diff --git a/packages/cli/src/ui/components/FolderTrustDialog.test.tsx b/packages/cli/src/ui/components/FolderTrustDialog.test.tsx
index c583617aae..649ae8967c 100644
--- a/packages/cli/src/ui/components/FolderTrustDialog.test.tsx
+++ b/packages/cli/src/ui/components/FolderTrustDialog.test.tsx
@@ -98,7 +98,15 @@ describe('FolderTrustDialog', () => {
     });
   });
 
-  describe('parentFolder display', () => {
+  describe('directory display', () => {
+    it('should correctly display the folder name for a nested directory', () => {
+      mockedCwd.mockReturnValue('/home/user/project');
+      const { lastFrame } = renderWithProviders(
+        <FolderTrustDialog onSelect={vi.fn()} />,
+      );
+      expect(lastFrame()).toContain('Trust folder (project)');
+    });
+
     it('should correctly display the parent folder name for a nested directory', () => {
       mockedCwd.mockReturnValue('/home/user/project');
       const { lastFrame } = renderWithProviders(
diff --git a/packages/cli/src/ui/components/FolderTrustDialog.tsx b/packages/cli/src/ui/components/FolderTrustDialog.tsx
index 0060187925..ebcadd7a35 100644
--- a/packages/cli/src/ui/components/FolderTrustDialog.tsx
+++ b/packages/cli/src/ui/components/FolderTrustDialog.tsx
@@ -46,11 +46,12 @@ export const FolderTrustDialog: React.FC<FolderTrustDialogProps> = ({
     { isActive: !!isRestarting },
   );
 
+  const dirName = path.basename(process.cwd());
   const parentFolder = path.basename(path.dirname(process.cwd()));
 
   const options: Array<RadioSelectItem<FolderTrustChoice>> = [
     {
-      label: 'Trust folder',
+      label: `Trust folder (${dirName})`,
       value: FolderTrustChoice.TRUST_FOLDER,
     },
     {