diff --git a/binaries/data/mods/public/gui/session/menu.js b/binaries/data/mods/public/gui/session/menu.js
index 8356384f68..38934dc26a 100644
--- a/binaries/data/mods/public/gui/session/menu.js
+++ b/binaries/data/mods/public/gui/session/menu.js
@@ -209,6 +209,8 @@ function openOptions()
 
 function openChat()
 {
+	updateTeamCheckbox(false);
+
 	Engine.GetGUIObjectByName("chatInput").focus(); // Grant focus to the input area
 	Engine.GetGUIObjectByName("chatDialogPanel").hidden = false;
 }
@@ -220,6 +222,14 @@ function closeChat()
 	Engine.GetGUIObjectByName("chatDialogPanel").hidden = true;
 }
 
+function updateTeamCheckbox(check)
+{
+	Engine.GetGUIObjectByName("toggleTeamChatLabel").hidden = g_IsObserver;
+	let toggleTeamChat = Engine.GetGUIObjectByName("toggleTeamChat");
+	toggleTeamChat.hidden = g_IsObserver;
+	toggleTeamChat.checked = !g_IsObserver && check;
+}
+
 function toggleChatWindow(teamChat)
 {
 	var chatWindow = Engine.GetGUIObjectByName("chatDialogPanel");
@@ -237,7 +247,7 @@ function toggleChatWindow(teamChat)
 		chatInput.caption = ""; // Clear chat input
 	}
 
-	Engine.GetGUIObjectByName("toggleTeamChat").checked = teamChat;
+	updateTeamCheckbox(teamChat);
 	chatWindow.hidden = !chatWindow.hidden;
 }
 
diff --git a/binaries/data/mods/public/gui/session/messages.js b/binaries/data/mods/public/gui/session/messages.js
index 83de19361f..9eff857d06 100644
--- a/binaries/data/mods/public/gui/session/messages.js
+++ b/binaries/data/mods/public/gui/session/messages.js
@@ -362,7 +362,8 @@ function submitChatInput()
 			}
 		}
 
-		if (!isCheat)
+		// Observers should only send messages to "/all"
+		if (!isCheat && (!g_IsObserver || text.indexOf("/") == -1 || text.indexOf("/all ") == 0))
 		{
 			if (Engine.GetGUIObjectByName("toggleTeamChat").checked)
 				text = "/team " + text;
diff --git a/binaries/data/mods/public/gui/session/session.xml b/binaries/data/mods/public/gui/session/session.xml
index 72a154b707..069515db6a 100644
--- a/binaries/data/mods/public/gui/session/session.xml
+++ b/binaries/data/mods/public/gui/session/session.xml
@@ -205,7 +205,7 @@
 		</object>
 
 		<object name="toggleTeamChat" size="30%+22 100%-36 30%+40 100%-6" type="checkbox" style="ModernTickBox"/>
-		<object size="30%+40 100%-40 60%+16 100%-12" type="text"  style="ModernLeftLabelText">
+		<object name="toggleTeamChatLabel" size="30%+40 100%-40 60%+16 100%-12" type="text" style="ModernLeftLabelText">
 			<translatableAttribute id="caption">Team Only</translatableAttribute>
 		</object>