diff --git a/changelogs/unreleased/georgekoltsov-64311-set-visibility-private-if-internal-restricted.yml b/changelogs/unreleased/georgekoltsov-64311-set-visibility-private-if-internal-restricted.yml
new file mode 100644
index 00000000000..18af16e5216
--- /dev/null
+++ b/changelogs/unreleased/georgekoltsov-64311-set-visibility-private-if-internal-restricted.yml
@@ -0,0 +1,5 @@
+---
+title: Set visibility level 'Private' for restricted 'Internal' imported projects when 'Internal' visibility setting is restricted in admin settings
+merge_request: 30522
+author:
+type: other
diff --git a/doc/user/project/settings/import_export.md b/doc/user/project/settings/import_export.md
index 7241df613eb..35d5320c0b1 100644
--- a/doc/user/project/settings/import_export.md
+++ b/doc/user/project/settings/import_export.md
@@ -116,3 +116,8 @@ For more details on the specific data persisted in a project export, see the
 
 1. Click on **Import project** to begin importing. Your newly imported project
    page will appear soon.
+
+NOTE: **Note:**
+If use of the `Internal` visibility level
+[is restricted](../../../public_access/public_access.md#restricting-the-use-of-public-or-internal-projects),
+all imported projects are given the visibility of `Private`.
diff --git a/lib/gitlab/import_export/project_tree_restorer.rb b/lib/gitlab/import_export/project_tree_restorer.rb
index dec99c23a2d..91fe4e5d074 100644
--- a/lib/gitlab/import_export/project_tree_restorer.rb
+++ b/lib/gitlab/import_export/project_tree_restorer.rb
@@ -130,6 +130,7 @@ module Gitlab
       def visibility_level
         level = override_params['visibility_level'] || json_params['visibility_level'] || @project.visibility_level
         level = @project.group.visibility_level if @project.group && level.to_i > @project.group.visibility_level
+        level = Gitlab::VisibilityLevel::PRIVATE if level == Gitlab::VisibilityLevel::INTERNAL && Gitlab::CurrentSettings.restricted_visibility_levels.include?(level)
 
         { 'visibility_level' => level }
       end
diff --git a/spec/lib/gitlab/import_export/project_tree_restorer_spec.rb b/spec/lib/gitlab/import_export/project_tree_restorer_spec.rb
index e6ce3f1bcea..3b7de185cf1 100644
--- a/spec/lib/gitlab/import_export/project_tree_restorer_spec.rb
+++ b/spec/lib/gitlab/import_export/project_tree_restorer_spec.rb
@@ -496,6 +496,18 @@ describe Gitlab::ImportExport::ProjectTreeRestorer do
       end
     end
 
+    context 'with restricted internal visibility' do
+      describe 'internal project' do
+        let(:visibility) { Gitlab::VisibilityLevel::INTERNAL }
+
+        it 'uses private visibility' do
+          stub_application_setting(restricted_visibility_levels: [Gitlab::VisibilityLevel::INTERNAL])
+
+          expect(restorer.restored_project.visibility_level).to eq(Gitlab::VisibilityLevel::PRIVATE)
+        end
+      end
+    end
+
     context 'with group visibility' do
       before do
         group = create(:group, visibility_level: group_visibility)
@@ -528,6 +540,14 @@ describe Gitlab::ImportExport::ProjectTreeRestorer do
         it 'uses the group visibility' do
           expect(restorer.restored_project.visibility_level).to eq(group_visibility)
         end
+
+        context 'with restricted internal visibility' do
+          it 'sets private visibility' do
+            stub_application_setting(restricted_visibility_levels: [Gitlab::VisibilityLevel::INTERNAL])
+
+            expect(restorer.restored_project.visibility_level).to eq(Gitlab::VisibilityLevel::PRIVATE)
+          end
+        end
       end
     end
   end