diff --git a/packages/cli/src/ui/utils/policyUtils.test.ts b/packages/cli/src/ui/utils/policyUtils.test.ts
index f3077ca5b9..2ffa07c4f9 100644
--- a/packages/cli/src/ui/utils/policyUtils.test.ts
+++ b/packages/cli/src/ui/utils/policyUtils.test.ts
@@ -65,7 +65,7 @@ describe('buildPolicyListItems', () => {
     const rules = [
       { decision: PolicyDecision.ALLOW, toolName: 'run_shell_command' },
       { decision: PolicyDecision.ALLOW, toolName: 'unknown_tool' },
-      { decision: PolicyDecision.ALLOW },
+      { decision: PolicyDecision.ALLOW, toolName: '*' },
     ];
 
     const items = buildPolicyListItems(
diff --git a/packages/cli/src/ui/utils/policyUtils.ts b/packages/cli/src/ui/utils/policyUtils.ts
index a1447a83f3..a3570aee1c 100644
--- a/packages/cli/src/ui/utils/policyUtils.ts
+++ b/packages/cli/src/ui/utils/policyUtils.ts
@@ -38,9 +38,10 @@ export function buildPolicyListItems(
     .filter(({ rule }) => rule.decision === decision)
     .sort((a, b) => (b.rule.priority ?? 0) - (a.rule.priority ?? 0))
     .map(({ rule, index }) => {
-      const toolDisplayName = rule.toolName
-        ? (toolDisplayNames.get(rule.toolName) ?? rule.toolName)
-        : 'all tools';
+      const toolDisplayName =
+        !rule.toolName || rule.toolName === '*'
+          ? 'all tools'
+          : (toolDisplayNames.get(rule.toolName) ?? rule.toolName);
       const constraint = rule.constraintDisplay;
       const source = rule.source ?? '';