diff --git a/app/controllers/groups_controller.rb b/app/controllers/groups_controller.rb
index 32b187c32606c99a4b41e58214c423a07b059164..aefbb43f3df46d3a7d207be3758135b4b6a2382b 100644
--- a/app/controllers/groups_controller.rb
+++ b/app/controllers/groups_controller.rb
@@ -276,6 +276,7 @@ def group_params_attributes
       :avatar,
       :description,
       :emails_disabled,
+      :show_diff_preview_in_email,
       :mentions_disabled,
       :lfs_enabled,
       :name,
diff --git a/app/models/namespace.rb b/app/models/namespace.rb
index c678dbfa6311ff879cc7fa8ea443ab3cb4c559d4..d519ceb658d6dd364b02c7cad3339a8ebe152bd5 100644
--- a/app/models/namespace.rb
+++ b/app/models/namespace.rb
@@ -128,6 +128,8 @@ class Namespace < ApplicationRecord
   delegate :avatar_url, to: :owner, allow_nil: true
   delegate :prevent_sharing_groups_outside_hierarchy, :prevent_sharing_groups_outside_hierarchy=,
            to: :namespace_settings, allow_nil: true
+  delegate :show_diff_preview_in_email, :show_diff_preview_in_email?, :show_diff_preview_in_email=,
+           to: :namespace_settings
 
   after_save :schedule_sync_event_worker, if: -> { saved_change_to_id? || saved_change_to_parent_id? }
   after_save :reload_namespace_details
diff --git a/app/models/namespace_setting.rb b/app/models/namespace_setting.rb
index fa9b525d4fe99aee71235c9183d612108ac37f35..6a87fba57acfdd27568eec4cfb991fd988fc887c 100644
--- a/app/models/namespace_setting.rb
+++ b/app/models/namespace_setting.rb
@@ -58,8 +58,18 @@ def prevent_sharing_groups_outside_hierarchy
     namespace.root_ancestor.prevent_sharing_groups_outside_hierarchy
   end
 
+  def show_diff_preview_in_email?
+    return show_diff_preview_in_email unless namespace.has_parent?
+
+    all_ancestors_allow_diff_preview_in_email?
+  end
+
   private
 
+  def all_ancestors_allow_diff_preview_in_email?
+    !self.class.where(namespace_id: namespace.self_and_ancestors, show_diff_preview_in_email: false).exists?
+  end
+
   def normalize_default_branch_name
     self.default_branch_name = default_branch_name.presence
   end
diff --git a/app/models/project.rb b/app/models/project.rb
index 3053055bd771eb0d81074cdb74f58c9130dcc651..d8d08cbffcccc7495578f9374464580349774d4a 100644
--- a/app/models/project.rb
+++ b/app/models/project.rb
@@ -462,6 +462,9 @@ def self.integration_association_name(name)
            :warn_about_potentially_unwanted_characters, :warn_about_potentially_unwanted_characters=,
            to: :project_setting, allow_nil: true
 
+  delegate :show_diff_preview_in_email, :show_diff_preview_in_email=, :show_diff_preview_in_email?,
+           to: :project_setting
+
   delegate :squash_always?, :squash_never?, :squash_enabled_by_default?, :squash_readonly?, to: :project_setting
   delegate :squash_option, :squash_option=, to: :project_setting
   delegate :mr_default_target_self, :mr_default_target_self=, to: :project_setting
diff --git a/app/models/project_setting.rb b/app/models/project_setting.rb
index 59d2e3deb4f033810e095fdb4ae9882354ab1308..f5c346eda3056602ca00b739e622456bd950cc8e 100644
--- a/app/models/project_setting.rb
+++ b/app/models/project_setting.rb
@@ -1,6 +1,8 @@
 # frozen_string_literal: true
 
 class ProjectSetting < ApplicationRecord
+  include ::Gitlab::Utils::StrongMemoize
+
   ALLOWED_TARGET_PLATFORMS = %w(ios osx tvos watchos android).freeze
 
   belongs_to :project, inverse_of: :project_setting
@@ -47,6 +49,15 @@ def human_squash_option
     end
   end
 
+  def show_diff_preview_in_email?
+    if project.group
+      super && project.group&.show_diff_preview_in_email?
+    else
+      !!super
+    end
+  end
+  strong_memoize_attr :show_diff_preview_in_email
+
   private
 
   def validates_mr_default_target_self
diff --git a/app/policies/group_policy.rb b/app/policies/group_policy.rb
index a264ff48c08e163b5cedec5c982795b656a1b253..bee32d789aca457d34bc1c57dfdb233e43c0a860 100644
--- a/app/policies/group_policy.rb
+++ b/app/policies/group_policy.rb
@@ -193,6 +193,7 @@ class GroupPolicy < Namespaces::GroupProjectNamespaceSharedPolicy
     enable :set_note_created_at
     enable :set_emails_disabled
     enable :change_prevent_sharing_groups_outside_hierarchy
+    enable :set_show_diff_preview_in_email
     enable :change_new_user_signups_cap
     enable :update_default_branch_protection
     enable :create_deploy_token
diff --git a/app/policies/project_policy.rb b/app/policies/project_policy.rb
index f4f7275a78a35e246e7e4d37778f684bccaee4e2..ccdad8e6be1716e8cd5b3920a9152f7f3f577ee6 100644
--- a/app/policies/project_policy.rb
+++ b/app/policies/project_policy.rb
@@ -267,6 +267,7 @@ class ProjectPolicy < BasePolicy
     enable :set_note_created_at
     enable :set_emails_disabled
     enable :set_show_default_award_emojis
+    enable :set_show_diff_preview_in_email
     enable :set_warn_about_potentially_unwanted_characters
 
     enable :register_project_runners
diff --git a/db/migrate/20220603125200_add_show_diff_preview_in_email_to_namespace_settings.rb b/db/migrate/20220603125200_add_show_diff_preview_in_email_to_namespace_settings.rb
new file mode 100644
index 0000000000000000000000000000000000000000..ad32d58984075f73716f7c28179da534732e208f
--- /dev/null
+++ b/db/migrate/20220603125200_add_show_diff_preview_in_email_to_namespace_settings.rb
@@ -0,0 +1,9 @@
+# frozen_string_literal: true
+
+class AddShowDiffPreviewInEmailToNamespaceSettings < Gitlab::Database::Migration[2.0]
+  enable_lock_retries!
+
+  def change
+    add_column :namespace_settings, :show_diff_preview_in_email, :boolean, default: true, null: false
+  end
+end
diff --git a/db/migrate/20220817122907_re_add_show_diff_preview_in_email_to_project_settings.rb b/db/migrate/20220817122907_re_add_show_diff_preview_in_email_to_project_settings.rb
new file mode 100644
index 0000000000000000000000000000000000000000..bb5649e3a99774480a0935526ffac4920f0467bf
--- /dev/null
+++ b/db/migrate/20220817122907_re_add_show_diff_preview_in_email_to_project_settings.rb
@@ -0,0 +1,9 @@
+# frozen_string_literal: true
+
+class ReAddShowDiffPreviewInEmailToProjectSettings < Gitlab::Database::Migration[2.0]
+  enable_lock_retries!
+
+  def change
+    add_column :project_settings, :show_diff_preview_in_email, :boolean, default: true, null: false
+  end
+end
diff --git a/db/schema_migrations/20220603125200 b/db/schema_migrations/20220603125200
new file mode 100644
index 0000000000000000000000000000000000000000..5da1d1992ab70e3421075404268cf7071b848735
--- /dev/null
+++ b/db/schema_migrations/20220603125200
@@ -0,0 +1 @@
+7631f2c1f9b2647ae6de47675305a2d5c1b213229c85b6f161412f83884bad87
\ No newline at end of file
diff --git a/db/schema_migrations/20220817122907 b/db/schema_migrations/20220817122907
new file mode 100644
index 0000000000000000000000000000000000000000..fb6951e19d54e2a22b873beeb273da2a3745ef7f
--- /dev/null
+++ b/db/schema_migrations/20220817122907
@@ -0,0 +1 @@
+4db4f50d2e23527516eccdeae60059803df7add21ca7a2c40f1670dba9744496
\ No newline at end of file
diff --git a/db/structure.sql b/db/structure.sql
index 9a2b98050460dcab614d333d4d75d34e534418f7..b558d104ee973dcc412102a04e038726de1d66e6 100644
--- a/db/structure.sql
+++ b/db/structure.sql
@@ -17818,6 +17818,7 @@ CREATE TABLE namespace_settings (
     subgroup_runner_token_expiration_interval integer,
     project_runner_token_expiration_interval integer,
     exclude_from_free_user_cap boolean DEFAULT false NOT NULL,
+    show_diff_preview_in_email boolean DEFAULT true NOT NULL,
     enabled_git_access_protocol smallint DEFAULT 0 NOT NULL,
     unique_project_download_limit smallint DEFAULT 0 NOT NULL,
     unique_project_download_limit_interval_in_seconds integer DEFAULT 0 NOT NULL,
@@ -19936,6 +19937,7 @@ CREATE TABLE project_settings (
     target_platforms character varying[] DEFAULT '{}'::character varying[] NOT NULL,
     enforce_auth_checks_on_uploads boolean DEFAULT true NOT NULL,
     selective_code_owner_removals boolean DEFAULT false NOT NULL,
+    show_diff_preview_in_email boolean DEFAULT true NOT NULL,
     CONSTRAINT check_3a03e7557a CHECK ((char_length(previous_default_branch) <= 4096)),
     CONSTRAINT check_b09644994b CHECK ((char_length(squash_commit_template) <= 500)),
     CONSTRAINT check_bde223416c CHECK ((show_default_award_emojis IS NOT NULL)),
diff --git a/lib/api/helpers/projects_helpers.rb b/lib/api/helpers/projects_helpers.rb
index 40da4a4f8e82b9fdfe7f08f9e6738c84988228fa..7ca3f55b5a2c7e7e8dd8c51515eff87cc5c73c91 100644
--- a/lib/api/helpers/projects_helpers.rb
+++ b/lib/api/helpers/projects_helpers.rb
@@ -39,6 +39,7 @@ module ProjectsHelpers
 
         optional :emails_disabled, type: Boolean, desc: 'Disable email notifications'
         optional :show_default_award_emojis, type: Boolean, desc: 'Show default award emojis'
+        optional :show_diff_preview_in_email, type: Boolean, desc: 'Include the code diff preview in merge request notification emails'
         optional :warn_about_potentially_unwanted_characters, type: Boolean, desc: 'Warn about Potentially Unwanted Characters'
         optional :enforce_auth_checks_on_uploads, type: Boolean, desc: 'Enforce auth check on uploads'
         optional :shared_runners_enabled, type: Boolean, desc: 'Flag indication if shared runners are enabled for that project'
@@ -159,6 +160,7 @@ def self.update_params_at_least_one_of
           :request_access_enabled,
           :resolve_outdated_diff_discussions,
           :restrict_user_defined_variables,
+          :show_diff_preview_in_email,
           :security_and_compliance_access_level,
           :squash_option,
           :shared_runners_enabled,
diff --git a/spec/models/namespace_setting_spec.rb b/spec/models/namespace_setting_spec.rb
index 25234db5734e0cb89e4f136d2ed71a3a465c72bc..9fce65c9a5fb878831399691ddc068b97e4c51f2 100644
--- a/spec/models/namespace_setting_spec.rb
+++ b/spec/models/namespace_setting_spec.rb
@@ -127,4 +127,50 @@
       end
     end
   end
+
+  describe '#show_diff_preview_in_email?' do
+    context 'when not a subgroup' do
+      it 'returns false' do
+        settings = create(:namespace_settings, show_diff_preview_in_email: false)
+        group = create(:group, namespace_settings: settings )
+
+        expect(group.show_diff_preview_in_email?).to be_falsey
+      end
+
+      it 'returns true' do
+        settings = create(:namespace_settings, show_diff_preview_in_email: true)
+        group = create(:group, namespace_settings: settings )
+
+        expect(group.show_diff_preview_in_email?).to be_truthy
+      end
+
+      it 'does not query the db when there is no parent group' do
+        group = create(:group)
+
+        expect { group.show_diff_preview_in_email? }.not_to exceed_query_limit(0)
+      end
+    end
+
+    context 'when a group has parent groups' do
+      let(:grandparent) { create(:group, namespace_settings: settings) }
+      let(:parent)      { create(:group, parent: grandparent) }
+      let!(:group) { create(:group, parent: parent) }
+
+      context "when a parent group has disabled diff previews" do
+        let(:settings) { create(:namespace_settings, show_diff_preview_in_email: false) }
+
+        it 'returns false' do
+          expect(group.show_diff_preview_in_email?).to be_falsey
+        end
+      end
+
+      context 'when all parent groups have enabled diff previews' do
+        let(:settings) { create(:namespace_settings, show_diff_preview_in_email: true) }
+
+        it 'returns true' do
+          expect(group.show_diff_preview_in_email?).to be_truthy
+        end
+      end
+    end
+  end
 end
diff --git a/spec/models/project_setting_spec.rb b/spec/models/project_setting_spec.rb
index fb1601a5f9c1c7873bf21b93132e714430086572..a09ae7ec7aed6e2b2f1d23605b1bf5e95907331b 100644
--- a/spec/models/project_setting_spec.rb
+++ b/spec/models/project_setting_spec.rb
@@ -63,4 +63,51 @@ def valid_target_platform_combinations
       target_platforms.permutation(n).to_a
     end
   end
+
+  describe '#show_diff_preview_in_email?' do
+    context 'when a project is a top-level namespace' do
+      let(:project_settings ) { create(:project_setting, show_diff_preview_in_email: false) }
+      let(:project) { create(:project, project_setting: project_settings) }
+
+      context 'when show_diff_preview_in_email is disabled' do
+        it 'returns false' do
+          expect(project).not_to be_show_diff_preview_in_email
+        end
+      end
+
+      context 'when show_diff_preview_in_email is enabled' do
+        let(:project_settings ) { create(:project_setting, show_diff_preview_in_email: true) }
+
+        it 'returns true' do
+          settings = create(:project_setting, show_diff_preview_in_email: true)
+          project = create(:project, project_setting: settings)
+
+          expect(project).to be_show_diff_preview_in_email
+        end
+      end
+    end
+
+    context 'when a parent group has a parent group' do
+      let(:namespace_settings) { create(:namespace_settings, show_diff_preview_in_email: false) }
+      let(:project_settings) { create(:project_setting, show_diff_preview_in_email: true) }
+      let(:group) { create(:group, namespace_settings: namespace_settings) }
+      let!(:project) { create(:project, namespace_id: group.id, project_setting: project_settings) }
+
+      context 'when show_diff_preview_in_email is disabled for the parent group' do
+        it 'returns false' do
+          expect(project).not_to be_show_diff_preview_in_email
+        end
+      end
+
+      context 'when all ancestors have enabled diff previews' do
+        let(:namespace_settings) { create(:namespace_settings, show_diff_preview_in_email: true) }
+
+        it 'returns true' do
+          group.update_attribute(:show_diff_preview_in_email, true)
+
+          expect(project).to be_show_diff_preview_in_email
+        end
+      end
+    end
+  end
 end
diff --git a/spec/requests/api/project_attributes.yml b/spec/requests/api/project_attributes.yml
index 670035187cb96a3139879c6ef44bb83f1f3fd15d..1335fa02aaf49fad722955ce2bfc34da32dcea3d 100644
--- a/spec/requests/api/project_attributes.yml
+++ b/spec/requests/api/project_attributes.yml
@@ -154,11 +154,13 @@ project_setting:
     - project_id
     - push_rule_id
     - show_default_award_emojis
+    - show_diff_preview_in_email
     - updated_at
     - cve_id_request_enabled
     - mr_default_target_self
     - target_platforms
     - selective_code_owner_removals
+    - show_diff_preview_in_email
 
 build_service_desk_setting: # service_desk_setting
   unexposed_attributes: