diff --git a/packages/cli/src/config/settings.test.ts b/packages/cli/src/config/settings.test.ts
index be5f3d14f9..41514f18fe 100644
--- a/packages/cli/src/config/settings.test.ts
+++ b/packages/cli/src/config/settings.test.ts
@@ -2215,8 +2215,8 @@ describe('Settings Loading and Merging', () => {
       // and missing properties revert to schema defaults.
       loadedSettings.setRemoteAdminSettings({ secureModeEnabled: false });
       expect(loadedSettings.merged.admin?.secureModeEnabled).toBe(false);
-      expect(loadedSettings.merged.admin?.mcp?.enabled).toBe(true); // Reverts to default: true
-      expect(loadedSettings.merged.admin?.extensions?.enabled).toBe(true); // Reverts to default: true
+      expect(loadedSettings.merged.admin?.mcp?.enabled).toBe(false); // Defaulting to false if missing
+      expect(loadedSettings.merged.admin?.extensions?.enabled).toBe(false); // Defaulting to false if missing
     });
 
     it('should correctly handle undefined remote admin settings', () => {
@@ -2276,10 +2276,10 @@ describe('Settings Loading and Merging', () => {
         secureModeEnabled: true,
       });
 
-      // Verify secureModeEnabled is updated, others remain defaults
+      // Verify secureModeEnabled is updated, others default to false
       expect(loadedSettings.merged.admin?.secureModeEnabled).toBe(true);
-      expect(loadedSettings.merged.admin?.mcp?.enabled).toBe(true);
-      expect(loadedSettings.merged.admin?.extensions?.enabled).toBe(true);
+      expect(loadedSettings.merged.admin?.mcp?.enabled).toBe(false);
+      expect(loadedSettings.merged.admin?.extensions?.enabled).toBe(false);
 
       // Set remote settings with only mcpSetting.mcpEnabled
       loadedSettings.setRemoteAdminSettings({
@@ -2289,7 +2289,7 @@ describe('Settings Loading and Merging', () => {
       // Verify mcpEnabled is updated, others remain defaults (secureModeEnabled reverts to default:false)
       expect(loadedSettings.merged.admin?.secureModeEnabled).toBe(false);
       expect(loadedSettings.merged.admin?.mcp?.enabled).toBe(false);
-      expect(loadedSettings.merged.admin?.extensions?.enabled).toBe(true);
+      expect(loadedSettings.merged.admin?.extensions?.enabled).toBe(false);
 
       // Set remote settings with only cliFeatureSetting.extensionsSetting.extensionsEnabled
       loadedSettings.setRemoteAdminSettings({
@@ -2298,7 +2298,7 @@ describe('Settings Loading and Merging', () => {
 
       // Verify extensionsEnabled is updated, others remain defaults
       expect(loadedSettings.merged.admin?.secureModeEnabled).toBe(false);
-      expect(loadedSettings.merged.admin?.mcp?.enabled).toBe(true);
+      expect(loadedSettings.merged.admin?.mcp?.enabled).toBe(false);
       expect(loadedSettings.merged.admin?.extensions?.enabled).toBe(false);
     });
 
@@ -2318,6 +2318,62 @@ describe('Settings Loading and Merging', () => {
       });
       expect(loadedSettings.merged.admin.skills?.enabled).toBe(false);
     });
+
+    it('should default mcp.enabled to false if mcpSetting is present but mcpEnabled is undefined', () => {
+      const loadedSettings = loadSettings(MOCK_WORKSPACE_DIR);
+      loadedSettings.setRemoteAdminSettings({
+        mcpSetting: {},
+      });
+      expect(loadedSettings.merged.admin?.mcp?.enabled).toBe(false);
+    });
+
+    it('should default extensions.enabled to false if extensionsSetting is present but extensionsEnabled is undefined', () => {
+      const loadedSettings = loadSettings(MOCK_WORKSPACE_DIR);
+      loadedSettings.setRemoteAdminSettings({
+        cliFeatureSetting: {
+          extensionsSetting: {},
+        },
+      });
+      expect(loadedSettings.merged.admin?.extensions?.enabled).toBe(false);
+    });
+
+    it('should force secureModeEnabled to false if undefined, overriding schema defaults', () => {
+      // Mock schema to have secureModeEnabled default to true to verify the override
+      const originalSchema = getSettingsSchema();
+      const modifiedSchema = JSON.parse(JSON.stringify(originalSchema));
+      if (modifiedSchema.admin?.properties?.secureModeEnabled) {
+        modifiedSchema.admin.properties.secureModeEnabled.default = true;
+      }
+      vi.mocked(getSettingsSchema).mockReturnValue(modifiedSchema);
+
+      try {
+        (mockFsExistsSync as Mock).mockReturnValue(true);
+        (fs.readFileSync as Mock).mockImplementation(() => '{}');
+
+        const loadedSettings = loadSettings(MOCK_WORKSPACE_DIR);
+
+        // Pass a non-empty object that doesn't have secureModeEnabled
+        loadedSettings.setRemoteAdminSettings({
+          mcpSetting: {},
+        });
+
+        // It should be forced to false by the logic, overriding the mock default of true
+        expect(loadedSettings.merged.admin?.secureModeEnabled).toBe(false);
+      } finally {
+        vi.mocked(getSettingsSchema).mockReturnValue(originalSchema);
+      }
+    });
+
+    it('should handle completely empty remote admin settings response', () => {
+      const loadedSettings = loadSettings(MOCK_WORKSPACE_DIR);
+
+      loadedSettings.setRemoteAdminSettings({});
+
+      // Should default to schema defaults (standard defaults)
+      expect(loadedSettings.merged.admin?.secureModeEnabled).toBe(false);
+      expect(loadedSettings.merged.admin?.mcp?.enabled).toBe(true);
+      expect(loadedSettings.merged.admin?.extensions?.enabled).toBe(true);
+    });
   });
 
   describe('getDefaultsFromSchema', () => {
diff --git a/packages/cli/src/config/settings.ts b/packages/cli/src/config/settings.ts
index d7da64195f..dcfaf27f41 100644
--- a/packages/cli/src/config/settings.ts
+++ b/packages/cli/src/config/settings.ts
@@ -350,18 +350,17 @@ export class LoadedSettings {
     const admin: Settings['admin'] = {};
     const { secureModeEnabled, mcpSetting, cliFeatureSetting } = remoteSettings;
 
-    if (secureModeEnabled !== undefined) {
-      admin.secureModeEnabled = secureModeEnabled;
+    if (Object.keys(remoteSettings).length === 0) {
+      this._remoteAdminSettings = { admin };
+      this._merged = this.computeMergedSettings();
+      return;
     }
 
-    if (mcpSetting?.mcpEnabled !== undefined) {
-      admin.mcp = { enabled: mcpSetting.mcpEnabled };
-    }
-
-    const extensionsSetting = cliFeatureSetting?.extensionsSetting;
-    if (extensionsSetting?.extensionsEnabled !== undefined) {
-      admin.extensions = { enabled: extensionsSetting.extensionsEnabled };
-    }
+    admin.secureModeEnabled = secureModeEnabled ?? false;
+    admin.mcp = { enabled: mcpSetting?.mcpEnabled ?? false };
+    admin.extensions = {
+      enabled: cliFeatureSetting?.extensionsSetting?.extensionsEnabled ?? false,
+    };
 
     if (cliFeatureSetting?.advancedFeaturesEnabled !== undefined) {
       admin.skills = { enabled: cliFeatureSetting.advancedFeaturesEnabled };
diff --git a/packages/cli/src/ui/AppContainer.tsx b/packages/cli/src/ui/AppContainer.tsx
index 45ccd33ad0..f08d947eca 100644
--- a/packages/cli/src/ui/AppContainer.tsx
+++ b/packages/cli/src/ui/AppContainer.tsx
@@ -1888,6 +1888,15 @@ Logging in with Google... Restarting Gemini CLI to continue.
       setEmbeddedShellFocused,
       setAuthContext,
       handleRestart: async () => {
+        if (process.send) {
+          const remoteSettings = config.getRemoteAdminSettings();
+          if (remoteSettings) {
+            process.send({
+              type: 'admin-settings-update',
+              settings: remoteSettings,
+            });
+          }
+        }
         await runExitCleanup();
         process.exit(RELAUNCH_EXIT_CODE);
       },
@@ -1963,6 +1972,7 @@ Logging in with Google... Restarting Gemini CLI to continue.
           setAuthContext({});
           setAuthState(AuthState.Updating);
         }}
+        config={config}
       />
     );
   }
diff --git a/packages/cli/src/ui/auth/LoginWithGoogleRestartDialog.test.tsx b/packages/cli/src/ui/auth/LoginWithGoogleRestartDialog.test.tsx
index 907f1447db..ac0966c111 100644
--- a/packages/cli/src/ui/auth/LoginWithGoogleRestartDialog.test.tsx
+++ b/packages/cli/src/ui/auth/LoginWithGoogleRestartDialog.test.tsx
@@ -10,6 +10,7 @@ import { LoginWithGoogleRestartDialog } from './LoginWithGoogleRestartDialog.js'
 import { useKeypress } from '../hooks/useKeypress.js';
 import { runExitCleanup } from '../../utils/cleanup.js';
 import { RELAUNCH_EXIT_CODE } from '../../utils/processUtils.js';
+import { type Config } from '@google/gemini-cli-core';
 
 // Mocks
 vi.mock('../hooks/useKeypress.js', () => ({
@@ -29,6 +30,10 @@ describe('LoginWithGoogleRestartDialog', () => {
     .spyOn(process, 'exit')
     .mockImplementation(() => undefined as never);
 
+  const mockConfig = {
+    getRemoteAdminSettings: vi.fn(),
+  } as unknown as Config;
+
   beforeEach(() => {
     vi.clearAllMocks();
     exitSpy.mockClear();
@@ -37,13 +42,21 @@ describe('LoginWithGoogleRestartDialog', () => {
 
   it('renders correctly', () => {
     const { lastFrame } = render(
-      <LoginWithGoogleRestartDialog onDismiss={onDismiss} />,
+      <LoginWithGoogleRestartDialog
+        onDismiss={onDismiss}
+        config={mockConfig}
+      />,
     );
     expect(lastFrame()).toMatchSnapshot();
   });
 
   it('calls onDismiss when escape is pressed', () => {
-    render(<LoginWithGoogleRestartDialog onDismiss={onDismiss} />);
+    render(
+      <LoginWithGoogleRestartDialog
+        onDismiss={onDismiss}
+        config={mockConfig}
+      />,
+    );
     const keypressHandler = mockedUseKeypress.mock.calls[0][0];
 
     keypressHandler({
@@ -62,7 +75,12 @@ describe('LoginWithGoogleRestartDialog', () => {
     async (keyName) => {
       vi.useFakeTimers();
 
-      render(<LoginWithGoogleRestartDialog onDismiss={onDismiss} />);
+      render(
+        <LoginWithGoogleRestartDialog
+          onDismiss={onDismiss}
+          config={mockConfig}
+        />,
+      );
       const keypressHandler = mockedUseKeypress.mock.calls[0][0];
 
       keypressHandler({
diff --git a/packages/cli/src/ui/auth/LoginWithGoogleRestartDialog.tsx b/packages/cli/src/ui/auth/LoginWithGoogleRestartDialog.tsx
index 0418e3f3f3..03a18bced7 100644
--- a/packages/cli/src/ui/auth/LoginWithGoogleRestartDialog.tsx
+++ b/packages/cli/src/ui/auth/LoginWithGoogleRestartDialog.tsx
@@ -4,6 +4,7 @@
  * SPDX-License-Identifier: Apache-2.0
  */
 
+import { type Config } from '@google/gemini-cli-core';
 import { Box, Text } from 'ink';
 import { theme } from '../semantic-colors.js';
 import { useKeypress } from '../hooks/useKeypress.js';
@@ -12,10 +13,12 @@ import { RELAUNCH_EXIT_CODE } from '../../utils/processUtils.js';
 
 interface LoginWithGoogleRestartDialogProps {
   onDismiss: () => void;
+  config: Config;
 }
 
 export const LoginWithGoogleRestartDialog = ({
   onDismiss,
+  config,
 }: LoginWithGoogleRestartDialogProps) => {
   useKeypress(
     (key) => {
@@ -23,6 +26,15 @@ export const LoginWithGoogleRestartDialog = ({
         onDismiss();
       } else if (key.name === 'r' || key.name === 'R') {
         setTimeout(async () => {
+          if (process.send) {
+            const remoteSettings = config.getRemoteAdminSettings();
+            if (remoteSettings) {
+              process.send({
+                type: 'admin-settings-update',
+                settings: remoteSettings,
+              });
+            }
+          }
           await runExitCleanup();
           process.exit(RELAUNCH_EXIT_CODE);
         }, 100);
diff --git a/packages/cli/src/utils/relaunch.ts b/packages/cli/src/utils/relaunch.ts
index 131caf9bae..c2d987845d 100644
--- a/packages/cli/src/utils/relaunch.ts
+++ b/packages/cli/src/utils/relaunch.ts
@@ -40,6 +40,8 @@ export async function relaunchAppInChildProcess(
     return;
   }
 
+  let latestAdminSettings = remoteAdminSettings;
+
   const runner = () => {
     // process.argv is [node, script, ...args]
     // We want to construct [ ...nodeArgs, script, ...scriptArgs]
@@ -63,10 +65,16 @@ export async function relaunchAppInChildProcess(
       env: newEnv,
     });
 
-    if (remoteAdminSettings) {
-      child.send({ type: 'admin-settings', settings: remoteAdminSettings });
+    if (latestAdminSettings) {
+      child.send({ type: 'admin-settings', settings: latestAdminSettings });
     }
 
+    child.on('message', (msg: { type?: string; settings?: unknown }) => {
+      if (msg.type === 'admin-settings-update' && msg.settings) {
+        latestAdminSettings = msg.settings as FetchAdminControlsResponse;
+      }
+    });
+
     return new Promise<number>((resolve, reject) => {
       child.on('error', reject);
       child.on('close', (code) => {
diff --git a/packages/core/src/code_assist/admin/admin_controls.test.ts b/packages/core/src/code_assist/admin/admin_controls.test.ts
index 22876f10a2..a72fd53fc3 100644
--- a/packages/core/src/code_assist/admin/admin_controls.test.ts
+++ b/packages/core/src/code_assist/admin/admin_controls.test.ts
@@ -170,6 +170,25 @@ describe('Admin Controls', () => {
       expect(mockServer.fetchAdminControls).toHaveBeenCalledTimes(2); // Initial + poll
     });
 
+    it('should return empty object on 403 fetch error and STOP polling', async () => {
+      const error403 = new Error('Forbidden');
+      Object.assign(error403, { status: 403 });
+      (mockServer.fetchAdminControls as Mock).mockRejectedValue(error403);
+
+      const result = await fetchAdminControls(
+        mockServer,
+        undefined,
+        true,
+        mockOnSettingsChanged,
+      );
+
+      expect(result).toEqual({});
+
+      // Advance time - should NOT poll because of 403
+      await vi.advanceTimersByTimeAsync(5 * 60 * 1000);
+      expect(mockServer.fetchAdminControls).toHaveBeenCalledTimes(1); // Only the initial call
+    });
+
     it('should sanitize server response', async () => {
       (mockServer.fetchAdminControls as Mock).mockResolvedValue({
         secureModeEnabled: true,
@@ -302,6 +321,32 @@ describe('Admin Controls', () => {
         secureModeEnabled: true,
       });
     });
+
+    it('should STOP polling if server returns 403', async () => {
+      // Initial fetch is successful
+      (mockServer.fetchAdminControls as Mock).mockResolvedValue({
+        secureModeEnabled: false,
+      });
+      await fetchAdminControls(
+        mockServer,
+        undefined,
+        true,
+        mockOnSettingsChanged,
+      );
+      expect(mockServer.fetchAdminControls).toHaveBeenCalledTimes(1);
+
+      // Next poll returns 403
+      const error403 = new Error('Forbidden');
+      Object.assign(error403, { status: 403 });
+      (mockServer.fetchAdminControls as Mock).mockRejectedValue(error403);
+
+      await vi.advanceTimersByTimeAsync(5 * 60 * 1000);
+      expect(mockServer.fetchAdminControls).toHaveBeenCalledTimes(2);
+
+      // Advance time again - should NOT poll again
+      await vi.advanceTimersByTimeAsync(5 * 60 * 1000);
+      expect(mockServer.fetchAdminControls).toHaveBeenCalledTimes(2);
+    });
   });
 
   describe('stopAdminControlsPolling', () => {
diff --git a/packages/core/src/code_assist/admin/admin_controls.ts b/packages/core/src/code_assist/admin/admin_controls.ts
index 93af330ecb..e2feaf9414 100644
--- a/packages/core/src/code_assist/admin/admin_controls.ts
+++ b/packages/core/src/code_assist/admin/admin_controls.ts
@@ -25,6 +25,15 @@ export function sanitizeAdminSettings(
   return result.data;
 }
 
+function isGaxiosError(error: unknown): error is { status: number } {
+  return (
+    typeof error === 'object' &&
+    error !== null &&
+    'status' in error &&
+    typeof (error as { status: unknown }).status === 'number'
+  );
+}
+
 /**
  * Fetches the admin controls from the server if enabled by experiment flag.
  * Safely handles polling start/stop based on the flag and server availability.
@@ -64,6 +73,12 @@ export async function fetchAdminControls(
     startAdminControlsPolling(server, server.projectId, onSettingsChanged);
     return sanitizedSettings;
   } catch (e) {
+    // Non-enterprise users don't have access to fetch settings.
+    if (isGaxiosError(e) && e.status === 403) {
+      stopAdminControlsPolling();
+      currentSettings = undefined;
+      return {};
+    }
     debugLogger.error('Failed to fetch admin controls: ', e);
     // If initial fetch fails, start polling to retry.
     currentSettings = {};
@@ -95,6 +110,12 @@ function startAdminControlsPolling(
           onSettingsChanged(newSettings);
         }
       } catch (e) {
+        // Non-enterprise users don't have access to fetch settings.
+        if (isGaxiosError(e) && e.status === 403) {
+          stopAdminControlsPolling();
+          currentSettings = undefined;
+          return;
+        }
         debugLogger.error('Failed to poll admin controls: ', e);
       }
     },