diff --git a/openmetadata-service/src/main/java/org/openmetadata/service/OpenMetadataApplication.java b/openmetadata-service/src/main/java/org/openmetadata/service/OpenMetadataApplication.java
index a8ceb344dec..5f6076ab8b5 100644
--- a/openmetadata-service/src/main/java/org/openmetadata/service/OpenMetadataApplication.java
+++ b/openmetadata-service/src/main/java/org/openmetadata/service/OpenMetadataApplication.java
@@ -125,6 +125,9 @@ public class OpenMetadataApplication extends Application<OpenMetadataApplication
     ChangeEventConfig.initialize(catalogConfig);
     final Jdbi jdbi = createAndSetupJDBI(environment, catalogConfig.getDataSourceFactory());
 
+    // Configure the Fernet instance
+    Fernet.getInstance().setFernetKey(catalogConfig);
+
     // Init Settings Cache
     SettingsCache.initialize(jdbi.onDemand(CollectionDAO.class), catalogConfig);
 
@@ -135,8 +138,6 @@ public class OpenMetadataApplication extends Application<OpenMetadataApplication
 
     // init Entity Masker
     EntityMaskerFactory.createEntityMasker(catalogConfig.getSecurityConfiguration());
-    // Configure the Fernet instance
-    Fernet.getInstance().setFernetKey(catalogConfig);
 
     // Instantiate JWT Token Generator
     JWTTokenGenerator.getInstance().init(catalogConfig.getJwtTokenConfiguration());
diff --git a/openmetadata-service/src/main/java/org/openmetadata/service/jdbi3/SystemRepository.java b/openmetadata-service/src/main/java/org/openmetadata/service/jdbi3/SystemRepository.java
index 39216facf19..a3604112412 100644
--- a/openmetadata-service/src/main/java/org/openmetadata/service/jdbi3/SystemRepository.java
+++ b/openmetadata-service/src/main/java/org/openmetadata/service/jdbi3/SystemRepository.java
@@ -120,9 +120,7 @@ public class SystemRepository {
     try {
       if (setting.getConfigType() == SettingsType.EMAIL_CONFIGURATION) {
         SmtpSettings emailConfig = JsonUtils.convertValue(setting.getConfigValue(), SmtpSettings.class);
-        if (!Fernet.isTokenized(emailConfig.getPassword())) {
-          setting.setConfigValue(encryptSetting(emailConfig));
-        }
+        setting.setConfigValue(encryptSetting(emailConfig));
         // Invalidate Setting
         SettingsCache.getInstance().invalidateSettings(SettingsType.EMAIL_CONFIGURATION.value());
       }
@@ -133,7 +131,7 @@ public class SystemRepository {
   }
 
   public static SmtpSettings encryptSetting(SmtpSettings decryptedSetting) {
-    if (Fernet.getInstance().isKeyDefined()) {
+    if (Fernet.getInstance().isKeyDefined() && !Fernet.isTokenized(decryptedSetting.getPassword())) {
       String encryptedPwd = Fernet.getInstance().encrypt(decryptedSetting.getPassword());
       return decryptedSetting.withPassword(encryptedPwd);
     }
@@ -141,7 +139,7 @@ public class SystemRepository {
   }
 
   public static SmtpSettings decryptSetting(SmtpSettings encryptedSetting) {
-    if (Fernet.getInstance().isKeyDefined()) {
+    if (Fernet.getInstance().isKeyDefined() && Fernet.isTokenized(encryptedSetting.getPassword())) {
       String decryptedPassword = Fernet.getInstance().decrypt(encryptedSetting.getPassword());
       return encryptedSetting.withPassword(decryptedPassword);
     }
diff --git a/openmetadata-service/src/main/java/org/openmetadata/service/resources/system/SystemResource.java b/openmetadata-service/src/main/java/org/openmetadata/service/resources/system/SystemResource.java
index f92b2e9f105..f6f28d622d6 100644
--- a/openmetadata-service/src/main/java/org/openmetadata/service/resources/system/SystemResource.java
+++ b/openmetadata-service/src/main/java/org/openmetadata/service/resources/system/SystemResource.java
@@ -32,6 +32,7 @@ import javax.ws.rs.core.UriInfo;
 import lombok.extern.slf4j.Slf4j;
 import org.openmetadata.common.utils.CommonUtil;
 import org.openmetadata.schema.settings.Settings;
+import org.openmetadata.schema.settings.SettingsType;
 import org.openmetadata.schema.type.Include;
 import org.openmetadata.schema.util.EntitiesCount;
 import org.openmetadata.schema.util.ServicesCount;
@@ -56,6 +57,7 @@ public class SystemResource {
   public static final String COLLECTION_PATH = "/v1/util";
   private final SystemRepository systemRepository;
   private final Authorizer authorizer;
+  private OpenMetadataApplicationConfig applicationConfig;
 
   public SystemResource(CollectionDAO dao, Authorizer authorizer) {
     Objects.requireNonNull(dao, "SystemRepository must not be null");
@@ -65,10 +67,11 @@ public class SystemResource {
 
   @SuppressWarnings("unused") // Method used for reflection
   public void initialize(OpenMetadataApplicationConfig config) throws IOException {
-    initSettings(config);
+    this.applicationConfig = config;
+    initSettings();
   }
 
-  private void initSettings(OpenMetadataApplicationConfig applicationConfig) throws IOException {
+  private void initSettings() throws IOException {
     List<String> jsonDataFiles = EntityUtil.getJsonDataResources(".*json/data/settings/settingsData.json$");
     if (jsonDataFiles.size() != 1) {
       LOG.warn("Invalid number of jsonDataFiles {}. Only one expected.", jsonDataFiles.size());
@@ -184,6 +187,30 @@ public class SystemResource {
     return systemRepository.patchSetting(settingName, patch);
   }
 
+  @PUT
+  @Path("/restore/default/email")
+  @Operation(
+      operationId = "restoreEmailSettingToDefault",
+      summary = "Restore Email to Default setting",
+      description = "Restore Email to Default settings",
+      responses = {
+        @ApiResponse(
+            responseCode = "200",
+            description = "Settings",
+            content = @Content(mediaType = "application/json", schema = @Schema(implementation = Settings.class)))
+      })
+  public Response restoreDefaultEmailSetting(
+      @Context UriInfo uriInfo,
+      @Context SecurityContext securityContext,
+      @Parameter(description = "Name of the setting", schema = @Schema(type = "string")) @PathParam("settingName")
+          String name) {
+    authorizer.authorizeAdmin(securityContext);
+    return systemRepository.createOrUpdate(
+        new Settings()
+            .withConfigType(SettingsType.EMAIL_CONFIGURATION)
+            .withConfigValue(applicationConfig.getSmtpSettings()));
+  }
+
   @GET
   @Path("/entities/count")
   @Operation(