diff --git a/src/components/learner-credit-management/BudgetDetailActivityTabContents.jsx b/src/components/learner-credit-management/BudgetDetailActivityTabContents.jsx
index 9720c607a9..5c9071c4f6 100644
--- a/src/components/learner-credit-management/BudgetDetailActivityTabContents.jsx
+++ b/src/components/learner-credit-management/BudgetDetailActivityTabContents.jsx
@@ -11,6 +11,7 @@ import NoBnEBudgetActivity from './empty-state/NoBnEBudgetActivity';
 
 const BudgetDetailActivityTabContents = ({ enterpriseUUID, enterpriseFeatures }) => {
   const isTopDownAssignmentEnabled = enterpriseFeatures.topDownAssignmentRealTimeLcm;
+  const isEnterpriseGroupsEnabled = enterpriseFeatures.enterpriseGroupsV1;
   const { subsidyAccessPolicyId } = useBudgetId();
   const { data: subsidyAccessPolicy } = useSubsidyAccessPolicy(subsidyAccessPolicyId);
   const {
@@ -39,7 +40,8 @@ const BudgetDetailActivityTabContents = ({ enterpriseUUID, enterpriseFeatures })
   if (!isTopDownAssignmentEnabled || !subsidyAccessPolicy?.isAssignable) {
     return (
       <>
-        {!hasSpentTransactions && (<NoBnEBudgetActivity />)}
+        {!hasSpentTransactions && isEnterpriseGroupsEnabled && (
+          <NoBnEBudgetActivity />)}
         <BudgetDetailRedemptions />
       </>
     );
@@ -72,6 +74,7 @@ BudgetDetailActivityTabContents.propTypes = {
   enterpriseUUID: PropTypes.string.isRequired,
   enterpriseFeatures: PropTypes.shape({
     topDownAssignmentRealTimeLcm: PropTypes.bool,
+    enterpriseGroupsV1: PropTypes.bool,
   }).isRequired,
 };
 
diff --git a/src/components/learner-credit-management/tests/BudgetDetailPage.test.jsx b/src/components/learner-credit-management/tests/BudgetDetailPage.test.jsx
index 07423a77d2..b9c9cbb101 100644
--- a/src/components/learner-credit-management/tests/BudgetDetailPage.test.jsx
+++ b/src/components/learner-credit-management/tests/BudgetDetailPage.test.jsx
@@ -77,6 +77,7 @@ const initialStoreState = {
     enableLearnerPortal: true,
     enterpriseFeatures: {
       topDownAssignmentRealTimeLcm: true,
+      enterpriseGroupsV1: true,
     },
   },
 };
@@ -442,6 +443,40 @@ describe('<BudgetDetailPage />', () => {
     }
   });
 
+  it('renders bne zero state only when the groups feature flag enabled', async () => {
+    const initialState = {
+      portalConfiguration: {
+        ...initialStoreState.portalConfiguration,
+        enterpriseFeatures: {
+          enterpriseGroupsV1: false,
+        },
+      },
+    };
+    useParams.mockReturnValue({
+      enterpriseSlug: 'test-enterprise-slug',
+      enterpriseAppPage: 'test-enterprise-page',
+      budgetId: 'a52e6548-649f-4576-b73f-c5c2bee25e9c',
+      activeTabKey: 'activity',
+    });
+    useSubsidyAccessPolicy.mockReturnValue({
+      isInitialLoading: false,
+      data: mockPerLearnerSpendLimitSubsidyAccessPolicy,
+    });
+    useBudgetDetailActivityOverview.mockReturnValue({
+      isLoading: false,
+      data: mockEmptyStateBudgetDetailActivityOverview,
+    });
+    useBudgetRedemptions.mockReturnValue({
+      isLoading: false,
+      budgetRedemptions: mockEmptyBudgetRedemptions,
+      fetchBudgetRedemptions: jest.fn(),
+    });
+    renderWithRouter(<BudgetDetailPageWrapper initialState={initialState} />);
+
+    // Overview empty state (no content assignments, no spent transactions)
+    expect(screen.queryByText('No budget activity yet? Invite members to browse the catalog and enroll!')).not.toBeInTheDocument();
+  });
+
   it.each([
     { isLargeViewport: true },
     { isLargeViewport: false },