diff --git a/packages/core/src/config/config.test.ts b/packages/core/src/config/config.test.ts
index 59133f6997..f6eab55d0c 100644
--- a/packages/core/src/config/config.test.ts
+++ b/packages/core/src/config/config.test.ts
@@ -1682,6 +1682,12 @@ describe('setApprovalMode with folder trust', () => {
     expect(() => config.setApprovalMode(ApprovalMode.DEFAULT)).not.toThrow();
   });
 
+  it('should NOT throw an error when setting PLAN mode in an untrusted folder', () => {
+    const config = new Config(baseParams);
+    vi.spyOn(config, 'isTrustedFolder').mockReturnValue(false);
+    expect(() => config.setApprovalMode(ApprovalMode.PLAN)).not.toThrow();
+  });
+
   it('should NOT throw an error when setting any mode in a trusted folder', () => {
     const config = new Config(baseParams);
     vi.spyOn(config, 'isTrustedFolder').mockReturnValue(true);
diff --git a/packages/core/src/config/config.ts b/packages/core/src/config/config.ts
index f3e02510ed..012d0e6b4e 100644
--- a/packages/core/src/config/config.ts
+++ b/packages/core/src/config/config.ts
@@ -2517,7 +2517,11 @@ export class Config implements McpContext, AgentLoopContext {
   }
 
   setApprovalMode(mode: ApprovalMode): void {
-    if (!this.isTrustedFolder() && mode !== ApprovalMode.DEFAULT) {
+    if (
+      !this.isTrustedFolder() &&
+      mode !== ApprovalMode.DEFAULT &&
+      mode !== ApprovalMode.PLAN
+    ) {
       throw new Error(
         'Cannot enable privileged approval modes in an untrusted folder.',
       );