diff --git a/.env.template b/.env.template
index 5a8686d5341478fcd503853c362097ede7cb6d13..075689e9723d3e471c22a068c9b386a8f859f7ad 100644
--- a/.env.template
+++ b/.env.template
@@ -280,12 +280,13 @@
 ## The default for new users. If changed, it will be updated during login for existing users.
 # PASSWORD_ITERATIONS=600000
 
-## Controls whether users can set password hints. This setting applies globally to all users.
+## Controls whether users can set or show password hints. This setting applies globally to all users.
 # PASSWORD_HINTS_ALLOWED=true
 
 ## Controls whether a password hint should be shown directly in the web page if
-## SMTP service is not configured. Not recommended for publicly-accessible instances
-## as this provides unauthenticated access to potentially sensitive data.
+## SMTP service is not configured and password hints are allowed.
+## Not recommended for publicly-accessible instances because this provides
+## unauthenticated access to potentially sensitive data.
 # SHOW_PASSWORD_HINT=false
 
 #########################
diff --git a/src/api/core/accounts.rs b/src/api/core/accounts.rs
index 4e566bc9c5a5d73bc66e5e8bb5eeec497f86872c..7c3919ad2abb856a9f550dd0933d90dcbe174bff 100644
--- a/src/api/core/accounts.rs
+++ b/src/api/core/accounts.rs
@@ -842,7 +842,7 @@ struct PasswordHintData {
 
 #[post("/accounts/password-hint", data = "<data>")]
 async fn password_hint(data: Json<PasswordHintData>, mut conn: DbConn) -> EmptyResult {
-    if !CONFIG.mail_enabled() || !CONFIG.show_password_hint() {
+    if !CONFIG.password_hints_allowed() || (!CONFIG.mail_enabled() && !CONFIG.show_password_hint()) {
         err!("This server is not configured to provide password hints.");
     }
 
diff --git a/src/config.rs b/src/config.rs
index 61a47b765680ee2b5f1cd68fbaf5b2d7d88c42cc..244499d0adc50d233571e2115759a7c3e1ecd857 100644
--- a/src/config.rs
+++ b/src/config.rs
@@ -497,11 +497,11 @@ make_config! {
         /// Password iterations |> Number of server-side passwords hashing iterations for the password hash.
         /// The default for new users. If changed, it will be updated during login for existing users.
         password_iterations:    i32,    true,   def,    600_000;
-        /// Allow password hints |> Controls whether users can set password hints. This setting applies globally to all users.
+        /// Allow password hints |> Controls whether users can set or show password hints. This setting applies globally to all users.
         password_hints_allowed: bool,   true,   def,    true;
-        /// Show password hint |> Controls whether a password hint should be shown directly in the web page
-        /// if SMTP service is not configured. Not recommended for publicly-accessible instances as this
-        /// provides unauthenticated access to potentially sensitive data.
+        /// Show password hint (Know the risks!) |> Controls whether a password hint should be shown directly in the web page
+        /// if SMTP service is not configured and password hints are allowed. Not recommended for publicly-accessible instances
+        /// because this provides unauthenticated access to potentially sensitive data.
         show_password_hint:     bool,   true,   def,    false;
 
         /// Admin token/Argon2 PHC |> The plain text token or Argon2 PHC string used to authenticate in this very same page. Changing it here will not deauthorize the current session!