diff --git a/plugins/webp-uploads/settings.php b/plugins/webp-uploads/settings.php
index 78cccb2140..7304ea7fa7 100644
--- a/plugins/webp-uploads/settings.php
+++ b/plugins/webp-uploads/settings.php
@@ -79,7 +79,7 @@ function webp_uploads_add_media_settings_fields(): void {
 	add_settings_section(
 		'perflab_modern_image_format_settings',
 		_x( 'Modern Image Formats', 'settings page section name', 'webp-uploads' ),
-		'__return_empty_string',
+		'webp_uploads_render_settings_section_info',
 		'media',
 		array(
 			'before_section' => '<div id="modern-image-formats">',
@@ -139,6 +139,33 @@ function webp_uploads_add_media_settings_fields(): void {
  *
  * @since 2.0.0
  */
+/**
+ * Render informational notice for the Modern Image Formats settings section.
+ *
+ * Explains why modern format images may not always be generated after upload.
+ */
+function webp_uploads_render_settings_section_info(): void {
+	?>
+	<div class="notice notice-info inline" style="margin:0;padding:10px 14px;">
+		<p>
+			<?php
+			echo wp_kses(
+				__( 'Modern image formats (e.g. WebP, AVIF) are only generated when they result in a smaller file than the original. If a converted image would be larger, the original is kept instead. For more details, see the <a href="https://wordpress.org/plugins/webp-uploads/#faq">FAQ</a>.', 'webp-uploads' ),
+				array(
+					'a' => array(
+						'href' => array(),
+					),
+				)
+			);
+			?>
+		</p>
+	</div>
+	<?php
+}
+
+/**
+ * Callback for rendering the AVIF/WebP output format setting.
+ */
 function webp_uploads_generate_avif_webp_setting_callback(): void {
 
 	$selected       = webp_uploads_get_image_output_format();
diff --git a/plugins/webp-uploads/tests/test-settings.php b/plugins/webp-uploads/tests/test-settings.php
index 0d167b1d09..eefb9fe50d 100644
--- a/plugins/webp-uploads/tests/test-settings.php
+++ b/plugins/webp-uploads/tests/test-settings.php
@@ -7,6 +7,18 @@
 
 class Test_WebP_Uploads_Settings extends WP_UnitTestCase {
 
+	/**
+	 * @covers ::webp_uploads_render_settings_section_info
+	 */
+	public function test_webp_uploads_render_settings_section_info_contains_notice(): void {
+		$output = get_echo( 'webp_uploads_render_settings_section_info' );
+
+		$this->assertStringContainsString( 'notice notice-info inline', $output );
+		$this->assertStringContainsString( 'Modern image formats', $output );
+		$this->assertStringContainsString( 'https://wordpress.org/plugins/webp-uploads/#faq', $output );
+		$this->assertStringContainsString( 'smaller file than the original', $output );
+	}
+
 	/**
 	 * @covers ::webp_uploads_add_settings_action_link
 	 */