diff --git a/src/primaite/game/agent/observations/nic_observations.py b/src/primaite/game/agent/observations/nic_observations.py
index 002ee4da..ed2bb7f9 100644
--- a/src/primaite/game/agent/observations/nic_observations.py
+++ b/src/primaite/game/agent/observations/nic_observations.py
@@ -1,19 +1,23 @@
 # © Crown-owned copyright 2024, Defence Science and Technology Laboratory UK
 from __future__ import annotations
 
-from typing import Dict, Optional
+from typing import ClassVar, Dict, Optional
 
 from gymnasium import spaces
 from gymnasium.core import ObsType
 
 from primaite.game.agent.observations.observations import AbstractObservation, WhereType
 from primaite.game.agent.utils import access_from_nested_dict, NOT_PRESENT_IN_STATE
+from primaite.simulator.network.nmne import NMNEConfig
 from primaite.simulator.network.transmission.transport_layer import Port
 
 
 class NICObservation(AbstractObservation, identifier="NETWORK_INTERFACE"):
     """Status information about a network interface within the simulation environment."""
 
+    capture_nmne: ClassVar[bool] = NMNEConfig().capture_nmne
+    "A Boolean specifying whether malicious network events should be captured."
+
     class ConfigSchema(AbstractObservation.ConfigSchema):
         """Configuration schema for NICObservation."""
 
@@ -164,7 +168,7 @@ class NICObservation(AbstractObservation, identifier="NETWORK_INTERFACE"):
                         for port in self.monitored_traffic[protocol]:
                             obs["TRAFFIC"][protocol][Port[port].value] = {"inbound": 0, "outbound": 0}
 
-        if self.include_nmne:
+        if self.capture_nmne and self.include_nmne:
             obs.update({"NMNE": {}})
             direction_dict = nic_state["nmne"].get("direction", {})
             inbound_keywords = direction_dict.get("inbound", {}).get("keywords", {})
diff --git a/src/primaite/game/game.py b/src/primaite/game/game.py
index 0e7b8c23..e683772b 100644
--- a/src/primaite/game/game.py
+++ b/src/primaite/game/game.py
@@ -9,6 +9,7 @@ from pydantic import BaseModel, ConfigDict
 from primaite import DEFAULT_BANDWIDTH, getLogger
 from primaite.game.agent.actions import ActionManager
 from primaite.game.agent.interface import AbstractAgent, AgentSettings, ProxyAgent
+from primaite.game.agent.observations import NICObservation
 from primaite.game.agent.observations.observation_manager import ObservationManager
 from primaite.game.agent.rewards import RewardFunction, SharedReward
 from primaite.game.agent.scripted_agents.data_manipulation_bot import DataManipulationAgent
@@ -279,6 +280,7 @@ class PrimaiteGame:
         links_cfg = network_config.get("links", [])
         # Set the NMNE capture config
         NetworkInterface.nmne_config = NMNEConfig(**network_config.get("nmne_config", {}))
+        NICObservation.capture_nmne = NMNEConfig(**network_config.get("nmne_config", {})).capture_nmne
 
         for node_cfg in nodes_cfg:
             n_type = node_cfg["type"]
diff --git a/tests/integration_tests/game_layer/observations/test_nic_observations.py b/tests/integration_tests/game_layer/observations/test_nic_observations.py
index ef789ba7..ced598f0 100644
--- a/tests/integration_tests/game_layer/observations/test_nic_observations.py
+++ b/tests/integration_tests/game_layer/observations/test_nic_observations.py
@@ -77,6 +77,14 @@ def test_nic(simulation):
 
     nic_obs = NICObservation(where=["network", "nodes", pc.hostname, "NICs", 1], include_nmne=True)
 
+    # The Simulation object created by the fixture also creates the
+    # NICObservation class with the NICObservation.capture_nmnme class variable
+    # set to False. Under normal (non-test) circumstances this class variable
+    # is set from a config file such as data_manipulation.yaml. So although
+    # capture_nmne is set to True in the NetworkInterface class it's still False
+    # in the NICObservation class so we set it now.
+    nic_obs.capture_nmne = True
+
     # Set the NMNE configuration to capture DELETE/ENCRYPT queries as MNEs
     nmne_config = {
         "capture_nmne": True,  # Enable the capture of MNEs
diff --git a/tests/integration_tests/network/test_capture_nmne.py b/tests/integration_tests/network/test_capture_nmne.py
index debf5b1c..1499df9a 100644
--- a/tests/integration_tests/network/test_capture_nmne.py
+++ b/tests/integration_tests/network/test_capture_nmne.py
@@ -1,5 +1,11 @@
 # © Crown-owned copyright 2024, Defence Science and Technology Laboratory UK
+from itertools import product
+
+import yaml
+
+from primaite.config.load import data_manipulation_config_path
 from primaite.game.agent.observations.nic_observations import NICObservation
+from primaite.session.environment import PrimaiteGymEnv
 from primaite.simulator.network.container import Network
 from primaite.simulator.network.hardware.nodes.host.host_node import NIC
 from primaite.simulator.network.hardware.nodes.host.server import Server
@@ -277,3 +283,19 @@ def test_capture_nmne_observations(uc2_network: Network):
         assert web_nic_obs["outbound"] == expected_nmne
         assert db_nic_obs["inbound"] == expected_nmne
         uc2_network.apply_timestep(timestep=0)
+
+
+def test_nmne_parameter_settings():
+    """
+    Check that the four permutations of the values of capture_nmne and
+    include_nmne work as expected.
+    """
+
+    with open(data_manipulation_config_path(), "r") as f:
+        cfg = yaml.safe_load(f)
+
+    DEFENDER = 3
+    for capture, include in product([True, False], [True, False]):
+        cfg["simulation"]["network"]["nmne_config"]["capture_nmne"] = capture
+        cfg["agents"][DEFENDER]["observation_space"]["options"]["components"][0]["options"]["include_nmne"] = include
+        PrimaiteGymEnv(env_config=cfg)