diff --git a/src/main/ipc/filesystem-auth.test.ts b/src/main/ipc/filesystem-auth.test.ts
index a98cfe9f60d..f0194c29b50 100644
--- a/src/main/ipc/filesystem-auth.test.ts
+++ b/src/main/ipc/filesystem-auth.test.ts
@@ -258,6 +258,32 @@ describe('filesystem-auth path containment', () => {
     }
   })
 
+  it('does not authorize a repo-less legacy SSH folder through its local-stamped group', async () => {
+    const tempRoot = await mkdtemp(join(tmpdir(), 'orca-auth-legacy-remote-folder-'))
+    try {
+      const folderPath = join(tempRoot, 'remote-platform')
+      await mkdir(folderPath, { recursive: true })
+      const projectGroup = makeProjectGroup({
+        parentPath: folderPath,
+        connectionId: undefined,
+        executionHostId: 'local'
+      })
+      const folderWorkspace = makeFolderWorkspace({
+        folderPath,
+        projectGroupId: projectGroup.id,
+        connectionId: 'ssh-1'
+      })
+      const store = makeStore([], {
+        projectGroups: [projectGroup],
+        folderWorkspaces: [folderWorkspace]
+      })
+
+      await expect(resolveAuthorizedPath(folderPath, store)).rejects.toThrow('Access denied')
+    } finally {
+      await rm(tempRoot, { recursive: true, force: true })
+    }
+  })
+
   it('does not authorize SSH-only folder-backed project group roots as local paths', async () => {
     const tempRoot = await mkdtemp(join(tmpdir(), 'orca-auth-remote-project-group-'))
     try {
diff --git a/src/main/ipc/filesystem-auth.ts b/src/main/ipc/filesystem-auth.ts
index 50b01a56c3b..faff332ed1f 100644
--- a/src/main/ipc/filesystem-auth.ts
+++ b/src/main/ipc/filesystem-auth.ts
@@ -11,9 +11,16 @@ import {
   getProjectGroupOwnerHostId,
   resolveFolderWorkspaceProjectGroup
 } from '../../shared/project-groups'
-import { getRepoExecutionHostId, LOCAL_EXECUTION_HOST_ID } from '../../shared/execution-host'
-import type { ProjectGroup, Repo } from '../../shared/types'
-import { resolveFolderWorkspaceCatalogOwnerHostId } from '../../shared/folder-workspaces'
+import {
+  getRepoExecutionHostId,
+  LOCAL_EXECUTION_HOST_ID,
+  normalizeExecutionHostId
+} from '../../shared/execution-host'
+import type { FolderWorkspace, ProjectGroup, Repo } from '../../shared/types'
+import {
+  resolveFolderWorkspaceCatalogOwnerHostIdFromIndex,
+  resolveFolderWorkspaceProjectGroupWithLegacySsh
+} from '../../shared/folder-workspaces'
 
 export const PATH_ACCESS_DENIED_MESSAGE =
   'Access denied: path resolves outside allowed directories. If this blocks a legitimate workflow, please file a GitHub issue.'
@@ -75,7 +82,9 @@ type FolderAuthIndex = {
 
 type GroupMembershipSummary = {
   repoCount: number
+  folderWorkspaceCount: number
   hasLocalOwner: boolean
+  hasLocalFolderWorkspace: boolean
   hasUnconnectedRepo: boolean
   unsafeCycle: boolean
 }
@@ -86,7 +95,8 @@ function ownerGroupKey(ownerHostId: string, groupId: string): string {
 
 function buildFolderAuthIndex(
   projectGroups: readonly ProjectGroup[],
-  repos: readonly Repo[]
+  repos: readonly Repo[],
+  folderWorkspaces: readonly FolderWorkspace[]
 ): FolderAuthIndex {
   const projectGroupIndex = buildProjectGroupOwnerIndex(projectGroups)
   const parentByGroup = new Map<string, string>()
@@ -156,6 +166,32 @@ function buildFolderAuthIndex(
       }
     }
   }
+  for (const workspace of folderWorkspaces) {
+    if (
+      workspace.connectionId === undefined &&
+      !normalizeExecutionHostId(workspace.executionHostId)
+    ) {
+      continue
+    }
+    const group = resolveFolderWorkspaceProjectGroupWithLegacySsh(projectGroupIndex, workspace)
+    if (!group) {
+      continue
+    }
+    const ownerHostId = resolveFolderWorkspaceCatalogOwnerHostIdFromIndex(
+      workspace,
+      projectGroupIndex
+    )
+    const summary = groupMembership.get(ownerGroupKey(getProjectGroupOwnerHostId(group), group.id))
+    if (summary) {
+      summary.folderWorkspaceCount++
+      summary.hasLocalFolderWorkspace ||= ownerHostId === LOCAL_EXECUTION_HOST_ID
+    }
+    const legacySummary = legacyGroupMembership.get(group.id)
+    if (legacySummary) {
+      legacySummary.folderWorkspaceCount++
+      legacySummary.hasLocalFolderWorkspace ||= ownerHostId === LOCAL_EXECUTION_HOST_ID
+    }
+  }
 
   const pending = [...remainingChildren]
     .filter(([, childCount]) => childCount === 0)
@@ -235,7 +271,9 @@ function buildFolderAuthIndex(
 function emptyGroupMembershipSummary(): GroupMembershipSummary {
   return {
     repoCount: 0,
+    folderWorkspaceCount: 0,
     hasLocalOwner: false,
+    hasLocalFolderWorkspace: false,
     hasUnconnectedRepo: false,
     unsafeCycle: false
   }
@@ -243,7 +281,9 @@ function emptyGroupMembershipSummary(): GroupMembershipSummary {
 
 function mergeGroupMembership(target: GroupMembershipSummary, child: GroupMembershipSummary): void {
   target.repoCount += child.repoCount
+  target.folderWorkspaceCount += child.folderWorkspaceCount
   target.hasLocalOwner ||= child.hasLocalOwner
+  target.hasLocalFolderWorkspace ||= child.hasLocalFolderWorkspace
   target.hasUnconnectedRepo ||= child.hasUnconnectedRepo
   target.unsafeCycle ||= child.unsafeCycle
 }
@@ -293,18 +333,22 @@ function isRemoteOnlyFolderScopeWithIndex(
       return true
     }
     const hasAnyCandidate =
-      legacySummary.repoCount > 0 || hasIndexedPathInside(folderPath, index.allRepoPaths)
+      legacySummary.repoCount > 0 ||
+      legacySummary.folderWorkspaceCount > 0 ||
+      hasIndexedPathInside(folderPath, index.allRepoPaths)
     const hasLocalCandidate =
-      legacySummary.hasLocalOwner || hasIndexedPathInside(folderPath, index.localOwnerRepoPaths)
+      legacySummary.hasLocalOwner ||
+      legacySummary.hasLocalFolderWorkspace ||
+      hasIndexedPathInside(folderPath, index.localOwnerRepoPaths)
     if (hasAnyCandidate && !hasLocalCandidate) {
       return true
     }
   }
-  if (summary.repoCount === 0) {
+  if (summary.repoCount === 0 && summary.folderWorkspaceCount === 0) {
     // Why: empty membership means no remote-linked evidence; authorize local folder scopes without path scans.
     return false
   }
-  if (summary.hasUnconnectedRepo) {
+  if (summary.hasUnconnectedRepo || summary.hasLocalFolderWorkspace) {
     return false
   }
   if (hasIndexedPathInside(folderPath, index.unconnectedRepoPathsByOwner.get(ownerHostId) ?? [])) {
@@ -318,8 +362,9 @@ function getLocalFolderScopeRoots(store: Store): string[] {
   const repos = scopeStore.getRepos()
   // Why: many filesystem tests use narrow Store doubles; folder scopes are additive.
   const projectGroups = scopeStore.getProjectGroups?.() ?? []
+  const folderWorkspaces = scopeStore.getFolderWorkspaces?.() ?? []
   // Why: one owner-indexed pass avoids O((groups+folders)*(groups+repos)) remote-only checks.
-  const index = buildFolderAuthIndex(projectGroups, repos)
+  const index = buildFolderAuthIndex(projectGroups, repos, folderWorkspaces)
   const roots: string[] = []
   for (const group of projectGroups) {
     if (
@@ -337,7 +382,7 @@ function getLocalFolderScopeRoots(store: Store): string[] {
       roots.push(resolve(group.parentPath))
     }
   }
-  for (const workspace of scopeStore.getFolderWorkspaces?.() ?? []) {
+  for (const workspace of folderWorkspaces) {
     const group = resolveFolderWorkspaceProjectGroup(index.projectGroupIndex, workspace)
     if (!group && index.projectGroupIndex.byId.has(workspace.projectGroupId)) {
       continue
@@ -345,7 +390,7 @@ function getLocalFolderScopeRoots(store: Store): string[] {
     // Why: narrow Store doubles may omit groups; folder roots stay additive from the workspace catalog.
     const ownerHostId = group
       ? getProjectGroupOwnerHostId(group)
-      : resolveFolderWorkspaceCatalogOwnerHostId(workspace, projectGroups)
+      : resolveFolderWorkspaceCatalogOwnerHostIdFromIndex(workspace, index.projectGroupIndex)
     if (!ownerHostId) {
       continue
     }
diff --git a/src/renderer/src/components/sidebar/WorktreeList.tsx b/src/renderer/src/components/sidebar/WorktreeList.tsx
index 984fbf32d23..21255c4ddb8 100644
--- a/src/renderer/src/components/sidebar/WorktreeList.tsx
+++ b/src/renderer/src/components/sidebar/WorktreeList.tsx
@@ -1102,7 +1102,8 @@ export function renderRowContainsWorktree(
     return (
       folderWorkspaceKey(row.folderWorkspace.id) === worktreeId &&
       (!ownerHostId ||
-        getProjectGroupMutationSelector(row.projectGroup).ownerHostId === ownerHostId)
+        resolveFolderWorkspaceCatalogOwnerHostId(row.folderWorkspace, [row.projectGroup]) ===
+          ownerHostId)
     )
   }
   if (row.type === 'lineage-group') {
@@ -1261,7 +1262,9 @@ function getRenderedSidebarSelectionEntries(
     } else if (row.type === 'folder-workspace') {
       worktree = {
         ...folderWorkspaceToWorktree(row.folderWorkspace),
-        hostId: getProjectGroupMutationSelector(row.projectGroup).ownerHostId
+        hostId:
+          resolveFolderWorkspaceCatalogOwnerHostId(row.folderWorkspace, [row.projectGroup]) ??
+          getProjectGroupMutationSelector(row.projectGroup).ownerHostId
       }
     } else {
       continue
@@ -5230,9 +5233,11 @@ const VirtualizedWorktreeViewport = React.memo(function VirtualizedWorktreeViewp
 
             if (row.type === 'folder-workspace') {
               const folderWorkspaceRow = row as FolderWorkspaceItemRow
-              const folderOwnerHostId = getProjectGroupMutationSelector(
-                folderWorkspaceRow.projectGroup
-              ).ownerHostId
+              const folderOwnerHostId =
+                resolveFolderWorkspaceCatalogOwnerHostId(
+                  folderWorkspaceRow.folderWorkspace,
+                  projectGroups
+                ) ?? getProjectGroupMutationSelector(folderWorkspaceRow.projectGroup).ownerHostId
               const folderWorktree = {
                 ...folderWorkspaceToWorktree(folderWorkspaceRow.folderWorkspace),
                 hostId: folderOwnerHostId
@@ -5844,8 +5849,14 @@ const WorktreeList = React.memo(function WorktreeList({
     })
   }, [defaultHostId, repos, visibleHostIdSet])
   const visibleProjectGroupsForRows = useMemo(
-    () => filterProjectGroupsForVisibleHosts(projectGroups, visibleHostIdSet, defaultHostId),
-    [defaultHostId, projectGroups, visibleHostIdSet]
+    () =>
+      filterProjectGroupsForVisibleHosts(
+        projectGroups,
+        visibleHostIdSet,
+        defaultHostId,
+        folderWorkspaces
+      ),
+    [defaultHostId, folderWorkspaces, projectGroups, visibleHostIdSet]
   )
   const ownerQualifiedProjectGroupIds = useMemo(
     () => buildProjectGroupSidebarIndex(projectGroups).ambiguousIds,
diff --git a/src/renderer/src/components/sidebar/worktree-list-folder-reveal.test.ts b/src/renderer/src/components/sidebar/worktree-list-folder-reveal.test.ts
index 624e884401c..7f059717018 100644
--- a/src/renderer/src/components/sidebar/worktree-list-folder-reveal.test.ts
+++ b/src/renderer/src/components/sidebar/worktree-list-folder-reveal.test.ts
@@ -182,6 +182,23 @@ describe('worktree list folder reveal', () => {
     ).toEqual([getProjectGroupHeaderKey(runtimeGroup.id, 'runtime:env-1')])
   })
 
+  it('reveals a legacy SSH folder through its unambiguous local-stamped group', () => {
+    const localGroup = makeProjectGroup({ id: 'legacy-group', executionHostId: 'local' })
+    const legacyFolder = makeFolderWorkspace({
+      projectGroupId: localGroup.id,
+      connectionId: 'builder'
+    })
+
+    expect(
+      getFolderWorkspaceRevealGroupKeys(
+        folderWorkspaceKey(legacyFolder.id),
+        [legacyFolder],
+        [localGroup],
+        'ssh:builder'
+      )
+    ).toEqual([getProjectGroupHeaderKey(localGroup.id)])
+  })
+
   it('uses qualified DOM row keys only for collision-qualified folder rows', () => {
     expect(
       getFolderWorkspaceSidebarRowKey('folder-workspace-1', 'folder-workspace:folder-workspace-1')
diff --git a/src/renderer/src/components/sidebar/worktree-list-folder-reveal.ts b/src/renderer/src/components/sidebar/worktree-list-folder-reveal.ts
index 153ed8d6c01..a63bd05ff59 100644
--- a/src/renderer/src/components/sidebar/worktree-list-folder-reveal.ts
+++ b/src/renderer/src/components/sidebar/worktree-list-folder-reveal.ts
@@ -5,9 +5,11 @@ import { resolveFolderWorkspaceCatalogOwnerHostId } from '../../../../shared/fol
 import { folderWorkspaceKey, parseWorkspaceKey } from '../../../../shared/workspace-scope'
 import {
   buildProjectGroupSidebarIndex,
-  findProjectGroupForSidebarOwner,
+  findProjectGroupForFolderWorkspace,
   findProjectGroupParentForSidebar,
-  getProjectGroupHeaderKey
+  getProjectGroupHeaderKey,
+  getProjectGroupOwnerHostId,
+  getProjectGroupSidebarIdentity
 } from './worktree-list-groups'
 
 function findFolderWorkspaceByKey(
@@ -107,29 +109,21 @@ export function getFolderWorkspaceRevealGroupKeys(
     return []
   }
 
-  const resolvedOwnerHostId =
-    ownerHostId ?? resolveFolderWorkspaceCatalogOwnerHostId(folderWorkspace, projectGroups)
-  if (!resolvedOwnerHostId) {
-    return []
-  }
   const projectGroupIndex = buildProjectGroupSidebarIndex(projectGroups)
-  let group = findProjectGroupForSidebarOwner(
-    projectGroupIndex,
-    folderWorkspace.projectGroupId,
-    resolvedOwnerHostId
-  )
+  let group = findProjectGroupForFolderWorkspace(projectGroupIndex, folderWorkspace)
   const keys: string[] = []
   const seen = new Set<string>()
   while (group) {
-    const identity = JSON.stringify([resolvedOwnerHostId, group.id])
+    const identity = getProjectGroupSidebarIdentity(group)
     if (seen.has(identity)) {
       break
     }
     seen.add(identity)
+    const groupOwnerHostId = getProjectGroupOwnerHostId(group)
     keys.unshift(
       getProjectGroupHeaderKey(
         group.id,
-        projectGroupIndex.ambiguousIds.has(group.id) ? resolvedOwnerHostId : undefined
+        projectGroupIndex.ambiguousIds.has(group.id) ? groupOwnerHostId : undefined
       )
     )
     group = findProjectGroupParentForSidebar(projectGroupIndex, group)
diff --git a/src/renderer/src/components/sidebar/worktree-list-groups.ts b/src/renderer/src/components/sidebar/worktree-list-groups.ts
index 8fb32d5c092..c1c5bbdc245 100644
--- a/src/renderer/src/components/sidebar/worktree-list-groups.ts
+++ b/src/renderer/src/components/sidebar/worktree-list-groups.ts
@@ -31,7 +31,10 @@ import {
   getProjectGroupOwnerIdentity,
   UNGROUPED_PROJECT_GROUP_KEY
 } from '../../../../shared/project-groups'
-import { getFolderWorkspaceRowKey } from '../../../../shared/folder-workspaces'
+import {
+  getFolderWorkspaceCatalogOwnerHostId,
+  getFolderWorkspaceRowKey
+} from '../../../../shared/folder-workspaces'
 import { cloneDefaultWorkspaceStatuses } from '../../../../shared/workspace-statuses'
 import type { AppState } from '../../store/types'
 import { getGitHubPRCacheKey, getLegacyGitHubPRCacheKey } from '../../store/slices/github-cache-key'
@@ -235,7 +238,7 @@ export function getAmbiguousFolderWorkspaceSidebarIds(
     if (!group || ambiguousIds.has(workspace.id)) {
       continue
     }
-    const ownerHostId = getProjectGroupOwnerHostId(group)
+    const ownerHostId = getFolderWorkspaceCatalogOwnerHostId(workspace, [group])
     const existingOwnerHostId = ownerById.get(workspace.id)
     if (existingOwnerHostId && existingOwnerHostId !== ownerHostId) {
       ownerById.delete(workspace.id)
@@ -284,6 +287,9 @@ export function getFolderWorkspaceExecutionHostIdForRows({
   }
   if (projectGroup) {
     const explicitProjectGroupHostId = normalizeExecutionHostId(projectGroup.executionHostId)
+    if (explicitProjectGroupHostId === LOCAL_EXECUTION_HOST_ID && folderWorkspace.connectionId) {
+      return toSshExecutionHostId(folderWorkspace.connectionId)
+    }
     if (explicitProjectGroupHostId) {
       return explicitProjectGroupHostId
     }
diff --git a/src/renderer/src/components/sidebar/worktree-list-host-filtering.test.ts b/src/renderer/src/components/sidebar/worktree-list-host-filtering.test.ts
index 01fc6269ecb..39f91eaa33a 100644
--- a/src/renderer/src/components/sidebar/worktree-list-host-filtering.test.ts
+++ b/src/renderer/src/components/sidebar/worktree-list-host-filtering.test.ts
@@ -4,6 +4,7 @@ import { addHostSectionRows } from './host-section-rows'
 import type { Row } from './worktree-list-groups'
 import {
   filterFolderWorkspacesForVisibleHosts,
+  filterProjectGroupsForVisibleHosts,
   getFolderPathStatusRouteOptionsForRows,
   getFolderWorkspaceExecutionHostIdForRows,
   getProjectGroupExecutionHostIdForRows,
@@ -78,6 +79,16 @@ describe('WorktreeList host filtering ownership', () => {
     ).toBe('runtime:env-1')
   })
 
+  it('uses legacy SSH folder ownership over a local-stamped group', () => {
+    expect(
+      getFolderWorkspaceExecutionHostIdForRows({
+        folderWorkspace: folderWorkspace({ connectionId: 'builder' }),
+        projectGroup: group({ connectionId: undefined, executionHostId: 'local' }),
+        defaultHostId: 'runtime:env-1'
+      })
+    ).toBe('ssh:builder')
+  })
+
   it('extracts runtime route ids for folder path status requests', () => {
     expect(getRuntimeEnvironmentIdForFolderPathStatusHost('runtime:env-1')).toBe('env-1')
     expect(getRuntimeEnvironmentIdForFolderPathStatusHost('ssh:ssh-builder')).toBeNull()
@@ -298,4 +309,30 @@ describe('runtime folder host section rows', () => {
       ['runtime:env-2', 1]
     ])
   })
+
+  it('retains a local-stamped group needed by a visible legacy SSH folder', () => {
+    const localGroup = group({
+      id: 'legacy-group',
+      connectionId: undefined,
+      executionHostId: 'local'
+    })
+    const legacyFolder = folderWorkspace({
+      projectGroupId: localGroup.id,
+      connectionId: 'builder'
+    })
+
+    expect(
+      filterProjectGroupsForVisibleHosts([localGroup], new Set(['ssh:builder']), 'local', [
+        legacyFolder
+      ])
+    ).toEqual([localGroup])
+  })
+
+  it('keeps groups when the caller cannot provide folder membership', () => {
+    const localGroup = group({ executionHostId: 'local' })
+
+    expect(
+      filterProjectGroupsForVisibleHosts([localGroup], new Set(['ssh:builder']), 'local')
+    ).toEqual([localGroup])
+  })
 })
diff --git a/src/renderer/src/components/sidebar/worktree-list-host-filtering.ts b/src/renderer/src/components/sidebar/worktree-list-host-filtering.ts
index ae7a46e0776..b348e9ab110 100644
--- a/src/renderer/src/components/sidebar/worktree-list-host-filtering.ts
+++ b/src/renderer/src/components/sidebar/worktree-list-host-filtering.ts
@@ -11,8 +11,10 @@ import type { FolderWorkspace, ProjectGroup } from '../../../../shared/types'
 import {
   buildProjectGroupSidebarIndex,
   findProjectGroupForFolderWorkspace,
+  findProjectGroupParentForSidebar,
   getFolderWorkspaceExecutionHostIdForRows,
-  getProjectGroupExecutionHostIdForRows
+  getProjectGroupExecutionHostIdForRows,
+  getProjectGroupSidebarIdentity
 } from './worktree-list-groups'
 
 export { getFolderWorkspaceExecutionHostIdForRows, getProjectGroupExecutionHostIdForRows }
@@ -33,13 +35,41 @@ export function getVisibleSidebarHostIdSet(
 export function filterProjectGroupsForVisibleHosts(
   projectGroups: readonly ProjectGroup[],
   visibleHostIdSet: ReadonlySet<ExecutionHostId> | null,
-  defaultHostId: ExecutionHostId
+  defaultHostId: ExecutionHostId,
+  folderWorkspaces?: readonly FolderWorkspace[]
 ): readonly ProjectGroup[] {
-  if (!visibleHostIdSet) {
+  if (!visibleHostIdSet || !folderWorkspaces) {
     return projectGroups
   }
-  return projectGroups.filter((group) =>
-    visibleHostIdSet.has(getProjectGroupExecutionHostIdForRows(group, defaultHostId))
+  const retainedFolderGroupIdentities = new Set<string>()
+  const projectGroupIndex = buildProjectGroupSidebarIndex(projectGroups)
+  for (const folderWorkspace of folderWorkspaces) {
+    let group = findProjectGroupForFolderWorkspace(projectGroupIndex, folderWorkspace)
+    if (
+      !group ||
+      !visibleHostIdSet.has(
+        getFolderWorkspaceExecutionHostIdForRows({
+          folderWorkspace,
+          projectGroup: group,
+          defaultHostId
+        })
+      )
+    ) {
+      continue
+    }
+    while (group) {
+      const identity = getProjectGroupSidebarIdentity(group)
+      if (retainedFolderGroupIdentities.has(identity)) {
+        break
+      }
+      retainedFolderGroupIdentities.add(identity)
+      group = findProjectGroupParentForSidebar(projectGroupIndex, group)
+    }
+  }
+  return projectGroups.filter(
+    (group) =>
+      visibleHostIdSet.has(getProjectGroupExecutionHostIdForRows(group, defaultHostId)) ||
+      retainedFolderGroupIdentities.has(getProjectGroupSidebarIdentity(group))
   )
 }
 
diff --git a/src/renderer/src/store/slices/repos-project-groups-delete.test.ts b/src/renderer/src/store/slices/repos-project-groups-delete.test.ts
index a2ee0669213..eb165ed33c3 100644
--- a/src/renderer/src/store/slices/repos-project-groups-delete.test.ts
+++ b/src/renderer/src/store/slices/repos-project-groups-delete.test.ts
@@ -112,6 +112,41 @@ describe('project group deletion store routing', () => {
     expect(setActiveWorktree).toHaveBeenCalledWith(null)
   })
 
+  it('clears an active legacy SSH folder removed with its local-stamped group', async () => {
+    const localStampedGroup = { ...projectGroup, executionHostId: 'local' as const }
+    const legacyFolder: FolderWorkspace = {
+      id: 'legacy-folder',
+      projectGroupId: localStampedGroup.id,
+      connectionId: 'builder',
+      name: 'Legacy SSH folder',
+      folderPath: '/remote/folder',
+      linkedTask: null,
+      comment: '',
+      isArchived: false,
+      isUnread: false,
+      isPinned: false,
+      sortOrder: 1,
+      lastActivityAt: 0,
+      createdAt: 1,
+      updatedAt: 1
+    }
+    projectGroupsDelete.mockResolvedValue(true)
+    const store = createTestStore()
+    const setActiveWorktree = vi.fn()
+    store.setState({
+      projectGroups: [localStampedGroup],
+      folderWorkspaces: [legacyFolder],
+      activeWorktreeId: 'folder:legacy-folder',
+      activeWorkspaceExecutionHostId: 'ssh:builder',
+      setActiveWorktree
+    })
+
+    await expect(store.getState().deleteProjectGroup(projectGroup.id)).resolves.toBe(true)
+
+    expect(store.getState().folderWorkspaces).toEqual([])
+    expect(setActiveWorktree).toHaveBeenCalledWith(null)
+  })
+
   it('uses the remote delete response shape before mutating local state', async () => {
     runtimeEnvironmentCall.mockResolvedValue({
       id: 'rpc-delete-group',
diff --git a/src/renderer/src/store/slices/repos.ts b/src/renderer/src/store/slices/repos.ts
index 7f3b2c6c5f9..9309e95092f 100644
--- a/src/renderer/src/store/slices/repos.ts
+++ b/src/renderer/src/store/slices/repos.ts
@@ -3176,14 +3176,18 @@ export const createRepoSlice: StateCreator<AppState, [], [], RepoSlice> = (set,
       }
       const activeWorkspaceScope = parseWorkspaceKey(stateBeforeDelete.activeWorktreeId ?? '')
       if (activeWorkspaceScope?.type === 'folder') {
-        const activeOwnerIdentity = stateBeforeDelete.activeWorkspaceExecutionHostId
-          ? getFolderWorkspaceIdentity(
-              activeWorkspaceScope.folderWorkspaceId,
-              stateBeforeDelete.activeWorkspaceExecutionHostId
+        const activeFolderWorkspace = findFolderWorkspaceOwner(
+          stateBeforeDelete,
+          activeWorkspaceScope.folderWorkspaceId,
+          stateBeforeDelete.activeWorkspaceExecutionHostId ?? undefined
+        )
+        const removedActiveOwner = activeFolderWorkspace
+          ? targets.folderWorkspaceIdentities.has(
+              getProjectGroupRemovalFolderWorkspaceIdentity(
+                removalGroupIndex,
+                activeFolderWorkspace
+              ) ?? ''
             )
-          : null
-        const removedActiveOwner = activeOwnerIdentity
-          ? targets.folderWorkspaceIdentities.has(activeOwnerIdentity)
           : removedFolderWorkspaceIds.has(activeWorkspaceScope.folderWorkspaceId) &&
             !get().folderWorkspaces.some(
               (workspace) => workspace.id === activeWorkspaceScope.folderWorkspaceId
diff --git a/src/shared/folder-workspaces.ts b/src/shared/folder-workspaces.ts
index 6b4c19e180a..486dc49b0e3 100644
--- a/src/shared/folder-workspaces.ts
+++ b/src/shared/folder-workspaces.ts
@@ -7,6 +7,7 @@ import {
 import {
   buildProjectGroupOwnerIndex,
   getFolderWorkspaceProjectGroupOwnerHostId,
+  getProjectGroupOwnerHostId,
   resolveFolderWorkspaceProjectGroup,
   resolveProjectGroupOwner,
   type ProjectGroupOwnerIndex
@@ -30,7 +31,7 @@ export function resolveFolderWorkspaceProjectGroupWithLegacySsh(
   const group = resolveProjectGroupOwner(index, workspace.projectGroupId)
   return group &&
     group.connectionId === undefined &&
-    !normalizeExecutionHostId(group.executionHostId)
+    getProjectGroupOwnerHostId(group) === LOCAL_EXECUTION_HOST_ID
     ? group
     : null
 }
diff --git a/src/shared/project-groups.test.ts b/src/shared/project-groups.test.ts
index 291ff4f0491..f7659f3a0ae 100644
--- a/src/shared/project-groups.test.ts
+++ b/src/shared/project-groups.test.ts
@@ -188,6 +188,28 @@ describe('project-groups', () => {
     ).toHaveLength(1)
   })
 
+  it('retains a legacy SSH folder under one local-stamped group', () => {
+    const localGroup = projectGroup({
+      id: 'local-stamped',
+      parentPath: '/local-stamped',
+      executionHostId: 'local'
+    })
+
+    const legacyFolder = {
+      id: 'legacy-folder',
+      projectGroupId: localGroup.id,
+      connectionId: 'builder'
+    }
+
+    expect(normalizeFolderWorkspaces([legacyFolder], [localGroup])).toHaveLength(1)
+    expect(
+      normalizeFolderWorkspaces(
+        [legacyFolder],
+        [localGroup, projectGroup({ id: localGroup.id, executionHostId: 'runtime:env-1' })]
+      )
+    ).toEqual([])
+  })
+
   it('does not reinterpret explicit local provenance as a unique SSH owner', () => {
     const ssh = projectGroup({ id: 'same-id', connectionId: 'builder' })
     const index = buildProjectGroupOwnerIndex([ssh])