diff --git a/docs/cloud/guides/cloud-compatibility.md b/docs/cloud/guides/cloud-compatibility.md
index c3c0fd4eadd..08d70bea4c5 100644
--- a/docs/cloud/guides/cloud-compatibility.md
+++ b/docs/cloud/guides/cloud-compatibility.md
@@ -89,6 +89,17 @@ Federated queries with some external database and table engines, such as SQLite,
 
 User-defined functions are a recent feature in ClickHouse. ClickHouse Cloud currently supports SQL UDFs only.
 
+#### Settings behavior {#udf-settings-behavior}
+
+:::warning Important
+UDFs in ClickHouse Cloud **do not inherit user-level settings**. They execute with default system settings.
+:::
+
+This means:
+- Session-level settings (set via `SET` statement) are not propagated to UDF execution context
+- User profile settings are not inherited by UDFs
+- Query-level settings do not apply within UDF execution
+
 ### Experimental features {#experimental-features}
 
 Experimental features are disabled in ClickHouse Cloud services to ensure the stability of service deployments.