diff --git a/apps/files_sharing/lib/Controller/Share20OcsController.php b/apps/files_sharing/lib/Controller/Share20OcsController.php
index 810533a9bdfa..0ac2c451f426 100644
--- a/apps/files_sharing/lib/Controller/Share20OcsController.php
+++ b/apps/files_sharing/lib/Controller/Share20OcsController.php
@@ -379,12 +379,12 @@ public function createShare() {
 
 		$shareWith = $this->request->getParam('shareWith', null);
 
-		$autoAccept = false;
-		$globalAutoAcceptValue = $this->config->getAppValue('core', 'shareapi_auto_accept_share', 'yes');
-		if ($globalAutoAcceptValue === 'yes') {
-			$autoAccept = $this->config->getUserValue($shareWith, 'files_sharing', 'auto_accept_share', $globalAutoAcceptValue) === 'yes';
-		}
+		$globalAutoAccept = $this->config->getAppValue('core', 'shareapi_auto_accept_share', 'yes') === 'yes';
 		if ($shareType === Share::SHARE_TYPE_USER) {
+			$userAutoAccept = false;
+			if ($globalAutoAccept) {
+				$userAutoAccept = $this->config->getUserValue($shareWith, 'files_sharing', 'auto_accept_share', 'yes') === 'yes';
+			}
 			// Valid user is required to share
 			if ($shareWith === null || !$this->userManager->userExists($shareWith)) {
 				$share->getNode()->unlock(ILockingProvider::LOCK_SHARED);
@@ -392,7 +392,7 @@ public function createShare() {
 			}
 			$share->setSharedWith($shareWith);
 			$share->setPermissions($permissions);
-			if ($autoAccept) {
+			if ($userAutoAccept) {
 				$share->setState(Share::STATE_ACCEPTED);
 			} else {
 				$share->setState(Share::STATE_PENDING);
@@ -413,7 +413,7 @@ public function createShare() {
 			}
 			$share->setSharedWith($shareWith);
 			$share->setPermissions($permissions);
-			if ($autoAccept) {
+			if ($globalAutoAccept) {
 				$share->setState(Share::STATE_ACCEPTED);
 			} else {
 				$share->setState(Share::STATE_PENDING);
@@ -501,6 +501,21 @@ public function createShare() {
 
 		try {
 			$share = $this->shareManager->createShare($share);
+			/**
+			 * If auto accept enabled by admin and it is a group share,
+			 * create sub-share for auto accept disabled users in pending state.
+			 */
+			if ($share->getShareType() === Share::SHARE_TYPE_GROUP && $globalAutoAccept) {
+				$subShare = $share;
+				$group = $this->groupManager->get($share->getSharedWith());
+				foreach ($group->getUsers() as $user) {
+					$userAutoAccept = $this->config->getUserValue($user->getUID(), 'files_sharing', 'auto_accept_share', 'yes') === 'yes';
+					if (!$userAutoAccept) {
+						$subShare->setState(Share::STATE_PENDING);
+						$this->shareManager->updateShareForRecipient($subShare, $user->getUID());
+					}
+				}
+			}
 		} catch (GenericShareException $e) {
 			$code = $e->getCode() === 0 ? 403 : $e->getCode();
 			$share->getNode()->unlock(ILockingProvider::LOCK_SHARED);
diff --git a/apps/files_sharing/tests/Controller/Share20OcsControllerTest.php b/apps/files_sharing/tests/Controller/Share20OcsControllerTest.php
index e374c1f583c2..5732b7ddfd21 100644
--- a/apps/files_sharing/tests/Controller/Share20OcsControllerTest.php
+++ b/apps/files_sharing/tests/Controller/Share20OcsControllerTest.php
@@ -200,6 +200,7 @@ private function getGroupMock(array $attrs) {
 		if (isset($attrs['displayname'])) {
 			$groupMock->method('getDisplayName')->willReturn($attrs['displayname']);
 		}
+		$groupMock->method('getUsers')->willReturn([]);
 		return $groupMock;
 	}
 
diff --git a/tests/acceptance/features/webUISharingAcceptShares/acceptShares.feature b/tests/acceptance/features/webUISharingAcceptShares/acceptShares.feature
index f3568141b7f0..964dd8ddcecc 100644
--- a/tests/acceptance/features/webUISharingAcceptShares/acceptShares.feature
+++ b/tests/acceptance/features/webUISharingAcceptShares/acceptShares.feature
@@ -238,7 +238,6 @@ Feature: accept/decline shares coming from internal users
     Then folder "simple-folder-renamed" should be in state "" in the shared-with-you page on the webUI
     And folder "simple-folder-renamed" should be listed in the files page on the webUI
 
-  @issue-34705
   Scenario: User-based accepting is disabled while global is enabled
     Given the setting "Automatically accept new incoming local user shares" in the section "Sharing" has been enabled
     And user "user1" has logged in using the webUI
@@ -247,14 +246,11 @@ Feature: accept/decline shares coming from internal users
     And user "user2" shares folder "/simple-folder" with group "grp1" using the sharing API
     And user "user2" shares file "/testimage.jpg" with user "user1" using the sharing API
     And the user browses to the files page
-    Then folder "simple-folder (2)" should be listed on the webUI
-    #Then folder "simple-folder (2)" should not be listed on the webUI
+    Then folder "simple-folder (2)" should not be listed on the webUI
     And file "testimage (2).jpg" should not be listed on the webUI
-    And folder "simple-folder (2)" should be listed in the shared-with-you page on the webUI
-    #But folder "simple-folder" should be listed in the shared-with-you page on the webUI
+    But folder "simple-folder" should be listed in the shared-with-you page on the webUI
     And file "testimage.jpg" should be listed in the shared-with-you page on the webUI
-    And folder "simple-folder (2)" should be in state "" in the shared-with-you page on the webUI
-    #And folder "simple-folder" should be in state "Pending" in the shared-with-you page on the webUI
+    And folder "simple-folder" should be in state "Pending" in the shared-with-you page on the webUI
     And file "testimage.jpg" should be in state "Pending" in the shared-with-you page on the webUI
 
   Scenario: User-based accepting is enabled while global is enabled