diff --git a/e2e-tests/cypress/tests/integration/channels/accessibility/accessibility_account_settings_spec.js b/e2e-tests/cypress/tests/integration/channels/accessibility/accessibility_account_settings_spec.js
index 03bc4d5bda..8c0c701c5a 100644
--- a/e2e-tests/cypress/tests/integration/channels/accessibility/accessibility_account_settings_spec.js
+++ b/e2e-tests/cypress/tests/integration/channels/accessibility/accessibility_account_settings_spec.js
@@ -50,6 +50,7 @@ describe('Verify Accessibility Support in different sections in Settings and Pro
             {key: 'click_to_reply', label: 'Click to open threads', type: 'radio'},
             {key: 'channel_display_mode', label: 'Channel Display', type: 'radio'},
             {key: 'one_click_reactions_enabled', label: 'Quick reactions on messages', type: 'radio'},
+            {key: 'renderEmoticonsAsEmoji', label: 'Render emoticons as emojis', type: 'radio'},
             {key: 'languages', label: 'Language', type: 'dropdown'},
         ],
         sidebar: [
diff --git a/webapp/channels/src/components/post_markdown/index.ts b/webapp/channels/src/components/post_markdown/index.ts
index 18d50ff40f..6172d960bf 100644
--- a/webapp/channels/src/components/post_markdown/index.ts
+++ b/webapp/channels/src/components/post_markdown/index.ts
@@ -82,6 +82,7 @@ function makeMapStateToProps() {
             hideGuestTags: getConfig(state).HideGuestTags === 'true',
             isEnterpriseOrCloudOrSKUStarterFree: isEnterpriseOrCloudOrSKUStarterFree(license, subscriptionProduct, isEnterpriseReady),
             isEnterpriseReady,
+            renderEmoticonsAsEmoji: getBool(state, Preferences.CATEGORY_DISPLAY_SETTINGS, Preferences.RENDER_EMOTICONS_AS_EMOJI, Preferences.RENDER_EMOTICONS_AS_EMOJI_DEFAULT === 'true'),
         };
     };
 }
diff --git a/webapp/channels/src/components/post_markdown/post_markdown.test.tsx b/webapp/channels/src/components/post_markdown/post_markdown.test.tsx
index 1af96ceb76..aa9541c422 100644
--- a/webapp/channels/src/components/post_markdown/post_markdown.test.tsx
+++ b/webapp/channels/src/components/post_markdown/post_markdown.test.tsx
@@ -32,6 +32,7 @@ describe('components/PostMarkdown', () => {
         isEnterpriseOrCloudOrSKUStarterFree: true,
         isEnterpriseReady: false,
         dispatch: jest.fn(),
+        renderEmoticonsAsEmoji: true,
     };
 
     const state = {entities: {
diff --git a/webapp/channels/src/components/post_markdown/post_markdown.tsx b/webapp/channels/src/components/post_markdown/post_markdown.tsx
index c36786f336..c67c503651 100644
--- a/webapp/channels/src/components/post_markdown/post_markdown.tsx
+++ b/webapp/channels/src/components/post_markdown/post_markdown.tsx
@@ -40,6 +40,11 @@ export type OwnProps = {
      */
     showPostEditedIndicator?: boolean;
     options?: TextFormattingOptions;
+
+    /**
+     * Whether or not to render text emoticons (:D) as emojis
+     */
+    renderEmoticonsAsEmoji?: boolean;
 };
 
 type Props = PropsFromRedux & OwnProps;
@@ -52,12 +57,13 @@ export default class PostMarkdown extends React.PureComponent<Props> {
     };
 
     getOptions = memoize(
-        (options?: TextFormattingOptions, disableGroupHighlight?: boolean, mentionHighlight?: boolean, editedAt?: number) => {
+        (options?: TextFormattingOptions, disableGroupHighlight?: boolean, mentionHighlight?: boolean, editedAt?: number, renderEmoticonsAsEmoji?: boolean) => {
             return {
                 ...options,
                 disableGroupHighlight,
                 mentionHighlight,
                 editedAt,
+                renderEmoticonsAsEmoji,
             };
         });
 
@@ -110,6 +116,7 @@ export default class PostMarkdown extends React.PureComponent<Props> {
             this.props.post?.props?.disable_group_highlight === true,
             mentionHighlight,
             this.props.post?.edit_at,
+            this.props?.renderEmoticonsAsEmoji,
         );
 
         let highlightKeys;
diff --git a/webapp/channels/src/components/user_settings/display/__snapshots__/user_settings_display.test.tsx.snap b/webapp/channels/src/components/user_settings/display/__snapshots__/user_settings_display.test.tsx.snap
index 8430a0e882..5f7e2d5458 100644
--- a/webapp/channels/src/components/user_settings/display/__snapshots__/user_settings_display.test.tsx.snap
+++ b/webapp/channels/src/components/user_settings/display/__snapshots__/user_settings_display.test.tsx.snap
@@ -314,6 +314,48 @@ exports[`components/user_settings/display/UserSettingsDisplay should match snaps
         className="divider-dark"
       />
     </div>
+    <div>
+      <Memo(SettingItem)
+        active={false}
+        areAllSectionsInactive={false}
+        describe={
+          <Memo(MemoizedFormattedMessage)
+            defaultMessage="Off"
+            id="user.settings.advance.off"
+          />
+        }
+        max={
+          <Memo(Connect(RenderEmoticonsAsEmoji))
+            adminMode={false}
+            renderEmoticonsAsEmoji=""
+            updateSection={[Function]}
+            user={
+              Object {
+                "id": "user_id",
+                "locale": "en",
+                "timezone": Object {
+                  "automaticTimezone": "America/New_York",
+                  "manualTimezone": "",
+                  "useAutomaticTimezone": "true",
+                },
+                "username": "username",
+              }
+            }
+          />
+        }
+        section="renderEmoticonsAsEmoji"
+        title={
+          <Memo(MemoizedFormattedMessage)
+            defaultMessage="Render emoticons as emojis"
+            id="user.settings.display.renderEmoticonsAsEmojiTitle"
+          />
+        }
+        updateSection={[Function]}
+      />
+      <div
+        className="divider-dark"
+      />
+    </div>
     <div>
       <Memo(SettingItem)
         active={false}
@@ -669,6 +711,48 @@ exports[`components/user_settings/display/UserSettingsDisplay should match snaps
         className="divider-dark"
       />
     </div>
+    <div>
+      <Memo(SettingItem)
+        active={false}
+        areAllSectionsInactive={false}
+        describe={
+          <Memo(MemoizedFormattedMessage)
+            defaultMessage="Off"
+            id="user.settings.advance.off"
+          />
+        }
+        max={
+          <Memo(Connect(RenderEmoticonsAsEmoji))
+            adminMode={false}
+            renderEmoticonsAsEmoji=""
+            updateSection={[Function]}
+            user={
+              Object {
+                "id": "user_id",
+                "locale": "en",
+                "timezone": Object {
+                  "automaticTimezone": "America/New_York",
+                  "manualTimezone": "",
+                  "useAutomaticTimezone": "true",
+                },
+                "username": "username",
+              }
+            }
+          />
+        }
+        section="renderEmoticonsAsEmoji"
+        title={
+          <Memo(MemoizedFormattedMessage)
+            defaultMessage="Render emoticons as emojis"
+            id="user.settings.display.renderEmoticonsAsEmojiTitle"
+          />
+        }
+        updateSection={[Function]}
+      />
+      <div
+        className="divider-dark"
+      />
+    </div>
     <div>
       <Memo(SettingItem)
         active={false}
@@ -1024,6 +1108,48 @@ exports[`components/user_settings/display/UserSettingsDisplay should match snaps
         className="divider-dark"
       />
     </div>
+    <div>
+      <Memo(SettingItem)
+        active={false}
+        areAllSectionsInactive={false}
+        describe={
+          <Memo(MemoizedFormattedMessage)
+            defaultMessage="Off"
+            id="user.settings.advance.off"
+          />
+        }
+        max={
+          <Memo(Connect(RenderEmoticonsAsEmoji))
+            adminMode={false}
+            renderEmoticonsAsEmoji=""
+            updateSection={[Function]}
+            user={
+              Object {
+                "id": "user_id",
+                "locale": "en",
+                "timezone": Object {
+                  "automaticTimezone": "America/New_York",
+                  "manualTimezone": "",
+                  "useAutomaticTimezone": "true",
+                },
+                "username": "username",
+              }
+            }
+          />
+        }
+        section="renderEmoticonsAsEmoji"
+        title={
+          <Memo(MemoizedFormattedMessage)
+            defaultMessage="Render emoticons as emojis"
+            id="user.settings.display.renderEmoticonsAsEmojiTitle"
+          />
+        }
+        updateSection={[Function]}
+      />
+      <div
+        className="divider-dark"
+      />
+    </div>
     <div>
       <Memo(SettingItem)
         active={false}
@@ -1379,6 +1505,48 @@ exports[`components/user_settings/display/UserSettingsDisplay should match snaps
         className="divider-dark"
       />
     </div>
+    <div>
+      <Memo(SettingItem)
+        active={false}
+        areAllSectionsInactive={false}
+        describe={
+          <Memo(MemoizedFormattedMessage)
+            defaultMessage="Off"
+            id="user.settings.advance.off"
+          />
+        }
+        max={
+          <Memo(Connect(RenderEmoticonsAsEmoji))
+            adminMode={false}
+            renderEmoticonsAsEmoji=""
+            updateSection={[Function]}
+            user={
+              Object {
+                "id": "user_id",
+                "locale": "en",
+                "timezone": Object {
+                  "automaticTimezone": "America/New_York",
+                  "manualTimezone": "",
+                  "useAutomaticTimezone": "true",
+                },
+                "username": "username",
+              }
+            }
+          />
+        }
+        section="renderEmoticonsAsEmoji"
+        title={
+          <Memo(MemoizedFormattedMessage)
+            defaultMessage="Render emoticons as emojis"
+            id="user.settings.display.renderEmoticonsAsEmojiTitle"
+          />
+        }
+        updateSection={[Function]}
+      />
+      <div
+        className="divider-dark"
+      />
+    </div>
     <div>
       <Memo(SettingItem)
         active={false}
@@ -1661,6 +1829,48 @@ exports[`components/user_settings/display/UserSettingsDisplay should match snaps
         className="divider-dark"
       />
     </div>
+    <div>
+      <Memo(SettingItem)
+        active={false}
+        areAllSectionsInactive={false}
+        describe={
+          <Memo(MemoizedFormattedMessage)
+            defaultMessage="Off"
+            id="user.settings.advance.off"
+          />
+        }
+        max={
+          <Memo(Connect(RenderEmoticonsAsEmoji))
+            adminMode={false}
+            renderEmoticonsAsEmoji=""
+            updateSection={[Function]}
+            user={
+              Object {
+                "id": "user_id",
+                "locale": "en",
+                "timezone": Object {
+                  "automaticTimezone": "America/New_York",
+                  "manualTimezone": "",
+                  "useAutomaticTimezone": "true",
+                },
+                "username": "username",
+              }
+            }
+          />
+        }
+        section="renderEmoticonsAsEmoji"
+        title={
+          <Memo(MemoizedFormattedMessage)
+            defaultMessage="Render emoticons as emojis"
+            id="user.settings.display.renderEmoticonsAsEmojiTitle"
+          />
+        }
+        updateSection={[Function]}
+      />
+      <div
+        className="divider-dark"
+      />
+    </div>
     <div>
       <Memo(SettingItem)
         active={true}
@@ -1925,6 +2135,48 @@ exports[`components/user_settings/display/UserSettingsDisplay should match snaps
         className="divider-dark"
       />
     </div>
+    <div>
+      <Memo(SettingItem)
+        active={false}
+        areAllSectionsInactive={false}
+        describe={
+          <Memo(MemoizedFormattedMessage)
+            defaultMessage="Off"
+            id="user.settings.advance.off"
+          />
+        }
+        max={
+          <Memo(Connect(RenderEmoticonsAsEmoji))
+            adminMode={false}
+            renderEmoticonsAsEmoji=""
+            updateSection={[Function]}
+            user={
+              Object {
+                "id": "user_id",
+                "locale": "en",
+                "timezone": Object {
+                  "automaticTimezone": "America/New_York",
+                  "manualTimezone": "",
+                  "useAutomaticTimezone": "true",
+                },
+                "username": "username",
+              }
+            }
+          />
+        }
+        section="renderEmoticonsAsEmoji"
+        title={
+          <Memo(MemoizedFormattedMessage)
+            defaultMessage="Render emoticons as emojis"
+            id="user.settings.display.renderEmoticonsAsEmojiTitle"
+          />
+        }
+        updateSection={[Function]}
+      />
+      <div
+        className="divider-dark"
+      />
+    </div>
     <div>
       <Memo(SettingItem)
         active={false}
@@ -2280,6 +2532,48 @@ exports[`components/user_settings/display/UserSettingsDisplay should match snaps
         className="divider-dark"
       />
     </div>
+    <div>
+      <Memo(SettingItem)
+        active={false}
+        areAllSectionsInactive={false}
+        describe={
+          <Memo(MemoizedFormattedMessage)
+            defaultMessage="Off"
+            id="user.settings.advance.off"
+          />
+        }
+        max={
+          <Memo(Connect(RenderEmoticonsAsEmoji))
+            adminMode={false}
+            renderEmoticonsAsEmoji=""
+            updateSection={[Function]}
+            user={
+              Object {
+                "id": "user_id",
+                "locale": "en",
+                "timezone": Object {
+                  "automaticTimezone": "America/New_York",
+                  "manualTimezone": "",
+                  "useAutomaticTimezone": "true",
+                },
+                "username": "username",
+              }
+            }
+          />
+        }
+        section="renderEmoticonsAsEmoji"
+        title={
+          <Memo(MemoizedFormattedMessage)
+            defaultMessage="Render emoticons as emojis"
+            id="user.settings.display.renderEmoticonsAsEmojiTitle"
+          />
+        }
+        updateSection={[Function]}
+      />
+      <div
+        className="divider-dark"
+      />
+    </div>
     <div>
       <Memo(SettingItem)
         active={false}
@@ -2653,6 +2947,48 @@ exports[`components/user_settings/display/UserSettingsDisplay should match snaps
         className="divider-dark"
       />
     </div>
+    <div>
+      <Memo(SettingItem)
+        active={false}
+        areAllSectionsInactive={false}
+        describe={
+          <Memo(MemoizedFormattedMessage)
+            defaultMessage="Off"
+            id="user.settings.advance.off"
+          />
+        }
+        max={
+          <Memo(Connect(RenderEmoticonsAsEmoji))
+            adminMode={false}
+            renderEmoticonsAsEmoji=""
+            updateSection={[Function]}
+            user={
+              Object {
+                "id": "user_id",
+                "locale": "en",
+                "timezone": Object {
+                  "automaticTimezone": "America/New_York",
+                  "manualTimezone": "",
+                  "useAutomaticTimezone": "true",
+                },
+                "username": "username",
+              }
+            }
+          />
+        }
+        section="renderEmoticonsAsEmoji"
+        title={
+          <Memo(MemoizedFormattedMessage)
+            defaultMessage="Render emoticons as emojis"
+            id="user.settings.display.renderEmoticonsAsEmojiTitle"
+          />
+        }
+        updateSection={[Function]}
+      />
+      <div
+        className="divider-dark"
+      />
+    </div>
     <div>
       <Memo(SettingItem)
         active={false}
@@ -2935,6 +3271,48 @@ exports[`components/user_settings/display/UserSettingsDisplay should match snaps
         className="divider-dark"
       />
     </div>
+    <div>
+      <Memo(SettingItem)
+        active={false}
+        areAllSectionsInactive={true}
+        describe={
+          <Memo(MemoizedFormattedMessage)
+            defaultMessage="Off"
+            id="user.settings.advance.off"
+          />
+        }
+        max={
+          <Memo(Connect(RenderEmoticonsAsEmoji))
+            adminMode={false}
+            renderEmoticonsAsEmoji=""
+            updateSection={[Function]}
+            user={
+              Object {
+                "id": "user_id",
+                "locale": "en",
+                "timezone": Object {
+                  "automaticTimezone": "America/New_York",
+                  "manualTimezone": "",
+                  "useAutomaticTimezone": "true",
+                },
+                "username": "username",
+              }
+            }
+          />
+        }
+        section="renderEmoticonsAsEmoji"
+        title={
+          <Memo(MemoizedFormattedMessage)
+            defaultMessage="Render emoticons as emojis"
+            id="user.settings.display.renderEmoticonsAsEmojiTitle"
+          />
+        }
+        updateSection={[Function]}
+      />
+      <div
+        className="divider-dark"
+      />
+    </div>
     <div>
       <Memo(SettingItem)
         active={false}
@@ -3217,6 +3595,48 @@ exports[`components/user_settings/display/UserSettingsDisplay should match snaps
         className="divider-dark"
       />
     </div>
+    <div>
+      <Memo(SettingItem)
+        active={false}
+        areAllSectionsInactive={false}
+        describe={
+          <Memo(MemoizedFormattedMessage)
+            defaultMessage="Off"
+            id="user.settings.advance.off"
+          />
+        }
+        max={
+          <Memo(Connect(RenderEmoticonsAsEmoji))
+            adminMode={false}
+            renderEmoticonsAsEmoji=""
+            updateSection={[Function]}
+            user={
+              Object {
+                "id": "user_id",
+                "locale": "en",
+                "timezone": Object {
+                  "automaticTimezone": "America/New_York",
+                  "manualTimezone": "",
+                  "useAutomaticTimezone": "true",
+                },
+                "username": "username",
+              }
+            }
+          />
+        }
+        section="renderEmoticonsAsEmoji"
+        title={
+          <Memo(MemoizedFormattedMessage)
+            defaultMessage="Render emoticons as emojis"
+            id="user.settings.display.renderEmoticonsAsEmojiTitle"
+          />
+        }
+        updateSection={[Function]}
+      />
+      <div
+        className="divider-dark"
+      />
+    </div>
     <div>
       <Memo(SettingItem)
         active={false}
@@ -3499,6 +3919,48 @@ exports[`components/user_settings/display/UserSettingsDisplay should match snaps
         className="divider-dark"
       />
     </div>
+    <div>
+      <Memo(SettingItem)
+        active={false}
+        areAllSectionsInactive={false}
+        describe={
+          <Memo(MemoizedFormattedMessage)
+            defaultMessage="Off"
+            id="user.settings.advance.off"
+          />
+        }
+        max={
+          <Memo(Connect(RenderEmoticonsAsEmoji))
+            adminMode={false}
+            renderEmoticonsAsEmoji=""
+            updateSection={[Function]}
+            user={
+              Object {
+                "id": "user_id",
+                "locale": "en",
+                "timezone": Object {
+                  "automaticTimezone": "America/New_York",
+                  "manualTimezone": "",
+                  "useAutomaticTimezone": "true",
+                },
+                "username": "username",
+              }
+            }
+          />
+        }
+        section="renderEmoticonsAsEmoji"
+        title={
+          <Memo(MemoizedFormattedMessage)
+            defaultMessage="Render emoticons as emojis"
+            id="user.settings.display.renderEmoticonsAsEmojiTitle"
+          />
+        }
+        updateSection={[Function]}
+      />
+      <div
+        className="divider-dark"
+      />
+    </div>
     <div>
       <Memo(SettingItem)
         active={false}
@@ -3793,6 +4255,48 @@ exports[`components/user_settings/display/UserSettingsDisplay should match snaps
         className="divider-dark"
       />
     </div>
+    <div>
+      <Memo(SettingItem)
+        active={false}
+        areAllSectionsInactive={false}
+        describe={
+          <Memo(MemoizedFormattedMessage)
+            defaultMessage="Off"
+            id="user.settings.advance.off"
+          />
+        }
+        max={
+          <Memo(Connect(RenderEmoticonsAsEmoji))
+            adminMode={false}
+            renderEmoticonsAsEmoji=""
+            updateSection={[Function]}
+            user={
+              Object {
+                "id": "user_id",
+                "locale": "en",
+                "timezone": Object {
+                  "automaticTimezone": "America/New_York",
+                  "manualTimezone": "",
+                  "useAutomaticTimezone": "true",
+                },
+                "username": "username",
+              }
+            }
+          />
+        }
+        section="renderEmoticonsAsEmoji"
+        title={
+          <Memo(MemoizedFormattedMessage)
+            defaultMessage="Render emoticons as emojis"
+            id="user.settings.display.renderEmoticonsAsEmojiTitle"
+          />
+        }
+        updateSection={[Function]}
+      />
+      <div
+        className="divider-dark"
+      />
+    </div>
     <div>
       <Memo(SettingItem)
         active={false}
@@ -4075,6 +4579,48 @@ exports[`components/user_settings/display/UserSettingsDisplay should match snaps
         className="divider-dark"
       />
     </div>
+    <div>
+      <Memo(SettingItem)
+        active={false}
+        areAllSectionsInactive={false}
+        describe={
+          <Memo(MemoizedFormattedMessage)
+            defaultMessage="Off"
+            id="user.settings.advance.off"
+          />
+        }
+        max={
+          <Memo(Connect(RenderEmoticonsAsEmoji))
+            adminMode={false}
+            renderEmoticonsAsEmoji=""
+            updateSection={[Function]}
+            user={
+              Object {
+                "id": "user_id",
+                "locale": "en",
+                "timezone": Object {
+                  "automaticTimezone": "America/New_York",
+                  "manualTimezone": "",
+                  "useAutomaticTimezone": "true",
+                },
+                "username": "username",
+              }
+            }
+          />
+        }
+        section="renderEmoticonsAsEmoji"
+        title={
+          <Memo(MemoizedFormattedMessage)
+            defaultMessage="Render emoticons as emojis"
+            id="user.settings.display.renderEmoticonsAsEmojiTitle"
+          />
+        }
+        updateSection={[Function]}
+      />
+      <div
+        className="divider-dark"
+      />
+    </div>
     <div>
       <Memo(SettingItem)
         active={false}
@@ -4333,6 +4879,48 @@ exports[`components/user_settings/display/UserSettingsDisplay should not show la
         className="divider-dark"
       />
     </div>
+    <div>
+      <Memo(SettingItem)
+        active={false}
+        areAllSectionsInactive={true}
+        describe={
+          <Memo(MemoizedFormattedMessage)
+            defaultMessage="Off"
+            id="user.settings.advance.off"
+          />
+        }
+        max={
+          <Memo(Connect(RenderEmoticonsAsEmoji))
+            adminMode={false}
+            renderEmoticonsAsEmoji=""
+            updateSection={[Function]}
+            user={
+              Object {
+                "id": "user_id",
+                "locale": "en",
+                "timezone": Object {
+                  "automaticTimezone": "America/New_York",
+                  "manualTimezone": "",
+                  "useAutomaticTimezone": "true",
+                },
+                "username": "username",
+              }
+            }
+          />
+        }
+        section="renderEmoticonsAsEmoji"
+        title={
+          <Memo(MemoizedFormattedMessage)
+            defaultMessage="Render emoticons as emojis"
+            id="user.settings.display.renderEmoticonsAsEmojiTitle"
+          />
+        }
+        updateSection={[Function]}
+      />
+      <div
+        className="divider-dark"
+      />
+    </div>
     <div>
       <Memo(SettingItem)
         active={false}
diff --git a/webapp/channels/src/components/user_settings/display/index.ts b/webapp/channels/src/components/user_settings/display/index.ts
index 3cd5781307..eb31403518 100644
--- a/webapp/channels/src/components/user_settings/display/index.ts
+++ b/webapp/channels/src/components/user_settings/display/index.ts
@@ -86,6 +86,7 @@ export function makeMapStateToProps() {
             clickToReply: get(state, Preferences.CATEGORY_DISPLAY_SETTINGS, Preferences.CLICK_TO_REPLY, Preferences.CLICK_TO_REPLY_DEFAULT, userPreference),
             linkPreviewDisplay: get(state, Preferences.CATEGORY_DISPLAY_SETTINGS, Preferences.LINK_PREVIEW_DISPLAY, Preferences.LINK_PREVIEW_DISPLAY_DEFAULT, userPreference),
             oneClickReactionsOnPosts: get(state, Preferences.CATEGORY_DISPLAY_SETTINGS, Preferences.ONE_CLICK_REACTIONS_ENABLED, Preferences.ONE_CLICK_REACTIONS_ENABLED_DEFAULT, userPreference),
+            renderEmoticonsAsEmoji: get(state, Preferences.CATEGORY_DISPLAY_SETTINGS, Preferences.RENDER_EMOTICONS_AS_EMOJI, Preferences.RENDER_EMOTICONS_AS_EMOJI_DEFAULT, userPreference),
             emojiPickerEnabled,
             lastActiveDisplay,
             lastActiveTimeEnabled,
diff --git a/webapp/channels/src/components/user_settings/display/render_emoticons_as_emoji/__snapshots__/render_emoticons_as_emoji.test.tsx.snap b/webapp/channels/src/components/user_settings/display/render_emoticons_as_emoji/__snapshots__/render_emoticons_as_emoji.test.tsx.snap
new file mode 100644
index 0000000000..018ebb9222
--- /dev/null
+++ b/webapp/channels/src/components/user_settings/display/render_emoticons_as_emoji/__snapshots__/render_emoticons_as_emoji.test.tsx.snap
@@ -0,0 +1,92 @@
+// Jest Snapshot v1, https://goo.gl/fbAQLP
+
+exports[`components/user_settings/display/render_emoticons_as_emoji/render_emoticons_as_emoji should match snapshot 1`] = `
+<div>
+  <section
+    class="section-max form-horizontal "
+  >
+    <h4
+      class="col-sm-12 section-title"
+      id="settingTitle"
+    >
+      Render emoticons as emojis
+    </h4>
+    <div
+      class="sectionContent col-sm-10 col-sm-offset-2"
+    >
+      <div
+        class="setting-list"
+        tabindex="-1"
+      >
+        <div
+          class="setting-list-item"
+        >
+          <fieldset>
+            <legend
+              class="form-legend hidden-label"
+            >
+              Render emoticons as emojis
+            </legend>
+            <div
+              class="radio"
+            >
+              <label>
+                <input
+                  checked=""
+                  class="a11y--active a11y--focused"
+                  id="renderEmoticonsAsEmojiOn"
+                  name="renderEmoticonsAsEmoji"
+                  type="radio"
+                  value="true"
+                />
+                On
+              </label>
+              <br />
+            </div>
+            <div
+              class="radio"
+            >
+              <label>
+                <input
+                  id="renderEmoticonsAsEmojiOff"
+                  name="renderEmoticonsAsEmoji"
+                  type="radio"
+                  value="false"
+                />
+                Off
+              </label>
+              <br />
+            </div>
+            <div
+              class="mt-5"
+            >
+              When enabled, text emoticons in messages will be rendered as emojis (For example :D as 😄)
+            </div>
+          </fieldset>
+        </div>
+        <div
+          class="setting-list-item"
+        >
+          <hr />
+          <button
+            class="btn btn-primary "
+            data-testid="saveSetting"
+            id="saveSetting"
+            type="submit"
+          >
+            <span>
+              Save
+            </span>
+          </button>
+          <button
+            class="btn btn-tertiary"
+            id="cancelSetting"
+          >
+            Cancel
+          </button>
+        </div>
+      </div>
+    </div>
+  </section>
+</div>
+`;
diff --git a/webapp/channels/src/components/user_settings/display/render_emoticons_as_emoji/index.ts b/webapp/channels/src/components/user_settings/display/render_emoticons_as_emoji/index.ts
new file mode 100644
index 0000000000..c93c67364f
--- /dev/null
+++ b/webapp/channels/src/components/user_settings/display/render_emoticons_as_emoji/index.ts
@@ -0,0 +1,20 @@
+// Copyright (c) 2015-present Mattermost, Inc. All Rights Reserved.
+// See LICENSE.txt for license information.
+
+import {connect} from 'react-redux';
+import {bindActionCreators} from 'redux';
+import type {Dispatch} from 'redux';
+
+import {savePreferences} from 'mattermost-redux/actions/preferences';
+
+import RenderEmoticonsAsEmoji from './render_emoticons_as_emoji';
+
+function mapDispatchToProps(dispatch: Dispatch) {
+    return {
+        actions: bindActionCreators({
+            savePreferences,
+        }, dispatch),
+    };
+}
+
+export default connect(null, mapDispatchToProps)(RenderEmoticonsAsEmoji);
diff --git a/webapp/channels/src/components/user_settings/display/render_emoticons_as_emoji/render_emoticons_as_emoji.test.tsx b/webapp/channels/src/components/user_settings/display/render_emoticons_as_emoji/render_emoticons_as_emoji.test.tsx
new file mode 100644
index 0000000000..9107caa9a5
--- /dev/null
+++ b/webapp/channels/src/components/user_settings/display/render_emoticons_as_emoji/render_emoticons_as_emoji.test.tsx
@@ -0,0 +1,56 @@
+// Copyright (c) 2015-present Mattermost, Inc. All Rights Reserved.
+// See LICENSE.txt for license information.
+
+import React from 'react';
+
+import type {UserProfile} from '@mattermost/types/users';
+
+import {renderWithContext, userEvent} from 'tests/react_testing_utils';
+
+import RenderEmoticonsAsEmoji from './render_emoticons_as_emoji';
+
+describe('components/user_settings/display/render_emoticons_as_emoji/render_emoticons_as_emoji', () => {
+    const user = {
+        id: 'user_id',
+        username: 'username',
+        locale: 'en',
+        timezone: {
+            useAutomaticTimezone: 'true',
+            automaticTimezone: 'America/New_York',
+            manualTimezone: '',
+        },
+    };
+
+    const props = {
+        user: user as UserProfile,
+        renderEmoticonsAsEmoji: 'true',
+        updateSection: jest.fn(),
+        adminMode: false,
+        userPreferences: undefined,
+        actions: {
+            savePreferences: jest.fn(() => {
+                return new Promise<void>((resolve) => {
+                    process.nextTick(() => resolve());
+                });
+            })},
+    };
+
+    test('should match snapshot', () => {
+        const {container} = renderWithContext(<RenderEmoticonsAsEmoji {...props}/>);
+
+        expect(container).toMatchSnapshot();
+    });
+
+    test('should call updateSection on submit', async () => {
+        const {getByRole, getByLabelText} = renderWithContext(<RenderEmoticonsAsEmoji {...props}/>);
+
+        const radioButtonOff = getByLabelText(/off/i);
+        userEvent.click(radioButtonOff);
+
+        const submitButton = getByRole('button', {name: /save/i});
+        userEvent.click(submitButton);
+
+        expect(props.actions.savePreferences).toHaveBeenCalled();
+        expect(props.updateSection).toHaveBeenCalledWith('');
+    });
+});
diff --git a/webapp/channels/src/components/user_settings/display/render_emoticons_as_emoji/render_emoticons_as_emoji.tsx b/webapp/channels/src/components/user_settings/display/render_emoticons_as_emoji/render_emoticons_as_emoji.tsx
new file mode 100644
index 0000000000..d27e42dfa9
--- /dev/null
+++ b/webapp/channels/src/components/user_settings/display/render_emoticons_as_emoji/render_emoticons_as_emoji.tsx
@@ -0,0 +1,133 @@
+// Copyright (c) 2015-present Mattermost, Inc. All Rights Reserved.
+// See LICENSE.txt for license information.
+
+import React, {useCallback, useState} from 'react';
+import {FormattedMessage} from 'react-intl';
+
+import type {PreferencesType, PreferenceType} from '@mattermost/types/preferences';
+import type {UserProfile} from '@mattermost/types/users';
+
+import {Preferences} from 'mattermost-redux/constants';
+
+import SettingItemMax from 'components/setting_item_max';
+
+export type Actions = {
+    savePreferences: (userId: string, preferences: PreferenceType[]) => void;
+};
+
+export type OwnProps = {
+    user: UserProfile;
+    updateSection: (section: string) => void;
+    adminMode?: boolean;
+    userPreferences?: PreferencesType;
+}
+
+type Props = OwnProps & {
+    renderEmoticonsAsEmoji: string;
+    actions: Actions;
+}
+
+const RenderEmoticonsAsEmoji: React.FC<Props> = ({user, renderEmoticonsAsEmoji, updateSection, actions}) => {
+    const [value, setValue] = useState<string>(renderEmoticonsAsEmoji);
+    const [isSaving, setIsSaving] = useState<boolean>(false);
+
+    const handleChange = useCallback((e: React.ChangeEvent<HTMLInputElement>) => {
+        setValue(e.currentTarget.value);
+    }, []);
+
+    const submitPreference = useCallback(() => {
+        setIsSaving(true);
+        const pref: PreferenceType = {
+            user_id: user.id,
+            category: Preferences.CATEGORY_DISPLAY_SETTINGS,
+            name: Preferences.RENDER_EMOTICONS_AS_EMOJI,
+            value,
+        };
+        actions.savePreferences(user.id, [pref]);
+        setIsSaving(false);
+        updateSection('');
+    }, [user.id, updateSection, actions, value]);
+
+    const changePreference = useCallback(() => {
+        if (value === renderEmoticonsAsEmoji) {
+            updateSection('');
+            return;
+        }
+
+        submitPreference();
+    }, [renderEmoticonsAsEmoji, updateSection, value, submitPreference]);
+
+    const options = [
+        {
+            option: 'true',
+            inputId: 'renderEmoticonsAsEmojiOn',
+            messageId: 'user.settings.advance.on',
+            defaultMessage: 'On',
+        },
+        {
+            option: 'false',
+            inputId: 'renderEmoticonsAsEmojiOff',
+            messageId: 'user.settings.advance.off',
+            defaultMessage: 'Off',
+        },
+    ];
+
+    const input = (
+        <fieldset key='renderEmoticonsAsEmojiSetting'>
+            <legend className='form-legend hidden-label'>
+                <FormattedMessage
+                    id='user.settings.display.renderEmoticonsAsEmojiTitle'
+                    defaultMessage='Render emoticons as emojis'
+                />
+            </legend>
+            {options.map(({option, inputId, messageId, defaultMessage}) => {
+                return (
+                    <div
+                        className='radio'
+                        key={option}
+                    >
+                        <label>
+                            <input
+                                id={inputId}
+                                type='radio'
+                                name='renderEmoticonsAsEmoji'
+                                value={option}
+                                checked={value === option}
+                                onChange={handleChange}
+                            />
+                            <FormattedMessage
+                                id={messageId}
+                                defaultMessage={defaultMessage}
+                            />
+                        </label>
+                        <br/>
+                    </div>
+                );
+            })}
+            <div className='mt-5'>
+                <FormattedMessage
+                    id='user.settings.display.renderEmoticonsAsEmojiDesc'
+                    defaultMessage='When enabled, text emoticons in messages will be rendered as emojis (For example :D as 😄)'
+                />
+            </div>
+        </fieldset>
+    );
+
+    return (
+        <SettingItemMax
+            title={
+                <FormattedMessage
+                    id='user.settings.display.renderEmoticonsAsEmojiTitle'
+                    defaultMessage='Render emoticons as emojis'
+                />
+            }
+            inputs={[input]}
+            submit={changePreference}
+            saving={isSaving}
+            updateSection={updateSection}
+            disableEnterSubmit={true}
+        />
+    );
+};
+
+export default RenderEmoticonsAsEmoji;
diff --git a/webapp/channels/src/components/user_settings/display/user_settings_display.test.tsx b/webapp/channels/src/components/user_settings/display/user_settings_display.test.tsx
index 17cdddf666..7b4c6beb4c 100644
--- a/webapp/channels/src/components/user_settings/display/user_settings_display.test.tsx
+++ b/webapp/channels/src/components/user_settings/display/user_settings_display.test.tsx
@@ -94,6 +94,7 @@ describe('components/user_settings/display/UserSettingsDisplay', () => {
         globalHeaderAllowed: true,
         lastActiveDisplay: true,
         oneClickReactionsOnPosts: '',
+        renderEmoticonsAsEmoji: '',
         emojiPickerEnabled: true,
         clickToReply: '',
         lastActiveTimeEnabled: true,
diff --git a/webapp/channels/src/components/user_settings/display/user_settings_display.tsx b/webapp/channels/src/components/user_settings/display/user_settings_display.tsx
index 6892e9d93d..9f3371efe7 100644
--- a/webapp/channels/src/components/user_settings/display/user_settings_display.tsx
+++ b/webapp/channels/src/components/user_settings/display/user_settings_display.tsx
@@ -28,6 +28,7 @@ import {a11yFocus} from 'utils/utils';
 
 import ManageLanguages from './manage_languages';
 import ManageTimezones from './manage_timezones';
+import RenderEmoticonsAsEmoji from './render_emoticons_as_emoji';
 
 import SettingDesktopHeader from '../headers/setting_desktop_header';
 import SettingMobileHeader from '../headers/setting_mobile_header';
@@ -120,6 +121,7 @@ type Props = OwnProps & {
     timezoneLabel: string;
     lastActiveDisplay: boolean;
     lastActiveTimeEnabled: boolean;
+    renderEmoticonsAsEmoji: string;
     actions: {
         savePreferences: (userId: string, preferences: PreferenceType[]) => void;
         autoUpdateTimezone: (deviceTimezone: string) => void;
@@ -1147,6 +1149,46 @@ export default class UserSettingsDisplay extends React.PureComponent<Props, Stat
             });
         }
 
+        const renderEmoticonsAsEmojiSection = (
+            <div>
+                <SettingItem
+                    active={this.props.activeSection === 'renderEmoticonsAsEmoji'}
+                    areAllSectionsInactive={this.props.activeSection === ''}
+                    title={
+                        <FormattedMessage
+                            id='user.settings.display.renderEmoticonsAsEmojiTitle'
+                            defaultMessage='Render emoticons as emojis'
+                        />
+                    }
+                    describe={
+                        this.props.renderEmoticonsAsEmoji === 'true' ? (
+                            <FormattedMessage
+                                id='user.settings.advance.on'
+                                defaultMessage='On'
+                            />
+                        ) : (
+                            <FormattedMessage
+                                id='user.settings.advance.off'
+                                defaultMessage='Off'
+                            />
+                        )
+                    }
+                    section='renderEmoticonsAsEmoji'
+                    updateSection={this.updateSection}
+                    max={(
+                        <RenderEmoticonsAsEmoji
+                            renderEmoticonsAsEmoji={this.props.renderEmoticonsAsEmoji}
+                            user={this.props.user}
+                            updateSection={this.updateSection}
+                            adminMode={this.props.adminMode}
+                            userPreferences={this.props.userPreferences}
+                        />
+                    )}
+                />
+                <div className='divider-dark'/>
+            </div>
+        );
+
         return (
             <div
                 id='displaySettings'
@@ -1187,6 +1229,7 @@ export default class UserSettingsDisplay extends React.PureComponent<Props, Stat
                     {clickToReply}
                     {channelDisplayModeSection}
                     {oneClickReactionsOnPostsSection}
+                    {renderEmoticonsAsEmojiSection}
                     {languagesSection}
                 </div>
             </div>
diff --git a/webapp/channels/src/i18n/en.json b/webapp/channels/src/i18n/en.json
index 510358dd37..ee6d2050ab 100644
--- a/webapp/channels/src/i18n/en.json
+++ b/webapp/channels/src/i18n/en.json
@@ -5903,6 +5903,8 @@
   "user.settings.display.oneClickReactionsOnPostsDescription": "When enabled, you can react quickly with recently used reactions when hovering over a message.",
   "user.settings.display.oneClickReactionsOnPostsTitle": "Quick reactions on messages",
   "user.settings.display.preferTime": "Select how you prefer time displayed.",
+  "user.settings.display.renderEmoticonsAsEmojiDesc": "When enabled, text emoticons in messages will automatically be rendered as emojis (For example :D as 😄)",
+  "user.settings.display.renderEmoticonsAsEmojiTitle": "Render emoticons as emojis",
   "user.settings.display.teammateNameDisplay": "This field is handled through your System Administrator. If you want to change it, you need to do so through your System Administrator.",
   "user.settings.display.teammateNameDisplayDescription": "Set how to display other user's names in posts and the Direct Messages list.",
   "user.settings.display.teammateNameDisplayFullname": "Show first and last name",
diff --git a/webapp/channels/src/packages/mattermost-redux/src/constants/preferences.ts b/webapp/channels/src/packages/mattermost-redux/src/constants/preferences.ts
index d8e84353e2..3f6e7ae905 100644
--- a/webapp/channels/src/packages/mattermost-redux/src/constants/preferences.ts
+++ b/webapp/channels/src/packages/mattermost-redux/src/constants/preferences.ts
@@ -48,6 +48,7 @@ const Preferences = {
     SHOW_UNREAD_SECTION: 'show_unread_section',
     CATEGORY_ADVANCED_SETTINGS: 'advanced_settings',
     ADVANCED_FILTER_JOIN_LEAVE: 'join_leave',
+    RENDER_EMOTICONS_AS_EMOJI: 'render_emoticons_as_emoji',
     ADVANCED_CODE_BLOCK_ON_CTRL_ENTER: 'code_block_ctrl_enter',
     ADVANCED_SEND_ON_CTRL_ENTER: 'send_on_ctrl_enter',
     ADVANCED_SYNC_DRAFTS: 'sync_drafts',
diff --git a/webapp/channels/src/utils/constants.tsx b/webapp/channels/src/utils/constants.tsx
index c58982c9f2..ad33c85134 100644
--- a/webapp/channels/src/utils/constants.tsx
+++ b/webapp/channels/src/utils/constants.tsx
@@ -91,6 +91,8 @@ export const Preferences = {
     CLICK_TO_REPLY: 'click_to_reply',
     CLICK_TO_REPLY_DEFAULT: 'true',
     COLLAPSED_REPLY_THREADS_FALLBACK_DEFAULT: 'off',
+    RENDER_EMOTICONS_AS_EMOJI: 'render_emoticons_as_emoji',
+    RENDER_EMOTICONS_AS_EMOJI_DEFAULT: 'true',
     LINK_PREVIEW_DISPLAY: 'link_previews',
     LINK_PREVIEW_DISPLAY_DEFAULT: 'true',
     COLLAPSE_DISPLAY: 'collapse_previews',
diff --git a/webapp/channels/src/utils/emoticons.test.tsx b/webapp/channels/src/utils/emoticons.test.tsx
index 53ff214d4c..3c27e3a2fd 100644
--- a/webapp/channels/src/utils/emoticons.test.tsx
+++ b/webapp/channels/src/utils/emoticons.test.tsx
@@ -92,6 +92,11 @@ describe('Emoticons', () => {
             expect(Emoticons.handleEmoticons('":P"', new Map())).
                 toEqual('"$MM_EMOTICON0$"');
         });
+
+        test('shouldn\'t render text-based emoticons as emoji when renderEmoticonsAsEmoji is false', () => {
+            expect(Emoticons.handleEmoticons('":P"', new Map(), false)).
+                toEqual('":P"');
+        });
     });
 
     describe('matchEmoticons', () => {
diff --git a/webapp/channels/src/utils/emoticons.tsx b/webapp/channels/src/utils/emoticons.tsx
index 51cdd5923f..d9446e4621 100644
--- a/webapp/channels/src/utils/emoticons.tsx
+++ b/webapp/channels/src/utils/emoticons.tsx
@@ -50,6 +50,7 @@ export function matchEmoticons(text: string): string[] | null {
 export function handleEmoticons(
     text: string,
     tokens: Map<string, {value: string; originalText: string}>,
+    renderEmoticonsAsEmoji = true,
 ): string {
     let output = text;
 
@@ -85,12 +86,14 @@ export function handleEmoticons(
     );
 
     // match text smilies like :D
-    for (const name of Object.keys(emoticonPatterns)) {
-        const pattern = emoticonPatterns[name];
+    if (renderEmoticonsAsEmoji) {
+        for (const name of Object.keys(emoticonPatterns)) {
+            const pattern = emoticonPatterns[name];
 
-        // this might look a bit funny, but since the name isn't contained in the actual match
-        // like with the named emoticons, we need to add it in manually
-        output = output.replace(pattern, (fullMatch, prefix, matchText) => replaceEmoticonWithToken(fullMatch, prefix, matchText, name));
+            // this might look a bit funny, but since the name isn't contained in the actual match
+            // like with the named emoticons, we need to add it in manually
+            output = output.replace(pattern, (fullMatch, prefix, matchText) => replaceEmoticonWithToken(fullMatch, prefix, matchText, name));
+        }
     }
 
     return output;
diff --git a/webapp/channels/src/utils/text_formatting.test.ts b/webapp/channels/src/utils/text_formatting.test.ts
index 494fb6c87d..2be600dded 100644
--- a/webapp/channels/src/utils/text_formatting.test.ts
+++ b/webapp/channels/src/utils/text_formatting.test.ts
@@ -90,6 +90,11 @@ describe('formatText', () => {
         }
     });
 
+    test('emoticons should not be rendered as emojis when renderEmoticonsAsEmoji is false', () => {
+        const output = formatText(':)', {renderEmoticonsAsEmoji: false}, emptyEmojiMap);
+        expect(output).toBe('<p>:)</p>');
+    });
+
     test('code blocks newlines are not converted into <br/> with inline markdown image in the post', () => {
         const output = formatText('```\nsome text\nsecond line\n```\n ![](https://example.com/image.png)', {}, emptyEmojiMap);
         expect(output).not.toContain('<br/>');
diff --git a/webapp/channels/src/utils/text_formatting.tsx b/webapp/channels/src/utils/text_formatting.tsx
index e1b5287253..02e7c827fd 100644
--- a/webapp/channels/src/utils/text_formatting.tsx
+++ b/webapp/channels/src/utils/text_formatting.tsx
@@ -230,6 +230,11 @@ export interface TextFormattingOptionsBase {
      * Defaults to `false`.
      */
     unsafeLinks: boolean;
+
+    /**
+     * Whether or not to render text emoticons (:D) as emojis
+     */
+    renderEmoticonsAsEmoji: boolean;
 }
 
 export type TextFormattingOptions = Partial<TextFormattingOptionsBase>;
@@ -258,6 +263,7 @@ const DEFAULT_OPTIONS: TextFormattingOptions = {
     editedAt: 0,
     postId: '',
     unsafeLinks: false,
+    renderEmoticonsAsEmoji: true,
 };
 
 /**
@@ -401,7 +407,7 @@ export function doFormatText(text: string, options: TextFormattingOptions, emoji
         output = autolinkHashtags(output, tokens, options.minimumHashtagLength);
 
         if (!('emoticons' in options) || options.emoticons) {
-            output = Emoticons.handleEmoticons(output, tokens);
+            output = Emoticons.handleEmoticons(output, tokens, options.renderEmoticonsAsEmoji);
         }
 
         if (options.searchPatterns) {