diff --git a/features/identity-core/org.wso2.carbon.identity.core.server.feature/resources/identity.xml.j2 b/features/identity-core/org.wso2.carbon.identity.core.server.feature/resources/identity.xml.j2
index 0d90b8ec0420..9b3d9becafaf 100644
--- a/features/identity-core/org.wso2.carbon.identity.core.server.feature/resources/identity.xml.j2
+++ b/features/identity-core/org.wso2.carbon.identity.core.server.feature/resources/identity.xml.j2
@@ -95,6 +95,9 @@
             <Tenant>{{tenant}}</Tenant>
             {% endfor %}
         </LegacyTenants>
+        <SMSTemplates>
+            <Apply>{{notification_templates.sms_templates.apply}}</Apply>
+        </SMSTemplates>
     </NotificationTemplates>
 
     <!-- Time configurations are in minutes -->
diff --git a/features/identity-core/org.wso2.carbon.identity.core.server.feature/resources/org.wso2.carbon.identity.core.server.feature.default.json b/features/identity-core/org.wso2.carbon.identity.core.server.feature/resources/org.wso2.carbon.identity.core.server.feature.default.json
index 218e80dbd776..5ebee48daabe 100644
--- a/features/identity-core/org.wso2.carbon.identity.core.server.feature/resources/org.wso2.carbon.identity.core.server.feature.default.json
+++ b/features/identity-core/org.wso2.carbon.identity.core.server.feature/resources/org.wso2.carbon.identity.core.server.feature.default.json
@@ -1690,6 +1690,8 @@
 
   "oauth.authorize_all_scopes": false,
 
-  "system_applications.system_portals": ["Console", "My Account"]
+  "system_applications.system_portals": ["Console", "My Account"],
+
+  "notification_templates.sms_templates.apply": true
 }