diff --git a/apps/browser/src/vault/popup/services/vault-popup-items.service.spec.ts b/apps/browser/src/vault/popup/services/vault-popup-items.service.spec.ts
index 63cd0d90d05..28bf710ec60 100644
--- a/apps/browser/src/vault/popup/services/vault-popup-items.service.spec.ts
+++ b/apps/browser/src/vault/popup/services/vault-popup-items.service.spec.ts
@@ -19,6 +19,10 @@ import { CipherType } from "@bitwarden/common/vault/enums";
 import { CipherData } from "@bitwarden/common/vault/models/data/cipher.data";
 import { LocalData } from "@bitwarden/common/vault/models/data/local.data";
 import { CipherView } from "@bitwarden/common/vault/models/view/cipher.view";
+import {
+  RestrictedCipherType,
+  RestrictedItemTypesService,
+} from "@bitwarden/common/vault/services/restricted-item-types.service";
 
 import { InlineMenuFieldQualificationService } from "../../../autofill/services/inline-menu-field-qualification.service";
 import { BrowserApi } from "../../../platform/browser/browser-api";
@@ -58,6 +62,11 @@ describe("VaultPopupItemsService", () => {
   const userId = Utils.newGuid() as UserId;
   const accountServiceMock = mockAccountServiceWith(userId);
 
+  const restrictedItemTypesService = {
+    restricted$: new BehaviorSubject<RestrictedCipherType[]>([]),
+    isCipherRestricted: jest.fn().mockReturnValue(false),
+  };
+
   beforeEach(() => {
     allCiphers = cipherFactory(10);
     const cipherList = Object.values(allCiphers);
@@ -154,6 +163,10 @@ describe("VaultPopupItemsService", () => {
           useValue: inlineMenuFieldQualificationServiceMock,
         },
         { provide: PopupViewCacheService, useValue: viewCacheService },
+        {
+          provide: RestrictedItemTypesService,
+          useValue: restrictedItemTypesService,
+        },
       ],
     });
 
diff --git a/apps/browser/src/vault/popup/services/vault-popup-items.service.ts b/apps/browser/src/vault/popup/services/vault-popup-items.service.ts
index 20bdbd2eefe..d47abb9e6b3 100644
--- a/apps/browser/src/vault/popup/services/vault-popup-items.service.ts
+++ b/apps/browser/src/vault/popup/services/vault-popup-items.service.ts
@@ -31,6 +31,7 @@ import { SearchService } from "@bitwarden/common/vault/abstractions/search.servi
 import { VaultSettingsService } from "@bitwarden/common/vault/abstractions/vault-settings/vault-settings.service";
 import { CipherType } from "@bitwarden/common/vault/enums";
 import { CipherView } from "@bitwarden/common/vault/models/view/cipher.view";
+import { RestrictedItemTypesService } from "@bitwarden/common/vault/services/restricted-item-types.service";
 
 import { runInsideAngular } from "../../../platform/browser/run-inside-angular.operator";
 import { PopupViewCacheService } from "../../../platform/popup/view-cache/popup-view-cache.service";
@@ -107,9 +108,16 @@ export class VaultPopupItemsService {
           combineLatest([
             Utils.asyncToObservable(() => this.cipherService.getAllDecrypted(userId)),
             this.cipherService.failedToDecryptCiphers$(userId),
+            this.restrictedItemTypesService.restricted$.pipe(startWith([])),
           ]),
         ),
-        map(([ciphers, failedToDecryptCiphers]) => [...(failedToDecryptCiphers || []), ...ciphers]),
+        map(([ciphers, failedToDecryptCiphers, restrictions]) => {
+          const allCiphers = [...(failedToDecryptCiphers || []), ...ciphers];
+
+          return allCiphers.filter(
+            (cipher) => !this.restrictedItemTypesService.isCipherRestricted(cipher, restrictions),
+          );
+        }),
       ),
     ),
     shareReplay({ refCount: true, bufferSize: 1 }),
@@ -307,6 +315,7 @@ export class VaultPopupItemsService {
     private syncService: SyncService,
     private accountService: AccountService,
     private ngZone: NgZone,
+    private restrictedItemTypesService: RestrictedItemTypesService,
   ) {}
 
   applyFilter(newSearchText: string) {
diff --git a/apps/browser/src/vault/popup/services/vault-popup-list-filters.service.spec.ts b/apps/browser/src/vault/popup/services/vault-popup-list-filters.service.spec.ts
index baa34d7bdbe..1e56fd4d352 100644
--- a/apps/browser/src/vault/popup/services/vault-popup-list-filters.service.spec.ts
+++ b/apps/browser/src/vault/popup/services/vault-popup-list-filters.service.spec.ts
@@ -486,10 +486,6 @@ describe("VaultPopupListFiltersService", () => {
       { type: CipherType.SecureNote, collectionIds: [], organizationId: null },
     ] as CipherView[];
 
-    beforeEach(() => {
-      restrictedItemTypesService.restricted$.next([]);
-    });
-
     it("filters by cipherType", (done) => {
       service.filterFunction$.subscribe((filterFunction) => {
         expect(filterFunction(ciphers)).toEqual([ciphers[0]]);
diff --git a/apps/browser/src/vault/popup/services/vault-popup-list-filters.service.ts b/apps/browser/src/vault/popup/services/vault-popup-list-filters.service.ts
index dde11aac5f7..12d0c445b4c 100644
--- a/apps/browser/src/vault/popup/services/vault-popup-list-filters.service.ts
+++ b/apps/browser/src/vault/popup/services/vault-popup-list-filters.service.ts
@@ -215,10 +215,9 @@ export class VaultPopupListFiltersService {
    */
   filterFunction$: Observable<(ciphers: CipherView[]) => CipherView[]> = combineLatest([
     this.filters$,
-    this.restrictedItemTypesService.restricted$.pipe(startWith([])),
   ]).pipe(
     map(
-      ([filters, restrictions]) =>
+      ([filters]) =>
         (ciphers: CipherView[]) =>
           ciphers.filter((cipher) => {
             // Vault popup lists never shows deleted ciphers
@@ -226,11 +225,6 @@ export class VaultPopupListFiltersService {
               return false;
             }
 
-            // Check if cipher type is restricted (with organization exemptions)
-            if (this.restrictedItemTypesService.isCipherRestricted(cipher, restrictions)) {
-              return false;
-            }
-
             if (filters.cipherType !== null && cipher.type !== filters.cipherType) {
               return false;
             }