extends Disposable implements IPromptsService {
 	}
 
 	private async computeHooks(token: CancellationToken): Promise<IChatRequestHooks | undefined> {
+		const useChatHooks = this.configurationService.getValue(PromptsConfig.USE_CHAT_HOOKS);
+		if (!useChatHooks) {
+			return undefined;
+		}
+
 		const hookFiles = await this.listPromptFiles(PromptsType.hook, token);
 
 		if (hookFiles.length === 0) {
diff --git a/src/vs/workbench/contrib/preferences/browser/settingsLayout.ts b/src/vs/workbench/contrib/preferences/browser/settingsLayout.ts
index 4b8f27cdd9b..63a328d454b 100644
--- a/src/vs/workbench/contrib/preferences/browser/settingsLayout.ts
+++ b/src/vs/workbench/contrib/preferences/browser/settingsLayout.ts
@@ -257,7 +257,7 @@ export const tocData: ITOCEntry<string> = {
 						'chat.useNestedAgentsMdFiles',
 						'chat.useAgentSkills',
 						'chat.experimental.useSkillAdherencePrompt',
-						'chat.useChatHooks',
+						'chat.useHooks',
 						'chat.includeApplyingInstructions',
 						'chat.includeReferencedInstructions',
 						'chat.sendElementsToChat.*',