diff --git a/sentry-android-core/src/main/java/io/sentry/android/core/AndroidOptionsInitializer.java b/sentry-android-core/src/main/java/io/sentry/android/core/AndroidOptionsInitializer.java
index 9cc5cb3df0..2a60e5750d 100644
--- a/sentry-android-core/src/main/java/io/sentry/android/core/AndroidOptionsInitializer.java
+++ b/sentry-android-core/src/main/java/io/sentry/android/core/AndroidOptionsInitializer.java
@@ -471,14 +471,6 @@ private static void readDefaultOptionValues(
         options.addInAppInclude(packageName);
       }
     }
-
-    if (options.getDistinctId() == null) {
-      try {
-        options.setDistinctId(Installation.id(context));
-      } catch (RuntimeException e) {
-        options.getLogger().log(SentryLevel.ERROR, "Could not generate distinct Id.", e);
-      }
-    }
   }
 
   /**
diff --git a/sentry-android-core/src/main/java/io/sentry/android/core/SentryAndroid.java b/sentry-android-core/src/main/java/io/sentry/android/core/SentryAndroid.java
index f27259fd63..150569dcec 100644
--- a/sentry-android-core/src/main/java/io/sentry/android/core/SentryAndroid.java
+++ b/sentry-android-core/src/main/java/io/sentry/android/core/SentryAndroid.java
@@ -149,6 +149,14 @@ public static void init(
                       "Error in the 'OptionsConfiguration.configure' callback.",
                       t);
             }
+            if (options.getDistinctId() == null
+                && options.getDataCollectionResolver().isUserInfoWithLegacyAlways()) {
+              try {
+                options.setDistinctId(Installation.id(context));
+              } catch (RuntimeException e) {
+                options.getLogger().log(SentryLevel.ERROR, "Could not generate distinct Id.", e);
+              }
+            }
 
             // if SentryPerformanceProvider was disabled or removed,
             // we set the app start / sdk init time here instead
diff --git a/sentry-android-core/src/test/java/io/sentry/android/core/AndroidOptionsInitializerTest.kt b/sentry-android-core/src/test/java/io/sentry/android/core/AndroidOptionsInitializerTest.kt
index f8724d286f..068b0964bc 100644
--- a/sentry-android-core/src/test/java/io/sentry/android/core/AndroidOptionsInitializerTest.kt
+++ b/sentry-android-core/src/test/java/io/sentry/android/core/AndroidOptionsInitializerTest.kt
@@ -111,6 +111,12 @@ class AndroidOptionsInitializerTest {
       )
 
       sentryOptions.configureOptions()
+      if (
+        sentryOptions.distinctId == null &&
+          sentryOptions.dataCollectionResolver.isUserInfoWithLegacyAlways
+      ) {
+        sentryOptions.distinctId = Installation.id(if (useRealContext) context else mockContext)
+      }
       AndroidOptionsInitializer.initializeIntegrationsAndProcessors(
         sentryOptions,
         if (useRealContext) context else mockContext,
@@ -349,6 +355,44 @@ class AndroidOptionsInitializerTest {
     installation.deleteOnExit()
   }
 
+  @Test
+  fun `init should not set generated distinct id when user info is disabled`() {
+    fixture.initSut(configureOptions = { dataCollection.setUserInfo(false) })
+
+    assertNull(fixture.sentryOptions.distinctId)
+  }
+
+  @Test
+  fun `init should set generated distinct id when user info is enabled`() {
+    fixture.initSut(configureOptions = { dataCollection.setUserInfo(true) })
+
+    assertNotNull(fixture.sentryOptions.distinctId)
+  }
+
+  @Test
+  fun `init should preserve explicit distinct id when user info is disabled`() {
+    fixture.initSut(
+      configureOptions = {
+        dataCollection.setUserInfo(false)
+        distinctId = "custom-id"
+      }
+    )
+
+    assertEquals("custom-id", fixture.sentryOptions.distinctId)
+  }
+
+  @Test
+  fun `init should set generated distinct id when explicit value is null`() {
+    fixture.initSut(
+      configureOptions = {
+        dataCollection.setUserInfo(true)
+        distinctId = null
+      }
+    )
+
+    assertNotNull(fixture.sentryOptions.distinctId)
+  }
+
   @Test
   fun `init should set proguard uuid id on start`() {
     fixture.initSut(