diff --git a/client/ayon_core/hosts/max/api/pipeline.py b/client/ayon_core/hosts/max/api/pipeline.py
index 0aca14e820..134dad1780 100644
--- a/client/ayon_core/hosts/max/api/pipeline.py
+++ b/client/ayon_core/hosts/max/api/pipeline.py
@@ -217,11 +217,12 @@ def on_task_changed():
 def on_before_open():
     project_name = get_current_project_name()
     workdir_path = os.getenv("AYON_WORKDIR")
-    if not os.path.exists(workdir_path):
+    if os.path.exists(workdir_path):
         create_workspace_mxp(workdir_path, project_name)
         mxp_filepath = os.path.join(workdir_path, "workspace.mxp")
-        rt.pathConfig.load(mxp_filepath)
-        rt.pathConfig.doProjectSetupStepsUsingDirectory(workdir_path)
+        if os.path.exists(mxp_filepath):
+            rt.pathConfig.load(mxp_filepath)
+            rt.pathConfig.doProjectSetupStepsUsingDirectory(workdir_path)
         rt.pathConfig.setCurrentProjectFolder(workdir_path)
 
 
diff --git a/client/ayon_core/hosts/max/lib.py b/client/ayon_core/hosts/max/lib.py
index 7b6499e299..ddffa917d9 100644
--- a/client/ayon_core/hosts/max/lib.py
+++ b/client/ayon_core/hosts/max/lib.py
@@ -13,18 +13,29 @@ def create_workspace_mxp(workdir, project_name, project_settings=None):
 
     if not project_settings:
         project_settings = get_project_settings(project_name)
-    max_script = project_settings["max"].get("mxp_workspace")
-    # TODO: add ProjectFolder={workdir} into the max_script
+    log = Logger.get_logger("create_workspace_mxp")
+    mxp_workspace = project_settings["max"].get("mxp_workspace")
+    # Ensure the hook would not cause possible error
+    # when using the old addon.
+    if mxp_workspace is None:
+        log.debug("No mxp workspace setting found in the "
+                  "latest Max Addon. Please update to 0.1.8")
+        return
+    if not mxp_workspace.get("enabled"):
+        log.debug("Mxp workspace disabled in the project settings."
+                  " Skipping action.")
+        return
+    max_script = mxp_workspace.get("mxp_workspace_script")
+    # Skip if mxp script in settings is empty
+    if not max_script:
+        log.debug("File 'workspace.mxp' not created. Settings value is empty.")
+        return
+
     edited_script = "\n".join((
         '[Directories]',
         f'ProjectFolder={workdir}'
     ))
     max_script = max_script.replace("[Directories]", edited_script)
-    # Skip if mxp script in settings is empty
-    if not max_script:
-        log = Logger.get_logger("create_workspace_mxp")
-        log.debug("File 'workspace.mxp' not created. Settings value is empty.")
-        return
 
     with open(dst_filepath, "w") as mxp_file:
         mxp_file.write(max_script)
diff --git a/server_addon/max/server/settings/main.py b/server_addon/max/server/settings/main.py
index e1411e1119..2243a2cca2 100644
--- a/server_addon/max/server/settings/main.py
+++ b/server_addon/max/server/settings/main.py
@@ -21,6 +21,13 @@ def unit_scale_enum():
     ]
 
 
+class MxpWorkspaceSettings(BaseSettingsModel):
+    enabled: bool = SettingsField(False, title="Enabled")
+    mxp_workspace_script: str = SettingsField(
+        title="Max mxp Workspace", widget="textarea"
+    )
+
+
 class UnitScaleSettings(BaseSettingsModel):
     enabled: bool = SettingsField(True, title="Enabled")
     scene_unit_scale: str = SettingsField(
@@ -46,8 +53,9 @@ class MaxSettings(BaseSettingsModel):
         default_factory=UnitScaleSettings,
         title="Set Unit Scale"
     )
-    mxp_workspace: str = SettingsField(
-        title="Max mxp Workspace", widget="textarea"
+    mxp_workspace: MxpWorkspaceSettings = SettingsField(
+        default_factory=MxpWorkspaceSettings,
+        title="Max Workspace"
     )
     imageio: ImageIOSettings = SettingsField(
         default_factory=ImageIOSettings,
@@ -103,7 +111,10 @@ class MaxSettings(BaseSettingsModel):
         "enabled": True,
         "scene_unit_scale": "Centimeters"
     },
-    "mxp_workspace": DEFAULT_MXP_WORKSPACE_SETTINGS,
+    "mxp_workspace": {
+        "enabled": False,
+        "mxp_workspace_script": DEFAULT_MXP_WORKSPACE_SETTINGS
+    },
     "RenderSettings": DEFAULT_RENDER_SETTINGS,
     "CreateReview": DEFAULT_CREATE_REVIEW_SETTINGS,
     "PointCloud": {