diff --git a/disnake/app_commands.py b/disnake/app_commands.py
index ad49f17664..26738f9fb8 100644
--- a/disnake/app_commands.py
+++ b/disnake/app_commands.py
@@ -561,8 +561,7 @@ def __init__(
         self.name_localizations: LocalizationValue = name_loc.localizations
         self.nsfw: bool = False if nsfw is None else nsfw
 
-        # TODO: turn this into a property based on `1 in self.contexts` instead, stop sending dm_permission
-        self.dm_permission: bool = True if dm_permission is None else dm_permission
+        self._dm_permission: Optional[bool] = dm_permission
 
         self._default_member_permissions: Optional[int]
         if default_member_permissions is None:
@@ -603,6 +602,19 @@ def default_member_permissions(self) -> Optional[Permissions]:
             return None
         return Permissions(self._default_member_permissions)
 
+    @property
+    def dm_permission(self):
+        # check if contexts are in use at all
+        if self.contexts:
+            return InteractionContextType.bot_dm in self.contexts
+
+        return self._dm_permission
+
+    @dm_permission.setter
+    def dm_permission(self, value: bool) -> None:
+        # todo: add a deprecation warning here
+        self._dm_permission = value
+
     def __repr__(self) -> str:
         attrs = " ".join(f"{key}={getattr(self, key)!r}" for key in self.__repr_info__)
         return f"<{type(self).__name__} {attrs}>"
@@ -641,7 +653,6 @@ def to_dict(self) -> EditApplicationCommandPayload:
                 if self._default_member_permissions is not None
                 else None
             ),
-            "dm_permission": self.dm_permission,
             "default_permission": True,
             "nsfw": self.nsfw,
             "integration_types": (
@@ -657,6 +668,9 @@ def to_dict(self) -> EditApplicationCommandPayload:
         if (loc := self.name_localizations.data) is not None:
             data["name_localizations"] = loc
 
+        if not self.contexts and self.dm_permission is not None:
+            data["dm_permission"] = self.dm_permission
+
         return data
 
     def localize(self, store: LocalizationProtocol) -> None: