diff --git a/apps/browser/src/autofill/popup/settings/autofill.component.ts b/apps/browser/src/autofill/popup/settings/autofill.component.ts
index 67cc25f2276..1c6583331f4 100644
--- a/apps/browser/src/autofill/popup/settings/autofill.component.ts
+++ b/apps/browser/src/autofill/popup/settings/autofill.component.ts
@@ -105,11 +105,7 @@ export class AutofillComponent implements OnInit {
   }
 
   async updateAutoFillOverlayVisibility() {
-    const previousAutoFillOverlayVisibility = await firstValueFrom(
-      this.autofillSettingsService.inlineMenuVisibility$,
-    );
     await this.autofillSettingsService.setInlineMenuVisibility(this.autoFillOverlayVisibility);
-    await this.handleUpdatingAutofillOverlayContentScripts(previousAutoFillOverlayVisibility);
     await this.requestPrivacyPermission();
   }
 
@@ -181,27 +177,6 @@ export class AutofillComponent implements OnInit {
     BrowserApi.createNewTab(this.disablePasswordManagerLink);
   }
 
-  private async handleUpdatingAutofillOverlayContentScripts(
-    previousAutoFillOverlayVisibility: number,
-  ) {
-    const autofillOverlayPreviouslyDisabled =
-      previousAutoFillOverlayVisibility === AutofillOverlayVisibility.Off;
-    const autofillOverlayCurrentlyDisabled =
-      this.autoFillOverlayVisibility === AutofillOverlayVisibility.Off;
-
-    if (!autofillOverlayPreviouslyDisabled && !autofillOverlayCurrentlyDisabled) {
-      const tabs = await BrowserApi.tabsQuery({});
-      tabs.forEach((tab) =>
-        BrowserApi.tabSendMessageData(tab, "updateAutofillOverlayVisibility", {
-          autofillOverlayVisibility: this.autoFillOverlayVisibility,
-        }),
-      );
-      return;
-    }
-
-    await this.autofillService.reloadAutofillScripts();
-  }
-
   async requestPrivacyPermission() {
     if (
       this.autoFillOverlayVisibility === AutofillOverlayVisibility.Off ||
diff --git a/apps/browser/src/autofill/services/abstractions/autofill-overlay-content.service.ts b/apps/browser/src/autofill/services/abstractions/autofill-overlay-content.service.ts
index ceaf850b5dc..30ecbf47d62 100644
--- a/apps/browser/src/autofill/services/abstractions/autofill-overlay-content.service.ts
+++ b/apps/browser/src/autofill/services/abstractions/autofill-overlay-content.service.ts
@@ -19,7 +19,7 @@ export type AutofillOverlayContentExtensionMessageHandlers = {
   bgUnlockPopoutOpened: () => void;
   bgVaultItemRepromptPopoutOpened: () => void;
   redirectOverlayFocusOut: ({ message }: AutofillExtensionMessageParam) => void;
-  updateAutofillOverlayVisibility: ({ message }: AutofillExtensionMessageParam) => void;
+  updateInlineMenuVisibility: ({ message }: AutofillExtensionMessageParam) => void;
   getSubFrameOffsets: ({ message }: AutofillExtensionMessageParam) => Promise<SubFrameOffsetData>;
   getSubFrameOffsetsFromWindowMessage: ({ message }: AutofillExtensionMessageParam) => void;
 };
diff --git a/apps/browser/src/autofill/services/autofill-overlay-content.service.ts b/apps/browser/src/autofill/services/autofill-overlay-content.service.ts
index 8f27959b2bf..176f18d9d37 100644
--- a/apps/browser/src/autofill/services/autofill-overlay-content.service.ts
+++ b/apps/browser/src/autofill/services/autofill-overlay-content.service.ts
@@ -48,7 +48,7 @@ class AutofillOverlayContentService implements AutofillOverlayContentServiceInte
     bgVaultItemRepromptPopoutOpened: () => this.blurMostRecentOverlayField(true),
     redirectOverlayFocusOut: ({ message }) =>
       this.redirectOverlayFocusOut(message?.data?.direction),
-    updateAutofillOverlayVisibility: ({ message }) => this.updateAutofillOverlayVisibility(message),
+    updateInlineMenuVisibility: ({ message }) => this.updateInlineMenuVisibility(message),
     getSubFrameOffsets: ({ message }) => this.getSubFrameOffsets(message),
     getSubFrameOffsetsFromWindowMessage: ({ message }) =>
       this.getSubFrameOffsetsFromWindowMessage(message),
@@ -981,7 +981,7 @@ class AutofillOverlayContentService implements AutofillOverlayContentServiceInte
     });
   };
 
-  private updateAutofillOverlayVisibility({ data }: AutofillExtensionMessage) {
+  private updateInlineMenuVisibility({ data }: AutofillExtensionMessage) {
     if (isNaN(data?.autofillOverlayVisibility)) {
       return;
     }
diff --git a/apps/browser/src/autofill/services/autofill.service.ts b/apps/browser/src/autofill/services/autofill.service.ts
index b06d4c85742..9b646642a7c 100644
--- a/apps/browser/src/autofill/services/autofill.service.ts
+++ b/apps/browser/src/autofill/services/autofill.service.ts
@@ -1,7 +1,9 @@
-import { firstValueFrom } from "rxjs";
+import { firstValueFrom, startWith } from "rxjs";
+import { pairwise } from "rxjs/operators";
 
 import { EventCollectionService } from "@bitwarden/common/abstractions/event/event-collection.service";
 import { UserVerificationService } from "@bitwarden/common/auth/abstractions/user-verification/user-verification.service.abstraction";
+import { AutofillOverlayVisibility } from "@bitwarden/common/autofill/constants";
 import { AutofillSettingsServiceAbstraction } from "@bitwarden/common/autofill/services/autofill-settings.service";
 import { DomainSettingsService } from "@bitwarden/common/autofill/services/domain-settings.service";
 import { InlineMenuVisibilitySetting } from "@bitwarden/common/autofill/types";
@@ -66,6 +68,11 @@ export default class AutofillService implements AutofillServiceInterface {
   async loadAutofillScriptsOnInstall() {
     BrowserApi.addListener(chrome.runtime.onConnect, this.handleInjectedScriptPortConnection);
     void this.injectAutofillScriptsInAllTabs();
+    this.autofillSettingsService.inlineMenuVisibility$
+      .pipe(startWith(undefined), pairwise())
+      .subscribe(([previousSetting, currentSetting]) =>
+        this.handleInlineMenuVisibilityChange(previousSetting, currentSetting),
+      );
   }
 
   /**
@@ -2066,4 +2073,27 @@ export default class AutofillService implements AutofillServiceInterface {
       }
     }
   }
+
+  private async handleInlineMenuVisibilityChange(
+    previousSetting: InlineMenuVisibilitySetting,
+    currentSetting: InlineMenuVisibilitySetting,
+  ) {
+    if (previousSetting === undefined || previousSetting === currentSetting) {
+      return;
+    }
+
+    const inlineMenuPreviouslyDisabled = previousSetting === AutofillOverlayVisibility.Off;
+    const inlineMenuCurrentlyDisabled = currentSetting === AutofillOverlayVisibility.Off;
+    if (!inlineMenuPreviouslyDisabled && !inlineMenuCurrentlyDisabled) {
+      const tabs = await BrowserApi.tabsQuery({});
+      tabs.forEach((tab) =>
+        BrowserApi.tabSendMessageData(tab, "updateInlineMenuVisibility", {
+          autofillOverlayVisibility: currentSetting,
+        }),
+      );
+      return;
+    }
+
+    await this.reloadAutofillScripts();
+  }
 }