diff --git a/packages/client/src/components/dialogs/CreateEditRoomDialog/sub-components/VirtualDataRoomBlock.js b/packages/client/src/components/dialogs/CreateEditRoomDialog/sub-components/VirtualDataRoomBlock.js
index ca8f15d4fb..da5fe16a21 100644
--- a/packages/client/src/components/dialogs/CreateEditRoomDialog/sub-components/VirtualDataRoomBlock.js
+++ b/packages/client/src/components/dialogs/CreateEditRoomDialog/sub-components/VirtualDataRoomBlock.js
@@ -72,14 +72,17 @@ const VirtualDataRoomBlock = ({
   t,
   roomParams,
   setRoomParams,
-  isEdit,
-  isWatermarks,
+  isEdit = false,
+  isWatermarks = false,
+  setWatermarks,
 }) => {
   const role = t("Translations:RoleViewer");
 
   const [fileLifetimeChecked, setFileLifetimeChecked] = useState(false);
   const [copyAndDownloadChecked, setCopyAndDownloadChecked] = useState(false);
-  const [watermarksChecked, setWatermarksChecked] = useState(isWatermarks);
+  const [watermarksChecked, setWatermarksChecked] = useState(
+    isWatermarks && isEdit,
+  );
 
   const onChangeAutomaticIndexing = () => {
     setRoomParams({ ...roomParams, indexing: !roomParams.indexing });
@@ -95,6 +98,8 @@ const VirtualDataRoomBlock = ({
 
   const onChangeAddWatermarksToDocuments = () => {
     setWatermarksChecked(!watermarksChecked);
+
+    setWatermarks({ enabled: !watermarksChecked });
   };
 
   return (
@@ -141,9 +146,10 @@ const VirtualDataRoomBlock = ({
 };
 
 export default inject(({ createEditRoomStore }) => {
-  const { watermarksSettings } = createEditRoomStore;
+  const { watermarksSettings, setWatermarks } = createEditRoomStore;
 
   return {
+    setWatermarks,
     isWatermarks: watermarksSettings?.enabled,
   };
 })(observer(VirtualDataRoomBlock));
diff --git a/packages/client/src/components/dialogs/CreateEditRoomDialog/sub-components/Watermarks/index.js b/packages/client/src/components/dialogs/CreateEditRoomDialog/sub-components/Watermarks/index.js
index 11280b2cfd..f0b00100a0 100644
--- a/packages/client/src/components/dialogs/CreateEditRoomDialog/sub-components/Watermarks/index.js
+++ b/packages/client/src/components/dialogs/CreateEditRoomDialog/sub-components/Watermarks/index.js
@@ -81,24 +81,27 @@ const tabsOptions = (t) => [
   },
 ];
 
-const getInitialTabs = (additions, t) => {
+const getInitialTabs = (additions, isEdit, t) => {
   const dataTabs = tabsOptions(t);
 
-  if (!additions) return [dataTabs[0]];
+  if (!isEdit || !additions) return [dataTabs[0]];
 
   return dataTabs.filter((item) => additions & WatermarkAdditions[item.key]);
 };
 
-const getInitialRotate = (rotate, t) => {
+const getInitialRotate = (rotate, isEdit, t) => {
   const dataRotate = rotateOptions(t);
 
-  if (rotate === undefined) return dataRotate[0];
+  if (!isEdit || rotate === undefined) return dataRotate[0];
 
   return dataRotate.find((item) => {
     return item.key === rotate;
   });
 };
 
+const getInitialText = (text, isEdit) => {
+  return isEdit && text ? text : "";
+};
 const Watermarks = ({ setWatermarks, watermarksSettings, isEdit }) => {
   const { t } = useTranslation(["CreateEditRoomDialog", "Common"]);
   const [type, setType] = useState(viewerInfoWatermark);
@@ -109,8 +112,9 @@ const Watermarks = ({ setWatermarks, watermarksSettings, isEdit }) => {
     initialInfo.current = {
       dataRotate: rotateOptions(t),
       dataTabs: tabsOptions(t),
-      initialRotate: getInitialRotate(watermarksSettings?.rotate, t),
-      initialTabs: getInitialTabs(watermarksSettings?.additions, t),
+      initialRotate: getInitialRotate(watermarksSettings?.rotate, isEdit, t),
+      initialTabs: getInitialTabs(watermarksSettings?.additions, isEdit, t),
+      initialText: getInitialText(watermarksSettings?.text, isEdit),
     };
   }
 
@@ -118,14 +122,16 @@ const Watermarks = ({ setWatermarks, watermarksSettings, isEdit }) => {
 
   useEffect(() => {
     if (!isEdit) {
-      setWatermarks({
-        rotate: initialInfoRef.initialRotate.key,
-        text: "",
-        additions: WatermarkAdditions.UserName,
-      });
+      setWatermarks(
+        {
+          rotate: initialInfoRef.initialRotate.key,
+          text: "",
+          additions: WatermarkAdditions.UserName,
+          enabled: true,
+        },
+        true,
+      );
     }
-
-    return () => setWatermarks(null);
   }, []);
 
   const onSelectType = (e) => {
@@ -156,7 +162,7 @@ const Watermarks = ({ setWatermarks, watermarksSettings, isEdit }) => {
           dataPosition={initialInfoRef.dataRotate}
           dataTabs={initialInfoRef.dataTabs}
           initialTab={initialInfoRef.initialTabs}
-          initialText={watermarksSettings?.text}
+          initialText={initialInfoRef.initialText}
         />
       )}
     </StyledBody>
diff --git a/packages/client/src/store/CreateEditRoomStore.js b/packages/client/src/store/CreateEditRoomStore.js
index 26c2bd391f..ffb84f78cb 100644
--- a/packages/client/src/store/CreateEditRoomStore.js
+++ b/packages/client/src/store/CreateEditRoomStore.js
@@ -97,12 +97,9 @@ class CreateEditRoomStore {
 
   setWatermarks = (watermarksSettings, isInit = false) => {
     if (isInit) {
-      this.initialWatermarksSettings = {
-        ...watermarksSettings,
-        enabled: true,
-      };
+      this.initialWatermarksSettings = watermarksSettings;
+      this.watermarksSettings = watermarksSettings;
 
-      this.watermarksSettings = this.initialWatermarksSettings;
       return;
     }
 
@@ -118,7 +115,6 @@ class CreateEditRoomStore {
   };
 
   isEqualWatermarkChanges = () => {
-   
     return isEqual(this.watermarksSettings, this.initialWatermarksSettings);
   };