From 2d4d4e4037f993966f2e6b8feb9b9deb8dba2b6a Mon Sep 17 00:00:00 2001
From: sharan-bruno <sharanabasappa@usebruno.com>
Date: Mon, 8 Jun 2026 16:57:18 +0530
Subject: [PATCH] =?UTF-8?q?fix(ui):=20correct=20=E2=80=9Cmodified=E2=80=9D?=
 =?UTF-8?q?=20indicator=20state=20across=20collection,=20folder,=20request?=
 =?UTF-8?q?,=20and=20presets/auth=20tabs=20(#3386)=20(#8027)?=
MIME-Version: 1.0
Content-Type: text/plain; charset=UTF-8
Content-Transfer-Encoding: 8bit

* fix: 3296 Folder-level No Auth inheritance is ignored; requests still use Collection Auth
---
 package-lock.json                             | 204 +++++++--------
 .../CollectionSettings/Auth/AuthMode/index.js |   4 +-
 .../CollectionSettings/Presets/index.js       |  26 +-
 .../components/CollectionSettings/index.js    |   3 +-
 .../components/FolderSettings/Auth/index.js   |  50 +---
 .../FolderSettings/AuthMode/index.js          |   5 +-
 .../src/components/FolderSettings/index.js    |  13 +-
 .../RequestPane/Auth/AuthMode/index.js        |   5 +-
 .../src/components/RequestPane/Auth/index.js  |  52 +---
 .../RequestPane/GraphQLRequestPane/index.js   |  17 +-
 .../GrpcRequestPane/GrpcAuth/index.js         |  55 +---
 .../RequestPane/GrpcRequestPane/index.js      |  13 +-
 .../RequestPane/HttpRequestPane/index.js      |  12 +-
 .../RequestPane/WSRequestPane/WSAuth/index.js |  55 ++--
 .../RequestPane/WSRequestPane/index.js        |  13 +-
 .../components/ResponsePane/Timeline/index.js |   7 +-
 .../src/components/StatusDot/index.js         |   3 +-
 packages/bruno-app/src/utils/auth/index.js    |  54 +++-
 .../bruno-app/src/utils/auth/index.spec.js    | 234 +++++++++++++++++-
 .../bruno-app/src/utils/common/constants.js   |  44 ++++
 .../opencollection/bruno-to-opencollection.ts |   7 +-
 .../opencollection/opencollection-to-bruno.ts |   7 +-
 .../src/opencollection/types.ts               |  10 +-
 .../bruno-electron/src/utils/collection.js    |   2 +-
 .../src/formats/yml/parseCollection.ts        |   7 +-
 .../src/formats/yml/parseFolder.ts            |  35 ++-
 .../tests/fixtures/presets/empty-request.yml  |   7 +
 .../yml/tests/fixtures/presets/no-presets.yml |   3 +
 .../tests/fixtures/presets/no-request-key.yml |   6 +
 .../fixtures/presets/type-only-realistic.yml  |  24 ++
 .../fixtures/presets/url-only-realistic.yml   |  25 ++
 .../fixtures/presets/with-type-and-url.yml    |   9 +
 .../formats/yml/tests/parseCollection.spec.js |  63 +++++
 packages/bruno-filestore/src/types.ts         |   7 +
 .../auth-mode/effective-auth-mode.spec.ts     | 113 +++++++++
 .../folder-no-auth-stops-inheritance.spec.ts  |  95 +++++++
 .../modified-indicator-for-auth.spec.ts       | 147 +++++++++++
 tests/collection/presets-indicator.spec.ts    |  70 ++++++
 tests/utils/constants/auth.ts                 |  13 +
 tests/utils/constants/index.ts                |   1 +
 tests/utils/page/locators.ts                  |  18 +-
 41 files changed, 1182 insertions(+), 356 deletions(-)
 create mode 100644 packages/bruno-filestore/src/formats/yml/tests/fixtures/presets/empty-request.yml
 create mode 100644 packages/bruno-filestore/src/formats/yml/tests/fixtures/presets/no-presets.yml
 create mode 100644 packages/bruno-filestore/src/formats/yml/tests/fixtures/presets/no-request-key.yml
 create mode 100644 packages/bruno-filestore/src/formats/yml/tests/fixtures/presets/type-only-realistic.yml
 create mode 100644 packages/bruno-filestore/src/formats/yml/tests/fixtures/presets/url-only-realistic.yml
 create mode 100644 packages/bruno-filestore/src/formats/yml/tests/fixtures/presets/with-type-and-url.yml
 create mode 100644 packages/bruno-filestore/src/formats/yml/tests/parseCollection.spec.js
 create mode 100644 tests/auth/auth-mode/effective-auth-mode.spec.ts
 create mode 100644 tests/auth/auth-mode/folder-no-auth-stops-inheritance.spec.ts
 create mode 100644 tests/auth/auth-mode/modified-indicator-for-auth.spec.ts
 create mode 100644 tests/collection/presets-indicator.spec.ts
 create mode 100644 tests/utils/constants/auth.ts
 create mode 100644 tests/utils/constants/index.ts

diff --git a/package-lock.json b/package-lock.json
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       "resolved": "https://registry.npmjs.org/@types/markdown-it/-/markdown-it-12.2.3.tgz",
       "integrity": "sha512-GKMHFfv3458yYy+v/N8gjufHO6MSZKCOXpZc5GXIWWy8uldwfmPn98vp81gZ5f9SVw8YYBctgfJ22a2d7AOMeQ==",
+      "dev": true,
       "license": "MIT",
       "dependencies": {
         "@types/linkify-it": "*",
@@ -13010,6 +13008,7 @@
       "version": "2.0.0",
       "resolved": "https://registry.npmjs.org/@types/mdurl/-/mdurl-2.0.0.tgz",
       "integrity": "sha512-RGdgjQUZba5p6QEFAVx2OGb8rQDL/cPRG7GiedRzMcJ1tYnUANBncjbSB1NRGwbvjcPeikRABz2nshyPk1bhWg==",
+      "dev": true,
       "license": "MIT"
     },
     "node_modules/@types/ms": {
@@ -14501,6 +14500,7 @@
       "version": "5.3.0",
       "resolved": "https://registry.npmjs.org/aria-query/-/aria-query-5.3.0.tgz",
       "integrity": "sha512-b0P0sZPKtyu8HkeRAfCq0IfURZK+SuwMjY1UXGBU27wpAiTwQAIlq56IbIO+ytk/JjS1fMR14ee5WBBfKi5J6A==",
+      "dev": true,
       "license": "Apache-2.0",
       "dependencies": {
         "dequal": "^2.0.3"
@@ -14926,7 +14926,7 @@
       "version": "0.4.12",
       "resolved": "https://registry.npmjs.org/babel-plugin-polyfill-corejs2/-/babel-plugin-polyfill-corejs2-0.4.12.tgz",
       "integrity": "sha512-CPWT6BwvhrTO2d8QVorhTCQw9Y43zOu7G9HigcfxvepOU6b8o3tcWad6oVgZIsZCTt42FFv97aA7ZJsbM4+8og==",
-      "devOptional": true,
+      "dev": true,
       "license": "MIT",
       "dependencies": {
         "@babel/compat-data": "^7.22.6",
@@ -14941,7 +14941,7 @@
       "version": "0.10.6",
       "resolved": "https://registry.npmjs.org/babel-plugin-polyfill-corejs3/-/babel-plugin-polyfill-corejs3-0.10.6.tgz",
       "integrity": "sha512-b37+KR2i/khY5sKmWNVQAnitvquQbNdWy6lJdsr0kmquCKEEUgMKK4SboVM3HtfnZilfjr4MMQ7vY58FVWDtIA==",
-      "devOptional": true,
+      "dev": true,
       "license": "MIT",
       "dependencies": {
         "@babel/helper-define-polyfill-provider": "^0.6.2",
@@ -14955,7 +14955,7 @@
       "version": "0.6.3",
       "resolved": "https://registry.npmjs.org/babel-plugin-polyfill-regenerator/-/babel-plugin-polyfill-regenerator-0.6.3.tgz",
       "integrity": "sha512-LiWSbl4CRSIa5x/JAU6jZiG9eit9w6mz+yVMFwDE83LAWvt0AfGBoZ7HS/mkhrKuh2ZlzfVZYKoLjXdqw6Yt7Q==",
-      "devOptional": true,
+      "dev": true,
       "license": "MIT",
       "dependencies": {
         "@babel/helper-define-polyfill-provider": "^0.6.3"
@@ -16812,7 +16812,7 @@
       "version": "3.39.0",
       "resolved": "https://registry.npmjs.org/core-js-compat/-/core-js-compat-3.39.0.tgz",
       "integrity": "sha512-VgEUx3VwlExr5no0tXlBt+silBvhTryPwCXRI2Id1PN8WTKu7MreethvddqOubrYxkFdv/RnYrqlv1sFNAUelw==",
-      "devOptional": true,
+      "dev": true,
       "license": "MIT",
       "dependencies": {
         "browserslist": "^4.24.2"
@@ -18042,6 +18042,7 @@
       "version": "0.5.16",
       "resolved": "https://registry.npmjs.org/dom-accessibility-api/-/dom-accessibility-api-0.5.16.tgz",
       "integrity": "sha512-X7BJ2yElsnOJ30pZF4uIIDfBEVgF4XEBxL9Bxhy6dnrm5hkzqmsWHGTiHqRiITNhMyFLyAiWndIJP7Z1NTteDg==",
+      "dev": true,
       "license": "MIT"
     },
     "node_modules/dom-converter": {
@@ -21615,7 +21616,7 @@
       "version": "2.16.1",
       "resolved": "https://registry.npmjs.org/is-core-module/-/is-core-module-2.16.1.tgz",
       "integrity": "sha512-UfoeMA6fIJ8wTYFEUjelnaGI67v6+N7qXJEvQuIGa99l4xsCruSYOVSQ0uPANn4dAzm8lkYPaKLrrijLq7x23w==",
-      "devOptional": true,
+      "dev": true,
       "license": "MIT",
       "dependencies": {
         "hasown": "^2.0.2"
@@ -24030,6 +24031,7 @@
       "version": "1.5.0",
       "resolved": "https://registry.npmjs.org/lz-string/-/lz-string-1.5.0.tgz",
       "integrity": "sha512-h5bgJWpxJNswbU7qCrV0tIKQCaS3blPDrqKWx+QxzuzL1zGUzij9XCWLrSLsJPu5t+eWA/ycetzYAO5IOMcWAQ==",
+      "dev": true,
       "license": "MIT",
       "bin": {
         "lz-string": "bin/bin.js"
@@ -25654,7 +25656,7 @@
       "version": "1.0.7",
       "resolved": "https://registry.npmjs.org/path-parse/-/path-parse-1.0.7.tgz",
       "integrity": "sha512-LDJzPVEEEPR+y48z93A0Ed0yXb8pAByGWo/k5YYdYgpY2/2EsOsksJrq7lOHxryrVOn1ejG6oAp8ahvOIQD8sw==",
-      "devOptional": true,
+      "dev": true,
       "license": "MIT"
     },
     "node_modules/path-scurry": {
@@ -28047,14 +28049,14 @@
       "version": "1.4.2",
       "resolved": "https://registry.npmjs.org/regenerate/-/regenerate-1.4.2.tgz",
       "integrity": "sha512-zrceR/XhGYU/d/opr2EKO7aRHUeiBI8qjtfHqADTwZd6Szfy16la6kqD0MIUs5z5hx6AaKa+PixpPrR289+I0A==",
-      "devOptional": true,
+      "dev": true,
       "license": "MIT"
     },
     "node_modules/regenerate-unicode-properties": {
       "version": "10.2.0",
       "resolved": "https://registry.npmjs.org/regenerate-unicode-properties/-/regenerate-unicode-properties-10.2.0.tgz",
       "integrity": "sha512-DqHn3DwbmmPVzeKj9woBadqmXxLvQoQIwu7nopMc72ztvxVmVk2SBhSnx67zuye5TP+lJsb/TBQsjLKhnDf3MA==",
-      "devOptional": true,
+      "dev": true,
       "license": "MIT",
       "dependencies": {
         "regenerate": "^1.4.2"
@@ -28067,7 +28069,7 @@
       "version": "0.15.2",
       "resolved": "https://registry.npmjs.org/regenerator-transform/-/regenerator-transform-0.15.2.tgz",
       "integrity": "sha512-hfMp2BoF0qOk3uc5V20ALGDS2ddjQaLrdl7xrGXvAIow7qeWRM2VA2HuCHkUKk9slq3VwEwLNK3DFBqDfPGYtg==",
-      "devOptional": true,
+      "dev": true,
       "license": "MIT",
       "dependencies": {
         "@babel/runtime": "^7.8.4"
@@ -28077,7 +28079,7 @@
       "version": "6.2.0",
       "resolved": "https://registry.npmjs.org/regexpu-core/-/regexpu-core-6.2.0.tgz",
       "integrity": "sha512-H66BPQMrv+V16t8xtmq+UC0CBpiTBA60V8ibS1QVReIp8T1z8hwFxqcGzm9K6lgsN7sB5edVH8a+ze6Fqm4weA==",
-      "devOptional": true,
+      "dev": true,
       "license": "MIT",
       "dependencies": {
         "regenerate": "^1.4.2",
@@ -28095,14 +28097,14 @@
       "version": "0.8.0",
       "resolved": "https://registry.npmjs.org/regjsgen/-/regjsgen-0.8.0.tgz",
       "integrity": "sha512-RvwtGe3d7LvWiDQXeQw8p5asZUmfU1G/l6WbUXeHta7Y2PEIvBTwH6E2EfmYUK8pxcxEdEmaomqyp0vZZ7C+3Q==",
-      "devOptional": true,
+      "dev": true,
       "license": "MIT"
     },
     "node_modules/regjsparser": {
       "version": "0.12.0",
       "resolved": "https://registry.npmjs.org/regjsparser/-/regjsparser-0.12.0.tgz",
       "integrity": "sha512-cnE+y8bz4NhMjISKbgeVJtqNbtf5QpjZP+Bslo+UqkIt9QPnX9q095eiRRASJG1/tz6dlNr6Z5NsBiWYokp6EQ==",
-      "devOptional": true,
+      "dev": true,
       "license": "BSD-2-Clause",
       "dependencies": {
         "jsesc": "~3.0.2"
@@ -28115,7 +28117,7 @@
       "version": "3.0.2",
       "resolved": "https://registry.npmjs.org/jsesc/-/jsesc-3.0.2.tgz",
       "integrity": "sha512-xKqzzWXDttJuOcawBt4KnKHHIf5oQ/Cxax+0PWFG+DFDgHNAdi+TXECADI+RYiFUMmx8792xsMbbgXj4CwnP4g==",
-      "devOptional": true,
+      "dev": true,
       "license": "MIT",
       "bin": {
         "jsesc": "bin/jsesc"
@@ -28307,7 +28309,7 @@
       "version": "1.22.10",
       "resolved": "https://registry.npmjs.org/resolve/-/resolve-1.22.10.tgz",
       "integrity": "sha512-NPRy+/ncIMeDlTAsuqwKIiferiawhefFJtkNSW0qZJEqMEb+qBt/77B/jGeeek+F0uOeN05CDa6HXbbIgtVX4w==",
-      "devOptional": true,
+      "dev": true,
       "license": "MIT",
       "dependencies": {
         "is-core-module": "^2.16.0",
@@ -30565,7 +30567,7 @@
       "version": "1.0.0",
       "resolved": "https://registry.npmjs.org/supports-preserve-symlinks-flag/-/supports-preserve-symlinks-flag-1.0.0.tgz",
       "integrity": "sha512-ot0WnXS9fgdkgIcePe6RHNk1WA8+muPa6cSjeR3V8K27q9BB1rTE3R1p7Hv0z1ZyAc8s6Vvv8DIyWf681MAt0w==",
-      "devOptional": true,
+      "dev": true,
       "license": "MIT",
       "engines": {
         "node": ">= 0.4"
@@ -31759,7 +31761,7 @@
       "version": "4.9.5",
       "resolved": "https://registry.npmjs.org/typescript/-/typescript-4.9.5.tgz",
       "integrity": "sha512-1FXk9E2Hm+QzZQ7z+McJiHL4NW1F2EzMu9Nq9i3zAaGqibafqYwCVU6WyWAuyQRRzOlxou8xZSyXLEN8oKj24g==",
-      "devOptional": true,
+      "dev": true,
       "license": "Apache-2.0",
       "bin": {
         "tsc": "bin/tsc",
@@ -31820,7 +31822,7 @@
       "version": "2.0.1",
       "resolved": "https://registry.npmjs.org/unicode-canonical-property-names-ecmascript/-/unicode-canonical-property-names-ecmascript-2.0.1.tgz",
       "integrity": "sha512-dA8WbNeb2a6oQzAQ55YlT5vQAWGV9WXOsi3SskE3bcCdM0P4SDd+24zS/OCacdRq5BkdsRj9q3Pg6YyQoxIGqg==",
-      "devOptional": true,
+      "dev": true,
       "license": "MIT",
       "engines": {
         "node": ">=4"
@@ -31830,7 +31832,7 @@
       "version": "2.0.0",
       "resolved": "https://registry.npmjs.org/unicode-match-property-ecmascript/-/unicode-match-property-ecmascript-2.0.0.tgz",
       "integrity": "sha512-5kaZCrbp5mmbz5ulBkDkbY0SsPOjKqVS35VpL9ulMPfSl0J0Xsm+9Evphv9CoIZFwre7aJoa94AY6seMKGVN5Q==",
-      "devOptional": true,
+      "dev": true,
       "license": "MIT",
       "dependencies": {
         "unicode-canonical-property-names-ecmascript": "^2.0.0",
@@ -31844,7 +31846,7 @@
       "version": "2.2.0",
       "resolved": "https://registry.npmjs.org/unicode-match-property-value-ecmascript/-/unicode-match-property-value-ecmascript-2.2.0.tgz",
       "integrity": "sha512-4IehN3V/+kkr5YeSSDDQG8QLqO26XpL2XP3GQtqwlT/QYSECAwFztxVHjlbh0+gjJ3XmNLS0zDsbgs9jWKExLg==",
-      "devOptional": true,
+      "dev": true,
       "license": "MIT",
       "engines": {
         "node": ">=4"
@@ -31854,7 +31856,7 @@
       "version": "2.1.0",
       "resolved": "https://registry.npmjs.org/unicode-property-aliases-ecmascript/-/unicode-property-aliases-ecmascript-2.1.0.tgz",
       "integrity": "sha512-6t3foTQI9qne+OZoVQB/8x8rk2k1eVy1gRXhV3oFQ5T6R1dqQ1xtin3XqSlx3+ATBkliTaR/hHyJBm+LVPNM8w==",
-      "devOptional": true,
+      "dev": true,
       "license": "MIT",
       "engines": {
         "node": ">=4"
diff --git a/packages/bruno-app/src/components/CollectionSettings/Auth/AuthMode/index.js b/packages/bruno-app/src/components/CollectionSettings/Auth/AuthMode/index.js
index 0770ac0ea..7ea441b69 100644
--- a/packages/bruno-app/src/components/CollectionSettings/Auth/AuthMode/index.js
+++ b/packages/bruno-app/src/components/CollectionSettings/Auth/AuthMode/index.js
@@ -75,13 +75,13 @@ const AuthMode = ({ collection }) => {
 
   return (
     <StyledWrapper>
-      <div className="inline-flex items-center cursor-pointer auth-mode-selector">
+      <div className="inline-flex items-center cursor-pointer auth-mode-selector" data-testid="auth-mode-selector">
         <MenuDropdown
           items={menuItems}
           placement="bottom-end"
           selectedItemId={authMode}
         >
-          <div className="flex items-center justify-center auth-mode-label select-none">
+          <div className="flex items-center justify-center auth-mode-label select-none" data-testid="auth-mode-label">
             {humanizeRequestAuthMode(authMode)} <IconCaretDown className="caret ml-1" size={14} strokeWidth={2} />
           </div>
         </MenuDropdown>
diff --git a/packages/bruno-app/src/components/CollectionSettings/Presets/index.js b/packages/bruno-app/src/components/CollectionSettings/Presets/index.js
index 4bcd7bf7e..01a86f4fc 100644
--- a/packages/bruno-app/src/components/CollectionSettings/Presets/index.js
+++ b/packages/bruno-app/src/components/CollectionSettings/Presets/index.js
@@ -5,10 +5,11 @@ import { updateCollectionPresets } from 'providers/ReduxStore/slices/collections
 import { saveCollectionSettings } from 'providers/ReduxStore/slices/collections/actions';
 import { get } from 'lodash';
 import Button from 'ui/Button';
+import { DEFAULT_PRESET_REQUEST_TYPE, PRESET_REQUEST_TYPES } from 'utils/common/constants';
 
 const PresetsSettings = ({ collection }) => {
   const dispatch = useDispatch();
-  const initialPresets = { requestType: 'http', requestUrl: '' };
+  const initialPresets = { requestType: DEFAULT_PRESET_REQUEST_TYPE, requestUrl: '' };
 
   // Get presets from draft.brunoConfig if it exists, otherwise from brunoConfig
   const currentPresets = collection.draft?.brunoConfig
@@ -47,12 +48,13 @@ const PresetsSettings = ({ collection }) => {
           <div className="flex items-center">
             <input
               id="http"
+              data-testid="presets-request-type-http"
               className="cursor-pointer"
               type="radio"
               name="requestType"
               onChange={handleRequestTypeChange}
-              value="http"
-              checked={(currentPresets.requestType || 'http') === 'http'}
+              value={PRESET_REQUEST_TYPES.HTTP}
+              checked={(currentPresets.requestType || DEFAULT_PRESET_REQUEST_TYPE) === PRESET_REQUEST_TYPES.HTTP}
             />
             <label htmlFor="http" className="ml-1 cursor-pointer select-none">
               HTTP
@@ -60,12 +62,13 @@ const PresetsSettings = ({ collection }) => {
 
             <input
               id="graphql"
+              data-testid="presets-request-type-graphql"
               className="ml-4 cursor-pointer"
               type="radio"
               name="requestType"
               onChange={handleRequestTypeChange}
-              value="graphql"
-              checked={(currentPresets.requestType || 'http') === 'graphql'}
+              value={PRESET_REQUEST_TYPES.GRAPHQL}
+              checked={(currentPresets.requestType || DEFAULT_PRESET_REQUEST_TYPE) === PRESET_REQUEST_TYPES.GRAPHQL}
             />
             <label htmlFor="graphql" className="ml-1 cursor-pointer select-none">
               GraphQL
@@ -73,12 +76,13 @@ const PresetsSettings = ({ collection }) => {
 
             <input
               id="grpc"
+              data-testid="presets-request-type-grpc"
               className="ml-4 cursor-pointer"
               type="radio"
               name="requestType"
               onChange={handleRequestTypeChange}
-              value="grpc"
-              checked={(currentPresets.requestType || 'http') === 'grpc'}
+              value={PRESET_REQUEST_TYPES.GRPC}
+              checked={(currentPresets.requestType || DEFAULT_PRESET_REQUEST_TYPE) === PRESET_REQUEST_TYPES.GRPC}
             />
             <label htmlFor="grpc" className="ml-1 cursor-pointer select-none">
               gRPC
@@ -86,12 +90,13 @@ const PresetsSettings = ({ collection }) => {
 
             <input
               id="ws"
+              data-testid="presets-request-type-ws"
               className="ml-4 cursor-pointer"
               type="radio"
               name="requestType"
               onChange={handleRequestTypeChange}
-              value="ws"
-              checked={(currentPresets.requestType || 'http') === 'ws'}
+              value={PRESET_REQUEST_TYPES.WS}
+              checked={(currentPresets.requestType || DEFAULT_PRESET_REQUEST_TYPE) === PRESET_REQUEST_TYPES.WS}
             />
             <label htmlFor="ws" className="ml-1 cursor-pointer select-none">
               WebSocket
@@ -106,6 +111,7 @@ const PresetsSettings = ({ collection }) => {
             <div className="flex items-center flex-grow input-container h-full">
               <input
                 id="request-url"
+                data-testid="presets-request-url"
                 type="text"
                 name="requestUrl"
                 placeholder="Request URL"
@@ -123,7 +129,7 @@ const PresetsSettings = ({ collection }) => {
         </div>
 
         <div className="mt-6">
-          <Button type="button" size="sm" onClick={handleSave}>
+          <Button type="button" size="sm" data-testid="presets-save-btn" onClick={handleSave}>
             Save
           </Button>
         </div>
diff --git a/packages/bruno-app/src/components/CollectionSettings/index.js b/packages/bruno-app/src/components/CollectionSettings/index.js
index d2bb6dd8f..95adf02cc 100644
--- a/packages/bruno-app/src/components/CollectionSettings/index.js
+++ b/packages/bruno-app/src/components/CollectionSettings/index.js
@@ -15,6 +15,7 @@ import StyledWrapper from './StyledWrapper';
 import Vars from './Vars/index';
 import StatusDot from 'components/StatusDot';
 import Overview from './Overview/index';
+import { DEFAULT_PRESET_REQUEST_TYPE } from 'utils/common/constants';
 
 const CollectionSettings = ({ collection }) => {
   const dispatch = useDispatch();
@@ -60,7 +61,7 @@ const CollectionSettings = ({ collection }) => {
     ? get(collection, 'draft.brunoConfig.protobuf', {})
     : get(collection, 'brunoConfig.protobuf', {});
   const presets = collection.draft?.brunoConfig ? get(collection, 'draft.brunoConfig.presets', {}) : get(collection, 'brunoConfig.presets', {});
-  const hasPresets = presets && presets.requestUrl !== '';
+  const hasPresets = presets && ((presets.requestType && presets.requestType !== DEFAULT_PRESET_REQUEST_TYPE) || (presets.requestUrl && presets.requestUrl !== ''));
 
   const getTabPanel = (tab) => {
     switch (tab) {
diff --git a/packages/bruno-app/src/components/FolderSettings/Auth/index.js b/packages/bruno-app/src/components/FolderSettings/Auth/index.js
index 14c5d2563..35687bf93 100644
--- a/packages/bruno-app/src/components/FolderSettings/Auth/index.js
+++ b/packages/bruno-app/src/components/FolderSettings/Auth/index.js
@@ -1,4 +1,4 @@
-import React from 'react';
+import React, { useMemo } from 'react';
 import get from 'lodash/get';
 import StyledWrapper from './StyledWrapper';
 import { saveFolderRoot } from 'providers/ReduxStore/slices/collections/actions';
@@ -18,8 +18,9 @@ import OAuth1 from 'components/RequestPane/Auth/OAuth1';
 import WsseAuth from 'components/RequestPane/Auth/WsseAuth';
 import ApiKeyAuth from 'components/RequestPane/Auth/ApiKeyAuth';
 import AwsV4Auth from 'components/RequestPane/Auth/AwsV4Auth';
-import { humanizeRequestAuthMode, getTreePathFromCollectionToItem } from 'utils/collections/index';
+import { humanizeRequestAuthMode } from 'utils/collections/index';
 import Button from 'ui/Button';
+import { getEffectiveAuthSource } from 'utils/auth';
 
 const GrantTypeComponentMap = ({ collection, folder, updateFolderAuth }) => {
   const dispatch = useDispatch();
@@ -52,41 +53,6 @@ const Auth = ({ collection, folder }) => {
   let request = get(folderRoot, 'request', {});
   const authMode = get(folderRoot, 'request.auth.mode');
 
-  const getEffectiveAuthSource = () => {
-    if (authMode !== 'inherit') return null;
-
-    const collectionRoot = collection?.draft?.root || collection?.root || {};
-    const collectionAuth = get(collectionRoot, 'request.auth');
-    let effectiveSource = {
-      type: 'collection',
-      name: 'Collection',
-      auth: collectionAuth
-    };
-
-    // Get path from collection to current folder
-    const folderTreePath = getTreePathFromCollectionToItem(collection, folder);
-
-    // Check parent folders to find closest auth configuration
-    // Skip the last item which is the current folder
-    for (let i = 0; i < folderTreePath.length - 1; i++) {
-      const parentFolder = folderTreePath[i];
-      if (parentFolder.type === 'folder') {
-        const parentFolderRoot = parentFolder?.draft || parentFolder?.root;
-        const folderAuth = get(parentFolderRoot, 'request.auth');
-        if (folderAuth && folderAuth.mode && folderAuth.mode !== 'inherit') {
-          effectiveSource = {
-            type: 'folder',
-            name: parentFolder.name,
-            auth: folderAuth
-          };
-          break;
-        }
-      }
-    }
-
-    return effectiveSource;
-  };
-
   const handleSave = () => {
     dispatch(saveFolderRoot(collection.uid, folder.uid));
   };
@@ -98,6 +64,11 @@ const Auth = ({ collection, folder }) => {
     });
   };
 
+  const inheritedSource = useMemo(
+    () => (authMode === 'inherit' ? getEffectiveAuthSource(collection, folder) : null),
+    [authMode, folder, collection]
+  );
+
   const getAuthView = () => {
     switch (authMode) {
       case 'basic': {
@@ -202,12 +173,11 @@ const Auth = ({ collection, folder }) => {
         );
       }
       case 'inherit': {
-        const source = getEffectiveAuthSource();
         return (
           <>
             <div className="flex flex-row w-full mt-2 gap-2">
-              <div>Auth inherited from {source.name}: </div>
-              <div className="inherit-mode-text">{humanizeRequestAuthMode(source.auth?.mode)}</div>
+              <div>Auth inherited from {inheritedSource.name}: </div>
+              <div className="inherit-mode-text" data-testid="inherited-auth-mode">{humanizeRequestAuthMode(inheritedSource.auth?.mode)}</div>
             </div>
           </>
         );
diff --git a/packages/bruno-app/src/components/FolderSettings/AuthMode/index.js b/packages/bruno-app/src/components/FolderSettings/AuthMode/index.js
index a5007240f..29044861a 100644
--- a/packages/bruno-app/src/components/FolderSettings/AuthMode/index.js
+++ b/packages/bruno-app/src/components/FolderSettings/AuthMode/index.js
@@ -81,14 +81,15 @@ const AuthMode = ({ collection, folder }) => {
 
   return (
     <StyledWrapper>
-      <div className="inline-flex items-center cursor-pointer auth-mode-selector">
+      <div className="inline-flex items-center cursor-pointer auth-mode-selector" data-testid="auth-mode-selector">
         <MenuDropdown
           items={menuItems}
           placement="bottom-end"
           selectedItemId={authMode}
           showTickMark={true}
+          data-testid="auth-mode-dropdown"
         >
-          <div className="flex items-center justify-center auth-mode-label select-none">
+          <div className="flex items-center justify-center auth-mode-label select-none" data-testid="auth-mode-label">
             {humanizeRequestAuthMode(authMode)} <IconCaretDown className="caret ml-1 mr-1" size={14} strokeWidth={2} />
           </div>
         </MenuDropdown>
diff --git a/packages/bruno-app/src/components/FolderSettings/index.js b/packages/bruno-app/src/components/FolderSettings/index.js
index d87deb471..23763d27e 100644
--- a/packages/bruno-app/src/components/FolderSettings/index.js
+++ b/packages/bruno-app/src/components/FolderSettings/index.js
@@ -1,4 +1,4 @@
-import React from 'react';
+import React, { useMemo } from 'react';
 import classnames from 'classnames';
 import { updatedFolderSettingsSelectedTab } from 'providers/ReduxStore/slices/collections';
 import { useDispatch } from 'react-redux';
@@ -10,7 +10,7 @@ import Vars from './Vars';
 import Documentation from './Documentation';
 import Auth from './Auth';
 import StatusDot from 'components/StatusDot';
-import get from 'lodash/get';
+import { hasEffectiveAuth } from 'utils/auth';
 
 const FolderSettings = ({ collection, folder }) => {
   const dispatch = useDispatch();
@@ -31,8 +31,11 @@ const FolderSettings = ({ collection, folder }) => {
   const responseVars = folderRoot?.request?.vars?.res || [];
   const activeVarsCount = requestVars.filter((v) => v.enabled).length + responseVars.filter((v) => v.enabled).length;
 
-  const auth = get(folderRoot, 'request.auth.mode');
-  const hasAuth = auth && auth !== 'none';
+  const folderAuthMode = folder?.draft?.request?.auth?.mode ?? folder?.root?.request?.auth?.mode;
+  const hasAuth = useMemo(
+    () => hasEffectiveAuth(collection, folder),
+    [folder, folderAuthMode, collection]
+  );
 
   const setTab = (tab) => {
     dispatch(
@@ -95,7 +98,7 @@ const FolderSettings = ({ collection, folder }) => {
           </div>
           <div className={getTabClassname('auth')} role="tab" data-testid="folder-settings-tab-auth" onClick={() => setTab('auth')}>
             Auth
-            {hasAuth && <StatusDot />}
+            {hasAuth && <StatusDot dataTestId="auth" />}
           </div>
           <div className={getTabClassname('docs')} role="tab" data-testid="folder-settings-tab-docs" onClick={() => setTab('docs')}>
             Docs
diff --git a/packages/bruno-app/src/components/RequestPane/Auth/AuthMode/index.js b/packages/bruno-app/src/components/RequestPane/Auth/AuthMode/index.js
index 4897d0e9c..18653336b 100644
--- a/packages/bruno-app/src/components/RequestPane/Auth/AuthMode/index.js
+++ b/packages/bruno-app/src/components/RequestPane/Auth/AuthMode/index.js
@@ -81,14 +81,15 @@ const AuthMode = ({ item, collection }) => {
 
   return (
     <StyledWrapper>
-      <div className="inline-flex items-center cursor-pointer auth-mode-selector">
+      <div className="inline-flex items-center cursor-pointer auth-mode-selector" data-testid="auth-mode-selector">
         <MenuDropdown
           items={menuItems}
           placement="bottom-end"
           selectedItemId={authMode}
           showTickMark={true}
+          data-testid="auth-mode-dropdown"
         >
-          <div className="flex items-center justify-center auth-mode-label select-none">
+          <div className="flex items-center justify-center auth-mode-label select-none" data-testid="auth-mode-label">
             {humanizeRequestAuthMode(authMode)} <IconCaretDown className="caret ml-1" size={14} strokeWidth={2} />
           </div>
         </MenuDropdown>
diff --git a/packages/bruno-app/src/components/RequestPane/Auth/index.js b/packages/bruno-app/src/components/RequestPane/Auth/index.js
index 4a6926d75..491934bbb 100644
--- a/packages/bruno-app/src/components/RequestPane/Auth/index.js
+++ b/packages/bruno-app/src/components/RequestPane/Auth/index.js
@@ -1,4 +1,4 @@
-import React from 'react';
+import React, { useMemo } from 'react';
 import get from 'lodash/get';
 import AwsV4Auth from './AwsV4Auth';
 import BearerAuth from './BearerAuth';
@@ -15,22 +15,11 @@ import ApiKeyAuth from './ApiKeyAuth';
 import StyledWrapper from './StyledWrapper';
 import { humanizeRequestAuthMode } from 'utils/collections';
 import OAuth2 from './OAuth2/index';
-import { findItemInCollection, findParentItemInCollection } from 'utils/collections/index';
-
-const getTreePathFromCollectionToItem = (collection, _item) => {
-  let path = [];
-  let item = findItemInCollection(collection, _item?.uid);
-  while (item) {
-    path.unshift(item);
-    item = findParentItemInCollection(collection, item?.uid);
-  }
-  return path;
-};
+import { getEffectiveAuthSource } from 'utils/auth';
 
 const Auth = ({ item, collection }) => {
   const dispatch = useDispatch();
   const authMode = item.draft ? get(item, 'draft.request.auth.mode') : get(item, 'request.auth.mode');
-  const requestTreePath = getTreePathFromCollectionToItem(collection, item);
 
   // Create a request object to pass to the auth components
   const request = item.draft
@@ -42,34 +31,10 @@ const Auth = ({ item, collection }) => {
     return dispatch(saveRequest(item.uid, collection.uid));
   };
 
-  const getEffectiveAuthSource = () => {
-    if (authMode !== 'inherit') return null;
-
-    const collectionRoot = collection?.draft?.root || collection?.root || {};
-    const collectionAuth = get(collectionRoot, 'request.auth');
-    let effectiveSource = {
-      type: 'collection',
-      name: 'Collection',
-      auth: collectionAuth
-    };
-
-    // Check folders in reverse to find the closest auth configuration
-    for (let i of [...requestTreePath].reverse()) {
-      if (i.type === 'folder') {
-        const folderAuth = get(i, 'root.request.auth');
-        if (folderAuth && folderAuth.mode && folderAuth.mode !== 'inherit') {
-          effectiveSource = {
-            type: 'folder',
-            name: i.name,
-            auth: folderAuth
-          };
-          break;
-        }
-      }
-    }
-
-    return effectiveSource;
-  };
+  const inheritedSource = useMemo(
+    () => (authMode === 'inherit' ? getEffectiveAuthSource(collection, item) : null),
+    [authMode, item, collection]
+  );
 
   const getAuthView = () => {
     switch (authMode) {
@@ -104,12 +69,11 @@ const Auth = ({ item, collection }) => {
         return <ApiKeyAuth collection={collection} item={item} request={request} save={save} updateAuth={updateAuth} />;
       }
       case 'inherit': {
-        const source = getEffectiveAuthSource();
         return (
           <>
             <div className="flex flex-row w-full gap-2">
-              <div>Auth inherited from {source.name}: </div>
-              <div className="inherit-mode-text">{humanizeRequestAuthMode(source.auth?.mode)}</div>
+              <div>Auth inherited from {inheritedSource.name}: </div>
+              <div className="inherit-mode-text" data-testid="inherited-auth-mode">{humanizeRequestAuthMode(inheritedSource.auth?.mode)}</div>
             </div>
           </>
         );
diff --git a/packages/bruno-app/src/components/RequestPane/GraphQLRequestPane/index.js b/packages/bruno-app/src/components/RequestPane/GraphQLRequestPane/index.js
index a6f15723f..7255731b1 100644
--- a/packages/bruno-app/src/components/RequestPane/GraphQLRequestPane/index.js
+++ b/packages/bruno-app/src/components/RequestPane/GraphQLRequestPane/index.js
@@ -24,10 +24,12 @@ import { sendRequest, saveRequest } from 'providers/ReduxStore/slices/collection
 import Documentation from 'components/Documentation/index';
 import useGraphqlSchema from '../GraphQLSchemaActions/useGraphqlSchema';
 import { findEnvironmentInCollection } from 'utils/collections';
+import { hasEffectiveAuth } from 'utils/auth';
 import HeightBoundContainer from 'ui/HeightBoundContainer';
 import Settings from 'components/RequestPane/Settings';
 import ResponsiveTabs from 'ui/ResponsiveTabs';
 import AuthMode from '../Auth/AuthMode/index';
+import StatusDot from 'components/StatusDot';
 
 const TAB_CONFIG = [
   { key: 'query', label: 'Query' },
@@ -172,7 +174,20 @@ const GraphQLRequestPane = ({ item, collection, onSchemaLoad, toggleDocs, handle
     [dispatch, item.uid]
   );
 
-  const allTabs = useMemo(() => TAB_CONFIG.map(({ key, label }) => ({ key, label })), []);
+  const itemAuthMode = item.draft?.request?.auth?.mode ?? item.request?.auth?.mode ?? item.root?.request?.auth?.mode;
+  const hasAuth = useMemo(
+    () => hasEffectiveAuth(collection, item),
+    [item, itemAuthMode, collection]
+  );
+
+  const allTabs = useMemo(
+    () => TAB_CONFIG.map(({ key, label }) => ({
+      key,
+      label,
+      indicator: key === 'auth' && hasAuth ? <StatusDot dataTestId="auth" /> : null
+    })),
+    [hasAuth]
+  );
 
   const handlePrettify = useCallback(() => {
     if (queryEditorRef.current?.beautifyRequestBody) {
diff --git a/packages/bruno-app/src/components/RequestPane/GrpcRequestPane/GrpcAuth/index.js b/packages/bruno-app/src/components/RequestPane/GrpcRequestPane/GrpcAuth/index.js
index 7ae205c52..900bd78ce 100644
--- a/packages/bruno-app/src/components/RequestPane/GrpcRequestPane/GrpcAuth/index.js
+++ b/packages/bruno-app/src/components/RequestPane/GrpcRequestPane/GrpcAuth/index.js
@@ -1,4 +1,4 @@
-import React, { useEffect } from 'react';
+import React, { useEffect, useMemo } from 'react';
 import get from 'lodash/get';
 import { useDispatch } from 'react-redux';
 import GrpcAuthMode from './GrpcAuthMode';
@@ -9,32 +9,32 @@ import OAuth2 from '../../Auth/OAuth2/index';
 import WsseAuth from '../../Auth/WsseAuth';
 import StyledWrapper from './StyledWrapper';
 import { humanizeRequestAuthMode } from 'utils/collections';
-import { getTreePathFromCollectionToItem } from 'utils/collections/index';
+import { getEffectiveAuthSource } from 'utils/auth';
 import { updateRequestAuthMode, updateAuth } from 'providers/ReduxStore/slices/collections';
 import { saveRequest } from 'providers/ReduxStore/slices/collections/actions';
 
-// List of auth modes supported by gRPC
-// Note: Only header-based auth modes work with gRPC
-// Complex auth modes like AWS Sig v4, Digest, and NTLM require axios interceptors
-// and cannot be supported in gRPC requests as of now
-const supportedGrpcAuthModes = ['basic', 'bearer', 'apikey', 'oauth2', 'wsse', 'none', 'inherit'];
+import { AUTH_MODES_GRPC } from 'utils/common/constants';
 
 const GrpcAuth = ({ item, collection }) => {
   const dispatch = useDispatch();
   const authMode = item.draft ? get(item, 'draft.request.auth.mode') : get(item, 'request.auth.mode');
-  const requestTreePath = getTreePathFromCollectionToItem(collection, item);
 
   const request = item.draft
     ? get(item, 'draft.request', {})
     : get(item, 'request', {});
 
+  const inheritedSource = useMemo(
+    () => (authMode === 'inherit' ? getEffectiveAuthSource(collection, item) : null),
+    [authMode, item, collection]
+  );
+
   const save = () => {
     return saveRequest(item.uid, collection.uid);
   };
 
   // Reset to 'none' if current auth mode is not supported by gRPC
   useEffect(() => {
-    if (authMode && !supportedGrpcAuthModes.includes(authMode)) {
+    if (authMode && !AUTH_MODES_GRPC.includes(authMode)) {
       dispatch(
         updateRequestAuthMode({
           itemUid: item.uid,
@@ -45,35 +45,6 @@ const GrpcAuth = ({ item, collection }) => {
     }
   }, [authMode, collection.uid, dispatch, item.uid]);
 
-  const getEffectiveAuthSource = () => {
-    if (authMode !== 'inherit') return null;
-
-    const collectionRoot = collection?.draft?.root || collection?.root || {};
-    const collectionAuth = get(collectionRoot, 'request.auth');
-    let effectiveSource = {
-      type: 'collection',
-      name: 'Collection',
-      auth: collectionAuth
-    };
-
-    // Check folders in reverse to find the closest auth configuration
-    for (let i of [...requestTreePath].reverse()) {
-      if (i.type === 'folder') {
-        const folderAuth = get(i, 'root.request.auth');
-        if (folderAuth && folderAuth.mode && folderAuth.mode !== 'none' && folderAuth.mode !== 'inherit') {
-          effectiveSource = {
-            type: 'folder',
-            name: i.name,
-            auth: folderAuth
-          };
-          break;
-        }
-      }
-    }
-
-    return effectiveSource;
-  };
-
   const getAuthView = () => {
     switch (authMode) {
       case 'none': {
@@ -95,15 +66,13 @@ const GrpcAuth = ({ item, collection }) => {
         return <WsseAuth collection={collection} item={item} updateAuth={updateAuth} request={request} save={save} />;
       }
       case 'inherit': {
-        const source = getEffectiveAuthSource();
-
         // Only show inherited auth if it's one of the supported types
-        if (source && supportedGrpcAuthModes.includes(source.auth?.mode)) {
+        if (inheritedSource && AUTH_MODES_GRPC.includes(inheritedSource.auth?.mode)) {
           return (
             <>
               <div className="flex flex-row w-full gap-2">
-                <div>Auth inherited from {source.name}: </div>
-                <div className="inherit-mode-text">{humanizeRequestAuthMode(source.auth?.mode)}</div>
+                <div>Auth inherited from {inheritedSource.name}: </div>
+                <div className="inherit-mode-text">{humanizeRequestAuthMode(inheritedSource.auth?.mode)}</div>
               </div>
             </>
           );
diff --git a/packages/bruno-app/src/components/RequestPane/GrpcRequestPane/index.js b/packages/bruno-app/src/components/RequestPane/GrpcRequestPane/index.js
index 7ea16f177..fc849e60d 100644
--- a/packages/bruno-app/src/components/RequestPane/GrpcRequestPane/index.js
+++ b/packages/bruno-app/src/components/RequestPane/GrpcRequestPane/index.js
@@ -12,6 +12,8 @@ import Documentation from 'components/Documentation/index';
 import { getPropertyFromDraftOrRequest } from 'utils/collections/index';
 import ResponsiveTabs from 'ui/ResponsiveTabs';
 import StyledWrapper from './StyledWrapper';
+import { hasEffectiveAuth } from 'utils/auth';
+import { AUTH_MODES_GRPC } from 'utils/common/constants';
 
 const GrpcRequestPane = ({ item, collection, handleRun }) => {
   const dispatch = useDispatch();
@@ -53,8 +55,11 @@ const GrpcRequestPane = ({ item, collection, handleRun }) => {
   const body = getPropertyFromDraftOrRequest(item, 'request.body');
   const headers = getPropertyFromDraftOrRequest(item, 'request.headers');
   const docs = getPropertyFromDraftOrRequest(item, 'request.docs');
-  const auth = getPropertyFromDraftOrRequest(item, 'request.auth');
-
+  const itemAuthMode = item.draft?.request?.auth?.mode ?? item.request?.auth?.mode ?? item.root?.request?.auth?.mode;
+  const hasAuth = useMemo(
+    () => hasEffectiveAuth(collection, item, AUTH_MODES_GRPC),
+    [item, itemAuthMode, collection]
+  );
   const activeHeadersLength = headers.filter((header) => header.enabled).length;
   const grpcMessagesCount = body?.grpc?.length || 0;
 
@@ -88,7 +93,7 @@ const GrpcRequestPane = ({ item, collection, handleRun }) => {
       {
         key: 'auth',
         label: 'Auth',
-        indicator: auth?.mode && auth.mode !== 'none' ? <StatusDot type="default" /> : null
+        indicator: hasAuth ? <StatusDot type="default" dataTestId="auth" /> : null
       },
       {
         key: 'docs',
@@ -96,7 +101,7 @@ const GrpcRequestPane = ({ item, collection, handleRun }) => {
         indicator: docs && docs.length > 0 ? <StatusDot type="default" /> : null
       }
     ];
-  }, [grpcMessagesCount, isClientStreaming, activeHeadersLength, auth?.mode, docs]);
+  }, [grpcMessagesCount, isClientStreaming, activeHeadersLength, hasAuth, docs]);
 
   // Initialize tab to 'body' if no tab is currently set
   useEffect(() => {
diff --git a/packages/bruno-app/src/components/RequestPane/HttpRequestPane/index.js b/packages/bruno-app/src/components/RequestPane/HttpRequestPane/index.js
index bfa9253e0..a0621adb2 100644
--- a/packages/bruno-app/src/components/RequestPane/HttpRequestPane/index.js
+++ b/packages/bruno-app/src/components/RequestPane/HttpRequestPane/index.js
@@ -18,6 +18,7 @@ import StatusDot from 'components/StatusDot';
 import ResponsiveTabs from 'ui/ResponsiveTabs';
 import HeightBoundContainer from 'ui/HeightBoundContainer';
 import AuthMode from '../Auth/AuthMode/index';
+import { hasEffectiveAuth } from 'utils/auth';
 
 const TAB_CONFIG = [
   { key: 'params', label: 'Params' },
@@ -54,7 +55,6 @@ const HttpRequestPane = ({ item, collection }) => {
 
   const focusedTab = find(tabs, (t) => t.uid === activeTabUid);
   const requestPaneTab = focusedTab?.requestPaneTab;
-
   const getProperty = useCallback(
     (key) => (item.draft ? get(item, `draft.${key}`, []) : get(item, key, [])),
     [item.draft, item]
@@ -86,6 +86,12 @@ const HttpRequestPane = ({ item, collection }) => {
     [dispatch, item.uid]
   );
 
+  const itemAuthMode = item.draft?.request?.auth?.mode ?? item.request?.auth?.mode ?? item.root?.request?.auth?.mode;
+  const hasAuth = useMemo(
+    () => hasEffectiveAuth(collection, item),
+    [item, itemAuthMode, collection]
+  );
+
   const indicators = useMemo(() => {
     const hasScriptError = item.preRequestScriptErrorMessage || item.postResponseScriptErrorMessage;
     const hasTestError = item.testScriptErrorMessage;
@@ -94,7 +100,7 @@ const HttpRequestPane = ({ item, collection }) => {
       params: activeCounts.params > 0 ? <sup className="font-medium">{activeCounts.params}</sup> : null,
       body: body.mode !== 'none' ? <StatusDot /> : null,
       headers: activeCounts.headers > 0 ? <sup className="font-medium">{activeCounts.headers}</sup> : null,
-      auth: auth.mode !== 'none' ? <StatusDot /> : null,
+      auth: hasAuth ? <StatusDot dataTestId="auth" /> : null,
       vars: activeCounts.vars > 0 ? <sup className="font-medium">{activeCounts.vars}</sup> : null,
       script: (script.req || script.res) ? (hasScriptError ? <StatusDot type="error" /> : <StatusDot />) : null,
       assert: activeCounts.assertions > 0 ? <sup className="font-medium">{activeCounts.assertions}</sup> : null,
@@ -102,7 +108,7 @@ const HttpRequestPane = ({ item, collection }) => {
       docs: docs?.length > 0 ? <StatusDot /> : null,
       settings: tags?.length > 0 ? <StatusDot /> : null
     };
-  }, [activeCounts, body.mode, auth.mode, script, item.preRequestScriptErrorMessage, item.postResponseScriptErrorMessage, item.testScriptErrorMessage, tests, docs, tags]);
+  }, [activeCounts, body.mode, hasAuth, script, item.preRequestScriptErrorMessage, item.postResponseScriptErrorMessage, item.testScriptErrorMessage, tests, docs, tags]);
 
   const allTabs = useMemo(
     () => TAB_CONFIG.map(({ key, label }) => ({ key, label, indicator: indicators[key] })),
diff --git a/packages/bruno-app/src/components/RequestPane/WSRequestPane/WSAuth/index.js b/packages/bruno-app/src/components/RequestPane/WSRequestPane/WSAuth/index.js
index ac11af49b..5627e322e 100644
--- a/packages/bruno-app/src/components/RequestPane/WSRequestPane/WSAuth/index.js
+++ b/packages/bruno-app/src/components/RequestPane/WSRequestPane/WSAuth/index.js
@@ -1,4 +1,4 @@
-import React, { useEffect } from 'react';
+import React, { useEffect, useMemo } from 'react';
 import get from 'lodash/get';
 import { useDispatch } from 'react-redux';
 import BearerAuth from '../../Auth/BearerAuth';
@@ -6,16 +6,15 @@ import BasicAuth from '../../Auth/BasicAuth';
 import ApiKeyAuth from '../../Auth/ApiKeyAuth';
 import StyledWrapper from './StyledWrapper';
 import { humanizeRequestAuthMode } from 'utils/collections';
-import { getTreePathFromCollectionToItem } from 'utils/collections/index';
+import { getEffectiveAuthSource } from 'utils/auth';
 import { updateRequestAuthMode, updateAuth } from 'providers/ReduxStore/slices/collections';
 import { saveRequest } from 'providers/ReduxStore/slices/collections/actions';
 
-const supportedAuthModes = ['basic', 'bearer', 'apikey', 'oauth2', 'none', 'inherit'];
+import { AUTH_MODES_WS } from 'utils/common/constants';
 
 const WSAuth = ({ item, collection }) => {
   const dispatch = useDispatch();
   const authMode = item.draft ? get(item, 'draft.request.auth.mode') : get(item, 'request.auth.mode');
-  const requestTreePath = getTreePathFromCollectionToItem(collection, item);
 
   const request = item.draft
     ? get(item, 'draft.request', {})
@@ -25,9 +24,14 @@ const WSAuth = ({ item, collection }) => {
     return saveRequest(item.uid, collection.uid);
   };
 
+  const inheritedSource = useMemo(
+    () => (authMode === 'inherit' ? getEffectiveAuthSource(collection, item) : null),
+    [authMode, item, collection]
+  );
+
   // Reset to 'none' if current auth mode is not supported
   useEffect(() => {
-    if (authMode && !supportedAuthModes.includes(authMode)) {
+    if (authMode && !AUTH_MODES_WS.includes(authMode)) {
       dispatch(updateRequestAuthMode({
         itemUid: item.uid,
         collectionUid: collection.uid,
@@ -36,35 +40,6 @@ const WSAuth = ({ item, collection }) => {
     }
   }, [authMode, collection.uid, dispatch, item.uid]);
 
-  const getEffectiveAuthSource = () => {
-    if (authMode !== 'inherit') return null;
-
-    const collectionRoot = collection?.draft?.root || collection?.root || {};
-    const collectionAuth = get(collectionRoot, 'request.auth');
-    let effectiveSource = {
-      type: 'collection',
-      name: 'Collection',
-      auth: collectionAuth
-    };
-
-    // Check folders in reverse to find the closest auth configuration
-    for (let i of [...requestTreePath].reverse()) {
-      if (i.type === 'folder') {
-        const folderAuth = get(i, 'root.request.auth');
-        if (folderAuth && folderAuth.mode && folderAuth.mode !== 'none' && folderAuth.mode !== 'inherit') {
-          effectiveSource = {
-            type: 'folder',
-            name: i.name,
-            auth: folderAuth
-          };
-          break;
-        }
-      }
-    }
-
-    return effectiveSource;
-  };
-
   const getAuthView = () => {
     switch (authMode) {
       case 'none': {
@@ -91,26 +66,24 @@ const WSAuth = ({ item, collection }) => {
         );
       }
       case 'inherit': {
-        const source = getEffectiveAuthSource();
-
         // Check if inherited auth is OAuth1/OAuth2 - not supported for WebSockets
-        if (source?.auth?.mode === 'oauth1' || source?.auth?.mode === 'oauth2') {
+        if (inheritedSource?.auth?.mode === 'oauth1' || inheritedSource?.auth?.mode === 'oauth2') {
           return (
             <>
               <div className="flex flex-row w-full mt-2 gap-2">
-                {source.auth.mode === 'oauth1' ? 'OAuth 1.0' : 'OAuth 2'} not <strong>yet</strong> supported by WebSockets. Using no auth instead.
+                {inheritedSource.auth.mode === 'oauth1' ? 'OAuth 1.0' : 'OAuth 2'} not <strong>yet</strong> supported by WebSockets. Using no auth instead.
               </div>
             </>
           );
         }
 
         // Only show inherited auth if it's one of the supported types
-        if (source && supportedAuthModes.includes(source.auth?.mode)) {
+        if (inheritedSource && AUTH_MODES_WS.includes(inheritedSource.auth?.mode)) {
           return (
             <>
               <div className="flex flex-row w-full gap-2">
-                <div> Auth inherited from {source.name}: </div>
-                <div className="inherit-mode-text">{humanizeRequestAuthMode(source.auth?.mode)}</div>
+                <div> Auth inherited from {inheritedSource.name}: </div>
+                <div className="inherit-mode-text">{humanizeRequestAuthMode(inheritedSource.auth?.mode)}</div>
               </div>
             </>
           );
diff --git a/packages/bruno-app/src/components/RequestPane/WSRequestPane/index.js b/packages/bruno-app/src/components/RequestPane/WSRequestPane/index.js
index 432d07c95..0fa945bee 100644
--- a/packages/bruno-app/src/components/RequestPane/WSRequestPane/index.js
+++ b/packages/bruno-app/src/components/RequestPane/WSRequestPane/index.js
@@ -20,6 +20,8 @@ import StyledWrapper from './StyledWrapper';
 import WSAuth from './WSAuth';
 import WSAuthMode from './WSAuth/WSAuthMode';
 import WSSettingsPane from '../WSSettingsPane/index';
+import { hasEffectiveAuth } from 'utils/auth';
+import { AUTH_MODES_WS } from 'utils/common/constants';
 
 const WSRequestPane = ({ item, collection, handleRun }) => {
   const dispatch = useDispatch();
@@ -102,8 +104,11 @@ const WSRequestPane = ({ item, collection, handleRun }) => {
 
   const headers = getPropertyFromDraftOrRequest(item, 'request.headers');
   const docs = getPropertyFromDraftOrRequest(item, 'request.docs');
-  const auth = getPropertyFromDraftOrRequest(item, 'request.auth');
-
+  const itemAuthMode = item.draft?.request?.auth?.mode ?? item.request?.auth?.mode ?? item.root?.request?.auth?.mode;
+  const hasAuth = useMemo(
+    () => hasEffectiveAuth(collection, item, AUTH_MODES_WS),
+    [item, itemAuthMode, collection]
+  );
   const activeHeadersLength = headers.filter((header) => header.enabled).length;
 
   const allTabs = useMemo(() => {
@@ -121,7 +126,7 @@ const WSRequestPane = ({ item, collection, handleRun }) => {
       {
         key: 'auth',
         label: 'Auth',
-        indicator: auth.mode !== 'none' ? <StatusDot type="default" /> : null
+        indicator: hasAuth ? <StatusDot type="default" dataTestId="auth" /> : null
       },
       {
         key: 'settings',
@@ -134,7 +139,7 @@ const WSRequestPane = ({ item, collection, handleRun }) => {
         indicator: docs && docs.length > 0 ? <StatusDot type="default" /> : null
       }
     ];
-  }, [activeHeadersLength, auth.mode, docs]);
+  }, [activeHeadersLength, hasAuth, docs]);
 
   const tabPanel = useMemo(() => {
     switch (requestPaneTab) {
diff --git a/packages/bruno-app/src/components/ResponsePane/Timeline/index.js b/packages/bruno-app/src/components/ResponsePane/Timeline/index.js
index e6d12a41f..8a5a7a6ef 100644
--- a/packages/bruno-app/src/components/ResponsePane/Timeline/index.js
+++ b/packages/bruno-app/src/components/ResponsePane/Timeline/index.js
@@ -53,7 +53,12 @@ const Timeline = ({ collection, item }) => {
   useTrackScroll({ ref: wrapperRef, selector: null, onChange: setScroll, initialValue: scroll });
   const [activeFilter, setActiveFilter] = useState('all');
 
-  const authSource = getEffectiveAuthSource(collection, item);
+  // Get the effective auth source if auth mode is inherit
+  const itemAuthMode = item.draft?.request?.auth?.mode ?? item.request?.auth?.mode ?? item.root?.request?.auth?.mode;
+  const authSource = useMemo(
+    () => getEffectiveAuthSource(collection, item),
+    [item, itemAuthMode, collection]
+  );
   const isGrpcRequest = item.type === 'grpc-request' || item.type === 'ws-request';
 
   const entries = useMemo(
diff --git a/packages/bruno-app/src/components/StatusDot/index.js b/packages/bruno-app/src/components/StatusDot/index.js
index f02002111..9ddc3ed1c 100644
--- a/packages/bruno-app/src/components/StatusDot/index.js
+++ b/packages/bruno-app/src/components/StatusDot/index.js
@@ -1,11 +1,12 @@
 import React from 'react';
 import DotIcon from 'components/Icons/Dot';
 
-const StatusDot = ({ type = 'default' }) => (
+const StatusDot = ({ type = 'default', dataTestId = null }) => (
   <sup
     className={`ml-[.125rem] opacity-80 font-medium ${
       type === 'error' ? 'text-red-500' : ''
     }`}
+    data-testid={dataTestId ? `status-dot-${dataTestId}` : 'status-dot'}
   >
     <DotIcon width="10" />
   </sup>
diff --git a/packages/bruno-app/src/utils/auth/index.js b/packages/bruno-app/src/utils/auth/index.js
index b479b63c4..fa23a1fc9 100644
--- a/packages/bruno-app/src/utils/auth/index.js
+++ b/packages/bruno-app/src/utils/auth/index.js
@@ -2,6 +2,7 @@ import { get } from 'lodash';
 import {
   getTreePathFromCollectionToItem
 } from 'utils/collections/index';
+import { AUTH_MODES } from 'utils/common/constants';
 
 // Resolve inherited auth by traversing up the folder hierarchy
 export const resolveInheritedAuth = (item, collection) => {
@@ -25,8 +26,9 @@ export const resolveInheritedAuth = (item, collection) => {
   const collectionAuth = get(collectionRoot, 'request.auth', { mode: 'none' });
   let effectiveAuth = collectionAuth;
 
-  // Check folders in reverse to find the closest auth configuration
-  for (let i of [...requestTreePath].reverse()) {
+  // Walk ancestor folders from deepest up; pick the first one with a concrete auth mode (skip 'none'/'inherit').
+  for (let idx = requestTreePath.length - 1; idx >= 0; idx--) {
+    const i = requestTreePath[idx];
     if (i.type === 'folder') {
       const folderAuth = i?.draft ? get(i, 'draft.request.auth') : get(i, 'root.request.auth');
       if (folderAuth && folderAuth.mode && folderAuth.mode !== 'none' && folderAuth.mode !== 'inherit') {
@@ -41,3 +43,51 @@ export const resolveInheritedAuth = (item, collection) => {
     auth: effectiveAuth
   };
 };
+
+export const getEffectiveAuthSource = (collection, item) => {
+  const authMode = item?.draft
+    ? get(item, 'draft.request.auth.mode')
+    : (get(item, 'request.auth.mode') ?? get(item, 'root.request.auth.mode'));
+  if (authMode !== AUTH_MODES.INHERIT) return null;
+
+  const collectionRoot = collection?.draft?.root || collection?.root || {};
+  const collectionAuth = get(collectionRoot, 'request.auth');
+  let effectiveSource = {
+    type: 'collection',
+    name: 'Collection',
+    auth: collectionAuth
+  };
+
+  const requestTreePath = getTreePathFromCollectionToItem(collection, item);
+  for (let idx = requestTreePath.length - 1; idx >= 0; idx--) {
+    const i = requestTreePath[idx];
+    if (i?.uid === item?.uid) continue;
+    if (i?.type !== 'folder') continue;
+    const folderAuth = i?.draft ? get(i, 'draft.request.auth') : get(i, 'root.request.auth');
+    if (!folderAuth || !folderAuth.mode) continue;
+    if (folderAuth.mode === AUTH_MODES.INHERIT) continue;
+    effectiveSource = {
+      type: 'folder',
+      name: i.name,
+      auth: folderAuth
+    };
+    break;
+  }
+
+  return effectiveSource;
+};
+
+// Returns true when an item actually has auth applied — resolves `inherit` up
+// the chain, then checks that the effective mode is set, not 'none', and (if a
+// supportedModes list is passed) is one the protocol can apply.
+export const hasEffectiveAuth = (collection, item, supportedModes) => {
+  const auth = item?.draft
+    ? get(item, 'draft.request.auth')
+    : (get(item, 'request.auth') ?? get(item, 'root.request.auth'));
+  const mode = auth?.mode === AUTH_MODES.INHERIT
+    ? getEffectiveAuthSource(collection, item)?.auth?.mode
+    : auth?.mode;
+  if (!mode || mode === AUTH_MODES.NONE) return false;
+  if (supportedModes && !supportedModes.includes(mode)) return false;
+  return true;
+};
diff --git a/packages/bruno-app/src/utils/auth/index.spec.js b/packages/bruno-app/src/utils/auth/index.spec.js
index dfdde956f..2da6dd329 100644
--- a/packages/bruno-app/src/utils/auth/index.spec.js
+++ b/packages/bruno-app/src/utils/auth/index.spec.js
@@ -1,13 +1,21 @@
-import { resolveInheritedAuth } from './index';
+import { getEffectiveAuthSource, resolveInheritedAuth } from './index';
 
 jest.mock('utils/collections/index', () => ({
+  // General path finder: walks the collection.items tree until it finds the
+  // item with the matching uid and returns the full path to it.
   getTreePathFromCollectionToItem: (collection, item) => {
-    const itemUid = item.uid;
-
-    if (itemUid === 'r1') {
-      return [collection.items[0], collection.items[0].items[0]];
-    }
-    return [];
+    const findPath = (items, targetUid, path = []) => {
+      for (const i of items || []) {
+        const next = [...path, i];
+        if (i.uid === targetUid) return next;
+        if (i.items) {
+          const found = findPath(i.items, targetUid, next);
+          if (found) return found;
+        }
+      }
+      return null;
+    };
+    return findPath(collection.items, item?.uid) || [];
   }
 }));
 
@@ -17,7 +25,7 @@ const buildCollection = () => {
     uid: 'c1',
     root: {
       request: {
-        auth: { mode: 'bearer', bearer: { token: 'COLLECTION' } }
+        auth: { mode: 'bearer', bearer: { token: 'COLLECTION_LEVEL_TOKEN' } }
       }
     },
     items: [
@@ -64,7 +72,7 @@ describe('auth-utils.resolveInheritedAuth', () => {
 
     const resolved = resolveInheritedAuth(item, collection);
     expect(resolved.auth.mode).toBe('bearer');
-    expect(resolved.auth.bearer.token).toBe('COLLECTION');
+    expect(resolved.auth.bearer.token).toBe('COLLECTION_LEVEL_TOKEN');
   });
 
   it('should return original request when mode is not inherit', () => {
@@ -77,3 +85,211 @@ describe('auth-utils.resolveInheritedAuth', () => {
     expect(resolved.auth.basic.username).toBe('override');
   });
 });
+
+describe('auth-utils.getEffectiveAuthSource', () => {
+  it('returns null when the request mode is not inherit', () => {
+    const collection = buildCollection();
+    const item = collection.items[0].items[0]; // r1
+    item.request.auth = { mode: 'bearer', bearer: { token: 'MOCK_REQUEST_OWN_TOKEN_STRING' } };
+
+    expect(getEffectiveAuthSource(collection, item)).toBeNull();
+  });
+
+  it('returns null when the request has no auth configured', () => {
+    const collection = buildCollection();
+    const item = collection.items[0].items[0];
+    item.request.auth = undefined;
+
+    expect(getEffectiveAuthSource(collection, item)).toBeNull();
+  });
+
+  it('returns the nearest configured folder when request inherits and folder has auth', () => {
+    const collection = buildCollection();
+    const item = collection.items[0].items[0]; // r1, mode 'inherit'
+
+    const source = getEffectiveAuthSource(collection, item);
+    expect(source).toEqual({
+      type: 'folder',
+      name: 'Folder',
+      auth: { mode: 'basic', basic: { username: 'user', password: 'pass' } }
+    });
+  });
+
+  it('falls back to the collection when no ancestor folder has configured auth', () => {
+    const collection = buildCollection();
+    // make the folder also inherit so the walk falls through to the collection
+    collection.items[0].root.request.auth = { mode: 'inherit' };
+    const item = collection.items[0].items[0];
+
+    const source = getEffectiveAuthSource(collection, item);
+    expect(source).toEqual({
+      type: 'collection',
+      name: 'Collection',
+      auth: { mode: 'bearer', bearer: { token: 'COLLECTION_LEVEL_TOKEN' } }
+    });
+  });
+
+  it('skips the item itself when the item is a folder in inherit mode', () => {
+    // Build a parent → child folder chain; child is the item under test.
+    const collection = {
+      uid: 'c1',
+      root: { request: { auth: { mode: 'bearer', bearer: { token: 'COLLECTION_LEVEL_TOKEN' } } } },
+      items: [
+        {
+          uid: 'parent',
+          type: 'folder',
+          name: 'Parent',
+          root: { request: { auth: { mode: 'basic', basic: { username: 'p', password: 'p' } } } },
+          items: [
+            {
+              uid: 'child',
+              type: 'folder',
+              name: 'Child',
+              root: { request: { auth: { mode: 'inherit' } } },
+              items: []
+            }
+          ]
+        }
+      ]
+    };
+    const child = collection.items[0].items[0];
+
+    const source = getEffectiveAuthSource(collection, child);
+    expect(source).toEqual({
+      type: 'folder',
+      name: 'Parent',
+      auth: { mode: 'basic', basic: { username: 'p', password: 'p' } }
+    });
+  });
+
+  it('prefers the draft mode when item.draft exists', () => {
+    const collection = buildCollection();
+    const item = collection.items[0].items[0];
+    item.request.auth = { mode: 'bearer' }; // saved is not inherit
+    item.draft = { request: { auth: { mode: 'inherit' } } }; // draft is inherit
+
+    const source = getEffectiveAuthSource(collection, item);
+    expect(source).toEqual({
+      type: 'folder',
+      name: 'Folder',
+      auth: { mode: 'basic', basic: { username: 'user', password: 'pass' } }
+    });
+  });
+
+  it('resolves correctly when both draft and saved auth are inherit on a folder whose parent is also a folder', () => {
+    const collection = {
+      uid: 'c1',
+      root: { request: { auth: { mode: 'bearer', bearer: { token: 'COLLECTION_LEVEL_TOKEN' } } } },
+      items: [
+        {
+          uid: 'parent',
+          type: 'folder',
+          name: 'Parent',
+          root: { request: { auth: { mode: 'basic', basic: { username: 'p', password: 'p' } } } },
+          items: [
+            {
+              uid: 'child',
+              type: 'folder',
+              name: 'Child',
+              root: { request: { auth: { mode: 'inherit' } } }, // saved: inherit
+              draft: { request: { auth: { mode: 'inherit' } } }, // draft: inherit
+              items: []
+            }
+          ]
+        }
+      ]
+    };
+    const child = collection.items[0].items[0];
+
+    const source = getEffectiveAuthSource(collection, child);
+    expect(source).toEqual({
+      type: 'folder',
+      name: 'Parent',
+      auth: { mode: 'basic', basic: { username: 'p', password: 'p' } }
+    });
+  });
+
+  it('handles a folder item without draft using its root.request.auth.mode', () => {
+    // The folder's mode is read from root.request.auth.mode when no draft exists.
+    const collection = {
+      uid: 'c1',
+      root: { request: { auth: { mode: 'bearer', bearer: { token: 'COLLECTION_LEVEL_TOKEN' } } } },
+      items: [
+        {
+          uid: 'folder-inherit',
+          type: 'folder',
+          name: 'FolderInherit',
+          root: { request: { auth: { mode: 'inherit' } } },
+          items: []
+        }
+      ]
+    };
+    const folder = collection.items[0];
+
+    const source = getEffectiveAuthSource(collection, folder);
+    expect(source).toEqual({
+      type: 'collection',
+      name: 'Collection',
+      auth: { mode: 'bearer', bearer: { token: 'COLLECTION_LEVEL_TOKEN' } }
+    });
+  });
+
+  it('handles a folder item with draft by reading its draft.request.auth.mode (not the saved root mode)', () => {
+    // Saved mode is 'basic' (would return null since not inherit), but draft is 'inherit'
+    // so the walk should run and resolve to the collection.
+    const collection = {
+      uid: 'c1',
+      root: { request: { auth: { mode: 'bearer', bearer: { token: 'COLLECTION_LEVEL_TOKEN' } } } },
+      items: [
+        {
+          uid: 'folder-draft-inherit',
+          type: 'folder',
+          name: 'FolderDraftInherit',
+          root: { request: { auth: { mode: 'basic', basic: { username: 'saved', password: 'saved' } } } },
+          draft: { request: { auth: { mode: 'inherit' } } },
+          items: []
+        }
+      ]
+    };
+    const folder = collection.items[0];
+
+    const source = getEffectiveAuthSource(collection, folder);
+    expect(source).toEqual({
+      type: 'collection',
+      name: 'Collection',
+      auth: { mode: 'bearer', bearer: { token: 'COLLECTION_LEVEL_TOKEN' } }
+    });
+  });
+
+  it('skips ancestor folders whose auth.mode is itself "inherit"', () => {
+    // Parent folder also inherits — walk should continue past it to collection.
+    const collection = {
+      uid: 'c1',
+      root: { request: { auth: { mode: 'bearer', bearer: { token: 'COLLECTION_LEVEL_TOKEN' } } } },
+      items: [
+        {
+          uid: 'parent',
+          type: 'folder',
+          name: 'Parent',
+          root: { request: { auth: { mode: 'inherit' } } },
+          items: [
+            {
+              uid: 'r1',
+              type: 'request',
+              name: 'Request',
+              request: { auth: { mode: 'inherit' } }
+            }
+          ]
+        }
+      ]
+    };
+    const item = collection.items[0].items[0];
+
+    const source = getEffectiveAuthSource(collection, item);
+    expect(source).toEqual({
+      type: 'collection',
+      name: 'Collection',
+      auth: { mode: 'bearer', bearer: { token: 'COLLECTION_LEVEL_TOKEN' } }
+    });
+  });
+});
diff --git a/packages/bruno-app/src/utils/common/constants.js b/packages/bruno-app/src/utils/common/constants.js
index b52c8dbf2..c555022e8 100644
--- a/packages/bruno-app/src/utils/common/constants.js
+++ b/packages/bruno-app/src/utils/common/constants.js
@@ -1,3 +1,47 @@
 export const REQUEST_TYPES = ['http-request', 'graphql-request', 'grpc-request', 'ws-request'];
 
 export const DEFAULT_COLLECTION_FORMAT = 'yml';
+
+export const PRESET_REQUEST_TYPES = {
+  HTTP: 'http',
+  GRAPHQL: 'graphql',
+  GRPC: 'grpc',
+  WS: 'ws'
+};
+
+export const DEFAULT_PRESET_REQUEST_TYPE = PRESET_REQUEST_TYPES.HTTP;
+
+export const AUTH_MODES = {
+  AWSV4: 'awsv4',
+  BASIC: 'basic',
+  BEARER: 'bearer',
+  DIGEST: 'digest',
+  NTLM: 'ntlm',
+  OAUTH1: 'oauth1',
+  OAUTH2: 'oauth2',
+  WSSE: 'wsse',
+  APIKEY: 'apikey',
+  NONE: 'none',
+  INHERIT: 'inherit'
+};
+
+// Auth modes supported by WS protocol.
+export const AUTH_MODES_WS = [
+  AUTH_MODES.BASIC,
+  AUTH_MODES.BEARER,
+  AUTH_MODES.APIKEY,
+  AUTH_MODES.OAUTH2,
+  AUTH_MODES.NONE,
+  AUTH_MODES.INHERIT
+];
+
+// Auth modes supported by GRPC protocol
+export const AUTH_MODES_GRPC = [
+  AUTH_MODES.BASIC,
+  AUTH_MODES.BEARER,
+  AUTH_MODES.APIKEY,
+  AUTH_MODES.OAUTH2,
+  AUTH_MODES.WSSE,
+  AUTH_MODES.NONE,
+  AUTH_MODES.INHERIT
+];
diff --git a/packages/bruno-converters/src/opencollection/bruno-to-opencollection.ts b/packages/bruno-converters/src/opencollection/bruno-to-opencollection.ts
index 6fa5dc92e..0bc59b372 100644
--- a/packages/bruno-converters/src/opencollection/bruno-to-opencollection.ts
+++ b/packages/bruno-converters/src/opencollection/bruno-to-opencollection.ts
@@ -2,7 +2,7 @@ import { toOpenCollectionAuth, toOpenCollectionHeaders, toOpenCollectionScripts,
 import { toOpenCollectionEnvironments } from "./environment";
 import { toOpenCollectionFolder } from "./folder";
 import { toOpenCollectionItems } from "./items";
-import { BrunoCollection, BrunoCollectionRoot, BrunoConfig, ClientCertificate, CollectionConfig, OpenCollection, PemCertificate, Pkcs12Certificate, Protobuf } from "./types";
+import { BrunoCollection, BrunoCollectionRoot, BrunoConfig, BrunoPresets, ClientCertificate, CollectionConfig, OpenCollection, PemCertificate, Pkcs12Certificate, Protobuf } from "./types";
 
 const toOpenCollectionConfig = (brunoConfig: BrunoConfig | undefined): CollectionConfig | undefined => {
   if (!brunoConfig) {
@@ -147,10 +147,7 @@ export const brunoToOpenCollection = (collection: BrunoCollection): OpenCollecti
 
   const brunoExtension: {
     ignore?: string[];
-    presets?: {
-      requestType?: string;
-      requestUrl?: string;
-    };
+    presets?: BrunoPresets;
   } = {};
 
   if ((collection.brunoConfig as BrunoConfig)?.ignore?.length) {
diff --git a/packages/bruno-converters/src/opencollection/opencollection-to-bruno.ts b/packages/bruno-converters/src/opencollection/opencollection-to-bruno.ts
index c934c435d..2b8d0a5bc 100644
--- a/packages/bruno-converters/src/opencollection/opencollection-to-bruno.ts
+++ b/packages/bruno-converters/src/opencollection/opencollection-to-bruno.ts
@@ -1,5 +1,5 @@
 import { OpenCollection } from "@opencollection/types";
-import { BrunoCollection, BrunoCollectionRoot, BrunoConfig, PemCertificate, Pkcs12Certificate } from "./types";
+import { BrunoCollection, BrunoCollectionRoot, BrunoConfig, BrunoPresets, PemCertificate, Pkcs12Certificate } from "./types";
 import { fromOpenCollectionAuth, fromOpenCollectionHeaders, fromOpenCollectionScripts, fromOpenCollectionVariables } from "./common";
 import { uuid } from "../common";
 import { fromOpenCollectionItems } from "./items";
@@ -9,10 +9,7 @@ import { fromOpenCollectionEnvironments } from "./environment";
 const fromOpenCollectionConfig = (oc: OpenCollection): BrunoConfig => {
   const brunoExtension = oc.extensions?.bruno as {
     ignore?: string[];
-    presets?: {
-      requestType?: string;
-      requestUrl?: string;
-    };
+    presets?: BrunoPresets;
   } | undefined;
 
   const ignoreList = brunoExtension && Array.isArray(brunoExtension.ignore)
diff --git a/packages/bruno-converters/src/opencollection/types.ts b/packages/bruno-converters/src/opencollection/types.ts
index 3b6afdf23..0be53a34c 100644
--- a/packages/bruno-converters/src/opencollection/types.ts
+++ b/packages/bruno-converters/src/opencollection/types.ts
@@ -168,15 +168,17 @@ export type {
   WebSocketMessage as BrunoWsMessage
 } from '@usebruno/schema-types/requests/websocket';
 
+export interface BrunoPresets {
+  requestType?: string;
+  requestUrl?: string;
+}
+
 export interface BrunoConfig {
   version?: string;
   name?: string;
   type?: string;
   ignore?: string[];
-  presets?: {
-    requestType?: string;
-    requestUrl?: string;
-  };
+  presets?: BrunoPresets;
   protobuf?: {
     protoFiles?: { path: string }[];
     importPaths?: { path: string; enabled?: boolean }[];
diff --git a/packages/bruno-electron/src/utils/collection.js b/packages/bruno-electron/src/utils/collection.js
index dc08f1b37..a5bb287e8 100644
--- a/packages/bruno-electron/src/utils/collection.js
+++ b/packages/bruno-electron/src/utils/collection.js
@@ -809,7 +809,7 @@ const mergeAuth = (collection, request, requestTreePath) => {
       const folderRoot = i?.draft || i?.root;
       const folderAuth = get(folderRoot, 'request.auth');
       // Only consider folders that have a valid auth mode
-      if (folderAuth && folderAuth.mode && folderAuth.mode !== 'none' && folderAuth.mode !== 'inherit') {
+      if (folderAuth && folderAuth.mode && folderAuth.mode !== 'inherit') {
         effectiveAuth = folderAuth;
         lastFolderWithAuth = i;
       }
diff --git a/packages/bruno-filestore/src/formats/yml/parseCollection.ts b/packages/bruno-filestore/src/formats/yml/parseCollection.ts
index 602d65aa2..ecb57bbf2 100644
--- a/packages/bruno-filestore/src/formats/yml/parseCollection.ts
+++ b/packages/bruno-filestore/src/formats/yml/parseCollection.ts
@@ -7,6 +7,7 @@ import { toBrunoVariables } from './common/variables';
 import { toBrunoPostResponseVariables } from './common/actions';
 import { toBrunoScripts } from './common/scripts';
 import { ensureString } from '../../utils';
+import type { BrunoPresetsExtension } from '../../types';
 
 interface ParsedCollection {
   collectionRoot: FolderRoot;
@@ -32,11 +33,11 @@ const parseCollection = (ymlString: string): ParsedCollection => {
 
     // presets
     if (brunoExtension?.presets) {
-      const presets = brunoExtension.presets as any;
+      const presets = brunoExtension.presets as BrunoPresetsExtension;
       if (presets.request) {
         brunoConfig.presets = {
-          requestType: presets.request.type || [],
-          requestUrl: presets.request.url || []
+          requestType: presets.request.type || '',
+          requestUrl: presets.request.url || ''
         };
       }
     }
diff --git a/packages/bruno-filestore/src/formats/yml/parseFolder.ts b/packages/bruno-filestore/src/formats/yml/parseFolder.ts
index d2109dfb2..60ba51f76 100644
--- a/packages/bruno-filestore/src/formats/yml/parseFolder.ts
+++ b/packages/bruno-filestore/src/formats/yml/parseFolder.ts
@@ -19,15 +19,9 @@ const parseFolder = (ymlString: string): FolderRoot => {
         name: ensureString(info?.name, 'Untitled Folder'),
         seq: info?.seq || 1
       },
-      request: null,
-      docs: null
-    };
-
-    // request defaults
-    if (ocFolder.request) {
-      folderRoot.request = {
+      request: {
         headers: [],
-        auth: null,
+        auth: toBrunoAuth(ocFolder.request?.auth),
         script: {
           req: null,
           res: null
@@ -37,40 +31,39 @@ const parseFolder = (ymlString: string): FolderRoot => {
           res: []
         },
         tests: null
-      };
+      },
+      docs: null
+    };
+
+    if (ocFolder.request) {
+      const folderRequest = folderRoot.request!;
 
       // headers
       const headers = toBrunoHttpHeaders(ocFolder.request.headers);
       if (headers) {
-        folderRoot.request.headers = headers;
-      }
-
-      // auth
-      const auth = toBrunoAuth(ocFolder.request.auth);
-      if (auth) {
-        folderRoot.request.auth = auth;
+        folderRequest.headers = headers;
       }
 
       // variables
       const variables = toBrunoVariables(ocFolder.request.variables);
       const postResponseVars = toBrunoPostResponseVariables((ocFolder.request as any).actions);
-      folderRoot.request.vars = {
+      folderRequest.vars = {
         req: variables.req,
         res: postResponseVars
       };
 
       // scripts
       const scripts = toBrunoScripts(ocFolder.request.scripts);
-      if (scripts?.script && folderRoot.request.script) {
+      if (scripts?.script && folderRequest.script) {
         if (scripts.script.req) {
-          folderRoot.request.script.req = scripts.script.req;
+          folderRequest.script.req = scripts.script.req;
         }
         if (scripts.script.res) {
-          folderRoot.request.script.res = scripts.script.res;
+          folderRequest.script.res = scripts.script.res;
         }
       }
       if (scripts?.tests) {
-        folderRoot.request.tests = scripts.tests;
+        folderRequest.tests = scripts.tests;
       }
     }
 
diff --git a/packages/bruno-filestore/src/formats/yml/tests/fixtures/presets/empty-request.yml b/packages/bruno-filestore/src/formats/yml/tests/fixtures/presets/empty-request.yml
new file mode 100644
index 000000000..72230b957
--- /dev/null
+++ b/packages/bruno-filestore/src/formats/yml/tests/fixtures/presets/empty-request.yml
@@ -0,0 +1,7 @@
+opencollection: 1.0.0
+info:
+  name: My Collection
+extensions:
+  bruno:
+    presets:
+      request: {}
diff --git a/packages/bruno-filestore/src/formats/yml/tests/fixtures/presets/no-presets.yml b/packages/bruno-filestore/src/formats/yml/tests/fixtures/presets/no-presets.yml
new file mode 100644
index 000000000..207a920e6
--- /dev/null
+++ b/packages/bruno-filestore/src/formats/yml/tests/fixtures/presets/no-presets.yml
@@ -0,0 +1,3 @@
+opencollection: 1.0.0
+info:
+  name: My Collection
diff --git a/packages/bruno-filestore/src/formats/yml/tests/fixtures/presets/no-request-key.yml b/packages/bruno-filestore/src/formats/yml/tests/fixtures/presets/no-request-key.yml
new file mode 100644
index 000000000..22d6f0ef1
--- /dev/null
+++ b/packages/bruno-filestore/src/formats/yml/tests/fixtures/presets/no-request-key.yml
@@ -0,0 +1,6 @@
+opencollection: 1.0.0
+info:
+  name: My Collection
+extensions:
+  bruno:
+    presets: {}
diff --git a/packages/bruno-filestore/src/formats/yml/tests/fixtures/presets/type-only-realistic.yml b/packages/bruno-filestore/src/formats/yml/tests/fixtures/presets/type-only-realistic.yml
new file mode 100644
index 000000000..1a4209446
--- /dev/null
+++ b/packages/bruno-filestore/src/formats/yml/tests/fixtures/presets/type-only-realistic.yml
@@ -0,0 +1,24 @@
+opencollection: 1.0.0
+
+info:
+  name: md8
+config:
+  proxy:
+    inherit: true
+    config:
+      protocol: http
+      hostname: ""
+      port: ""
+      auth:
+        username: ""
+        password: ""
+      bypassProxy: ""
+bundled: false
+extensions:
+  bruno:
+    ignore:
+      - node_modules
+      - .git
+    presets:
+      request:
+        type: graphql
diff --git a/packages/bruno-filestore/src/formats/yml/tests/fixtures/presets/url-only-realistic.yml b/packages/bruno-filestore/src/formats/yml/tests/fixtures/presets/url-only-realistic.yml
new file mode 100644
index 000000000..7902bea4c
--- /dev/null
+++ b/packages/bruno-filestore/src/formats/yml/tests/fixtures/presets/url-only-realistic.yml
@@ -0,0 +1,25 @@
+opencollection: 1.0.0
+
+info:
+  name: md8
+config:
+  proxy:
+    inherit: true
+    config:
+      protocol: http
+      hostname: ""
+      port: ""
+      auth:
+        username: ""
+        password: ""
+      bypassProxy: ""
+bundled: false
+extensions:
+  bruno:
+    ignore:
+      - node_modules
+      - .git
+    presets:
+      request:
+        type: http
+        url: https://example.com/graphql
diff --git a/packages/bruno-filestore/src/formats/yml/tests/fixtures/presets/with-type-and-url.yml b/packages/bruno-filestore/src/formats/yml/tests/fixtures/presets/with-type-and-url.yml
new file mode 100644
index 000000000..2290b8c4b
--- /dev/null
+++ b/packages/bruno-filestore/src/formats/yml/tests/fixtures/presets/with-type-and-url.yml
@@ -0,0 +1,9 @@
+opencollection: 1.0.0
+info:
+  name: My Collection
+extensions:
+  bruno:
+    presets:
+      request:
+        type: graphql
+        url: https://example.com/graphql
diff --git a/packages/bruno-filestore/src/formats/yml/tests/parseCollection.spec.js b/packages/bruno-filestore/src/formats/yml/tests/parseCollection.spec.js
new file mode 100644
index 000000000..d210ef7e7
--- /dev/null
+++ b/packages/bruno-filestore/src/formats/yml/tests/parseCollection.spec.js
@@ -0,0 +1,63 @@
+import fs from 'node:fs';
+import path from 'node:path';
+import parseCollection from '../parseCollection';
+
+const loadFixture = (name) =>
+  fs.readFileSync(path.join(__dirname, 'fixtures', 'presets', `${name}.yml`), 'utf8');
+
+describe('yml parseCollection - presets', () => {
+  it('parses presets when request.type and request.url are present', () => {
+    const { brunoConfig } = parseCollection(loadFixture('with-type-and-url'));
+
+    expect(brunoConfig.presets).toEqual({
+      requestType: 'graphql',
+      requestUrl: 'https://example.com/graphql'
+    });
+  });
+
+  it('defaults requestType and requestUrl to empty strings (not arrays) when request fields are missing', () => {
+    const { brunoConfig } = parseCollection(loadFixture('empty-request'));
+
+    expect(brunoConfig.presets).toEqual({
+      requestType: '',
+      requestUrl: ''
+    });
+    expect(Array.isArray(brunoConfig.presets.requestType)).toBe(false);
+    expect(Array.isArray(brunoConfig.presets.requestUrl)).toBe(false);
+  });
+
+  it('does not set presets when the extension has no presets block', () => {
+    const { brunoConfig } = parseCollection(loadFixture('no-presets'));
+
+    expect(brunoConfig.presets).toBeUndefined();
+  });
+
+  it('does not set presets when presets exists but request key is absent', () => {
+    const { brunoConfig } = parseCollection(loadFixture('no-request-key'));
+
+    expect(brunoConfig.presets).toBeUndefined();
+  });
+
+  it('parses a realistic collection with only request.type set (no url) — defaults url to empty string', () => {
+    const { brunoConfig } = parseCollection(loadFixture('type-only-realistic'));
+
+    expect(brunoConfig.presets).toEqual({
+      requestType: 'graphql',
+      requestUrl: ''
+    });
+    expect(Array.isArray(brunoConfig.presets.requestUrl)).toBe(false);
+    expect(brunoConfig.ignore).toEqual(['node_modules', '.git']);
+  });
+
+  it('parses a realistic collection with request.type http and request.url set', () => {
+    const { brunoConfig } = parseCollection(loadFixture('url-only-realistic'));
+
+    expect(brunoConfig.presets).toEqual({
+      requestType: 'http',
+      requestUrl: 'https://example.com/graphql'
+    });
+    expect(Array.isArray(brunoConfig.presets.requestType)).toBe(false);
+    expect(Array.isArray(brunoConfig.presets.requestUrl)).toBe(false);
+    expect(brunoConfig.ignore).toEqual(['node_modules', '.git']);
+  });
+});
diff --git a/packages/bruno-filestore/src/types.ts b/packages/bruno-filestore/src/types.ts
index 41246cd50..d4575ac74 100644
--- a/packages/bruno-filestore/src/types.ts
+++ b/packages/bruno-filestore/src/types.ts
@@ -20,3 +20,10 @@ export interface WorkerTask {
 export interface Lane {
   maxSize: number;
 }
+
+export interface BrunoPresetsExtension {
+  request?: {
+    type?: string;
+    url?: string;
+  };
+}
diff --git a/tests/auth/auth-mode/effective-auth-mode.spec.ts b/tests/auth/auth-mode/effective-auth-mode.spec.ts
new file mode 100644
index 000000000..f993a6b44
--- /dev/null
+++ b/tests/auth/auth-mode/effective-auth-mode.spec.ts
@@ -0,0 +1,113 @@
+import { test, expect } from '../../../playwright';
+import { buildCommonLocators, closeAllCollections, createCollection, createFolder, selectAuthMode } from '../../utils/page';
+import { AUTH_MODE_LABELS } from '../../utils/constants';
+
+test.describe('Effective auth mode resolution', () => {
+  test.afterEach(async ({ page }) => {
+    await closeAllCollections(page);
+  });
+
+  test('Nested folder with Inherit should pick up its immediate parent folder, not a grandparent', async ({ page, createTmpDir }) => {
+    const collectionName = 'effective-auth-mode-collection';
+    const locators = buildCommonLocators(page);
+
+    await test.step('Create a collection', async () => {
+      await createCollection(page, collectionName, await createTmpDir());
+    });
+
+    await test.step('Create folder-1 inside the collection and set auth type for folder-1 as Bearer Token', async () => {
+      await createFolder(page, 'folder-1', collectionName, true);
+      await locators.sidebar.folder('folder-1').dblclick();
+      await locators.paneTabs.folderSettingsTab('auth').click();
+      await selectAuthMode(page, AUTH_MODE_LABELS.BEARER);
+      await page.getByRole('button', { name: 'Save' }).click();
+    });
+
+    await test.step('Create folder-2 inside folder-1 and set auth type for folder-2 as Basic Auth', async () => {
+      await createFolder(page, 'folder-2', 'folder-1', false);
+      await locators.sidebar.folder('folder-2').dblclick();
+      await locators.paneTabs.folderSettingsTab('auth').click();
+      await selectAuthMode(page, AUTH_MODE_LABELS.BASIC);
+      await page.getByRole('button', { name: 'Save' }).click();
+    });
+
+    await test.step('Create folder-3 inside folder-2 and set auth type for folder-3 as Inherit', async () => {
+      await createFolder(page, 'folder-3', 'folder-2', false);
+      await locators.sidebar.folder('folder-3').dblclick();
+      await locators.paneTabs.folderSettingsTab('auth').click();
+      await selectAuthMode(page, AUTH_MODE_LABELS.INHERIT);
+      await page.getByRole('button', { name: 'Save' }).click();
+    });
+
+    await test.step('Verify folder-3 should inherit auth from folder-2', async () => {
+      await expect(page.getByText('Auth inherited from folder-2:')).toBeVisible();
+      await expect(locators.auth.inheritedMode()).toHaveText(AUTH_MODE_LABELS.BASIC);
+    });
+  });
+
+  test('Child folder with Inherit should pick up parent folder set to No Auth (not fall through to collection)', async ({ page, createTmpDir }) => {
+    const collectionName = 'no-auth-inherit-collection';
+    const locators = buildCommonLocators(page);
+
+    await test.step('Create a collection', async () => {
+      await createCollection(page, collectionName, await createTmpDir());
+    });
+
+    await test.step('Set auth type for the collection as Basic Auth', async () => {
+      await locators.paneTabs.collectionSettingsTab('auth').click();
+      await selectAuthMode(page, AUTH_MODE_LABELS.BASIC);
+      await page.getByRole('button', { name: 'Save' }).click();
+    });
+
+    await test.step('Create folder-1 inside the collection and set auth type for folder-1 as No Auth', async () => {
+      await createFolder(page, 'folder-1', collectionName, true);
+      await locators.sidebar.folder('folder-1').dblclick();
+      await locators.paneTabs.folderSettingsTab('auth').click();
+      await selectAuthMode(page, AUTH_MODE_LABELS.NONE);
+      await page.getByRole('button', { name: 'Save' }).click();
+    });
+
+    await test.step('Create folder-2 inside folder-1 and set auth type for folder-2 as Inherit', async () => {
+      await createFolder(page, 'folder-2', 'folder-1', false);
+      await locators.sidebar.folder('folder-2').dblclick();
+      await locators.paneTabs.folderSettingsTab('auth').click();
+      await selectAuthMode(page, AUTH_MODE_LABELS.INHERIT);
+      await page.getByRole('button', { name: 'Save' }).click();
+    });
+
+    await test.step('Verify folder-2 should inherit No Auth from folder-1 (not fall through to the collection)', async () => {
+      await expect(page.getByText('Auth inherited from folder-1:')).toBeVisible();
+      await expect(locators.auth.inheritedMode()).toHaveText(AUTH_MODE_LABELS.NONE);
+    });
+  });
+
+  test('Auth dropdown shows No Auth as the selected option after picking it', async ({ page, createTmpDir }) => {
+    const collectionName = 'no-auth-dropdown-collection';
+    const locators = buildCommonLocators(page);
+
+    await test.step('Create a collection', async () => {
+      await createCollection(page, collectionName, await createTmpDir());
+    });
+
+    await test.step('Create folder-1 inside the collection and set auth type for folder-1 as No Auth', async () => {
+      await createFolder(page, 'folder-1', collectionName, true);
+      await locators.sidebar.folder('folder-1').dblclick();
+      await locators.paneTabs.folderSettingsTab('auth').click();
+      await selectAuthMode(page, AUTH_MODE_LABELS.NONE);
+      await page.getByRole('button', { name: 'Save' }).click();
+    });
+
+    await test.step('Verify the auth mode selector shows No Auth as the current mode', async () => {
+      await expect(locators.auth.modeSelector()).toContainText(AUTH_MODE_LABELS.NONE);
+    });
+
+    await test.step('Reopen the dropdown and verify No Auth is highlighted as the selected option', async () => {
+      await page.locator('.auth-mode-label').first().click();
+      // Bruno marks the selected dropdown item with the `dropdown-item-active` class.
+      const noAuthItem = locators.auth.dropdownItem('none');
+      await expect(noAuthItem).toBeVisible();
+      await expect(noAuthItem).toHaveClass(/dropdown-item-active/);
+      await expect(noAuthItem).toContainText(AUTH_MODE_LABELS.NONE);
+    });
+  });
+});
diff --git a/tests/auth/auth-mode/folder-no-auth-stops-inheritance.spec.ts b/tests/auth/auth-mode/folder-no-auth-stops-inheritance.spec.ts
new file mode 100644
index 000000000..3d4d5abfa
--- /dev/null
+++ b/tests/auth/auth-mode/folder-no-auth-stops-inheritance.spec.ts
@@ -0,0 +1,95 @@
+import { test, expect } from '../../../playwright';
+import {
+  buildCommonLocators,
+  closeAllCollections,
+  createCollection,
+  createFolder,
+  createRequest,
+  openRequest,
+  saveRequest,
+  selectAuthMode,
+  selectRequestPaneTab,
+  selectResponsePaneTab,
+  sendRequest,
+  typeIntoField
+} from '../../utils/page';
+import { AUTH_MODE_LABELS } from '../../utils/constants';
+
+test.afterEach(async ({ page }) => {
+  await closeAllCollections(page);
+});
+
+test('Request inherits No Auth from the folder — collection Bearer Token is overridden', async ({ page, createTmpDir }) => {
+  const collectionName = 'folder-no-auth-inheritance';
+  const locators = buildCommonLocators(page);
+
+  await test.step('Create a collection', async () => {
+    await createCollection(page, collectionName, await createTmpDir());
+  });
+
+  await test.step('Set auth type for the collection as Bearer Token', async () => {
+    await locators.paneTabs.collectionSettingsTab('auth').click();
+    await selectAuthMode(page, AUTH_MODE_LABELS.BEARER);
+    await typeIntoField(page, 'Token', 'your_secret_token');
+    await page.getByRole('button', { name: 'Save' }).click();
+  });
+
+  await test.step('Create folder-1 inside the collection and set auth type for folder-1 as No Auth', async () => {
+    await createFolder(page, 'folder-1', collectionName, true);
+    await locators.sidebar.folder('folder-1').dblclick();
+    await locators.paneTabs.folderSettingsTab('auth').click();
+    await selectAuthMode(page, AUTH_MODE_LABELS.NONE);
+    await page.getByRole('button', { name: 'Save' }).click();
+  });
+
+  await test.step('Create an HTTP request inside folder-1 and set auth type for the request as Inherit', async () => {
+    const requestName = 'http-request-1';
+    await createRequest(page, requestName, 'folder-1', {
+      inFolder: true,
+      requestType: 'http',
+      method: 'GET',
+      url: 'https://testbench-sanity.usebruno.com/api/auth/bearer/protected'
+    });
+    await openRequest(page, collectionName, requestName);
+    await selectRequestPaneTab(page, 'Auth');
+    await selectAuthMode(page, AUTH_MODE_LABELS.INHERIT);
+    await saveRequest(page);
+  });
+
+  await test.step('Send the request and open the Timeline tab', async () => {
+    await sendRequest(page);
+    await selectResponsePaneTab(page, 'Timeline');
+  });
+
+  await test.step('Verify the response status code is 401 Unauthorized', async () => {
+    await expect(locators.response.statusCode()).toContainText('401');
+  });
+
+  await test.step('Open the latest timeline entry and verify no Authorization header was sent', async () => {
+    const timelineItem = locators.timeline.lastItem();
+    await locators.timeline.itemHeader(timelineItem).click();
+    await expect(timelineItem).toContainText('No Headers found');
+    await locators.timeline.clearButton().click();
+  });
+
+  await test.step('Change folder-1 auth type to Bearer Token with the expected token', async () => {
+    await locators.sidebar.folder('folder-1').dblclick();
+    await locators.paneTabs.folderSettingsTab('auth').click();
+    await selectAuthMode(page, AUTH_MODE_LABELS.BEARER);
+    await typeIntoField(page, 'Token', 'your_secret_token');
+    await page.getByRole('button', { name: 'Save' }).click();
+  });
+
+  await test.step('Send the request again and verify the response status code is 200', async () => {
+    await openRequest(page, collectionName, 'http-request-1');
+    await sendRequest(page);
+    await selectResponsePaneTab(page, 'Timeline');
+    await expect(locators.response.statusCode()).toContainText('200');
+  });
+
+  await test.step('Open the latest timeline entry and verify the Bearer token was sent', async () => {
+    const timelineItem = locators.timeline.lastItem();
+    await locators.timeline.itemHeader(timelineItem).click();
+    await expect(timelineItem).toContainText('Bearer your_secret_token');
+  });
+});
diff --git a/tests/auth/auth-mode/modified-indicator-for-auth.spec.ts b/tests/auth/auth-mode/modified-indicator-for-auth.spec.ts
new file mode 100644
index 000000000..6ed67327b
--- /dev/null
+++ b/tests/auth/auth-mode/modified-indicator-for-auth.spec.ts
@@ -0,0 +1,147 @@
+import { test, expect } from '../../../playwright';
+import {
+  buildCommonLocators,
+  closeAllCollections,
+  createCollection,
+  createFolder,
+  createRequest,
+  openRequest,
+  saveRequest,
+  selectAuthMode,
+  selectRequestPaneTab
+} from '../../utils/page';
+import { AUTH_MODE_LABELS } from '../../utils/constants';
+
+test.describe('Modified indicator for auth tab', () => {
+  test.afterEach(async ({ page }) => {
+    await closeAllCollections(page);
+  });
+
+  test('Folder Auth tab indicator dot reflects effective auth (shows on inherit, hides on No Auth)', async ({ page, createTmpDir }) => {
+    const collectionName = 'modified-indicator-collection';
+    const locators = buildCommonLocators(page);
+
+    await test.step('Create a collection', async () => {
+      await createCollection(page, collectionName, await createTmpDir());
+    });
+
+    await test.step('Set auth type for the collection as Bearer Token', async () => {
+      await locators.paneTabs.collectionSettingsTab('auth').click();
+      await selectAuthMode(page, AUTH_MODE_LABELS.BEARER);
+      await page.getByRole('button', { name: 'Save' }).click();
+    });
+
+    await test.step('Verify the collection auth mode shows Bearer Token', async () => {
+      await expect(locators.auth.modeSelector()).toContainText(AUTH_MODE_LABELS.BEARER);
+    });
+
+    await test.step('Create folder-1 inside the collection and set auth type for folder-1 as Inherit', async () => {
+      await createFolder(page, 'folder-1', collectionName, true);
+      await locators.sidebar.folder('folder-1').dblclick();
+      await locators.paneTabs.folderSettingsTab('auth').click();
+      await selectAuthMode(page, AUTH_MODE_LABELS.INHERIT);
+      await page.getByRole('button', { name: 'Save' }).click();
+    });
+
+    await test.step('Verify folder-1 inherits Bearer Token from the collection', async () => {
+      await expect(page.getByText('Auth inherited from Collection:')).toBeVisible();
+      await expect(locators.auth.inheritedMode()).toHaveText(AUTH_MODE_LABELS.BEARER);
+    });
+
+    await test.step('Verify the Auth tab shows the status dot for folder-1 (inheriting Bearer Token)', async () => {
+      await expect(
+        locators.paneTabs.folderSettingsTab('auth').getByTestId('status-dot-auth')
+      ).toBeVisible();
+    });
+
+    await test.step('Change folder-1 auth type to No Auth', async () => {
+      await selectAuthMode(page, AUTH_MODE_LABELS.NONE);
+      await page.getByRole('button', { name: 'Save' }).click();
+    });
+
+    await test.step('Verify the Auth tab does NOT show the status dot for folder-1 (No Auth)', async () => {
+      await expect(
+        locators.paneTabs.folderSettingsTab('auth').getByTestId('status-dot-auth')
+      ).toBeHidden();
+    });
+  });
+
+  const requestProtocolCases = [
+    { protocol: 'HTTP', requestType: 'http' as const, requestName: 'http-request-1', url: 'https://example.com/api' },
+    { protocol: 'gRPC', requestType: 'grpc' as const, requestName: 'grpc-request-1', url: 'grpc://localhost:50051' },
+    { protocol: 'WebSocket', requestType: 'ws' as const, requestName: 'ws-request-1', url: 'ws://localhost:8080' },
+    { protocol: 'GraphQL', requestType: 'graphql' as const, requestName: 'graphql-request-1', url: 'https://example.com/graphql' }
+  ];
+
+  for (const { protocol, requestType, requestName, url } of requestProtocolCases) {
+    test(`${protocol} request inheriting auth from its folder shows the modified indicator dot`, async ({ page, createTmpDir }) => {
+      const collectionName = `${protocol.toLowerCase()}-inherit-indicator-collection`;
+      const locators = buildCommonLocators(page);
+
+      await test.step('Create a collection', async () => {
+        await createCollection(page, collectionName, await createTmpDir());
+      });
+
+      await test.step('Set auth type for the collection as Bearer Token', async () => {
+        await locators.paneTabs.collectionSettingsTab('auth').click();
+        await selectAuthMode(page, AUTH_MODE_LABELS.BEARER);
+        await page.getByRole('button', { name: 'Save' }).click();
+      });
+
+      await test.step('Create folder-1 inside the collection and set auth type for folder-1 as Basic Auth', async () => {
+        await createFolder(page, 'folder-1', collectionName, true);
+        await locators.sidebar.folder('folder-1').dblclick();
+        await locators.paneTabs.folderSettingsTab('auth').click();
+        await selectAuthMode(page, AUTH_MODE_LABELS.BASIC);
+        await page.getByRole('button', { name: 'Save' }).click();
+      });
+
+      await test.step(`Create a ${protocol} request inside folder-1 and set auth type for the request as Inherit`, async () => {
+        await createRequest(page, requestName, 'folder-1', { inFolder: true, requestType, url });
+        await openRequest(page, collectionName, requestName);
+        await selectRequestPaneTab(page, 'Auth');
+        await selectAuthMode(page, AUTH_MODE_LABELS.INHERIT);
+        await saveRequest(page);
+      });
+
+      await test.step(`Verify the ${protocol} request Auth tab shows the status dot (inheriting Basic Auth from folder-1)`, async () => {
+        await expect(
+          locators.paneTabs.responsiveTab('auth').getByTestId('status-dot-auth')
+        ).toBeVisible();
+      });
+
+      await test.step(`Change the ${protocol} request auth type to No Auth and verify the dot disappears`, async () => {
+        await selectAuthMode(page, AUTH_MODE_LABELS.NONE);
+        await saveRequest(page);
+        await expect(
+          locators.paneTabs.responsiveTab('auth').getByTestId('status-dot-auth')
+        ).toBeHidden();
+      });
+
+      await test.step(`Change the ${protocol} request auth type to Basic Auth and verify the dot appears`, async () => {
+        await selectAuthMode(page, AUTH_MODE_LABELS.BASIC);
+        await saveRequest(page);
+        await expect(
+          locators.paneTabs.responsiveTab('auth').getByTestId('status-dot-auth')
+        ).toBeVisible();
+      });
+
+      await test.step('Change folder-1 auth type to No Auth', async () => {
+        await locators.sidebar.folder('folder-1').dblclick();
+        await locators.paneTabs.folderSettingsTab('auth').click();
+        await selectAuthMode(page, AUTH_MODE_LABELS.NONE);
+        await page.getByRole('button', { name: 'Save' }).click();
+      });
+
+      await test.step(`Set the ${protocol} request auth back to Inherit and verify the dot is hidden (folder is No Auth)`, async () => {
+        await openRequest(page, collectionName, requestName);
+        await selectRequestPaneTab(page, 'Auth');
+        await selectAuthMode(page, AUTH_MODE_LABELS.INHERIT);
+        await saveRequest(page);
+        await expect(
+          locators.paneTabs.responsiveTab('auth').getByTestId('status-dot-auth')
+        ).toBeHidden();
+      });
+    });
+  }
+});
diff --git a/tests/collection/presets-indicator.spec.ts b/tests/collection/presets-indicator.spec.ts
new file mode 100644
index 000000000..d6ef97a24
--- /dev/null
+++ b/tests/collection/presets-indicator.spec.ts
@@ -0,0 +1,70 @@
+import type { Locator } from '@playwright/test';
+import { test, expect } from '../../playwright';
+import { buildCommonLocators, closeAllCollections, createCollection } from '../utils/page';
+
+test.describe('Presets status dot in collection settings', () => {
+  test.afterEach(async ({ page }) => {
+    await closeAllCollections(page);
+  });
+
+  test('Presets dot is hidden on a fresh collection and stays visible once a preset has been saved (even at defaults)', async ({
+    page,
+    createTmpDir
+  }) => {
+    const collectionName = 'test-presets-indicator';
+    const locators = buildCommonLocators(page);
+    let presetsTab: Locator;
+
+    await test.step('Create a fresh collection (opens collection settings tab)', async () => {
+      await createCollection(page, collectionName, await createTmpDir());
+    });
+
+    await test.step('Open the Presets sub-tab', async () => {
+      presetsTab = locators.paneTabs.collectionSettingsTab('presets');
+      // visibility of the Presets sub-tab implies the collection settings tab is open
+      await expect(presetsTab).toBeVisible();
+      await presetsTab.click();
+    });
+
+    await test.step('Verify default state: HTTP selected and request URL is empty', async () => {
+      await expect(locators.presets.requestType('http')).toBeChecked();
+      await expect(locators.presets.requestType('graphql')).not.toBeChecked();
+      await expect(locators.presets.requestType('grpc')).not.toBeChecked();
+      await expect(locators.presets.requestType('ws')).not.toBeChecked();
+      await expect(locators.presets.requestUrl()).toHaveValue('');
+    });
+
+    await test.step('Verify Presets dot is NOT visible when HTTP is selected and URL is empty', async () => {
+      await expect(presetsTab.getByTestId('status-dot')).toBeHidden();
+    });
+
+    await test.step('Select gRPC request type and save', async () => {
+      await locators.presets.requestType('grpc').check();
+      await locators.presets.save().click();
+    });
+
+    await test.step('Verify Presets dot appears when a non-default request type is selected', async () => {
+      await expect(presetsTab.getByTestId('status-dot')).toBeVisible();
+    });
+
+    await test.step('Switch back to HTTP and set a request URL, then save', async () => {
+      await locators.presets.requestType('http').check();
+      await locators.presets.requestUrl().fill('https://example.com');
+      await locators.presets.save().click();
+    });
+
+    await test.step('Verify Presets dot remains visible when request URL is set', async () => {
+      await expect(presetsTab.getByTestId('status-dot')).toBeVisible();
+    });
+
+    await test.step('Clear the request URL with HTTP selected, then save (returns to default values)', async () => {
+      await locators.presets.requestUrl().fill('');
+      await expect(locators.presets.requestType('http')).toBeChecked();
+      await locators.presets.save().click();
+    });
+
+    await test.step('Verify Presets dot is hidden after returning to defaults', async () => {
+      await expect(presetsTab.getByTestId('status-dot')).not.toBeVisible({ timeout: 5000 });
+    });
+  });
+});
diff --git a/tests/utils/constants/auth.ts b/tests/utils/constants/auth.ts
new file mode 100644
index 000000000..9d5f9a437
--- /dev/null
+++ b/tests/utils/constants/auth.ts
@@ -0,0 +1,13 @@
+export const AUTH_MODE_LABELS = {
+  AWSV4: 'AWS Sig v4',
+  BASIC: 'Basic Auth',
+  BEARER: 'Bearer Token',
+  DIGEST: 'Digest Auth',
+  NTLM: 'NTLM Auth',
+  OAUTH1: 'OAuth 1.0',
+  OAUTH2: 'OAuth 2.0',
+  WSSE: 'WSSE Auth',
+  APIKEY: 'API Key',
+  INHERIT: 'Inherit',
+  NONE: 'No Auth'
+} as const;
diff --git a/tests/utils/constants/index.ts b/tests/utils/constants/index.ts
new file mode 100644
index 000000000..269586ee8
--- /dev/null
+++ b/tests/utils/constants/index.ts
@@ -0,0 +1 @@
+export * from './auth';
diff --git a/tests/utils/page/locators.ts b/tests/utils/page/locators.ts
index efd432a05..ca88e2fd1 100644
--- a/tests/utils/page/locators.ts
+++ b/tests/utils/page/locators.ts
@@ -97,7 +97,17 @@ export const buildCommonLocators = (page: Page) => ({
     },
     oauth2: {
       grantTypeDropdown: () => page.getByTestId('grant-type-dropdown')
-    }
+    },
+    modeSelector: () => page.getByTestId('auth-mode-selector'),
+    modeLabel: () => page.getByTestId('auth-mode-label'),
+    inheritedMode: () => page.getByTestId('inherited-auth-mode'),
+    dropdownItem: (id: string) => page.getByTestId(`auth-mode-dropdown-${id}`)
+  },
+  presets: {
+    requestType: (type: 'http' | 'graphql' | 'grpc' | 'ws') =>
+      page.getByTestId(`presets-request-type-${type}`),
+    requestUrl: () => page.getByTestId('presets-request-url'),
+    save: () => page.getByTestId('presets-save-btn')
   },
   tags: {
     input: () => page.getByTestId('tag-input').getByRole('textbox'),
@@ -119,6 +129,12 @@ export const buildCommonLocators = (page: Page) => ({
     codeLine: () => page.locator('.response-pane .editor-container .CodeMirror-line'),
     jsonTreeLine: () => page.locator('.response-pane .object-content')
   },
+  timeline: {
+    items: () => page.locator('.timeline-item'),
+    lastItem: () => page.locator('.timeline-item').last(),
+    itemHeader: (item: Locator) => item.locator('.oauth-request-item-header'),
+    clearButton: () => page.getByRole('button', { name: 'Clear Timeline' })
+  },
   plusMenu: {
     button: () => page.getByTestId('collections-header-add-menu'),
     createCollection: () => page.locator('.tippy-box .dropdown-item').filter({ hasText: 'Create collection' }),