diff --git a/libs/angular/src/vault/services/custom-nudges-services/empty-vault-nudge.service.ts b/libs/angular/src/vault/services/custom-nudges-services/empty-vault-nudge.service.ts
index 9763c20299..3122bdac2e 100644
--- a/libs/angular/src/vault/services/custom-nudges-services/empty-vault-nudge.service.ts
+++ b/libs/angular/src/vault/services/custom-nudges-services/empty-vault-nudge.service.ts
@@ -44,18 +44,22 @@ export class EmptyVaultNudgeService extends DefaultSingleNudgeService {
         const hasManageCollections = collections.some(
           (c) => c.manage && orgIds.has(c.organizationId),
         );
-        // Do not show nudge when
-        // user has previously dismissed nudge
-        // OR
-        // user belongs to an organization and cannot create collections || manage collections
-        if (
-          nudgeStatus.hasBadgeDismissed ||
-          nudgeStatus.hasSpotlightDismissed ||
-          hasManageCollections ||
-          canCreateCollections
-        ) {
+
+        // When the user has dismissed the nudge or spotlight, return the nudge status directly
+        if (nudgeStatus.hasBadgeDismissed || nudgeStatus.hasSpotlightDismissed) {
           return of(nudgeStatus);
         }
+
+        // When the user belongs to an organization and cannot create collections or manage collections,
+        // hide the nudge and spotlight
+        if (!hasManageCollections && !canCreateCollections) {
+          return of({
+            hasSpotlightDismissed: true,
+            hasBadgeDismissed: true,
+          });
+        }
+
+        // Otherwise, return the nudge status based on the vault contents
         return of({
           hasSpotlightDismissed: vaultHasContents,
           hasBadgeDismissed: vaultHasContents,