diff --git a/src/diffusers/modular_pipelines/modular_pipeline.py b/src/diffusers/modular_pipelines/modular_pipeline.py
index 8a05cce209c5..ccc5b11c2a7d 100644
--- a/src/diffusers/modular_pipelines/modular_pipeline.py
+++ b/src/diffusers/modular_pipelines/modular_pipeline.py
@@ -290,7 +290,7 @@ def outputs(self) -> List[OutputParam]:
     def from_pretrained(
         cls,
         pretrained_model_name_or_path: str,
-        trust_remote_code: Optional[bool] = None,
+        trust_remote_code: bool = False,
         **kwargs,
     ):
         hub_kwargs_names = [
diff --git a/src/diffusers/utils/constants.py b/src/diffusers/utils/constants.py
index 2d9e16f87e47..d9867fb8758d 100644
--- a/src/diffusers/utils/constants.py
+++ b/src/diffusers/utils/constants.py
@@ -45,6 +45,7 @@
 DIFFUSERS_ATTN_CHECKS = os.getenv("DIFFUSERS_ATTN_CHECKS", "0") in ENV_VARS_TRUE_VALUES
 DEFAULT_HF_PARALLEL_LOADING_WORKERS = 8
 HF_ENABLE_PARALLEL_LOADING = os.environ.get("HF_ENABLE_PARALLEL_LOADING", "").upper() in ENV_VARS_TRUE_VALUES
+DIFFUSERS_DISABLE_REMOTE_CODE = os.getenv("DIFFUSERS_DISABLE_REMOTE_CODE", "false").lower() in ENV_VARS_TRUE_VALUES
 
 # Below should be `True` if the current version of `peft` and `transformers` are compatible with
 # PEFT backend. Will automatically fall back to PEFT backend if the correct versions of the libraries are
diff --git a/src/diffusers/utils/dynamic_modules_utils.py b/src/diffusers/utils/dynamic_modules_utils.py
index 74ed240bf015..674eb65773f0 100644
--- a/src/diffusers/utils/dynamic_modules_utils.py
+++ b/src/diffusers/utils/dynamic_modules_utils.py
@@ -20,7 +20,6 @@
 import os
 import re
 import shutil
-import signal
 import sys
 import threading
 from pathlib import Path
@@ -34,6 +33,7 @@
 
 from .. import __version__
 from . import DIFFUSERS_DYNAMIC_MODULE_NAME, HF_MODULES_CACHE, logging
+from .constants import DIFFUSERS_DISABLE_REMOTE_CODE
 
 
 logger = logging.get_logger(__name__)  # pylint: disable=invalid-name
@@ -159,52 +159,25 @@ def check_imports(filename):
     return get_relative_imports(filename)
 
 
-def _raise_timeout_error(signum, frame):
-    raise ValueError(
-        "Loading this model requires you to execute custom code contained in the model repository on your local "
-        "machine. Please set the option `trust_remote_code=True` to permit loading of this model."
-    )
-
-
 def resolve_trust_remote_code(trust_remote_code, model_name, has_remote_code):
-    if trust_remote_code is None:
-        if has_remote_code and TIME_OUT_REMOTE_CODE > 0:
-            prev_sig_handler = None
-            try:
-                prev_sig_handler = signal.signal(signal.SIGALRM, _raise_timeout_error)
-                signal.alarm(TIME_OUT_REMOTE_CODE)
-                while trust_remote_code is None:
-                    answer = input(
-                        f"The repository for {model_name} contains custom code which must be executed to correctly "
-                        f"load the model. You can inspect the repository content at https://hf.co/{model_name}.\n"
-                        f"You can avoid this prompt in future by passing the argument `trust_remote_code=True`.\n\n"
-                        f"Do you wish to run the custom code? [y/N] "
-                    )
-                    if answer.lower() in ["yes", "y", "1"]:
-                        trust_remote_code = True
-                    elif answer.lower() in ["no", "n", "0", ""]:
-                        trust_remote_code = False
-                signal.alarm(0)
-            except Exception:
-                # OS which does not support signal.SIGALRM
-                raise ValueError(
-                    f"The repository for {model_name} contains custom code which must be executed to correctly "
-                    f"load the model. You can inspect the repository content at https://hf.co/{model_name}.\n"
-                    f"Please pass the argument `trust_remote_code=True` to allow custom code to be run."
-                )
-            finally:
-                if prev_sig_handler is not None:
-                    signal.signal(signal.SIGALRM, prev_sig_handler)
-                    signal.alarm(0)
-        elif has_remote_code:
-            # For the CI which puts the timeout at 0
-            _raise_timeout_error(None, None)
+    trust_remote_code = trust_remote_code and not DIFFUSERS_DISABLE_REMOTE_CODE
+    if DIFFUSERS_DISABLE_REMOTE_CODE:
+        logger.warning(
+            "Downloading remote code is disabled globally via the DIFFUSERS_DISABLE_REMOTE_CODE environment variable. Ignoring `trust_remote_code`."
+        )
 
     if has_remote_code and not trust_remote_code:
-        raise ValueError(
-            f"Loading {model_name} requires you to execute the configuration file in that"
-            " repo on your local machine. Make sure you have read the code there to avoid malicious use, then"
-            " set the option `trust_remote_code=True` to remove this error."
+        error_msg = f"The repository for {model_name} contains custom code. "
+        error_msg += (
+            "Downloading remote code is disabled globally via the DIFFUSERS_DISABLE_REMOTE_CODE environment variable."
+            if DIFFUSERS_DISABLE_REMOTE_CODE
+            else "Pass `trust_remote_code=True` to allow loading remote code modules."
+        )
+        raise ValueError(error_msg)
+
+    elif has_remote_code and trust_remote_code:
+        logger.warning(
+            f"`trust_remote_code` is enabled. Downloading code from {model_name}. Please ensure you trust the contents of this repository"
         )
 
     return trust_remote_code