diff --git a/public/app/core/components/Permissions/PermissionsListItem.tsx b/public/app/core/components/Permissions/PermissionsListItem.tsx
index ee1108a6998..b0158525d52 100644
--- a/public/app/core/components/Permissions/PermissionsListItem.tsx
+++ b/public/app/core/components/Permissions/PermissionsListItem.tsx
@@ -41,7 +41,7 @@ export default observer(({ item, removeItem, permissionChanged, itemIndex, folde
     permissionChanged(itemIndex, permissionOption.value, permissionOption.label);
   };
 
-  const inheritedFromRoot = item.dashboardId === -1 && folderInfo && folderInfo.id === 0;
+  const inheritedFromRoot = item.dashboardId === -1 && !item.inherited;
 
   return (
     <tr className={setClassNameHelper(item.inherited)}>
diff --git a/public/app/stores/PermissionsStore/PermissionsStore.jest.ts b/public/app/stores/PermissionsStore/PermissionsStore.jest.ts
index d6a20e25846..6d88401e0d6 100644
--- a/public/app/stores/PermissionsStore/PermissionsStore.jest.ts
+++ b/public/app/stores/PermissionsStore/PermissionsStore.jest.ts
@@ -16,6 +16,7 @@ describe('PermissionsStore', () => {
           permissionName: 'View',
           teamId: 1,
           team: 'MyTestTeam',
+          inherited: true,
         },
         {
           id: 5,
diff --git a/public/app/stores/PermissionsStore/PermissionsStore.ts b/public/app/stores/PermissionsStore/PermissionsStore.ts
index 833d1bdaac7..95d63c8527a 100644
--- a/public/app/stores/PermissionsStore/PermissionsStore.ts
+++ b/public/app/stores/PermissionsStore/PermissionsStore.ts
@@ -224,8 +224,6 @@ const prepareServerResponse = (response, dashboardId: number, isFolder: boolean,
 };
 
 const prepareItem = (item, dashboardId: number, isFolder: boolean, isInRoot: boolean) => {
-  item.inherited = !isFolder && !isInRoot && dashboardId !== item.dashboardId;
-
   item.sortRank = 0;
   if (item.userId > 0) {
     item.name = item.userLogin;