diff --git a/pkg/server/license/enforcer_test.go b/pkg/server/license/enforcer_test.go
index 469417ac8aae..739d9f0a7245 100644
--- a/pkg/server/license/enforcer_test.go
+++ b/pkg/server/license/enforcer_test.go
@@ -324,19 +324,24 @@ func TestThrottleErrorMsg(t *testing.T) {
 		overThreshold   bool
 		throttleCheckTS time.Time
 		telemetryTS     time.Time
+		sql             string
 		errRE           string
 	}{
 		// NB: license expires at t30d and grace period ends at t60d.
-		{"at-threshold-valid-license-and-telemetry", true, t10d, t10d, ""},
-		{"at-threshold-expired-license-in-grace-valid-telemetry", true, t60d, t55d, ""},
+		{"at-threshold-valid-license-and-telemetry", true, t10d, t10d, "SELECT 1", ""},
+		{"at-threshold-expired-license-in-grace-valid-telemetry", true, t60d, t55d, "SELECT 1", ""},
 		{"at-threshold-expired-license-past-grace-valid-telemetry", true, t60d1ms, t55d,
-			"License expired .*. The maximum number of .*"},
-		{"below-threshold-expired-license-past-grace-valid-telemetry", false, t60d1ms, t55d, ""},
-		{"at-threshold-expired-license-in-grace-invalid-telemetry", true, t55d, t10d,
+			"SELECT 1", "License expired .*. The maximum number of .*"},
+		{"below-threshold-expired-license-past-grace-valid-telemetry", false, t60d1ms, t55d, "SELECT 1", ""},
+		{"at-threshold-expired-license-in-grace-invalid-telemetry", true, t55d, t10d, "SELECT 1",
 			"The maximum number of concurrently open transactions has been reached because the license requires diagnostic reporting"},
-		{"at-threshold-valid-license-invalid-telemetry", true, t10d, t0d,
+		{"at-threshold-valid-license-invalid-telemetry", true, t10d, t0d, "SELECT 1",
 			"The maximum number of concurrently open transactions has been reached because the license requires diagnostic reporting"},
-		{"below-threshold-invalid-telemetry", false, t10d, t0d, ""},
+		{"below-threshold-invalid-telemetry", false, t10d, t0d, "SELECT 1", ""},
+		{"at-threshold-expired-license-past-grace-valid-telemetry-SET_CLUSTER", true, t60d1ms, t55d,
+			"SET CLUSTER SETTING cluster.label = ''", ""},
+		{"at-threshold-expired-license-past-grace-invalid-telemetry-SET_CLUSTER", true, t60d1ms, t10d,
+			"SET CLUSTER SETTING cluster.label = ''", ""},
 	} {
 		t.Run(tc.desc, func(t *testing.T) {
 			// Adjust the throttle check time for this test unit
@@ -358,9 +363,9 @@ func TestThrottleErrorMsg(t *testing.T) {
 			// It may or may not be throttled, depending on tc parms.
 			tdb := sqlutils.MakeSQLRunner(sqlDB)
 			if tc.errRE != "" {
-				tdb.ExpectErr(t, tc.errRE, "SELECT 1")
+				tdb.ExpectErr(t, tc.errRE, tc.sql)
 			} else {
-				tdb.Exec(t, "SELECT 1")
+				tdb.Exec(t, tc.sql)
 			}
 
 			// Confirm that internal connections are never throttled
diff --git a/pkg/sql/conn_executor_exec.go b/pkg/sql/conn_executor_exec.go
index cb17230286be..048fe469ae17 100644
--- a/pkg/sql/conn_executor_exec.go
+++ b/pkg/sql/conn_executor_exec.go
@@ -505,11 +505,13 @@ func (ex *connExecutor) execStmtInOpenState(
 		}
 
 		// Enforce license policies. Throttling can occur if there is no valid
-		// license or if it has expired.
-		if notice, err := ex.server.cfg.LicenseEnforcer.MaybeFailIfThrottled(ctx, curOpen); err != nil {
-			return makeErrEvent(err)
-		} else if notice != nil {
-			res.BufferNotice(notice)
+		// license or if the existing one has expired.
+		if isSQLOkayToThrottle(ast) {
+			if notice, err := ex.server.cfg.LicenseEnforcer.MaybeFailIfThrottled(ctx, curOpen); err != nil {
+				return makeErrEvent(err)
+			} else if notice != nil {
+				res.BufferNotice(notice)
+			}
 		}
 	}
 
@@ -3446,3 +3448,16 @@ func (ex *connExecutor) execWithProfiling(
 	}
 	return err
 }
+
+// isSQLOkayToThrottle will return true if the given statement is allowed to be throttled.
+func isSQLOkayToThrottle(ast tree.Statement) bool {
+	switch ast.(type) {
+	// We do not throttle the SET CLUSTER command, as this is how a new license
+	// would be installed to disable throttling. We want to avoid the situation
+	// where the action to disable throttling is itself throttled.
+	case *tree.SetClusterSetting:
+		return false
+	default:
+		return true
+	}
+}