diff --git a/src/plugins/telemetry_collection_manager/server/plugin.ts b/src/plugins/telemetry_collection_manager/server/plugin.ts
index c3db0ca39e6ac..051bb3a11cb16 100644
--- a/src/plugins/telemetry_collection_manager/server/plugin.ts
+++ b/src/plugins/telemetry_collection_manager/server/plugin.ts
@@ -37,7 +37,7 @@ import {
   UsageStatsPayload,
   StatsCollectionContext,
 } from './types';
-
+import { isClusterOptedIn } from './util';
 import { encryptTelemetry } from './encryption';
 
 interface TelemetryCollectionPluginsDepsSetup {
@@ -205,7 +205,9 @@ export class TelemetryCollectionManagerPlugin
             return usageData;
           }
 
-          return encryptTelemetry(usageData, { useProdKey: this.isDistributable });
+          return encryptTelemetry(usageData.filter(isClusterOptedIn), {
+            useProdKey: this.isDistributable,
+          });
         }
       } catch (err) {
         this.logger.debug(
diff --git a/src/plugins/telemetry_collection_manager/server/util.test.ts b/src/plugins/telemetry_collection_manager/server/util.test.ts
new file mode 100644
index 0000000000000..ba5d999c3bf9a
--- /dev/null
+++ b/src/plugins/telemetry_collection_manager/server/util.test.ts
@@ -0,0 +1,51 @@
+/*
+ * Licensed to Elasticsearch B.V. under one or more contributor
+ * license agreements. See the NOTICE file distributed with
+ * this work for additional information regarding copyright
+ * ownership. Elasticsearch B.V. licenses this file to you under
+ * the Apache License, Version 2.0 (the "License"); you may
+ * not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *    http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing,
+ * software distributed under the License is distributed on an
+ * "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ * KIND, either express or implied.  See the License for the
+ * specific language governing permissions and limitations
+ * under the License.
+ */
+
+import { isClusterOptedIn } from './util';
+
+const createMockClusterUsage = (plugins: any) => {
+  return {
+    stack_stats: {
+      kibana: { plugins },
+    },
+  };
+};
+
+describe('isClusterOptedIn', () => {
+  it('returns true if cluster has opt_in_status: true', () => {
+    const mockClusterUsage = createMockClusterUsage({ telemetry: { opt_in_status: true } });
+    const result = isClusterOptedIn(mockClusterUsage);
+    expect(result).toBe(true);
+  });
+  it('returns false if cluster has opt_in_status: false', () => {
+    const mockClusterUsage = createMockClusterUsage({ telemetry: { opt_in_status: false } });
+    const result = isClusterOptedIn(mockClusterUsage);
+    expect(result).toBe(false);
+  });
+  it('returns false if cluster has opt_in_status: undefined', () => {
+    const mockClusterUsage = createMockClusterUsage({ telemetry: {} });
+    const result = isClusterOptedIn(mockClusterUsage);
+    expect(result).toBe(false);
+  });
+  it('returns false if cluster stats is malformed', () => {
+    expect(isClusterOptedIn(createMockClusterUsage({}))).toBe(false);
+    expect(isClusterOptedIn({})).toBe(false);
+    expect(isClusterOptedIn(undefined)).toBe(false);
+  });
+});
diff --git a/src/plugins/telemetry_collection_manager/server/util.ts b/src/plugins/telemetry_collection_manager/server/util.ts
new file mode 100644
index 0000000000000..d6e1b51663688
--- /dev/null
+++ b/src/plugins/telemetry_collection_manager/server/util.ts
@@ -0,0 +1,22 @@
+/*
+ * Licensed to Elasticsearch B.V. under one or more contributor
+ * license agreements. See the NOTICE file distributed with
+ * this work for additional information regarding copyright
+ * ownership. Elasticsearch B.V. licenses this file to you under
+ * the Apache License, Version 2.0 (the "License"); you may
+ * not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *    http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing,
+ * software distributed under the License is distributed on an
+ * "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ * KIND, either express or implied.  See the License for the
+ * specific language governing permissions and limitations
+ * under the License.
+ */
+
+export const isClusterOptedIn = (clusterUsage: any): boolean => {
+  return clusterUsage?.stack_stats?.kibana?.plugins?.telemetry?.opt_in_status === true;
+};