diff --git a/x-pack/plugins/index_lifecycle_management/__jest__/client_integration/edit_policy/edit_policy.test.ts b/x-pack/plugins/index_lifecycle_management/__jest__/client_integration/edit_policy/edit_policy.test.ts
index d563960fe428..ff070a7f08bb 100644
--- a/x-pack/plugins/index_lifecycle_management/__jest__/client_integration/edit_policy/edit_policy.test.ts
+++ b/x-pack/plugins/index_lifecycle_management/__jest__/client_integration/edit_policy/edit_policy.test.ts
@@ -700,33 +700,60 @@ describe('<EditPolicy />', () => {
 
   describe('searchable snapshot', () => {
     describe('on cloud', () => {
-      beforeEach(async () => {
-        httpRequestsMockHelpers.setLoadPolicies([getDefaultHotPhasePolicy('my_policy')]);
-        httpRequestsMockHelpers.setListNodes({
-          isUsingDeprecatedDataRoleConfig: false,
-          nodesByAttributes: { test: ['123'] },
-          nodesByRoles: { data: ['123'] },
-        });
-        httpRequestsMockHelpers.setListSnapshotRepos({ repositories: ['found-snapshots'] });
+      describe('new policy', () => {
+        beforeEach(async () => {
+          // simulate creating a new policy
+          httpRequestsMockHelpers.setLoadPolicies([getDefaultHotPhasePolicy('')]);
+          httpRequestsMockHelpers.setListNodes({
+            isUsingDeprecatedDataRoleConfig: false,
+            nodesByAttributes: { test: ['123'] },
+            nodesByRoles: { data: ['123'] },
+          });
+          httpRequestsMockHelpers.setListSnapshotRepos({ repositories: ['found-snapshots'] });
 
-        await act(async () => {
-          testBed = await setup({ appServicesContext: { cloud: { isCloudEnabled: true } } });
-        });
+          await act(async () => {
+            testBed = await setup({ appServicesContext: { cloud: { isCloudEnabled: true } } });
+          });
 
-        const { component } = testBed;
-        component.update();
+          const { component } = testBed;
+          component.update();
+        });
+        test('defaults searchable snapshot to true on cloud', async () => {
+          const { find, actions } = testBed;
+          await actions.cold.enable(true);
+          expect(
+            find('searchableSnapshotField-cold.searchableSnapshotToggle').props()['aria-checked']
+          ).toBe(true);
+        });
       });
+      describe('existing policy', () => {
+        beforeEach(async () => {
+          httpRequestsMockHelpers.setLoadPolicies([getDefaultHotPhasePolicy('my_policy')]);
+          httpRequestsMockHelpers.setListNodes({
+            isUsingDeprecatedDataRoleConfig: false,
+            nodesByAttributes: { test: ['123'] },
+            nodesByRoles: { data: ['123'] },
+          });
+          httpRequestsMockHelpers.setListSnapshotRepos({ repositories: ['found-snapshots'] });
 
-      test('correctly sets snapshot repository default to "found-snapshots"', async () => {
-        const { actions } = testBed;
-        await actions.cold.enable(true);
-        await actions.cold.toggleSearchableSnapshot(true);
-        await actions.savePolicy();
-        const latestRequest = server.requests[server.requests.length - 1];
-        const request = JSON.parse(JSON.parse(latestRequest.requestBody).body);
-        expect(request.phases.cold.actions.searchable_snapshot.snapshot_repository).toEqual(
-          'found-snapshots'
-        );
+          await act(async () => {
+            testBed = await setup({ appServicesContext: { cloud: { isCloudEnabled: true } } });
+          });
+
+          const { component } = testBed;
+          component.update();
+        });
+        test('correctly sets snapshot repository default to "found-snapshots"', async () => {
+          const { actions } = testBed;
+          await actions.cold.enable(true);
+          await actions.cold.toggleSearchableSnapshot(true);
+          await actions.savePolicy();
+          const latestRequest = server.requests[server.requests.length - 1];
+          const request = JSON.parse(JSON.parse(latestRequest.requestBody).body);
+          expect(request.phases.cold.actions.searchable_snapshot.snapshot_repository).toEqual(
+            'found-snapshots'
+          );
+        });
       });
     });
     describe('on non-enterprise license', () => {
diff --git a/x-pack/plugins/index_lifecycle_management/public/application/sections/edit_policy/components/phases/shared_fields/searchable_snapshot_field/searchable_snapshot_field.tsx b/x-pack/plugins/index_lifecycle_management/public/application/sections/edit_policy/components/phases/shared_fields/searchable_snapshot_field/searchable_snapshot_field.tsx
index 3157c0a51acc..5fa192158fb3 100644
--- a/x-pack/plugins/index_lifecycle_management/public/application/sections/edit_policy/components/phases/shared_fields/searchable_snapshot_field/searchable_snapshot_field.tsx
+++ b/x-pack/plugins/index_lifecycle_management/public/application/sections/edit_policy/components/phases/shared_fields/searchable_snapshot_field/searchable_snapshot_field.tsx
@@ -51,7 +51,7 @@ export const SearchableSnapshotField: FunctionComponent<Props> = ({ phase }) =>
   const {
     services: { cloud },
   } = useKibana();
-  const { getUrlForApp, policy, license } = useEditPolicyContext();
+  const { getUrlForApp, policy, license, isNewPolicy } = useEditPolicyContext();
   const { isUsingSearchableSnapshotInHotPhase, isUsingRollover } = useConfigurationIssues();
 
   const searchableSnapshotPath = `phases.${phase}.actions.searchable_snapshot.snapshot_repository`;
@@ -59,15 +59,20 @@ export const SearchableSnapshotField: FunctionComponent<Props> = ({ phase }) =>
   const [formData] = useFormData({ watch: searchableSnapshotPath });
   const searchableSnapshotRepo = get(formData, searchableSnapshotPath);
 
+  const isColdPhase = phase === 'cold';
   const isDisabledDueToLicense = !license.canUseSearchableSnapshot();
-  const isDisabledInColdDueToHotPhase = phase === 'cold' && isUsingSearchableSnapshotInHotPhase;
-  const isDisabledInColdDueToRollover = phase === 'cold' && !isUsingRollover;
+  const isDisabledInColdDueToHotPhase = isColdPhase && isUsingSearchableSnapshotInHotPhase;
+  const isDisabledInColdDueToRollover = isColdPhase && !isUsingRollover;
 
   const isDisabled =
     isDisabledDueToLicense || isDisabledInColdDueToHotPhase || isDisabledInColdDueToRollover;
 
   const [isFieldToggleChecked, setIsFieldToggleChecked] = useState(() =>
-    Boolean(policy.phases[phase]?.actions?.searchable_snapshot?.snapshot_repository)
+    Boolean(
+      // New policy on cloud should have searchable snapshot on in cold phase
+      (isColdPhase && isNewPolicy && cloud?.isCloudEnabled) ||
+        policy.phases[phase]?.actions?.searchable_snapshot?.snapshot_repository
+    )
   );
 
   useEffect(() => {
diff --git a/x-pack/plugins/index_lifecycle_management/public/application/sections/edit_policy/edit_policy_context.tsx b/x-pack/plugins/index_lifecycle_management/public/application/sections/edit_policy/edit_policy_context.tsx
index f7b9b1af1ee3..3f6eac9b7a8a 100644
--- a/x-pack/plugins/index_lifecycle_management/public/application/sections/edit_policy/edit_policy_context.tsx
+++ b/x-pack/plugins/index_lifecycle_management/public/application/sections/edit_policy/edit_policy_context.tsx
@@ -32,7 +32,7 @@ export const EditPolicyContextProvider = ({
   return <EditPolicyContext.Provider value={value}>{children}</EditPolicyContext.Provider>;
 };
 
-export const useEditPolicyContext = () => {
+export const useEditPolicyContext = (): EditPolicyContextValue => {
   const ctx = useContext(EditPolicyContext);
   if (!ctx) {
     throw new Error('useEditPolicyContext can only be called inside of EditPolicyContext!');