diff --git a/api_docs/changelog.md b/api_docs/changelog.md
index 3ea445ff5b..8af8dba39d 100644
--- a/api_docs/changelog.md
+++ b/api_docs/changelog.md
@@ -20,6 +20,23 @@ format used by the Zulip server that they are interacting with.
 
 ## Changes in Zulip 10.0
 
+**Feature level 294**
+
+* [`POST /register`](/api/register-queue): Clients that do not
+  support the `include_deactivated_groups`
+  [client capability](/api/register-queue#parameter-client_capabilities)
+  do not receive deactivated user groups in the response.
+* [`GET /events`](/api/get-events): Clients that do not support the
+  `include_deactivated_groups`
+  [client capability](/api/register-queue#parameter-client_capabilities)
+  receive `remove` event on user group deactivation instead of `update`
+  event.
+* [`GET /events`](/api/get-events): Clients that do not support the
+  `include_deactivated_groups`
+  [client capability](/api/register-queue#parameter-client_capabilities)
+  do not receive `update` event when name of a deactivated user group
+  is updated.
+
 **Feature level 293**
 
 * [`POST /register`](/api/register-queue), [`PATCH /settings`](/api/update-settings):
diff --git a/zerver/actions/user_groups.py b/zerver/actions/user_groups.py
index 484ba9a403..a855f70217 100644
--- a/zerver/actions/user_groups.py
+++ b/zerver/actions/user_groups.py
@@ -224,6 +224,12 @@ def do_send_user_group_update_event(
     user_group: NamedUserGroup, data: dict[str, str | int | AnonymousSettingGroupDict]
 ) -> None:
     event = dict(type="user_group", op="update", group_id=user_group.id, data=data)
+    if "name" in data:
+        # This field will be popped eventually before sending the event
+        # to client, but is needed to make sure we do not send the
+        # name update event for deactivated groups to client with
+        # 'include_deactivated_groups' client capability set to false.
+        event["deactivated"] = user_group.deactivated
     send_event_on_commit(user_group.realm, event, active_user_ids(user_group.realm_id))
 
 
@@ -463,6 +469,9 @@ def do_deactivate_user_group(
 
     do_send_user_group_update_event(user_group, dict(deactivated=True))
 
+    event = dict(type="user_group", op="remove", group_id=user_group.id)
+    send_event_on_commit(user_group.realm, event, active_user_ids(user_group.realm_id))
+
 
 @transaction.atomic(savepoint=False)
 def do_change_user_group_permission_setting(
diff --git a/zerver/lib/events.py b/zerver/lib/events.py
index 04a7e58bc6..ab9232af13 100644
--- a/zerver/lib/events.py
+++ b/zerver/lib/events.py
@@ -141,6 +141,7 @@ def fetch_initial_state_data(
     pronouns_field_type_supported: bool = True,
     linkifier_url_template: bool = False,
     user_list_incomplete: bool = False,
+    include_deactivated_groups: bool = False,
 ) -> dict[str, Any]:
     """When `event_types` is None, fetches the core data powering the
     web app's `page_params` and `/api/v1/register` (for mobile/terminal
@@ -507,7 +508,9 @@ def fetch_initial_state_data(
         state["realm_playgrounds"] = get_realm_playgrounds(realm)
 
     if want("realm_user_groups"):
-        state["realm_user_groups"] = user_groups_in_realm_serialized(realm, allow_deactivated=True)
+        state["realm_user_groups"] = user_groups_in_realm_serialized(
+            realm, allow_deactivated=include_deactivated_groups
+        )
 
     if user_profile is not None:
         settings_user = user_profile
@@ -782,6 +785,7 @@ def apply_events(
     include_subscribers: bool,
     linkifier_url_template: bool,
     user_list_incomplete: bool,
+    include_deactivated_groups: bool,
 ) -> None:
     for event in events:
         if fetch_event_types is not None and event["type"] not in fetch_event_types:
@@ -803,6 +807,7 @@ def apply_events(
             include_subscribers=include_subscribers,
             linkifier_url_template=linkifier_url_template,
             user_list_incomplete=user_list_incomplete,
+            include_deactivated_groups=include_deactivated_groups,
         )
 
 
@@ -816,6 +821,7 @@ def apply_event(
     include_subscribers: bool,
     linkifier_url_template: bool,
     user_list_incomplete: bool,
+    include_deactivated_groups: bool,
 ) -> None:
     if event["type"] == "message":
         state["max_message_id"] = max(state["max_message_id"], event["message"]["id"])
@@ -1662,6 +1668,7 @@ class ClientCapabilities(TypedDict):
     user_settings_object: NotRequired[bool]
     linkifier_url_template: NotRequired[bool]
     user_list_incomplete: NotRequired[bool]
+    include_deactivated_groups: NotRequired[bool]
 
 
 def do_events_register(
@@ -1698,6 +1705,7 @@ def do_events_register(
     user_settings_object = client_capabilities.get("user_settings_object", False)
     linkifier_url_template = client_capabilities.get("linkifier_url_template", False)
     user_list_incomplete = client_capabilities.get("user_list_incomplete", False)
+    include_deactivated_groups = client_capabilities.get("include_deactivated_groups", False)
 
     if fetch_event_types is not None:
         event_types_set: set[str] | None = set(fetch_event_types)
@@ -1739,6 +1747,7 @@ def do_events_register(
             # Force include_streams=False for security reasons.
             include_streams=include_streams,
             spectator_requested_language=spectator_requested_language,
+            include_deactivated_groups=include_deactivated_groups,
         )
 
         post_process_state(user_profile, ret, notification_settings_null=False)
@@ -1767,6 +1776,7 @@ def do_events_register(
         pronouns_field_type_supported=pronouns_field_type_supported,
         linkifier_url_template=linkifier_url_template,
         user_list_incomplete=user_list_incomplete,
+        include_deactivated_groups=include_deactivated_groups,
     )
 
     if queue_id is None:
@@ -1788,6 +1798,7 @@ def do_events_register(
         pronouns_field_type_supported=pronouns_field_type_supported,
         linkifier_url_template=linkifier_url_template,
         user_list_incomplete=user_list_incomplete,
+        include_deactivated_groups=include_deactivated_groups,
     )
 
     # Apply events that came in while we were fetching initial data
@@ -1802,6 +1813,7 @@ def do_events_register(
         include_subscribers=include_subscribers,
         linkifier_url_template=linkifier_url_template,
         user_list_incomplete=user_list_incomplete,
+        include_deactivated_groups=include_deactivated_groups,
     )
 
     post_process_state(user_profile, ret, notification_settings_null)
diff --git a/zerver/openapi/zulip.yaml b/zerver/openapi/zulip.yaml
index 25c123eb40..22f440bbe4 100644
--- a/zerver/openapi/zulip.yaml
+++ b/zerver/openapi/zulip.yaml
@@ -3163,6 +3163,14 @@ paths:
                               description: |
                                 Event sent to all users in a Zulip organization
                                 when a property of a user group is changed.
+
+                                For group deactivation, this event is only sent
+                                if `include_deactivated_groups` client capability
+                                is set to `true`.
+
+                                **Changes**: Prior to Zulip 10.0 (feature level 294),
+                                this event was sent to all clients when a user group
+                                was deactivated.
                               properties:
                                 id:
                                   $ref: "#/components/schemas/EventIdSchema"
@@ -3410,6 +3418,13 @@ paths:
                               additionalProperties: false
                               description: |
                                 Event sent to all users when a user group has been deleted.
+
+                                This event is also sent when a user group is deactivated
+                                but only to clients with `include_deactivated_groups` client
+                                capability set to `false`.
+
+                                **Changes**: Prior to Zulip 10.0 (feature level 294), this
+                                event was only sent when a user group was deleted.
                               properties:
                                 id:
                                   $ref: "#/components/schemas/EventIdSchema"
@@ -13485,6 +13500,16 @@ paths:
                       **Changes**: New in Zulip 8.0 (feature level 232). This
                       capability is for backwards-compatibility.
 
+                    - `include_deactivated_groups`: Boolean for whether the client can handle
+                      deactivated user groups by themselves. If false, then the `realm_user_groups`
+                      array in the `/register` response will only include active groups, clients
+                      will receive a `remove` event instead of `update` event when a group is
+                      deactivated and no `update` event will be sent to the client if a deactivated
+                      user group is renamed.
+                      <br />
+                      **Changes**: New in Zulip 10.0 (feature level 294). This
+                      capability is for backwards-compatibility.
+
                     [help-linkifiers]: /help/add-a-custom-linkifier
                     [rfc6570]: https://www.rfc-editor.org/rfc/rfc6570.html
                     [events-linkifiers]: /api/get-events#realm_linkifiers
@@ -14021,6 +14046,12 @@ paths:
 
                           An array of dictionaries where each dictionary describes a
                           [user group](/help/user-groups) in the Zulip organization.
+
+                          Deactivated groups will only be included if `include_deactivated_groups`
+                          client capability is set to `true`.
+
+                          **Changes**: Prior to Zulip 10.0 (feature level 294), deactivated
+                          groups were included for all the clients.
                       realm_bots:
                         type: array
                         items:
diff --git a/zerver/tests/test_events.py b/zerver/tests/test_events.py
index 62afb2f7c4..bfec4cff48 100644
--- a/zerver/tests/test_events.py
+++ b/zerver/tests/test_events.py
@@ -299,6 +299,7 @@ class BaseAction(ZulipTestCase):
         linkifier_url_template: bool = True,
         user_list_incomplete: bool = False,
         client_is_old: bool = False,
+        include_deactivated_groups: bool = False,
     ) -> Iterator[list[dict[str, Any]]]:
         """
         Make sure we have a clean slate of client descriptors for these tests.
@@ -329,6 +330,7 @@ class BaseAction(ZulipTestCase):
                 pronouns_field_type_supported=pronouns_field_type_supported,
                 linkifier_url_template=linkifier_url_template,
                 user_list_incomplete=user_list_incomplete,
+                include_deactivated_groups=include_deactivated_groups,
             )
         )
 
@@ -346,6 +348,7 @@ class BaseAction(ZulipTestCase):
             pronouns_field_type_supported=pronouns_field_type_supported,
             linkifier_url_template=linkifier_url_template,
             user_list_incomplete=user_list_incomplete,
+            include_deactivated_groups=include_deactivated_groups,
         )
 
         if client_is_old:
@@ -386,6 +389,7 @@ class BaseAction(ZulipTestCase):
             include_subscribers=include_subscribers,
             linkifier_url_template=linkifier_url_template,
             user_list_incomplete=user_list_incomplete,
+            include_deactivated_groups=include_deactivated_groups,
         )
         post_process_state(self.user_profile, hybrid_state, notification_settings_null)
         after = orjson.dumps(hybrid_state)
@@ -415,6 +419,7 @@ class BaseAction(ZulipTestCase):
             pronouns_field_type_supported=pronouns_field_type_supported,
             linkifier_url_template=linkifier_url_template,
             user_list_incomplete=user_list_incomplete,
+            include_deactivated_groups=include_deactivated_groups,
         )
         post_process_state(self.user_profile, normal_state, notification_settings_null)
         self.match_states(hybrid_state, normal_state, events)
@@ -1924,8 +1929,23 @@ class NormalActionsTest(BaseAction):
         # Test deactivate event
         with self.verify_action() as events:
             do_deactivate_user_group(backend, acting_user=None)
+        check_user_group_remove("events[0]", events[0])
+
+        with self.verify_action(include_deactivated_groups=True) as events:
+            do_deactivate_user_group(api_design, acting_user=None)
         check_user_group_update("events[0]", events[0], "deactivated")
 
+        with self.verify_action(num_events=0, state_change_expected=False):
+            do_update_user_group_name(api_design, "api-deisgn-team", acting_user=None)
+
+        with self.verify_action(include_deactivated_groups=True) as events:
+            do_update_user_group_name(api_design, "api-deisgn", acting_user=None)
+        check_user_group_update("events[0]", events[0], "name")
+
+        # Reactivate the group to test "remove" event.
+        backend.deactivated = False
+        backend.save()
+
         # Test remove event
         with self.verify_action() as events:
             check_delete_user_group(backend, acting_user=othello)
diff --git a/zerver/tornado/django_api.py b/zerver/tornado/django_api.py
index 8d5c088301..fbff9253eb 100644
--- a/zerver/tornado/django_api.py
+++ b/zerver/tornado/django_api.py
@@ -90,6 +90,7 @@ def request_event_queue(
     pronouns_field_type_supported: bool = True,
     linkifier_url_template: bool = False,
     user_list_incomplete: bool = False,
+    include_deactivated_groups: bool = False,
 ) -> str | None:
     if not settings.USING_TORNADO:
         return None
@@ -113,6 +114,7 @@ def request_event_queue(
         "pronouns_field_type_supported": orjson.dumps(pronouns_field_type_supported),
         "linkifier_url_template": orjson.dumps(linkifier_url_template),
         "user_list_incomplete": orjson.dumps(user_list_incomplete),
+        "include_deactivated_groups": orjson.dumps(include_deactivated_groups),
     }
 
     if event_types is not None:
diff --git a/zerver/tornado/event_queue.py b/zerver/tornado/event_queue.py
index 9ab0a6e031..6b0f246424 100644
--- a/zerver/tornado/event_queue.py
+++ b/zerver/tornado/event_queue.py
@@ -78,6 +78,7 @@ class ClientDescriptor:
         pronouns_field_type_supported: bool = True,
         linkifier_url_template: bool = False,
         user_list_incomplete: bool = False,
+        include_deactivated_groups: bool = False,
     ) -> None:
         # TODO: We eventually want to upstream this code to the caller, but
         # serialization concerns make it a bit difficult.
@@ -108,6 +109,7 @@ class ClientDescriptor:
         self.pronouns_field_type_supported = pronouns_field_type_supported
         self.linkifier_url_template = linkifier_url_template
         self.user_list_incomplete = user_list_incomplete
+        self.include_deactivated_groups = include_deactivated_groups
 
         # Default for lifespan_secs is DEFAULT_EVENT_QUEUE_TIMEOUT_SECS;
         # but users can set it as high as MAX_QUEUE_TIMEOUT_SECS.
@@ -138,6 +140,7 @@ class ClientDescriptor:
             pronouns_field_type_supported=self.pronouns_field_type_supported,
             linkifier_url_template=self.linkifier_url_template,
             user_list_incomplete=self.user_list_incomplete,
+            include_deactivated_groups=self.include_deactivated_groups,
         )
 
     @override
@@ -174,6 +177,7 @@ class ClientDescriptor:
             d.get("pronouns_field_type_supported", True),
             d.get("linkifier_url_template", False),
             d.get("user_list_incomplete", False),
+            d.get("include_deactivated_groups", False),
         )
         ret.last_connection_time = d["last_connection_time"]
         return ret
@@ -231,6 +235,16 @@ class ClientDescriptor:
             # events are sent only if user_settings_object is False,
             # otherwise only 'user_settings' event is sent.
             return False
+        if event["type"] == "user_group":
+            if event["op"] == "remove":
+                # 'user_group/remove' events are only sent if the client
+                # cannot filter out deactivated groups by themselves.
+                return not self.include_deactivated_groups
+            if event["op"] == "update" and "deactivated" in event["data"]:
+                # 'update' events for group deactivation are only sent to
+                # clients who can filter out deactivated groups by themselves.
+                # Other clients receive 'remove' event.
+                return self.include_deactivated_groups
         return True
 
     # TODO: Refactor so we don't need this function
@@ -1556,6 +1570,21 @@ def reformat_legacy_send_message_event(
     return (modern_event, user_dicts)
 
 
+def process_user_group_name_update_event(event: Mapping[str, Any], users: Iterable[int]) -> None:
+    user_group_event = dict(event)
+    # 'deactivated' field is no longer needed and can be popped, as we now
+    # know whether the group that was renamed is deactivated or not and can
+    # avoid sending the event to client with 'include_deactivated_groups'
+    # client capability set to false.
+    event_for_deactivated_group = user_group_event.pop("deactivated", False)
+    for user_profile_id in users:
+        for client in get_client_descriptors_for_user(user_profile_id):
+            if client.accepts_event(user_group_event):
+                if event_for_deactivated_group and not client.include_deactivated_groups:
+                    continue
+                client.add_event(user_group_event)
+
+
 def process_notification(notice: Mapping[str, Any]) -> None:
     event: Mapping[str, Any] = notice["event"]
     users: list[int] | list[Mapping[str, Any]] = notice["users"]
@@ -1579,6 +1608,11 @@ def process_notification(notice: Mapping[str, Any]) -> None:
         process_custom_profile_fields_event(event, cast(list[int], users))
     elif event["type"] == "realm_user" and event["op"] == "add":
         process_realm_user_add_event(event, cast(list[int], users))
+    elif event["type"] == "user_group" and event["op"] == "update" and "name" in event["data"]:
+        # Only name can be changed for deactivated groups, so we handle the
+        # event sent for updating name separately for clients with different
+        # capabilities.
+        process_user_group_name_update_event(event, cast(list[int], users))
     elif event["type"] == "cleanup_queue":
         # cleanup_event_queue may generate this event to forward cleanup
         # requests to the right shard.
diff --git a/zerver/tornado/views.py b/zerver/tornado/views.py
index 94e4710ce3..f2a9060bdd 100644
--- a/zerver/tornado/views.py
+++ b/zerver/tornado/views.py
@@ -206,6 +206,10 @@ def get_events_backend(
         Json[bool],
         ApiParamConfig(documentation_status=DocumentationStatus.INTENTIONALLY_UNDOCUMENTED),
     ] = False,
+    include_deactivated_groups: Annotated[
+        Json[bool],
+        ApiParamConfig(documentation_status=DocumentationStatus.INTENTIONALLY_UNDOCUMENTED),
+    ] = False,
 ) -> HttpResponse:
     if narrow is None:
         narrow = []
@@ -243,6 +247,7 @@ def get_events_backend(
             pronouns_field_type_supported=pronouns_field_type_supported,
             linkifier_url_template=linkifier_url_template,
             user_list_incomplete=user_list_incomplete,
+            include_deactivated_groups=include_deactivated_groups,
         )
 
     result = in_tornado_thread(fetch_events)(