diff --git a/projects/aca-content/folder-rules/src/rule-set-picker/rule-set-picker.smart-component.html b/projects/aca-content/folder-rules/src/rule-set-picker/rule-set-picker.smart-component.html
index 0537b2dcf..1512fab24 100644
--- a/projects/aca-content/folder-rules/src/rule-set-picker/rule-set-picker.smart-component.html
+++ b/projects/aca-content/folder-rules/src/rule-set-picker/rule-set-picker.smart-component.html
@@ -10,11 +10,12 @@
 <mat-dialog-content class="aca-rule-set-picker__content">
   <adf-content-node-selector-panel
     class="aca-rule-set-picker__content__node-selector"
-    [currentFolderId]="defaultNodeId"
     (select)="onNodeSelect($event)"
     (folderLoaded)="setFolderLoading(false)"
     (navigationChange)="setFolderLoading(true)"
-    (siteChange)="setFolderLoading(true)" />
+    (siteChange)="setFolderLoading(true)"
+    [currentFolderId]="defaultNodeId"
+    [rowFilter]="rowFilter" />
 
   <div class="aca-rule-set-picker__content__rule-list" [ngClass]="{ 'aca-justify': rulesLoading$ | async }">
     <ng-container *ngIf="rulesLoading$ | async; else rulesLoaded">
diff --git a/projects/aca-content/folder-rules/src/rule-set-picker/rule-set-picker.smart-component.spec.ts b/projects/aca-content/folder-rules/src/rule-set-picker/rule-set-picker.smart-component.spec.ts
index cef745326..9732b60bc 100644
--- a/projects/aca-content/folder-rules/src/rule-set-picker/rule-set-picker.smart-component.spec.ts
+++ b/projects/aca-content/folder-rules/src/rule-set-picker/rule-set-picker.smart-component.spec.ts
@@ -35,6 +35,7 @@ import {
   AlfrescoApiServiceMock,
   ContentNodeSelectorPanelComponent,
   NodeEntryEvent,
+  ShareDataRow,
   SitesService
 } from '@alfresco/adf-content-services';
 import { provideRouter } from '@angular/router';
@@ -48,6 +49,7 @@ import { RuleSet } from '../model/rule-set.model';
 })
 class MockContentNodeSelectorPanelComponent {
   @Input() currentFolderId: string;
+  @Input() rowFilter: (row: ShareDataRow) => boolean;
   @Output() folderLoaded = new EventEmitter<void>();
   @Output() navigationChange = new EventEmitter<NodeEntryEvent>();
   @Output() siteChange = new EventEmitter<string>();
@@ -126,6 +128,18 @@ describe('RuleSetPickerSmartComponent', () => {
     });
   });
 
+  describe('rowFilter', () => {
+    it('should keep folder rows', () => {
+      const row = { node: { entry: { isFolder: true } } } as ShareDataRow;
+      expect(component.rowFilter(row)).toBe(true);
+    });
+
+    it('should filter out file rows', () => {
+      const row = { node: { entry: { isFolder: false } } } as ShareDataRow;
+      expect(component.rowFilter(row)).toBe(false);
+    });
+  });
+
   it('should load the rule sets of a node once it has been selected', () => {
     expect(loadRuleSetsSpy).not.toHaveBeenCalled();
     component.onNodeSelect([folderToLinkMock]);
diff --git a/projects/aca-content/folder-rules/src/rule-set-picker/rule-set-picker.smart-component.ts b/projects/aca-content/folder-rules/src/rule-set-picker/rule-set-picker.smart-component.ts
index b0b28e4ca..c131cf5f3 100644
--- a/projects/aca-content/folder-rules/src/rule-set-picker/rule-set-picker.smart-component.ts
+++ b/projects/aca-content/folder-rules/src/rule-set-picker/rule-set-picker.smart-component.ts
@@ -37,7 +37,7 @@ import { MatIconModule } from '@angular/material/icon';
 import { MatProgressSpinnerModule } from '@angular/material/progress-spinner';
 import { RuleListItemUiComponent } from '../rule-list/rule-list-item/rule-list-item.ui-component';
 import { takeUntilDestroyed } from '@angular/core/rxjs-interop';
-import { ContentNodeSelectorPanelComponent } from '@alfresco/adf-content-services';
+import { ContentNodeSelectorPanelComponent, ShareDataRow } from '@alfresco/adf-content-services';
 
 export interface RuleSetPickerOptions {
   nodeId: string;
@@ -104,6 +104,10 @@ export class RuleSetPickerSmartComponent implements OnInit {
     }
   }
 
+  rowFilter(row: ShareDataRow): boolean {
+    return row.node.entry.isFolder;
+  }
+
   setFolderLoading(isLoading: boolean) {
     this.folderLoading$.next(isLoading);
   }