diff --git a/projects/aca-folder-rules/assets/i18n/en.json b/projects/aca-folder-rules/assets/i18n/en.json
index e78462cf9..09f8f2f6d 100644
--- a/projects/aca-folder-rules/assets/i18n/en.json
+++ b/projects/aca-folder-rules/assets/i18n/en.json
@@ -121,7 +121,8 @@
       "LOAD_MORE_RULE_SETS": "Load rules from other folders",
       "LOAD_MORE_RULES": "Load more rules",
       "LOADING_RULES": "Loading rules",
-      "INHERITED_RULES_WILL_BE_RUN_FIRST": "Inherited rules will be run first"
+      "INHERITED_RULES_WILL_BE_RUN_FIRST": "Inherited rules will be run first",
+      "ALL_LINKED_RULES_ARE_DISABLED": "All rules linked from this rule set are disabled"
     },
     "LINK_RULES_DIALOG": {
       "TITLE": "Select a folder to link rules from",
diff --git a/projects/aca-folder-rules/src/lib/manage-rules/manage-rules.smart-component.html b/projects/aca-folder-rules/src/lib/manage-rules/manage-rules.smart-component.html
index d28781c26..d1b5b133a 100644
--- a/projects/aca-folder-rules/src/lib/manage-rules/manage-rules.smart-component.html
+++ b/projects/aca-folder-rules/src/lib/manage-rules/manage-rules.smart-component.html
@@ -57,7 +57,7 @@
           </adf-toolbar>
           <mat-divider></mat-divider>
 
-          <div class="aca-manage-rules__container" *ngIf="(mainRuleSet$ | async) || isInheritedRuleSetsNotEmpty(inheritedRuleSets$ | async); else emptyContent">
+          <div class="aca-manage-rules__container" *ngIf="isMainRuleSetNotEmpty(mainRuleSet$ | async) || isInheritedRuleSetsNotEmpty(inheritedRuleSets$ | async); else emptyContent">
             <aca-rule-list
               [mainRuleSet]="mainRuleSet$ | async"
               [folderId]="nodeId"
diff --git a/projects/aca-folder-rules/src/lib/manage-rules/manage-rules.smart-component.spec.ts b/projects/aca-folder-rules/src/lib/manage-rules/manage-rules.smart-component.spec.ts
index b47710c69..ebc87905e 100644
--- a/projects/aca-folder-rules/src/lib/manage-rules/manage-rules.smart-component.spec.ts
+++ b/projects/aca-folder-rules/src/lib/manage-rules/manage-rules.smart-component.spec.ts
@@ -30,7 +30,13 @@ import { CoreTestingModule } from '@alfresco/adf-core';
 import { FolderRulesService } from '../services/folder-rules.service';
 import { ActivatedRoute } from '@angular/router';
 import { of } from 'rxjs';
-import { inheritedRuleSetMock, ownedRuleSetMock, ruleSetsWithEmptyRulesMock, ruleSetWithLinkMock } from '../mock/rule-sets.mock';
+import {
+  inheritedRuleSetMock,
+  inheritedRuleSetWithEmptyRulesMock,
+  inheritedRuleSetWithOnlyDisabledRulesMock,
+  ownedRuleSetMock,
+  ruleSetWithLinkMock
+} from '../mock/rule-sets.mock';
 import { By } from '@angular/platform-browser';
 import { owningFolderIdMock, owningFolderMock } from '../mock/node.mock';
 import { MatDialog } from '@angular/material/dialog';
@@ -97,10 +103,30 @@ describe('ManageRulesSmartComponent', () => {
     expect(deleteRuleBtn).toBeTruthy('no delete rule button');
   });
 
-  it('should only show adf-empty-content if node has no rules defined yet', () => {
+  it('should show adf-empty-content if node has no rules defined yet', () => {
     folderRuleSetsService.folderInfo$ = of(owningFolderMock);
     folderRuleSetsService.mainRuleSet$ = of(null);
-    folderRuleSetsService.inheritedRuleSets$ = of(ruleSetsWithEmptyRulesMock);
+    folderRuleSetsService.inheritedRuleSets$ = of([inheritedRuleSetWithEmptyRulesMock]);
+    folderRuleSetsService.isLoading$ = of(false);
+    actionsService.loading$ = of(false);
+
+    fixture.detectChanges();
+
+    expect(component).toBeTruthy();
+
+    const adfEmptyContent = debugElement.query(By.css('adf-empty-content'));
+    const ruleSets = debugElement.queryAll(By.css(`[data-automation-id="rule-set-list-item"]`));
+    const ruleDetails = debugElement.query(By.css('aca-rule-details'));
+
+    expect(adfEmptyContent).toBeTruthy();
+    expect(ruleSets.length).toBe(0);
+    expect(ruleDetails).toBeFalsy();
+  });
+
+  it('should show adf-empty-content if there are only inherited disabled rules', () => {
+    folderRuleSetsService.folderInfo$ = of(owningFolderMock);
+    folderRuleSetsService.mainRuleSet$ = of(null);
+    folderRuleSetsService.inheritedRuleSets$ = of([inheritedRuleSetWithOnlyDisabledRulesMock]);
     folderRuleSetsService.isLoading$ = of(false);
     actionsService.loading$ = of(false);
 
diff --git a/projects/aca-folder-rules/src/lib/manage-rules/manage-rules.smart-component.ts b/projects/aca-folder-rules/src/lib/manage-rules/manage-rules.smart-component.ts
index b5ad47efd..4bb70ffd8 100644
--- a/projects/aca-folder-rules/src/lib/manage-rules/manage-rules.smart-component.ts
+++ b/projects/aca-folder-rules/src/lib/manage-rules/manage-rules.smart-component.ts
@@ -242,7 +242,11 @@ export class ManageRulesSmartComponent implements OnInit, OnDestroy {
       });
   }
 
+  isMainRuleSetNotEmpty(mainRuleSet: RuleSet): boolean {
+    return !!mainRuleSet;
+  }
+
   isInheritedRuleSetsNotEmpty(inheritedRuleSets: RuleSet[]): boolean {
-    return inheritedRuleSets.filter((ruleSet) => ruleSet.rules.length > 0).length > 0;
+    return inheritedRuleSets.some((ruleSet) => ruleSet.rules.some((rule: Rule) => rule.isEnabled));
   }
 }
diff --git a/projects/aca-folder-rules/src/lib/mock/rule-sets.mock.ts b/projects/aca-folder-rules/src/lib/mock/rule-sets.mock.ts
index 9f3bbc959..e5acb3336 100644
--- a/projects/aca-folder-rules/src/lib/mock/rule-sets.mock.ts
+++ b/projects/aca-folder-rules/src/lib/mock/rule-sets.mock.ts
@@ -26,7 +26,7 @@
 import { RuleSet } from '../model/rule-set.model';
 import { otherFolderIdMock, otherFolderMock, owningFolderIdMock, owningFolderMock } from './node.mock';
 import { Rule } from '../model/rule.model';
-import { inheritedRulesMock, linkedRulesMock, ownedRulesMock } from './rules.mock';
+import { inheritedRulesMock, linkedRulesMock, ownedRulesMock, ruleMock } from './rules.mock';
 
 export const getRuleSetsResponseMock = {
   list: {
@@ -125,6 +125,17 @@ export const inheritedRuleSetWithEmptyRulesMock: RuleSet = {
   loadingRules: false
 };
 
-export const ruleSetsMock: RuleSet[] = [inheritedRuleSetMock, ownedRuleSetMock, ruleSetWithLinkMock];
+export const inheritedRuleSetWithOnlyDisabledRulesMock: RuleSet = {
+  id: 'inherited-rule-set',
+  isLinkedTo: false,
+  owningFolder: otherFolderMock,
+  linkedToBy: [],
+  rules: [
+    { ...ruleMock('rule1'), isEnabled: false },
+    { ...ruleMock('rule2'), isEnabled: false }
+  ],
+  hasMoreRules: false,
+  loadingRules: false
+};
 
-export const ruleSetsWithEmptyRulesMock: RuleSet[] = [inheritedRuleSetWithEmptyRulesMock];
+export const ruleSetsMock: RuleSet[] = [inheritedRuleSetMock, ownedRuleSetMock, ruleSetWithLinkMock];
diff --git a/projects/aca-folder-rules/src/lib/rule-list/rule-list/rule-list.ui-component.html b/projects/aca-folder-rules/src/lib/rule-list/rule-list/rule-list.ui-component.html
index 0bcdb0bf0..53808d20a 100644
--- a/projects/aca-folder-rules/src/lib/rule-list/rule-list/rule-list.ui-component.html
+++ b/projects/aca-folder-rules/src/lib/rule-list/rule-list/rule-list.ui-component.html
@@ -35,7 +35,7 @@
 </div>
 
 <div
-  *ngIf="mainRuleSetGroupingItems.length > 0"
+  *ngIf="mainRuleSetGroupingItems.length > 0 || isMainRuleSetLinked"
   class="aca-rule-list__item"
   data-automation-id="rule-list-item"
   [ngClass]="{ expanded: mainRuleSetExpanded }">
@@ -66,14 +66,25 @@
     </mat-icon>
   </div>
 
-  <aca-rule-list-grouping
-    *ngIf="mainRuleSetExpanded"
-    [items]="mainRuleSetGroupingItems"
-    [selectedRule]="selectedRule"
-    [showEnabledToggles]="isMainRuleSetOwned"
-    (selectRule)="onSelectRule($event)"
-    (ruleEnabledChanged)="onRuleEnabledChanged($event)"
-    (loadMoreRules)="onLoadMoreRules($event)">
-  </aca-rule-list-grouping>
+  <ng-container *ngIf="mainRuleSetExpanded">
+    <aca-rule-list-grouping
+      *ngIf="mainRuleSetGroupingItems.length > 0; else emptyLinkedRuleSet"
+      [items]="mainRuleSetGroupingItems"
+      [selectedRule]="selectedRule"
+      [showEnabledToggles]="isMainRuleSetOwned"
+      (selectRule)="onSelectRule($event)"
+      (ruleEnabledChanged)="onRuleEnabledChanged($event)"
+      (loadMoreRules)="onLoadMoreRules($event)">
+    </aca-rule-list-grouping>
+
+    <ng-template #emptyLinkedRuleSet>
+      <div class="aca-rule-list__item__all-linked-rules-are-disabled">
+        {{ 'ACA_FOLDER_RULES.RULE_LIST.ALL_LINKED_RULES_ARE_DISABLED' | translate }}
+        <button mat-stroked-button [routerLink]="['/nodes', mainRuleSet.owningFolder.id, 'rules']">
+          {{ 'ACA_FOLDER_RULES.MANAGE_RULES.TOOLBAR.ACTIONS.SEE_IN_FOLDER' | translate }}
+        </button>
+      </div>
+    </ng-template>
+  </ng-container>
 
 </div>
diff --git a/projects/aca-folder-rules/src/lib/rule-list/rule-list/rule-list.ui-component.scss b/projects/aca-folder-rules/src/lib/rule-list/rule-list/rule-list.ui-component.scss
index dae8faaea..43f5bb19b 100644
--- a/projects/aca-folder-rules/src/lib/rule-list/rule-list/rule-list.ui-component.scss
+++ b/projects/aca-folder-rules/src/lib/rule-list/rule-list/rule-list.ui-component.scss
@@ -46,5 +46,18 @@
         border-bottom: 1px solid var(--theme-border-color);
       }
     }
+
+    &__all-linked-rules-are-disabled {
+      display: flex;
+      flex-direction: column;
+      justify-content: center;
+      align-items: center;
+      gap: 4px;
+      color: var(--theme-disabled-text-color);
+      font-style: italic;
+      text-align: center;
+      padding: 0.5em 0;
+      font-size: 0.9em;
+    }
   }
 }
diff --git a/projects/aca-folder-rules/src/lib/rule-list/rule-list/rule-list.ui-component.ts b/projects/aca-folder-rules/src/lib/rule-list/rule-list/rule-list.ui-component.ts
index 1b96273cf..508d12dd8 100644
--- a/projects/aca-folder-rules/src/lib/rule-list/rule-list/rule-list.ui-component.ts
+++ b/projects/aca-folder-rules/src/lib/rule-list/rule-list/rule-list.ui-component.ts
@@ -69,14 +69,17 @@ export class RuleListUiComponent {
   get isMainRuleSetOwned(): boolean {
     return FolderRuleSetsService.isOwnedRuleSet(this.mainRuleSet, this.folderId);
   }
+  get isMainRuleSetLinked(): boolean {
+    return FolderRuleSetsService.isLinkedRuleSet(this.mainRuleSet, this.folderId);
+  }
 
   get mainRuleSetGroupingItems(): RuleGroupingItem[] {
-    return this.mainRuleSet ? this.getRuleSetGroupingItems(this.mainRuleSet) : [];
+    return this.mainRuleSet ? this.getRuleSetGroupingItems(this.mainRuleSet, !this.isMainRuleSetOwned) : [];
   }
 
   get inheritedRuleSetGroupingItems(): RuleGroupingItem[] {
     const items = this.inheritedRuleSets.reduce((accumulator: RuleGroupingItem[], currentRuleSet: RuleSet) => {
-      accumulator.push(...this.getRuleSetGroupingItems(currentRuleSet));
+      accumulator.push(...this.getRuleSetGroupingItems(currentRuleSet, true));
       return accumulator;
     }, []);
     if (this.ruleSetsLoading || this.hasMoreRuleSets) {
@@ -87,11 +90,13 @@ export class RuleListUiComponent {
     return items;
   }
 
-  getRuleSetGroupingItems(ruleSet: RuleSet): RuleGroupingItem[] {
-    const items: RuleGroupingItem[] = ruleSet.rules.map((rule: Rule) => ({
-      type: 'rule',
-      rule
-    }));
+  getRuleSetGroupingItems(ruleSet: RuleSet, filterOutDisabledRules: boolean): RuleGroupingItem[] {
+    const items: RuleGroupingItem[] = ruleSet.rules
+      .filter((rule: Rule) => rule.isEnabled || !filterOutDisabledRules)
+      .map((rule: Rule) => ({
+        type: 'rule',
+        rule
+      }));
     if (ruleSet.loadingRules || ruleSet.hasMoreRules) {
       items.push(
         ruleSet.loadingRules
diff --git a/projects/aca-folder-rules/src/lib/services/folder-rule-sets.service.ts b/projects/aca-folder-rules/src/lib/services/folder-rule-sets.service.ts
index df7b16ed9..7984e18a5 100644
--- a/projects/aca-folder-rules/src/lib/services/folder-rule-sets.service.ts
+++ b/projects/aca-folder-rules/src/lib/services/folder-rule-sets.service.ts
@@ -143,7 +143,10 @@ export class FolderRuleSetsService {
         this.mainRuleSetSource.next(mainRuleSet);
         this.inheritedRuleSetsSource.next(inheritedRuleSets);
         this.hasMoreRuleSetsSource.next(this.hasMoreRuleSets);
-        this.folderRulesService.selectRule(mainRuleSet?.rules[0] ?? inheritedRuleSets[0]?.rules[0] ?? null);
+        const ruleToSelect =
+          mainRuleSet?.rules.find((r: Rule) => FolderRuleSetsService.isOwnedRuleSet(mainRuleSet, nodeId) || r.isEnabled) ??
+          inheritedRuleSets.reduce((foundRule: Rule, ruleSet: RuleSet) => foundRule ?? ruleSet.rules.find((r: Rule) => r.isEnabled), null);
+        this.folderRulesService.selectRule(ruleToSelect);
       });
   }