diff --git a/substrate/frame/contracts/mock-network/src/parachain/contracts_config.rs b/substrate/frame/contracts/mock-network/src/parachain/contracts_config.rs
index 20fdd9a243..bf3c00b3ff 100644
--- a/substrate/frame/contracts/mock-network/src/parachain/contracts_config.rs
+++ b/substrate/frame/contracts/mock-network/src/parachain/contracts_config.rs
@@ -14,8 +14,9 @@
 // You should have received a copy of the GNU General Public License
 // along with Polkadot.  If not, see <http://www.gnu.org/licenses/>.
 
-use super::{Balances, Runtime, RuntimeCall, RuntimeEvent, RuntimeHoldReason};
-use frame_support::{derive_impl, parameter_types, traits::Contains};
+use super::{Balances, Runtime, RuntimeCall, RuntimeEvent};
+use crate::parachain::RuntimeHoldReason;
+use frame_support::{derive_impl, parameter_types};
 
 parameter_types! {
 	pub Schedule: pallet_contracts::Schedule<Runtime> = Default::default();
@@ -28,14 +29,5 @@ impl pallet_contracts::Config for Runtime {
 	type Currency = Balances;
 	type Schedule = Schedule;
 	type Time = super::Timestamp;
-	type CallFilter = CallFilter;
 	type Xcm = pallet_xcm::Pallet<Self>;
 }
-
-/// In this mock, we only allow other contract calls via XCM.
-pub struct CallFilter;
-impl Contains<RuntimeCall> for CallFilter {
-	fn contains(call: &RuntimeCall) -> bool {
-		matches!(call, RuntimeCall::Contracts(pallet_contracts::Call::call { .. }))
-	}
-}
diff --git a/substrate/frame/contracts/mock-network/src/tests.rs b/substrate/frame/contracts/mock-network/src/tests.rs
index e7d1f6279a..48a94e172a 100644
--- a/substrate/frame/contracts/mock-network/src/tests.rs
+++ b/substrate/frame/contracts/mock-network/src/tests.rs
@@ -22,10 +22,7 @@ use crate::{
 	relay_chain, MockNet, ParaA, ParachainBalances, Relay, ALICE, BOB, INITIAL_BALANCE,
 };
 use codec::{Decode, Encode};
-use frame_support::{
-	assert_err,
-	traits::{fungibles::Mutate, Currency},
-};
+use frame_support::traits::{fungibles::Mutate, Currency};
 use pallet_contracts::{test_utils::builder::*, Code};
 use pallet_contracts_fixtures::compile_module;
 use pallet_contracts_uapi::ReturnErrorCode;
@@ -132,26 +129,6 @@ fn test_xcm_execute_incomplete() {
 	});
 }
 
-#[test]
-fn test_xcm_execute_filtered_call() {
-	MockNet::reset();
-
-	let contract_addr = instantiate_test_contract("xcm_execute");
-
-	ParaA::execute_with(|| {
-		// `remark`  should be rejected, as it is not allowed by our CallFilter.
-		let call = parachain::RuntimeCall::System(frame_system::Call::remark { remark: vec![] });
-		let message: Xcm<parachain::RuntimeCall> = Xcm::builder_unsafe()
-			.transact(OriginKind::Native, Weight::MAX, call.encode())
-			.build();
-		let result = bare_call(contract_addr.clone())
-			.data(VersionedXcm::V4(message).encode())
-			.build()
-			.result;
-		assert_err!(result, frame_system::Error::<parachain::Runtime>::CallFiltered);
-	});
-}
-
 #[test]
 fn test_xcm_execute_reentrant_call() {
 	MockNet::reset();
diff --git a/substrate/frame/contracts/src/lib.rs b/substrate/frame/contracts/src/lib.rs
index 0045d72141..3e87eb9f37 100644
--- a/substrate/frame/contracts/src/lib.rs
+++ b/substrate/frame/contracts/src/lib.rs
@@ -307,6 +307,9 @@ pub mod pallet {
 		/// Therefore please make sure to be restrictive about which dispatchables are allowed
 		/// in order to not introduce a new DoS vector like memory allocation patterns that can
 		/// be exploited to drive the runtime into a panic.
+		///
+		/// This filter does not apply to XCM transact calls. To impose restrictions on XCM transact
+		/// calls, you must configure them separately within the XCM pallet itself.
 		#[pallet::no_default_bounds]
 		type CallFilter: Contains<<Self as frame_system::Config>::RuntimeCall>;
 
diff --git a/substrate/frame/contracts/src/wasm/runtime.rs b/substrate/frame/contracts/src/wasm/runtime.rs
index 52ceda99ed..3212aff312 100644
--- a/substrate/frame/contracts/src/wasm/runtime.rs
+++ b/substrate/frame/contracts/src/wasm/runtime.rs
@@ -25,12 +25,8 @@ use crate::{
 };
 use codec::{Decode, DecodeLimit, Encode, MaxEncodedLen};
 use frame_support::{
-	dispatch::DispatchInfo,
-	ensure,
-	pallet_prelude::{DispatchResult, DispatchResultWithPostInfo},
-	parameter_types,
-	traits::Get,
-	weights::Weight,
+	dispatch::DispatchInfo, ensure, pallet_prelude::DispatchResultWithPostInfo, parameter_types,
+	traits::Get, weights::Weight,
 };
 use pallet_contracts_proc_macro::define_env;
 use pallet_contracts_uapi::{CallFlags, ReturnFlags};
@@ -41,7 +37,6 @@ use sp_runtime::{
 };
 use sp_std::{fmt, prelude::*};
 use wasmi::{core::HostError, errors::LinkerError, Linker, Memory, Store};
-use xcm::VersionedXcm;
 
 type CallOf<T> = <T as frame_system::Config>::RuntimeCall;
 
@@ -378,29 +373,6 @@ fn already_charged(_: u32) -> Option<RuntimeCosts> {
 	None
 }
 
-/// Ensure that the XCM program is executable, by checking that it does not contain any [`Transact`]
-/// instruction with a call that is not allowed by the CallFilter.
-fn ensure_executable<T: Config>(message: &VersionedXcm<CallOf<T>>) -> DispatchResult {
-	use frame_support::traits::Contains;
-	use xcm::prelude::{Transact, Xcm};
-
-	let mut message: Xcm<CallOf<T>> =
-		message.clone().try_into().map_err(|_| Error::<T>::XCMDecodeFailed)?;
-
-	message.iter_mut().try_for_each(|inst| -> DispatchResult {
-		let Transact { ref mut call, .. } = inst else { return Ok(()) };
-		let call = call.ensure_decoded().map_err(|_| Error::<T>::XCMDecodeFailed)?;
-
-		if !<T as Config>::CallFilter::contains(call) {
-			return Err(frame_system::Error::<T>::CallFiltered.into())
-		}
-
-		Ok(())
-	})?;
-
-	Ok(())
-}
-
 /// Can only be used for one call.
 pub struct Runtime<'a, E: Ext + 'a> {
 	ext: &'a mut E,
@@ -2117,7 +2089,6 @@ pub mod env {
 		ctx.charge_gas(RuntimeCosts::CopyFromContract(msg_len))?;
 		let message: VersionedXcm<CallOf<E::T>> =
 			ctx.read_sandbox_memory_as_unbounded(memory, msg_ptr, msg_len)?;
-		ensure_executable::<E::T>(&message)?;
 
 		let execute_weight =
 			<<E::T as Config>::Xcm as ExecuteController<_, _>>::WeightInfo::execute();