diff --git a/crates/cli/src/cli/simnet/mod.rs b/crates/cli/src/cli/simnet/mod.rs
index 3c745b7a..2c2228e6 100644
--- a/crates/cli/src/cli/simnet/mod.rs
+++ b/crates/cli/src/cli/simnet/mod.rs
@@ -452,6 +452,7 @@ async fn write_and_execute_iac(
         accounts,
         accounts_dir,
         clones,
+        generate_subgraphs,
     }) = deployment
     {
         if let Some(clones) = clones.as_ref() {
@@ -483,6 +484,7 @@ async fn write_and_execute_iac(
                 &programs,
                 &base_location,
                 cmd.skip_runbook_generation_prompts,
+                generate_subgraphs,
             )?;
         }
 
@@ -500,6 +502,7 @@ async fn write_and_execute_iac(
                 &genesis_accounts,
                 &accounts,
                 &accounts_dir,
+                generate_subgraphs,
             )?);
         } else {
             let runbooks_ids_to_execute = cmd.runbooks.clone();
diff --git a/crates/cli/src/scaffold/anchor.rs b/crates/cli/src/scaffold/anchor.rs
index aa122efa..4a7ea1b4 100644
--- a/crates/cli/src/scaffold/anchor.rs
+++ b/crates/cli/src/scaffold/anchor.rs
@@ -18,6 +18,27 @@ use crate::{
     types::Framework,
 };
 
+/// Determines if subgraphs should be generated based on the anchor version.
+/// Subgraphs are only supported for Anchor >= 0.26.0
+fn should_generate_subgraphs(anchor_version: &Option<String>) -> bool {
+    if let Some(version) = anchor_version {
+        let version_parts: Vec<&str> = version.split('.').collect();
+        if version_parts.len() >= 2 {
+            if let (Ok(major), Ok(minor)) = (
+                version_parts[0].parse::<u32>(),
+                version_parts[1].parse::<u32>(),
+            ) {
+                // Disable subgraph generation for versions < 0.26.0
+                if major == 0 && minor < 26 {
+                    return false;
+                }
+            }
+        }
+    }
+    // If no version specified or parsing fails, assume subgraphs should be generated
+    true
+}
+
 pub fn try_get_programs_from_project(
     base_location: FileLocation,
     test_suite_paths: &[String],
@@ -131,6 +152,7 @@ pub fn try_get_programs_from_project(
             } else {
                 Some(clones)
             },
+            should_generate_subgraphs(&manifest.toolchain.anchor_version),
         )))
     } else {
         Ok(None)
diff --git a/crates/cli/src/scaffold/mod.rs b/crates/cli/src/scaffold/mod.rs
index 452d6c91..4e6815ad 100644
--- a/crates/cli/src/scaffold/mod.rs
+++ b/crates/cli/src/scaffold/mod.rs
@@ -35,6 +35,7 @@ pub struct ProgramFrameworkData {
     pub accounts: Option<Vec<AccountEntry>>,
     pub accounts_dir: Option<Vec<AccountDirEntry>>,
     pub clones: Option<Vec<String>>,
+    pub generate_subgraphs: bool,
 }
 
 impl ProgramFrameworkData {
@@ -45,6 +46,7 @@ impl ProgramFrameworkData {
         accounts: Option<Vec<AccountEntry>>,
         accounts_dir: Option<Vec<AccountDirEntry>>,
         clones: Option<Vec<String>>,
+        generate_subgraphs: bool,
     ) -> Self {
         Self {
             framework,
@@ -53,6 +55,7 @@ impl ProgramFrameworkData {
             accounts,
             accounts_dir,
             clones,
+            generate_subgraphs,
         }
     }
 
@@ -64,6 +67,7 @@ impl ProgramFrameworkData {
             accounts: None,
             accounts_dir: None,
             clones: None,
+            generate_subgraphs: true,
         }
     }
 }
@@ -134,6 +138,7 @@ pub fn scaffold_in_memory_iac(
     genesis_accounts: &Option<Vec<GenesisEntry>>,
     accounts: &Option<Vec<AccountEntry>>,
     accounts_dir: &Option<Vec<AccountDirEntry>>,
+    generate_subgraphs: bool,
 ) -> Result<(String, RunbookSources, WorkspaceManifest), String> {
     let mut deployment_runbook_src: String = String::new();
 
@@ -151,15 +156,17 @@ pub fn scaffold_in_memory_iac(
                 .get_in_memory_interpolated_program_deployment_template(&program_metadata.name),
         );
 
-        if let Some(subgraph_iac) = &framework
-            .get_interpolated_subgraph_template(
-                &program_metadata.name,
-                program_metadata.idl.as_ref(),
-            )
-            .ok()
-            .flatten()
-        {
-            deployment_runbook_src.push_str(subgraph_iac);
+        if generate_subgraphs {
+            if let Some(subgraph_iac) = &framework
+                .get_interpolated_subgraph_template(
+                    &program_metadata.name,
+                    program_metadata.idl.as_ref(),
+                )
+                .ok()
+                .flatten()
+            {
+                deployment_runbook_src.push_str(subgraph_iac);
+            }
         }
     }
 
@@ -199,6 +206,7 @@ pub fn scaffold_iac_layout(
     programs: &[ProgramMetadata],
     base_location: &FileLocation,
     auto_generate_runbooks: bool,
+    generate_subgraphs: bool,
 ) -> Result<(), String> {
     let mut target_location = base_location.clone();
     target_location.append_path("target")?;
@@ -296,10 +304,12 @@ pub fn scaffold_iac_layout(
             &framework.get_interpolated_program_deployment_template(&program_metadata.name),
         );
 
-        subgraph_runbook_src = framework.get_interpolated_subgraph_template(
-            &program_metadata.name,
-            program_metadata.idl.as_ref(),
-        )?;
+        if generate_subgraphs {
+            subgraph_runbook_src = framework.get_interpolated_subgraph_template(
+                &program_metadata.name,
+                program_metadata.idl.as_ref(),
+            )?;
+        }
 
         // Configure initialize instruction
         // let args = vec![