diff --git a/apps/studio/components/interfaces/Auth/EmailTemplates/CustomEmailTemplateRestrictionAdmonition.tsx b/apps/studio/components/interfaces/Auth/EmailTemplates/CustomEmailTemplateRestrictionAdmonition.tsx
index 93603c72b21..7454dba049b 100644
--- a/apps/studio/components/interfaces/Auth/EmailTemplates/CustomEmailTemplateRestrictionAdmonition.tsx
+++ b/apps/studio/components/interfaces/Auth/EmailTemplates/CustomEmailTemplateRestrictionAdmonition.tsx
@@ -1,8 +1,15 @@
+import { ChevronDown } from 'lucide-react'
 import Link from 'next/link'
-import { Button } from 'ui'
+import {
+  Button,
+  DropdownMenu,
+  DropdownMenuContent,
+  DropdownMenuItem,
+  DropdownMenuTrigger,
+} from 'ui'
 import { Admonition } from 'ui-patterns/admonition'
 
-import { UpgradePlanButton } from '@/components/ui/UpgradePlanButton'
+import { useSelectedOrganizationQuery } from '@/hooks/misc/useSelectedOrganization'
 
 interface CustomEmailTemplateRestrictionAdmonitionProps {
   projectRef?: string
@@ -11,27 +18,41 @@ interface CustomEmailTemplateRestrictionAdmonitionProps {
 export const CustomEmailTemplateRestrictionAdmonition = ({
   projectRef,
 }: CustomEmailTemplateRestrictionAdmonitionProps) => {
+  const { data: selectedOrganization } = useSelectedOrganizationQuery()
+  const organizationSlug = selectedOrganization?.slug ?? '_'
+
   return (
     <Admonition
       type="default"
       layout="responsive"
-      title="Custom templates require Custom SMTP or Pro"
-      description="This project can view the default email templates, but editing subject lines or HTML is disabled while it uses Supabase's built-in email service on the Free plan. Set up Custom SMTP, configure a send-email hook, or upgrade to Pro to customise templates."
+      title="Set up Custom SMTP to edit templates"
+      description="Default templates are read-only while this project uses Supabase's built-in email service."
       actions={
         <>
-          <Button asChild type="default">
+          <Button asChild type="primary">
             <Link href={`/project/${projectRef ?? '_'}/auth/smtp`}>Set up SMTP</Link>
           </Button>
-          <Button asChild type="default">
-            <Link href={`/project/${projectRef ?? '_'}/auth/hooks`}>Configure hook</Link>
-          </Button>
-          <UpgradePlanButton
-            source="authEmailTemplates"
-            variant="default"
-            featureProposition="customise Auth email templates"
-          >
-            Upgrade to Pro
-          </UpgradePlanButton>
+          <DropdownMenu>
+            <DropdownMenuTrigger asChild>
+              <Button type="default" iconRight={<ChevronDown size={14} />}>
+                Other options
+              </Button>
+            </DropdownMenuTrigger>
+            <DropdownMenuContent align="end" className="w-52">
+              <DropdownMenuItem asChild>
+                <Link
+                  href={`/org/${organizationSlug}/billing?panel=subscriptionPlan&source=authEmailTemplates`}
+                >
+                  Upgrade to Pro
+                </Link>
+              </DropdownMenuItem>
+              <DropdownMenuItem asChild>
+                <Link href={`/project/${projectRef ?? '_'}/auth/hooks`}>
+                  Configure send-email hook
+                </Link>
+              </DropdownMenuItem>
+            </DropdownMenuContent>
+          </DropdownMenu>
         </>
       }
     />
diff --git a/apps/studio/components/interfaces/Auth/EmailTemplates/TemplateEditor.tsx b/apps/studio/components/interfaces/Auth/EmailTemplates/TemplateEditor.tsx
index d7d6da4484b..50eb14e61a3 100644
--- a/apps/studio/components/interfaces/Auth/EmailTemplates/TemplateEditor.tsx
+++ b/apps/studio/components/interfaces/Auth/EmailTemplates/TemplateEditor.tsx
@@ -24,6 +24,7 @@ import { FormItemLayout } from 'ui-patterns/form/FormItemLayout/FormItemLayout'
 
 import { SpamValidation } from './SpamValidation'
 import { PreventNavigationOnUnsavedChanges } from '@/components/ui-patterns/Dialogs/PreventNavigationOnUnsavedChanges'
+import { ButtonTooltip } from '@/components/ui/ButtonTooltip'
 import CodeEditor from '@/components/ui/CodeEditor/CodeEditor'
 import { TwoOptionToggle } from '@/components/ui/TwoOptionToggle'
 import { useAuthConfigQuery } from '@/data/auth/auth-config-query'
@@ -169,6 +170,11 @@ export const TemplateEditor = ({ template, isReadOnly = false }: TemplateEditorP
   const baselineBodyValue = (authConfig && authConfig[messageSlug]) ?? ''
   const hasFormChanges = JSON.stringify(formValues) !== JSON.stringify(baselineValues)
   const hasChanges = hasFormChanges || baselineBodyValue !== bodyValue
+  const saveChangesTooltip = !canEdit
+    ? 'Set up Custom SMTP to edit and save templates'
+    : !hasChanges
+      ? 'Make a change before saving'
+      : undefined
 
   // Function to insert text at cursor position
   const insertTextAtCursor = (text: string) => {
@@ -229,6 +235,10 @@ export const TemplateEditor = ({ template, isReadOnly = false }: TemplateEditorP
     if (!hasChanges) setValidationResult(undefined)
   }, [hasChanges])
 
+  useEffect(() => {
+    if (!canEdit) setActiveView('preview')
+  }, [canEdit])
+
   return (
     <Form {...form}>
       <form onSubmit={form.handleSubmit(onSubmit)}>
@@ -282,8 +292,13 @@ export const TemplateEditor = ({ template, isReadOnly = false }: TemplateEditorP
                   width={60}
                   options={['preview', 'source']}
                   activeOption={activeView}
-                  onClickOption={(option) => setActiveView(option as 'source' | 'preview')}
+                  onClickOption={(option) => {
+                    if (!canEdit && option === 'source') return
+                    setActiveView(option as 'source' | 'preview')
+                  }}
                   borderOverride="border-muted"
+                  disabledOptions={!canEdit ? ['source'] : []}
+                  disabledOptionTooltip="Set up Custom SMTP to edit the source"
                 />
               </div>
               {activeView === 'source' ? (
@@ -357,14 +372,15 @@ export const TemplateEditor = ({ template, isReadOnly = false }: TemplateEditorP
                   Cancel
                 </Button>
               )}
-              <Button
+              <ButtonTooltip
                 type="primary"
                 htmlType="submit"
                 disabled={!canEdit || isSavingTemplate || !hasChanges}
                 loading={isSavingTemplate}
+                tooltip={{ content: { side: 'bottom', text: saveChangesTooltip } }}
               >
                 Save changes
-              </Button>
+              </ButtonTooltip>
             </CardFooter>
           </>
         )}
diff --git a/apps/studio/components/ui/TwoOptionToggle.tsx b/apps/studio/components/ui/TwoOptionToggle.tsx
index 4358e9a24b9..b439bc3e780 100644
--- a/apps/studio/components/ui/TwoOptionToggle.tsx
+++ b/apps/studio/components/ui/TwoOptionToggle.tsx
@@ -1,4 +1,4 @@
-import { cn } from 'ui'
+import { cn, Tooltip, TooltipContent, TooltipTrigger } from 'ui'
 
 interface TwoOptionToggleProps {
   options: string[]
@@ -6,6 +6,8 @@ interface TwoOptionToggleProps {
   activeOption: string
   onClickOption: (value: string) => void
   borderOverride: string
+  disabledOptions?: string[]
+  disabledOptionTooltip?: string
 }
 
 export const TwoOptionToggle = ({
@@ -14,6 +16,8 @@ export const TwoOptionToggle = ({
   activeOption,
   onClickOption,
   borderOverride = 'border-stronger',
+  disabledOptions = [],
+  disabledOptionTooltip,
 }: TwoOptionToggleProps) => {
   const buttonStyle = (
     isActive: boolean
@@ -36,28 +40,43 @@ export const TwoOptionToggle = ({
           'transition-all ease-in-out border border-strong'
         )}
       />
-      {options.map((option, index: number) => (
-        <span
-          key={`toggle_${index}`}
-          style={{ width: width + 1 }}
-          className={`
-              ${activeOption === option ? 'text-foreground' : 'text-foreground-light'}
-              ${index === 0 ? 'right-0' : 'left-0'}
-              ${buttonStyle(activeOption === option)}
-              cursor-pointer
-            `}
-          onClick={() => onClickOption(option)}
-        >
+      {options.map((option, index: number) => {
+        const isDisabled = disabledOptions.includes(option)
+        const optionButton = (
           <span
+            key={`toggle_${index}`}
+            style={{ width: width + 1 }}
             className={cn(
-              'capitalize hover:text-foreground',
-              activeOption === option ? 'text-foreground' : 'text-foreground-light'
+              activeOption === option ? 'text-foreground' : 'text-foreground-light',
+              index === 0 ? 'right-0' : 'left-0',
+              buttonStyle(activeOption === option),
+              isDisabled ? 'cursor-not-allowed opacity-50' : 'cursor-pointer'
             )}
+            onClick={() => {
+              if (!isDisabled) onClickOption(option)
+            }}
           >
-            {option}
+            <span
+              className={cn(
+                'capitalize hover:text-foreground',
+                activeOption === option ? 'text-foreground' : 'text-foreground-light',
+                isDisabled && 'hover:text-foreground-light'
+              )}
+            >
+              {option}
+            </span>
           </span>
-        </span>
-      ))}
+        )
+
+        if (!isDisabled || !disabledOptionTooltip) return optionButton
+
+        return (
+          <Tooltip key={`toggle_${index}`}>
+            <TooltipTrigger asChild>{optionButton}</TooltipTrigger>
+            <TooltipContent side="top">{disabledOptionTooltip}</TooltipContent>
+          </Tooltip>
+        )
+      })}
     </div>
   )
 }