diff --git a/zerver/actions/streams.py b/zerver/actions/streams.py
index 39fddbc372..3e0a9513ed 100644
--- a/zerver/actions/streams.py
+++ b/zerver/actions/streams.py
@@ -1495,7 +1495,9 @@ def do_change_stream_description(
 ) -> None:
     old_description = stream.description
     stream.description = new_description
-    stream.rendered_description = render_stream_description(new_description, stream.realm)
+    stream.rendered_description = render_stream_description(
+        new_description, stream.realm, acting_user=acting_user
+    )
     stream.save(update_fields=["description", "rendered_description"])
     RealmAuditLog.objects.create(
         realm=stream.realm,
diff --git a/zerver/lib/streams.py b/zerver/lib/streams.py
index 58835c0b36..822289013c 100644
--- a/zerver/lib/streams.py
+++ b/zerver/lib/streams.py
@@ -128,10 +128,14 @@ def get_default_value_for_history_public_to_subscribers(
     return history_public_to_subscribers
 
 
-def render_stream_description(text: str, realm: Realm) -> str:
+def render_stream_description(
+    text: str, realm: Realm, *, acting_user: UserProfile | None = None
+) -> str:
     from zerver.lib.markdown import markdown_convert
 
-    return markdown_convert(text, message_realm=realm, no_previews=True).rendered_content
+    return markdown_convert(
+        text, message_realm=realm, no_previews=True, acting_user=acting_user
+    ).rendered_content
 
 
 def send_stream_creation_event(
@@ -258,7 +262,9 @@ def create_stream_if_needed(
         recipient = Recipient.objects.create(type_id=stream.id, type=Recipient.STREAM)
 
         stream.recipient = recipient
-        stream.rendered_description = render_stream_description(stream_description, realm)
+        stream.rendered_description = render_stream_description(
+            stream_description, realm, acting_user=acting_user
+        )
         stream.save(update_fields=["recipient", "rendered_description"])
 
         event_time = timezone_now()
diff --git a/zerver/tests/test_subs.py b/zerver/tests/test_subs.py
index 7ff926207a..9118051e01 100644
--- a/zerver/tests/test_subs.py
+++ b/zerver/tests/test_subs.py
@@ -395,6 +395,39 @@ class TestCreateStreams(ZulipTestCase):
         stream = get_stream("new_stream", realm)
         self.assertEqual(stream.description, "multi line description")
 
+    def test_create_api_topic_permalink_description(self) -> None:
+        user = self.example_user("iago")
+        realm = user.realm
+        self.login_user(user)
+
+        hamlet = self.example_user("hamlet")
+        core_stream = self.make_stream("core", realm, True, history_public_to_subscribers=True)
+        self.subscribe(hamlet, "core")
+        msg_id = self.send_stream_message(hamlet, "core", topic_name="testing")
+
+        # Test permalink not generated for description since user has no access to
+        # the channel.
+        subscriptions = [{"name": "stream1", "description": "#**core>testing**"}]
+        result = self.subscribe_via_post(user, subscriptions, subdomain="zulip")
+        self.assert_json_success(result)
+        stream = get_stream("stream1", realm)
+
+        self.assertEqual(stream.rendered_description, "<p>#<strong>core&gt;testing</strong></p>")
+
+        self.subscribe(user, "core")
+
+        # Test permalink generated for the description since user now has access
+        # to the channel.
+        subscriptions = [{"name": "stream2", "description": "#**core>testing**"}]
+        result = self.subscribe_via_post(user, subscriptions, subdomain="zulip")
+        self.assert_json_success(result)
+        stream = get_stream("stream2", realm)
+
+        self.assertEqual(
+            stream.rendered_description,
+            f'<p><a class="stream-topic" data-stream-id="{core_stream.id}" href="/#narrow/channel/{core_stream.id}-core/topic/testing/with/{msg_id}">#{core_stream.name} &gt; testing</a></p>',
+        )
+
     def test_history_public_to_subscribers_on_stream_creation(self) -> None:
         realm = get_realm("zulip")
         stream_dicts: list[StreamDict] = [
@@ -2434,6 +2467,42 @@ class StreamAdminTest(ZulipTestCase):
         )
         self.assert_json_success(result)
 
+        # Verify that we render topic permalinks in the description depending
+        # on whether the acting_user has access to that channel.
+        hamlet = self.example_user("hamlet")
+        core_stream = self.make_stream("core", realm, True, history_public_to_subscribers=True)
+
+        self.subscribe(hamlet, "core")
+        msg_id = self.send_stream_message(hamlet, "core", topic_name="testing")
+
+        result = self.client_patch(
+            f"/json/streams/{stream_id}",
+            {"description": "#**core>testing**"},
+        )
+
+        stream = get_stream("stream_name1", realm)
+
+        # permalink is not rendered since acting_user has no access to channel.
+        self.assertEqual(
+            stream.rendered_description,
+            "<p>#<strong>core&gt;testing</strong></p>",
+        )
+
+        self.subscribe(user_profile, "core")
+
+        result = self.client_patch(
+            f"/json/streams/{stream_id}",
+            {"description": "#**core>testing**"},
+        )
+
+        stream = get_stream("stream_name1", realm)
+
+        # permalink is rendered since acting_user now has access to channel.
+        self.assertEqual(
+            stream.rendered_description,
+            f'<p><a class="stream-topic" data-stream-id="{core_stream.id}" href="/#narrow/channel/{core_stream.id}-core/topic/testing/with/{msg_id}">#{core_stream.name} &gt; testing</a></p>',
+        )
+
     def test_change_stream_description_requires_administer_channel_permissions(self) -> None:
         user_profile = self.example_user("hamlet")
         self.login_user(user_profile)