diff --git a/CRM/Admin/Form/MailSettings.php b/CRM/Admin/Form/MailSettings.php
index 4de49fe41356..3ec4e11d0a52 100644
--- a/CRM/Admin/Form/MailSettings.php
+++ b/CRM/Admin/Form/MailSettings.php
@@ -70,6 +70,8 @@ public function buildQuickForm() {
     ];
     $this->add('select', 'is_default', ts('Used For?'), $usedfor);
     $this->addField('activity_status', ['placeholder' => FALSE]);
+
+    $this->add('checkbox', 'is_contact_creation_disabled_if_no_match', ts('Do not create new contacts when filing emails'));
   }
 
   /**
@@ -146,6 +148,7 @@ public function postProcess() {
       'is_ssl',
       'is_default',
       'activity_status',
+      'is_contact_creation_disabled_if_no_match',
     ];
 
     $params = [];
@@ -153,6 +156,7 @@ public function postProcess() {
       if (in_array($f, [
         'is_default',
         'is_ssl',
+        'is_contact_creation_disabled_if_no_match',
       ])) {
         $params[$f] = CRM_Utils_Array::value($f, $formValues, FALSE);
       }
diff --git a/CRM/Upgrade/Incremental/sql/5.30.0.mysql.tpl b/CRM/Upgrade/Incremental/sql/5.30.0.mysql.tpl
new file mode 100644
index 000000000000..1f4bdf572111
--- /dev/null
+++ b/CRM/Upgrade/Incremental/sql/5.30.0.mysql.tpl
@@ -0,0 +1,4 @@
+{* file to handle db changes in 5.30.0 during upgrade *}
+
+ALTER TABLE civicrm_mail_settings
+ADD is_contact_creation_disabled_if_no_match TINYINT default 0 not null comment 'If this option is enabled, CiviCRM will not create new contacts when filing emails';
diff --git a/CRM/Utils/Mail/EmailProcessor.php b/CRM/Utils/Mail/EmailProcessor.php
index 9d68310b9dfe..8721c943fdce 100644
--- a/CRM/Utils/Mail/EmailProcessor.php
+++ b/CRM/Utils/Mail/EmailProcessor.php
@@ -157,7 +157,7 @@ public static function _process($civiMail, $dao, $is_create_activities) {
     try {
       $store = CRM_Mailing_MailStore::getStore($dao->name);
     }
-    catch (Exception$e) {
+    catch (Exception $e) {
       $message = ts('Could not connect to MailStore for ') . $dao->username . '@' . $dao->server . '<p>';
       $message .= ts('Error message: ');
       $message .= '<pre>' . $e->getMessage() . '</pre><p>';
@@ -226,7 +226,8 @@ public static function _process($civiMail, $dao, $is_create_activities) {
         if ($usedfor == 0 || $is_create_activities) {
           // if its the activities that needs to be processed ..
           try {
-            $mailParams = CRM_Utils_Mail_Incoming::parseMailingObject($mail);
+            $createContact = !($dao->is_contact_creation_disabled_if_no_match ?? FALSE);
+            $mailParams = CRM_Utils_Mail_Incoming::parseMailingObject($mail, $createContact, FALSE);
           }
           catch (Exception $e) {
             echo $e->getMessage();
@@ -241,16 +242,20 @@ public static function _process($civiMail, $dao, $is_create_activities) {
           if (!empty($dao->activity_status)) {
             $params['status_id'] = $dao->activity_status;
           }
-          $result = civicrm_api('activity', 'create', $params);
 
-          if ($result['is_error']) {
-            $matches = FALSE;
-            echo "Failed Processing: {$mail->subject}. Reason: {$result['error_message']}\n";
-          }
-          else {
-            $matches = TRUE;
-            CRM_Utils_Hook::emailProcessor('activity', $params, $mail, $result);
-            echo "Processed as Activity: {$mail->subject}\n";
+          // Create activity if its not empty.
+          if (!empty($params['subject']) || !empty($params['target_contact_id'])) {
+            $result = civicrm_api('activity', 'create', $params);
+
+            if ($result['is_error']) {
+              $matches = FALSE;
+              echo "Failed Processing: {$mail->subject}. Reason: {$result['error_message']}\n";
+            }
+            else {
+              $matches = TRUE;
+              CRM_Utils_Hook::emailProcessor('activity', $params, $mail, $result);
+              echo "Processed as Activity: {$mail->subject}\n";
+            }
           }
         }
 
diff --git a/CRM/Utils/Mail/Incoming.php b/CRM/Utils/Mail/Incoming.php
index 1e2da042236b..a11961081250 100644
--- a/CRM/Utils/Mail/Incoming.php
+++ b/CRM/Utils/Mail/Incoming.php
@@ -322,10 +322,12 @@ public function &parse(&$file) {
 
   /**
    * @param $mail
+   * @param $createContact
+   * @param $requireContact
    *
    * @return array
    */
-  public static function parseMailingObject(&$mail) {
+  public static function parseMailingObject(&$mail, $createContact = TRUE, $requireContact = TRUE) {
 
     $config = CRM_Core_Config::singleton();
 
@@ -342,18 +344,18 @@ public static function parseMailingObject(&$mail) {
     }
 
     $params['from'] = [];
-    self::parseAddress($mail->from, $field, $params['from'], $mail);
+    self::parseAddress($mail->from, $field, $params['from'], $mail, $createContact);
 
     // we definitely need a contact id for the from address
     // if we dont have one, skip this email
-    if (empty($params['from']['id'])) {
+    if ($requireContact && empty($params['from']['id'])) {
       return NULL;
     }
 
     $emailFields = ['to', 'cc', 'bcc'];
     foreach ($emailFields as $field) {
       $value = $mail->$field;
-      self::parseAddresses($value, $field, $params, $mail);
+      self::parseAddresses($value, $field, $params, $mail, $createContact);
     }
 
     // define other parameters
@@ -396,8 +398,9 @@ public static function parseMailingObject(&$mail) {
    * @param array $params
    * @param $subParam
    * @param $mail
+   * @param $createContact
    */
-  public static function parseAddress(&$address, &$params, &$subParam, &$mail) {
+  public static function parseAddress(&$address, &$params, &$subParam, &$mail, $createContact = TRUE) {
     // CRM-9484
     if (empty($address->email)) {
       return;
@@ -408,7 +411,7 @@ public static function parseAddress(&$address, &$params, &$subParam, &$mail) {
 
     $contactID = self::getContactID($subParam['email'],
       $subParam['name'],
-      TRUE,
+      $createContact,
       $mail
     );
     $subParam['id'] = $contactID ? $contactID : NULL;
@@ -419,13 +422,14 @@ public static function parseAddress(&$address, &$params, &$subParam, &$mail) {
    * @param $token
    * @param array $params
    * @param $mail
+   * @param $createContact
    */
-  public static function parseAddresses(&$addresses, $token, &$params, &$mail) {
+  public static function parseAddresses(&$addresses, $token, &$params, &$mail, $createContact = TRUE) {
     $params[$token] = [];
 
     foreach ($addresses as $address) {
       $subParam = [];
-      self::parseAddress($address, $params, $subParam, $mail);
+      self::parseAddress($address, $params, $subParam, $mail, $createContact);
       $params[$token][] = $subParam;
     }
   }
diff --git a/templates/CRM/Admin/Form/MailSettings.tpl b/templates/CRM/Admin/Form/MailSettings.tpl
index 361ffe09e187..9185c54a18a9 100644
--- a/templates/CRM/Admin/Form/MailSettings.tpl
+++ b/templates/CRM/Admin/Form/MailSettings.tpl
@@ -9,62 +9,71 @@
 *}
 {* this template is used for adding/editing email settings.  *}
 <div class="crm-block crm-form-block crm-mail-settings-form-block">
-<div class="crm-submit-buttons">{include file="CRM/common/formButtons.tpl" location="top"}</div>
-{if $action eq 8}
-  <div class="messages status no-popup">
+  <div class="crm-submit-buttons">{include file="CRM/common/formButtons.tpl" location="top"}</div>
+  {if $action eq 8}
+    <div class="messages status no-popup">
       {icon icon="fa-info-circle"}{/icon}
-  {ts}WARNING: Deleting this option will result in the loss of mail settings data.{/ts} {ts}Do you want to continue?{/ts}
-  </div>
+      {ts}WARNING: Deleting this option will result in the loss of mail settings data.{/ts} {ts}Do you want to continue?{/ts}
+    </div>
     <div class="crm-submit-buttons">{include file="CRM/common/formButtons.tpl" location="top"}</div>
-{else}
+  {else}
     <table class="form-layout-compressed">
 
-  <tr class="crm-mail-settings-form-block-name"><td class="label">{$form.name.label}</td><td>{$form.name.html}</td></tr>
-  <tr><td class="label">&nbsp;</td><td class="description">{ts}Name of this group of settings.{/ts}</td></tr>
+      <tr class="crm-mail-settings-form-block-name"><td class="label">{$form.name.label}</td><td>{$form.name.html}</td></tr>
+      <tr><td class="label">&nbsp;</td><td class="description">{ts}Name of this group of settings.{/ts}</td></tr>
 
-  <tr class="crm-mail-settings-form-block-server"><td class="label">{$form.server.label}</td><td>{$form.server.html}</td></tr>
-  <tr><td class="label">&nbsp;</td><td class="description">{ts}Name or IP address of mail server machine.{/ts}</td></tr>
+      <tr class="crm-mail-settings-form-block-server"><td class="label">{$form.server.label}</td><td>{$form.server.html}</td></tr>
+      <tr><td class="label">&nbsp;</td><td class="description">{ts}Name or IP address of mail server machine.{/ts}</td></tr>
 
-  <tr class="crm-mail-settings-form-block-username"><td class="label">{$form.username.label}</td><td>{$form.username.html}</td></tr>
-  <tr><td class="label">&nbsp;</td><td class="description">{ts}Username to use when polling (for IMAP and POP3).{/ts}</td></tr>
+      <tr class="crm-mail-settings-form-block-username"><td class="label">{$form.username.label}</td><td>{$form.username.html}</td></tr>
+      <tr><td class="label">&nbsp;</td><td class="description">{ts}Username to use when polling (for IMAP and POP3).{/ts}</td></tr>
 
-  <tr class="crm-mail-settings-form-block-password"><td class="label">{$form.password.label}</td><td>{$form.password.html}</td></tr>
-  <tr><td class="label">&nbsp;</td><td class="description">{ts}Password to use when polling (for IMAP and POP3).{/ts}</td></tr>
+      <tr class="crm-mail-settings-form-block-password"><td class="label">{$form.password.label}</td><td>{$form.password.html}</td></tr>
+      <tr><td class="label">&nbsp;</td><td class="description">{ts}Password to use when polling (for IMAP and POP3).{/ts}</td></tr>
 
-  <tr class="crm-mail-settings-form-block-localpart"><td class="label">{$form.localpart.label}</td><td>{$form.localpart.html}</td></tr>
-  <tr><td class="label">&nbsp;</td><td class="description">{ts}Optional local part (e.g., 'civimail+' for addresses like civimail+s.1.2@example.com).{/ts}</td></tr>
+      <tr class="crm-mail-settings-form-block-localpart"><td class="label">{$form.localpart.label}</td><td>{$form.localpart.html}</td></tr>
+      <tr><td class="label">&nbsp;</td><td class="description">{ts}Optional local part (e.g., 'civimail+' for addresses like civimail+s.1.2@example.com).{/ts}</td></tr>
 
-  <tr class="crm-mail-settings-form-block-domain"><td class="label">{$form.domain.label}</td><td>{$form.domain.html}</td></tr>
-  <tr><td class="label">&nbsp;</td><td class="description">{ts}Email address domain (the part after @).{/ts}</td></tr>
+      <tr class="crm-mail-settings-form-block-domain"><td class="label">{$form.domain.label}</td><td>{$form.domain.html}</td></tr>
+      <tr><td class="label">&nbsp;</td><td class="description">{ts}Email address domain (the part after @).{/ts}</td></tr>
 
-  <tr class="crm-mail-settings-form-block-return_path"><td class="label">{$form.return_path.label}</td><td>{$form.return_path.html}</td><tr>
-        <tr><td class="label">&nbsp;</td><td class="description">{ts}Contents of the Return-Path header.{/ts}</td></tr>
+      <tr class="crm-mail-settings-form-block-return_path"><td class="label">{$form.return_path.label}</td><td>{$form.return_path.html}</td><tr>
+      <tr><td class="label">&nbsp;</td><td class="description">{ts}Contents of the Return-Path header.{/ts}</td></tr>
 
-  <tr class="crm-mail-settings-form-block-protocol"><td class="label">{$form.protocol.label}</td><td>{$form.protocol.html}</td></tr>
-  <tr><td class="label">&nbsp;</td><td class="description">{ts}Name of the protocol to use for polling.{/ts}</td></tr>
+      <tr class="crm-mail-settings-form-block-protocol"><td class="label">{$form.protocol.label}</td><td>{$form.protocol.html}</td></tr>
+      <tr><td class="label">&nbsp;</td><td class="description">{ts}Name of the protocol to use for polling.{/ts}</td></tr>
 
-  <tr class="crm-mail-settings-form-block-source"><td class="label">{$form.source.label}</td><td>{$form.source.html}</td></tr>
-  <tr><td class="label">&nbsp;</td><td class="description">{ts}Folder to poll from when using IMAP (will default to INBOX when empty), path to poll from when using Maildir, etc..{/ts}</td></tr>
+      <tr class="crm-mail-settings-form-block-source"><td class="label">{$form.source.label}</td><td>{$form.source.html}</td></tr>
+      <tr><td class="label">&nbsp;</td><td class="description">{ts}Folder to poll from when using IMAP (will default to INBOX when empty), path to poll from when using Maildir, etc..{/ts}</td></tr>
 
-  <tr class="crm-mail-settings-form-block-is_ssl"><td class="label">{$form.is_ssl.label}</td><td>{$form.is_ssl.html}</td></tr>
-  <tr><td class="label">&nbsp;</td><td class="description">{ts}Whether to use SSL for IMAP and POP3 or not.{/ts}</td></tr>
+      <tr class="crm-mail-settings-form-block-is_ssl"><td class="label">{$form.is_ssl.label}</td><td>{$form.is_ssl.html}</td></tr>
+      <tr><td class="label">&nbsp;</td><td class="description">{ts}Whether to use SSL for IMAP and POP3 or not.{/ts}</td></tr>
 
-  <tr class="crm-mail-settings-form-block-is_default"><td class="label">{$form.is_default.label}</td><td>{$form.is_default.html}</td></tr>
-  <tr><td class="label">&nbsp;</td><td class="description">{ts}How this mail account will be used. Only one box may be used for bounce processing. It will also be used as the envelope email when sending mass mailings.{/ts}</td></tr>
+      <tr class="crm-mail-settings-form-block-is_default"><td class="label">{$form.is_default.label}</td><td>{$form.is_default.html}</td></tr>
+      <tr><td class="label">&nbsp;</td><td class="description">{ts}How this mail account will be used. Only one box may be used for bounce processing. It will also be used as the envelope email when sending mass mailings.{/ts}</td></tr>
 
-  <tr class="crm-mail-settings-form-block-activity_status"><td class="label">{$form.activity_status.label}</td><td>{$form.activity_status.html}</td></tr>
+      <tr class="crm-mail-settings-form-block-is_contact_creation_disabled_if_no_match"><td class="label">&nbsp;</td><td>{$form.is_contact_creation_disabled_if_no_match.html}{$form.is_contact_creation_disabled_if_no_match.label}</td></tr>
+
+      <tr class="crm-mail-settings-form-block-activity_status"><td class="label">&nbsp;</td><td>{$form.activity_status.label}<div>{$form.activity_status.html}</div></td></tr>
     </table>
-  <div class="crm-submit-buttons">{include file="CRM/common/formButtons.tpl" location="bottom"}</div>
-{/if}
+
+    <div class="crm-submit-buttons">{include file="CRM/common/formButtons.tpl" location="bottom"}</div>
+  {/if}
 </div>
+
 {literal}
 <script type="text/javascript">
   CRM.$(function($) {
     var $form = $('form.{/literal}{$form.formClass}{literal}');
-    function showActivityStatus() {
-      $('.crm-mail-settings-form-block-activity_status', $form).toggle($(this).val() === '0');
+    function showActivityFields() {
+      var fields = [
+        '.crm-mail-settings-form-block-activity_status',
+        '.crm-mail-settings-form-block-is_contact_creation_disabled_if_no_match',
+      ];
+
+      $(fields.join(', '), $form).toggle($(this).val() === '0');
     }
-    $('select[name=is_default]').each(showActivityStatus).change(showActivityStatus);
+    $('select[name="is_default"]').each(showActivityFields).change(showActivityFields);
   });
 </script>
 {/literal}
diff --git a/tests/phpunit/CRM/Utils/Mail/EmailProcessorTest.php b/tests/phpunit/CRM/Utils/Mail/EmailProcessorTest.php
index 89354b9783ce..3e10c72f2cd5 100644
--- a/tests/phpunit/CRM/Utils/Mail/EmailProcessorTest.php
+++ b/tests/phpunit/CRM/Utils/Mail/EmailProcessorTest.php
@@ -169,4 +169,37 @@ public function setUpMailing() {
     $this->eventQueue = $this->callAPISuccess('MailingEventQueue', 'get', ['api.MailingEventQueue.create' => ['hash' => 'aaaaaaaaaaaaaaaa']]);
   }
 
+  /**
+   * Set up mail account with 'Do not create new contacts when filing emails'
+   * option enabled.
+   */
+  public function setUpDoNotCreateContact() {
+    $this->callAPISuccess('MailSettings', 'get', [
+      'api.MailSettings.create' => [
+        'name' => 'mailbox',
+        'protocol' => 'Localdir',
+        'source' => __DIR__ . '/data/mail',
+        'domain' => 'example.com',
+        'is_default' => '0',
+        'is_contact_creation_disabled_if_no_match' => TRUE,
+      ],
+    ]);
+  }
+
+  /**
+   * Test case email processing when is_non_case_email_skipped is enabled.
+   */
+  public function testInboundProcessingDoNotCreateContact() {
+    $this->setUpDoNotCreateContact();
+    $mail = 'test_non_cases_email.eml';
+
+    copy(__DIR__ . '/data/inbound/' . $mail, __DIR__ . '/data/mail/' . $mail);
+    $this->callAPISuccess('job', 'fetch_activities', []);
+    $result = civicrm_api3('Contact', 'get', [
+      'sequential' => 1,
+      'email' => "from@test.test",
+    ]);
+    $this->assertTrue(empty($result['values']));
+  }
+
 }
diff --git a/xml/schema/Core/MailSettings.xml b/xml/schema/Core/MailSettings.xml
index 0dea26c13b2a..bad887e5c779 100644
--- a/xml/schema/Core/MailSettings.xml
+++ b/xml/schema/Core/MailSettings.xml
@@ -150,4 +150,15 @@
       <type>Select</type>
     </html>
   </field>
+  <field>
+    <name>is_contact_creation_disabled_if_no_match</name>
+    <type>boolean</type>
+    <title>Do not create new contacts when filing emails</title>
+    <default>0</default>
+    <html>
+      <type>CheckBox</type>
+    </html>
+    <description>If this option is enabled, CiviCRM will not create new contacts when filing emails.</description>
+    <add>5.30</add>
+  </field>
 </table>