diff --git a/packages/cli/src/config/trustedFolders.ts b/packages/cli/src/config/trustedFolders.ts
index 6602ec85cb..d308404ba3 100644
--- a/packages/cli/src/config/trustedFolders.ts
+++ b/packages/cli/src/config/trustedFolders.ts
@@ -76,11 +76,17 @@ export class LoadedTrustedFolders {
    * @param location path
    * @returns
    */
-  isPathTrusted(location: string): boolean | undefined {
+  isPathTrusted(
+    location: string,
+    config?: Record<string, TrustLevel>,
+  ): boolean | undefined {
+    const configToUse = config ?? this.user.config;
     const trustedPaths: string[] = [];
     const untrustedPaths: string[] = [];
 
-    for (const rule of this.rules) {
+    for (const rule of Object.entries(configToUse).map(
+      ([path, trustLevel]) => ({ path, trustLevel }),
+    )) {
       switch (rule.trustLevel) {
         case TrustLevel.TRUST_FOLDER:
           trustedPaths.push(rule.path);
@@ -113,8 +119,19 @@ export class LoadedTrustedFolders {
   }
 
   setValue(path: string, trustLevel: TrustLevel): void {
+    const originalTrustLevel = this.user.config[path];
     this.user.config[path] = trustLevel;
-    saveTrustedFolders(this.user);
+    try {
+      saveTrustedFolders(this.user);
+    } catch (e) {
+      // Revert the in-memory change if the save failed.
+      if (originalTrustLevel === undefined) {
+        delete this.user.config[path];
+      } else {
+        this.user.config[path] = originalTrustLevel;
+      }
+      throw e;
+    }
   }
 }
 
@@ -174,21 +191,17 @@ export function loadTrustedFolders(): LoadedTrustedFolders {
 export function saveTrustedFolders(
   trustedFoldersFile: TrustedFoldersFile,
 ): void {
-  try {
-    // Ensure the directory exists
-    const dirPath = path.dirname(trustedFoldersFile.path);
-    if (!fs.existsSync(dirPath)) {
-      fs.mkdirSync(dirPath, { recursive: true });
-    }
-
-    fs.writeFileSync(
-      trustedFoldersFile.path,
-      JSON.stringify(trustedFoldersFile.config, null, 2),
-      { encoding: 'utf-8', mode: 0o600 },
-    );
-  } catch (error) {
-    console.error('Error saving trusted folders file:', error);
+  // Ensure the directory exists
+  const dirPath = path.dirname(trustedFoldersFile.path);
+  if (!fs.existsSync(dirPath)) {
+    fs.mkdirSync(dirPath, { recursive: true });
   }
+
+  fs.writeFileSync(
+    trustedFoldersFile.path,
+    JSON.stringify(trustedFoldersFile.config, null, 2),
+    { encoding: 'utf-8', mode: 0o600 },
+  );
 }
 
 /** Is folder trust feature enabled per the current applied settings */
@@ -201,10 +214,7 @@ function getWorkspaceTrustFromLocalConfig(
   trustConfig?: Record<string, TrustLevel>,
 ): TrustResult {
   const folders = loadTrustedFolders();
-
-  if (trustConfig) {
-    folders.user.config = trustConfig;
-  }
+  const configToUse = trustConfig ?? folders.user.config;
 
   if (folders.errors.length > 0) {
     const errorMessages = folders.errors.map(
@@ -215,7 +225,7 @@ function getWorkspaceTrustFromLocalConfig(
     );
   }
 
-  const isTrusted = folders.isPathTrusted(process.cwd());
+  const isTrusted = folders.isPathTrusted(process.cwd(), configToUse);
   return {
     isTrusted,
     source: isTrusted !== undefined ? 'file' : undefined,
diff --git a/packages/cli/src/ui/components/PermissionsModifyTrustDialog.test.tsx b/packages/cli/src/ui/components/PermissionsModifyTrustDialog.test.tsx
index bc065ded42..00247cedff 100644
--- a/packages/cli/src/ui/components/PermissionsModifyTrustDialog.test.tsx
+++ b/packages/cli/src/ui/components/PermissionsModifyTrustDialog.test.tsx
@@ -148,10 +148,11 @@ describe('PermissionsModifyTrustDialog', () => {
     });
   });
 
-  it('should commit, restart, and exit on `r` keypress', async () => {
+  it('should commit and restart `r` keypress', async () => {
     const mockRelaunchApp = vi
       .spyOn(processUtils, 'relaunchApp')
       .mockResolvedValue(undefined);
+    mockCommitTrustLevelChange.mockReturnValue(true);
     vi.mocked(usePermissionsModifyTrust).mockReturnValue({
       cwd: '/test/dir',
       currentTrustLevel: TrustLevel.DO_NOT_TRUST,
@@ -175,7 +176,6 @@ describe('PermissionsModifyTrustDialog', () => {
     await waitFor(() => {
       expect(mockCommitTrustLevelChange).toHaveBeenCalled();
       expect(mockRelaunchApp).toHaveBeenCalled();
-      expect(onExit).toHaveBeenCalled();
     });
 
     mockRelaunchApp.mockRestore();
diff --git a/packages/cli/src/ui/components/PermissionsModifyTrustDialog.tsx b/packages/cli/src/ui/components/PermissionsModifyTrustDialog.tsx
index 3814e9ecc6..211d405e40 100644
--- a/packages/cli/src/ui/components/PermissionsModifyTrustDialog.tsx
+++ b/packages/cli/src/ui/components/PermissionsModifyTrustDialog.tsx
@@ -62,9 +62,12 @@ export function PermissionsModifyTrustDialog({
         onExit();
       }
       if (needsRestart && key.name === 'r') {
-        commitTrustLevelChange();
-        relaunchApp();
-        onExit();
+        const success = commitTrustLevelChange();
+        if (success) {
+          relaunchApp();
+        } else {
+          onExit();
+        }
       }
     },
     { isActive: true },
diff --git a/packages/cli/src/ui/hooks/useFolderTrust.test.ts b/packages/cli/src/ui/hooks/useFolderTrust.test.ts
index e97c23da46..ecfccf1f64 100644
--- a/packages/cli/src/ui/hooks/useFolderTrust.test.ts
+++ b/packages/cli/src/ui/hooks/useFolderTrust.test.ts
@@ -14,8 +14,10 @@ import { FolderTrustChoice } from '../components/FolderTrustDialog.js';
 import type { LoadedTrustedFolders } from '../../config/trustedFolders.js';
 import { TrustLevel } from '../../config/trustedFolders.js';
 import * as trustedFolders from '../../config/trustedFolders.js';
+import { coreEvents } from '@google/gemini-cli-core';
 
 const mockedCwd = vi.hoisted(() => vi.fn());
+const mockedExit = vi.hoisted(() => vi.fn());
 
 vi.mock('node:process', async () => {
   const actual =
@@ -23,6 +25,7 @@ vi.mock('node:process', async () => {
   return {
     ...actual,
     cwd: mockedCwd,
+    exit: mockedExit,
     platform: 'linux',
   };
 });
@@ -35,6 +38,7 @@ describe('useFolderTrust', () => {
   let addItem: Mock;
 
   beforeEach(() => {
+    vi.useFakeTimers();
     mockSettings = {
       merged: {
         security: {
@@ -60,6 +64,7 @@ describe('useFolderTrust', () => {
   });
 
   afterEach(() => {
+    vi.useRealTimers();
     vi.clearAllMocks();
   });
 
@@ -260,4 +265,30 @@ describe('useFolderTrust', () => {
     expect(result.current.isRestarting).toBe(false);
     expect(result.current.isFolderTrustDialogOpen).toBe(false); // Dialog should close
   });
+
+  it('should emit feedback on failure to set value', () => {
+    isWorkspaceTrustedSpy.mockReturnValue({
+      isTrusted: undefined,
+      source: undefined,
+    });
+    (mockTrustedFolders.setValue as Mock).mockImplementation(() => {
+      throw new Error('test error');
+    });
+    const emitFeedbackSpy = vi.spyOn(coreEvents, 'emitFeedback');
+    const { result } = renderHook(() =>
+      useFolderTrust(mockSettings, onTrustChange, addItem),
+    );
+
+    act(() => {
+      result.current.handleFolderTrustSelect(FolderTrustChoice.TRUST_FOLDER);
+    });
+
+    vi.runAllTimers();
+
+    expect(emitFeedbackSpy).toHaveBeenCalledWith(
+      'error',
+      'Failed to save trust settings. Exiting Gemini CLI.',
+    );
+    expect(mockedExit).toHaveBeenCalledWith(1);
+  });
 });
diff --git a/packages/cli/src/ui/hooks/useFolderTrust.ts b/packages/cli/src/ui/hooks/useFolderTrust.ts
index 55b57faed4..079d727b78 100644
--- a/packages/cli/src/ui/hooks/useFolderTrust.ts
+++ b/packages/cli/src/ui/hooks/useFolderTrust.ts
@@ -14,6 +14,7 @@ import {
 } from '../../config/trustedFolders.js';
 import * as process from 'node:process';
 import { type HistoryItemWithoutId, MessageType } from '../types.js';
+import { coreEvents } from '@google/gemini-cli-core';
 
 export const useFolderTrust = (
   settings: LoadedSettings,
@@ -67,7 +68,19 @@ export const useFolderTrust = (
           return;
       }
 
-      trustedFolders.setValue(cwd, trustLevel);
+      try {
+        trustedFolders.setValue(cwd, trustLevel);
+      } catch (_e) {
+        coreEvents.emitFeedback(
+          'error',
+          'Failed to save trust settings. Exiting Gemini CLI.',
+        );
+        setTimeout(() => {
+          process.exit(1);
+        }, 100);
+        return;
+      }
+
       const currentIsTrusted =
         trustLevel === TrustLevel.TRUST_FOLDER ||
         trustLevel === TrustLevel.TRUST_PARENT;
diff --git a/packages/cli/src/ui/hooks/usePermissionsModifyTrust.test.ts b/packages/cli/src/ui/hooks/usePermissionsModifyTrust.test.ts
index d317170c18..bfe35bfb05 100644
--- a/packages/cli/src/ui/hooks/usePermissionsModifyTrust.test.ts
+++ b/packages/cli/src/ui/hooks/usePermissionsModifyTrust.test.ts
@@ -19,6 +19,7 @@ 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';
+import { coreEvents } from '@google/gemini-cli-core';
 
 // Hoist mocks
 const mockedCwd = vi.hoisted(() => vi.fn());
@@ -259,4 +260,70 @@ describe('usePermissionsModifyTrust', () => {
       expect.any(Number),
     );
   });
+
+  it('should emit feedback when setValue throws in updateTrustLevel', () => {
+    const mockSetValue = vi.fn().mockImplementation(() => {
+      throw new Error('test error');
+    });
+    mockedLoadTrustedFolders.mockReturnValue({
+      user: { config: {} },
+      setValue: mockSetValue,
+    } as unknown as LoadedTrustedFolders);
+
+    mockedIsWorkspaceTrusted.mockReturnValue({
+      isTrusted: true,
+      source: 'file',
+    });
+
+    const emitFeedbackSpy = vi.spyOn(coreEvents, 'emitFeedback');
+
+    const { result } = renderHook(() =>
+      usePermissionsModifyTrust(mockOnExit, mockAddItem),
+    );
+
+    act(() => {
+      result.current.updateTrustLevel(TrustLevel.TRUST_PARENT);
+    });
+
+    expect(emitFeedbackSpy).toHaveBeenCalledWith(
+      'error',
+      'Failed to save trust settings. Your changes may not persist.',
+    );
+    expect(mockOnExit).toHaveBeenCalled();
+  });
+
+  it('should emit feedback when setValue throws in commitTrustLevelChange', () => {
+    const mockSetValue = vi.fn().mockImplementation(() => {
+      throw new Error('test error');
+    });
+    mockedLoadTrustedFolders.mockReturnValue({
+      user: { config: {} },
+      setValue: mockSetValue,
+    } as unknown as LoadedTrustedFolders);
+
+    mockedIsWorkspaceTrusted
+      .mockReturnValueOnce({ isTrusted: false, source: 'file' })
+      .mockReturnValueOnce({ isTrusted: true, source: 'file' });
+
+    const emitFeedbackSpy = vi.spyOn(coreEvents, 'emitFeedback');
+
+    const { result } = renderHook(() =>
+      usePermissionsModifyTrust(mockOnExit, mockAddItem),
+    );
+
+    act(() => {
+      result.current.updateTrustLevel(TrustLevel.TRUST_FOLDER);
+    });
+
+    act(() => {
+      const success = result.current.commitTrustLevelChange();
+      expect(success).toBe(false);
+    });
+
+    expect(emitFeedbackSpy).toHaveBeenCalledWith(
+      'error',
+      'Failed to save trust settings. Your changes may not persist.',
+    );
+    expect(result.current.needsRestart).toBe(false);
+  });
 });
diff --git a/packages/cli/src/ui/hooks/usePermissionsModifyTrust.ts b/packages/cli/src/ui/hooks/usePermissionsModifyTrust.ts
index f5a10ff38f..64e2011b0d 100644
--- a/packages/cli/src/ui/hooks/usePermissionsModifyTrust.ts
+++ b/packages/cli/src/ui/hooks/usePermissionsModifyTrust.ts
@@ -16,6 +16,7 @@ import { useSettings } from '../contexts/SettingsContext.js';
 import { MessageType } from '../types.js';
 import { type UseHistoryManagerReturn } from './useHistoryManager.js';
 import type { LoadedSettings } from '../../config/settings.js';
+import { coreEvents } from '@google/gemini-cli-core';
 
 interface TrustState {
   currentTrustLevel: TrustLevel | undefined;
@@ -101,7 +102,14 @@ export const usePermissionsModifyTrust = (
         setNeedsRestart(true);
       } else {
         const folders = loadTrustedFolders();
-        folders.setValue(cwd, trustLevel);
+        try {
+          folders.setValue(cwd, trustLevel);
+        } catch (_e) {
+          coreEvents.emitFeedback(
+            'error',
+            'Failed to save trust settings. Your changes may not persist.',
+          );
+        }
         onExit();
       }
     },
@@ -111,8 +119,20 @@ export const usePermissionsModifyTrust = (
   const commitTrustLevelChange = useCallback(() => {
     if (pendingTrustLevel) {
       const folders = loadTrustedFolders();
-      folders.setValue(cwd, pendingTrustLevel);
+      try {
+        folders.setValue(cwd, pendingTrustLevel);
+        return true;
+      } catch (_e) {
+        coreEvents.emitFeedback(
+          'error',
+          'Failed to save trust settings. Your changes may not persist.',
+        );
+        setNeedsRestart(false);
+        setPendingTrustLevel(undefined);
+        return false;
+      }
     }
+    return true;
   }, [cwd, pendingTrustLevel]);
 
   return {