diff --git a/api_docs/changelog.md b/api_docs/changelog.md
index 1fc8a63662..ecc2615b75 100644
--- a/api_docs/changelog.md
+++ b/api_docs/changelog.md
@@ -20,6 +20,14 @@ format used by the Zulip server that they are interacting with.
 
 ## Changes in Zulip 10.0
 
+**Feature level 307**
+
+* `PATCH /realm`, [`GET /events`](/api/get-events),
+  [`POST /register`](/api/register-queue):
+  Added `can_add_custom_emoji_group` realm setting which is a
+  [group-setting value](/api/group-setting-values) describing the set of users
+  with permission to add custom emoji in the organization.
+
 **Feature level 306**
 
 * [`GET /events`](/api/get-events): Removed the `extra_data` optional
diff --git a/version.py b/version.py
index 64c9b2499c..6c73d6df0a 100644
--- a/version.py
+++ b/version.py
@@ -34,7 +34,7 @@ DESKTOP_WARNING_VERSION = "5.9.3"
 # new level means in api_docs/changelog.md, as well as "**Changes**"
 # entries in the endpoint's documentation in `zulip.yaml`.
 
-API_FEATURE_LEVEL = 306  # Last bumped for adding `max_file_upload_size_mib`.
+API_FEATURE_LEVEL = 307  # Last bumped for can_add_custom_emoji_group.
 
 # Bump the minor PROVISION_VERSION to indicate that folks should provision
 # only when going from an old version of the code to a newer version. Bump
diff --git a/web/src/admin.js b/web/src/admin.js
index 2db7ce4cf3..2cd69865ce 100644
--- a/web/src/admin.js
+++ b/web/src/admin.js
@@ -21,6 +21,7 @@ import * as settings_sections from "./settings_sections";
 import * as settings_toggle from "./settings_toggle";
 import * as settings_users from "./settings_users";
 import {current_user, realm} from "./state_data";
+import * as user_groups from "./user_groups";
 
 const admin_settings_label = {
     // Organization profile
@@ -125,7 +126,6 @@ export function build_page() {
         realm_require_unique_names: realm.realm_require_unique_names,
         realm_email_changes_disabled: realm.realm_email_changes_disabled,
         realm_avatar_changes_disabled: realm.realm_avatar_changes_disabled,
-        realm_add_custom_emoji_policy: realm.realm_add_custom_emoji_policy,
         can_add_emojis: settings_data.user_can_add_custom_emoji(),
         can_create_new_bots: settings_bots.can_create_new_bots(),
         realm_message_content_edit_limit_minutes:
@@ -186,6 +186,10 @@ export function build_page() {
         policy_values: settings_config.common_policy_values,
         realm_can_delete_any_message_group: realm.realm_can_delete_any_message_group,
         realm_can_delete_own_message_group: realm.realm_can_delete_own_message_group,
+        realm_can_add_custom_emoji_group: realm.realm_can_add_custom_emoji_group,
+        realm_can_add_custom_emoji_group_name: user_groups.get_user_group_from_id(
+            realm.realm_can_add_custom_emoji_group,
+        ).name,
         ...settings_org.get_organization_settings_options(),
         demote_inactive_streams_values: settings_config.demote_inactive_streams_values,
         web_mark_read_on_scroll_policy_values:
diff --git a/web/src/server_events_dispatch.js b/web/src/server_events_dispatch.js
index 0315d6d352..82abf84d10 100644
--- a/web/src/server_events_dispatch.js
+++ b/web/src/server_events_dispatch.js
@@ -205,7 +205,6 @@ export function dispatch_normal_event(event) {
 
         case "realm": {
             const realm_settings = {
-                add_custom_emoji_policy: settings_emoji.update_custom_emoji_ui,
                 allow_edit_history: noop,
                 allow_message_editing: noop,
                 edit_topic_policy: noop,
@@ -300,6 +299,10 @@ export function dispatch_normal_event(event) {
                                     gear_menu.rerender();
                                 }
 
+                                if (key === "can_add_custom_emoji_group") {
+                                    settings_emoji.update_custom_emoji_ui();
+                                }
+
                                 if (
                                     key === "can_create_public_channel_group" ||
                                     key === "can_create_private_channel_group" ||
diff --git a/web/src/settings_components.ts b/web/src/settings_components.ts
index 80d1a295f2..479c0029c8 100644
--- a/web/src/settings_components.ts
+++ b/web/src/settings_components.ts
@@ -218,7 +218,6 @@ export function get_subsection_property_elements($subsection: JQuery): HTMLEleme
 type simple_dropdown_realm_settings = Pick<
     typeof realm,
     | "realm_invite_to_stream_policy"
-    | "realm_add_custom_emoji_policy"
     | "realm_invite_to_realm_policy"
     | "realm_wildcard_mention_policy"
     | "realm_move_messages_between_streams_policy"
@@ -482,6 +481,7 @@ const dropdown_widget_map = new Map<string, DropdownWidget | null>([
     ["can_remove_subscribers_group", null],
     ["realm_can_access_all_users_group", null],
     ["can_mention_group", null],
+    ["realm_can_add_custom_emoji_group", null],
     ["realm_can_create_groups", null],
     ["realm_can_create_public_channel_group", null],
     ["realm_can_create_private_channel_group", null],
@@ -807,6 +807,7 @@ export function check_realm_settings_property_changed(elem: HTMLElement): boolea
         case "realm_default_code_block_language":
         case "realm_create_multiuse_invite_group":
         case "realm_can_access_all_users_group":
+        case "realm_can_add_custom_emoji_group":
         case "realm_can_create_groups":
         case "realm_can_create_public_channel_group":
         case "realm_can_create_private_channel_group":
@@ -1047,6 +1048,7 @@ export function populate_data_for_realm_settings_request(
                 }
 
                 const realm_group_settings_using_new_api_format = new Set([
+                    "can_add_custom_emoji_group",
                     "can_create_groups",
                     "can_create_private_channel_group",
                     "can_create_public_channel_group",
diff --git a/web/src/settings_data.ts b/web/src/settings_data.ts
index e338236c1f..466be06ca1 100644
--- a/web/src/settings_data.ts
+++ b/web/src/settings_data.ts
@@ -240,7 +240,11 @@ export function user_can_create_user_groups(): boolean {
 }
 
 export function user_can_add_custom_emoji(): boolean {
-    return user_has_permission(realm.realm_add_custom_emoji_policy);
+    return user_has_permission_for_group_setting(
+        realm.realm_can_add_custom_emoji_group,
+        "can_add_custom_emoji_group",
+        "realm",
+    );
 }
 
 export function user_can_move_messages_to_another_topic(): boolean {
diff --git a/web/src/settings_emoji.ts b/web/src/settings_emoji.ts
index 776bd01144..9237603744 100644
--- a/web/src/settings_emoji.ts
+++ b/web/src/settings_emoji.ts
@@ -18,11 +18,11 @@ import * as ListWidget from "./list_widget";
 import * as loading from "./loading";
 import * as people from "./people";
 import * as scroll_util from "./scroll_util";
-import * as settings_config from "./settings_config";
 import * as settings_data from "./settings_data";
 import {current_user, realm} from "./state_data";
 import * as ui_report from "./ui_report";
 import * as upload_widget from "./upload_widget";
+import * as user_groups from "./user_groups";
 import * as util from "./util";
 
 const meta = {
@@ -45,8 +45,9 @@ function can_delete_emoji(emoji: ServerEmoji): boolean {
 
 export function update_custom_emoji_ui(): void {
     const rendered_tip = render_settings_emoji_settings_tip({
-        realm_add_custom_emoji_policy: realm.realm_add_custom_emoji_policy,
-        policy_values: settings_config.common_policy_values,
+        realm_can_add_custom_emoji_group_name: user_groups.get_user_group_from_id(
+            realm.realm_can_add_custom_emoji_group,
+        ).name,
     });
     $("#emoji-settings").find(".emoji-settings-tip-container").html(rendered_tip);
     if (!settings_data.user_can_add_custom_emoji()) {
diff --git a/web/src/settings_org.js b/web/src/settings_org.js
index 80385c3a24..2721823d6f 100644
--- a/web/src/settings_org.js
+++ b/web/src/settings_org.js
@@ -125,7 +125,6 @@ export function get_org_type_dropdown_options() {
 
 const simple_dropdown_properties = [
     "realm_invite_to_stream_policy",
-    "realm_add_custom_emoji_policy",
     "realm_invite_to_realm_policy",
     "realm_wildcard_mention_policy",
     "realm_move_messages_between_streams_policy",
@@ -509,6 +508,7 @@ export function discard_realm_property_element_changes(elem) {
         case "realm_create_multiuse_invite_group":
         case "realm_direct_message_initiator_group":
         case "realm_direct_message_permission_group":
+        case "realm_can_add_custom_emoji_group":
         case "realm_can_access_all_users_group":
         case "realm_can_create_groups":
         case "realm_can_create_public_channel_group":
diff --git a/web/src/state_data.ts b/web/src/state_data.ts
index 943ebb6a17..86c742e40d 100644
--- a/web/src/state_data.ts
+++ b/web/src/state_data.ts
@@ -267,7 +267,6 @@ const realm_schema = z.object({
     max_topic_length: z.number(),
     password_min_guesses: z.number(),
     password_min_length: z.number(),
-    realm_add_custom_emoji_policy: z.number(),
     realm_allow_edit_history: z.boolean(),
     realm_allow_message_editing: z.boolean(),
     realm_authentication_methods: z.record(
@@ -287,6 +286,7 @@ const realm_schema = z.object({
     realm_bot_creation_policy: z.number(),
     realm_bot_domain: z.string(),
     realm_can_access_all_users_group: z.number(),
+    realm_can_add_custom_emoji_group: z.number(),
     realm_can_create_groups: z.number(),
     realm_can_create_public_channel_group: z.number(),
     realm_can_create_private_channel_group: z.number(),
diff --git a/web/templates/settings/emoji_settings_tip.hbs b/web/templates/settings/emoji_settings_tip.hbs
index 50ebc65d83..ce999169a5 100644
--- a/web/templates/settings/emoji_settings_tip.hbs
+++ b/web/templates/settings/emoji_settings_tip.hbs
@@ -1,10 +1,10 @@
 {{#if is_guest}}
     <div class='tip'>{{t "Guests cannot edit custom emoji." }}</div>
-{{else if (eq realm_add_custom_emoji_policy policy_values.by_admins_only.code) }}
+{{else if (eq realm_can_add_custom_emoji_group_name "role:administrators") }}
     <div class='tip'>{{t "This organization is configured so that only administrators can add custom emoji." }}</div>
-{{else if (eq realm_add_custom_emoji_policy policy_values.by_moderators_only.code)}}
+{{else if (eq realm_can_add_custom_emoji_group_name "role:moderators")}}
     <div class='tip'>{{t 'This organization is configured so that administrators and moderators can add custom emoji.'}}</div>
-{{else if (eq realm_add_custom_emoji_policy policy_values.by_full_members.code)}}
+{{else if (eq realm_can_add_custom_emoji_group_name "role:fullmembers")}}
     <div class='tip'>{{t 'This organization is configured so that full members can add custom emoji.'}}</div>
 {{else}}
     <div class='tip'>{{t "This organization is configured so that any member of this organization can add custom emoji." }}</div>
diff --git a/web/templates/settings/organization_permissions_admin.hbs b/web/templates/settings/organization_permissions_admin.hbs
index c49385839e..763ca86ab6 100644
--- a/web/templates/settings/organization_permissions_admin.hbs
+++ b/web/templates/settings/organization_permissions_admin.hbs
@@ -350,12 +350,10 @@
                   value_type="number"
                   is_setting_disabled=(not is_owner)}}
 
-                <div class="input-group">
-                    <label for="realm_add_custom_emoji_policy" class="settings-field-label">{{t "Who can add custom emoji" }}</label>
-                    <select name="realm_add_custom_emoji_policy" class="setting-widget prop-element settings_select bootstrap-focus-style" id="id_realm_add_custom_emoji_policy" data-setting-widget-type="number">
-                        {{> dropdown_options_widget option_values=common_policy_values}}
-                    </select>
-                </div>
+                {{> ../dropdown_widget_with_label
+                  widget_name="realm_can_add_custom_emoji_group"
+                  label=(t 'Who can add custom emoji')
+                  value_type="number"}}
             </div>
         </div>
     </form>
diff --git a/web/tests/dispatch.test.js b/web/tests/dispatch.test.js
index 3e442ded6c..b23f9be94c 100644
--- a/web/tests/dispatch.test.js
+++ b/web/tests/dispatch.test.js
@@ -462,6 +462,7 @@ run_test("realm settings", ({override}) => {
     override(settings_org, "check_disable_direct_message_initiator_group_dropdown", noop);
     override(settings_org, "sync_realm_settings", noop);
     override(settings_bots, "update_bot_permissions_ui", noop);
+    override(settings_emoji, "update_custom_emoji_ui", noop);
     override(settings_invites, "update_invite_user_panel", noop);
     override(sidebar_ui, "update_invite_user_option", noop);
     override(gear_menu, "rerender", noop);
@@ -582,6 +583,7 @@ run_test("realm settings", ({override}) => {
     override(realm, "realm_message_content_edit_limit_seconds", 0);
     override(realm, "realm_edit_topic_policy", 3);
     override(realm, "realm_authentication_methods", {Google: {enabled: false, available: true}});
+    override(realm, "realm_can_add_custom_emoji_group", 1);
     override(realm, "realm_can_create_public_channel_group", 1);
     override(realm, "realm_direct_message_permission_group", 1);
     override(realm, "realm_plan_type", 2);
@@ -596,6 +598,7 @@ run_test("realm settings", ({override}) => {
     assert_same(realm.realm_authentication_methods, {
         Google: {enabled: true, available: true},
     });
+    assert_same(realm.realm_can_add_custom_emoji_group, 3);
     assert_same(realm.realm_can_create_public_channel_group, 3);
     assert_same(realm.realm_direct_message_permission_group, 3);
     assert_same(realm.realm_plan_type, 3);
diff --git a/web/tests/lib/events.js b/web/tests/lib/events.js
index 98cc7f8ad7..a3490ba0af 100644
--- a/web/tests/lib/events.js
+++ b/web/tests/lib/events.js
@@ -368,6 +368,7 @@ exports.fixtures = {
             authentication_methods: {
                 Google: {enabled: true, available: true},
             },
+            can_add_custom_emoji_group: 3,
             can_create_public_channel_group: 3,
             direct_message_permission_group: 3,
             plan_type: 3,
diff --git a/web/tests/settings_data.test.js b/web/tests/settings_data.test.js
index 5f986efbaf..2d2bba18cd 100644
--- a/web/tests/settings_data.test.js
+++ b/web/tests/settings_data.test.js
@@ -167,11 +167,6 @@ test_policy(
     "realm_move_messages_between_streams_policy",
     settings_data.user_can_move_messages_between_streams,
 );
-test_policy(
-    "user_can_add_custom_emoji",
-    "realm_add_custom_emoji_policy",
-    settings_data.user_can_add_custom_emoji,
-);
 
 function test_message_policy(label, policy, validation_func) {
     run_test(label, ({override}) => {
@@ -244,6 +239,11 @@ run_test("user_can_move_messages_between_streams_nobody_case", ({override}) => {
     assert.equal(settings_data.user_can_move_messages_between_streams(), false);
 });
 
+test_realm_group_settings(
+    "realm_can_add_custom_emoji_group",
+    settings_data.user_can_add_custom_emoji,
+);
+
 test_realm_group_settings(
     "realm_can_delete_any_message_group",
     settings_data.user_can_delete_any_message,
diff --git a/web/tests/settings_org.test.js b/web/tests/settings_org.test.js
index 6402a3d71e..ffd5b68dc7 100644
--- a/web/tests/settings_org.test.js
+++ b/web/tests/settings_org.test.js
@@ -102,7 +102,6 @@ function createSaveButtons(subsection) {
 function test_submit_settings_form(override, submit_form) {
     Object.assign(realm, {
         realm_bot_creation_policy: settings_bots.bot_creation_policy_values.restricted.code,
-        realm_add_custom_emoji_policy: settings_config.common_policy_values.by_admins_only.code,
         realm_waiting_period_threshold: 1,
         realm_default_language: '"es"',
         realm_invite_to_stream_policy: settings_config.common_policy_values.by_admins_only.code,
@@ -138,11 +137,6 @@ function test_submit_settings_form(override, submit_form) {
     $invite_to_stream_policy_elem.attr("id", "id_realm_invite_to_stream_policy");
     $invite_to_stream_policy_elem.data = () => "number";
 
-    const $add_custom_emoji_policy_elem = $("#id_realm_add_custom_emoji_policy");
-    $add_custom_emoji_policy_elem.val("1");
-    $add_custom_emoji_policy_elem.attr("id", "id_realm_add_custom_emoji_policy");
-    $add_custom_emoji_policy_elem.data = () => "number";
-
     const $bot_creation_policy_elem = $("#id_realm_bot_creation_policy");
     $bot_creation_policy_elem.val("1");
     $bot_creation_policy_elem.attr("id", "id_realm_bot_creation_policy");
@@ -156,7 +150,6 @@ function test_submit_settings_form(override, submit_form) {
     let $subsection_elem = $(`#org-${CSS.escape(subsection)}`);
     $subsection_elem.set_find_results(".prop-element", [
         $bot_creation_policy_elem,
-        $add_custom_emoji_policy_elem,
         $invite_to_realm_policy_elem,
         $invite_to_stream_policy_elem,
     ]);
@@ -169,7 +162,6 @@ function test_submit_settings_form(override, submit_form) {
         bot_creation_policy: 1,
         invite_to_realm_policy: 2,
         invite_to_stream_policy: 1,
-        add_custom_emoji_policy: 1,
     };
     assert.deepEqual(data, expected_value);
 
diff --git a/web/tests/user_events.test.js b/web/tests/user_events.test.js
index e492aa8028..78c1af996e 100644
--- a/web/tests/user_events.test.js
+++ b/web/tests/user_events.test.js
@@ -35,6 +35,9 @@ mock_esm("../src/compose_state", {
 mock_esm("../src/pm_list", {
     update_private_messages() {},
 });
+mock_esm("../src/settings", {
+    update_lock_icon_in_sidebar() {},
+});
 mock_esm("../src/settings_linkifiers", {
     maybe_disable_widgets() {},
 });
diff --git a/zerver/lib/event_schema.py b/zerver/lib/event_schema.py
index 55e8229592..d0512eb2af 100644
--- a/zerver/lib/event_schema.py
+++ b/zerver/lib/event_schema.py
@@ -1059,6 +1059,7 @@ group_setting_update_data_type = DictType(
     optional_keys=[
         ("create_multiuse_invite_group", int),
         ("can_access_all_users_group", int),
+        ("can_add_custom_emoji_group", group_setting_type),
         ("can_create_groups", group_setting_type),
         ("can_create_public_channel_group", group_setting_type),
         ("can_create_private_channel_group", group_setting_type),
diff --git a/zerver/migrations/0603_realm_can_add_custom_emoji_group.py b/zerver/migrations/0603_realm_can_add_custom_emoji_group.py
new file mode 100644
index 0000000000..47fa921a1b
--- /dev/null
+++ b/zerver/migrations/0603_realm_can_add_custom_emoji_group.py
@@ -0,0 +1,23 @@
+# Generated by Django 5.0.9 on 2024-10-04 07:01
+
+import django.db.models.deletion
+from django.db import migrations, models
+
+
+class Migration(migrations.Migration):
+    dependencies = [
+        ("zerver", "0602_remap_can_manage_all_groups"),
+    ]
+
+    operations = [
+        migrations.AddField(
+            model_name="realm",
+            name="can_add_custom_emoji_group",
+            field=models.ForeignKey(
+                null=True,
+                on_delete=django.db.models.deletion.RESTRICT,
+                related_name="+",
+                to="zerver.usergroup",
+            ),
+        ),
+    ]
diff --git a/zerver/migrations/0604_set_default_value_for_can_add_custom_emoji_group.py b/zerver/migrations/0604_set_default_value_for_can_add_custom_emoji_group.py
new file mode 100644
index 0000000000..35c952e52a
--- /dev/null
+++ b/zerver/migrations/0604_set_default_value_for_can_add_custom_emoji_group.py
@@ -0,0 +1,43 @@
+# Generated by Django 4.2.1 on 2023-06-12 10:47
+
+from django.db import migrations
+from django.db.backends.base.schema import BaseDatabaseSchemaEditor
+from django.db.migrations.state import StateApps
+from django.db.models import OuterRef
+
+
+def set_default_value_for_can_add_custom_emoji_group(
+    apps: StateApps, schema_editor: BaseDatabaseSchemaEditor
+) -> None:
+    Realm = apps.get_model("zerver", "Realm")
+    NamedUserGroup = apps.get_model("zerver", "NamedUserGroup")
+
+    add_custom_emoji_policy_to_group_name = {
+        1: "role:members",
+        2: "role:administrators",
+        3: "role:fullmembers",
+        4: "role:moderators",
+    }
+
+    for id, group_name in add_custom_emoji_policy_to_group_name.items():
+        Realm.objects.filter(can_add_custom_emoji_group=None, add_custom_emoji_policy=id).update(
+            can_add_custom_emoji_group=NamedUserGroup.objects.filter(
+                name=group_name, realm=OuterRef("id"), is_system_group=True
+            ).values("pk")
+        )
+
+
+class Migration(migrations.Migration):
+    atomic = False
+
+    dependencies = [
+        ("zerver", "0603_realm_can_add_custom_emoji_group"),
+    ]
+
+    operations = [
+        migrations.RunPython(
+            set_default_value_for_can_add_custom_emoji_group,
+            elidable=True,
+            reverse_code=migrations.RunPython.noop,
+        )
+    ]
diff --git a/zerver/migrations/0605_alter_realm_can_add_custom_emoji_group.py b/zerver/migrations/0605_alter_realm_can_add_custom_emoji_group.py
new file mode 100644
index 0000000000..71a69191e0
--- /dev/null
+++ b/zerver/migrations/0605_alter_realm_can_add_custom_emoji_group.py
@@ -0,0 +1,22 @@
+# Generated by Django 5.0.9 on 2024-10-04 07:06
+
+import django.db.models.deletion
+from django.db import migrations, models
+
+
+class Migration(migrations.Migration):
+    dependencies = [
+        ("zerver", "0604_set_default_value_for_can_add_custom_emoji_group"),
+    ]
+
+    operations = [
+        migrations.AlterField(
+            model_name="realm",
+            name="can_add_custom_emoji_group",
+            field=models.ForeignKey(
+                on_delete=django.db.models.deletion.RESTRICT,
+                related_name="+",
+                to="zerver.usergroup",
+            ),
+        ),
+    ]
diff --git a/zerver/models/realms.py b/zerver/models/realms.py
index 2f553566c9..9456fe22ed 100644
--- a/zerver/models/realms.py
+++ b/zerver/models/realms.py
@@ -287,6 +287,11 @@ class Realm(models.Model):  # type: ignore[django-manager-missing] # django-stub
         default=CommonPolicyEnum.MEMBERS_ONLY
     )
 
+    # Who in the organization is allowed to add custom emojis.
+    can_add_custom_emoji_group = models.ForeignKey(
+        "UserGroup", on_delete=models.RESTRICT, related_name="+"
+    )
+
     # Who in the organization is allowed to create streams.
     can_create_public_channel_group = models.ForeignKey(
         "UserGroup", on_delete=models.RESTRICT, related_name="+"
@@ -704,6 +709,15 @@ class Realm(models.Model):  # type: ignore[django-manager-missing] # django-stub
             id_field_name="can_access_all_users_group_id",
             allowed_system_groups=[SystemGroups.EVERYONE, SystemGroups.MEMBERS],
         ),
+        can_add_custom_emoji_group=GroupPermissionSetting(
+            require_system_group=False,
+            allow_internet_group=False,
+            allow_owners_group=False,
+            allow_nobody_group=False,
+            allow_everyone_group=False,
+            default_group_name=SystemGroups.MEMBERS,
+            id_field_name="can_add_custom_emoji_group_id",
+        ),
         can_create_groups=GroupPermissionSetting(
             require_system_group=False,
             allow_internet_group=False,
@@ -794,6 +808,7 @@ class Realm(models.Model):  # type: ignore[django-manager-missing] # django-stub
     )
 
     REALM_PERMISSION_GROUP_SETTINGS_WITH_NEW_API_FORMAT = [
+        "can_add_custom_emoji_group",
         "can_create_groups",
         "can_create_private_channel_group",
         "can_create_public_channel_group",
@@ -1181,6 +1196,8 @@ def get_realm_with_settings(realm_id: int) -> Realm:
     return Realm.objects.select_related(
         "can_access_all_users_group",
         "can_access_all_users_group__named_user_group",
+        "can_add_custom_emoji_group",
+        "can_add_custom_emoji_group__named_user_group",
         "can_create_groups",
         "can_create_groups__named_user_group",
         "can_create_public_channel_group",
diff --git a/zerver/models/users.py b/zerver/models/users.py
index 46b30187a0..57e5fa53e6 100644
--- a/zerver/models/users.py
+++ b/zerver/models/users.py
@@ -816,6 +816,7 @@ class UserProfile(AbstractBaseUser, PermissionsMixin, UserBaseSettings):
 
         if policy_name not in [
             "add_custom_emoji_policy",
+            "can_add_custom_emoji_group",
             "can_create_groups",
             "can_create_private_channel_group",
             "can_create_public_channel_group",
@@ -910,7 +911,7 @@ class UserProfile(AbstractBaseUser, PermissionsMixin, UserBaseSettings):
         return self.has_permission("edit_topic_policy")
 
     def can_add_custom_emoji(self) -> bool:
-        return self.has_permission("add_custom_emoji_policy")
+        return self.has_permission("can_add_custom_emoji_group")
 
     def can_delete_any_message(self) -> bool:
         return self.has_permission("can_delete_any_message_group")
diff --git a/zerver/openapi/zulip.yaml b/zerver/openapi/zulip.yaml
index 01de2c5576..b3c048a73f 100644
--- a/zerver/openapi/zulip.yaml
+++ b/zerver/openapi/zulip.yaml
@@ -4410,6 +4410,20 @@ paths:
                                             **Changes**: New in Zulip 10.0 (feature level 280). Previously
                                             `realm_create_web_public_stream_policy` field used to control
                                             the permission to create web-public channels.
+                                    can_add_custom_emoji_group:
+                                      allOf:
+                                        - description: |
+                                            A [group-setting value](/api/group-setting-values) defining the set of
+                                            users who have permission to add custom emoji in the organization.
+
+                                            **Changes**: New in Zulip 10.0 (feature level 307). Previously, this
+                                            permission was controlled by the enum `add_custom_emoji_policy`. Values
+                                            were 1=Members, 2=Admins, 3=Full members, 4=Moderators.
+
+                                            Before Zulip 5.0 (feature level 85), the `realm_add_emoji_by_admins_only`
+                                            boolean setting controlled this permission; `true` corresponded to `Admins`,
+                                            and `false` to `Everyone`.
+                                        - $ref: "#/components/schemas/GroupSettingValue"
                                     can_delete_any_message_group:
                                       allOf:
                                         - description: |
@@ -16235,6 +16249,22 @@ paths:
 
                           Whether this organization is configured to allow users to access
                           [message edit history](/help/view-a-messages-edit-history).
+                      realm_can_add_custom_emoji_group:
+                        allOf:
+                          - description: |
+                              Present if `realm` is present in `fetch_event_types`.
+
+                              A [group-setting value](/api/group-setting-values) defining the set of
+                              users who have permission to add custom emoji in the organization.
+
+                              **Changes**: New in Zulip 10.0 (feature level 307). Previously, this
+                              permission was controlled by the enum `add_custom_emoji_policy`. Values
+                              were 1=Members, 2=Admins, 3=Full members, 4=Moderators.
+
+                              Before Zulip 5.0 (feature level 85), the `realm_add_emoji_by_admins_only`
+                              boolean setting controlled this permission; `true` corresponded to `Admins`,
+                              and `false` to `Everyone`.
+                          - $ref: "#/components/schemas/GroupSettingValue"
                       realm_can_delete_any_message_group:
                         allOf:
                           - description: |
diff --git a/zerver/tests/test_home.py b/zerver/tests/test_home.py
index 78cae0bdf5..9e88da5098 100644
--- a/zerver/tests/test_home.py
+++ b/zerver/tests/test_home.py
@@ -130,6 +130,7 @@ class HomeTest(ZulipTestCase):
         "realm_bot_domain",
         "realm_bots",
         "realm_can_access_all_users_group",
+        "realm_can_add_custom_emoji_group",
         "realm_can_create_groups",
         "realm_can_create_private_channel_group",
         "realm_can_create_public_channel_group",
diff --git a/zerver/tests/test_realm_emoji.py b/zerver/tests/test_realm_emoji.py
index 6f5a4dae63..c1363c1d4d 100644
--- a/zerver/tests/test_realm_emoji.py
+++ b/zerver/tests/test_realm_emoji.py
@@ -3,15 +3,20 @@ from unittest import mock
 from zerver.actions.create_realm import do_create_realm
 from zerver.actions.create_user import do_create_user
 from zerver.actions.realm_emoji import check_add_realm_emoji
-from zerver.actions.realm_settings import do_set_realm_property
+from zerver.actions.realm_settings import (
+    do_change_realm_permission_group_setting,
+    do_set_realm_property,
+)
+from zerver.actions.user_groups import check_add_user_group
 from zerver.actions.users import do_change_user_role
 from zerver.lib.emoji import get_emoji_file_name
 from zerver.lib.exceptions import JsonableError
 from zerver.lib.test_classes import ZulipTestCase
 from zerver.lib.test_helpers import get_test_image_file
 from zerver.lib.thumbnail import BadImageError
-from zerver.models import Realm, RealmEmoji, UserProfile
-from zerver.models.realms import CommonPolicyEnum, get_realm
+from zerver.models import NamedUserGroup, Realm, RealmEmoji, UserProfile
+from zerver.models.groups import SystemGroups
+from zerver.models.realms import get_realm
 
 
 class RealmEmojiTest(ZulipTestCase):
@@ -57,8 +62,15 @@ class RealmEmojiTest(ZulipTestCase):
         # having no author are also there in the list.
         self.login("othello")
         realm = get_realm("zulip")
-        realm.add_custom_emoji_policy = CommonPolicyEnum.ADMINS_ONLY
-        realm.save()
+        administrators_system_group = NamedUserGroup.objects.get(
+            name=SystemGroups.ADMINISTRATORS, realm=realm, is_system_group=True
+        )
+        do_change_realm_permission_group_setting(
+            realm,
+            "can_add_custom_emoji_group",
+            administrators_system_group,
+            acting_user=None,
+        )
         realm_emoji = self.create_test_emoji_with_no_author("my_emoji", realm)
 
         result = self.client_get("/json/realm/emoji")
@@ -165,19 +177,23 @@ class RealmEmojiTest(ZulipTestCase):
             result = self.client_post("/json/realm/emoji/%20", info=emoji_data)
         self.assert_json_error(result, "Emoji name is missing")
 
-    def test_can_add_custom_emoji(self) -> None:
-        def validation_func(user_profile: UserProfile) -> bool:
-            return user_profile.can_add_custom_emoji()
-
-        self.check_has_permission_policies("add_custom_emoji_policy", validation_func)
-
     def test_user_settings_for_adding_custom_emoji(self) -> None:
         othello = self.example_user("othello")
+        cordelia = self.example_user("cordelia")
+        iago = self.example_user("iago")
+
+        realm = othello.realm
         self.login_user(othello)
 
         do_change_user_role(othello, UserProfile.ROLE_MODERATOR, acting_user=None)
-        do_set_realm_property(
-            othello.realm, "add_custom_emoji_policy", CommonPolicyEnum.ADMINS_ONLY, acting_user=None
+        administrators_system_group = NamedUserGroup.objects.get(
+            name=SystemGroups.ADMINISTRATORS, realm=realm, is_system_group=True
+        )
+        do_change_realm_permission_group_setting(
+            realm,
+            "can_add_custom_emoji_group",
+            administrators_system_group,
+            acting_user=None,
         )
         with get_test_image_file("img.png") as fp1:
             emoji_data = {"f1": fp1}
@@ -190,10 +206,13 @@ class RealmEmojiTest(ZulipTestCase):
             result = self.client_post("/json/realm/emoji/my_emoji_1", info=emoji_data)
         self.assert_json_success(result)
 
-        do_set_realm_property(
-            othello.realm,
-            "add_custom_emoji_policy",
-            CommonPolicyEnum.MODERATORS_ONLY,
+        moderators_system_group = NamedUserGroup.objects.get(
+            name=SystemGroups.MODERATORS, realm=realm, is_system_group=True
+        )
+        do_change_realm_permission_group_setting(
+            realm,
+            "can_add_custom_emoji_group",
+            moderators_system_group,
             acting_user=None,
         )
         do_change_user_role(othello, UserProfile.ROLE_MEMBER, acting_user=None)
@@ -208,10 +227,13 @@ class RealmEmojiTest(ZulipTestCase):
             result = self.client_post("/json/realm/emoji/my_emoji_2", info=emoji_data)
         self.assert_json_success(result)
 
-        do_set_realm_property(
-            othello.realm,
-            "add_custom_emoji_policy",
-            CommonPolicyEnum.FULL_MEMBERS_ONLY,
+        full_members_system_group = NamedUserGroup.objects.get(
+            name=SystemGroups.FULL_MEMBERS, realm=realm, is_system_group=True
+        )
+        do_change_realm_permission_group_setting(
+            realm,
+            "can_add_custom_emoji_group",
+            full_members_system_group,
             acting_user=None,
         )
         do_set_realm_property(othello.realm, "waiting_period_threshold", 100000, acting_user=None)
@@ -228,10 +250,13 @@ class RealmEmojiTest(ZulipTestCase):
             result = self.client_post("/json/realm/emoji/my_emoji_3", info=emoji_data)
         self.assert_json_success(result)
 
-        do_set_realm_property(
-            othello.realm,
-            "add_custom_emoji_policy",
-            CommonPolicyEnum.MEMBERS_ONLY,
+        members_system_group = NamedUserGroup.objects.get(
+            name=SystemGroups.MEMBERS, realm=realm, is_system_group=True
+        )
+        do_change_realm_permission_group_setting(
+            realm,
+            "can_add_custom_emoji_group",
+            members_system_group,
             acting_user=None,
         )
         do_change_user_role(othello, UserProfile.ROLE_GUEST, acting_user=None)
@@ -246,6 +271,61 @@ class RealmEmojiTest(ZulipTestCase):
             result = self.client_post("/json/realm/emoji/my_emoji_4", info=emoji_data)
         self.assert_json_success(result)
 
+        # Test for checking setting for non-system user group.
+        user_group = check_add_user_group(
+            realm, "newgroup", [othello, cordelia], acting_user=othello
+        )
+        do_change_realm_permission_group_setting(
+            realm, "can_add_custom_emoji_group", user_group, acting_user=None
+        )
+
+        # Othello is in the allowed user group, so can add custom emoji.
+        with get_test_image_file("img.png") as fp1:
+            emoji_data = {"f1": fp1}
+            result = self.client_post("/json/realm/emoji/my_emoji_5", info=emoji_data)
+        self.assert_json_success(result)
+
+        # Iago is not present in the allowed user group, so cannot add custom emoji.
+        self.login_user(iago)
+        with get_test_image_file("img.png") as fp1:
+            emoji_data = {"f1": fp1}
+            result = self.client_post("/json/realm/emoji/my_emoji_6", info=emoji_data)
+        self.assert_json_error(result, "Insufficient permission")
+
+        # Test for checking the setting for anonymous user group.
+        anonymous_user_group = self.create_or_update_anonymous_group_for_setting(
+            [othello],
+            [administrators_system_group],
+        )
+        do_change_realm_permission_group_setting(
+            realm,
+            "can_add_custom_emoji_group",
+            anonymous_user_group,
+            acting_user=None,
+        )
+
+        # Iago is present in the `administrators_system_group` subgroup, so can add
+        # custom emoji.
+        with get_test_image_file("img.png") as fp1:
+            emoji_data = {"f1": fp1}
+            result = self.client_post("/json/realm/emoji/my_emoji_6", info=emoji_data)
+        self.assert_json_success(result)
+
+        # Othello is the direct member of the allowed anonymous user group, so can add
+        # custom emoji.
+        self.login_user(othello)
+        with get_test_image_file("img.png") as fp1:
+            emoji_data = {"f1": fp1}
+            result = self.client_post("/json/realm/emoji/my_emoji_7", info=emoji_data)
+        self.assert_json_success(result)
+
+        # Cordelia is not present in the anonymous user group, so cannot add custom emoji.
+        self.login_user(cordelia)
+        with get_test_image_file("img.png") as fp1:
+            emoji_data = {"f1": fp1}
+            result = self.client_post("/json/realm/emoji/my_emoji_6", info=emoji_data)
+        self.assert_json_error(result, "Insufficient permission")
+
     def test_delete(self) -> None:
         emoji_author = self.example_user("iago")
         self.login_user(emoji_author)
diff --git a/zerver/views/realm.py b/zerver/views/realm.py
index e7ae8f809b..05a9a37dc6 100644
--- a/zerver/views/realm.py
+++ b/zerver/views/realm.py
@@ -112,6 +112,7 @@ def update_realm(
     inline_image_preview: Json[bool] | None = None,
     inline_url_embed_preview: Json[bool] | None = None,
     add_custom_emoji_policy: Json[CommonPolicyEnum] | None = None,
+    can_add_custom_emoji_group: Json[GroupSettingChangeRequest] | None = None,
     can_delete_any_message_group: Json[GroupSettingChangeRequest] | None = None,
     can_delete_own_message_group: Json[GroupSettingChangeRequest] | None = None,
     message_content_delete_limit_seconds_raw: Annotated[