diff --git a/web/src/stream_edit.ts b/web/src/stream_edit.ts
index d3315967f9..0abfc1d2a2 100644
--- a/web/src/stream_edit.ts
+++ b/web/src/stream_edit.ts
@@ -17,6 +17,7 @@ import * as blueslip from "./blueslip.ts";
 import type {Bot} from "./bot_data.ts";
 import * as browser_history from "./browser_history.ts";
 import * as channel from "./channel.ts";
+import * as channel_folders from "./channel_folders.ts";
 import * as channel_folders_ui from "./channel_folders_ui.ts";
 import * as confirm_dialog from "./confirm_dialog.ts";
 import {show_copied_confirmation} from "./copied_tooltip.ts";
@@ -256,6 +257,7 @@ export function show_settings_for(node: HTMLElement): void {
         other_settings.push(setting);
         return false;
     });
+    const realm_has_channel_folders = channel_folders.get_active_folder_ids().size > 0;
 
     const html = render_stream_settings({
         sub,
@@ -275,6 +277,7 @@ export function show_settings_for(node: HTMLElement): void {
         group_setting_labels: settings_config.all_group_setting_labels.stream,
         has_billing_access: settings_data.user_has_billing_access(),
         empty_string_topic_display_name: util.get_final_topic_display_name(""),
+        realm_has_channel_folders,
     });
     scroll_util.get_content_element($("#stream_settings")).html(html);
 
diff --git a/web/templates/stream_settings/stream_permissions.hbs b/web/templates/stream_settings/stream_permissions.hbs
index 8e4948583f..4bf3393555 100644
--- a/web/templates/stream_settings/stream_permissions.hbs
+++ b/web/templates/stream_settings/stream_permissions.hbs
@@ -56,6 +56,7 @@
         component so that we can show dropdown button and button to create
         a new folder on same line without having to add much CSS with
         hardcoded margin and padding values. --}}
+        {{#if (or is_admin realm_has_channel_folders)}}
         <label class="settings-field-label" for="{{channel_folder_widget_name}}_widget">
             {{t "Channel folder"}}
             {{> ../help_link_widget link="/help/channel-folders" }}
@@ -74,6 +75,12 @@
                   }}
             {{/if}}
         </div>
+        {{else}}
+        <span class="settings-field-label">
+            {{t "There are no channel folders configured in this organization."}}
+            {{> ../help_link_widget link="/help/channel-folders" }}
+        </span>
+        {{/if}}
     </div>
 </div>