diff --git a/posthog/api/hog_function.py b/posthog/api/hog_function.py
index 03390596a7c627..1f67756e497c0e 100644
--- a/posthog/api/hog_function.py
+++ b/posthog/api/hog_function.py
@@ -190,7 +190,7 @@ def validate(self, attrs):
                 attrs["inputs"] = attrs.get("inputs") or {}
 
         if hog_type == "transformation":
-            if not settings.HOG_TRANSFORMATIONS_ENABLED:
+            if not settings.HOG_TRANSFORMATIONS_CUSTOM_HOG_ENABLED:
                 if not template:
                     raise serializers.ValidationError(
                         {"template_id": "Transformation functions must be created from a template."}
diff --git a/posthog/api/test/test_hog_function.py b/posthog/api/test/test_hog_function.py
index aa14418e3bf559..ba4f8500b5572e 100644
--- a/posthog/api/test/test_hog_function.py
+++ b/posthog/api/test/test_hog_function.py
@@ -1264,7 +1264,7 @@ def create(payload):
             }
         )
 
-    @override_settings(HOG_TRANSFORMATIONS_ENABLED=False)
+    @override_settings(HOG_TRANSFORMATIONS_CUSTOM_HOG_ENABLED=False)
     def test_transformation_functions_require_template_when_disabled(self):
         response = self.client.post(
             f"/api/projects/{self.team.id}/hog_functions/",
@@ -1283,13 +1283,13 @@ def test_transformation_functions_require_template_when_disabled(self):
             "attr": "template_id",
         }
 
-    @override_settings(HOG_TRANSFORMATIONS_ENABLED=False)
+    @override_settings(HOG_TRANSFORMATIONS_CUSTOM_HOG_ENABLED=False)
     def test_transformation_functions_preserve_template_code_when_disabled(self):
         with patch("posthog.api.hog_function_template.HogFunctionTemplates.template") as mock_template:
             mock_template.return_value = template_slack  # Use existing template instead of creating mock
 
             # First create with transformations enabled
-            with override_settings(HOG_TRANSFORMATIONS_ENABLED=True):
+            with override_settings(HOG_TRANSFORMATIONS_CUSTOM_HOG_ENABLED=True):
                 response = self.client.post(
                     f"/api/projects/{self.team.id}/hog_functions/",
                     data={
diff --git a/posthog/settings/web.py b/posthog/settings/web.py
index e3f0d6428071f3..3a0be90a763fa7 100644
--- a/posthog/settings/web.py
+++ b/posthog/settings/web.py
@@ -418,4 +418,6 @@ def static_varies_origin(headers, path, url):
 REMOTE_CONFIG_CDN_PURGE_DOMAINS = get_list(os.getenv("REMOTE_CONFIG_CDN_PURGE_DOMAINS", ""))
 
 # Whether to allow modification of transformation code
-HOG_TRANSFORMATIONS_ENABLED = get_from_env("HOG_TRANSFORMATIONS_ENABLED", False, type_cast=str_to_bool)
+HOG_TRANSFORMATIONS_CUSTOM_HOG_ENABLED = get_from_env(
+    "HOG_TRANSFORMATIONS_CUSTOM_HOG_ENABLED", False, type_cast=str_to_bool
+)