diff --git a/common/schema-builder/src/main/java/io/smallrye/graphql/schema/SchemaBuilder.java b/common/schema-builder/src/main/java/io/smallrye/graphql/schema/SchemaBuilder.java
index f9b382c24..4cc790c13 100644
--- a/common/schema-builder/src/main/java/io/smallrye/graphql/schema/SchemaBuilder.java
+++ b/common/schema-builder/src/main/java/io/smallrye/graphql/schema/SchemaBuilder.java
@@ -69,6 +69,8 @@ public class SchemaBuilder {
     private final DirectiveTypeCreator directiveTypeCreator;
     private final UnionCreator unionCreator;
 
+    private final DotName FEDERATION_ANNOTATIONS_PACKAGE = DotName.createSimple("io.smallrye.graphql.api.federation");
+
     /**
      * This builds the Schema from Jandex
      *
@@ -160,7 +162,13 @@ private void addDirectiveTypes(Schema schema) {
         // custom directives from annotations
         for (AnnotationInstance annotationInstance : ScanningContext.getIndex().getAnnotations(DIRECTIVE)) {
             ClassInfo classInfo = annotationInstance.target().asClass();
-            schema.addDirectiveType(directiveTypeCreator.create(classInfo));
+            boolean federationEnabled = Boolean.getBoolean("smallrye.graphql.federation.enabled");
+            // only add federation-related directive types to the schema if federation is enabled
+            DotName packageName = classInfo.name().packagePrefixName();
+            if (packageName == null || !packageName.equals(FEDERATION_ANNOTATIONS_PACKAGE) || federationEnabled) {
+                schema.addDirectiveType(directiveTypeCreator.create(classInfo));
+            }
+
         }
         // bean validation directives
         schema.addDirectiveType(BeanValidationDirectivesHelper.CONSTRAINT_DIRECTIVE_TYPE);
diff --git a/server/implementation/src/test/java/io/smallrye/graphql/schema/SchemaTest.java b/server/implementation/src/test/java/io/smallrye/graphql/schema/SchemaTest.java
index becceb117..11bfd425f 100644
--- a/server/implementation/src/test/java/io/smallrye/graphql/schema/SchemaTest.java
+++ b/server/implementation/src/test/java/io/smallrye/graphql/schema/SchemaTest.java
@@ -130,7 +130,7 @@ void testSchemaWithFederationDisabled() {
                 "  testTypeWithFederation(arg: String): TestTypeWithFederation\n" +
                 "}\n" +
                 "\n" +
-                "type TestTypeWithFederation @key(fields : [\"id\"]) {\n" +
+                "type TestTypeWithFederation {\n" +
                 "  id: String\n" +
                 "}\n");
     }
@@ -138,26 +138,32 @@ void testSchemaWithFederationDisabled() {
     @Test
     void testSchemaWithFederation() {
         config.federationEnabled = true;
-        GraphQLSchema graphQLSchema = createGraphQLSchema(Directive.class, Key.class, TestTypeWithFederation.class,
-                FederationTestApi.class);
-
-        assertSchemaEndsWith(graphQLSchema, "\n" +
-                "union _Entity = TestTypeWithFederation\n" +
-                "\n" +
-                "\"Query root\"\n" +
-                "type Query {\n" +
-                "  _entities(representations: [_Any!]!): [_Entity]!\n" +
-                "  _service: _Service!\n" +
-                "  testTypeWithFederation(arg: String): TestTypeWithFederation\n" +
-                "}\n" +
-                "\n" +
-                "type TestTypeWithFederation @key(fields : [\"id\"]) {\n" +
-                "  id: String\n" +
-                "}\n" +
-                "\n" +
-                "type _Service {\n" +
-                "  sdl: String!\n" +
-                "}\n");
+        // need to set it as system property because the SchemaBuilder doesn't have access to the Config object
+        System.setProperty("smallrye.graphql.federation.enabled", "true");
+        try {
+            GraphQLSchema graphQLSchema = createGraphQLSchema(Directive.class, Key.class, TestTypeWithFederation.class,
+                    FederationTestApi.class);
+
+            assertSchemaEndsWith(graphQLSchema, "\n" +
+                    "union _Entity = TestTypeWithFederation\n" +
+                    "\n" +
+                    "\"Query root\"\n" +
+                    "type Query {\n" +
+                    "  _entities(representations: [_Any!]!): [_Entity]!\n" +
+                    "  _service: _Service!\n" +
+                    "  testTypeWithFederation(arg: String): TestTypeWithFederation\n" +
+                    "}\n" +
+                    "\n" +
+                    "type TestTypeWithFederation @key(fields : [\"id\"]) {\n" +
+                    "  id: String\n" +
+                    "}\n" +
+                    "\n" +
+                    "type _Service {\n" +
+                    "  sdl: String!\n" +
+                    "}\n");
+        } finally {
+            System.clearProperty("smallrye.graphql.federation.enabled");
+        }
     }
 
     private GraphQLSchema createGraphQLSchema(Class<?>... api) {
diff --git a/server/tck/pom.xml b/server/tck/pom.xml
index ceee28175..52f59938d 100644
--- a/server/tck/pom.xml
+++ b/server/tck/pom.xml
@@ -132,6 +132,9 @@
                     <suiteXmlFiles>
                         <suiteXmlFile>testng.xml</suiteXmlFile>
                     </suiteXmlFiles>
+                    <systemProperties>
+                        <smallrye.graphql.federation.enabled>true</smallrye.graphql.federation.enabled>
+                    </systemProperties>
                 </configuration>
             </plugin>
             <plugin>