diff --git a/webapp/channels/src/components/advanced_text_editor/use_post_box_indicator.test.tsx b/webapp/channels/src/components/advanced_text_editor/use_post_box_indicator.test.tsx
new file mode 100644
index 0000000000..4fd6a3c06c
--- /dev/null
+++ b/webapp/channels/src/components/advanced_text_editor/use_post_box_indicator.test.tsx
@@ -0,0 +1,115 @@
+// Copyright (c) 2015-present Mattermost, Inc. All Rights Reserved.
+// See LICENSE.txt for license information.
+
+import type {DeepPartial} from '@mattermost/types/utilities';
+
+import useTimePostBoxIndicator from 'components/advanced_text_editor/use_post_box_indicator';
+
+import {renderHookWithContext} from 'tests/react_testing_utils';
+
+import type {GlobalState} from 'types/store';
+
+function getBaseState(): DeepPartial<GlobalState> {
+    return {
+        entities: {
+            channels: {
+                channels: {
+                    dm_channel_id: {
+                        id: 'dm_channel_id',
+                        teammate_id: 'teammate_user_id',
+                        type: 'D',
+                        name: 'current_user_id__teammate_user_id',
+                    },
+                    bot_dm_channel_id: {
+                        id: 'bot_dm_channel_id',
+                        teammate_id: 'bot_user_id',
+                        type: 'D',
+                        name: 'current_user_id__bot_user_id',
+                    },
+                    unknown_dm_channel_id: {
+                        id: 'unknown_dm_channel_id',
+                        teammate_id: 'unknmown_teammate_user_id',
+                        type: 'D',
+                        name: 'current_user_id__teammate_user_id',
+                    },
+                },
+            },
+            users: {
+                currentUserId: 'current_user_id',
+                profiles: {
+                    teammate_user_id: {
+                        id: 'teammate_user_id',
+                        username: 'teammate_username',
+                        nickname: 'teammate_nickname',
+                        first_name: 'teammate_first_name',
+                        last_name: 'teammate_last_name',
+                        timezone: {
+                            useAutomaticTimezone: 'true',
+                            automaticTimezone: 'IST',
+                            manualTimezone: '',
+                        },
+                    },
+                    bot_user_id: {
+                        id: 'bot_user_id',
+                        username: 'bot_username',
+                        nickname: 'bot_nickname',
+                        first_name: 'bot_first_name',
+                        last_name: 'bot_last_name',
+                        is_bot: true,
+                        timezone: {
+                            useAutomaticTimezone: 'true',
+                            automaticTimezone: 'IST',
+                            manualTimezone: '',
+                        },
+                    },
+                },
+            },
+            general: {
+                config: {
+                    ScheduledPosts: 'true',
+                },
+                license: {
+                    IsLicensed: 'true',
+                },
+            },
+        },
+    };
+}
+
+describe('useTimePostBoxIndicator', () => {
+    it('should pass base case', () => {
+        const {result: {current}} = renderHookWithContext(() => useTimePostBoxIndicator('dm_channel_id'), getBaseState());
+
+        expect(current.isDM).toBe(true);
+        expect(current.showDndWarning).toBe(false);
+        expect(current.isSelfDM).toBe(false);
+        expect(current.isBot).toBe(false);
+        expect(current.isScheduledPostEnabled).toBe(true);
+        expect(current.teammateTimezone.useAutomaticTimezone).toBe(true);
+        expect(current.teammateTimezone.automaticTimezone).toBe('IST');
+    });
+
+    it('should work for DM with bots', () => {
+        const {result: {current}} = renderHookWithContext(() => useTimePostBoxIndicator('bot_dm_channel_id'), getBaseState());
+
+        expect(current.isDM).toBe(true);
+        expect(current.showDndWarning).toBe(false);
+        expect(current.isSelfDM).toBe(false);
+        expect(current.isBot).toBe(true);
+        expect(current.isScheduledPostEnabled).toBe(true);
+        expect(current.teammateTimezone.useAutomaticTimezone).toBe(true);
+        expect(current.teammateTimezone.automaticTimezone).toBe('IST');
+    });
+
+    it('should handle teammate not loaded', () => {
+        const {result: {current}} = renderHookWithContext(() => useTimePostBoxIndicator('unknown_dm_channel_id'), getBaseState());
+
+        expect(current.isDM).toBe(true);
+        expect(current.showDndWarning).toBe(false);
+        expect(current.isSelfDM).toBe(false);
+        expect(current.isBot).toBe(false);
+        expect(current.isScheduledPostEnabled).toBe(true);
+        expect(current.teammateTimezone.useAutomaticTimezone).toBe(true);
+        expect(current.teammateTimezone.automaticTimezone).toBe('IST');
+    });
+});
diff --git a/webapp/channels/src/components/advanced_text_editor/use_post_box_indicator.tsx b/webapp/channels/src/components/advanced_text_editor/use_post_box_indicator.tsx
index 0de15c3cfa..089bd2b4de 100644
--- a/webapp/channels/src/components/advanced_text_editor/use_post_box_indicator.tsx
+++ b/webapp/channels/src/components/advanced_text_editor/use_post_box_indicator.tsx
@@ -100,6 +100,7 @@ function useTimePostBoxIndicator(channelId: string) {
 
     const currentUserId = useSelector(getCurrentUserId);
     const isSelfDM = isDM && teammateId === currentUserId;
+    const isBot = Boolean(isDM && teammate?.is_bot);
 
     return {
         showRemoteUserHour,
@@ -112,7 +113,7 @@ function useTimePostBoxIndicator(channelId: string) {
         teammateId,
         teammateDisplayName,
         isSelfDM,
-        isBot: isDM && teammate.is_bot,
+        isBot,
     };
 }