diff --git a/apps/meteor/ee/server/startup/federation.ts b/apps/meteor/ee/server/startup/federation.ts
new file mode 100644
index 0000000000000..3a9d8b196cdc4
--- /dev/null
+++ b/apps/meteor/ee/server/startup/federation.ts
@@ -0,0 +1,78 @@
+import { api } from '@rocket.chat/core-services';
+import { FederationMatrix } from '@rocket.chat/federation-matrix';
+import { License } from '@rocket.chat/license';
+import { Logger } from '@rocket.chat/logger';
+
+import { settings } from '../../../app/settings/server';
+import { registerFederationRoutes } from '../api/federation';
+
+const logger = new Logger('Federation');
+
+export const startFederationService = async (): Promise<void> => {
+	let federationMatrixService: FederationMatrix | undefined;
+
+	const shouldStartService = (): boolean => {
+		const hasLicense = License.hasModule('federation');
+		const isEnabled = settings.get('Federation_Service_Enabled') === true;
+		return hasLicense && isEnabled;
+	};
+
+	const startService = async (): Promise<void> => {
+		if (federationMatrixService) {
+			logger.debug('Federation-matrix service already started... skipping');
+			return;
+		}
+
+		logger.debug('Starting federation-matrix service');
+		federationMatrixService = await FederationMatrix.create();
+
+		try {
+			api.registerService(federationMatrixService);
+			await registerFederationRoutes(federationMatrixService);
+		} catch (error) {
+			logger.error('Failed to start federation-matrix service:', error);
+		}
+	};
+
+	const stopService = async (): Promise<void> => {
+		if (!federationMatrixService) {
+			logger.debug('Federation-matrix service not registered... skipping');
+			return;
+		}
+
+		logger.debug('Stopping federation-matrix service');
+
+		// TODO: Unregister routes
+		// await unregisterFederationRoutes(federationMatrixService);
+
+		await api.destroyService(federationMatrixService);
+		federationMatrixService = undefined;
+	};
+
+	if (shouldStartService()) {
+		await startService();
+	}
+
+	void License.onLicense('federation', async () => {
+		logger.debug('Federation license became available');
+		if (shouldStartService()) {
+			await startService();
+		}
+	});
+
+	License.onInvalidateLicense(async () => {
+		logger.debug('License invalidated, checking federation module');
+		if (!shouldStartService()) {
+			await stopService();
+		}
+	});
+
+	settings.watch('Federation_Service_Enabled', async (enabled) => {
+		logger.debug('Federation_Service_Enabled setting changed:', enabled);
+		if (shouldStartService()) {
+			await startService();
+		} else {
+			await stopService();
+		}
+	});
+};
diff --git a/apps/meteor/server/services/startup.ts b/apps/meteor/server/services/startup.ts
index 3c4f0120e17c7..8707cd409c38d 100644
--- a/apps/meteor/server/services/startup.ts
+++ b/apps/meteor/server/services/startup.ts
@@ -30,7 +30,6 @@ import { UploadService } from './upload/service';
 import { UserService } from './user/service';
 import { VideoConfService } from './video-conference/service';
 import { VoipAsteriskService } from './voip-asterisk/service';
-import { registerFederationRoutes } from '../../ee/server/api/federation';
 import { i18n } from '../lib/i18n';
 
 export const registerServices = async (): Promise<void> => {
@@ -72,12 +71,6 @@ export const registerServices = async (): Promise<void> => {
 		api.registerService(new Presence());
 		api.registerService(new Authorization());
 
-		// TODO: Add it to a proper place since it's EE only
-		const { FederationMatrix } = await import('@rocket.chat/federation-matrix');
-		const federationMatrix = await FederationMatrix.create();
-		api.registerService(federationMatrix);
-		await registerFederationRoutes(federationMatrix);
-
 		// Run EE services defined outside of the main repo
 		// Otherwise, monolith would ignore them :(
 		// Always register the service and manage licensing inside the service (tbd)
diff --git a/apps/meteor/startRocketChat.ts b/apps/meteor/startRocketChat.ts
index f0ba6f3899b14..f2579be32b736 100644
--- a/apps/meteor/startRocketChat.ts
+++ b/apps/meteor/startRocketChat.ts
@@ -1,5 +1,6 @@
 import { startLicense } from './ee/app/license/server/startup';
 import { registerEEBroker } from './ee/server';
+import { startFederationService as startFederationMatrixService } from './ee/server/startup/federation';
 import { startFederationService } from './ee/server/startup/services';
 
 const loadBeforeLicense = async () => {
@@ -8,6 +9,7 @@ const loadBeforeLicense = async () => {
 
 const loadAfterLicense = async () => {
 	await startFederationService();
+	await startFederationMatrixService();
 };
 
 export const startRocketChat = async () => {
diff --git a/ee/apps/federation-service/package.json b/ee/apps/federation-service/package.json
index 411b00d1784a8..ba32bc0a0ab59 100644
--- a/ee/apps/federation-service/package.json
+++ b/ee/apps/federation-service/package.json
@@ -27,7 +27,9 @@
 		"@rocket.chat/emitter": "^0.31.25",
 		"@rocket.chat/federation-matrix": "workspace:^",
 		"@rocket.chat/http-router": "workspace:*",
+		"@rocket.chat/license": "workspace:^",
 		"@rocket.chat/models": "workspace:*",
+		"@rocket.chat/network-broker": "workspace:^",
 		"hono": "^3.11.0",
 		"pino": "^8.16.0",
 		"polka": "^0.5.2",
diff --git a/ee/apps/federation-service/src/service.ts b/ee/apps/federation-service/src/service.ts
index 46e69b868dff9..1c4ee6a9e0f0f 100644
--- a/ee/apps/federation-service/src/service.ts
+++ b/ee/apps/federation-service/src/service.ts
@@ -1,6 +1,7 @@
 import 'reflect-metadata';
 import { serve } from '@hono/node-server';
-import { api, getConnection, getTrashCollection } from '@rocket.chat/core-services';
+import { api, getConnection, getTrashCollection, Settings } from '@rocket.chat/core-services';
+import { License } from '@rocket.chat/license';
 import { registerServiceModels } from '@rocket.chat/models';
 import { startBroker } from '@rocket.chat/network-broker';
 import { Hono } from 'hono';
@@ -10,10 +11,19 @@ import { config } from './config';
 function handleHealthCheck(app: Hono) {
 	app.get('/health', async (c) => {
 		try {
-			return c.json({ status: 'ok' });
+			const hasLicense = await License.hasModule('federation');
+			const isEnabled = await Settings.get('Federation_Service_Enabled');
+
+			return c.json({
+				status: 'ok',
+				license: hasLicense ? 'valid' : 'invalid',
+				settings: {
+					federation_enabled: isEnabled,
+				},
+			});
 		} catch (err) {
 			console.error('Service not healthy', err);
-			return c.json({ status: 'not healthy' }, 500);
+			return c.json({ status: 'not healthy', error: (err as Error).message }, 500);
 		}
 	});
 }
@@ -26,6 +36,18 @@ function handleHealthCheck(app: Hono) {
 
 	api.setBroker(startBroker());
 
+	await api.start();
+
+	const hasLicense = License.hasModule('federation');
+	if (!hasLicense) {
+		throw new Error('Service requires a valid Enterprise license with the federation module');
+	}
+
+	const isEnabled = await Settings.get('Federation_Service_Enabled');
+	if (!isEnabled) {
+		throw new Error('Service is disabled in settings (Federation_Service_Enabled = false)');
+	}
+
 	const { FederationMatrix } = await import('@rocket.chat/federation-matrix');
 	const federationMatrix = await FederationMatrix.create();
 	api.registerService(federationMatrix);
@@ -35,13 +57,14 @@ function handleHealthCheck(app: Hono) {
 
 	app.mount('/_matrix', matrix.getHonoRouter().fetch);
 	app.mount('/.well-known', wellKnown.getHonoRouter().fetch);
-	
+
 	handleHealthCheck(app);
 
 	serve({
 		fetch: app.fetch,
 		port: config.port,
 	});
-
-	await api.start();
-})();
+})().catch((error) => {
+	console.error('Failed to start service:', error);
+	process.exit(1);
+});
diff --git a/packages/core-services/src/LocalBroker.ts b/packages/core-services/src/LocalBroker.ts
index be19791097658..2c1692d6bd4c4 100644
--- a/packages/core-services/src/LocalBroker.ts
+++ b/packages/core-services/src/LocalBroker.ts
@@ -71,6 +71,8 @@ export class LocalBroker implements IBroker {
 		}
 		instance.removeAllListeners();
 		await instance.stopped();
+
+		this.services.delete(namespace);
 	}
 
 	/**
diff --git a/yarn.lock b/yarn.lock
index 1bacca961c348..5597f3e60829e 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -9084,7 +9084,9 @@ __metadata:
     "@rocket.chat/emitter": "npm:^0.31.25"
     "@rocket.chat/federation-matrix": "workspace:^"
     "@rocket.chat/http-router": "workspace:*"
+    "@rocket.chat/license": "workspace:^"
     "@rocket.chat/models": "workspace:*"
+    "@rocket.chat/network-broker": "workspace:^"
     "@types/bun": "npm:latest"
     "@types/express": "npm:^4.17.17"
     hono: "npm:^3.11.0"