diff --git a/src/diffusers/utils/constants.py b/src/diffusers/utils/constants.py
index 44d383814c..d9867fb875 100644
--- a/src/diffusers/utils/constants.py
+++ b/src/diffusers/utils/constants.py
@@ -45,7 +45,7 @@ DIFFUSERS_ATTN_BACKEND = os.getenv("DIFFUSERS_ATTN_BACKEND", "native")
 DIFFUSERS_ATTN_CHECKS = os.getenv("DIFFUSERS_ATTN_CHECKS", "0") in ENV_VARS_TRUE_VALUES
 DEFAULT_HF_PARALLEL_LOADING_WORKERS = 8
 HF_ENABLE_PARALLEL_LOADING = os.environ.get("HF_ENABLE_PARALLEL_LOADING", "").upper() in ENV_VARS_TRUE_VALUES
-DIFFUSERS_DISABLE_CUSTOM_CODE = os.getenv("DIFFUSERS_DISABLE_CUSTOM_CODE", "false").lower() in ENV_VARS_TRUE_VALUES
+DIFFUSERS_DISABLE_REMOTE_CODE = os.getenv("DIFFUSERS_DISABLE_REMOTE_CODE", "false").lower() in ENV_VARS_TRUE_VALUES
 
 # Below should be `True` if the current version of `peft` and `transformers` are compatible with
 # PEFT backend. Will automatically fall back to PEFT backend if the correct versions of the libraries are
diff --git a/src/diffusers/utils/dynamic_modules_utils.py b/src/diffusers/utils/dynamic_modules_utils.py
index 28f220a877..08cd4ca1eb 100644
--- a/src/diffusers/utils/dynamic_modules_utils.py
+++ b/src/diffusers/utils/dynamic_modules_utils.py
@@ -168,11 +168,23 @@ def _raise_timeout_error(signum, frame):
 
 def resolve_trust_remote_code(trust_remote_code, model_name, has_remote_code):
     trust_remote_code = trust_remote_code and not DIFFUSERS_DISABLE_REMOTE_CODE
+    if DIFFUSERS_DISABLE_REMOTE_CODE:
+        logger.warning(
+            "Remote code execution has been disabled globally via DIFFUSERS_DISABLE_REMOTE_CODE environment variable. Ignoring `trust_remote_code`."
+        )
+
     if has_remote_code and not trust_remote_code:
-        raise ValueError(
-            f"The repository for {model_name} contains custom code which must be executed to correctly "
-            f"load the model. You can inspect the repository content at https://hf.co/{model_name}.\n"
-            f"Please pass the argument `trust_remote_code=True` to allow custom code to be run."
+        error_msg = f"The repository for {model_name} contains custom code. "
+        error_msg += (
+            "Remote code is disabled globally via DIFFUSERS_DISABLE_REMOTE_CODE."
+            if DIFFUSERS_DISABLE_REMOTE_CODE
+            else "Pass `trust_remote_code=True` to allow loading remote code modules."
+        )
+        raise ValueError(error_msg)
+
+    elif has_remote_code and trust_remote_code:
+        logger.warning(
+            f"`trust_remote_code` is enabled. Downloading code from {model_name}. Please ensure you trust the contents of this repository"
         )
 
     return trust_remote_code