diff --git a/docs/configuration/cheatsheet.md b/docs/configuration/cheatsheet.md
index 6b640cebc..1de51e72d 100644
--- a/docs/configuration/cheatsheet.md
+++ b/docs/configuration/cheatsheet.md
@@ -971,11 +971,11 @@ config :pleroma, :database_config_whitelist, [
 
 ### :restrict_unauthenticated
 
-Restrict access for unauthenticated users to timelines (public and federate), user profiles and statuses.
+Restrict access for unauthenticated users to timelines (public and federated), user profiles and statuses.
 
 * `timelines`: public and federated timelines
   * `local`: public timeline
-  * `federated`
+  * `federated`: federated timeline (includes public timeline)
 * `profiles`: user profiles
   * `local`
   * `remote`
@@ -983,6 +983,7 @@ Restrict access for unauthenticated users to timelines (public and federate), us
   * `local`
   * `remote`
 
+Note: setting `restrict_unauthenticated/timelines/local` to `true` has no practical sense if `restrict_unauthenticated/timelines/federated` is set to `false` (since local public activities will still be delivered to unauthenticated users as part of federated timeline). 
 
 ## Pleroma.Web.ApiSpec.CastAndValidate
 
diff --git a/lib/pleroma/web/mastodon_api/controllers/timeline_controller.ex b/lib/pleroma/web/mastodon_api/controllers/timeline_controller.ex
index 4bdd46d7e..4bbb82c23 100644
--- a/lib/pleroma/web/mastodon_api/controllers/timeline_controller.ex
+++ b/lib/pleroma/web/mastodon_api/controllers/timeline_controller.ex
@@ -88,21 +88,23 @@ defmodule Pleroma.Web.MastodonAPI.TimelineController do
     )
   end
 
-  # GET /api/v1/timelines/public
-  def public(%{assigns: %{user: user}} = conn, params) do
-    local_only = params[:local]
-
-    cfg_key =
+  defp restrict_unauthenticated?(local_only) do
+    config_key =
       if local_only do
         :local
       else
         :federated
       end
 
-    restrict? = Pleroma.Config.get([:restrict_unauthenticated, :timelines, cfg_key])
+    Pleroma.Config.get([:restrict_unauthenticated, :timelines, config_key])
+  end
 
-    if restrict? and is_nil(user) do
-      render_error(conn, :unauthorized, "authorization required for timeline view")
+  # GET /api/v1/timelines/public
+  def public(%{assigns: %{user: user}} = conn, params) do
+    local_only = params[:local]
+
+    if is_nil(user) and restrict_unauthenticated?(local_only) do
+      fail_on_bad_auth(conn)
     else
       activities =
         params
@@ -123,6 +125,10 @@ defmodule Pleroma.Web.MastodonAPI.TimelineController do
     end
   end
 
+  defp fail_on_bad_auth(conn) do
+    render_error(conn, :unauthorized, "authorization required for timeline view")
+  end
+
   defp hashtag_fetching(params, user, local_only) do
     tags =
       [params[:tag], params[:any]]
@@ -157,15 +163,20 @@ defmodule Pleroma.Web.MastodonAPI.TimelineController do
   # GET /api/v1/timelines/tag/:tag
   def hashtag(%{assigns: %{user: user}} = conn, params) do
     local_only = params[:local]
-    activities = hashtag_fetching(params, user, local_only)
 
-    conn
-    |> add_link_headers(activities, %{"local" => local_only})
-    |> render("index.json",
-      activities: activities,
-      for: user,
-      as: :activity
-    )
+    if is_nil(user) and restrict_unauthenticated?(local_only) do
+      fail_on_bad_auth(conn)
+    else
+      activities = hashtag_fetching(params, user, local_only)
+
+      conn
+      |> add_link_headers(activities, %{"local" => local_only})
+      |> render("index.json",
+        activities: activities,
+        for: user,
+        as: :activity
+      )
+    end
   end
 
   # GET /api/v1/timelines/list/:list_id
diff --git a/test/web/mastodon_api/controllers/timeline_controller_test.exs b/test/web/mastodon_api/controllers/timeline_controller_test.exs
index f069390c1..50e0d783d 100644
--- a/test/web/mastodon_api/controllers/timeline_controller_test.exs
+++ b/test/web/mastodon_api/controllers/timeline_controller_test.exs
@@ -418,4 +418,78 @@ defmodule Pleroma.Web.MastodonAPI.TimelineControllerTest do
       assert [status_none] == json_response_and_validate_schema(all_test, :ok)
     end
   end
+
+  describe "hashtag timeline handling of :restrict_unauthenticated setting" do
+    setup do
+      user = insert(:user)
+      {:ok, activity1} = CommonAPI.post(user, %{status: "test #tag1"})
+      {:ok, _activity2} = CommonAPI.post(user, %{status: "test #tag1"})
+
+      activity1
+      |> Ecto.Changeset.change(%{local: false})
+      |> Pleroma.Repo.update()
+
+      base_uri = "/api/v1/timelines/tag/tag1"
+      error_response = %{"error" => "authorization required for timeline view"}
+
+      %{base_uri: base_uri, error_response: error_response}
+    end
+
+    defp ensure_authenticated_access(base_uri) do
+      %{conn: auth_conn} = oauth_access(["read:statuses"])
+
+      res_conn = get(auth_conn, "#{base_uri}?local=true")
+      assert length(json_response(res_conn, 200)) == 1
+
+      res_conn = get(auth_conn, "#{base_uri}?local=false")
+      assert length(json_response(res_conn, 200)) == 2
+    end
+
+    test "with `%{local: true, federated: true}`, returns 403 for unauthenticated users", %{
+      conn: conn,
+      base_uri: base_uri,
+      error_response: error_response
+    } do
+      clear_config([:restrict_unauthenticated, :timelines, :local], true)
+      clear_config([:restrict_unauthenticated, :timelines, :federated], true)
+
+      for local <- [true, false] do
+        res_conn = get(conn, "#{base_uri}?local=#{local}")
+
+        assert json_response(res_conn, :unauthorized) == error_response
+      end
+
+      ensure_authenticated_access(base_uri)
+    end
+
+    test "with `%{local: false, federated: true}`, forbids unauthenticated access to federated timeline",
+         %{conn: conn, base_uri: base_uri, error_response: error_response} do
+      clear_config([:restrict_unauthenticated, :timelines, :local], false)
+      clear_config([:restrict_unauthenticated, :timelines, :federated], true)
+
+      res_conn = get(conn, "#{base_uri}?local=true")
+      assert length(json_response(res_conn, 200)) == 1
+
+      res_conn = get(conn, "#{base_uri}?local=false")
+      assert json_response(res_conn, :unauthorized) == error_response
+
+      ensure_authenticated_access(base_uri)
+    end
+
+    test "with `%{local: true, federated: false}`, forbids unauthenticated access to public timeline" <>
+           "(but not to local public activities which are delivered as part of federated timeline)",
+         %{conn: conn, base_uri: base_uri, error_response: error_response} do
+      clear_config([:restrict_unauthenticated, :timelines, :local], true)
+      clear_config([:restrict_unauthenticated, :timelines, :federated], false)
+
+      res_conn = get(conn, "#{base_uri}?local=true")
+      assert json_response(res_conn, :unauthorized) == error_response
+
+      # Note: local activities get delivered as part of federated timeline
+      res_conn = get(conn, "#{base_uri}?local=false")
+      assert length(json_response(res_conn, 200)) == 2
+
+      ensure_authenticated_access(base_uri)
+    end
+  end
 end