diff --git a/packages/cli/src/config/settings.test.ts b/packages/cli/src/config/settings.test.ts
index 942c3996f8..ac8882922c 100644
--- a/packages/cli/src/config/settings.test.ts
+++ b/packages/cli/src/config/settings.test.ts
@@ -521,7 +521,7 @@ describe('Settings Loading and Merging', () => {
       });
     });
 
-    it('should ignore folderTrust from workspace settings', () => {
+    it('should use folderTrust from workspace settings when trusted', () => {
       (mockFsExistsSync as Mock).mockReturnValue(true);
       const userSettingsContent = {
         security: {
@@ -533,7 +533,7 @@ describe('Settings Loading and Merging', () => {
       const workspaceSettingsContent = {
         security: {
           folderTrust: {
-            enabled: false, // This should be ignored
+            enabled: false, // This should be used
           },
         },
       };
@@ -554,7 +554,7 @@ describe('Settings Loading and Merging', () => {
       );
 
       const settings = loadSettings(MOCK_WORKSPACE_DIR);
-      expect(settings.merged.security?.folderTrust?.enabled).toBe(true); // User setting should be used
+      expect(settings.merged.security?.folderTrust?.enabled).toBe(false); // Workspace setting should be used
     });
 
     it('should use system folderTrust over user setting', () => {
diff --git a/packages/cli/src/config/settings.ts b/packages/cli/src/config/settings.ts
index 2194d2240c..33a9b71856 100644
--- a/packages/cli/src/config/settings.ts
+++ b/packages/cli/src/config/settings.ts
@@ -329,18 +329,6 @@ function mergeSettings(
 ): Settings {
   const safeWorkspace = isTrusted ? workspace : ({} as Settings);
 
-  // folderTrust is not supported at workspace level.
-  const { security, ...restOfWorkspace } = safeWorkspace;
-  const safeWorkspaceWithoutFolderTrust = security
-    ? {
-        ...restOfWorkspace,
-        // eslint-disable-next-line @typescript-eslint/no-unused-vars
-        security: (({ folderTrust, ...rest }) => rest)(security),
-      }
-    : {
-        ...restOfWorkspace,
-      };
-
   // Settings are merged with the following precedence (last one wins for
   // single values):
   // 1. System Defaults
@@ -352,7 +340,7 @@ function mergeSettings(
     {}, // Start with an empty object
     systemDefaults,
     user,
-    safeWorkspaceWithoutFolderTrust,
+    safeWorkspace,
     system,
   ) as Settings;
 }