diff --git a/web/src/admin.js b/web/src/admin.js
index 17ccd514e2..b2385120ae 100644
--- a/web/src/admin.js
+++ b/web/src/admin.js
@@ -182,6 +182,7 @@ export function build_page() {
         can_create_multiuse_invite: settings_data.user_can_create_multiuse_invite(),
         can_invite_users_by_email: settings_data.user_can_invite_users_by_email(),
         realm_invite_required: realm.realm_invite_required,
+        can_create_user_groups: settings_data.user_can_create_user_groups(),
         policy_values: settings_config.common_policy_values,
         realm_can_delete_any_message_group: realm.realm_can_delete_any_message_group,
         realm_delete_own_message_policy: realm.realm_delete_own_message_policy,
diff --git a/web/src/hash_util.ts b/web/src/hash_util.ts
index 74ab27a878..b3a67d3a81 100644
--- a/web/src/hash_util.ts
+++ b/web/src/hash_util.ts
@@ -248,7 +248,7 @@ export function validate_group_settings_hash(hash: string): string {
     const hash_components = hash.slice(1).split(/\//);
     const section = hash_components[1];
 
-    const can_create_groups = settings_data.user_can_edit_user_groups();
+    const can_create_groups = settings_data.user_can_create_user_groups();
     if (section === "new" && !can_create_groups) {
         return "#groups/your";
     }
diff --git a/web/src/settings_data.ts b/web/src/settings_data.ts
index f95aeb724f..094526dc95 100644
--- a/web/src/settings_data.ts
+++ b/web/src/settings_data.ts
@@ -185,6 +185,10 @@ export function can_edit_user_group(group_id: number): boolean {
     return user_groups.is_direct_member_of(current_user.user_id, group_id);
 }
 
+export function user_can_create_user_groups(): boolean {
+    return user_has_permission(realm.realm_user_group_edit_policy);
+}
+
 export function user_can_add_custom_emoji(): boolean {
     return user_has_permission(realm.realm_add_custom_emoji_policy);
 }
diff --git a/web/src/user_group_edit.js b/web/src/user_group_edit.js
index 3f65ded63f..7640078a31 100644
--- a/web/src/user_group_edit.js
+++ b/web/src/user_group_edit.js
@@ -726,7 +726,7 @@ export function setup_page(callback) {
 
     function populate_and_fill() {
         const template_data = {
-            can_create_or_edit_user_groups: settings_data.user_can_edit_user_groups(),
+            can_create_user_groups: settings_data.user_can_create_user_groups(),
             max_user_group_name_length,
         };
 
diff --git a/web/templates/user_group_settings/user_group_settings_overlay.hbs b/web/templates/user_group_settings/user_group_settings_overlay.hbs
index 7f40cbf68f..bcadd78e5b 100644
--- a/web/templates/user_group_settings/user_group_settings_overlay.hbs
+++ b/web/templates/user_group_settings/user_group_settings_overlay.hbs
@@ -11,7 +11,7 @@
             <div class="left">
                 <div class="list-toggler-container">
                     <div id="add_new_user_group">
-                        {{#if can_create_or_edit_user_groups}}
+                        {{#if can_create_user_groups}}
                         <button class="create_user_group_button create_user_group_plus_button">
                             <span class="create_button_plus_sign">+</span>
                         </button>
@@ -36,7 +36,7 @@
                     <div class="all_groups_tab_empty_text">
                         <span class="settings-empty-option-text">
                             {{t 'There are no user groups you can view in this organization.'}}
-                            {{#if can_create_or_edit_user_groups}}
+                            {{#if can_create_user_groups}}
                                 <a href="#groups/new">{{t 'Create a user group'}}</a>
                             {{/if}}
                         </span>
@@ -50,7 +50,7 @@
                     <div id="user_group_settings_title" class="user-group-info-title">{{t 'User group settings' }}</div>
                 </div>
                 <div class="nothing-selected">
-                    {{#if can_create_or_edit_user_groups}}
+                    {{#if can_create_user_groups}}
                     <button type="button" class="create_user_group_button animated-purple-button">{{t 'Create user group' }}</button>
                     <span class="settings-empty-option-text">
                         {{#tr}}
diff --git a/web/tests/settings_data.test.js b/web/tests/settings_data.test.js
index bdfc25a18f..56f19ae143 100644
--- a/web/tests/settings_data.test.js
+++ b/web/tests/settings_data.test.js
@@ -156,6 +156,11 @@ test_policy(
     "realm_move_messages_between_streams_policy",
     settings_data.user_can_move_messages_between_streams,
 );
+test_policy(
+    "user_can_create_user_groups",
+    "realm_user_group_edit_policy",
+    settings_data.user_can_create_user_groups,
+);
 test_policy(
     "user_can_edit_user_groups",
     "realm_user_group_edit_policy",