diff --git a/eslint-suppressions.json b/eslint-suppressions.json
index 30d3fa59a8b..3f784352634 100644
--- a/eslint-suppressions.json
+++ b/eslint-suppressions.json
@@ -552,7 +552,7 @@
   },
   "packages/assets-controllers/src/selectors/token-selectors.ts": {
     "@typescript-eslint/explicit-function-return-type": {
-      "count": 25
+      "count": 24
     },
     "@typescript-eslint/prefer-nullish-coalescing": {
       "count": 1
diff --git a/packages/assets-controllers/CHANGELOG.md b/packages/assets-controllers/CHANGELOG.md
index 48312a9ce0e..21fd6bc8681 100644
--- a/packages/assets-controllers/CHANGELOG.md
+++ b/packages/assets-controllers/CHANGELOG.md
@@ -13,6 +13,10 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ### Changed
 
+- Add `useExternalServices` option to `selectAssetsBySelectedAccountGroup` and `selectAllAssets` selectors ([#7545](https://github.com/MetaMask/core/pull/7545))
+  - When `useExternalServices` is `false`, non-EVM (multichain) assets are excluded from the result
+  - This allows callers to respect the basic functionality / external services toggle
+  - Defaults to `true` to maintain backward compatibility
 - **BREAKING:** `AccountTrackerController` now requires `KeyringController:getState` action and `KeyringController:lock` event in addition to existing allowed actions and events ([#7492](https://github.com/MetaMask/core/pull/7492))
   - Added `#isLocked` property to track keyring lock state, initialized from `KeyringController:getState`
   - Added `isActive` getter that returns `true` when keyring is unlocked and user is onboarded
diff --git a/packages/assets-controllers/src/selectors/token-selectors.test.ts b/packages/assets-controllers/src/selectors/token-selectors.test.ts
index 0bd2892f3bb..a8593ec1d35 100644
--- a/packages/assets-controllers/src/selectors/token-selectors.test.ts
+++ b/packages/assets-controllers/src/selectors/token-selectors.test.ts
@@ -922,6 +922,54 @@ describe('token-selectors', () => {
       expect(result).toStrictEqual(expectedMockResult);
     });
 
+    describe('useExternalServices option', () => {
+      it('excludes non-EVM (multichain) assets when useExternalServices is false', () => {
+        const result = selectAssetsBySelectedAccountGroup(mockedMergedState, {
+          filterTronStakedTokens: true,
+          useExternalServices: false,
+        });
+
+        // Should only include EVM chains (0x1, 0xa) - no Solana
+        expect(Object.keys(result)).toStrictEqual(['0x1', '0xa']);
+
+        // Verify EVM assets are still present
+        expect(result['0x1']).toHaveLength(3); // GHO, SUSHI, ETH native
+        expect(result['0xa']).toHaveLength(2); // USDC, ETH native
+
+        // Verify Solana assets are excluded
+        expect(
+          result['solana:5eykt4UsFv8P8NJdTREpY1vzqKqZKvdp'],
+        ).toBeUndefined();
+      });
+
+      it('includes non-EVM (multichain) assets when useExternalServices is true', () => {
+        const result = selectAssetsBySelectedAccountGroup(mockedMergedState, {
+          filterTronStakedTokens: true,
+          useExternalServices: true,
+        });
+
+        // Should include all chains including Solana
+        expect(Object.keys(result)).toContain(
+          'solana:5eykt4UsFv8P8NJdTREpY1vzqKqZKvdp',
+        );
+
+        // Verify Solana assets are present
+        expect(result['solana:5eykt4UsFv8P8NJdTREpY1vzqKqZKvdp']).toHaveLength(
+          2,
+        ); // SOL native, JUP token
+      });
+
+      it('uses default useExternalServices: true when not specified', () => {
+        // Call without opts - should use defaults (useExternalServices: true)
+        const result = selectAssetsBySelectedAccountGroup(mockedMergedState);
+
+        // Should include Solana assets (multichain)
+        expect(Object.keys(result)).toContain(
+          'solana:5eykt4UsFv8P8NJdTREpY1vzqKqZKvdp',
+        );
+      });
+    });
+
     const arrangeTronState = () => {
       const state = cloneDeep(mockedMergedState);
 
@@ -1018,6 +1066,7 @@ describe('token-selectors', () => {
 
       const result = selectAssetsBySelectedAccountGroup(state, {
         filterTronStakedTokens: false,
+        useExternalServices: true,
       });
 
       expect(result[TrxScope.Mainnet].length > 1).toBe(true);
diff --git a/packages/assets-controllers/src/selectors/token-selectors.ts b/packages/assets-controllers/src/selectors/token-selectors.ts
index a1772dfa6cd..51272252cd4 100644
--- a/packages/assets-controllers/src/selectors/token-selectors.ts
+++ b/packages/assets-controllers/src/selectors/token-selectors.ts
@@ -334,6 +334,18 @@ const selectAllEvmAssets = createAssetListSelector(
   },
 );
 
+export type SelectAllAssetsOpts = {
+  /**
+   * When false, non-EVM (multichain) assets are excluded.
+   * This should be set to false when basic functionality / external services are disabled.
+   */
+  useExternalServices: boolean;
+};
+
+const defaultSelectAllAssetsOpts: SelectAllAssetsOpts = {
+  useExternalServices: true,
+};
+
 const selectAllMultichainAssets = createAssetListSelector(
   [
     selectAccountsToGroupIdMap,
@@ -343,6 +355,10 @@ const selectAllMultichainAssets = createAssetListSelector(
     (state) => state.balances,
     (state) => state.conversionRates,
     (state) => state.currentCurrency,
+    (
+      _state,
+      opts: SelectAllAssetsOpts = defaultSelectAllAssetsOpts,
+    ): SelectAllAssetsOpts => opts,
   ],
   (
     accountsMap,
@@ -352,7 +368,13 @@ const selectAllMultichainAssets = createAssetListSelector(
     multichainBalances,
     multichainConversionRates,
     currentCurrency,
+    opts,
   ) => {
+    // Short-circuit when external services are disabled - no multichain assets needed
+    if (!opts.useExternalServices) {
+      return {};
+    }
+
     const groupAssets: AssetsByAccountGroup = {};
 
     for (const [accountId, accountAssets] of Object.entries(multichainTokens)) {
@@ -444,7 +466,10 @@ const selectAllMultichainAssets = createAssetListSelector(
 export const selectAllAssets = createAssetListSelector(
   [
     selectAllEvmAssets,
-    selectAllMultichainAssets,
+    (
+      state,
+      opts: SelectAllAssetsOpts = defaultSelectAllAssetsOpts,
+    ): AssetsByAccountGroup => selectAllMultichainAssets(state, opts),
     selectAllEvmAccountNativeBalances,
   ],
   (evmAssets, multichainAssets, evmAccountNativeBalances) => {
@@ -462,10 +487,16 @@ export const selectAllAssets = createAssetListSelector(
 
 export type SelectAccountGroupAssetOpts = {
   filterTronStakedTokens: boolean;
+  /**
+   * When false, non-EVM chains are filtered out.
+   * This should be set to false when basic functionality / external services are disabled.
+   */
+  useExternalServices: boolean;
 };
 
 const defaultSelectAccountGroupAssetOpts: SelectAccountGroupAssetOpts = {
   filterTronStakedTokens: true,
+  useExternalServices: true,
 };
 
 const filterTronStakedTokens = (assetsByAccountGroup: AccountGroupAssets) => {
@@ -496,12 +527,16 @@ const filterTronStakedTokens = (assetsByAccountGroup: AccountGroupAssets) => {
 
 export const selectAssetsBySelectedAccountGroup = createAssetListSelector(
   [
-    selectAllAssets,
+    (
+      state,
+      opts: SelectAccountGroupAssetOpts = defaultSelectAccountGroupAssetOpts,
+    ): AssetsByAccountGroup =>
+      selectAllAssets(state, { useExternalServices: opts.useExternalServices }),
     (state) => state.accountTree,
     (
       _state,
       opts: SelectAccountGroupAssetOpts = defaultSelectAccountGroupAssetOpts,
-    ) => opts,
+    ): SelectAccountGroupAssetOpts => opts,
   ],
   (groupAssets, accountTree, opts) => {
     const { selectedAccountGroup } = accountTree;