diff --git a/core/java/android/app/admin/DevicePolicyManager.java b/core/java/android/app/admin/DevicePolicyManager.java
index e9fb8110b4b21..59b59784b7807 100644
--- a/core/java/android/app/admin/DevicePolicyManager.java
+++ b/core/java/android/app/admin/DevicePolicyManager.java
@@ -9862,6 +9862,9 @@ public class DevicePolicyManager {
      *                                  profile owner of an organization-owned managed profile.
      * @throws IllegalArgumentException if called on the parent profile and the package
      *                                  provided is not a pre-installed system package.
+     * @throws IllegalStateException while trying to set default sms app on the profile and
+     *                             {@link ManagedSubscriptionsPolicy#TYPE_ALL_MANAGED_SUBSCRIPTIONS}
+     *                             policy is not set.
      */
     @RequiresPermission(value = MANAGE_DEVICE_POLICY_DEFAULT_SMS, conditional = true)
     public void setDefaultSmsApplication(@Nullable ComponentName admin,
diff --git a/services/devicepolicy/java/com/android/server/devicepolicy/DevicePolicyManagerService.java b/services/devicepolicy/java/com/android/server/devicepolicy/DevicePolicyManagerService.java
index 86e564ec59b72..9d84f8366a23d 100644
--- a/services/devicepolicy/java/com/android/server/devicepolicy/DevicePolicyManagerService.java
+++ b/services/devicepolicy/java/com/android/server/devicepolicy/DevicePolicyManagerService.java
@@ -11564,6 +11564,15 @@ public class DevicePolicyManagerService extends IDevicePolicyManager.Stub {
             Preconditions.checkCallAuthorization(isDefaultDeviceOwner(caller)
                     || isProfileOwnerOfOrganizationOwnedDevice(caller));
         }
+
+        if (!parent && isManagedProfile(caller.getUserId())
+                && getManagedSubscriptionsPolicy().getPolicyType()
+                != ManagedSubscriptionsPolicy.TYPE_ALL_MANAGED_SUBSCRIPTIONS) {
+            throw new IllegalStateException(
+                    "Default sms application can only be set on the profile, when "
+                            + "ManagedSubscriptions policy is set");
+        }
+
         if (parent) {
             userId = getProfileParentId(mInjector.userHandleGetCallingUserId());
             mInjector.binderWithCleanCallingIdentity(() -> enforcePackageIsSystemPackage(