diff --git a/backend/adapter_processor_v2/serializers.py b/backend/adapter_processor_v2/serializers.py
index f129f65c55..8c45e37596 100644
--- a/backend/adapter_processor_v2/serializers.py
+++ b/backend/adapter_processor_v2/serializers.py
@@ -159,6 +159,7 @@ class Meta(BaseAdapterSerializer.Meta):
             "adapter_type",
             "created_by",
             "shared_users",
+            "shared_to_org",
         )  # type: ignore
 
 
diff --git a/backend/adapter_processor_v2/views.py b/backend/adapter_processor_v2/views.py
index 36a2db0116..78f2880633 100644
--- a/backend/adapter_processor_v2/views.py
+++ b/backend/adapter_processor_v2/views.py
@@ -289,9 +289,12 @@ def destroy(
     def partial_update(
         self, request: Request, *args: tuple[Any], **kwargs: dict[str, Any]
     ) -> Response:
+        # Store current shared users before update (for email notifications)
+        adapter = self.get_object()
+        current_shared_users = set(adapter.shared_users.all())
+
         if AdapterKeys.SHARED_USERS in request.data:
             # find the deleted users
-            adapter = self.get_object()
             shared_users = {
                 int(user_id) for user_id in request.data.get("shared_users", {})
             }
@@ -333,7 +336,47 @@ def partial_update(
                     )
                     continue
 
-        return super().partial_update(request, *args, **kwargs)
+        # Perform the update
+        response = super().partial_update(request, *args, **kwargs)
+
+        # Send email notifications to newly shared users
+        if response.status_code == 200 and AdapterKeys.SHARED_USERS in request.data:
+            try:
+                from plugins.notification.constants import ResourceType
+                from plugins.notification.sharing_notification import (
+                    SharingNotificationService,
+                )
+
+                adapter.refresh_from_db()
+                new_shared_users = set(adapter.shared_users.all())
+                newly_shared_users = new_shared_users - current_shared_users
+
+                if newly_shared_users:
+                    # Map adapter type to specific resource type
+                    adapter_type_to_resource = {
+                        "LLM": ResourceType.LLM.value,
+                        "EMBEDDING": ResourceType.EMBEDDING.value,
+                        "VECTOR_DB": ResourceType.VECTOR_DB.value,
+                        "X2TEXT": ResourceType.X2TEXT.value,
+                    }
+
+                    resource_type = adapter_type_to_resource.get(
+                        adapter.adapter_type, ResourceType.LLM.value
+                    )
+
+                    notification_service = SharingNotificationService()
+                    notification_service.send_sharing_notification(
+                        resource_type=resource_type,
+                        resource_name=adapter.adapter_name,
+                        resource_id=str(adapter.id),
+                        shared_by=request.user,
+                        shared_to=list(newly_shared_users),
+                        resource_instance=adapter,
+                    )
+            except Exception as e:
+                logger.exception(f"Failed to send sharing notification: {e}")
+
+        return response
 
     @action(detail=True, methods=["get"])
     def list_of_shared_users(self, request: HttpRequest, pk: Any = None) -> Response:
diff --git a/frontend/src/components/tool-settings/tool-settings/ToolSettings.jsx b/frontend/src/components/tool-settings/tool-settings/ToolSettings.jsx
index 3f633e4a00..b8766c6524 100644
--- a/frontend/src/components/tool-settings/tool-settings/ToolSettings.jsx
+++ b/frontend/src/components/tool-settings/tool-settings/ToolSettings.jsx
@@ -170,21 +170,28 @@ function ToolSettings({ type }) {
       });
   };
 
-  const onShare = (userIds, adapter) => {
+  const onShare = (userIds, adapter, shareWithEveryone) => {
     const requestOptions = {
       method: "PATCH",
       url: `/api/v1/unstract/${sessionDetails?.orgId}/adapter/${adapter?.id}/`,
       headers: {
         "X-CSRFToken": sessionDetails?.csrfToken,
       },
-      data: { shared_users: userIds },
+      data: {
+        shared_users: userIds,
+        shared_to_org: shareWithEveryone || false,
+      },
     };
     axiosPrivate(requestOptions)
       .then((response) => {
         setOpenSharePermissionModal(false);
+        setAlertDetails({
+          type: "success",
+          content: "Sharing settings updated successfully",
+        });
       })
       .catch((err) => {
-        setAlertDetails(handleException(err, "Failed to load"));
+        setAlertDetails(handleException(err, "Failed to update sharing"));
       });
   };
 
@@ -255,6 +262,7 @@ function ToolSettings({ type }) {
         loading={isShareLoading}
         allUsers={userList}
         onApply={onShare}
+        isSharableToOrg={true}
       />
     </div>
   );
diff --git a/frontend/src/components/widgets/share-permission/SharePermission.jsx b/frontend/src/components/widgets/share-permission/SharePermission.jsx
index 65637acb83..13fa5791e3 100644
--- a/frontend/src/components/widgets/share-permission/SharePermission.jsx
+++ b/frontend/src/components/widgets/share-permission/SharePermission.jsx
@@ -166,6 +166,7 @@ function SharePermission({
                 checked={shareWithEveryone}
                 onChange={(e) => handleShareWithEveryone(e.target.checked)}
                 className="share-per-checkbox"
+                disabled={!permissionEdit}
               >
                 Share with everyone in current org
               </Checkbox>