diff --git a/awx/main/tasks/jobs.py b/awx/main/tasks/jobs.py
index dcde3f65ab..c441e6ce1a 100644
--- a/awx/main/tasks/jobs.py
+++ b/awx/main/tasks/jobs.py
@@ -1162,6 +1162,7 @@ class RunJob(SourceControlMixin, BaseTask):
             env['ANSIBLE_CALLBACKS_ENABLED'] += ',' + config_values['callbacks_enabled']
 
         if flag_enabled("FEATURE_INDIRECT_NODE_COUNTING_ENABLED"):
+            env['AWX_COLLECT_HOST_QUERIES'] = '1'
             # Add vendor collections path for external query file discovery
             vendor_collections_path = os.path.join(CONTAINER_ROOT, 'vendor_collections')
             env['ANSIBLE_COLLECTIONS_PATH'] = f"{vendor_collections_path}:{env['ANSIBLE_COLLECTIONS_PATH']}"
diff --git a/awx/main/tests/unit/test_tasks.py b/awx/main/tests/unit/test_tasks.py
index c70d6cf349..62c7f42b0a 100644
--- a/awx/main/tests/unit/test_tasks.py
+++ b/awx/main/tests/unit/test_tasks.py
@@ -965,6 +965,33 @@ class TestCallbacksEnabled(TestJobExecution):
 
         assert env['ANSIBLE_CALLBACKS_ENABLED'] == 'indirect_instance_count,my_callback'
 
+    def test_collect_host_queries_set_when_flag_on(self, patch_Job, private_data_dir, execution_environment, mock_me):
+        job = Job(project=Project(), inventory=Inventory())
+        job.execution_environment = execution_environment
+
+        task = jobs.RunJob()
+        task.instance = job
+        task._write_extra_vars_file = mock.Mock()
+
+        with mock.patch.object(task, 'build_credentials_list', return_value=[], autospec=True):
+            with mock.patch('awx.main.tasks.jobs.flag_enabled', return_value=True):
+                env = task.build_env(job, private_data_dir)
+
+        assert env['AWX_COLLECT_HOST_QUERIES'] == '1'
+
+    def test_collect_host_queries_not_set_when_flag_off(self, patch_Job, private_data_dir, execution_environment, mock_me):
+        job = Job(project=Project(), inventory=Inventory())
+        job.execution_environment = execution_environment
+
+        task = jobs.RunJob()
+        task.instance = job
+        task._write_extra_vars_file = mock.Mock()
+
+        with mock.patch.object(task, 'build_credentials_list', return_value=[], autospec=True):
+            env = task.build_env(job, private_data_dir)
+
+        assert 'AWX_COLLECT_HOST_QUERIES' not in env
+
 
 @pytest.mark.usefixtures("patch_Organization")
 class TestProjectUpdateGalaxyCredentials(TestJobExecution):
diff --git a/awx/playbooks/library/indirect_instance_count.py b/awx/playbooks/library/indirect_instance_count.py
index 4973f76c05..695bd63cc8 100644
--- a/awx/playbooks/library/indirect_instance_count.py
+++ b/awx/playbooks/library/indirect_instance_count.py
@@ -168,29 +168,28 @@ class CallbackModule(CallbackBase):
         if not artifact_dir:
             raise RuntimeError('Only suitable in AWX, did not find private_data_dir')
 
+        collect_host_queries = os.getenv('AWX_COLLECT_HOST_QUERIES') == '1'
+
         collections_print = {}
-        # Loop over collections, from ansible-core these are Candidate objects
         for candidate in list_collections():
             collection_print = {
                 'version': candidate.ver,
             }
 
-            # 1. Check for embedded query file (takes precedence)
-            embedded_query_file = files(f'ansible_collections.{candidate.namespace}.{candidate.name}') / 'extensions' / 'audit' / 'event_query.yml'
-            if embedded_query_file.exists():
-                with embedded_query_file.open('r') as f:
-                    collection_print['host_query'] = f.read()
-                self._display.vv(f"Using embedded query for {candidate.fqcn} v{candidate.ver}")
-            else:
-                # 2. Check for external query file with version fallback
-                query_content, fallback_used, version_used = find_external_query_with_fallback(candidate.namespace, candidate.name, candidate.ver)
-                if query_content:
-                    collection_print['host_query'] = query_content
-                    if fallback_used:
-                        # AC5.6: Log when fallback is used
-                        self._display.v(f"Using external query {version_used} for {candidate.fqcn} v{candidate.ver}.")
-                    else:
-                        self._display.v(f"Using external query for {candidate.fqcn} v{candidate.ver}")
+            if collect_host_queries:
+                embedded_query_file = files(f'ansible_collections.{candidate.namespace}.{candidate.name}') / 'extensions' / 'audit' / 'event_query.yml'
+                if embedded_query_file.exists():
+                    with embedded_query_file.open('r') as f:
+                        collection_print['host_query'] = f.read()
+                    self._display.vv(f"Using embedded query for {candidate.fqcn} v{candidate.ver}")
+                else:
+                    query_content, fallback_used, version_used = find_external_query_with_fallback(candidate.namespace, candidate.name, candidate.ver)
+                    if query_content:
+                        collection_print['host_query'] = query_content
+                        if fallback_used:
+                            self._display.v(f"Using external query {version_used} for {candidate.fqcn} v{candidate.ver}.")
+                        else:
+                            self._display.v(f"Using external query for {candidate.fqcn} v{candidate.ver}")
 
             collections_print[candidate.fqcn] = collection_print