diff --git a/disnake/app_commands.py b/disnake/app_commands.py
index e3ba692319..38d83a0ca7 100644
--- a/disnake/app_commands.py
+++ b/disnake/app_commands.py
@@ -675,10 +675,15 @@ def _install_types_with_default(self) -> Optional[ApplicationInstallTypes]:
 
     @property
     def _contexts_with_default(self) -> Optional[InteractionContextTypes]:
-        # (same logic as `_install_types_with_default`, but without a fallback for contexts)
-        if self.contexts is None and not isinstance(self, _APIApplicationCommandMixin):
-            if self._default_contexts is not None:
-                return self._default_contexts
+        # (basically the same logic as `_install_types_with_default`, but without a fallback)
+        if (
+            self.contexts is None
+            and not isinstance(self, _APIApplicationCommandMixin)
+            and self._default_contexts is not None
+            # only use default if legacy `dm_permission` wasn't set
+            and self._dm_permission is None
+        ):
+            return self._default_contexts
 
         return self.contexts
 
diff --git a/tests/ext/commands/test_base_core.py b/tests/ext/commands/test_base_core.py
index 045de1e220..ac6b5ee93b 100644
--- a/tests/ext/commands/test_base_core.py
+++ b/tests/ext/commands/test_base_core.py
@@ -1,5 +1,7 @@
 # SPDX-License-Identifier: MIT
 
+import warnings
+
 import pytest
 
 import disnake
@@ -131,6 +133,7 @@ async def c(inter) -> None:
             ...
 
         assert c.body.to_dict().get("contexts") == [1]
+        assert "dm_permission" not in c.body.to_dict()
 
     def test_decorator_override(self, bot: commands.InteractionBot) -> None:
         @commands.contexts(private_channel=True)
@@ -147,6 +150,17 @@ async def c(inter: disnake.GuildCommandInteraction) -> None:
 
         assert c.body.to_dict().get("contexts") == [0]
 
+    def test_dm_permission(self, bot: commands.InteractionBot) -> None:
+        with warnings.catch_warnings(record=True):
+
+            @bot.slash_command(dm_permission=False)
+            async def c(inter) -> None:
+                ...
+
+        # if dm_permission was set, the `contexts` default shouldn't apply
+        assert c.body.to_dict().get("contexts") is None
+        assert c.body.to_dict().get("dm_permission") is False
+
 
 def test_localization_copy() -> None:
     class Cog(commands.Cog):