4 files changed, 121 insertions, 2 deletions

diff --git a/packages/cli/src/config/config.test.ts b/packages/cli/src/config/config.test.ts
index b670fbc8..1d83ccbc 100644
--- a/packages/cli/src/config/config.test.ts
+++ b/packages/cli/src/config/config.test.ts
@@ -1042,6 +1042,58 @@ describe('loadCliConfig folderTrustFeature', () => {
   });
 });
 
+describe('loadCliConfig folderTrust', () => {
+  const originalArgv = process.argv;
+  const originalEnv = { ...process.env };
+
+  beforeEach(() => {
+    vi.resetAllMocks();
+    vi.mocked(os.homedir).mockReturnValue('/mock/home/user');
+    process.env.GEMINI_API_KEY = 'test-api-key';
+  });
+
+  afterEach(() => {
+    process.argv = originalArgv;
+    process.env = originalEnv;
+    vi.restoreAllMocks();
+  });
+
+  it('should be false if folderTrustFeature is false and folderTrust is false', async () => {
+    process.argv = ['node', 'script.js'];
+    const settings: Settings = {
+      folderTrustFeature: false,
+      folderTrust: false,
+    };
+    const argv = await parseArguments();
+    const config = await loadCliConfig(settings, [], 'test-session', argv);
+    expect(config.getFolderTrust()).toBe(false);
+  });
+
+  it('should be false if folderTrustFeature is true and folderTrust is false', async () => {
+    process.argv = ['node', 'script.js'];
+    const argv = await parseArguments();
+    const settings: Settings = { folderTrustFeature: true, folderTrust: false };
+    const config = await loadCliConfig(settings, [], 'test-session', argv);
+    expect(config.getFolderTrust()).toBe(false);
+  });
+
+  it('should be false if folderTrustFeature is false and folderTrust is true', async () => {
+    process.argv = ['node', 'script.js'];
+    const argv = await parseArguments();
+    const settings: Settings = { folderTrustFeature: false, folderTrust: true };
+    const config = await loadCliConfig(settings, [], 'test-session', argv);
+    expect(config.getFolderTrust()).toBe(false);
+  });
+
+  it('should be true when folderTrustFeature is true and folderTrust is true', async () => {
+    process.argv = ['node', 'script.js'];
+    const argv = await parseArguments();
+    const settings: Settings = { folderTrustFeature: true, folderTrust: true };
+    const config = await loadCliConfig(settings, [], 'test-session', argv);
+    expect(config.getFolderTrust()).toBe(true);
+  });
+});
+
 vi.mock('fs', async () => {
   const actualFs = await vi.importActual<typeof fs>('fs');
   const MOCK_CWD1 = process.cwd();
diff --git a/packages/cli/src/config/config.ts b/packages/cli/src/config/config.ts
index a47d8301..3104e4c1 100644
--- a/packages/cli/src/config/config.ts
+++ b/packages/cli/src/config/config.ts
@@ -314,6 +314,8 @@ export async function loadCliConfig(
     argv.ideModeFeature ?? settings.ideModeFeature ?? false;
 
   const folderTrustFeature = settings.folderTrustFeature ?? false;
+  const folderTrustSetting = settings.folderTrust ?? false;
+  const folderTrust = folderTrustFeature && folderTrustSetting;
 
   const allExtensions = annotateActiveExtensions(
     extensions,
@@ -484,6 +486,7 @@ export async function loadCliConfig(
     ideModeFeature,
     chatCompression: settings.chatCompression,
     folderTrustFeature,
+    folderTrust,
   });
 }
 
diff --git a/packages/cli/src/config/settings.test.ts b/packages/cli/src/config/settings.test.ts
index f68b13e3..353a5783 100644
--- a/packages/cli/src/config/settings.test.ts
+++ b/packages/cli/src/config/settings.test.ts
@@ -310,6 +310,62 @@ describe('Settings Loading and Merging', () => {
       });
     });
 
+    it('should ignore folderTrust from workspace settings', () => {
+      (mockFsExistsSync as Mock).mockReturnValue(true);
+      const userSettingsContent = {
+        folderTrust: true,
+      };
+      const workspaceSettingsContent = {
+        folderTrust: false, // This should be ignored
+      };
+      const systemSettingsContent = {
+        // No folderTrust here
+      };
+
+      (fs.readFileSync as Mock).mockImplementation(
+        (p: fs.PathOrFileDescriptor) => {
+          if (p === getSystemSettingsPath())
+            return JSON.stringify(systemSettingsContent);
+          if (p === USER_SETTINGS_PATH)
+            return JSON.stringify(userSettingsContent);
+          if (p === MOCK_WORKSPACE_SETTINGS_PATH)
+            return JSON.stringify(workspaceSettingsContent);
+          return '{}';
+        },
+      );
+
+      const settings = loadSettings(MOCK_WORKSPACE_DIR);
+      expect(settings.merged.folderTrust).toBe(true); // User setting should be used
+    });
+
+    it('should use system folderTrust over user setting', () => {
+      (mockFsExistsSync as Mock).mockReturnValue(true);
+      const userSettingsContent = {
+        folderTrust: false,
+      };
+      const workspaceSettingsContent = {
+        folderTrust: true, // This should be ignored
+      };
+      const systemSettingsContent = {
+        folderTrust: true,
+      };
+
+      (fs.readFileSync as Mock).mockImplementation(
+        (p: fs.PathOrFileDescriptor) => {
+          if (p === getSystemSettingsPath())
+            return JSON.stringify(systemSettingsContent);
+          if (p === USER_SETTINGS_PATH)
+            return JSON.stringify(userSettingsContent);
+          if (p === MOCK_WORKSPACE_SETTINGS_PATH)
+            return JSON.stringify(workspaceSettingsContent);
+          return '{}';
+        },
+      );
+
+      const settings = loadSettings(MOCK_WORKSPACE_DIR);
+      expect(settings.merged.folderTrust).toBe(true); // System setting should be used
+    });
+
     it('should handle contextFileName correctly when only in user settings', () => {
       (mockFsExistsSync as Mock).mockImplementation(
         (p: fs.PathLike) => p === USER_SETTINGS_PATH,
diff --git a/packages/cli/src/config/settings.ts b/packages/cli/src/config/settings.ts
index 8005ad65..a3bd8d47 100644
--- a/packages/cli/src/config/settings.ts
+++ b/packages/cli/src/config/settings.ts
@@ -113,10 +113,14 @@ export interface Settings {
 
   // Flag to be removed post-launch.
   ideModeFeature?: boolean;
-  folderTrustFeature?: boolean;
   /// IDE mode setting configured via slash command toggle.
   ideMode?: boolean;
 
+  // Flag to be removed post-launch.
+  folderTrustFeature?: boolean;
+  // Setting to track whether Folder trust is enabled.
+  folderTrust?: boolean;
+
   // Setting to track if the user has seen the IDE integration nudge.
   hasSeenIdeIntegrationNudge?: boolean;
 
@@ -178,9 +182,13 @@ export class LoadedSettings {
     const user = this.user.settings;
     const workspace = this.workspace.settings;
 
+    // folderTrust is not supported at workspace level.
+    // eslint-disable-next-line @typescript-eslint/no-unused-vars
+    const { folderTrust, ...workspaceWithoutFolderTrust } = workspace;
+
     return {
       ...user,
-      ...workspace,
+      ...workspaceWithoutFolderTrust,
       ...system,
       customThemes: {
         ...(user.customThemes || {}),