diff --git a/apps/web/src/vault/individual-vault/vault-filter/services/vault-filter.service.ts b/apps/web/src/vault/individual-vault/vault-filter/services/vault-filter.service.ts
index eab891b04b..27e3ab918d 100644
--- a/apps/web/src/vault/individual-vault/vault-filter/services/vault-filter.service.ts
+++ b/apps/web/src/vault/individual-vault/vault-filter/services/vault-filter.service.ts
@@ -215,15 +215,16 @@ export class VaultFilterService implements VaultFilterServiceAbstraction {
     storedFolders: FolderView[],
     org?: Organization
   ): Promise<FolderView[]> {
-    if (org?.id == null) {
+    // If no org or "My Vault" is selected, show all folders
+    if (org?.id == null || org?.id == "MyVault") {
       return storedFolders;
     }
+
+    // Otherwise, show only folders that have ciphers from the selected org and the "no folder" folder
     const ciphers = await this.cipherService.getAllDecrypted();
     const orgCiphers = ciphers.filter((c) => c.organizationId == org?.id);
     return storedFolders.filter(
-      (f) =>
-        orgCiphers.filter((oc) => oc.folderId == f.id).length > 0 ||
-        ciphers.filter((c) => c.folderId == f.id).length < 1
+      (f) => orgCiphers.some((oc) => oc.folderId == f.id) || f.id == null
     );
   }
 
diff --git a/libs/angular/src/vault/vault-filter/services/vault-filter.service.ts b/libs/angular/src/vault/vault-filter/services/vault-filter.service.ts
index a56758a8bd..ced1b1b7e9 100644
--- a/libs/angular/src/vault/vault-filter/services/vault-filter.service.ts
+++ b/libs/angular/src/vault/vault-filter/services/vault-filter.service.ts
@@ -55,17 +55,19 @@ export class VaultFilterService implements DeprecatedVaultFilterServiceAbstracti
   buildNestedFolders(organizationId?: string): Observable<DynamicTreeNode<FolderView>> {
     const transformation = async (storedFolders: FolderView[]) => {
       let folders: FolderView[];
-      if (organizationId != null) {
+
+      // If no org or "My Vault" is selected, show all folders
+      if (organizationId == null || organizationId == "MyVault") {
+        folders = storedFolders;
+      } else {
+        // Otherwise, show only folders that have ciphers from the selected org and the "no folder" folder
         const ciphers = await this.cipherService.getAllDecrypted();
         const orgCiphers = ciphers.filter((c) => c.organizationId == organizationId);
         folders = storedFolders.filter(
-          (f) =>
-            orgCiphers.filter((oc) => oc.folderId == f.id).length > 0 ||
-            ciphers.filter((c) => c.folderId == f.id).length < 1
+          (f) => orgCiphers.some((oc) => oc.folderId == f.id) || f.id == null
         );
-      } else {
-        folders = storedFolders;
       }
+
       const nestedFolders = await this.getAllFoldersNested(folders);
       return new DynamicTreeNode<FolderView>({
         fullList: folders,