diff --git a/Channel-Backend/src/controllers/auth.controller.ts b/Channel-Backend/src/controllers/auth.controller.ts
index 5becd37..21eb797 100644
--- a/Channel-Backend/src/controllers/auth.controller.ts
+++ b/Channel-Backend/src/controllers/auth.controller.ts
@@ -59,7 +59,7 @@ export class AuthController {
       }).parse(req.body);
 
       const result = await this.authService.updatePartner(partnerId, {
-        partnerGroup: partnerGroup === null ? undefined : partnerGroup,
+        partnerGroup: (partnerGroup === null || partnerGroup === '') ? null : partnerGroup,
         assignedNdaId: assignedNdaId === null ? undefined : assignedNdaId,
         assignedMsaId: assignedMsaId === null ? undefined : assignedMsaId,
         sharedAssetIds,
diff --git a/Channel-Backend/src/services/auth.service.ts b/Channel-Backend/src/services/auth.service.ts
index 4c0f201..898ed71 100644
--- a/Channel-Backend/src/services/auth.service.ts
+++ b/Channel-Backend/src/services/auth.service.ts
@@ -137,7 +137,7 @@ export class AuthService {
     return { inviteToken, emailSent, emailError };
   }
 
-  public async updatePartner(partnerId: string, options: { partnerGroup?: string, assignedNdaId?: string, assignedMsaId?: string, sharedAssetIds?: string[], mfaEnabled?: boolean }) {
+  public async updatePartner(partnerId: string, options: { partnerGroup?: string | null, assignedNdaId?: string | null, assignedMsaId?: string | null, sharedAssetIds?: string[], mfaEnabled?: boolean }) {
     const user = await prisma.user.findUnique({
       where: { id: partnerId }
     });
diff --git a/Channel-Frontend/src/pages/admin/DirectoryPage.tsx b/Channel-Frontend/src/pages/admin/DirectoryPage.tsx
index 577f661..5359234 100644
--- a/Channel-Frontend/src/pages/admin/DirectoryPage.tsx
+++ b/Channel-Frontend/src/pages/admin/DirectoryPage.tsx
@@ -15,6 +15,7 @@ import {
   Copy,
   Trash2,
   Plus,
+  Lock,
 } from "lucide-react";
 import { motion } from "framer-motion";
 import { Link } from "react-router-dom";
@@ -154,7 +155,10 @@ export const DirectoryPage: React.FC = () => {
   const [partnerAssetToRemove, setPartnerAssetToRemove] = useState<{ id: string, title: string } | null>(null);
 
   useEffect(() => {
-    getAssets().then(setAllAssets).catch(console.error);
+    getAssets().then((assets) => {
+      setAllAssets(assets);
+      setSelectedAssetIds(assets.map(a => a.id));
+    }).catch(console.error);
     getLegalDocuments().then(setAllDocs).catch(console.error);
     getAssetGroups().then(setAssetGroups).catch(console.error);
   }, []);
@@ -560,6 +564,12 @@ export const DirectoryPage: React.FC = () => {
             onClick={() => {
               setInviteResult(null);
               setEmail("");
+              setPartnerGroup("");
+              setAssignedNdaId("");
+              setAssignedMsaId("");
+              setMfaRequired(true);
+              setSelectedAssetIds(allAssets.map(a => a.id));
+              setInviteAssetSearch("");
               setIsInviteOpen(true);
             }}
             variant="primary"
@@ -740,6 +750,7 @@ export const DirectoryPage: React.FC = () => {
               ) : (
                 paginatedPartners.map((partner) => {
                   const sc = getStatusConfig(partner.onboardingStatus);
+                  const pGroup = partner.partnerGroup;
                   return (
                     <tr
                       key={partner.id}
@@ -772,9 +783,16 @@ export const DirectoryPage: React.FC = () => {
                             setSelectedPartnerForAssets(partner);
                             setIsPartnerAssetsOpen(true);
                           }}
-                          className="text-xs font-bold text-ink-700 hover:text-ink-950 hover:underline cursor-pointer focus:outline-none"
+                          className="text-xs font-bold text-ink-700 hover:text-ink-950 hover:underline cursor-pointer focus:outline-none flex flex-col items-start gap-0.5"
                         >
-                          {partner.sharedAssets?.length || 0} assets
+                          <span>
+                            {((partner.sharedAssets?.length || 0) + (pGroup ? (assetGroups.find(g => g.name.trim().toLowerCase() === pGroup.trim().toLowerCase())?.assets?.length || 0) : 0))} assets
+                          </span>
+                          {pGroup && assetGroups.some(g => g.name.trim().toLowerCase() === pGroup.trim().toLowerCase()) && (
+                            <span className="text-[9px] text-amber-600 font-extrabold uppercase tracking-wide">
+                              Includes {pGroup} Group
+                            </span>
+                          )}
                         </button>
                       </td>
                       <td className="px-5 py-4">
@@ -971,19 +989,30 @@ export const DirectoryPage: React.FC = () => {
             </div>
           ) : (
             /* Current Shared Assets List */
-            (!selectedPartnerForAssets?.sharedAssets || selectedPartnerForAssets.sharedAssets.length === 0) ? (
-              <div className="text-center py-10 bg-ink-50/50 border border-dashed border-ink-200 rounded-xl">
-                <Folder className="w-10 h-10 text-ink-300 mx-auto mb-2" />
-                <p className="text-xs font-bold text-ink-900 font-sans">No assets shared</p>
-                <p className="text-[10px] text-ink-450 mt-1 font-sans">There are no assets currently assigned to this partner.</p>
-              </div>
-            ) : (
-              <div className="border border-ink-200 rounded-xl overflow-hidden divide-y divide-ink-200 bg-ink-0 max-h-[350px] overflow-y-auto">
-                {selectedPartnerForAssets.sharedAssets.map((item: any) => {
-                  const asset = item.asset;
-                  if (!asset) return null;
-                  return (
-                    <div key={item.assetId} className="flex items-center justify-between p-3 hover:bg-ink-100 transition-colors font-sans">
+            /* Current Shared Assets List */
+            (() => {
+              const matchedGroup = selectedPartnerForAssets?.partnerGroup
+                ? assetGroups.find(g => g.name.trim().toLowerCase() === selectedPartnerForAssets.partnerGroup.trim().toLowerCase())
+                : null;
+              const inheritedAssets = matchedGroup ? matchedGroup.assets : [];
+              const directAssets = selectedPartnerForAssets?.sharedAssets || [];
+              const totalCount = directAssets.length + inheritedAssets.length;
+
+              if (totalCount === 0) {
+                return (
+                  <div className="text-center py-10 bg-ink-50/50 border border-dashed border-ink-200 rounded-xl">
+                    <Folder className="w-10 h-10 text-ink-300 mx-auto mb-2" />
+                    <p className="text-xs font-bold text-ink-900 font-sans">No assets shared</p>
+                    <p className="text-[10px] text-ink-450 mt-1 font-sans">There are no assets currently assigned to this partner.</p>
+                  </div>
+                );
+              }
+
+              return (
+                <div className="border border-ink-200 rounded-xl overflow-hidden divide-y divide-ink-200 bg-ink-0 max-h-[350px] overflow-y-auto">
+                  {/* Group Inherited Assets */}
+                  {inheritedAssets.map((asset: any) => (
+                    <div key={`group-asset-${asset.id}`} className="flex items-center justify-between p-3 hover:bg-ink-100 transition-colors font-sans">
                       <div className="flex items-center gap-3 min-w-0">
                         {getFileIcon(asset.type || '', asset.title)}
                         <div className="min-w-0 font-sans">
@@ -992,26 +1021,53 @@ export const DirectoryPage: React.FC = () => {
                             <span className="text-[8px] px-1.5 py-0.2 rounded bg-ink-100 border border-ink-200 text-ink-600 font-bold uppercase tracking-wider">
                               {asset.categoryId || 'General'}
                             </span>
-                            {asset.subcategory && (
-                              <span className="text-[8px] px-1.5 py-0.2 rounded bg-ink-50 border border-ink-150 text-ink-500 font-semibold">
-                                {asset.subcategory}
-                              </span>
-                            )}
+                            <span className="text-[8px] px-1.5 py-0.2 rounded bg-amber-500/10 border border-amber-500/20 text-amber-700 font-extrabold uppercase tracking-wider">
+                              Inherited ({selectedPartnerForAssets?.partnerGroup})
+                            </span>
                           </div>
                         </div>
                       </div>
-                      <button
-                        onClick={() => handleRemoveAssetFromPartner(item.assetId, asset.title)}
-                        className="p-1.5 text-red-500 hover:text-red-750 hover:bg-red-500/10 rounded-lg transition-colors cursor-pointer shrink-0 ml-4"
-                        title="Remove Share"
-                      >
-                        <Trash2 className="w-4 h-4" />
-                      </button>
+                      <div className="p-1.5 text-ink-400 cursor-not-allowed shrink-0 ml-4" title="Inherited via group permissions (Read-only)">
+                        <Lock className="w-4 h-4 text-ink-400" />
+                      </div>
                     </div>
-                  );
-                })}
-              </div>
-            )
+                  ))}
+
+                  {/* Direct Shared Assets */}
+                  {directAssets.map((item: any) => {
+                    const asset = item.asset;
+                    if (!asset) return null;
+                    return (
+                      <div key={item.assetId} className="flex items-center justify-between p-3 hover:bg-ink-100 transition-colors font-sans">
+                        <div className="flex items-center gap-3 min-w-0">
+                          {getFileIcon(asset.type || '', asset.title)}
+                          <div className="min-w-0 font-sans">
+                            <p className="text-xs font-bold text-ink-900 truncate">{asset.title}</p>
+                            <div className="flex items-center gap-2 mt-1">
+                              <span className="text-[8px] px-1.5 py-0.2 rounded bg-ink-100 border border-ink-200 text-ink-600 font-bold uppercase tracking-wider">
+                                {asset.categoryId || 'General'}
+                              </span>
+                              {asset.subcategory && (
+                                <span className="text-[8px] px-1.5 py-0.2 rounded bg-ink-50 border border-ink-150 text-ink-500 font-semibold">
+                                  {asset.subcategory}
+                                </span>
+                              )}
+                            </div>
+                          </div>
+                        </div>
+                        <button
+                          onClick={() => handleRemoveAssetFromPartner(item.assetId, asset.title)}
+                          className="p-1.5 text-red-500 hover:text-red-750 hover:bg-red-500/10 rounded-lg transition-colors cursor-pointer shrink-0 ml-4"
+                          title="Remove Share"
+                        >
+                          <Trash2 className="w-4 h-4" />
+                        </button>
+                      </div>
+                    );
+                  })}
+                </div>
+              );
+            })()
           )}
         </div>
       </Modal>