diff --git a/models/licenses/update_stream_config.go b/models/licenses/update_stream_config.go
index d3a562cac1..430a3dc51f 100644
--- a/models/licenses/update_stream_config.go
+++ b/models/licenses/update_stream_config.go
@@ -82,6 +82,12 @@ func (c *UpdateStreamConfig) GetCustomStreams() []StreamDef {
 	return streams
 }
 
+// DeleteRepoConfig removes the repo-level update stream config override.
+func DeleteRepoConfig(ctx context.Context, repoID int64) error {
+	_, err := db.GetEngine(ctx).Where("repo_id = ?", repoID).Delete(new(UpdateStreamConfig))
+	return err
+}
+
 // GetActiveStreams returns the effective streams for this config.
 func (c *UpdateStreamConfig) GetActiveStreams() []StreamDef {
 	if c.StreamMode == "custom" {
diff --git a/routers/web/repo/setting/licensing.go b/routers/web/repo/setting/licensing.go
index 4b76e4fe16..2172f8bcf3 100644
--- a/routers/web/repo/setting/licensing.go
+++ b/routers/web/repo/setting/licensing.go
@@ -34,27 +34,36 @@ func LicensingSettingsPost(ctx *context.Context) {
 		updatePlatform = "joomla"
 	}
 
-	updateCfg := &licenses_model.UpdateStreamConfig{
-		OwnerID:          repo.OwnerID,
-		RepoID:           repo.ID,
-		Platform:         updatePlatform,
-		LicensingEnabled: ctx.FormString("enable_licensing") == "on",
-		RequireKey:       ctx.FormString("require_update_key") == "on",
-		DownloadGating:   ctx.FormString("download_gating"),
-		SupportURL:       ctx.FormString("support_url"),
-		ExtensionName:    ctx.FormString("extension_name"),
-		DisplayName:      ctx.FormString("display_name"),
-		ExtensionType:    ctx.FormString("extension_type"),
-		TargetVersion:    ctx.FormString("target_version"),
-		Maintainer:       ctx.FormString("maintainer"),
-		PHPMinimum:       ctx.FormString("php_minimum"),
-		StreamMode:       "joomla",
-	}
+	enabled := ctx.FormString("enable_licensing") == "on"
 
-	if err := licenses_model.SaveConfig(ctx, updateCfg); err != nil {
-		log.Error("SaveConfig: %v", err)
-		ctx.ServerError("SaveConfig", err)
-		return
+	if !enabled {
+		// Remove repo-level override so org config takes effect
+		if err := licenses_model.DeleteRepoConfig(ctx, repo.ID); err != nil {
+			log.Error("DeleteRepoConfig: %v", err)
+		}
+	} else {
+		updateCfg := &licenses_model.UpdateStreamConfig{
+			OwnerID:          repo.OwnerID,
+			RepoID:           repo.ID,
+			Platform:         updatePlatform,
+			LicensingEnabled: true,
+			RequireKey:       ctx.FormString("require_update_key") == "on",
+			DownloadGating:   ctx.FormString("download_gating"),
+			SupportURL:       ctx.FormString("support_url"),
+			ExtensionName:    ctx.FormString("extension_name"),
+			DisplayName:      ctx.FormString("display_name"),
+			ExtensionType:    ctx.FormString("extension_type"),
+			TargetVersion:    ctx.FormString("target_version"),
+			Maintainer:       ctx.FormString("maintainer"),
+			PHPMinimum:       ctx.FormString("php_minimum"),
+			StreamMode:       "joomla",
+		}
+
+		if err := licenses_model.SaveConfig(ctx, updateCfg); err != nil {
+			log.Error("SaveConfig: %v", err)
+			ctx.ServerError("SaveConfig", err)
+			return
+		}
 	}
 
 	ctx.Flash.Success(ctx.Tr("repo.settings.update_settings_success"))
diff --git a/routers/web/repo/setting/setting.go b/routers/web/repo/setting/setting.go
index d0620c5d03..7ec3fd53e5 100644
--- a/routers/web/repo/setting/setting.go
+++ b/routers/web/repo/setting/setting.go
@@ -675,29 +675,37 @@ func handleSettingsPostAdvanced(ctx *context.Context) {
 			return
 		}
 	}
-	// Save update server platform and require-key settings.
-	updatePlatform := form.UpdatePlatform
-	if updatePlatform == "" {
-		updatePlatform = "joomla"
-	}
-	updateCfg := &licenses_model.UpdateStreamConfig{
-		OwnerID:          repo.OwnerID,
-		RepoID:           repo.ID,
-		Platform:         updatePlatform,
-		LicensingEnabled: form.EnableLicensing,
-		RequireKey:       form.RequireUpdateKey,
-		DownloadGating:   form.DownloadGating,
-		SupportURL:       form.SupportURL,
-		ExtensionName:    form.ExtensionName,
-		DisplayName:      form.DisplayName,
-		ExtensionType:    form.ExtensionType,
-		TargetVersion:    form.TargetVersion,
-		Maintainer:       form.Maintainer,
-		PHPMinimum:       form.PHPMinimum,
-		StreamMode:       "joomla", // inherit org default
-	}
-	if err := licenses_model.SaveConfig(ctx, updateCfg); err != nil {
-		log.Error("SaveConfig: %v", err)
+	// Save update server settings. If disabled, delete repo-level config
+	// so it falls through to org defaults cleanly.
+	if !form.EnableLicensing {
+		// Remove repo-level override so org config takes effect
+		if err := licenses_model.DeleteRepoConfig(ctx, repo.ID); err != nil {
+			log.Error("DeleteRepoConfig: %v", err)
+		}
+	} else {
+		updatePlatform := form.UpdatePlatform
+		if updatePlatform == "" {
+			updatePlatform = "joomla"
+		}
+		updateCfg := &licenses_model.UpdateStreamConfig{
+			OwnerID:          repo.OwnerID,
+			RepoID:           repo.ID,
+			Platform:         updatePlatform,
+			LicensingEnabled: form.EnableLicensing,
+			RequireKey:       form.RequireUpdateKey,
+			DownloadGating:   form.DownloadGating,
+			SupportURL:       form.SupportURL,
+			ExtensionName:    form.ExtensionName,
+			DisplayName:      form.DisplayName,
+			ExtensionType:    form.ExtensionType,
+			TargetVersion:    form.TargetVersion,
+			Maintainer:       form.Maintainer,
+			PHPMinimum:       form.PHPMinimum,
+			StreamMode:       "joomla",
+		}
+		if err := licenses_model.SaveConfig(ctx, updateCfg); err != nil {
+			log.Error("SaveConfig: %v", err)
+		}
 	}
 
 	log.Trace("Repository advanced settings updated: %s/%s", ctx.Repo.Owner.Name, repo.Name)