diff --git a/client/src/components/Sharing/PeoplePicker/PeoplePicker.tsx b/client/src/components/Sharing/PeoplePicker/PeoplePicker.tsx
index 8aa4c7fdbb..4eaaf6966b 100644
--- a/client/src/components/Sharing/PeoplePicker/PeoplePicker.tsx
+++ b/client/src/components/Sharing/PeoplePicker/PeoplePicker.tsx
@@ -2,10 +2,10 @@ import React, { useState, useMemo } from 'react';
 import { PrincipalType } from 'librechat-data-provider';
 import type { TPrincipal, PrincipalSearchParams } from 'librechat-data-provider';
 import { useSearchPrincipalsQuery } from 'librechat-data-provider/react-query';
+import { useLocalize, usePeoplePickerPermissions } from '~/hooks';
 import PeoplePickerSearchItem from './PeoplePickerSearchItem';
 import SelectedPrincipalsList from './SelectedPrincipalsList';
 import { SearchPicker } from './SearchPicker';
-import { useLocalize } from '~/hooks';
 
 interface PeoplePickerProps {
   onSelectionChange: (principals: TPrincipal[]) => void;
@@ -21,6 +21,7 @@ export default function PeoplePicker({
   typeFilter = null,
 }: PeoplePickerProps) {
   const localize = useLocalize();
+  const { canViewUsers, canViewGroups, canViewRoles } = usePeoplePickerPermissions();
   const [searchQuery, setSearchQuery] = useState('');
   const [selectedShares, setSelectedShares] = useState<TPrincipal[]>([]);
 
@@ -55,6 +56,28 @@ export default function PeoplePicker({
     console.error('Principal search error:', error);
   }
 
+  /** Get appropriate label based on permissions */
+  const getSearchLabel = () => {
+    const permissions = [canViewUsers, canViewGroups, canViewRoles];
+    const permissionCount = permissions.filter(Boolean).length;
+
+    if (permissionCount === 3) {
+      return localize('com_ui_search_users_groups_roles');
+    } else if (permissionCount === 2) {
+      if (canViewUsers && canViewGroups) {
+        return localize('com_ui_search_users_groups');
+      }
+    } else if (canViewUsers) {
+      return localize('com_ui_search_users');
+    } else if (canViewGroups) {
+      return localize('com_ui_search_groups');
+    } else if (canViewRoles) {
+      return localize('com_ui_search_roles');
+    }
+
+    return localize('com_ui_search_users_groups');
+  };
+
   return (
     <div className={`space-y-3 ${className}`}>
       <div className="relative">
@@ -84,7 +107,7 @@ export default function PeoplePicker({
             });
             setSearchQuery('');
           }}
-          label={localize('com_ui_search_users_groups')}
+          label={getSearchLabel()}
           isLoading={isLoading}
         />
       </div>
diff --git a/client/src/components/Sharing/PeoplePicker/PeoplePickerSearchItem.tsx b/client/src/components/Sharing/PeoplePicker/PeoplePickerSearchItem.tsx
index a4071d0be0..03166fcddb 100644
--- a/client/src/components/Sharing/PeoplePicker/PeoplePickerSearchItem.tsx
+++ b/client/src/components/Sharing/PeoplePicker/PeoplePickerSearchItem.tsx
@@ -1,8 +1,9 @@
 import React, { forwardRef } from 'react';
+import { PrincipalType } from 'librechat-data-provider';
 import type { TPrincipal } from 'librechat-data-provider';
-import { cn } from '~/utils';
+import PrincipalAvatar from '~/components/Sharing/PrincipalAvatar';
 import { useLocalize } from '~/hooks';
-import PrincipalAvatar from '../PrincipalAvatar';
+import { cn } from '~/utils';
 
 interface PeoplePickerSearchItemProps extends React.HTMLAttributes<HTMLDivElement> {
   principal: TPrincipal;
@@ -16,10 +17,37 @@ const PeoplePickerSearchItem = forwardRef<HTMLDivElement, PeoplePickerSearchItem
     const localize = useLocalize();
     const { name, email, type } = principal;
 
-    // Display name with fallback
     const displayName = name || localize('com_ui_unknown');
     const subtitle = email || `${type} (${principal.source || 'local'})`;
 
+    /** Get badge styling based on type */
+    const getBadgeConfig = () => {
+      switch (type) {
+        case PrincipalType.USER:
+          return {
+            className: 'bg-blue-100 text-blue-800 dark:bg-blue-900 dark:text-blue-300',
+            label: localize('com_ui_user'),
+          };
+        case PrincipalType.GROUP:
+          return {
+            className: 'bg-green-100 text-green-800 dark:bg-green-900 dark:text-green-300',
+            label: localize('com_ui_group'),
+          };
+        case PrincipalType.ROLE:
+          return {
+            className: 'bg-purple-100 text-purple-800 dark:bg-purple-900 dark:text-purple-300',
+            label: localize('com_ui_role'),
+          };
+        default:
+          return {
+            className: 'bg-gray-100 text-gray-800 dark:bg-gray-900 dark:text-gray-300',
+            label: type,
+          };
+      }
+    };
+
+    const badgeConfig = getBadgeConfig();
+
     return (
       <div
         {...props}
@@ -41,12 +69,10 @@ const PeoplePickerSearchItem = forwardRef<HTMLDivElement, PeoplePickerSearchItem
           <span
             className={cn(
               'inline-flex items-center rounded-full px-2 py-1 text-xs font-medium',
-              type === 'user'
-                ? 'bg-blue-100 text-blue-800 dark:bg-blue-900 dark:text-blue-300'
-                : 'bg-green-100 text-green-800 dark:bg-green-900 dark:text-green-300',
+              badgeConfig.className,
             )}
           >
-            {type === 'user' ? localize('com_ui_user') : localize('com_ui_group')}
+            {badgeConfig.label}
           </span>
         </div>
       </div>
diff --git a/client/src/components/Sharing/PeoplePicker/SelectedPrincipalsList.tsx b/client/src/components/Sharing/PeoplePicker/SelectedPrincipalsList.tsx
index b323aceb35..4659dc6ec0 100644
--- a/client/src/components/Sharing/PeoplePicker/SelectedPrincipalsList.tsx
+++ b/client/src/components/Sharing/PeoplePicker/SelectedPrincipalsList.tsx
@@ -3,8 +3,8 @@ import * as Menu from '@ariakit/react/menu';
 import { Button, DropdownPopup } from '@librechat/client';
 import { Users, X, ExternalLink, ChevronDown } from 'lucide-react';
 import type { TPrincipal, TAccessRole, AccessRoleIds } from 'librechat-data-provider';
+import PrincipalAvatar from '~/components/Sharing/PrincipalAvatar';
 import { getRoleLocalizationKeys } from '~/utils';
-import PrincipalAvatar from '../PrincipalAvatar';
 import { useLocalize } from '~/hooks';
 
 interface SelectedPrincipalsListProps {
@@ -36,7 +36,7 @@ export default function SelectedPrincipalsList({
       <div className={`space-y-3 ${className}`}>
         <div className="rounded-lg border border-dashed border-border py-8 text-center text-muted-foreground">
           <Users className="mx-auto mb-2 h-8 w-8 opacity-50" />
-          <p className="mt-1 text-xs">{localize('com_ui_search_above_to_add')}</p>
+          <p className="mt-1 text-xs">{localize('com_ui_search_above_to_add_all')}</p>
         </div>
       </div>
     );
diff --git a/client/src/components/Sharing/PrincipalAvatar.tsx b/client/src/components/Sharing/PrincipalAvatar.tsx
index 2914f2f821..a96a66b036 100644
--- a/client/src/components/Sharing/PrincipalAvatar.tsx
+++ b/client/src/components/Sharing/PrincipalAvatar.tsx
@@ -1,5 +1,6 @@
 import React from 'react';
-import { Users, User } from 'lucide-react';
+import { Users, User, Shield } from 'lucide-react';
+import { PrincipalType } from 'librechat-data-provider';
 import type { TPrincipal } from 'librechat-data-provider';
 import { cn } from '~/utils';
 
@@ -17,7 +18,6 @@ export default function PrincipalAvatar({
   const { avatar, type, name } = principal;
   const displayName = name || 'Unknown';
 
-  // Size variants
   const sizeClasses = {
     sm: 'h-6 w-6',
     md: 'h-8 w-8',
@@ -33,7 +33,38 @@ export default function PrincipalAvatar({
   const avatarSizeClass = sizeClasses[size];
   const iconSizeClass = iconSizeClasses[size];
 
-  // Avatar or icon logic
+  /** Get icon component and styling based on type */
+  const getIconConfig = () => {
+    switch (type) {
+      case PrincipalType.USER:
+        return {
+          Icon: User,
+          containerClass: 'bg-blue-100 dark:bg-blue-900',
+          iconClass: 'text-blue-600 dark:text-blue-400',
+        };
+      case PrincipalType.GROUP:
+        return {
+          Icon: Users,
+          containerClass: 'bg-green-100 dark:bg-green-900',
+          iconClass: 'text-green-600 dark:text-green-400',
+        };
+      case PrincipalType.ROLE:
+        return {
+          Icon: Shield,
+          containerClass: 'bg-purple-100 dark:bg-purple-900',
+          iconClass: 'text-purple-600 dark:text-purple-400',
+        };
+      default:
+        return {
+          Icon: User,
+          containerClass: 'bg-gray-100 dark:bg-gray-900',
+          iconClass: 'text-gray-600 dark:text-gray-400',
+        };
+    }
+  };
+
+  const { Icon, containerClass, iconClass } = getIconConfig();
+
   if (avatar) {
     return (
       <div className={cn('flex-shrink-0', className)}>
@@ -50,52 +81,31 @@ export default function PrincipalAvatar({
         />
         {/* Hidden fallback icon that shows if image fails */}
         <div className={cn('hidden', avatarSizeClass)}>
-          {type === 'user' ? (
-            <div
-              className={cn(
-                avatarSizeClass,
-                'flex items-center justify-center rounded-full bg-blue-100 dark:bg-blue-900',
-              )}
-            >
-              <User className={cn(iconSizeClass, 'text-blue-600 dark:text-blue-400')} />
-            </div>
-          ) : (
-            <div
-              className={cn(
-                avatarSizeClass,
-                'flex items-center justify-center rounded-full bg-green-100 dark:bg-green-900',
-              )}
-            >
-              <Users className={cn(iconSizeClass, 'text-green-600 dark:text-green-400')} />
-            </div>
-          )}
+          <div
+            className={cn(
+              avatarSizeClass,
+              'flex items-center justify-center rounded-full',
+              containerClass,
+            )}
+          >
+            <Icon className={cn(iconSizeClass, iconClass)} />
+          </div>
         </div>
       </div>
     );
   }
 
-  // Fallback icon based on type
   return (
     <div className={cn('flex-shrink-0', className)}>
-      {type === 'user' ? (
-        <div
-          className={cn(
-            avatarSizeClass,
-            'flex items-center justify-center rounded-full bg-blue-100 dark:bg-blue-900',
-          )}
-        >
-          <User className={cn(iconSizeClass, 'text-blue-600 dark:text-blue-400')} />
-        </div>
-      ) : (
-        <div
-          className={cn(
-            avatarSizeClass,
-            'flex items-center justify-center rounded-full bg-green-100 dark:bg-green-900',
-          )}
-        >
-          <Users className={cn(iconSizeClass, 'text-green-600 dark:text-green-400')} />
-        </div>
-      )}
+      <div
+        className={cn(
+          avatarSizeClass,
+          'flex items-center justify-center rounded-full',
+          containerClass,
+        )}
+      >
+        <Icon className={cn(iconSizeClass, iconClass)} />
+      </div>
     </div>
   );
 }
diff --git a/client/src/locales/en/translation.json b/client/src/locales/en/translation.json
index b8543b8973..186f95ee94 100644
--- a/client/src/locales/en/translation.json
+++ b/client/src/locales/en/translation.json
@@ -693,10 +693,16 @@
   "com_ui_grant_access": "Grant Access",
   "com_ui_granting": "Granting...",
   "com_ui_search_users_groups": "Search Users and Groups",
+  "com_ui_search_users_groups_roles": "Search Users, Groups, and Roles",
+  "com_ui_search_users": "Search Users",
+  "com_ui_search_groups": "Search Groups",
+  "com_ui_search_roles": "Search Roles",
   "com_ui_search_default_placeholder": "Search by name or email (min 2 chars)",
   "com_ui_user": "User",
   "com_ui_group": "Group",
+  "com_ui_role": "Role",
   "com_ui_search_above_to_add": "Search above to add users or groups",
+  "com_ui_search_above_to_add_all": "Search above to add users, groups, or roles",
   "com_ui_azure_ad": "Entra ID",
   "com_ui_remove_user": "Remove {{0}}",
   "com_ui_create": "Create",