diff --git a/app/controllers/projects/runners_controller.rb b/app/controllers/projects/runners_controller.rb
index ca62f54813b054e95175997c8752a3a03d00ce23..fb00156d3208a90d76a31f6c79ada68ab5ac7e4a 100644
--- a/app/controllers/projects/runners_controller.rb
+++ b/app/controllers/projects/runners_controller.rb
@@ -50,6 +50,10 @@ def show
   end
 
   def toggle_shared_runners
+    if Feature.enabled?(:disable_shared_runners_on_group, default_enabled: true) && !project.shared_runners_enabled && project.group && project.group.shared_runners_setting == 'disabled_and_unoverridable'
+      return redirect_to project_runners_path(@project), alert: _("Cannot enable shared runners because parent group does not allow it")
+    end
+
     project.toggle!(:shared_runners_enabled)
 
     redirect_to project_settings_ci_cd_path(@project, anchor: 'js-runners-settings')
diff --git a/app/models/group.rb b/app/models/group.rb
index abb3f6c96c4dccfaa51e6614012d6bf911282182..4ecd096b2b4529a8c4a3256f2b8d9225584967e5 100644
--- a/app/models/group.rb
+++ b/app/models/group.rb
@@ -19,8 +19,6 @@ class Group < Namespace
 
   ACCESS_REQUEST_APPROVERS_TO_BE_NOTIFIED_LIMIT = 10
 
-  UpdateSharedRunnersError = Class.new(StandardError)
-
   has_many :all_group_members, -> { where(requested_at: nil) }, dependent: :destroy, as: :source, class_name: 'GroupMember' # rubocop:disable Cop/ActiveRecordDependent
   has_many :group_members, -> { where(requested_at: nil).where.not(members: { access_level: Gitlab::Access::MINIMAL_ACCESS }) }, dependent: :destroy, as: :source # rubocop:disable Cop/ActiveRecordDependent
   alias_method :members, :group_members
@@ -538,53 +536,14 @@ def preload_shared_group_links
     preloader.preload(self, shared_with_group_links: [shared_with_group: :route])
   end
 
-  def shared_runners_allowed?
-    shared_runners_enabled? || allow_descendants_override_disabled_shared_runners?
-  end
-
-  def parent_allows_shared_runners?
-    return true unless has_parent?
-
-    parent.shared_runners_allowed?
-  end
-
-  def parent_enabled_shared_runners?
-    return true unless has_parent?
-
-    parent.shared_runners_enabled?
-  end
-
-  def enable_shared_runners!
-    raise UpdateSharedRunnersError, 'Shared Runners disabled for the parent group' unless parent_enabled_shared_runners?
-
-    update_column(:shared_runners_enabled, true)
-  end
-
-  def disable_shared_runners!
-    group_ids = self_and_descendants
-    return if group_ids.empty?
-
-    Group.by_id(group_ids).update_all(shared_runners_enabled: false)
-
-    all_projects.update_all(shared_runners_enabled: false)
-  end
-
-  def allow_descendants_override_disabled_shared_runners!
-    raise UpdateSharedRunnersError, 'Shared Runners enabled' if shared_runners_enabled?
-    raise UpdateSharedRunnersError, 'Group level shared Runners not allowed' unless parent_allows_shared_runners?
-
-    update_column(:allow_descendants_override_disabled_shared_runners, true)
-  end
-
-  def disallow_descendants_override_disabled_shared_runners!
-    raise UpdateSharedRunnersError, 'Shared Runners enabled' if shared_runners_enabled?
+  def update_shared_runners_setting!(state)
+    raise ArgumentError unless SHARED_RUNNERS_SETTINGS.include?(state)
 
-    group_ids = self_and_descendants
-    return if group_ids.empty?
-
-    Group.by_id(group_ids).update_all(allow_descendants_override_disabled_shared_runners: false)
-
-    all_projects.update_all(shared_runners_enabled: false)
+    case state
+    when 'disabled_and_unoverridable' then disable_shared_runners! # also disallows override
+    when 'disabled_with_override' then disable_shared_runners_and_allow_override!
+    when 'enabled' then enable_shared_runners! # set both to true
+    end
   end
 
   def default_owner
@@ -668,6 +627,45 @@ def self.groups_including_descendants_by(group_ids)
       .new(Group.where(id: group_ids))
       .base_and_descendants
   end
+
+  def disable_shared_runners!
+    update!(
+      shared_runners_enabled: false,
+      allow_descendants_override_disabled_shared_runners: false)
+
+    group_ids = descendants
+    unless group_ids.empty?
+      Group.by_id(group_ids).update_all(
+        shared_runners_enabled: false,
+        allow_descendants_override_disabled_shared_runners: false)
+    end
+
+    all_projects.update_all(shared_runners_enabled: false)
+  end
+
+  def disable_shared_runners_and_allow_override!
+    # enabled -> disabled_with_override
+    if shared_runners_enabled?
+      update!(
+        shared_runners_enabled: false,
+        allow_descendants_override_disabled_shared_runners: true)
+
+      group_ids = descendants
+      unless group_ids.empty?
+        Group.by_id(group_ids).update_all(shared_runners_enabled: false)
+      end
+
+      all_projects.update_all(shared_runners_enabled: false)
+
+    # disabled_and_unoverridable -> disabled_with_override
+    else
+      update!(allow_descendants_override_disabled_shared_runners: true)
+    end
+  end
+
+  def enable_shared_runners!
+    update!(shared_runners_enabled: true)
+  end
 end
 
 Group.prepend_if_ee('EE::Group')
diff --git a/app/models/namespace.rb b/app/models/namespace.rb
index 527fa9d52d09d1810d5da6bb3647ecd374cd4604..f0550713d0169266b00cef68ef60775575fda2e6 100644
--- a/app/models/namespace.rb
+++ b/app/models/namespace.rb
@@ -18,6 +18,8 @@ class Namespace < ApplicationRecord
   # Android repo (15) + some extra backup.
   NUMBER_OF_ANCESTORS_ALLOWED = 20
 
+  SHARED_RUNNERS_SETTINGS = %w[disabled_and_unoverridable disabled_with_override enabled].freeze
+
   cache_markdown_field :description, pipeline: :description
 
   has_many :projects, dependent: :destroy # rubocop:disable Cop/ActiveRecordDependent
@@ -59,6 +61,8 @@ class Namespace < ApplicationRecord
   validates :max_artifacts_size, numericality: { only_integer: true, greater_than: 0, allow_nil: true }
 
   validate :nesting_level_allowed
+  validate :changing_shared_runners_enabled_is_allowed
+  validate :changing_allow_descendants_override_disabled_shared_runners_is_allowed
 
   validates_associated :runners
 
@@ -378,6 +382,52 @@ def actual_plan_name
     actual_plan.name
   end
 
+  def changing_shared_runners_enabled_is_allowed
+    return unless Feature.enabled?(:disable_shared_runners_on_group, default_enabled: true)
+    return unless new_record? || changes.has_key?(:shared_runners_enabled)
+
+    if shared_runners_enabled && has_parent? && parent.shared_runners_setting == 'disabled_and_unoverridable'
+      errors.add(:shared_runners_enabled, _('cannot be enabled because parent group has shared Runners disabled'))
+    end
+  end
+
+  def changing_allow_descendants_override_disabled_shared_runners_is_allowed
+    return unless Feature.enabled?(:disable_shared_runners_on_group, default_enabled: true)
+    return unless new_record? || changes.has_key?(:allow_descendants_override_disabled_shared_runners)
+
+    if shared_runners_enabled && !new_record?
+      errors.add(:allow_descendants_override_disabled_shared_runners, _('cannot be changed if shared runners are enabled'))
+    end
+
+    if allow_descendants_override_disabled_shared_runners && has_parent? && parent.shared_runners_setting == 'disabled_and_unoverridable'
+      errors.add(:allow_descendants_override_disabled_shared_runners, _('cannot be enabled because parent group does not allow it'))
+    end
+  end
+
+  def shared_runners_setting
+    if shared_runners_enabled
+      'enabled'
+    else
+      if allow_descendants_override_disabled_shared_runners
+        'disabled_with_override'
+      else
+        'disabled_and_unoverridable'
+      end
+    end
+  end
+
+  def shared_runners_setting_higher_than?(other_setting)
+    if other_setting == 'enabled'
+      false
+    elsif other_setting == 'disabled_with_override'
+      shared_runners_setting == 'enabled'
+    elsif other_setting == 'disabled_and_unoverridable'
+      shared_runners_setting == 'enabled' || shared_runners_setting == 'disabled_with_override'
+    else
+      raise ArgumentError
+    end
+  end
+
   private
 
   def all_projects_with_pages
diff --git a/app/models/project.rb b/app/models/project.rb
index a6454acbb42fec06946cc1a741dce130bdadb785..2125c5a9cd371dd016ef0abeadc975638696d4a6 100644
--- a/app/models/project.rb
+++ b/app/models/project.rb
@@ -435,6 +435,7 @@ class Project < ApplicationRecord
   validate :visibility_level_allowed_by_group, if: :should_validate_visibility_level?
   validate :visibility_level_allowed_as_fork, if: :should_validate_visibility_level?
   validate :validate_pages_https_only, if: -> { changes.has_key?(:pages_https_only) }
+  validate :changing_shared_runners_enabled_is_allowed
   validates :repository_storage,
     presence: true,
     inclusion: { in: ->(_object) { Gitlab.config.repositories.storages.keys } }
@@ -1189,6 +1190,15 @@ def validate_pages_https_only
     end
   end
 
+  def changing_shared_runners_enabled_is_allowed
+    return unless Feature.enabled?(:disable_shared_runners_on_group, default_enabled: true)
+    return unless new_record? || changes.has_key?(:shared_runners_enabled)
+
+    if shared_runners_enabled && group && group.shared_runners_setting == 'disabled_and_unoverridable'
+      errors.add(:shared_runners_enabled, _('cannot be enabled because parent group does not allow it'))
+    end
+  end
+
   def to_param
     if persisted? && errors.include?(:path)
       path_was
diff --git a/app/services/groups/create_service.rb b/app/services/groups/create_service.rb
index 51dca43fa4a66ff4bd262f170f618eb1fa836992..4747e1d5ac5ff8bd2d77f8f2c03d7ba3432e08cb 100644
--- a/app/services/groups/create_service.rb
+++ b/app/services/groups/create_service.rb
@@ -15,6 +15,8 @@ def execute
 
       after_build_hook(@group, params)
 
+      inherit_group_shared_runners_settings
+
       unless can_use_visibility_level? && can_create_group?
         return @group
       end
@@ -86,6 +88,13 @@ def set_visibility_level
 
       params[:visibility_level] = Gitlab::CurrentSettings.current_application_settings.default_group_visibility
     end
+
+    def inherit_group_shared_runners_settings
+      return unless @group.parent
+
+      @group.shared_runners_enabled = @group.parent.shared_runners_enabled
+      @group.allow_descendants_override_disabled_shared_runners = @group.parent.allow_descendants_override_disabled_shared_runners
+    end
   end
 end
 
diff --git a/app/services/groups/transfer_service.rb b/app/services/groups/transfer_service.rb
index 2bd571f60afebafe33ed3548aac99c254f5c64dd..70f5c7e2ea7741748f0f8cae4513263a399a7e66 100644
--- a/app/services/groups/transfer_service.rb
+++ b/app/services/groups/transfer_service.rb
@@ -103,6 +103,9 @@ def update_group_attributes
 
       @group.parent = @new_parent_group
       @group.clear_memoization(:self_and_ancestors_ids)
+
+      inherit_group_shared_runners_settings
+
       @group.save!
     end
 
@@ -161,6 +164,17 @@ def localized_error_messages
         group_contains_npm_packages: s_('TransferGroup|Group contains projects with NPM packages.')
       }.freeze
     end
+
+    def inherit_group_shared_runners_settings
+      parent_setting = @group.parent&.shared_runners_setting
+      return unless parent_setting
+
+      if @group.shared_runners_setting_higher_than?(parent_setting)
+        result = Groups::UpdateSharedRunnersService.new(@group, current_user, shared_runners_setting: parent_setting).execute
+
+        raise TransferError, result[:message] unless result[:status] == :success
+      end
+    end
   end
 end
 
diff --git a/app/services/groups/update_service.rb b/app/services/groups/update_service.rb
index 81393681dc04b83d6ad0a7782ea7e8c1f236224f..382a3dbf0f7325c387cd2364fbd52647c1fe0156 100644
--- a/app/services/groups/update_service.rb
+++ b/app/services/groups/update_service.rb
@@ -19,6 +19,8 @@ def execute
 
       return false unless valid_path_change_with_npm_packages?
 
+      return false unless update_shared_runners
+
       before_assignment_hook(group, params)
 
       group.assign_attributes(params)
@@ -98,6 +100,17 @@ def changing_share_with_group_lock?
 
       params[:share_with_group_lock] != group.share_with_group_lock
     end
+
+    def update_shared_runners
+      return true if params[:shared_runners_setting].nil?
+
+      result = Groups::UpdateSharedRunnersService.new(group, current_user, shared_runners_setting: params.delete(:shared_runners_setting)).execute
+
+      return true if result[:status] == :success
+
+      group.errors.add(:update_shared_runners, result[:message])
+      false
+    end
   end
 end
 
diff --git a/app/services/groups/update_shared_runners_service.rb b/app/services/groups/update_shared_runners_service.rb
index 63f5710451034413eaa70559455d1d73bd1d806b..639c5bf6ae05861390a260518bafcaec7e872b73 100644
--- a/app/services/groups/update_shared_runners_service.rb
+++ b/app/services/groups/update_shared_runners_service.rb
@@ -7,44 +7,24 @@ def execute
 
       validate_params
 
-      enable_or_disable_shared_runners!
-      allow_or_disallow_descendants_override_disabled_shared_runners!
+      update_shared_runners
 
       success
 
-    rescue Group::UpdateSharedRunnersError => error
+    rescue ActiveRecord::RecordInvalid, ArgumentError => error
       error(error.message)
     end
 
     private
 
     def validate_params
-      if Gitlab::Utils.to_boolean(params[:shared_runners_enabled]) && !params[:allow_descendants_override_disabled_shared_runners].nil?
-        raise Group::UpdateSharedRunnersError, 'Cannot set shared_runners_enabled to true and allow_descendants_override_disabled_shared_runners'
+      unless Namespace::SHARED_RUNNERS_SETTINGS.include?(params[:shared_runners_setting])
+        raise ArgumentError, "state must be one of: #{Namespace::SHARED_RUNNERS_SETTINGS.join(', ')}"
       end
     end
 
-    def enable_or_disable_shared_runners!
-      return if params[:shared_runners_enabled].nil?
-
-      if Gitlab::Utils.to_boolean(params[:shared_runners_enabled])
-        group.enable_shared_runners!
-      else
-        group.disable_shared_runners!
-      end
-    end
-
-    def allow_or_disallow_descendants_override_disabled_shared_runners!
-      return if params[:allow_descendants_override_disabled_shared_runners].nil?
-
-      # Needs to reset group because if both params are present could result in error
-      group.reset
-
-      if Gitlab::Utils.to_boolean(params[:allow_descendants_override_disabled_shared_runners])
-        group.allow_descendants_override_disabled_shared_runners!
-      else
-        group.disallow_descendants_override_disabled_shared_runners!
-      end
+    def update_shared_runners
+      group.update_shared_runners_setting!(params[:shared_runners_setting])
     end
   end
 end
diff --git a/app/services/projects/create_service.rb b/app/services/projects/create_service.rb
index 9943dc467317d5e2d7b05d7721e951f2693fbde0..6fc8e8f893590b2a49eff6862fbf61eccc97c578 100644
--- a/app/services/projects/create_service.rb
+++ b/app/services/projects/create_service.rb
@@ -19,6 +19,10 @@ def execute
 
       @project = Project.new(params)
 
+      # If a project is newly created it should have shared runners settings
+      # based on its group having it enabled. This is like the "default value"
+      @project.shared_runners_enabled = false if !params.key?(:shared_runners_enabled) && @project.group && @project.group.shared_runners_setting != 'enabled'
+
       # Make sure that the user is allowed to use the specified visibility level
       if project_visibility.restricted?
         deny_visibility_level(@project, project_visibility.visibility_level)
diff --git a/app/services/projects/transfer_service.rb b/app/services/projects/transfer_service.rb
index dba5177718d7df68091be0c91079097acf73f374..013861631a10b4abba78f18e4ff7c6daec236e5d 100644
--- a/app/services/projects/transfer_service.rb
+++ b/app/services/projects/transfer_service.rb
@@ -88,6 +88,10 @@ def attempt_transfer_transaction
         # Move uploads
         move_project_uploads(project)
 
+        # If a project is being transferred to another group it means it can already
+        # have shared runners enabled but we need to check whether the new group allows that.
+        project.shared_runners_enabled = false if project.group && project.group.shared_runners_setting == 'disabled_and_unoverridable'
+
         project.old_path_with_namespace = @old_path
 
         update_repository_configuration(@new_path)
diff --git a/changelogs/unreleased/change-transfer-update-create-services.yml b/changelogs/unreleased/change-transfer-update-create-services.yml
new file mode 100644
index 0000000000000000000000000000000000000000..a35016d229ceedfb2d82592c25466b74d01dd6d2
--- /dev/null
+++ b/changelogs/unreleased/change-transfer-update-create-services.yml
@@ -0,0 +1,5 @@
+---
+title: Change transfer, update and create services for groups and projects to take in consideration shared runners settings
+merge_request: 36080
+author: Arthur de Lapertosa Lisboa
+type: added
diff --git a/config/feature_flags/development/disable_shared_runners_on_group.yml b/config/feature_flags/development/disable_shared_runners_on_group.yml
new file mode 100644
index 0000000000000000000000000000000000000000..86ccf59c8a0f7334bf85edf1a31131a355bd70fe
--- /dev/null
+++ b/config/feature_flags/development/disable_shared_runners_on_group.yml
@@ -0,0 +1,7 @@
+---
+name: disable_shared_runners_on_group
+introduced_by_url: https://gitlab.com/gitlab-org/gitlab/-/merge_requests/36080
+rollout_issue_url: https://gitlab.com/gitlab-org/gitlab/-/issues/258991
+type: development
+group: group::runner
+default_enabled: true
diff --git a/locale/gitlab.pot b/locale/gitlab.pot
index 276a2a715c1b31b747b8d09266b3af3a66b9c5ee..48e30cbbde811dc45268516c35137300b800cbc5 100644
--- a/locale/gitlab.pot
+++ b/locale/gitlab.pot
@@ -4548,6 +4548,9 @@ msgstr ""
 msgid "Cannot create the abuse report. This user has been blocked."
 msgstr ""
 
+msgid "Cannot enable shared runners because parent group does not allow it"
+msgstr ""
+
 msgid "Cannot have multiple Jira imports running at the same time"
 msgstr ""
 
@@ -29951,6 +29954,15 @@ msgstr ""
 msgid "cannot be changed if a personal project has container registry tags."
 msgstr ""
 
+msgid "cannot be changed if shared runners are enabled"
+msgstr ""
+
+msgid "cannot be enabled because parent group does not allow it"
+msgstr ""
+
+msgid "cannot be enabled because parent group has shared Runners disabled"
+msgstr ""
+
 msgid "cannot be enabled unless all domains have TLS certificates"
 msgstr ""
 
diff --git a/spec/controllers/projects/runners_controller_spec.rb b/spec/controllers/projects/runners_controller_spec.rb
index 66f20bd50c458849d2cf4632aa96ac559735046b..2443a823070d69ad0683a35c98d5168404d7a853 100644
--- a/spec/controllers/projects/runners_controller_spec.rb
+++ b/spec/controllers/projects/runners_controller_spec.rb
@@ -73,4 +73,45 @@
       expect(runner.active).to eq(false)
     end
   end
+
+  describe '#toggle_shared_runners' do
+    let(:group) { create(:group) }
+    let(:project) { create(:project, group: group) }
+
+    it 'toggles shared_runners_enabled when the group allows shared runners' do
+      project.update!(shared_runners_enabled: true)
+
+      post :toggle_shared_runners, params: params
+
+      project.reload
+
+      expect(response).to have_gitlab_http_status(:found)
+      expect(project.shared_runners_enabled).to eq(false)
+    end
+
+    it 'toggles shared_runners_enabled when the group disallows shared runners but allows overrides' do
+      group.update!(shared_runners_enabled: false, allow_descendants_override_disabled_shared_runners: true)
+      project.update!(shared_runners_enabled: false)
+
+      post :toggle_shared_runners, params: params
+
+      project.reload
+
+      expect(response).to have_gitlab_http_status(:found)
+      expect(project.shared_runners_enabled).to eq(true)
+    end
+
+    it 'does not enable if the group disallows shared runners' do
+      group.update!(shared_runners_enabled: false, allow_descendants_override_disabled_shared_runners: false)
+      project.update!(shared_runners_enabled: false)
+
+      post :toggle_shared_runners, params: params
+
+      project.reload
+
+      expect(response).to have_gitlab_http_status(:found)
+      expect(project.shared_runners_enabled).to eq(false)
+      expect(flash[:alert]).to eq("Cannot enable shared runners because parent group does not allow it")
+    end
+  end
 end
diff --git a/spec/factories/namespaces.rb b/spec/factories/namespaces.rb
index 0dcec086da93fe1a2a68295989e5a8ce753e5d13..0ec977b8234525a5b33aceecd1b6dce71c38eaba 100644
--- a/spec/factories/namespaces.rb
+++ b/spec/factories/namespaces.rb
@@ -63,5 +63,13 @@ def create_graph(parent: nil, children: 4, depth: 4)
         )
       end
     end
+
+    trait :shared_runners_disabled do
+      shared_runners_enabled { false }
+    end
+
+    trait :allow_descendants_override_disabled_shared_runners do
+      allow_descendants_override_disabled_shared_runners { true }
+    end
   end
 end
diff --git a/spec/models/group_spec.rb b/spec/models/group_spec.rb
index f440efdfb072a4c6c2825d40f1b02ce628ec6338..ed027d02b5b5863b0a77a940602dd6ec7587057e 100644
--- a/spec/models/group_spec.rb
+++ b/spec/models/group_spec.rb
@@ -1344,229 +1344,134 @@ def setup_group_members(group)
     end
   end
 
-  describe '#shared_runners_allowed?' do
-    using RSpec::Parameterized::TableSyntax
-
-    where(:shared_runners_enabled, :allow_descendants_override, :expected_shared_runners_allowed) do
-      true  | false | true
-      true  | true  | true
-      false | false | false
-      false | true  | true
-    end
-
-    with_them do
-      let!(:group) { create(:group, shared_runners_enabled: shared_runners_enabled, allow_descendants_override_disabled_shared_runners: allow_descendants_override) }
-
-      it 'returns the expected result' do
-        expect(group.shared_runners_allowed?).to eq(expected_shared_runners_allowed)
-      end
-    end
+  def subject_and_reload(*models)
+    subject
+    models.map(&:reload)
   end
 
-  describe '#parent_allows_shared_runners?' do
-    context 'when parent group is present' do
-      using RSpec::Parameterized::TableSyntax
-
-      where(:shared_runners_enabled, :allow_descendants_override, :expected_shared_runners_allowed) do
-        true  | false | true
-        true  | true  | true
-        false | false | false
-        false | true  | true
-      end
-
-      with_them do
-        let!(:parent_group) { create(:group, shared_runners_enabled: shared_runners_enabled, allow_descendants_override_disabled_shared_runners: allow_descendants_override) }
-        let!(:group) { create(:group, parent: parent_group) }
-
-        it 'returns the expected result' do
-          expect(group.parent_allows_shared_runners?).to eq(expected_shared_runners_allowed)
+  describe '#update_shared_runners_setting!' do
+    context 'enabled' do
+      subject { group.update_shared_runners_setting!('enabled') }
+
+      context 'group that its ancestors have shared runners disabled' do
+        let_it_be(:parent) { create(:group, :shared_runners_disabled) }
+        let_it_be(:group) { create(:group, :shared_runners_disabled, parent: parent) }
+        let_it_be(:project) { create(:project, shared_runners_enabled: false, group: group) }
+
+        it 'raises error and does not enable shared Runners' do
+          expect { subject_and_reload(parent, group, project) }
+            .to raise_error(ActiveRecord::RecordInvalid, 'Validation failed: Shared runners enabled cannot be enabled because parent group has shared Runners disabled')
+            .and not_change { parent.shared_runners_enabled }
+            .and not_change { group.shared_runners_enabled }
+            .and not_change { project.shared_runners_enabled }
         end
       end
-    end
-
-    context 'when parent group is missing' do
-      let!(:group) { create(:group) }
-
-      it 'returns true' do
-        expect(group.parent_allows_shared_runners?).to be_truthy
-      end
-    end
-  end
-
-  describe '#parent_enabled_shared_runners?' do
-    subject { group.parent_enabled_shared_runners? }
-
-    context 'when parent group is present' do
-      context 'When shared Runners are disabled' do
-        let!(:parent_group) { create(:group, :shared_runners_disabled) }
-        let!(:group) { create(:group, parent: parent_group) }
-
-        it { is_expected.to be_falsy }
-      end
-
-      context 'When shared Runners are enabled' do
-        let!(:parent_group) { create(:group) }
-        let!(:group) { create(:group, parent: parent_group) }
-
-        it { is_expected.to be_truthy }
-      end
-    end
 
-    context 'when parent group is missing' do
-      let!(:group) { create(:group) }
+      context 'root group with shared runners disabled' do
+        let_it_be(:group) { create(:group, :shared_runners_disabled) }
+        let_it_be(:sub_group) { create(:group, :shared_runners_disabled, parent: group) }
+        let_it_be(:project) { create(:project, shared_runners_enabled: false, group: sub_group) }
 
-      it { is_expected.to be_truthy }
-    end
-  end
-
-  describe '#enable_shared_runners!' do
-    subject { group.enable_shared_runners! }
-
-    context 'group that its ancestors have shared runners disabled' do
-      let_it_be(:parent) { create(:group, :shared_runners_disabled) }
-      let_it_be(:group) { create(:group, :shared_runners_disabled, parent: parent) }
-      let_it_be(:project) { create(:project, shared_runners_enabled: false, group: group) }
-
-      it 'raises error and does not enable shared Runners' do
-        expect { subject }
-          .to raise_error(described_class::UpdateSharedRunnersError, 'Shared Runners disabled for the parent group')
-          .and not_change { parent.reload.shared_runners_enabled }
-          .and not_change { group.reload.shared_runners_enabled }
-          .and not_change { project.reload.shared_runners_enabled }
+        it 'enables shared Runners only for itself' do
+          expect { subject_and_reload(group, sub_group, project) }
+            .to change { group.shared_runners_enabled }.from(false).to(true)
+            .and not_change { sub_group.shared_runners_enabled }
+            .and not_change { project.shared_runners_enabled }
+        end
       end
     end
 
-    context 'root group with shared runners disabled' do
-      let_it_be(:group) { create(:group, :shared_runners_disabled) }
-      let_it_be(:sub_group) { create(:group, :shared_runners_disabled, parent: group) }
-      let_it_be(:project) { create(:project, shared_runners_enabled: false, group: sub_group) }
-
-      it 'enables shared Runners only for itself' do
-        expect { subject }
-          .to change { group.reload.shared_runners_enabled }.from(false).to(true)
-          .and not_change { sub_group.reload.shared_runners_enabled }
-          .and not_change { project.reload.shared_runners_enabled }
+    context 'disabled_and_unoverridable' do
+      let_it_be(:group) { create(:group) }
+      let_it_be(:sub_group) { create(:group, :shared_runners_disabled, :allow_descendants_override_disabled_shared_runners, parent: group) }
+      let_it_be(:sub_group_2) { create(:group, parent: group) }
+      let_it_be(:project) { create(:project, group: group, shared_runners_enabled: true) }
+      let_it_be(:project_2) { create(:project, group: sub_group_2, shared_runners_enabled: true) }
+
+      subject { group.update_shared_runners_setting!('disabled_and_unoverridable') }
+
+      it 'disables shared Runners for all descendant groups and projects' do
+        expect { subject_and_reload(group, sub_group, sub_group_2, project, project_2) }
+          .to change { group.shared_runners_enabled }.from(true).to(false)
+          .and not_change { group.allow_descendants_override_disabled_shared_runners }
+          .and not_change { sub_group.shared_runners_enabled }
+          .and change { sub_group.allow_descendants_override_disabled_shared_runners }.from(true).to(false)
+          .and change { sub_group_2.shared_runners_enabled }.from(true).to(false)
+          .and not_change { sub_group_2.allow_descendants_override_disabled_shared_runners }
+          .and change { project.shared_runners_enabled }.from(true).to(false)
+          .and change { project_2.shared_runners_enabled }.from(true).to(false)
+      end
+
+      context 'with override on self' do
+        let_it_be(:group) { create(:group, :shared_runners_disabled, :allow_descendants_override_disabled_shared_runners) }
+
+        it 'disables it' do
+          expect { subject_and_reload(group) }
+            .to not_change { group.shared_runners_enabled }
+            .and change { group.allow_descendants_override_disabled_shared_runners }.from(true).to(false)
+        end
       end
     end
-  end
-
-  describe '#disable_shared_runners!' do
-    let_it_be(:group) { create(:group) }
-    let_it_be(:sub_group) { create(:group, :shared_runners_disabled, :allow_descendants_override_disabled_shared_runners, parent: group) }
-    let_it_be(:sub_group_2) { create(:group, parent: group) }
-    let_it_be(:project) { create(:project, group: group, shared_runners_enabled: true) }
-    let_it_be(:project_2) { create(:project, group: sub_group_2, shared_runners_enabled: true) }
-
-    subject { group.disable_shared_runners! }
-
-    it 'disables shared Runners for all descendant groups and projects' do
-      expect { subject }
-        .to change { group.reload.shared_runners_enabled }.from(true).to(false)
-        .and not_change { group.reload.allow_descendants_override_disabled_shared_runners }
-        .and not_change { sub_group.reload.shared_runners_enabled }
-        .and not_change { sub_group.reload.allow_descendants_override_disabled_shared_runners }
-        .and change { sub_group_2.reload.shared_runners_enabled }.from(true).to(false)
-        .and not_change { sub_group_2.reload.allow_descendants_override_disabled_shared_runners }
-        .and change { project.reload.shared_runners_enabled }.from(true).to(false)
-        .and change { project_2.reload.shared_runners_enabled }.from(true).to(false)
-    end
-  end
-
-  describe '#allow_descendants_override_disabled_shared_runners!' do
-    subject { group.allow_descendants_override_disabled_shared_runners! }
 
-    context 'top level group' do
-      let_it_be(:group) { create(:group, :shared_runners_disabled) }
-      let_it_be(:sub_group) { create(:group, :shared_runners_disabled, parent: group) }
-      let_it_be(:project) { create(:project, shared_runners_enabled: false, group: sub_group) }
+    context 'disabled_with_override' do
+      subject { group.update_shared_runners_setting!('disabled_with_override') }
 
-      it 'enables allow descendants to override only for itself' do
-        expect { subject }
-          .to change { group.reload.allow_descendants_override_disabled_shared_runners }.from(false).to(true)
-          .and not_change { group.reload.shared_runners_enabled }
-          .and not_change { sub_group.reload.allow_descendants_override_disabled_shared_runners }
-          .and not_change { sub_group.reload.shared_runners_enabled }
-          .and not_change { project.reload.shared_runners_enabled }
-      end
-    end
+      context 'top level group' do
+        let_it_be(:group) { create(:group, :shared_runners_disabled) }
+        let_it_be(:sub_group) { create(:group, :shared_runners_disabled, parent: group) }
+        let_it_be(:project) { create(:project, shared_runners_enabled: false, group: sub_group) }
 
-    context 'group that its ancestors have shared Runners disabled but allows to override' do
-      let_it_be(:parent) { create(:group, :shared_runners_disabled, :allow_descendants_override_disabled_shared_runners) }
-      let_it_be(:group) { create(:group, :shared_runners_disabled, parent: parent) }
-      let_it_be(:project) { create(:project, shared_runners_enabled: false, group: group) }
-
-      it 'enables allow descendants to override' do
-        expect { subject }
-          .to not_change { parent.reload.allow_descendants_override_disabled_shared_runners }
-          .and not_change { parent.reload.shared_runners_enabled }
-          .and change { group.reload.allow_descendants_override_disabled_shared_runners }.from(false).to(true)
-          .and not_change { group.reload.shared_runners_enabled }
-          .and not_change { project.reload.shared_runners_enabled }
+        it 'enables allow descendants to override only for itself' do
+          expect { subject_and_reload(group, sub_group, project) }
+            .to change { group.allow_descendants_override_disabled_shared_runners }.from(false).to(true)
+            .and not_change { group.shared_runners_enabled }
+            .and not_change { sub_group.allow_descendants_override_disabled_shared_runners }
+            .and not_change { sub_group.shared_runners_enabled }
+            .and not_change { project.shared_runners_enabled }
+        end
       end
-    end
 
-    context 'when parent does not allow' do
-      let_it_be(:parent) { create(:group, :shared_runners_disabled, allow_descendants_override_disabled_shared_runners: false ) }
-      let_it_be(:group) { create(:group, :shared_runners_disabled, allow_descendants_override_disabled_shared_runners: false, parent: parent) }
+      context 'group that its ancestors have shared Runners disabled but allows to override' do
+        let_it_be(:parent) { create(:group, :shared_runners_disabled, :allow_descendants_override_disabled_shared_runners) }
+        let_it_be(:group) { create(:group, :shared_runners_disabled, parent: parent) }
+        let_it_be(:project) { create(:project, shared_runners_enabled: false, group: group) }
 
-      it 'raises error and does not allow descendants to override' do
-        expect { subject }
-          .to raise_error(described_class::UpdateSharedRunnersError, 'Group level shared Runners not allowed')
-          .and not_change { parent.reload.allow_descendants_override_disabled_shared_runners }
-          .and not_change { parent.reload.shared_runners_enabled }
-          .and not_change { group.reload.allow_descendants_override_disabled_shared_runners }
-          .and not_change { group.reload.shared_runners_enabled }
+        it 'enables allow descendants to override' do
+          expect { subject_and_reload(parent, group, project) }
+            .to not_change { parent.allow_descendants_override_disabled_shared_runners }
+            .and not_change { parent.shared_runners_enabled }
+            .and change { group.allow_descendants_override_disabled_shared_runners }.from(false).to(true)
+            .and not_change { group.shared_runners_enabled }
+            .and not_change { project.shared_runners_enabled }
+        end
       end
-    end
 
-    context 'top level group that has shared Runners enabled' do
-      let_it_be(:group) { create(:group, shared_runners_enabled: true) }
-      let_it_be(:sub_group) { create(:group, :shared_runners_disabled, parent: group) }
-      let_it_be(:project) { create(:project, shared_runners_enabled: false, group: sub_group) }
+      context 'when parent does not allow' do
+        let_it_be(:parent) { create(:group, :shared_runners_disabled, allow_descendants_override_disabled_shared_runners: false ) }
+        let_it_be(:group) { create(:group, :shared_runners_disabled, allow_descendants_override_disabled_shared_runners: false, parent: parent) }
 
-      it 'raises error and does not change config' do
-        expect { subject }
-          .to raise_error(described_class::UpdateSharedRunnersError, 'Shared Runners enabled')
-          .and not_change { group.reload.allow_descendants_override_disabled_shared_runners }
-          .and not_change { group.reload.shared_runners_enabled }
-          .and not_change { sub_group.reload.allow_descendants_override_disabled_shared_runners }
-          .and not_change { sub_group.reload.shared_runners_enabled }
-          .and not_change { project.reload.shared_runners_enabled }
+        it 'raises error and does not allow descendants to override' do
+          expect { subject_and_reload(parent, group) }
+            .to raise_error(ActiveRecord::RecordInvalid, 'Validation failed: Allow descendants override disabled shared runners cannot be enabled because parent group does not allow it')
+            .and not_change { parent.allow_descendants_override_disabled_shared_runners }
+            .and not_change { parent.shared_runners_enabled }
+            .and not_change { group.allow_descendants_override_disabled_shared_runners }
+            .and not_change { group.shared_runners_enabled }
+        end
       end
-    end
-  end
 
-  describe '#disallow_descendants_override_disabled_shared_runners!' do
-    subject { group.disallow_descendants_override_disabled_shared_runners! }
+      context 'top level group that has shared Runners enabled' do
+        let_it_be(:group) { create(:group, shared_runners_enabled: true) }
+        let_it_be(:sub_group) { create(:group, shared_runners_enabled: true, parent: group) }
+        let_it_be(:project) { create(:project, shared_runners_enabled: true, group: sub_group) }
 
-    context 'top level group' do
-      let_it_be(:group) { create(:group, :shared_runners_disabled, :allow_descendants_override_disabled_shared_runners ) }
-      let_it_be(:sub_group) { create(:group, :shared_runners_disabled, :allow_descendants_override_disabled_shared_runners, parent: group) }
-      let_it_be(:project) { create(:project, shared_runners_enabled: true, group: sub_group) }
-
-      it 'disables allow project to override for descendants and disables project shared Runners' do
-        expect { subject }
-          .to not_change { group.reload.shared_runners_enabled }
-          .and change { group.reload.allow_descendants_override_disabled_shared_runners }.from(true).to(false)
-          .and not_change { sub_group.reload.shared_runners_enabled }
-          .and change { sub_group.reload.allow_descendants_override_disabled_shared_runners }.from(true).to(false)
-          .and change { project.reload.shared_runners_enabled }.from(true).to(false)
-      end
-    end
-
-    context 'top level group that has shared Runners enabled' do
-      let_it_be(:group) { create(:group, shared_runners_enabled: true) }
-      let_it_be(:sub_group) { create(:group, :shared_runners_disabled, parent: group) }
-      let_it_be(:project) { create(:project, shared_runners_enabled: false, group: sub_group) }
-
-      it 'results error and does not change config' do
-        expect { subject }
-          .to raise_error(described_class::UpdateSharedRunnersError, 'Shared Runners enabled')
-          .and not_change { group.reload.allow_descendants_override_disabled_shared_runners }
-          .and not_change { group.reload.shared_runners_enabled }
-          .and not_change { sub_group.reload.allow_descendants_override_disabled_shared_runners }
-          .and not_change { sub_group.reload.shared_runners_enabled }
-          .and not_change { project.reload.shared_runners_enabled }
+        it 'enables allow descendants to override & disables shared runners everywhere' do
+          expect { subject_and_reload(group, sub_group, project) }
+            .to change { group.shared_runners_enabled }.from(true).to(false)
+            .and change { group.allow_descendants_override_disabled_shared_runners }.from(false).to(true)
+            .and change { sub_group.shared_runners_enabled }.from(true).to(false)
+            .and change { project.shared_runners_enabled }.from(true).to(false)
+        end
       end
     end
   end
diff --git a/spec/models/namespace_spec.rb b/spec/models/namespace_spec.rb
index ca1f06370d4cc519b25ed28e7956949cf1dbc0e2..2e607639e1be42349be656991e725023515fda07 100644
--- a/spec/models/namespace_spec.rb
+++ b/spec/models/namespace_spec.rb
@@ -1320,4 +1320,140 @@ def project_rugged(project)
       end
     end
   end
+
+  describe '#shared_runners_setting' do
+    using RSpec::Parameterized::TableSyntax
+
+    where(:shared_runners_enabled, :allow_descendants_override_disabled_shared_runners, :shared_runners_setting) do
+      true  | true  | 'enabled'
+      true  | false | 'enabled'
+      false | true  | 'disabled_with_override'
+      false | false | 'disabled_and_unoverridable'
+    end
+
+    with_them do
+      let(:namespace) { build(:namespace, shared_runners_enabled: shared_runners_enabled, allow_descendants_override_disabled_shared_runners: allow_descendants_override_disabled_shared_runners)}
+
+      it 'returns the result' do
+        expect(namespace.shared_runners_setting).to eq(shared_runners_setting)
+      end
+    end
+  end
+
+  describe '#shared_runners_setting_higher_than?' do
+    using RSpec::Parameterized::TableSyntax
+
+    where(:shared_runners_enabled, :allow_descendants_override_disabled_shared_runners, :other_setting, :result) do
+      true  | true  | 'enabled'                    | false
+      true  | true  | 'disabled_with_override'     | true
+      true  | true  | 'disabled_and_unoverridable' | true
+      false | true  | 'enabled'                    | false
+      false | true  | 'disabled_with_override'     | false
+      false | true  | 'disabled_and_unoverridable' | true
+      false | false | 'enabled'                    | false
+      false | false | 'disabled_with_override'     | false
+      false | false | 'disabled_and_unoverridable' | false
+    end
+
+    with_them do
+      let(:namespace) { build(:namespace, shared_runners_enabled: shared_runners_enabled, allow_descendants_override_disabled_shared_runners: allow_descendants_override_disabled_shared_runners)}
+
+      it 'returns the result' do
+        expect(namespace.shared_runners_setting_higher_than?(other_setting)).to eq(result)
+      end
+    end
+  end
+
+  describe 'validation #changing_shared_runners_enabled_is_allowed' do
+    context 'without a parent' do
+      let(:namespace) { build(:namespace, shared_runners_enabled: true) }
+
+      it 'is valid' do
+        expect(namespace).to be_valid
+      end
+    end
+
+    context 'with a parent' do
+      context 'when parent has shared runners disabled' do
+        let(:parent) { create(:namespace, :shared_runners_disabled) }
+        let(:sub_namespace) { build(:namespace, shared_runners_enabled: true, parent_id: parent.id) }
+
+        it 'is invalid' do
+          expect(sub_namespace).to be_invalid
+          expect(sub_namespace.errors[:shared_runners_enabled]).to include('cannot be enabled because parent group has shared Runners disabled')
+        end
+      end
+
+      context 'when parent has shared runners disabled but allows override' do
+        let(:parent) { create(:namespace, :shared_runners_disabled, :allow_descendants_override_disabled_shared_runners) }
+        let(:sub_namespace) { build(:namespace, shared_runners_enabled: true, parent_id: parent.id) }
+
+        it 'is valid' do
+          expect(sub_namespace).to be_valid
+        end
+      end
+
+      context 'when parent has shared runners enabled' do
+        let(:parent) { create(:namespace, shared_runners_enabled: true) }
+        let(:sub_namespace) { build(:namespace, shared_runners_enabled: true, parent_id: parent.id) }
+
+        it 'is valid' do
+          expect(sub_namespace).to be_valid
+        end
+      end
+    end
+  end
+
+  describe 'validation #changing_allow_descendants_override_disabled_shared_runners_is_allowed' do
+    context 'without a parent' do
+      context 'with shared runners disabled' do
+        let(:namespace) { build(:namespace, :allow_descendants_override_disabled_shared_runners, :shared_runners_disabled) }
+
+        it 'is valid' do
+          expect(namespace).to be_valid
+        end
+      end
+
+      context 'with shared runners enabled' do
+        let(:namespace) { create(:namespace) }
+
+        it 'is invalid' do
+          namespace.allow_descendants_override_disabled_shared_runners = true
+
+          expect(namespace).to be_invalid
+          expect(namespace.errors[:allow_descendants_override_disabled_shared_runners]).to include('cannot be changed if shared runners are enabled')
+        end
+      end
+    end
+
+    context 'with a parent' do
+      context 'when parent does not allow shared runners' do
+        let(:parent) { create(:namespace, :shared_runners_disabled) }
+        let(:sub_namespace) { build(:namespace, :shared_runners_disabled, :allow_descendants_override_disabled_shared_runners, parent_id: parent.id) }
+
+        it 'is invalid' do
+          expect(sub_namespace).to be_invalid
+          expect(sub_namespace.errors[:allow_descendants_override_disabled_shared_runners]).to include('cannot be enabled because parent group does not allow it')
+        end
+      end
+
+      context 'when parent allows shared runners and setting to true' do
+        let(:parent) { create(:namespace, shared_runners_enabled: true) }
+        let(:sub_namespace) { build(:namespace, :shared_runners_disabled, :allow_descendants_override_disabled_shared_runners, parent_id: parent.id) }
+
+        it 'is valid' do
+          expect(sub_namespace).to be_valid
+        end
+      end
+
+      context 'when parent allows shared runners and setting to false' do
+        let(:parent) { create(:namespace, shared_runners_enabled: true) }
+        let(:sub_namespace) { build(:namespace, :shared_runners_disabled, allow_descendants_override_disabled_shared_runners: false, parent_id: parent.id) }
+
+        it 'is valid' do
+          expect(sub_namespace).to be_valid
+        end
+      end
+    end
+  end
 end
diff --git a/spec/models/project_spec.rb b/spec/models/project_spec.rb
index 70bb590d885988f8344a47efef191b486cf5d06d..96645005d0aca65839d91b9235db4865264b0ee5 100644
--- a/spec/models/project_spec.rb
+++ b/spec/models/project_spec.rb
@@ -5813,6 +5813,38 @@ def enable_lfs
     end
   end
 
+  describe 'validation #changing_shared_runners_enabled_is_allowed' do
+    using RSpec::Parameterized::TableSyntax
+
+    where(:shared_runners_setting, :project_shared_runners_enabled, :valid_record) do
+      'enabled'                    | true  | true
+      'enabled'                    | false | true
+      'disabled_with_override'     | true  | true
+      'disabled_with_override'     | false | true
+      'disabled_and_unoverridable' | true  | false
+      'disabled_and_unoverridable' | false | true
+    end
+
+    with_them do
+      let(:group) { create(:group) }
+      let(:project) { build(:project, namespace: group, shared_runners_enabled: project_shared_runners_enabled) }
+
+      before do
+        allow_next_found_instance_of(Group) do |group|
+          allow(group).to receive(:shared_runners_setting).and_return(shared_runners_setting)
+        end
+      end
+
+      it 'validates the configuration' do
+        expect(project.valid?).to eq(valid_record)
+
+        unless valid_record
+          expect(project.errors[:shared_runners_enabled]).to contain_exactly('cannot be enabled because parent group does not allow it')
+        end
+      end
+    end
+  end
+
   describe '#mark_pages_as_deployed' do
     let(:project) { create(:project) }
     let(:artifacts_archive) { create(:ci_job_artifact, project: project) }
diff --git a/spec/services/groups/create_service_spec.rb b/spec/services/groups/create_service_spec.rb
index 6995caa9e6e0d065fa62bb71412ea71e9107537c..d5479fa2a06171c7ab7ae842637d397d186f8a34 100644
--- a/spec/services/groups/create_service_spec.rb
+++ b/spec/services/groups/create_service_spec.rb
@@ -185,4 +185,44 @@
       end
     end
   end
+
+  context 'shared runners configuration' do
+    context 'parent group present' do
+      using RSpec::Parameterized::TableSyntax
+
+      where(:shared_runners_config, :descendants_override_disabled_shared_runners_config) do
+        true  | false
+        false | false
+        # true  | true # invalid at the group level, leaving as comment to make explicit
+        false | true
+      end
+
+      with_them do
+        let!(:group) { create(:group, shared_runners_enabled: shared_runners_config, allow_descendants_override_disabled_shared_runners: descendants_override_disabled_shared_runners_config) }
+        let!(:service) { described_class.new(user, group_params.merge(parent_id: group.id)) }
+
+        before do
+          group.add_owner(user)
+        end
+
+        it 'creates group following the parent config' do
+          new_group = service.execute
+
+          expect(new_group.shared_runners_enabled).to eq(shared_runners_config)
+          expect(new_group.allow_descendants_override_disabled_shared_runners).to eq(descendants_override_disabled_shared_runners_config)
+        end
+      end
+    end
+
+    context 'root group' do
+      let!(:service) { described_class.new(user) }
+
+      it 'follows default config' do
+        new_group = service.execute
+
+        expect(new_group.shared_runners_enabled).to eq(true)
+        expect(new_group.allow_descendants_override_disabled_shared_runners).to eq(false)
+      end
+    end
+  end
 end
diff --git a/spec/services/groups/transfer_service_spec.rb b/spec/services/groups/transfer_service_spec.rb
index 89e4d091ff7b9c4019c3a42fa564ce06bde066ff..6144b86a316a942d60e80bfe10e4ce490716f128 100644
--- a/spec/services/groups/transfer_service_spec.rb
+++ b/spec/services/groups/transfer_service_spec.rb
@@ -285,6 +285,44 @@
         end
       end
 
+      context 'shared runners configuration' do
+        before do
+          create(:group_member, :owner, group: new_parent_group, user: user)
+        end
+
+        context 'if parent group has disabled shared runners but allows overrides' do
+          let(:new_parent_group) { create(:group, shared_runners_enabled: false, allow_descendants_override_disabled_shared_runners: true) }
+
+          it 'calls update service' do
+            expect(Groups::UpdateSharedRunnersService).to receive(:new).with(group, user, { shared_runners_setting: 'disabled_with_override' }).and_call_original
+
+            transfer_service.execute(new_parent_group)
+          end
+        end
+
+        context 'if parent group does not allow shared runners' do
+          let(:new_parent_group) { create(:group, shared_runners_enabled: false, allow_descendants_override_disabled_shared_runners: false) }
+
+          it 'calls update service' do
+            expect(Groups::UpdateSharedRunnersService).to receive(:new).with(group, user, { shared_runners_setting: 'disabled_and_unoverridable' }).and_call_original
+
+            transfer_service.execute(new_parent_group)
+          end
+        end
+
+        context 'if parent group allows shared runners' do
+          let(:group) { create(:group, :public, :nested, shared_runners_enabled: false) }
+          let(:new_parent_group) { create(:group, shared_runners_enabled: true) }
+
+          it 'does not call update service and keeps them disabled on the group' do
+            expect(Groups::UpdateSharedRunnersService).not_to receive(:new)
+
+            transfer_service.execute(new_parent_group)
+            expect(group.reload.shared_runners_enabled).to be_falsy
+          end
+        end
+      end
+
       context 'when a group is transferred to its subgroup' do
         let(:new_parent_group) { create(:group, parent: group) }
 
diff --git a/spec/services/groups/update_service_spec.rb b/spec/services/groups/update_service_spec.rb
index 1e6a8d53354f93c056d8c1881a7e9077dca2e2de..a79cda86a86619e1a025a5ba9ff5f88754bb231f 100644
--- a/spec/services/groups/update_service_spec.rb
+++ b/spec/services/groups/update_service_spec.rb
@@ -283,6 +283,31 @@
     end
   end
 
+  context 'change shared Runners config' do
+    let(:group) { create(:group) }
+    let(:project) { create(:project, shared_runners_enabled: true, group: group) }
+
+    subject { described_class.new(group, user, shared_runners_setting: 'disabled_and_unoverridable').execute }
+
+    before do
+      group.add_owner(user)
+    end
+
+    it 'calls the shared runners update service' do
+      expect_any_instance_of(::Groups::UpdateSharedRunnersService).to receive(:execute).and_return({ status: :success })
+
+      expect(subject).to be_truthy
+    end
+
+    it 'handles errors in the shared runners update service' do
+      expect_any_instance_of(::Groups::UpdateSharedRunnersService).to receive(:execute).and_return({ status: :error, message: 'something happened' })
+
+      expect(subject).to be_falsy
+
+      expect(group.errors[:update_shared_runners].first).to eq('something happened')
+    end
+  end
+
   def update_group(group, user, opts)
     Groups::UpdateService.new(group, user, opts).execute
   end
diff --git a/spec/services/groups/update_shared_runners_service_spec.rb b/spec/services/groups/update_shared_runners_service_spec.rb
index 9fd8477a455d72f8c3d2179587c80037b5655323..e2838c4ce0b73b0cdbb46b1bcd0921f58b3cb0ff 100644
--- a/spec/services/groups/update_shared_runners_service_spec.rb
+++ b/spec/services/groups/update_shared_runners_service_spec.rb
@@ -13,17 +13,14 @@
     context 'when current_user is not the group owner' do
       let_it_be(:group) { create(:group) }
 
-      let(:params) { { shared_runners_enabled: '0' } }
+      let(:params) { { shared_runners_setting: 'enabled' } }
 
       before do
         group.add_maintainer(user)
       end
 
       it 'results error and does not call any method' do
-        expect(group).not_to receive(:enable_shared_runners!)
-        expect(group).not_to receive(:disable_shared_runners!)
-        expect(group).not_to receive(:allow_descendants_override_disabled_shared_runners!)
-        expect(group).not_to receive(:disallow_descendants_override_disabled_shared_runners!)
+        expect(group).not_to receive(:update_shared_runners_setting!)
 
         expect(subject[:status]).to eq(:error)
         expect(subject[:message]).to eq('Operation not allowed')
@@ -37,191 +34,60 @@
       end
 
       context 'enable shared Runners' do
-        where(:desired_params) do
-          ['1', true]
-        end
-
-        with_them do
-          let(:params) { { shared_runners_enabled: desired_params } }
-
-          context 'group that its ancestors have shared runners disabled' do
-            let_it_be(:parent) { create(:group, :shared_runners_disabled) }
-            let_it_be(:group) { create(:group, :shared_runners_disabled, parent: parent) }
-
-            it 'results error' do
-              expect(subject[:status]).to eq(:error)
-              expect(subject[:message]).to eq('Shared Runners disabled for the parent group')
-            end
-          end
+        let(:params) { { shared_runners_setting: 'enabled' } }
 
-          context 'root group with shared runners disabled' do
-            let_it_be(:group) { create(:group, :shared_runners_disabled) }
+        context 'group that its ancestors have shared runners disabled' do
+          let_it_be(:parent) { create(:group, :shared_runners_disabled) }
+          let_it_be(:group) { create(:group, :shared_runners_disabled, parent: parent) }
 
-            it 'receives correct method and succeeds' do
-              expect(group).to receive(:enable_shared_runners!)
-              expect(group).not_to receive(:disable_shared_runners!)
-              expect(group).not_to receive(:allow_descendants_override_disabled_shared_runners!)
-              expect(group).not_to receive(:disallow_descendants_override_disabled_shared_runners!)
-
-              expect(subject[:status]).to eq(:success)
-            end
+          it 'results error' do
+            expect(subject[:status]).to eq(:error)
+            expect(subject[:message]).to eq('Validation failed: Shared runners enabled cannot be enabled because parent group has shared Runners disabled')
           end
         end
-      end
-
-      context 'disable shared Runners' do
-        let_it_be(:group) { create(:group) }
-
-        where(:desired_params) do
-          ['0', false]
-        end
 
-        with_them do
-          let(:params) { { shared_runners_enabled: desired_params } }
+        context 'root group with shared runners disabled' do
+          let_it_be(:group) { create(:group, :shared_runners_disabled) }
 
           it 'receives correct method and succeeds' do
-            expect(group).to receive(:disable_shared_runners!)
-            expect(group).not_to receive(:enable_shared_runners!)
-            expect(group).not_to receive(:allow_descendants_override_disabled_shared_runners!)
-            expect(group).not_to receive(:disallow_descendants_override_disabled_shared_runners!)
+            expect(group).to receive(:update_shared_runners_setting!).with('enabled')
 
             expect(subject[:status]).to eq(:success)
           end
         end
       end
 
-      context 'allow descendants to override' do
-        where(:desired_params) do
-          ['1', true]
-        end
-
-        with_them do
-          let(:params) { { allow_descendants_override_disabled_shared_runners: desired_params } }
-
-          context 'top level group' do
-            let_it_be(:group) { create(:group, :shared_runners_disabled) }
-
-            it 'receives correct method and succeeds' do
-              expect(group).to receive(:allow_descendants_override_disabled_shared_runners!)
-              expect(group).not_to receive(:disallow_descendants_override_disabled_shared_runners!)
-              expect(group).not_to receive(:enable_shared_runners!)
-              expect(group).not_to receive(:disable_shared_runners!)
-
-              expect(subject[:status]).to eq(:success)
-            end
-          end
+      context 'disable shared Runners' do
+        let_it_be(:group) { create(:group) }
+        let(:params) { { shared_runners_setting: 'disabled_and_unoverridable' } }
 
-          context 'when parent does not allow' do
-            let_it_be(:parent) { create(:group, :shared_runners_disabled, allow_descendants_override_disabled_shared_runners: false ) }
-            let_it_be(:group) { create(:group, :shared_runners_disabled, allow_descendants_override_disabled_shared_runners: false, parent: parent) }
+        it 'receives correct method and succeeds' do
+          expect(group).to receive(:update_shared_runners_setting!).with('disabled_and_unoverridable')
 
-            it 'results error' do
-              expect(subject[:status]).to eq(:error)
-              expect(subject[:message]).to eq('Group level shared Runners not allowed')
-            end
-          end
+          expect(subject[:status]).to eq(:success)
         end
       end
 
-      context 'disallow descendants to override' do
-        where(:desired_params) do
-          ['0', false]
-        end
-
-        with_them do
-          let(:params) { { allow_descendants_override_disabled_shared_runners: desired_params } }
-
-          context 'top level group' do
-            let_it_be(:group) { create(:group, :shared_runners_disabled, :allow_descendants_override_disabled_shared_runners ) }
-
-            it 'receives correct method and succeeds' do
-              expect(group).to receive(:disallow_descendants_override_disabled_shared_runners!)
-              expect(group).not_to receive(:allow_descendants_override_disabled_shared_runners!)
-              expect(group).not_to receive(:enable_shared_runners!)
-              expect(group).not_to receive(:disable_shared_runners!)
-
-              expect(subject[:status]).to eq(:success)
-            end
-          end
-
-          context 'top level group that has shared Runners enabled' do
-            let_it_be(:group) { create(:group, shared_runners_enabled: true) }
-
-            it 'results error' do
-              expect(subject[:status]).to eq(:error)
-              expect(subject[:message]).to eq('Shared Runners enabled')
-            end
-          end
-        end
-      end
+      context 'allow descendants to override' do
+        let(:params) { { shared_runners_setting: 'disabled_with_override' } }
 
-      context 'both params are present' do
-        context 'shared_runners_enabled: 1 and allow_descendants_override_disabled_shared_runners' do
+        context 'top level group' do
           let_it_be(:group) { create(:group, :shared_runners_disabled) }
-          let_it_be(:sub_group) { create(:group, :shared_runners_disabled, parent: group) }
-          let_it_be(:project) { create(:project, shared_runners_enabled: false, group: sub_group) }
 
-          where(:allow_descendants_override) do
-            ['1', true, '0', false]
-          end
+          it 'receives correct method and succeeds' do
+            expect(group).to receive(:update_shared_runners_setting!).with('disabled_with_override')
 
-          with_them do
-            let(:params) { { shared_runners_enabled: '1', allow_descendants_override_disabled_shared_runners: allow_descendants_override } }
-
-            it 'results in an error because shared Runners are enabled' do
-              expect { subject }
-                .to not_change { group.reload.shared_runners_enabled }
-                .and not_change { sub_group.reload.shared_runners_enabled }
-                .and not_change { project.reload.shared_runners_enabled }
-                .and not_change { group.reload.allow_descendants_override_disabled_shared_runners }
-                .and not_change { sub_group.reload.allow_descendants_override_disabled_shared_runners }
-              expect(subject[:status]).to eq(:error)
-              expect(subject[:message]).to eq('Cannot set shared_runners_enabled to true and allow_descendants_override_disabled_shared_runners')
-            end
+            expect(subject[:status]).to eq(:success)
           end
         end
 
-        context 'shared_runners_enabled: 0 and allow_descendants_override_disabled_shared_runners: 0' do
-          let_it_be(:group) { create(:group, :allow_descendants_override_disabled_shared_runners) }
-          let_it_be(:sub_group) { create(:group, :shared_runners_disabled, :allow_descendants_override_disabled_shared_runners, parent: group) }
-          let_it_be(:sub_group_2) { create(:group, parent: group) }
-          let_it_be(:project) { create(:project, group: group, shared_runners_enabled: true) }
-          let_it_be(:project_2) { create(:project, group: sub_group_2, shared_runners_enabled: true) }
-
-          let(:params) { { shared_runners_enabled: '0', allow_descendants_override_disabled_shared_runners: '0' } }
-
-          it 'disables shared Runners and disable allow_descendants_override_disabled_shared_runners' do
-            expect { subject }
-              .to change { group.reload.shared_runners_enabled }.from(true).to(false)
-              .and change { group.reload.allow_descendants_override_disabled_shared_runners }.from(true).to(false)
-              .and not_change { sub_group.reload.shared_runners_enabled }
-              .and change { sub_group.reload.allow_descendants_override_disabled_shared_runners }.from(true).to(false)
-              .and change { sub_group_2.reload.shared_runners_enabled }.from(true).to(false)
-              .and not_change { sub_group_2.reload.allow_descendants_override_disabled_shared_runners }
-              .and change { project.reload.shared_runners_enabled }.from(true).to(false)
-              .and change { project_2.reload.shared_runners_enabled }.from(true).to(false)
-          end
-        end
+        context 'when parent does not allow' do
+          let_it_be(:parent) { create(:group, :shared_runners_disabled, allow_descendants_override_disabled_shared_runners: false ) }
+          let_it_be(:group) { create(:group, :shared_runners_disabled, allow_descendants_override_disabled_shared_runners: false, parent: parent) }
 
-        context 'shared_runners_enabled: 0 and allow_descendants_override_disabled_shared_runners: 1' do
-          let_it_be(:group) { create(:group) }
-          let_it_be(:sub_group) { create(:group, :shared_runners_disabled, parent: group) }
-          let_it_be(:sub_group_2) { create(:group, parent: group) }
-          let_it_be(:project) { create(:project, group: group, shared_runners_enabled: true) }
-          let_it_be(:project_2) { create(:project, group: sub_group_2, shared_runners_enabled: true) }
-
-          let(:params) { { shared_runners_enabled: '0', allow_descendants_override_disabled_shared_runners: '1' } }
-
-          it 'disables shared Runners and enable allow_descendants_override_disabled_shared_runners only for itself' do
-            expect { subject }
-              .to change { group.reload.shared_runners_enabled }.from(true).to(false)
-              .and change { group.reload.allow_descendants_override_disabled_shared_runners }.from(false).to(true)
-              .and not_change { sub_group.reload.shared_runners_enabled }
-              .and not_change { sub_group.reload.allow_descendants_override_disabled_shared_runners }
-              .and change { sub_group_2.reload.shared_runners_enabled }.from(true).to(false)
-              .and not_change { sub_group_2.reload.allow_descendants_override_disabled_shared_runners }
-              .and change { project.reload.shared_runners_enabled }.from(true).to(false)
-              .and change { project_2.reload.shared_runners_enabled }.from(true).to(false)
+          it 'results error' do
+            expect(subject[:status]).to eq(:error)
+            expect(subject[:message]).to eq('Validation failed: Allow descendants override disabled shared runners cannot be enabled because parent group does not allow it')
           end
         end
       end
diff --git a/spec/services/projects/create_service_spec.rb b/spec/services/projects/create_service_spec.rb
index fde90dc8c802fa2fd8a5def5da798ee02fa80a13..b81b3e095cf8dd0943a19c9f4a6e4ed4182e51c8 100644
--- a/spec/services/projects/create_service_spec.rb
+++ b/spec/services/projects/create_service_spec.rb
@@ -782,4 +782,100 @@ def wiki_repo(project)
   def create_project(user, opts)
     Projects::CreateService.new(user, opts).execute
   end
+
+  context 'shared Runners config' do
+    using RSpec::Parameterized::TableSyntax
+
+    let_it_be(:user) { create :user }
+
+    context 'when parent group is present' do
+      let_it_be(:group) do
+        create(:group) do |group|
+          group.add_owner(user)
+        end
+      end
+
+      before do
+        allow_next_found_instance_of(Group) do |group|
+          allow(group).to receive(:shared_runners_setting).and_return(shared_runners_setting)
+        end
+
+        user.refresh_authorized_projects # Ensure cache is warm
+      end
+
+      context 'default value based on parent group setting' do
+        where(:shared_runners_setting, :desired_config_for_new_project, :expected_result_for_project) do
+          'enabled'                    | nil | true
+          'disabled_with_override'     | nil | false
+          'disabled_and_unoverridable' | nil | false
+        end
+
+        with_them do
+          it 'creates project following the parent config' do
+            params = opts.merge(namespace_id: group.id)
+            params = params.merge(shared_runners_enabled: desired_config_for_new_project) unless desired_config_for_new_project.nil?
+            project = create_project(user, params)
+
+            expect(project).to be_valid
+            expect(project.shared_runners_enabled).to eq(expected_result_for_project)
+          end
+        end
+      end
+
+      context 'parent group is present and allows desired config' do
+        where(:shared_runners_setting, :desired_config_for_new_project, :expected_result_for_project) do
+          'enabled'                    | true  | true
+          'enabled'                    | false | false
+          'disabled_with_override'     | false | false
+          'disabled_with_override'     | true  | true
+          'disabled_and_unoverridable' | false | false
+        end
+
+        with_them do
+          it 'creates project following the parent config' do
+            params = opts.merge(namespace_id: group.id, shared_runners_enabled: desired_config_for_new_project)
+            project = create_project(user, params)
+
+            expect(project).to be_valid
+            expect(project.shared_runners_enabled).to eq(expected_result_for_project)
+          end
+        end
+      end
+
+      context 'parent group is present and disallows desired config' do
+        where(:shared_runners_setting, :desired_config_for_new_project) do
+          'disabled_and_unoverridable' | true
+        end
+
+        with_them do
+          it 'does not create project' do
+            params = opts.merge(namespace_id: group.id, shared_runners_enabled: desired_config_for_new_project)
+            project = create_project(user, params)
+
+            expect(project.persisted?).to eq(false)
+            expect(project).to be_invalid
+            expect(project.errors[:shared_runners_enabled]).to include('cannot be enabled because parent group does not allow it')
+          end
+        end
+      end
+    end
+
+    context 'parent group is not present' do
+      where(:desired_config, :expected_result) do
+        true  | true
+        false | false
+        nil   | true
+      end
+
+      with_them do
+        it 'follows desired config' do
+          opts[:shared_runners_enabled] = desired_config unless desired_config.nil?
+          project = create_project(user, opts)
+
+          expect(project).to be_valid
+          expect(project.shared_runners_enabled).to eq(expected_result)
+        end
+      end
+    end
+  end
 end
diff --git a/spec/services/projects/transfer_service_spec.rb b/spec/services/projects/transfer_service_spec.rb
index a0e83fb4a219b06e1af1a76466bb92a92d68466f..3ae96d7a5ab0eda12a6856f0371a9aa3796acf33 100644
--- a/spec/services/projects/transfer_service_spec.rb
+++ b/spec/services/projects/transfer_service_spec.rb
@@ -314,6 +314,37 @@ def current_path
     end
   end
 
+  context 'shared Runners group level configurations' do
+    using RSpec::Parameterized::TableSyntax
+
+    where(:project_shared_runners_enabled, :shared_runners_setting, :expected_shared_runners_enabled) do
+      true  | 'disabled_and_unoverridable' | false
+      false | 'disabled_and_unoverridable' | false
+      true  | 'disabled_with_override'     | true
+      false | 'disabled_with_override'     | false
+      true  | 'enabled'                    | true
+      false | 'enabled'                    | false
+    end
+
+    with_them do
+      let(:project) { create(:project, :public, :repository, namespace: user.namespace, shared_runners_enabled: project_shared_runners_enabled) }
+      let(:group) { create(:group) }
+
+      before do
+        group.add_owner(user)
+        expect_next_found_instance_of(Group) do |group|
+          expect(group).to receive(:shared_runners_setting).and_return(shared_runners_setting)
+        end
+
+        execute_transfer
+      end
+
+      it 'updates shared runners based on the parent group' do
+        expect(project.shared_runners_enabled).to eq(expected_shared_runners_enabled)
+      end
+    end
+  end
+
   context 'missing group labels applied to issues or merge requests' do
     it 'delegates transfer to Labels::TransferService' do
       group.add_owner(user)
diff --git a/spec/services/projects/update_service_spec.rb b/spec/services/projects/update_service_spec.rb
index 7832d727220422094077a38e3d50f3598d179738..3375d9762c81c9a30acae94d95206cae6ea95857 100644
--- a/spec/services/projects/update_service_spec.rb
+++ b/spec/services/projects/update_service_spec.rb
@@ -151,6 +151,32 @@ def expect_to_call_unlink_fork_service
           expect(project.reload).to be_internal
         end
       end
+
+      context 'when updating shared runners' do
+        context 'can enable shared runners' do
+          let(:group) { create(:group, shared_runners_enabled: true) }
+          let(:project) { create(:project, namespace: group, shared_runners_enabled: false) }
+
+          it 'enables shared runners' do
+            result = update_project(project, user, shared_runners_enabled: true)
+
+            expect(result).to eq({ status: :success })
+            expect(project.reload.shared_runners_enabled).to be_truthy
+          end
+        end
+
+        context 'cannot enable shared runners' do
+          let(:group) { create(:group, :shared_runners_disabled) }
+          let(:project) { create(:project, namespace: group, shared_runners_enabled: false) }
+
+          it 'does not enable shared runners' do
+            result = update_project(project, user, shared_runners_enabled: true)
+
+            expect(result).to eq({ status: :error, message: 'Shared runners enabled cannot be enabled because parent group does not allow it' })
+            expect(project.reload.shared_runners_enabled).to be_falsey
+          end
+        end
+      end
     end
 
     describe 'when updating project that has forks' do