diff --git a/plugins/chat/plugin.rb b/plugins/chat/plugin.rb
index ec39914dd7f..ab8b6fdc13c 100644
--- a/plugins/chat/plugin.rb
+++ b/plugins/chat/plugin.rb
@@ -147,9 +147,10 @@ after_initialize do
 
   add_to_serializer(:user_card, :can_chat_user) do
     return false if !SiteSetting.chat_enabled
-    return false if scope.user.blank?
+    return false if scope.user.blank? || scope.user.id == object.id
+    return false if !scope.user.user_option.chat_enabled || !object.user_option.chat_enabled
 
-    scope.user.id != object.id && scope.can_chat? && Guardian.new(object).can_chat?
+    scope.can_direct_message? && Guardian.new(object).can_chat?
   end
 
   add_to_serializer(
@@ -166,7 +167,7 @@ after_initialize do
     :can_direct_message,
     include_condition: -> do
       return @can_direct_message if defined?(@can_direct_message)
-      @can_direct_message = SiteSetting.chat_enabled && scope.can_direct_message?
+      @can_direct_message = include_has_chat_enabled? && scope.can_direct_message?
     end,
   ) { true }
 
diff --git a/plugins/chat/spec/plugin_spec.rb b/plugins/chat/spec/plugin_spec.rb
index 515979e4df6..8a011e82321 100644
--- a/plugins/chat/spec/plugin_spec.rb
+++ b/plugins/chat/spec/plugin_spec.rb
@@ -82,6 +82,7 @@ describe Chat do
 
       it "returns true if the target user and the guardian user is in the Chat.allowed_group_ids" do
         SiteSetting.chat_allowed_groups = group.id
+        SiteSetting.direct_message_enabled_groups = group.id
         GroupUser.create(user: target_user, group: group)
         GroupUser.create(user: user, group: group)
         expect(serializer.can_chat_user).to eq(true)
@@ -114,6 +115,34 @@ describe Chat do
           expect(serializer.can_chat_user).to eq(false)
         end
       end
+
+      context "when both users are in Chat.allowed_group_ids" do
+        before do
+          SiteSetting.chat_allowed_groups = group.id
+          SiteSetting.direct_message_enabled_groups = group.id
+          GroupUser.create(user: target_user, group: group)
+          GroupUser.create(user: user, group: group)
+        end
+
+        it "returns true when both users are valid" do
+          expect(serializer.can_chat_user).to eq(true)
+        end
+
+        it "returns false if current user has chat disabled" do
+          user.user_option.update!(chat_enabled: false)
+          expect(serializer.can_chat_user).to eq(false)
+        end
+
+        it "returns false if target user has chat disabled" do
+          target_user.user_option.update!(chat_enabled: false)
+          expect(serializer.can_chat_user).to eq(false)
+        end
+
+        it "returns false if user is not in dm allowed group" do
+          SiteSetting.direct_message_enabled_groups = 3
+          expect(serializer.can_chat_user).to eq(false)
+        end
+      end
     end
 
     context "when chat not enabled" do