diff --git a/backend/open_webui/routers/folders.py b/backend/open_webui/routers/folders.py
index f4132222b8..47ee642fd5 100644
--- a/backend/open_webui/routers/folders.py
+++ b/backend/open_webui/routers/folders.py
@@ -267,19 +267,22 @@ async def get_shared_folders(
     ]
 
     # Also include child folders of shared folders (inheritance)
-    seen_ids = {folder.id for folder in shared_folders}
+    result_by_id = {folder['id']: folder for folder in results}
     for folder in shared_folders:
         children = await Folders.get_children_folders_by_id_and_user_id(folder.id, folder.user_id, db=db)
         for child in children or []:
-            if child.id not in seen_ids:
-                seen_ids.add(child.id)
-                results.append(
-                    {
-                        **child.model_dump(),
-                        'owner_name': owner_names.get(child.user_id, 'Unknown'),
-                        'permission': 'write' if child.user_id == user.id else folder_perms[folder.id],
-                    }
-                )
+            permission = 'write' if folder.user_id == user.id or child.user_id == user.id else folder_perms[folder.id]
+            if child.id in result_by_id:
+                # A weaker direct grant must not hide inherited write access.
+                if permission == 'write':
+                    result_by_id[child.id]['permission'] = 'write'
+            else:
+                result_by_id[child.id] = {
+                    **child.model_dump(),
+                    'owner_name': owner_names.get(child.user_id, 'Unknown'),
+                    'permission': permission,
+                }
+                results.append(result_by_id[child.id])
 
     return results
 
diff --git a/src/lib/components/layout/Sidebar/Folders/FolderShareModal.svelte b/src/lib/components/layout/Sidebar/Folders/FolderShareModal.svelte
index fe34bfbbb4..e75036d534 100644
--- a/src/lib/components/layout/Sidebar/Folders/FolderShareModal.svelte
+++ b/src/lib/components/layout/Sidebar/Folders/FolderShareModal.svelte
@@ -2,6 +2,7 @@
 	import type { Writable } from 'svelte/store';
 	import type { i18n as i18nType } from 'i18next';
 	import { getContext } from 'svelte';
+	import { toast } from 'svelte-sonner';
 	const i18n = getContext<Writable<i18nType>>('i18n');
 
 	import Modal from '$lib/components/common/Modal.svelte';
@@ -38,15 +39,17 @@
 				shareMode = freshFolder.data?.share_mode ?? null;
 			}
 		} catch (e) {
-			console.error('Failed to load folder access grants', e);
+			toast.error(`${e}`);
 			accessGrants = folder?.access_grants ?? [];
+			shareMode = folder?.data?.share_mode ?? null;
 		} finally {
 			loading = false;
 		}
 	};
 
 	const handleAccessChange = async () => {
-		if (!folder) return;
+		if (!folder || loading) return;
+		loading = true;
 		try {
 			const res = await updateFolderAccessById(
 				localStorage.token,
@@ -56,10 +59,13 @@
 			);
 			if (res) {
 				accessGrants = res.access_grants ?? accessGrants;
+				toast.success($i18n.t('Saved'));
 			}
 		} catch (e) {
-			console.error('Failed to update folder access', e);
+			toast.error(`${e}`);
 			await loadAccessGrants();
+		} finally {
+			loading = false;
 		}
 	};
 </script>
@@ -81,9 +87,13 @@
 			</button>
 		</div>
 
-		<div class="w-full px-5 pb-4 dark:text-white">
+		<div class="w-full px-5 pb-4 dark:text-white" inert={loading} aria-busy={loading}>
 			<AccessControl
 				bind:accessGrants
+				labels={{
+					private: $i18n.t('Restricted'),
+					empty: folder?.parent_id ? $i18n.t('No direct access grants.') : undefined
+				}}
 				onChange={handleAccessChange}
 				accessRoles={['read', 'write']}
 				defaultPermission="write"
@@ -93,19 +103,23 @@
 				allowGroups={$user?.role === 'admin' ||
 					($user?.permissions?.access_grants?.allow_groups ?? true)}
 			>
-				{#if accessGrants.length > 0}
-					<label class="flex w-full items-center justify-between mt-3 mb-1 text-xs">
-						<span>{$i18n.t('Sharing mode')}</span>
-						<select
-							class="bg-transparent text-xs outline-none"
-							bind:value={shareMode}
-							on:change={handleAccessChange}
-						>
-							<option value={null}>{$i18n.t('Clone only')}</option>
-							<option value="continue">{$i18n.t('Allow replies')}</option>
-						</select>
-					</label>
+				{#if folder?.parent_id}
+					<p class="text-xs text-gray-500 dark:text-gray-400">
+						{$i18n.t('Access granted to parent folders also applies here.')}
+					</p>
 				{/if}
+				<label class="flex w-full items-center justify-between mt-3 mb-1 text-xs">
+					<span>{$i18n.t('Sharing mode')}</span>
+					<select
+						class="bg-transparent text-xs outline-none"
+						bind:value={shareMode}
+						disabled={loading}
+						on:change={handleAccessChange}
+					>
+						<option value={null}>{$i18n.t('Clone only')}</option>
+						<option value="continue">{$i18n.t('Allow replies')}</option>
+					</select>
+				</label>
 			</AccessControl>
 		</div>
 	</div>
diff --git a/src/lib/i18n/locales/en-US/translation.json b/src/lib/i18n/locales/en-US/translation.json
index fdbda68df3..754b71823c 100644
--- a/src/lib/i18n/locales/en-US/translation.json
+++ b/src/lib/i18n/locales/en-US/translation.json
@@ -88,6 +88,7 @@
 	"about the Roman Empire": "",
 	"Accept Autocomplete Generation\nJump to Prompt Variable": "",
 	"Access": "",
+	"Access granted to parent folders also applies here.": "Access granted to parent folders also applies here.",
 	"Access Control": "",
 	"Access Grants": "",
 	"Access level": "",
@@ -1719,6 +1720,7 @@
 	"Next version": "",
 	"No": "",
 	"No access grants. Private to you.": "",
+	"No direct access grants.": "No direct access grants.",
 	"No actions found": "",
 	"No activity data": "",
 	"No additional headers are sent unless configured.": "",