diff --git a/server/src/main/java/org/opensearch/index/SegmentReplicationPressureService.java b/server/src/main/java/org/opensearch/index/SegmentReplicationPressureService.java
index d9d480e7b2b27..ce38dd3bb236c 100644
--- a/server/src/main/java/org/opensearch/index/SegmentReplicationPressureService.java
+++ b/server/src/main/java/org/opensearch/index/SegmentReplicationPressureService.java
@@ -98,7 +98,7 @@ public class SegmentReplicationPressureService implements Closeable {
     private final SegmentReplicationStatsTracker tracker;
     private final ShardStateAction shardStateAction;
 
-    private final AsyncFailStaleReplicaTask failStaleReplicaTask;
+    private volatile AsyncFailStaleReplicaTask failStaleReplicaTask;
 
     @Inject
     public SegmentReplicationPressureService(
@@ -202,6 +202,15 @@ public void setMaxAllowedStaleReplicas(double maxAllowedStaleReplicas) {
 
     public void setReplicationTimeLimitFailReplica(TimeValue replicationTimeLimitFailReplica) {
         this.replicationTimeLimitFailReplica = replicationTimeLimitFailReplica;
+        updateAsyncFailReplicaTask();
+    }
+
+    private synchronized void updateAsyncFailReplicaTask() {
+        try {
+            failStaleReplicaTask.close();
+        } finally {
+            failStaleReplicaTask = new AsyncFailStaleReplicaTask(this);
+        }
     }
 
     public void setReplicationTimeLimitBackpressure(TimeValue replicationTimeLimitBackpressure) {
@@ -228,13 +237,13 @@ final static class AsyncFailStaleReplicaTask extends AbstractAsyncTask {
 
         @Override
         protected boolean mustReschedule() {
-            return true;
+            return pressureService.shouldScheduleAsyncFailTask();
         }
 
         @Override
         protected void runInternal() {
             // Do not fail the replicas if time limit is set to 0 (i.e. disabled).
-            if (TimeValue.ZERO.equals(pressureService.replicationTimeLimitFailReplica) == false) {
+            if (pressureService.shouldScheduleAsyncFailTask()) {
                 final SegmentReplicationStats stats = pressureService.tracker.getStats();
 
                 // Find the shardId in node which is having stale replicas with highest current replication time.
@@ -302,4 +311,8 @@ public String toString() {
 
     }
 
+    boolean shouldScheduleAsyncFailTask() {
+        return TimeValue.ZERO.equals(replicationTimeLimitFailReplica) == false;
+    }
+
 }
diff --git a/server/src/test/java/org/opensearch/index/SegmentReplicationPressureServiceTests.java b/server/src/test/java/org/opensearch/index/SegmentReplicationPressureServiceTests.java
index 478fdcb24f76a..a9725f638cc53 100644
--- a/server/src/test/java/org/opensearch/index/SegmentReplicationPressureServiceTests.java
+++ b/server/src/test/java/org/opensearch/index/SegmentReplicationPressureServiceTests.java
@@ -217,6 +217,8 @@ public void testFailStaleReplicaTask() throws Exception {
             assertEquals(5, shardStats.getCheckpointsBehindCount());
 
             // call the background task
+            assertTrue(service.getFailStaleReplicaTask().mustReschedule());
+            assertTrue(service.getFailStaleReplicaTask().isScheduled());
             service.getFailStaleReplicaTask().runInternal();
 
             // verify that remote shard failed method is called which fails the replica shards falling behind.
@@ -257,6 +259,41 @@ public void testFailStaleReplicaTaskDisabled() throws Exception {
         }
     }
 
+    public void testFailStaleReplicaTaskToggleOnOff() throws Exception {
+        final Settings settings = Settings.builder()
+            .put(IndexMetadata.SETTING_REPLICATION_TYPE, ReplicationType.SEGMENT)
+            .put(SEGMENT_REPLICATION_INDEXING_PRESSURE_ENABLED.getKey(), true)
+            .put(MAX_REPLICATION_TIME_BACKPRESSURE_SETTING.getKey(), TimeValue.timeValueMillis(10))
+            .put(MAX_REPLICATION_LIMIT_STALE_REPLICA_SETTING.getKey(), TimeValue.timeValueMillis(1))
+            .build();
+
+        try (ReplicationGroup shards = createGroup(1, settings, new NRTReplicationEngineFactory())) {
+            shards.startAll();
+            final IndexShard primaryShard = shards.getPrimary();
+            SegmentReplicationPressureService service = buildPressureService(settings, primaryShard);
+
+            // index docs in batches without refreshing
+            indexInBatches(5, shards, primaryShard);
+
+            // assert that replica shard is few checkpoints behind primary
+            Set<SegmentReplicationShardStats> replicationStats = primaryShard.getReplicationStatsForTrackedReplicas();
+            assertEquals(1, replicationStats.size());
+            SegmentReplicationShardStats shardStats = replicationStats.stream().findFirst().get();
+            assertEquals(5, shardStats.getCheckpointsBehindCount());
+
+            assertTrue(service.getFailStaleReplicaTask().mustReschedule());
+            assertTrue(service.getFailStaleReplicaTask().isScheduled());
+            replicateSegments(primaryShard, shards.getReplicas());
+
+            service.setReplicationTimeLimitFailReplica(TimeValue.ZERO);
+            assertFalse(service.getFailStaleReplicaTask().mustReschedule());
+            assertFalse(service.getFailStaleReplicaTask().isScheduled());
+            service.setReplicationTimeLimitFailReplica(TimeValue.timeValueMillis(1));
+            assertTrue(service.getFailStaleReplicaTask().mustReschedule());
+            assertTrue(service.getFailStaleReplicaTask().isScheduled());
+        }
+    }
+
     private int indexInBatches(int count, ReplicationGroup shards, IndexShard primaryShard) throws Exception {
         int totalDocs = 0;
         for (int i = 0; i < count; i++) {