diff --git a/cmd/serverless/main.go b/cmd/serverless/main.go
index 68865f96aa14e..3d0fdc9a9104e 100644
--- a/cmd/serverless/main.go
+++ b/cmd/serverless/main.go
@@ -336,7 +336,8 @@ func startOtlpAgent(wg *sync.WaitGroup, metricAgent *metrics.ServerlessMetricAge
 
 func startTraceAgent(wg *sync.WaitGroup, lambdaSpanChan chan *pb.Span, coldStartSpanId uint64, serverlessDaemon *daemon.Daemon) {
 	defer wg.Done()
-	traceAgent := trace.StartServerlessTraceAgent(pkgconfigsetup.Datadog().GetBool("apm_config.enabled"), &trace.LoadConfig{Path: datadogConfigPath}, lambdaSpanChan, coldStartSpanId)
+	apmEnabled := configUtils.IsDefaultPayloadsEnabled(pkgconfigsetup.Datadog()) && pkgconfigsetup.Datadog().GetBool("apm_config.enabled")
+	traceAgent := trace.StartServerlessTraceAgent(apmEnabled, &trace.LoadConfig{Path: datadogConfigPath}, lambdaSpanChan, coldStartSpanId)
 	serverlessDaemon.SetTraceAgent(traceAgent)
 }
 
diff --git a/comp/trace/config/setup.go b/comp/trace/config/setup.go
index ab9361127c633..28ffcd0176dcb 100644
--- a/comp/trace/config/setup.go
+++ b/comp/trace/config/setup.go
@@ -196,7 +196,8 @@ func applyDatadogConfig(c *config.AgentConfig, core corecompcfg.Component) error
 		c.SkipSSLValidation = core.GetBool("skip_ssl_validation")
 	}
 	if core.IsSet("apm_config.enabled") {
-		c.Enabled = core.GetBool("apm_config.enabled")
+		isAPMEnabled := core.GetBool("apm_config.enabled") && utils.IsDefaultPayloadsEnabled(core)
+		c.Enabled = isAPMEnabled
 	}
 	if pkgconfigsetup.Datadog().IsSet("apm_config.log_file") {
 		c.LogFilePath = pkgconfigsetup.Datadog().GetString("apm_config.log_file")
diff --git a/pkg/config/setup/config.go b/pkg/config/setup/config.go
index 9c535190419da..5dcca17bc5604 100644
--- a/pkg/config/setup/config.go
+++ b/pkg/config/setup/config.go
@@ -1020,10 +1020,6 @@ func InitConfig(config pkgconfigmodel.Setup) {
 	config.SetKnown("reverse_dns_enrichment.rate_limiter.throttle_error_threshold")
 	config.SetKnown("reverse_dns_enrichment.rate_limiter.recovery_intervals")
 	config.BindEnvAndSetDefault("reverse_dns_enrichment.rate_limiter.recovery_interval", time.Duration(0))
-
-	// Default payloads (disabled for Error Tracking Standalone, Logs Collection Only)
-	config.BindEnvAndSetDefault("default_payloads.enabled", true)
-	pkgconfigmodel.AddOverrideFunc(toggleDefaultPayloads)
 }
 
 func agent(config pkgconfigmodel.Setup) {
@@ -1115,6 +1111,10 @@ func agent(config pkgconfigmodel.Setup) {
 	config.SetKnown("proxy.http")
 	config.SetKnown("proxy.https")
 	config.SetKnown("proxy.no_proxy")
+
+	// Default payloads (disabled for Error Tracking Standalone, Logs Collection Only)
+	config.BindEnvAndSetDefault("default_payloads.enabled", true)
+	pkgconfigmodel.AddOverrideFunc(toggleDefaultPayloads)
 }
 
 func fips(config pkgconfigmodel.Setup) {
@@ -2578,7 +2578,7 @@ func GetRemoteConfigurationAllowedIntegrations(cfg pkgconfigmodel.Reader) map[st
 	return allowMap
 }
 
-// IsAgentTelemetryEnabled returns true if Agent Telemetry ise enabled
+// IsAgentTelemetryEnabled returns true if Agent Telemetry is enabled
 func IsAgentTelemetryEnabled(cfg pkgconfigmodel.Reader) bool {
 	// Disable Agent Telemetry for GovCloud
 	if cfg.GetBool("fips.enabled") || cfg.GetString("site") == "ddog-gov.com" {
diff --git a/pkg/config/utils/miscellaneous.go b/pkg/config/utils/miscellaneous.go
index 18f87b9ade392..1a09260387b24 100644
--- a/pkg/config/utils/miscellaneous.go
+++ b/pkg/config/utils/miscellaneous.go
@@ -31,3 +31,21 @@ func SetLogLevel(level string, config pkgconfigmodel.Writer, source pkgconfigmod
 	config.Set("log_level", seelogLogLevel, source)
 	return nil
 }
+
+// IsDefaultPayloadsEnabled checks if the Agent is able to send the payloads it and other Agents need to function with
+func IsDefaultPayloadsEnabled(cfg pkgconfigmodel.Reader) bool {
+	if !cfg.GetBool("default_payloads.enabled") {
+		return false
+	}
+
+	// default_payloads.enabled can be true but the following payloads if set to false means
+	// default_payloads are disabled
+	if !cfg.GetBool("enable_payloads.events") &&
+		!cfg.GetBool("enable_payloads.series") &&
+		!cfg.GetBool("enable_payloads.service_checks") &&
+		!cfg.GetBool("enable_payloads.sketches") {
+		return false
+	}
+
+	return true
+}
diff --git a/pkg/config/utils/miscellaneous_test.go b/pkg/config/utils/miscellaneous_test.go
new file mode 100644
index 0000000000000..7cd1dbff7fd43
--- /dev/null
+++ b/pkg/config/utils/miscellaneous_test.go
@@ -0,0 +1,66 @@
+// Unless explicitly stated otherwise all files in this repository are licensed
+// under the Apache License Version 2.0.
+// This product includes software developed at Datadog (https://www.datadoghq.com/).
+// Copyright 2016-present Datadog, Inc.
+
+package utils
+
+import (
+	"github.com/stretchr/testify/assert"
+	"testing"
+
+	configmock "github.com/DataDog/datadog-agent/pkg/config/mock"
+	"github.com/DataDog/datadog-agent/pkg/config/model"
+)
+
+func TestIsDefaultPayloadsEnabled(t *testing.T) {
+
+	tests := []struct {
+		name      string
+		expected  bool
+		setConfig func(m model.Config)
+	}{
+		{
+			name:     "default_payloads.enabled false",
+			expected: false,
+			setConfig: func(m model.Config) {
+				m.SetWithoutSource("default_payloads.enabled", false)
+			},
+		},
+		{
+			name:     "All enable_payloads.enabled false",
+			expected: false,
+			setConfig: func(m model.Config) {
+				m.SetWithoutSource("enable_payloads.events", false)
+				m.SetWithoutSource("enable_payloads.series", false)
+				m.SetWithoutSource("enable_payloads.service_checks", false)
+				m.SetWithoutSource("enable_payloads.sketches", false)
+			},
+		},
+		{
+			name:     "Some enable_payloads.enabled false",
+			expected: true,
+			setConfig: func(m model.Config) {
+				m.SetWithoutSource("enable_payloads.events", false)
+				m.SetWithoutSource("enable_payloads.series", true)
+				m.SetWithoutSource("enable_payloads.service_checks", false)
+				m.SetWithoutSource("enable_payloads.sketches", true)
+			},
+		},
+		{
+			name:      "default values",
+			expected:  true,
+			setConfig: func(_ model.Config) {},
+		},
+	}
+
+	for _, test := range tests {
+		t.Run(test.name, func(t *testing.T) {
+			mockConfig := configmock.New(t)
+			test.setConfig(mockConfig)
+			assert.Equal(t,
+				test.expected, IsDefaultPayloadsEnabled(mockConfig),
+				"Was expecting IsDefaultPayloadsEnabled to return", test.expected)
+		})
+	}
+}