diff --git a/source/comply/legal-hold.rst b/source/comply/legal-hold.rst
index b840970d91f..04e21c6f0e3 100644
--- a/source/comply/legal-hold.rst
+++ b/source/comply/legal-hold.rst
@@ -173,4 +173,11 @@ Legal Hold is an initial step to ensure relevant electronically stored informati
 How do I enable e-discovery for Mattermost?
 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
 
-Learn more about extracting data for e-discovery in our :doc:`product documentation </comply/electronic-discovery>`.
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+Learn more about extracting data for e-discovery in our :doc:`product documentation </comply/electronic-discovery>`.
+
+How do I manage storage costs and version retention in S3?
+~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+
+If you plan to use an existing S3 bucket for Legal Hold data storage, and your existing S3 bucket has versioning enabled, we strongly recommend using a dedicated S3 bucket with versioning disabled. 
+
+The Legal Hold plugin frequently modifies files in the ``legalhold`` directory, and when S3 bucket versioning is enabled, each modification creates a new version. This can result in a rapid accumulation of object versions, increased storage costs, potential performance impact, higher S3 API usage, and complicating version management over time. See the `S3 Lifecycle Rules <https://docs.aws.amazon.com/AmazonS3/latest/dev/object-lifecycle-mgmt.html>`_ documentation for additional details.
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