diff --git a/packages/server/src/utils/federationOutbox.ts b/packages/server/src/utils/federationOutbox.ts
index 64d9d7ec..9fe2bec2 100644
--- a/packages/server/src/utils/federationOutbox.ts
+++ b/packages/server/src/utils/federationOutbox.ts
@@ -151,24 +151,17 @@ export function queueOutboxEvent(
       ? peers.filter(p => targetPeerOrigins.includes(p.origin))
       : peers;
 
-    // For targeted origins with no existing peer record, create pending placeholders
-    // (only when autoAcceptPeering is enabled — otherwise the admin controls all peering)
+    // For targeted origins with no existing peer record, create pending placeholders.
+    // autoAcceptPeering controls INCOMING acceptance, not outgoing initiation —
+    // when a local user sends a DM requiring relay, the server creates the placeholder
+    // regardless of the setting. The peer/accept gate on the REMOTE side decides
+    // whether to accept or queue our request.
     if (targetPeerOrigins) {
-      const autoAcceptSettings = db
-        .select({ autoAcceptPeering: schema.instanceSettings.autoAcceptPeering })
-        .from(schema.instanceSettings)
-        .where(eq(schema.instanceSettings.id, 1))
-        .get();
-      const autoAcceptPeering = (autoAcceptSettings?.autoAcceptPeering ?? 1) === 1;
-
       const matchedOrigins = new Set(matchedPeers.map(p => p.origin));
 
       for (const origin of targetPeerOrigins) {
         if (matchedOrigins.has(origin)) continue;
 
-        // Don't auto-create placeholders when autoAcceptPeering is off
-        if (!autoAcceptPeering) continue;
-
         // Check if there's a rejected/revoked peer we should skip
         const existingPeer = db
           .select({ status: schema.federationPeers.status })
diff --git a/packages/server/src/utils/federationPeering.ts b/packages/server/src/utils/federationPeering.ts
index aa3de186..1fc49761 100644
--- a/packages/server/src/utils/federationPeering.ts
+++ b/packages/server/src/utils/federationPeering.ts
@@ -80,22 +80,6 @@ export async function ensurePeered(origin: string): Promise<EnsurePeeredResult>
     }
   }
 
-  // When autoAcceptPeering is disabled, don't auto-initiate new peering.
-  // The admin's intent is "I control all peering" — both incoming (gated by
-  // peer/accept) and outgoing auto-initiation (gated here). Only the admin
-  // peer/initiate endpoint and the approval-request approve endpoint bypass
-  // this check because those represent explicit admin action.
-  if (!existing) {
-    const settings = db
-      .select({ autoAcceptPeering: schema.instanceSettings.autoAcceptPeering })
-      .from(schema.instanceSettings)
-      .where(eq(schema.instanceSettings.id, 1))
-      .get();
-    if ((settings?.autoAcceptPeering ?? 1) === 0) {
-      return { status: 'failed', error: 'Auto-peering is disabled on this instance — an admin must initiate peering manually' };
-    }
-  }
-
   // Deduplicate: if a handshake is already in flight, share the promise
   const inflight = inFlightPeering.get(normalized);
   if (inflight) {