diff --git a/lib/content-services/src/lib/mock/permission-list.component.mock.ts b/lib/content-services/src/lib/mock/permission-list.component.mock.ts
index f583facd5c..b2263ba5f1 100644
--- a/lib/content-services/src/lib/mock/permission-list.component.mock.ts
+++ b/lib/content-services/src/lib/mock/permission-list.component.mock.ts
@@ -124,7 +124,8 @@ export const fakeNodeInheritedOnly = {
           },
           {
             'id': 'e002c740-b8f9-482a-a554-8fff4e4c9dc0',
-            'name': 'testsite'
+            'name': 'testsite',
+            'nodeType': 'st:site'
           },
           {
             'id': '71626fae-0c04-4d0c-a129-20fa4c178716',
@@ -579,3 +580,83 @@ export const fakeEmptyResponse: any = {
         'entries': []
     }
 };
+
+export const fakeNodeLocalSiteManager = {
+    'allowableOperations': [ 'updatePermissions' ],
+    'aspectNames': [
+        'cm:auditable',
+        'cm:taggable',
+        'cm:author',
+        'cm:titled',
+        'app:uifacets'
+    ],
+    'createdAt': '2017-11-16T16:29:38.638+0000',
+    'path': {
+        'name': '/Company Home/Sites/testsite/documentLibrary',
+        'isComplete': true,
+        'elements': [
+            {
+                'id': '2be275a1-b00d-4e45-83d8-66af43ac2252',
+                'name': 'Company Home'
+            },
+            {
+                'id': '1be10a97-6eb9-4b60-b6c6-1673900e9631',
+                'name': 'Sites'
+            },
+            {
+                'id': 'e002c740-b8f9-482a-a554-8fff4e4c9dc0',
+                'name': 'testsite',
+                'nodeType': 'st:site'
+            },
+            {
+                'id': '71626fae-0c04-4d0c-a129-20fa4c178716',
+                'name': 'documentLibrary'
+            }
+        ]
+    },
+    'isFolder': true,
+    'isFile': false,
+    'createdByUser': {
+        'id': 'System',
+        'displayName': 'System'
+    },
+    'modifiedAt': '2018-03-21T03:17:58.783+0000',
+    'permissions': {
+        'locallySet': [
+            {
+                'authorityId': 'GROUP_site_testsite_SiteManager',
+                'name': 'SiteManager',
+                'accessStatus': 'ALLOWED'
+            },
+            {
+                'authorityId': 'superadminuser',
+                'name': 'SiteCollaborator',
+                'accessStatus': 'ALLOWED'
+            }
+        ],
+        'settable': [
+            'Contributor',
+            'Collaborator',
+            'Coordinator',
+            'Editor',
+            'Consumer'
+        ],
+        'isInheritanceEnabled': false
+    },
+    'modifiedByUser': {
+        'id': 'admin',
+        'displayName': 'PedroH Hernandez'
+    },
+    'name': 'test',
+    'id': 'f472543f-7218-403d-917b-7a5861257244',
+    'nodeType': 'cm:folder',
+    'properties': {
+        'cm:title': 'test',
+        'cm:author': 'yagud',
+        'cm:taggable': [
+            'e8c8fbba-03ba-4fa6-86b1-f7ad7c296409'
+        ],
+        'cm:description': 'sleepery',
+        'app:icon': 'space-icon-default'
+    }
+};
diff --git a/lib/content-services/src/lib/permission-manager/components/permission-container/permission-container.component.html b/lib/content-services/src/lib/permission-manager/components/permission-container/permission-container.component.html
index 53c1276492..28f919f52f 100644
--- a/lib/content-services/src/lib/permission-manager/components/permission-container/permission-container.component.html
+++ b/lib/content-services/src/lib/permission-manager/components/permission-container/permission-container.component.html
@@ -34,7 +34,7 @@
             key="name"
             sortable="false">
             <ng-template let-entry="$implicit">
-                <adf-user-role-column [readonly]="isReadOnly"
+                <adf-user-role-column [readonly]="entry.row.obj.readonly || isReadOnly"
                                       [placeholder]="entry.data.getValue(entry.row, entry.col)"
                                       [value]="entry.data.getValue(entry.row, entry.col)"
                                       [roles]="roles"
@@ -59,6 +59,7 @@
         <data-column class="adf-datatable-cell adf-delete-permission-column" key="" *ngIf="!isReadOnly" [sortable]="false">
             <ng-template let-entry="$implicit">
                 <button mat-icon-button
+                        [disabled]="entry.row.obj.readonly"
                         (click)="removePermission($event, entry.row.obj)"
                         [attr.data-automation-id]="'adf-delete-permission-button-' + entry.row.obj.authorityId">
                     <mat-icon>delete_outline</mat-icon>
diff --git a/lib/content-services/src/lib/permission-manager/components/permission-list/permission-list.component.spec.ts b/lib/content-services/src/lib/permission-manager/components/permission-list/permission-list.component.spec.ts
index 7e7f3dbdea..bb4ddae164 100644
--- a/lib/content-services/src/lib/permission-manager/components/permission-list/permission-list.component.spec.ts
+++ b/lib/content-services/src/lib/permission-manager/components/permission-list/permission-list.component.spec.ts
@@ -25,6 +25,7 @@ import { NodePermissionService } from '../../services/node-permission.service';
 import {
     fakeEmptyResponse,
     fakeNodeInheritedOnly,
+    fakeNodeLocalSiteManager,
     fakeNodeWithOnlyLocally,
     fakeNodeWithoutPermissions,
     fakeNodeWithPermissions,
@@ -206,6 +207,19 @@ describe('PermissionListComponent', () => {
             expect(options[3].nativeElement.innerText).toContain('ADF.ROLES.SITEMANAGER');
         });
 
+        it('should show readonly member for site manager to toggle the inherit permission', async() => {
+            getNodeSpy.and.returnValue(of(fakeNodeLocalSiteManager));
+            component.ngOnInit();
+
+            await fixture.detectChanges();
+            expect(element.querySelector('adf-user-name-column').textContent).toContain('GROUP_site_testsite_SiteManager');
+            expect(element.querySelector('#adf-select-role-permission').textContent).toContain('ADF.ROLES.SITEMANAGER');
+            const deleteButton: HTMLButtonElement = element.querySelector('[data-automation-id="adf-delete-permission-button-GROUP_site_testsite_SiteManager"]');
+            expect(deleteButton.disabled).toBe(true);
+            const otherDeleteButton: HTMLButtonElement = element.querySelector('[data-automation-id="adf-delete-permission-button-superadminuser"]');
+            expect(otherDeleteButton.disabled).toBe(false);
+        });
+
         it('should update the role when another value is chosen',  async () => {
             spyOn(nodeService, 'updateNode').and.returnValue(of({id: 'fake-uwpdated-node'}));
             searchQuerySpy.and.returnValue(of(fakeEmptyResponse));
@@ -236,8 +250,8 @@ describe('PermissionListComponent', () => {
             expect(element.querySelector('adf-user-name-column').textContent).toContain('GROUP_EVERYONE');
             expect(element.querySelector('#adf-select-role-permission').textContent).toContain('Contributor');
 
-            const showButton: HTMLButtonElement = element.querySelector('[data-automation-id="adf-delete-permission-button-GROUP_EVERYONE"]');
-            showButton.click();
+            const deleteButton: HTMLButtonElement = element.querySelector('[data-automation-id="adf-delete-permission-button-GROUP_EVERYONE"]');
+            deleteButton.click();
             fixture.detectChanges();
 
             expect(nodeService.updateNode).toHaveBeenCalledWith('f472543f-7218-403d-917b-7a5861257244', { permissions: { locallySet: [ ] } });
diff --git a/lib/content-services/src/lib/permission-manager/components/permission-list/permission-list.component.ts b/lib/content-services/src/lib/permission-manager/components/permission-list/permission-list.component.ts
index 9ca9b85703..37b5da8d6b 100644
--- a/lib/content-services/src/lib/permission-manager/components/permission-list/permission-list.component.ts
+++ b/lib/content-services/src/lib/permission-manager/components/permission-list/permission-list.component.ts
@@ -56,7 +56,7 @@ export class PermissionListComponent {
     }
 
     onSelect(selections: ObjectDataRow[]) {
-        this.selectedPermissions = selections.map((selection) => selection['obj']);
+        this.selectedPermissions = selections.map((selection) => selection['obj']).filter((permission) => !permission.readonly);
     }
 
     deleteSelection() {
diff --git a/lib/content-services/src/lib/permission-manager/components/permission-list/permission-list.service.spec.ts b/lib/content-services/src/lib/permission-manager/components/permission-list/permission-list.service.spec.ts
index c02fde694c..36c2db18ae 100644
--- a/lib/content-services/src/lib/permission-manager/components/permission-list/permission-list.service.spec.ts
+++ b/lib/content-services/src/lib/permission-manager/components/permission-list/permission-list.service.spec.ts
@@ -22,7 +22,7 @@ import { of, throwError } from 'rxjs';
 import { PermissionListService } from './permission-list.service';
 import { ContentTestingModule } from '../../../testing/content.testing.module';
 import { NodePermissionService } from '../../services/node-permission.service';
-import { fakeNodeInheritedOnly, fakeNodeWithOnlyLocally } from '../../../mock/permission-list.component.mock';
+import { fakeNodeInheritedOnly, fakeNodeLocalSiteManager, fakeNodeWithOnlyLocally } from '../../../mock/permission-list.component.mock';
 import { PermissionDisplayModel } from '../../models/permission.model';
 
 describe('PermissionListService', () => {
@@ -82,21 +82,50 @@ describe('PermissionListService', () => {
             expect(notificationService.showError).toHaveBeenCalledWith('PERMISSION_MANAGER.ERROR.NOT-ALLOWED');
         });
 
-        it('should show message after success toggle', () => {
+        it('should include the local permission before toggle', (done) => {
+            const node = JSON.parse(JSON.stringify(fakeNodeInheritedOnly)), event = { source: { checked: false } };
+            spyOn(nodePermissionService, 'getNodeWithRoles').and.returnValue(of({node , roles: []}));
+            spyOn(nodePermissionService, 'updatePermissions').and.returnValue(of(null));
+            spyOn(nodesApiService, 'updateNode').and.returnValue(of(JSON.parse(JSON.stringify(fakeNodeLocalSiteManager))));
+            service.fetchPermission('fetch node');
+
+            const subscription = service.data$.subscribe(({ localPermissions }) => {
+                expect(localPermissions[0].authorityId).toBe('GROUP_site_testsite_SiteManager');
+                expect(localPermissions[0].readonly).toBe(true);
+                expect(localPermissions[1].authorityId).toBe('superadminuser');
+                expect(localPermissions[1].readonly).toBe(undefined);
+                expect(nodePermissionService.updatePermissions).toHaveBeenCalled();
+                expect(nodesApiService.updateNode).toHaveBeenCalled();
+                expect(notificationService.showInfo).toHaveBeenCalledWith('PERMISSION_MANAGER.MESSAGE.INHERIT-DISABLE-SUCCESS');
+                subscription.unsubscribe();
+                done();
+            });
+            service.toggleInherited(event as any);
+        });
+
+        it('should not update local permission before toggle', () => {
             const node = JSON.parse(JSON.stringify(fakeNodeInheritedOnly)), event = { source: { checked: false } };
             const updateNode = JSON.parse(JSON.stringify(fakeNodeInheritedOnly));
+            node.permissions.locallySet = [{
+                'authorityId': 'GROUP_site_testsite_SiteManager',
+                'name': 'SiteManager',
+                'accessStatus': 'ALLOWED'
+            }];
             updateNode.permissions.isInheritanceEnabled = false;
             spyOn(nodePermissionService, 'getNodeWithRoles').and.returnValue(of({node , roles: []}));
+            spyOn(nodePermissionService, 'updatePermissions').and.returnValue(of(null));
             spyOn(nodesApiService, 'updateNode').and.returnValue(of(updateNode));
             service.fetchPermission('fetch node');
 
             service.toggleInherited(event as any);
+            expect(nodePermissionService.updatePermissions).not.toHaveBeenCalled();
             expect(nodesApiService.updateNode).toHaveBeenCalled();
             expect(notificationService.showInfo).toHaveBeenCalledWith('PERMISSION_MANAGER.MESSAGE.INHERIT-DISABLE-SUCCESS');
         });
 
         it('should show message for errored toggle', () => {
             const node = JSON.parse(JSON.stringify(fakeNodeInheritedOnly)), event = { source: { checked: false } };
+            node.permissions.isInheritanceEnabled = true;
             spyOn(nodesApiService, 'updateNode').and.returnValue(throwError('Failed to update'));
             spyOn(nodePermissionService, 'getNodeWithRoles').and.returnValue(of({node , roles: []}));
             service.fetchPermission('fetch node');
@@ -104,6 +133,7 @@ describe('PermissionListService', () => {
             service.toggleInherited(event as any);
             expect(nodesApiService.updateNode).toHaveBeenCalled();
             expect(notificationService.showWarning).toHaveBeenCalledWith('PERMISSION_MANAGER.MESSAGE.TOGGLE-PERMISSION-FAILED');
+            expect(event.source.checked).toEqual(true);
         });
     });
 
diff --git a/lib/content-services/src/lib/permission-manager/components/permission-list/permission-list.service.ts b/lib/content-services/src/lib/permission-manager/components/permission-list/permission-list.service.ts
index 27dfbbd32d..7667d99704 100644
--- a/lib/content-services/src/lib/permission-manager/components/permission-list/permission-list.service.ts
+++ b/lib/content-services/src/lib/permission-manager/components/permission-list/permission-list.service.ts
@@ -39,18 +39,20 @@ export class PermissionListService {
     nodeWithRoles$: Subject<{ node: Node, roles: RoleModel[] }> = new Subject();
     data$: Observable<NodePermissionsModel> = this.nodeWithRoles$.pipe(
         map(({ node, roles}) => {
+            const nodeLocalPermissions = this.nodePermissionService.getLocalPermissions(node);
+            const localPermissions = this.updateReadOnlyPermission(node, nodeLocalPermissions);
             return {
                 node,
                 roles,
-                inheritedPermissions: this.nodePermissionService.getInheritedPermission(node),
-                localPermissions: this.nodePermissionService.getLocalPermissions(node),
-                allPermission: this.nodePermissionService.getNodePermissions(node)
+                localPermissions,
+                inheritedPermissions: this.nodePermissionService.getInheritedPermission(node)
             };
         })
     );
 
     private node: Node;
     private roles: RoleModel[];
+    private SITE_MANAGER_ROLE = 'SiteManager';
 
     constructor(
         private nodeService: NodesApiService,
@@ -76,12 +78,23 @@ export class PermissionListService {
 
     toggleInherited(change: MatSlideToggleChange) {
         if (this.contentService.hasAllowableOperations(this.node, AllowableOperationsEnum.UPDATEPERMISSIONS)) {
+            let updateLocalPermission$ = of(null);
             const nodeBody = {
                 permissions: {
                     isInheritanceEnabled: !this.node.permissions.isInheritanceEnabled
                 }
             };
-            this.nodeService.updateNode(this.node.id, nodeBody, {include: ['permissions']})
+
+            const authorityId = this.getManagerAuthority(this.node);
+            if (authorityId) {
+                const permissions = [
+                    ...(this.node.permissions.locallySet || []),
+                    { authorityId, name: this.SITE_MANAGER_ROLE, accessStatus: 'ALLOWED' }
+                ];
+                updateLocalPermission$ = this.nodePermissionService.updatePermissions(this.node, permissions);
+            }
+
+            updateLocalPermission$.pipe(switchMap(() => this.nodeService.updateNode(this.node.id, nodeBody, {include: ['permissions']})))
                 .subscribe(
                     (nodeUpdated: Node) => {
                         const message = nodeUpdated.permissions.isInheritanceEnabled ? 'PERMISSION_MANAGER.MESSAGE.INHERIT-ENABLE-SUCCESS' : 'PERMISSION_MANAGER.MESSAGE.INHERIT-DISABLE-SUCCESS';
@@ -157,7 +170,7 @@ export class PermissionListService {
     }
 
     bulkRoleUpdate(role: string) {
-        const permissions = [...this.node.permissions.locallySet] .map((permission) => this.buildUpdatedPermission(role, permission));
+        const permissions = [...this.node.permissions.locallySet].map((permission) => this.buildUpdatedPermission(role, permission));
         this.nodePermissionService.updatePermissions(this.node, permissions)
             .subscribe((node) => {
                     const total = permissions.length;
@@ -173,10 +186,14 @@ export class PermissionListService {
     }
 
     deletePermission(permission: PermissionDisplayModel) {
+        const cloneNode = { ...this.node, permissions: { ...this.node.permissions, locallySet: [ ...this.node.permissions.locallySet ] } };
         this.nodePermissionService
-            .removePermission(this.node, permission)
+            .removePermission(cloneNode, permission)
             .subscribe((node) => {
                     this.notificationService.showInfo('PERMISSION_MANAGER.MESSAGE.PERMISSION-DELETE-SUCCESS');
+                    if (!node.permissions.locallySet) {
+                       node.permissions.locallySet = [];
+                    }
                     this.reloadNode(node);
                 },
                 () => {
@@ -189,7 +206,7 @@ export class PermissionListService {
     private buildUpdatedPermission(role: string, permission: PermissionElement): PermissionElement {
         return {
             accessStatus: permission.accessStatus,
-            name: role,
+            name: this.canUpdateThePermission(this.node, permission) ? role :  permission.name,
             authorityId: permission.authorityId
         };
     }
@@ -201,6 +218,38 @@ export class PermissionListService {
         this.nodeWithRoles$.next({ node: this.node, roles: this.roles });
     }
 
+    getManagerAuthority(node: Node): string {
+        const sitePath = node.path.elements.find((path) => path.nodeType === 'st:site');
+        let hasLocalManagerPermission = false, authorityId: string;
+        if (sitePath) {
+            authorityId = `GROUP_site_${sitePath.name}_${this.SITE_MANAGER_ROLE}`;
+            hasLocalManagerPermission = !!node.permissions.locallySet?.find((permission) => permission.authorityId === authorityId && permission.name === this.SITE_MANAGER_ROLE);
+        }
+
+        if (!hasLocalManagerPermission && authorityId) {
+            return authorityId;
+        }
+        return null;
+    }
+
+    updateReadOnlyPermission(node: Node, permissions: PermissionDisplayModel[]): PermissionDisplayModel[] {
+        permissions.forEach((permission) => {
+            if (!this.canUpdateThePermission(node, permission)) {
+                permission.readonly = true;
+            }
+        });
+        return permissions;
+    }
+
+    canUpdateThePermission(node: Node, permission: PermissionElement): boolean {
+        const sitePath = node.path.elements.find((path) => path.nodeType === 'st:site');
+        if (!node.permissions.isInheritanceEnabled && sitePath) {
+           const authorityId = `GROUP_site_${sitePath.name}_${this.SITE_MANAGER_ROLE}`;
+           return !(permission.authorityId === authorityId && permission.name === this.SITE_MANAGER_ROLE);
+        }
+        return true;
+    }
+
     private isGroup(authorityId) {
         return authorityId.startsWith('GROUP_') || authorityId.startsWith('ROLE_');
     }
diff --git a/lib/content-services/src/lib/permission-manager/models/permission.model.ts b/lib/content-services/src/lib/permission-manager/models/permission.model.ts
index 63c4b86ec2..98a2da7ce8 100644
--- a/lib/content-services/src/lib/permission-manager/models/permission.model.ts
+++ b/lib/content-services/src/lib/permission-manager/models/permission.model.ts
@@ -24,6 +24,7 @@ export class PermissionDisplayModel implements PermissionElement {
     accessStatus?: PermissionElement.AccessStatusEnum;
     isInherited: boolean = false;
     icon: string;
+    readonly?: boolean;
 
     constructor(obj?: any) {
         if (obj) {