feat(cli): Add permissions command to modify trust settings (#8792)

packages/cli/src/config/config.test.ts

@@ -22,7 +22,9 @@ import * as ServerConfig from '@google/gemini-cli-core';
 import { isWorkspaceTrusted } from './trustedFolders.js';
 
 vi.mock('./trustedFolders.js', () => ({
-  isWorkspaceTrusted: vi.fn().mockReturnValue(true), // Default to trusted
+  isWorkspaceTrusted: vi
+    .fn()
+    .mockReturnValue({ isTrusted: true, source: 'file' }), // Default to trusted
 }));
 
 vi.mock('fs', async (importOriginal) => {
@@ -2098,7 +2100,10 @@ describe('loadCliConfig approval mode', () => {
   // --- Untrusted Folder Scenarios ---
   describe('when folder is NOT trusted', () => {
     beforeEach(() => {
-      vi.mocked(isWorkspaceTrusted).mockReturnValue(false);
+      vi.mocked(isWorkspaceTrusted).mockReturnValue({
+        isTrusted: false,
+        source: 'file',
+      });
     });
 
     it('should override --approval-mode=yolo to DEFAULT', async () => {

packages/cli/src/config/config.ts

@@ -414,7 +414,7 @@ export async function loadCliConfig(
   const ideMode = settings.ide?.enabled ?? false;
 
   const folderTrust = settings.security?.folderTrust?.enabled ?? false;
-  const trustedFolder = isWorkspaceTrusted(settings) ?? true;
+  const trustedFolder = isWorkspaceTrusted(settings)?.isTrusted ?? true;
 
   const allExtensions = annotateActiveExtensions(
     extensions,

packages/cli/src/config/extensions/update.test.ts

@@ -87,7 +87,10 @@ describe('update tests', () => {
     // Clean up before each test
     fs.rmSync(userExtensionsDir, { recursive: true, force: true });
     fs.mkdirSync(userExtensionsDir, { recursive: true });
-    vi.mocked(isWorkspaceTrusted).mockReturnValue(true);
+    vi.mocked(isWorkspaceTrusted).mockReturnValue({
+      isTrusted: true,
+      source: 'file',
+    });
     vi.spyOn(process, 'cwd').mockReturnValue(tempWorkspaceDir);
     Object.values(mockGit).forEach((fn) => fn.mockReset());
   });

packages/cli/src/config/settings.test.ts

@@ -30,7 +30,9 @@ vi.mock('./settings.js', async (importActual) => {
 
 // Mock trustedFolders
 vi.mock('./trustedFolders.js', () => ({
-  isWorkspaceTrusted: vi.fn(),
+  isWorkspaceTrusted: vi
+    .fn()
+    .mockReturnValue({ isTrusted: true, source: 'file' }),
 }));
 
 // NOW import everything else, including the (now effectively re-exported) settings.js
@@ -120,7 +122,10 @@ describe('Settings Loading and Merging', () => {
     (mockFsExistsSync as Mock).mockReturnValue(false);
     (fs.readFileSync as Mock).mockReturnValue('{}'); // Return valid empty JSON
     (mockFsMkdirSync as Mock).mockImplementation(() => undefined);
-    vi.mocked(isWorkspaceTrusted).mockReturnValue(true);
+    vi.mocked(isWorkspaceTrusted).mockReturnValue({
+      isTrusted: true,
+      source: 'file',
+    });
   });
 
   afterEach(() => {
@@ -1843,7 +1848,10 @@ describe('Settings Loading and Merging', () => {
     });
 
     it('should NOT merge workspace settings when workspace is not trusted', () => {
-      vi.mocked(isWorkspaceTrusted).mockReturnValue(false);
+      vi.mocked(isWorkspaceTrusted).mockReturnValue({
+        isTrusted: false,
+        source: 'file',
+      });
       (mockFsExistsSync as Mock).mockReturnValue(true);
       const userSettingsContent = {
         ui: { theme: 'dark' },
@@ -2222,7 +2230,10 @@ describe('Settings Loading and Merging', () => {
       delete process.env['TESTTEST']; // reset
       const geminiEnvPath = path.resolve(path.join(GEMINI_DIR, '.env'));
 
-      vi.mocked(isWorkspaceTrusted).mockReturnValue(isWorkspaceTrustedValue);
+      vi.mocked(isWorkspaceTrusted).mockReturnValue({
+        isTrusted: isWorkspaceTrustedValue,
+        source: 'file',
+      });
       (mockFsExistsSync as Mock).mockImplementation((p: fs.PathLike) =>
         [USER_SETTINGS_PATH, geminiEnvPath].includes(p.toString()),
       );

packages/cli/src/config/settings.ts

@@ -492,7 +492,7 @@ export function setUpCloudShellEnvironment(envFilePath: string | null): void {
 export function loadEnvironment(settings: Settings): void {
   const envFilePath = findEnvFile(process.cwd());
 
-  if (!isWorkspaceTrusted(settings)) {
+  if (!isWorkspaceTrusted(settings).isTrusted) {
     return;
   }
 
@@ -674,7 +674,7 @@ export function loadSettings(
     userSettings,
   );
   const isTrusted =
-    isWorkspaceTrusted(initialTrustCheckSettings as Settings) ?? true;
+    isWorkspaceTrusted(initialTrustCheckSettings as Settings).isTrusted ?? true;
 
   // Create a temporary merged settings object to pass to loadEnvironment.
   const tempMergedSettings = mergeSettings(

packages/cli/src/config/trustedFolders.test.ts

@@ -229,52 +229,70 @@ describe('isWorkspaceTrusted', () => {
   it('should return true for a directly trusted folder', () => {
     mockCwd = '/home/user/projectA';
     mockRules['/home/user/projectA'] = TrustLevel.TRUST_FOLDER;
-    expect(isWorkspaceTrusted(mockSettings)).toBe(true);
+    expect(isWorkspaceTrusted(mockSettings)).toEqual({
+      isTrusted: true,
+      source: 'file',
+    });
   });
 
   it('should return true for a child of a trusted folder', () => {
     mockCwd = '/home/user/projectA/src';
     mockRules['/home/user/projectA'] = TrustLevel.TRUST_FOLDER;
-    expect(isWorkspaceTrusted(mockSettings)).toBe(true);
+    expect(isWorkspaceTrusted(mockSettings)).toEqual({
+      isTrusted: true,
+      source: 'file',
+    });
   });
 
   it('should return true for a child of a trusted parent folder', () => {
     mockCwd = '/home/user/projectB';
     mockRules['/home/user/projectB/somefile.txt'] = TrustLevel.TRUST_PARENT;
-    expect(isWorkspaceTrusted(mockSettings)).toBe(true);
+    expect(isWorkspaceTrusted(mockSettings)).toEqual({
+      isTrusted: true,
+      source: 'file',
+    });
   });
 
   it('should return false for a directly untrusted folder', () => {
     mockCwd = '/home/user/untrusted';
     mockRules['/home/user/untrusted'] = TrustLevel.DO_NOT_TRUST;
-    expect(isWorkspaceTrusted(mockSettings)).toBe(false);
+    expect(isWorkspaceTrusted(mockSettings)).toEqual({
+      isTrusted: false,
+      source: 'file',
+    });
   });
 
   it('should return undefined for a child of an untrusted folder', () => {
     mockCwd = '/home/user/untrusted/src';
     mockRules['/home/user/untrusted'] = TrustLevel.DO_NOT_TRUST;
-    expect(isWorkspaceTrusted(mockSettings)).toBeUndefined();
+    expect(isWorkspaceTrusted(mockSettings).isTrusted).toBeUndefined();
   });
 
   it('should return undefined when no rules match', () => {
     mockCwd = '/home/user/other';
     mockRules['/home/user/projectA'] = TrustLevel.TRUST_FOLDER;
     mockRules['/home/user/untrusted'] = TrustLevel.DO_NOT_TRUST;
-    expect(isWorkspaceTrusted(mockSettings)).toBeUndefined();
+    expect(isWorkspaceTrusted(mockSettings).isTrusted).toBeUndefined();
   });
 
   it('should prioritize trust over distrust', () => {
     mockCwd = '/home/user/projectA/untrusted';
     mockRules['/home/user/projectA'] = TrustLevel.TRUST_FOLDER;
     mockRules['/home/user/projectA/untrusted'] = TrustLevel.DO_NOT_TRUST;
-    expect(isWorkspaceTrusted(mockSettings)).toBe(true);
+    expect(isWorkspaceTrusted(mockSettings)).toEqual({
+      isTrusted: true,
+      source: 'file',
+    });
   });
 
   it('should handle path normalization', () => {
     mockCwd = '/home/user/projectA';
     mockRules[`/home/user/../user/${path.basename('/home/user/projectA')}`] =
       TrustLevel.TRUST_FOLDER;
-    expect(isWorkspaceTrusted(mockSettings)).toBe(true);
+    expect(isWorkspaceTrusted(mockSettings)).toEqual({
+      isTrusted: true,
+      source: 'file',
+    });
   });
 });
 
@@ -297,7 +315,10 @@ describe('isWorkspaceTrusted with IDE override', () => {
     vi.spyOn(fs, 'readFileSync').mockReturnValue(
       JSON.stringify({ [process.cwd()]: TrustLevel.DO_NOT_TRUST }),
     );
-    expect(isWorkspaceTrusted(mockSettings)).toBe(true);
+    expect(isWorkspaceTrusted(mockSettings)).toEqual({
+      isTrusted: true,
+      source: 'ide',
+    });
   });
 
   it('should return false when ideTrust is false, ignoring config', () => {
@@ -306,7 +327,10 @@ describe('isWorkspaceTrusted with IDE override', () => {
     vi.spyOn(fs, 'readFileSync').mockReturnValue(
       JSON.stringify({ [process.cwd()]: TrustLevel.TRUST_FOLDER }),
     );
-    expect(isWorkspaceTrusted(mockSettings)).toBe(false);
+    expect(isWorkspaceTrusted(mockSettings)).toEqual({
+      isTrusted: false,
+      source: 'ide',
+    });
   });
 
   it('should fall back to config when ideTrust is undefined', () => {
@@ -314,7 +338,10 @@ describe('isWorkspaceTrusted with IDE override', () => {
     vi.spyOn(fs, 'readFileSync').mockReturnValue(
       JSON.stringify({ [process.cwd()]: TrustLevel.TRUST_FOLDER }),
     );
-    expect(isWorkspaceTrusted(mockSettings)).toBe(true);
+    expect(isWorkspaceTrusted(mockSettings)).toEqual({
+      isTrusted: true,
+      source: 'file',
+    });
   });
 
   it('should always return true if folderTrust setting is disabled', () => {
@@ -326,6 +353,9 @@ describe('isWorkspaceTrusted with IDE override', () => {
       },
     };
     ideContextStore.set({ workspaceState: { isTrusted: false } });
-    expect(isWorkspaceTrusted(settings)).toBe(true);
+    expect(isWorkspaceTrusted(settings)).toEqual({
+      isTrusted: true,
+      source: undefined,
+    });
   });
 });

packages/cli/src/config/trustedFolders.ts

@@ -47,6 +47,11 @@ export interface TrustedFoldersFile {
   path: string;
 }
 
+export interface TrustResult {
+  isTrusted: boolean | undefined;
+  source: 'ide' | 'file' | undefined;
+}
+
 export class LoadedTrustedFolders {
   constructor(
     readonly user: TrustedFoldersFile,
@@ -166,9 +171,15 @@ export function isFolderTrustEnabled(settings: Settings): boolean {
   return folderTrustSetting;
 }
 
-function getWorkspaceTrustFromLocalConfig(): boolean | undefined {
+function getWorkspaceTrustFromLocalConfig(
+  trustConfig?: Record<string, TrustLevel>,
+): TrustResult {
   const folders = loadTrustedFolders();
 
+  if (trustConfig) {
+    folders.user.config = trustConfig;
+  }
+
   if (folders.errors.length > 0) {
     for (const error of folders.errors) {
       console.error(
@@ -177,19 +188,26 @@ function getWorkspaceTrustFromLocalConfig(): boolean | undefined {
     }
   }
 
-  return folders.isPathTrusted(process.cwd());
+  const isTrusted = folders.isPathTrusted(process.cwd());
+  return {
+    isTrusted,
+    source: isTrusted !== undefined ? 'file' : undefined,
+  };
 }
 
-export function isWorkspaceTrusted(settings: Settings): boolean | undefined {
+export function isWorkspaceTrusted(
+  settings: Settings,
+  trustConfig?: Record<string, TrustLevel>,
+): TrustResult {
   if (!isFolderTrustEnabled(settings)) {
-    return true;
+    return { isTrusted: true, source: undefined };
   }
 
   const ideTrust = ideContextStore.get()?.workspaceState?.isTrusted;
   if (ideTrust !== undefined) {
-    return ideTrust;
+    return { isTrusted: ideTrust, source: 'ide' };
   }
 
   // Fall back to the local user configuration
-  return getWorkspaceTrustFromLocalConfig();
+  return getWorkspaceTrustFromLocalConfig(trustConfig);
 }

packages/cli/src/services/BuiltinCommandLoader.test.ts

@@ -28,6 +28,16 @@ vi.mock('../ui/commands/ideCommand.js', async () => {
 vi.mock('../ui/commands/restoreCommand.js', () => ({
   restoreCommand: vi.fn(),
 }));
+vi.mock('../ui/commands/permissionsCommand.js', async () => {
+  const { CommandKind } = await import('../ui/commands/types.js');
+  return {
+    permissionsCommand: {
+      name: 'permissions',
+      description: 'Permissions command',
+      kind: CommandKind.BUILT_IN,
+    },
+  };
+});
 
 import { describe, it, expect, vi, beforeEach, type Mock } from 'vitest';
 import { BuiltinCommandLoader } from './BuiltinCommandLoader.js';
@@ -69,7 +79,9 @@ describe('BuiltinCommandLoader', () => {
 
   beforeEach(() => {
     vi.clearAllMocks();
-    mockConfig = { some: 'config' } as unknown as Config;
+    mockConfig = {
+      getFolderTrust: vi.fn().mockReturnValue(true),
+    } as unknown as Config;
 
     restoreCommandMock.mockReturnValue({
       name: 'restore',
@@ -123,4 +135,19 @@ describe('BuiltinCommandLoader', () => {
     const mcpCmd = commands.find((c) => c.name === 'mcp');
     expect(mcpCmd).toBeDefined();
   });
+
+  it('should include permissions command when folder trust is enabled', async () => {
+    const loader = new BuiltinCommandLoader(mockConfig);
+    const commands = await loader.loadCommands(new AbortController().signal);
+    const permissionsCmd = commands.find((c) => c.name === 'permissions');
+    expect(permissionsCmd).toBeDefined();
+  });
+
+  it('should exclude permissions command when folder trust is disabled', async () => {
+    (mockConfig.getFolderTrust as Mock).mockReturnValue(false);
+    const loader = new BuiltinCommandLoader(mockConfig);
+    const commands = await loader.loadCommands(new AbortController().signal);
+    const permissionsCmd = commands.find((c) => c.name === 'permissions');
+    expect(permissionsCmd).toBeUndefined();
+  });
 });

packages/cli/src/services/BuiltinCommandLoader.ts

@@ -24,6 +24,7 @@ import { ideCommand } from '../ui/commands/ideCommand.js';
 import { initCommand } from '../ui/commands/initCommand.js';
 import { mcpCommand } from '../ui/commands/mcpCommand.js';
 import { memoryCommand } from '../ui/commands/memoryCommand.js';
+import { permissionsCommand } from '../ui/commands/permissionsCommand.js';
 import { privacyCommand } from '../ui/commands/privacyCommand.js';
 import { quitCommand } from '../ui/commands/quitCommand.js';
 import { restoreCommand } from '../ui/commands/restoreCommand.js';
@@ -68,6 +69,7 @@ export class BuiltinCommandLoader implements ICommandLoader {
       initCommand,
       mcpCommand,
       memoryCommand,
+      this.config?.getFolderTrust() ? permissionsCommand : null,
       privacyCommand,
       quitCommand,
       restoreCommand(this.config),

packages/cli/src/ui/App.test.tsx

@@ -38,6 +38,13 @@ describe('App', () => {
     quittingMessages: null,
     dialogsVisible: false,
     mainControlsRef: { current: null },
+    historyManager: {
+      addItem: vi.fn(),
+      history: [],
+      updateItem: vi.fn(),
+      clearItems: vi.fn(),
+      loadHistory: vi.fn(),
+    },
   };
 
   it('should render main content and composer when not quitting', () => {

packages/cli/src/ui/App.tsx

@@ -29,7 +29,11 @@ export const App = () => {
         <Box flexDirection="column" ref={uiState.mainControlsRef}>
           <Notifications />
 
-          {uiState.dialogsVisible ? <DialogManager /> : <Composer />}
+          {uiState.dialogsVisible ? (
+            <DialogManager addItem={uiState.historyManager.addItem} />
+          ) : (
+            <Composer />
+          )}
 
           {uiState.dialogsVisible && uiState.ctrlCPressedOnce && (
             <Box marginTop={1}>

packages/cli/src/ui/AppContainer.tsx

@@ -157,6 +157,16 @@ export const AppContainer = (props: AppContainerProps) => {
       config.getWorkingDir(),
     );
 
+  const [isPermissionsDialogOpen, setPermissionsDialogOpen] = useState(false);
+  const openPermissionsDialog = useCallback(
+    () => setPermissionsDialogOpen(true),
+    [],
+  );
+  const closePermissionsDialog = useCallback(
+    () => setPermissionsDialogOpen(false),
+    [],
+  );
+
   // Helper to determine the effective model, considering the fallback state.
   const getEffectiveModel = useCallback(() => {
     if (config.isInFallbackMode()) {
@@ -424,6 +434,7 @@ Logging in with Google... Please restart Gemini CLI to continue.
       openEditorDialog,
       openPrivacyNotice: () => setShowPrivacyNotice(true),
       openSettingsDialog,
+      openPermissionsDialog,
       quit: (messages: HistoryItem[]) => {
         setQuittingMessages(messages);
         setTimeout(async () => {
@@ -445,6 +456,7 @@ Logging in with Google... Please restart Gemini CLI to continue.
       setShowPrivacyNotice,
       setCorgiMode,
       setExtensionsUpdateState,
+      openPermissionsDialog,
     ],
   );
 
@@ -985,6 +997,7 @@ Logging in with Google... Please restart Gemini CLI to continue.
     !!loopDetectionConfirmationRequest ||
     isThemeDialogOpen ||
     isSettingsDialogOpen ||
+    isPermissionsDialogOpen ||
     isAuthenticating ||
     isAuthDialogOpen ||
     isEditorDialogOpen ||
@@ -999,6 +1012,7 @@ Logging in with Google... Please restart Gemini CLI to continue.
   const uiState: UIState = useMemo(
     () => ({
       history: historyManager.history,
+      historyManager,
       isThemeDialogOpen,
       themeError,
       isAuthenticating,
@@ -1012,6 +1026,7 @@ Logging in with Google... Please restart Gemini CLI to continue.
       debugMessage,
       quittingMessages,
       isSettingsDialogOpen,
+      isPermissionsDialogOpen,
       slashCommands,
       pendingSlashCommandHistoryItems,
       commandContext,
@@ -1074,7 +1089,6 @@ Logging in with Google... Please restart Gemini CLI to continue.
       embeddedShellFocused,
     }),
     [
-      historyManager.history,
       isThemeDialogOpen,
       themeError,
       isAuthenticating,
@@ -1088,6 +1102,7 @@ Logging in with Google... Please restart Gemini CLI to continue.
       debugMessage,
       quittingMessages,
       isSettingsDialogOpen,
+      isPermissionsDialogOpen,
       slashCommands,
       pendingSlashCommandHistoryItems,
       commandContext,
@@ -1147,6 +1162,7 @@ Logging in with Google... Please restart Gemini CLI to continue.
       currentModel,
       extensionsUpdateState,
       activePtyId,
+      historyManager,
       embeddedShellFocused,
     ],
   );
@@ -1162,6 +1178,7 @@ Logging in with Google... Please restart Gemini CLI to continue.
       exitEditorDialog,
       exitPrivacyNotice: () => setShowPrivacyNotice(false),
       closeSettingsDialog,
+      closePermissionsDialog,
       setShellModeActive,
       vimHandleInput,
       handleIdePromptComplete,
@@ -1184,6 +1201,7 @@ Logging in with Google... Please restart Gemini CLI to continue.
       handleEditorSelect,
       exitEditorDialog,
       closeSettingsDialog,
+      closePermissionsDialog,
       setShellModeActive,
       vimHandleInput,
       handleIdePromptComplete,

packages/cli/src/ui/commands/permissionsCommand.test.ts

@@ -0,0 +1,35 @@
+/**
+ * @license
+ * Copyright 2025 Google LLC
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+import { describe, it, expect, beforeEach } from 'vitest';
+import { permissionsCommand } from './permissionsCommand.js';
+import { type CommandContext, CommandKind } from './types.js';
+import { createMockCommandContext } from '../../test-utils/mockCommandContext.js';
+
+describe('permissionsCommand', () => {
+  let mockContext: CommandContext;
+
+  beforeEach(() => {
+    mockContext = createMockCommandContext();
+  });
+
+  it('should have the correct name and description', () => {
+    expect(permissionsCommand.name).toBe('permissions');
+    expect(permissionsCommand.description).toBe('Manage folder trust settings');
+  });
+
+  it('should be a built-in command', () => {
+    expect(permissionsCommand.kind).toBe(CommandKind.BUILT_IN);
+  });
+
+  it('should return an action to open the permissions dialog', () => {
+    const actionResult = permissionsCommand.action?.(mockContext, '');
+    expect(actionResult).toEqual({
+      type: 'dialog',
+      dialog: 'permissions',
+    });
+  });
+});

packages/cli/src/ui/commands/permissionsCommand.ts

@@ -0,0 +1,18 @@
+/**
+ * @license
+ * Copyright 2025 Google LLC
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+import type { OpenDialogActionReturn, SlashCommand } from './types.js';
+import { CommandKind } from './types.js';
+
+export const permissionsCommand: SlashCommand = {
+  name: 'permissions',
+  description: 'Manage folder trust settings',
+  kind: CommandKind.BUILT_IN,
+  action: (): OpenDialogActionReturn => ({
+    type: 'dialog',
+    dialog: 'permissions',
+  }),
+};

packages/cli/src/ui/commands/types.ts

@@ -108,7 +108,14 @@ export interface MessageActionReturn {
 export interface OpenDialogActionReturn {
   type: 'dialog';
 
-  dialog: 'help' | 'auth' | 'theme' | 'editor' | 'privacy' | 'settings';
+  dialog:
+    | 'help'
+    | 'auth'
+    | 'theme'
+    | 'editor'
+    | 'privacy'
+    | 'settings'
+    | 'permissions';
 }
 
 /**

packages/cli/src/ui/components/DialogManager.tsx

@@ -18,15 +18,21 @@ import { EditorSettingsDialog } from './EditorSettingsDialog.js';
 import { PrivacyNotice } from '../privacy/PrivacyNotice.js';
 import { WorkspaceMigrationDialog } from './WorkspaceMigrationDialog.js';
 import { ProQuotaDialog } from './ProQuotaDialog.js';
+import { PermissionsModifyTrustDialog } from './PermissionsModifyTrustDialog.js';
 import { theme } from '../semantic-colors.js';
 import { useUIState } from '../contexts/UIStateContext.js';
 import { useUIActions } from '../contexts/UIActionsContext.js';
 import { useConfig } from '../contexts/ConfigContext.js';
 import { useSettings } from '../contexts/SettingsContext.js';
 import process from 'node:process';
+import { type UseHistoryManagerReturn } from '../hooks/useHistoryManager.js';
+
+interface DialogManagerProps {
+  addItem: UseHistoryManagerReturn['addItem'];
+}
 
 // Props for DialogManager
-export const DialogManager = () => {
+export const DialogManager = ({ addItem }: DialogManagerProps) => {
   const config = useConfig();
   const settings = useSettings();
 
@@ -188,5 +194,14 @@ export const DialogManager = () => {
     );
   }
 
+  if (uiState.isPermissionsDialogOpen) {
+    return (
+      <PermissionsModifyTrustDialog
+        onExit={uiActions.closePermissionsDialog}
+        addItem={addItem}
+      />
+    );
+  }
+
   return null;
 };

packages/cli/src/ui/components/PermissionsModifyTrustDialog.test.tsx

@@ -0,0 +1,204 @@
+/**
+ * @license
+ * Copyright 2025 Google LLC
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+/// <reference types="vitest/globals" />
+
+import { describe, it, expect, vi, beforeEach, afterEach } from 'vitest';
+import type { Mock } from 'vitest';
+import { renderWithProviders } from '../../test-utils/render.js';
+import { PermissionsModifyTrustDialog } from './PermissionsModifyTrustDialog.js';
+import { TrustLevel } from '../../config/trustedFolders.js';
+import { waitFor, act } from '@testing-library/react';
+import * as processUtils from '../../utils/processUtils.js';
+import { usePermissionsModifyTrust } from '../hooks/usePermissionsModifyTrust.js';
+
+// Hoist mocks for dependencies of the usePermissionsModifyTrust hook
+const mockedCwd = vi.hoisted(() => vi.fn());
+const mockedLoadTrustedFolders = vi.hoisted(() => vi.fn());
+const mockedIsWorkspaceTrusted = vi.hoisted(() => vi.fn());
+const mockedUseSettings = vi.hoisted(() => vi.fn());
+
+// Mock the modules themselves
+vi.mock('node:process', async (importOriginal) => {
+  const actual = await importOriginal<typeof import('node:process')>();
+  return {
+    ...actual,
+    cwd: mockedCwd,
+  };
+});
+
+vi.mock('../../config/trustedFolders.js', () => ({
+  loadTrustedFolders: mockedLoadTrustedFolders,
+  isWorkspaceTrusted: mockedIsWorkspaceTrusted,
+  TrustLevel: {
+    TRUST_FOLDER: 'TRUST_FOLDER',
+    TRUST_PARENT: 'TRUST_PARENT',
+    DO_NOT_TRUST: 'DO_NOT_TRUST',
+  },
+}));
+
+vi.mock('../contexts/SettingsContext.js', () => ({
+  useSettings: mockedUseSettings,
+}));
+
+vi.mock('../hooks/usePermissionsModifyTrust.js');
+
+describe('PermissionsModifyTrustDialog', () => {
+  let mockUpdateTrustLevel: Mock;
+  let mockCommitTrustLevelChange: Mock;
+
+  beforeEach(() => {
+    mockUpdateTrustLevel = vi.fn();
+    mockCommitTrustLevelChange = vi.fn();
+    vi.mocked(usePermissionsModifyTrust).mockReturnValue({
+      cwd: '/test/dir',
+      currentTrustLevel: TrustLevel.DO_NOT_TRUST,
+      isInheritedTrustFromParent: false,
+      isInheritedTrustFromIde: false,
+      needsRestart: false,
+      updateTrustLevel: mockUpdateTrustLevel,
+      commitTrustLevelChange: mockCommitTrustLevelChange,
+      isFolderTrustEnabled: true,
+    });
+  });
+
+  afterEach(() => {
+    vi.resetAllMocks();
+  });
+
+  it('should render the main dialog with current trust level', async () => {
+    const { lastFrame } = renderWithProviders(
+      <PermissionsModifyTrustDialog onExit={vi.fn()} addItem={vi.fn()} />,
+    );
+
+    await waitFor(() => {
+      expect(lastFrame()).toContain('Modify Trust Level');
+      expect(lastFrame()).toContain('Folder: /test/dir');
+      expect(lastFrame()).toContain('Current Level: DO_NOT_TRUST');
+    });
+  });
+
+  it('should display the inherited trust note from parent', async () => {
+    vi.mocked(usePermissionsModifyTrust).mockReturnValue({
+      cwd: '/test/dir',
+      currentTrustLevel: TrustLevel.DO_NOT_TRUST,
+      isInheritedTrustFromParent: true,
+      isInheritedTrustFromIde: false,
+      needsRestart: false,
+      updateTrustLevel: mockUpdateTrustLevel,
+      commitTrustLevelChange: mockCommitTrustLevelChange,
+      isFolderTrustEnabled: true,
+    });
+    const { lastFrame } = renderWithProviders(
+      <PermissionsModifyTrustDialog onExit={vi.fn()} addItem={vi.fn()} />,
+    );
+
+    await waitFor(() => {
+      expect(lastFrame()).toContain(
+        'Note: This folder behaves as a trusted folder because one of the parent folders is trusted.',
+      );
+    });
+  });
+
+  it('should display the inherited trust note from IDE', async () => {
+    vi.mocked(usePermissionsModifyTrust).mockReturnValue({
+      cwd: '/test/dir',
+      currentTrustLevel: TrustLevel.DO_NOT_TRUST,
+      isInheritedTrustFromParent: false,
+      isInheritedTrustFromIde: true,
+      needsRestart: false,
+      updateTrustLevel: mockUpdateTrustLevel,
+      commitTrustLevelChange: mockCommitTrustLevelChange,
+      isFolderTrustEnabled: true,
+    });
+    const { lastFrame } = renderWithProviders(
+      <PermissionsModifyTrustDialog onExit={vi.fn()} addItem={vi.fn()} />,
+    );
+
+    await waitFor(() => {
+      expect(lastFrame()).toContain(
+        'Note: This folder behaves as a trusted folder because the connected IDE workspace is trusted.',
+      );
+    });
+  });
+
+  it('should call onExit when escape is pressed', async () => {
+    const onExit = vi.fn();
+    const { stdin, lastFrame } = renderWithProviders(
+      <PermissionsModifyTrustDialog onExit={onExit} addItem={vi.fn()} />,
+    );
+
+    await waitFor(() => expect(lastFrame()).not.toContain('Loading...'));
+
+    act(() => {
+      stdin.write('\x1b'); // escape key
+    });
+
+    await waitFor(() => {
+      expect(onExit).toHaveBeenCalled();
+    });
+  });
+
+  it('should commit, restart, and exit on `r` keypress', async () => {
+    const mockRelaunchApp = vi
+      .spyOn(processUtils, 'relaunchApp')
+      .mockResolvedValue(undefined);
+    vi.mocked(usePermissionsModifyTrust).mockReturnValue({
+      cwd: '/test/dir',
+      currentTrustLevel: TrustLevel.DO_NOT_TRUST,
+      isInheritedTrustFromParent: false,
+      isInheritedTrustFromIde: false,
+      needsRestart: true,
+      updateTrustLevel: mockUpdateTrustLevel,
+      commitTrustLevelChange: mockCommitTrustLevelChange,
+      isFolderTrustEnabled: true,
+    });
+
+    const onExit = vi.fn();
+    const { stdin, lastFrame } = renderWithProviders(
+      <PermissionsModifyTrustDialog onExit={onExit} addItem={vi.fn()} />,
+    );
+
+    await waitFor(() => expect(lastFrame()).not.toContain('Loading...'));
+
+    act(() => stdin.write('r')); // Press 'r' to restart
+
+    await waitFor(() => {
+      expect(mockCommitTrustLevelChange).toHaveBeenCalled();
+      expect(mockRelaunchApp).toHaveBeenCalled();
+      expect(onExit).toHaveBeenCalled();
+    });
+
+    mockRelaunchApp.mockRestore();
+  });
+
+  it('should not commit when escape is pressed during restart prompt', async () => {
+    vi.mocked(usePermissionsModifyTrust).mockReturnValue({
+      cwd: '/test/dir',
+      currentTrustLevel: TrustLevel.DO_NOT_TRUST,
+      isInheritedTrustFromParent: false,
+      isInheritedTrustFromIde: false,
+      needsRestart: true,
+      updateTrustLevel: mockUpdateTrustLevel,
+      commitTrustLevelChange: mockCommitTrustLevelChange,
+      isFolderTrustEnabled: true,
+    });
+
+    const onExit = vi.fn();
+    const { stdin, lastFrame } = renderWithProviders(
+      <PermissionsModifyTrustDialog onExit={onExit} addItem={vi.fn()} />,
+    );
+
+    await waitFor(() => expect(lastFrame()).not.toContain('Loading...'));
+
+    act(() => stdin.write('\x1b')); // Press escape
+
+    await waitFor(() => {
+      expect(mockCommitTrustLevelChange).not.toHaveBeenCalled();
+      expect(onExit).toHaveBeenCalled();
+    });
+  });
+});

packages/cli/src/ui/components/PermissionsModifyTrustDialog.tsx

@@ -0,0 +1,122 @@
+/**
+ * @license
+ * Copyright 2025 Google LLC
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+import { Box, Text } from 'ink';
+import type React from 'react';
+import { TrustLevel } from '../../config/trustedFolders.js';
+import { useKeypress } from '../hooks/useKeypress.js';
+import { usePermissionsModifyTrust } from '../hooks/usePermissionsModifyTrust.js';
+import { theme } from '../semantic-colors.js';
+import { RadioButtonSelect } from './shared/RadioButtonSelect.js';
+import { relaunchApp } from '../../utils/processUtils.js';
+import { type UseHistoryManagerReturn } from '../hooks/useHistoryManager.js';
+
+interface PermissionsModifyTrustDialogProps {
+  onExit: () => void;
+  addItem: UseHistoryManagerReturn['addItem'];
+}
+
+const TRUST_LEVEL_ITEMS = [
+  {
+    label: 'Trust this folder',
+    value: TrustLevel.TRUST_FOLDER,
+  },
+  {
+    label: 'Trust parent folder',
+    value: TrustLevel.TRUST_PARENT,
+  },
+  {
+    label: "Don't trust",
+    value: TrustLevel.DO_NOT_TRUST,
+  },
+];
+
+export function PermissionsModifyTrustDialog({
+  onExit,
+  addItem,
+}: PermissionsModifyTrustDialogProps): React.JSX.Element {
+  const {
+    cwd,
+    currentTrustLevel,
+    isInheritedTrustFromParent,
+    isInheritedTrustFromIde,
+    needsRestart,
+    updateTrustLevel,
+    commitTrustLevelChange,
+  } = usePermissionsModifyTrust(onExit, addItem);
+
+  useKeypress(
+    (key) => {
+      if (key.name === 'escape') {
+        onExit();
+      }
+      if (needsRestart && key.name === 'r') {
+        commitTrustLevelChange();
+        relaunchApp();
+        onExit();
+      }
+    },
+    { isActive: true },
+  );
+
+  const index = TRUST_LEVEL_ITEMS.findIndex(
+    (item) => item.value === currentTrustLevel,
+  );
+  const initialIndex = index === -1 ? 0 : index;
+
+  return (
+    <>
+      <Box
+        borderStyle="round"
+        borderColor={theme.border.default}
+        flexDirection="column"
+        padding={1}
+      >
+        <Box flexDirection="column" paddingBottom={1}>
+          <Text bold>{'> '}Modify Trust Level</Text>
+          <Box marginTop={1} />
+          <Text>Folder: {cwd}</Text>
+          <Text>
+            Current Level: <Text bold>{currentTrustLevel || 'Not Set'}</Text>
+          </Text>
+          {isInheritedTrustFromParent && (
+            <Text color={theme.text.secondary}>
+              Note: This folder behaves as a trusted folder because one of the
+              parent folders is trusted. It will remain trusted even if you set
+              a different trust level here. To change this, you need to modify
+              the trust setting in the parent folder.
+            </Text>
+          )}
+          {isInheritedTrustFromIde && (
+            <Text color={theme.text.secondary}>
+              Note: This folder behaves as a trusted folder because the
+              connected IDE workspace is trusted. It will remain trusted even if
+              you set a different trust level here.
+            </Text>
+          )}
+        </Box>
+
+        <RadioButtonSelect
+          items={TRUST_LEVEL_ITEMS}
+          onSelect={updateTrustLevel}
+          isFocused={true}
+          initialIndex={initialIndex}
+        />
+        <Box marginTop={1}>
+          <Text color={theme.text.secondary}>(Use Enter to select)</Text>
+        </Box>
+      </Box>
+      {needsRestart && (
+        <Box marginLeft={1} marginTop={1}>
+          <Text color={theme.status.warning}>
+            To apply the trust changes, Gemini CLI must be restarted. Press
+            &apos;r&apos; to restart CLI now.
+          </Text>
+        </Box>
+      )}
+    </>
+  );
+}

packages/cli/src/ui/contexts/UIActionsContext.tsx

@@ -31,6 +31,7 @@ export interface UIActions {
   exitEditorDialog: () => void;
   exitPrivacyNotice: () => void;
   closeSettingsDialog: () => void;
+  closePermissionsDialog: () => void;
   setShellModeActive: (value: boolean) => void;
   vimHandleInput: (key: Key) => boolean;
   handleIdePromptComplete: (result: IdeIntegrationNudgeResult) => void;

packages/cli/src/ui/contexts/UIStateContext.tsx

@@ -35,8 +35,11 @@ export interface ProQuotaDialogRequest {
   resolve: (intent: FallbackIntent) => void;
 }
 
+import { type UseHistoryManagerReturn } from '../hooks/useHistoryManager.js';
+
 export interface UIState {
   history: HistoryItem[];
+  historyManager: UseHistoryManagerReturn;
   isThemeDialogOpen: boolean;
   themeError: string | null;
   isAuthenticating: boolean;
@@ -50,6 +53,7 @@ export interface UIState {
   debugMessage: string;
   quittingMessages: HistoryItem[] | null;
   isSettingsDialogOpen: boolean;
+  isPermissionsDialogOpen: boolean;
   slashCommands: readonly SlashCommand[];
   pendingSlashCommandHistoryItems: HistoryItemWithoutId[];
   commandContext: CommandContext;

packages/cli/src/ui/hooks/slashCommandProcessor.ts

@@ -49,6 +49,7 @@ interface SlashCommandProcessorActions {
   openEditorDialog: () => void;
   openPrivacyNotice: () => void;
   openSettingsDialog: () => void;
+  openPermissionsDialog: () => void;
   quit: (messages: HistoryItem[]) => void;
   setDebugMessage: (message: string) => void;
   toggleCorgiMode: () => void;
@@ -373,6 +374,9 @@ export const useSlashCommandProcessor = (
                     case 'settings':
                       actions.openSettingsDialog();
                       return { type: 'handled' };
+                    case 'permissions':
+                      actions.openPermissionsDialog();
+                      return { type: 'handled' };
                     case 'help':
                       return { type: 'handled' };
                     default: {

packages/cli/src/ui/hooks/useExtensionUpdates.test.ts

@@ -187,7 +187,10 @@ describe('useExtensionUpdates', () => {
         JSON.stringify({ name: 'test-extension', version: '1.1.0' }),
       );
     });
-    vi.mocked(isWorkspaceTrusted).mockReturnValue(true);
+    vi.mocked(isWorkspaceTrusted).mockReturnValue({
+      isTrusted: true,
+      source: 'file',
+    });
 
     renderHook(() => useExtensionUpdates([extension], addItem, tempHomeDir));
 

packages/cli/src/ui/hooks/useFolderTrust.test.ts

@@ -56,7 +56,7 @@ describe('useFolderTrust', () => {
   });
 
   it('should not open dialog when folder is already trusted', () => {
-    isWorkspaceTrustedSpy.mockReturnValue(true);
+    isWorkspaceTrustedSpy.mockReturnValue({ isTrusted: true, source: 'file' });
     const { result } = renderHook(() =>
       useFolderTrust(mockSettings, onTrustChange),
     );
@@ -65,7 +65,7 @@ describe('useFolderTrust', () => {
   });
 
   it('should not open dialog when folder is already untrusted', () => {
-    isWorkspaceTrustedSpy.mockReturnValue(false);
+    isWorkspaceTrustedSpy.mockReturnValue({ isTrusted: false, source: 'file' });
     const { result } = renderHook(() =>
       useFolderTrust(mockSettings, onTrustChange),
     );
@@ -74,7 +74,10 @@ describe('useFolderTrust', () => {
   });
 
   it('should open dialog when folder trust is undefined', () => {
-    isWorkspaceTrustedSpy.mockReturnValue(undefined);
+    isWorkspaceTrustedSpy.mockReturnValue({
+      isTrusted: undefined,
+      source: undefined,
+    });
     const { result } = renderHook(() =>
       useFolderTrust(mockSettings, onTrustChange),
     );
@@ -83,14 +86,14 @@ describe('useFolderTrust', () => {
   });
 
   it('should handle TRUST_FOLDER choice', () => {
-    isWorkspaceTrustedSpy
+    isWorkspaceTrustedSpy.mockReturnValue({
-      .mockReturnValueOnce(undefined)
+      isTrusted: undefined,
-      .mockReturnValueOnce(true);
+      source: undefined,
+    });
     const { result } = renderHook(() =>
       useFolderTrust(mockSettings, onTrustChange),
     );
 
-    isWorkspaceTrustedSpy.mockReturnValue(true);
     act(() => {
       result.current.handleFolderTrustSelect(FolderTrustChoice.TRUST_FOLDER);
     });
@@ -105,9 +108,10 @@ describe('useFolderTrust', () => {
   });
 
   it('should handle TRUST_PARENT choice', () => {
-    isWorkspaceTrustedSpy
+    isWorkspaceTrustedSpy.mockReturnValue({
-      .mockReturnValueOnce(undefined)
+      isTrusted: undefined,
-      .mockReturnValueOnce(true);
+      source: undefined,
+    });
     const { result } = renderHook(() =>
       useFolderTrust(mockSettings, onTrustChange),
     );
@@ -125,9 +129,10 @@ describe('useFolderTrust', () => {
   });
 
   it('should handle DO_NOT_TRUST choice and trigger restart', () => {
-    isWorkspaceTrustedSpy
+    isWorkspaceTrustedSpy.mockReturnValue({
-      .mockReturnValueOnce(undefined)
+      isTrusted: undefined,
-      .mockReturnValueOnce(false);
+      source: undefined,
+    });
     const { result } = renderHook(() =>
       useFolderTrust(mockSettings, onTrustChange),
     );
@@ -146,7 +151,10 @@ describe('useFolderTrust', () => {
   });
 
   it('should do nothing for default choice', () => {
-    isWorkspaceTrustedSpy.mockReturnValue(undefined);
+    isWorkspaceTrustedSpy.mockReturnValue({
+      isTrusted: undefined,
+      source: undefined,
+    });
     const { result } = renderHook(() =>
       useFolderTrust(mockSettings, onTrustChange),
     );
@@ -164,7 +172,7 @@ describe('useFolderTrust', () => {
   });
 
   it('should set isRestarting to true when trust status changes from false to true', () => {
-    isWorkspaceTrustedSpy.mockReturnValueOnce(false).mockReturnValueOnce(true); // Initially untrusted, then trusted
+    isWorkspaceTrustedSpy.mockReturnValue({ isTrusted: false, source: 'file' }); // Initially untrusted
     const { result } = renderHook(() =>
       useFolderTrust(mockSettings, onTrustChange),
     );
@@ -178,9 +186,10 @@ describe('useFolderTrust', () => {
   });
 
   it('should not set isRestarting to true when trust status does not change', () => {
-    isWorkspaceTrustedSpy
+    isWorkspaceTrustedSpy.mockReturnValue({
-      .mockReturnValueOnce(undefined)
+      isTrusted: undefined,
-      .mockReturnValueOnce(true); // Initially undefined, then trust
+      source: undefined,
+    });
     const { result } = renderHook(() =>
       useFolderTrust(mockSettings, onTrustChange),
     );

packages/cli/src/ui/hooks/useFolderTrust.ts

@@ -25,7 +25,7 @@ export const useFolderTrust = (
   const folderTrust = settings.merged.security?.folderTrust?.enabled;
 
   useEffect(() => {
-    const trusted = isWorkspaceTrusted(settings.merged);
+    const { isTrusted: trusted } = isWorkspaceTrusted(settings.merged);
     setIsTrusted(trusted);
     setIsFolderTrustDialogOpen(trusted === undefined);
     onTrustChange(trusted);

packages/cli/src/ui/hooks/usePermissionsModifyTrust.test.ts

@@ -0,0 +1,263 @@
+/**
+ * @license
+ * Copyright 2025 Google LLC
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+/// <reference types="vitest/globals" />
+
+import {
+  describe,
+  it,
+  expect,
+  vi,
+  beforeEach,
+  afterEach,
+  type Mock,
+} from 'vitest';
+import { renderHook, act } from '@testing-library/react';
+import { usePermissionsModifyTrust } from './usePermissionsModifyTrust.js';
+import { TrustLevel } from '../../config/trustedFolders.js';
+import type { LoadedSettings } from '../../config/settings.js';
+import type { LoadedTrustedFolders } from '../../config/trustedFolders.js';
+
+// Hoist mocks
+const mockedCwd = vi.hoisted(() => vi.fn());
+const mockedLoadTrustedFolders = vi.hoisted(() => vi.fn());
+const mockedIsWorkspaceTrusted = vi.hoisted(() => vi.fn());
+const mockedUseSettings = vi.hoisted(() => vi.fn());
+
+// Mock modules
+vi.mock('node:process', () => ({
+  cwd: mockedCwd,
+}));
+
+vi.mock('../../config/trustedFolders.js', () => ({
+  loadTrustedFolders: mockedLoadTrustedFolders,
+  isWorkspaceTrusted: mockedIsWorkspaceTrusted,
+  TrustLevel: {
+    TRUST_FOLDER: 'TRUST_FOLDER',
+    TRUST_PARENT: 'TRUST_PARENT',
+    DO_NOT_TRUST: 'DO_NOT_TRUST',
+  },
+}));
+
+vi.mock('../contexts/SettingsContext.js', () => ({
+  useSettings: mockedUseSettings,
+}));
+
+describe('usePermissionsModifyTrust', () => {
+  let mockOnExit: Mock;
+  let mockAddItem: Mock;
+
+  beforeEach(() => {
+    mockAddItem = vi.fn();
+    mockOnExit = vi.fn();
+
+    mockedCwd.mockReturnValue('/test/dir');
+    mockedUseSettings.mockReturnValue({
+      merged: {
+        security: {
+          folderTrust: {
+            enabled: true,
+          },
+        },
+      },
+    } as LoadedSettings);
+    mockedIsWorkspaceTrusted.mockReturnValue({
+      isTrusted: undefined,
+      source: undefined,
+    });
+  });
+
+  afterEach(() => {
+    vi.resetAllMocks();
+  });
+
+  it('should initialize with the correct trust level', () => {
+    mockedLoadTrustedFolders.mockReturnValue({
+      user: { config: { '/test/dir': TrustLevel.TRUST_FOLDER } },
+    } as unknown as LoadedTrustedFolders);
+    mockedIsWorkspaceTrusted.mockReturnValue({
+      isTrusted: true,
+      source: 'file',
+    });
+
+    const { result } = renderHook(() =>
+      usePermissionsModifyTrust(mockOnExit, mockAddItem),
+    );
+
+    expect(result.current.currentTrustLevel).toBe(TrustLevel.TRUST_FOLDER);
+  });
+
+  it('should detect inherited trust from parent', () => {
+    mockedLoadTrustedFolders.mockReturnValue({
+      user: { config: {} },
+      setValue: vi.fn(),
+    } as unknown as LoadedTrustedFolders);
+    mockedIsWorkspaceTrusted.mockReturnValue({
+      isTrusted: true,
+      source: 'file',
+    });
+
+    const { result } = renderHook(() =>
+      usePermissionsModifyTrust(mockOnExit, mockAddItem),
+    );
+
+    expect(result.current.isInheritedTrustFromParent).toBe(true);
+    expect(result.current.isInheritedTrustFromIde).toBe(false);
+  });
+
+  it('should detect inherited trust from IDE', () => {
+    mockedLoadTrustedFolders.mockReturnValue({
+      user: { config: {} }, // No explicit trust
+    } as unknown as LoadedTrustedFolders);
+    mockedIsWorkspaceTrusted.mockReturnValue({
+      isTrusted: true,
+      source: 'ide',
+    });
+
+    const { result } = renderHook(() =>
+      usePermissionsModifyTrust(mockOnExit, mockAddItem),
+    );
+
+    expect(result.current.isInheritedTrustFromIde).toBe(true);
+    expect(result.current.isInheritedTrustFromParent).toBe(false);
+  });
+
+  it('should set needsRestart but not save when trust changes', () => {
+    const mockSetValue = vi.fn();
+    mockedLoadTrustedFolders.mockReturnValue({
+      user: { config: {} },
+      setValue: mockSetValue,
+    } as unknown as LoadedTrustedFolders);
+
+    mockedIsWorkspaceTrusted
+      .mockReturnValueOnce({ isTrusted: false, source: 'file' })
+      .mockReturnValueOnce({ isTrusted: true, source: 'file' });
+
+    const { result } = renderHook(() =>
+      usePermissionsModifyTrust(mockOnExit, mockAddItem),
+    );
+
+    act(() => {
+      result.current.updateTrustLevel(TrustLevel.TRUST_FOLDER);
+    });
+
+    expect(result.current.needsRestart).toBe(true);
+    expect(mockSetValue).not.toHaveBeenCalled();
+  });
+
+  it('should save immediately if trust does not change', () => {
+    const mockSetValue = vi.fn();
+    mockedLoadTrustedFolders.mockReturnValue({
+      user: { config: {} },
+      setValue: mockSetValue,
+    } as unknown as LoadedTrustedFolders);
+
+    mockedIsWorkspaceTrusted.mockReturnValue({
+      isTrusted: true,
+      source: 'file',
+    });
+
+    const { result } = renderHook(() =>
+      usePermissionsModifyTrust(mockOnExit, mockAddItem),
+    );
+
+    act(() => {
+      result.current.updateTrustLevel(TrustLevel.TRUST_PARENT);
+    });
+
+    expect(result.current.needsRestart).toBe(false);
+    expect(mockSetValue).toHaveBeenCalledWith(
+      '/test/dir',
+      TrustLevel.TRUST_PARENT,
+    );
+    expect(mockOnExit).toHaveBeenCalled();
+  });
+
+  it('should commit the pending trust level change', () => {
+    const mockSetValue = vi.fn();
+    mockedLoadTrustedFolders.mockReturnValue({
+      user: { config: {} },
+      setValue: mockSetValue,
+    } as unknown as LoadedTrustedFolders);
+
+    mockedIsWorkspaceTrusted
+      .mockReturnValueOnce({ isTrusted: false, source: 'file' })
+      .mockReturnValueOnce({ isTrusted: true, source: 'file' });
+
+    const { result } = renderHook(() =>
+      usePermissionsModifyTrust(mockOnExit, mockAddItem),
+    );
+
+    act(() => {
+      result.current.updateTrustLevel(TrustLevel.TRUST_FOLDER);
+    });
+
+    expect(result.current.needsRestart).toBe(true);
+
+    act(() => {
+      result.current.commitTrustLevelChange();
+    });
+
+    expect(mockSetValue).toHaveBeenCalledWith(
+      '/test/dir',
+      TrustLevel.TRUST_FOLDER,
+    );
+  });
+
+  it('should add warning when setting DO_NOT_TRUST but still trusted by parent', () => {
+    mockedLoadTrustedFolders.mockReturnValue({
+      user: { config: {} },
+      setValue: vi.fn(),
+    } as unknown as LoadedTrustedFolders);
+    mockedIsWorkspaceTrusted.mockReturnValue({
+      isTrusted: true,
+      source: 'file',
+    });
+
+    const { result } = renderHook(() =>
+      usePermissionsModifyTrust(mockOnExit, mockAddItem),
+    );
+
+    act(() => {
+      result.current.updateTrustLevel(TrustLevel.DO_NOT_TRUST);
+    });
+
+    expect(mockAddItem).toHaveBeenCalledWith(
+      {
+        type: 'warning',
+        text: 'Note: This folder is still trusted because a parent folder is trusted.',
+      },
+      expect.any(Number),
+    );
+  });
+
+  it('should add warning when setting DO_NOT_TRUST but still trusted by IDE', () => {
+    mockedLoadTrustedFolders.mockReturnValue({
+      user: { config: {} },
+      setValue: vi.fn(),
+    } as unknown as LoadedTrustedFolders);
+    mockedIsWorkspaceTrusted.mockReturnValue({
+      isTrusted: true,
+      source: 'ide',
+    });
+
+    const { result } = renderHook(() =>
+      usePermissionsModifyTrust(mockOnExit, mockAddItem),
+    );
+
+    act(() => {
+      result.current.updateTrustLevel(TrustLevel.DO_NOT_TRUST);
+    });
+
+    expect(mockAddItem).toHaveBeenCalledWith(
+      {
+        type: 'warning',
+        text: 'Note: This folder is still trusted because the connected IDE workspace is trusted.',
+      },
+      expect.any(Number),
+    );
+  });
+});

packages/cli/src/ui/hooks/usePermissionsModifyTrust.ts

@@ -0,0 +1,128 @@
+/**
+ * @license
+ * Copyright 2025 Google LLC
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+import { useState, useCallback } from 'react';
+import * as process from 'node:process';
+import {
+  loadTrustedFolders,
+  TrustLevel,
+  isWorkspaceTrusted,
+} from '../../config/trustedFolders.js';
+import { useSettings } from '../contexts/SettingsContext.js';
+
+import { MessageType } from '../types.js';
+import { type UseHistoryManagerReturn } from './useHistoryManager.js';
+import type { LoadedSettings } from '../../config/settings.js';
+
+interface TrustState {
+  currentTrustLevel: TrustLevel | undefined;
+  isInheritedTrustFromParent: boolean;
+  isInheritedTrustFromIde: boolean;
+}
+
+function getInitialTrustState(
+  settings: LoadedSettings,
+  cwd: string,
+): TrustState {
+  const folders = loadTrustedFolders();
+  const explicitTrustLevel = folders.user.config[cwd];
+  const { isTrusted, source } = isWorkspaceTrusted(settings.merged);
+
+  const isInheritedTrust =
+    isTrusted &&
+    (!explicitTrustLevel || explicitTrustLevel === TrustLevel.DO_NOT_TRUST);
+
+  return {
+    currentTrustLevel: explicitTrustLevel,
+    isInheritedTrustFromParent: !!(source === 'file' && isInheritedTrust),
+    isInheritedTrustFromIde: !!(source === 'ide' && isInheritedTrust),
+  };
+}
+
+export const usePermissionsModifyTrust = (
+  onExit: () => void,
+  addItem: UseHistoryManagerReturn['addItem'],
+) => {
+  const settings = useSettings();
+  const cwd = process.cwd();
+
+  const [initialState] = useState(() => getInitialTrustState(settings, cwd));
+
+  const [currentTrustLevel] = useState<TrustLevel | undefined>(
+    initialState.currentTrustLevel,
+  );
+  const [pendingTrustLevel, setPendingTrustLevel] = useState<
+    TrustLevel | undefined
+  >();
+  const [isInheritedTrustFromParent] = useState(
+    initialState.isInheritedTrustFromParent,
+  );
+  const [isInheritedTrustFromIde] = useState(
+    initialState.isInheritedTrustFromIde,
+  );
+  const [needsRestart, setNeedsRestart] = useState(false);
+
+  const isFolderTrustEnabled = !!settings.merged.security?.folderTrust?.enabled;
+
+  const updateTrustLevel = useCallback(
+    (trustLevel: TrustLevel) => {
+      const wasTrusted = isWorkspaceTrusted(settings.merged).isTrusted;
+
+      // Create a temporary config to check the new trust status without writing
+      const currentConfig = loadTrustedFolders().user.config;
+      const newConfig = { ...currentConfig, [cwd]: trustLevel };
+
+      const { isTrusted, source } = isWorkspaceTrusted(
+        settings.merged,
+        newConfig,
+      );
+
+      if (trustLevel === TrustLevel.DO_NOT_TRUST && isTrusted) {
+        let message =
+          'Note: This folder is still trusted because the connected IDE workspace is trusted.';
+        if (source === 'file') {
+          message =
+            'Note: This folder is still trusted because a parent folder is trusted.';
+        }
+        addItem(
+          {
+            type: MessageType.WARNING,
+            text: message,
+          },
+          Date.now(),
+        );
+      }
+
+      if (wasTrusted !== isTrusted) {
+        setPendingTrustLevel(trustLevel);
+        setNeedsRestart(true);
+      } else {
+        const folders = loadTrustedFolders();
+        folders.setValue(cwd, trustLevel);
+        onExit();
+      }
+    },
+    [cwd, settings.merged, onExit, addItem],
+  );
+
+  const commitTrustLevelChange = useCallback(() => {
+    if (pendingTrustLevel) {
+      const folders = loadTrustedFolders();
+      folders.setValue(cwd, pendingTrustLevel);
+    }
+  }, [cwd, pendingTrustLevel]);
+
+  return {
+    cwd,
+    currentTrustLevel,
+    isInheritedTrustFromParent,
+    isInheritedTrustFromIde,
+    needsRestart,
+    updateTrustLevel,
+    commitTrustLevelChange,
+    isFolderTrustEnabled,
+  };
+};