diff --git a/crates/goose/src/tool_inspection.rs b/crates/goose/src/tool_inspection.rs
index 1a7ef80125ad..d72fe649bc12 100644
--- a/crates/goose/src/tool_inspection.rs
+++ b/crates/goose/src/tool_inspection.rs
@@ -238,9 +238,13 @@ pub fn apply_inspection_results_to_permissions(
 
                 if let Some(request) = all_requests.get(request_id) {
                     if !permission_result
-                        .needs_approval
+                        .denied
                         .iter()
                         .any(|req| req.id == *request_id)
+                        && !permission_result
+                            .needs_approval
+                            .iter()
+                            .any(|req| req.id == *request_id)
                     {
                         permission_result.needs_approval.push(request.clone());
                     }
diff --git a/crates/goose/tests/tool_inspection_permission_precedence.rs b/crates/goose/tests/tool_inspection_permission_precedence.rs
new file mode 100644
index 000000000000..82b1c2d4f331
--- /dev/null
+++ b/crates/goose/tests/tool_inspection_permission_precedence.rs
@@ -0,0 +1,100 @@
+use goose::conversation::message::ToolRequest;
+use goose::permission::permission_judge::PermissionCheckResult;
+use goose::tool_inspection::{
+    apply_inspection_results_to_permissions, InspectionAction, InspectionResult,
+};
+use rmcp::model::CallToolRequestParams;
+use rmcp::object;
+
+fn request(id: &str) -> ToolRequest {
+    ToolRequest {
+        id: id.to_string(),
+        tool_call: Ok(CallToolRequestParams::new("test_tool").with_arguments(object!({}))),
+        metadata: None,
+        tool_meta: None,
+    }
+}
+
+fn inspection(id: &str, action: InspectionAction) -> InspectionResult {
+    InspectionResult {
+        tool_request_id: id.to_string(),
+        action,
+        reason: "test decision".to_string(),
+        confidence: 1.0,
+        inspector_name: "test_inspector".to_string(),
+        finding_id: None,
+    }
+}
+
+fn assert_only_denied(result: PermissionCheckResult, id: &str) {
+    assert!(result.approved.is_empty());
+    assert!(result.needs_approval.is_empty());
+    assert_eq!(result.denied, vec![request(id)]);
+}
+
+#[test]
+fn require_approval_does_not_resurrect_a_denied_request() {
+    let result = apply_inspection_results_to_permissions(
+        PermissionCheckResult {
+            approved: vec![],
+            needs_approval: vec![],
+            denied: vec![request("request-1")],
+        },
+        &[inspection(
+            "request-1",
+            InspectionAction::RequireApproval(Some("security warning".to_string())),
+        )],
+    );
+
+    assert_only_denied(result, "request-1");
+}
+
+#[test]
+fn denial_dominates_regardless_of_inspection_result_order() {
+    for inspection_results in [
+        vec![
+            inspection("request-1", InspectionAction::Deny),
+            inspection(
+                "request-1",
+                InspectionAction::RequireApproval(Some("security warning".to_string())),
+            ),
+        ],
+        vec![
+            inspection(
+                "request-1",
+                InspectionAction::RequireApproval(Some("security warning".to_string())),
+            ),
+            inspection("request-1", InspectionAction::Deny),
+        ],
+    ] {
+        let result = apply_inspection_results_to_permissions(
+            PermissionCheckResult {
+                approved: vec![request("request-1")],
+                needs_approval: vec![],
+                denied: vec![],
+            },
+            &inspection_results,
+        );
+
+        assert_only_denied(result, "request-1");
+    }
+}
+
+#[test]
+fn require_approval_still_moves_an_approved_request_to_needs_approval() {
+    let result = apply_inspection_results_to_permissions(
+        PermissionCheckResult {
+            approved: vec![request("request-1")],
+            needs_approval: vec![],
+            denied: vec![],
+        },
+        &[inspection(
+            "request-1",
+            InspectionAction::RequireApproval(Some("security warning".to_string())),
+        )],
+    );
+
+    assert!(result.approved.is_empty());
+    assert_eq!(result.needs_approval, vec![request("request-1")]);
+    assert!(result.denied.is_empty());
+}