diff --git a/src/4.3_to_5.0/__snapshots__/migrateSettingsFolder.test.ts.snap b/src/4.3_to_5.0/__snapshots__/migrateSettingsFolder.test.ts.snap
index 2b6527d..e7946c3 100644
--- a/src/4.3_to_5.0/__snapshots__/migrateSettingsFolder.test.ts.snap
+++ b/src/4.3_to_5.0/__snapshots__/migrateSettingsFolder.test.ts.snap
@@ -58,7 +58,7 @@ exports[`migrateSettingsFolder returns the folders corresponding to the converte
           },
           "settings": {
             "entry": {
-              "content": "{"theme":"dark-activeviam","search.maxResults":10,"userFilters.areEnabled":true}",
+              "content": "{"theme":"dark-activeviam","search.maxResults":10,"userFilters.areEnabled":true,"smartFiltering.nonEmptyEvaluationMeasureName":"pnl.SUM","smartFiltering.ignoredHierarchies":["[Currency].[Currency]","[Geography].[City]"]}",
               "owners": [
                 "admin",
               ],
@@ -97,7 +97,7 @@ exports[`migrateSettingsFolder returns the folders corresponding to the converte
           },
           "settings": {
             "entry": {
-              "content": "{"userFilters.areEnabled":false,"drillthrough.defaultSelectedColumns":{"MarketRiskCube":["riskCurrency","subTradeId","EntityName"],"SecondCube":["delta"]}}",
+              "content": "{"userFilters.areEnabled":false,"drillthrough.defaultSelectedColumns":{"MarketRiskCube":["riskCurrency","subTradeId","EntityName"],"SecondCube":["delta"]},"smartFiltering.isEnabled":false}",
               "owners": [
                 "user1",
               ],
diff --git a/src/4.3_to_5.0/legacySettingsFolder.ts b/src/4.3_to_5.0/legacySettingsFolder.ts
index f2ac97a..be85851 100644
--- a/src/4.3_to_5.0/legacySettingsFolder.ts
+++ b/src/4.3_to_5.0/legacySettingsFolder.ts
@@ -66,6 +66,7 @@ const user1Preferences = {
         ],
       },
     },
+    "memberSelection.smartFiltering": false,
   },
 };
 
@@ -120,6 +121,10 @@ const adminPreferences = {
     "servers.alias": {
       "https://activepivot-ranch.activeviam.com:5900": "http://localhost:8080",
     },
+    "memberSelection.smartFiltering.nonEmptyMeasure": "[Measures].[pnl.SUM]",
+    "memberSelection.smartFiltering.ignoreFromContext.[Currency].[Currency]":
+      true,
+    "memberSelection.smartFiltering.ignoreFromContext.[Geography].[City]": true,
   },
 };
 
diff --git a/src/4.3_to_5.0/migrateSettingsFolder.ts b/src/4.3_to_5.0/migrateSettingsFolder.ts
index d590714..2ffb069 100644
--- a/src/4.3_to_5.0/migrateSettingsFolder.ts
+++ b/src/4.3_to_5.0/migrateSettingsFolder.ts
@@ -2,11 +2,13 @@ import _cloneDeep from "lodash/cloneDeep";
 import _mapValues from "lodash/mapValues";
 import _uniq from "lodash/uniq";
 import _pick from "lodash/pick";
-import type {
+import _reduce from "lodash/reduce";
+import {
   Activity,
   ContentRecord,
   Settings,
   MdxString,
+  unquote,
 } from "@activeviam/activeui-sdk-5.0";
 import { emptyUIFolder } from "@activeviam/content-server-initialization-5.0";
 
@@ -76,6 +78,44 @@ function migrateSettingsMap(legacySettingsMap: {
     );
   }
 
+  /* Smart filtering settings start. */
+  const isSmartFilteringDisabled =
+    legacySettingsMap["memberSelection.smartFiltering"] === false;
+  if (isSmartFilteringDisabled) {
+    migratedSettingsMap["smartFiltering.isEnabled"] = false;
+  } else {
+    const nonEmptyEvaluationMeasureUniqueName =
+      legacySettingsMap["memberSelection.smartFiltering.nonEmptyMeasure"];
+    if (nonEmptyEvaluationMeasureUniqueName !== undefined) {
+      const [, nonEmptyEvaluationMeasureName] = unquote(
+        nonEmptyEvaluationMeasureUniqueName,
+      );
+      // @ts-expect-error TypeScript rightfully complains that this setting key does not exist in 5.0
+      // It was added only in 5.1 indeed, but it makes sense to migrate it as an intermediate step.
+      migratedSettingsMap["smartFiltering.nonEmptyEvaluationMeasureName"] =
+        nonEmptyEvaluationMeasureName;
+    }
+
+    const hierarchiesToIgnoreWhenSmartFiltering = _reduce(
+      legacySettingsMap,
+      (hierarchyUniqueNames: string[], settingValue, settingKey) => {
+        const [, hierarchyUniqueName] = settingKey.split(
+          "memberSelection.smartFiltering.ignoreFromContext.",
+        );
+        if (hierarchyUniqueName && settingValue === true) {
+          hierarchyUniqueNames.push(hierarchyUniqueName);
+        }
+        return hierarchyUniqueNames;
+      },
+      [],
+    );
+    if (hierarchiesToIgnoreWhenSmartFiltering.length > 0) {
+      migratedSettingsMap["smartFiltering.ignoredHierarchies"] =
+        hierarchiesToIgnoreWhenSmartFiltering;
+    }
+  }
+  /* Smart filtering settings end. */
+
   return migratedSettingsMap;
 }