diff --git a/backend/app/routers/auth.py b/backend/app/routers/auth.py
index afb7289..053ed04 100644
--- a/backend/app/routers/auth.py
+++ b/backend/app/routers/auth.py
@@ -553,6 +553,7 @@ async def auth_status(
         "has_passkeys": has_passkeys,
         "passkey_count": passkey_count,
         "passwordless_enabled": passwordless_enabled,
+        "allow_passwordless": config.allow_passwordless if config else False,
     }
 
 
diff --git a/frontend/src/components/layout/LockOverlay.tsx b/frontend/src/components/layout/LockOverlay.tsx
index 901b50d..9f39013 100644
--- a/frontend/src/components/layout/LockOverlay.tsx
+++ b/frontend/src/components/layout/LockOverlay.tsx
@@ -39,14 +39,6 @@ export default function LockOverlay() {
     }
   }, [isLocked, showPasswordForm]);
 
-  // Auto-trigger passkey unlock when passwordless mode is enabled
-  useEffect(() => {
-    if (isLocked && passwordlessEnabled && supportsWebAuthn && !isPasskeyUnlocking) {
-      handlePasskeyUnlock();
-    }
-    // eslint-disable-next-line react-hooks/exhaustive-deps
-  }, [isLocked, passwordlessEnabled]);
-
   if (!isLocked) return null;
 
   const preferredName = settings?.preferred_name;
diff --git a/frontend/src/components/settings/PasskeySection.tsx b/frontend/src/components/settings/PasskeySection.tsx
index e1f7010..065178f 100644
--- a/frontend/src/components/settings/PasskeySection.tsx
+++ b/frontend/src/components/settings/PasskeySection.tsx
@@ -137,7 +137,7 @@ function PasskeyDeleteButton({ credential, onDelete, isDeleting }: DeleteConfirm
 
 export default function PasskeySection() {
   const queryClient = useQueryClient();
-  const { passwordlessEnabled, passkeyCount } = useAuth();
+  const { passwordlessEnabled, passkeyCount, allowPasswordless } = useAuth();
 
   // Registration state
   const [registerDialogOpen, setRegisterDialogOpen] = useState(false);
@@ -376,39 +376,41 @@ export default function PasskeySection() {
           {hasPasskeys ? 'Add another passkey' : 'Add a passkey'}
         </Button>
 
-        {/* Passwordless login section */}
-        <Separator />
+        {/* Passwordless login section — hidden when admin hasn't enabled the feature */}
+        {(allowPasswordless || passwordlessEnabled) && <Separator />}
 
-        <div className="flex items-start justify-between gap-4">
-          <div className="space-y-1">
-            <div className="flex items-center gap-2">
-              <Fingerprint className="h-4 w-4 text-muted-foreground" />
-              <Label className="text-sm font-medium">Passwordless Login</Label>
-            </div>
-            <p className="text-xs text-muted-foreground">
-              Skip the password prompt and unlock the app using a passkey only.
-            </p>
-            {passkeyCount < 2 && (
-              <p className="text-xs text-amber-400">
-                Requires at least 2 registered passkeys as a fallback.
+        {(allowPasswordless || passwordlessEnabled) && (
+          <div className="flex items-start justify-between gap-4">
+            <div className="space-y-1">
+              <div className="flex items-center gap-2">
+                <Fingerprint className="h-4 w-4 text-muted-foreground" />
+                <Label className="text-sm font-medium">Passwordless Login</Label>
+              </div>
+              <p className="text-xs text-muted-foreground">
+                Skip the password prompt and unlock the app using a passkey only.
               </p>
-            )}
+              {passkeyCount < 2 && !passwordlessEnabled && (
+                <p className="text-xs text-amber-400">
+                  Requires at least 2 registered passkeys as a fallback.
+                </p>
+              )}
+            </div>
+            <Switch
+              checked={passwordlessEnabled}
+              onCheckedChange={(checked) => {
+                if (checked) {
+                  setEnablePassword('');
+                  setEnableDialogOpen(true);
+                } else {
+                  setDisableDialogOpen(true);
+                  disablePasswordlessMutation.mutate();
+                }
+              }}
+              disabled={(!passwordlessEnabled && passkeyCount < 2) || enablePasswordlessMutation.isPending || disablePasswordlessMutation.isPending}
+              aria-label="Toggle passwordless login"
+            />
           </div>
-          <Switch
-            checked={passwordlessEnabled}
-            onCheckedChange={(checked) => {
-              if (checked) {
-                setEnablePassword('');
-                setEnableDialogOpen(true);
-              } else {
-                setDisableDialogOpen(true);
-                disablePasswordlessMutation.mutate();
-              }
-            }}
-            disabled={(!passwordlessEnabled && passkeyCount < 2) || enablePasswordlessMutation.isPending || disablePasswordlessMutation.isPending}
-            aria-label="Toggle passwordless login"
-          />
-        </div>
+        )}
 
         {/* Enable passwordless dialog */}
         <Dialog open={enableDialogOpen} onOpenChange={(open) => {
diff --git a/frontend/src/hooks/useAuth.ts b/frontend/src/hooks/useAuth.ts
index a8b6cb5..8910b1a 100644
--- a/frontend/src/hooks/useAuth.ts
+++ b/frontend/src/hooks/useAuth.ts
@@ -154,5 +154,6 @@ export function useAuth() {
     hasPasskeys: authQuery.data?.has_passkeys ?? false,
     passkeyCount: authQuery.data?.passkey_count ?? 0,
     passwordlessEnabled: authQuery.data?.passwordless_enabled ?? false,
+    allowPasswordless: authQuery.data?.allow_passwordless ?? false,
   };
 }
diff --git a/frontend/src/types/index.ts b/frontend/src/types/index.ts
index f7b2f02..b93d7ed 100644
--- a/frontend/src/types/index.ts
+++ b/frontend/src/types/index.ts
@@ -246,6 +246,7 @@ export interface AuthStatus {
   has_passkeys: boolean;
   passkey_count: number;
   passwordless_enabled: boolean;
+  allow_passwordless: boolean;
 }
 
 export interface PasskeyCredential {