diff --git a/src/Explorer/Menus/CommandBar/CommandBarComponentAdapter.tsx b/src/Explorer/Menus/CommandBar/CommandBarComponentAdapter.tsx
index 2b2e83787..8827994e4 100644
--- a/src/Explorer/Menus/CommandBar/CommandBarComponentAdapter.tsx
+++ b/src/Explorer/Menus/CommandBar/CommandBarComponentAdapter.tsx
@@ -53,11 +53,7 @@ export const CommandBar: React.FC<Props> = ({ container }: Props) => {
   const uiFabricControlButtons = CommandBarUtil.convertButton(controlButtons, backgroundColor);
   uiFabricControlButtons.forEach((btn: ICommandBarItemProps) => (btn.iconOnly = true));
 
-  if (
-    useNotebook.getState().isPhoenixNotebooks ||
-    useNotebook.getState().isPhoenixFeatures ||
-    useNotebook.getState().isPhoenixDisabled
-  ) {
+  if (useNotebook.getState().isPhoenixNotebooks || useNotebook.getState().isPhoenixFeatures) {
     uiFabricControlButtons.unshift(CommandBarUtil.createConnectionStatus(container, "connectionStatus"));
   }
 
diff --git a/src/Explorer/Menus/CommandBar/CommandBarComponentButtonFactory.test.ts b/src/Explorer/Menus/CommandBar/CommandBarComponentButtonFactory.test.ts
index 03ed48368..b5cca5db6 100644
--- a/src/Explorer/Menus/CommandBar/CommandBarComponentButtonFactory.test.ts
+++ b/src/Explorer/Menus/CommandBar/CommandBarComponentButtonFactory.test.ts
@@ -204,14 +204,14 @@ describe("CommandBarComponentButtonFactory tests", () => {
       //expect(openMongoShellBtn.tooltipText).toBe("");
     });
 
-    it("Notebooks is enabled and is available, terminal is unavailable due to ipRules - button should be in disable state", () => {
+    it("Notebooks is enabled and is available, terminal is unavailable due to ipRules - button should be hidden", () => {
       useNotebook.getState().setIsNotebookEnabled(true);
       useNotebook.getState().setIsNotebooksEnabledForAccount(true);
       useNotebook.getState().setIsShellEnabled(false);
 
       const buttons = CommandBarComponentButtonFactory.createStaticCommandBarButtons(mockExplorer, selectedNodeState);
       const openMongoShellBtn = buttons.find((button) => button.commandButtonLabel === openMongoShellBtnLabel);
-      expect(openMongoShellBtn.disabled).toBe(true);
+      expect(openMongoShellBtn).toBeUndefined();
     });
   });
 
diff --git a/src/Explorer/Menus/CommandBar/CommandBarComponentButtonFactory.tsx b/src/Explorer/Menus/CommandBar/CommandBarComponentButtonFactory.tsx
index c29fee049..e0bb5cda5 100644
--- a/src/Explorer/Menus/CommandBar/CommandBarComponentButtonFactory.tsx
+++ b/src/Explorer/Menus/CommandBar/CommandBarComponentButtonFactory.tsx
@@ -86,7 +86,9 @@ export function createStaticCommandBarButtons(
       notebookButtons.push(createNotebookWorkspaceResetButton(container));
     }
     if (
-      (userContext.apiType === "Mongo" && selectedNodeState.isDatabaseNodeOrNoneSelected()) ||
+      (userContext.apiType === "Mongo" &&
+        selectedNodeState.isDatabaseNodeOrNoneSelected() &&
+        useNotebook.getState().isShellEnabled) ||
       userContext.apiType === "Cassandra"
     ) {
       notebookButtons.push(createDivider());
@@ -98,19 +100,23 @@ export function createStaticCommandBarButtons(
     }
 
     notebookButtons.forEach((btn) => {
+      const isPhoenixFeaturesDownMsg =
+        (!useNotebook.getState().isPhoenixFeatures && !useNotebook.getState().isPhoenixDisabled) ||
+        (!useNotebook.getState().isPhoenixFeatures && useNotebook.getState().isPhoenixDisabled);
+
       if (btn.commandButtonLabel.indexOf("Cassandra") !== -1) {
-        if (!useNotebook.getState().isPhoenixFeatures && !useNotebook.getState().isPhoenixDisabled) {
+        if (isPhoenixFeaturesDownMsg) {
           applyNotebooksStyleProps(btn, Constants.Notebook.cassandraShellTemporarilyDownMsg);
         } else if (useNotebook.getState().isPhoenixDisabled) {
           applyNotebooksStyleProps(btn, Constants.Notebook.notebookDisabledText);
         }
       } else if (btn.commandButtonLabel.indexOf("Mongo") !== -1) {
-        if (!useNotebook.getState().isPhoenixFeatures && !useNotebook.getState().isPhoenixDisabled) {
+        if (isPhoenixFeaturesDownMsg) {
           applyNotebooksStyleProps(btn, Constants.Notebook.mongoShellTemporarilyDownMsg);
         } else if (useNotebook.getState().isPhoenixDisabled) {
           applyNotebooksStyleProps(btn, Constants.Notebook.notebookDisabledText);
         }
-      } else if (!useNotebook.getState().isPhoenixNotebooks && !useNotebook.getState().isPhoenixDisabled) {
+      } else if (isPhoenixFeaturesDownMsg) {
         applyNotebooksStyleProps(btn, Constants.Notebook.temporarilyDownMsg);
       } else if (useNotebook.getState().isPhoenixDisabled) {
         applyNotebooksStyleProps(btn, Constants.Notebook.notebookDisabledText);
@@ -177,23 +183,23 @@ export function createContextCommandBarButtons(
       tooltipText: isPhoenixShellDisabled ? Constants.Notebook.notebookDisabledText : undefined,
     };
     buttons.push(phoenixMongoShellBtn);
-
-    const label = "New Shell";
-    const isNewMongoShellDisabled = useNotebook.getState().isShellEnabled && !useNotebook.getState().isPhoenixDisabled;
-    const newMongoShellBtn: CommandButtonComponentProps = {
-      iconSrc: HostedTerminalIcon,
-      iconAlt: label,
-      onCommandClick: () => {
-        const selectedCollection: ViewModels.Collection = selectedNodeState.findSelectedCollection();
-        selectedCollection && selectedCollection.onNewMongoShellClick();
-      },
-      commandButtonLabel: label,
-      ariaLabel: label,
-      hasPopup: true,
-      disabled: isNewMongoShellDisabled,
-      tooltipText: isNewMongoShellDisabled ? Constants.Notebook.newShellDisabledText : undefined,
-    };
-    buttons.push(newMongoShellBtn);
+    if (!useNotebook.getState().isShellEnabled) {
+      const label = "New Shell";
+      const newMongoShellBtn: CommandButtonComponentProps = {
+        iconSrc: HostedTerminalIcon,
+        iconAlt: label,
+        onCommandClick: () => {
+          const selectedCollection: ViewModels.Collection = selectedNodeState.findSelectedCollection();
+          selectedCollection && selectedCollection.onNewMongoShellClick();
+        },
+        commandButtonLabel: label,
+        ariaLabel: label,
+        hasPopup: true,
+        disabled: false,
+        tooltipText: label,
+      };
+      buttons.push(newMongoShellBtn);
+    }
   }
 
   return buttons;
diff --git a/src/Explorer/Notebook/useNotebook.ts b/src/Explorer/Notebook/useNotebook.ts
index 9713ba0a1..b253383f8 100644
--- a/src/Explorer/Notebook/useNotebook.ts
+++ b/src/Explorer/Notebook/useNotebook.ts
@@ -320,7 +320,7 @@ export const useNotebook: UseStore<NotebookState> = create((set, get) => ({
           isPhoenixFeatures = userContext.features.phoenixFeatures;
           isPhoenixDisabled = !isPublicInternetAllowed && (isPhoenixNotebooks || isPhoenixFeatures);
         } else {
-          isPhoenixNotebooks = isPhoenixFeatures = isPublicInternetAllowed;
+          isPhoenixNotebooks = isPhoenixFeatures = true;
           isPhoenixDisabled = !isPublicInternetAllowed;
         }
       } else if (
diff --git a/src/Explorer/Tree/ResourceTree.tsx b/src/Explorer/Tree/ResourceTree.tsx
index 15143be94..ecbf0d7a9 100644
--- a/src/Explorer/Tree/ResourceTree.tsx
+++ b/src/Explorer/Tree/ResourceTree.tsx
@@ -121,7 +121,7 @@ export const ResourceTree: React.FC<ResourceTreeProps> = ({ container }: Resourc
       children: [],
     };
 
-    if (!useNotebook.getState().isPhoenixNotebooks && !useNotebook.getState().isPhoenixDisabled) {
+    if (!useNotebook.getState().isPhoenixNotebooks) {
       notebooksTree.children.push(buildNotebooksTemporarilyDownTree());
     } else {
       if (galleryContentRoot) {