diff --git a/packages/hoppscotch-common/src/components/collections/index.vue b/packages/hoppscotch-common/src/components/collections/index.vue
index f0109c810..cc84061d4 100644
--- a/packages/hoppscotch-common/src/components/collections/index.vue
+++ b/packages/hoppscotch-common/src/components/collections/index.vue
@@ -194,6 +194,8 @@ import {
 import TeamCollectionAdapter from "~/helpers/teams/TeamCollectionAdapter"
 import {
   HoppCollection,
+  HoppRESTAuth,
+  HoppRESTHeaders,
   HoppRESTRequest,
   makeCollection,
 } from "@hoppscotch/data"
@@ -290,7 +292,7 @@ const editingRequestIndex = ref<number | null>(null)
 const editingRequestID = ref<string | null>(null)
 
 const editingProperties = ref<{
-  collection: HoppCollection | TeamCollection | null
+  collection: Omit<HoppCollection, "v"> | TeamCollection | null
   isRootCollection: boolean
   path: string
   inheritedProperties?: HoppInheritedProperty
@@ -2011,7 +2013,7 @@ const editProperties = (payload: {
         parentID: "",
         parentName: "",
         inheritedAuth: {
-          authType: "none",
+          authType: "inherit",
           authActive: true,
         },
       },
@@ -2045,17 +2047,21 @@ const editProperties = (payload: {
   } else if (hasTeamWriteAccess.value) {
     const parentIndex = collectionIndex.split("/").slice(0, -1).join("/") // remove last folder to get parent folder
 
-    const data = collection.data ? JSON.parse(collection.data) : null
+    const data = (collection as TeamCollection).data
+      ? JSON.parse((collection as TeamCollection).data ?? "")
+      : null
 
-    let inheritedProperties = {}
+    let inheritedProperties = undefined
     let coll = {
       id: collection.id,
-      name: collection.title,
+      name: (collection as TeamCollection).title,
       auth: {
-        authType: "none",
+        authType: "inherit",
         authActive: true,
-      },
-      headers: [],
+      } as HoppRESTAuth,
+      headers: [] as HoppRESTHeaders,
+      folders: null,
+      requests: null,
     }
 
     if (parentIndex) {
@@ -2072,7 +2078,7 @@ const editProperties = (payload: {
       coll = {
         ...coll,
         auth: data.auth,
-        headers: data.headers,
+        headers: data.headers as HoppRESTHeaders,
       }
     }
 
@@ -2124,11 +2130,11 @@ const setCollectionProperties = (newCollection: {
         (err: GQLError<string>) => {
           toast.error(`${getErrorMessage(err)}`)
         },
-        () => {
-          const { auth, headers } =
-            teamCollectionAdapter.cascadeParentCollectionForHeaderAuth(path)
-
+        async () => {
           nextTick(() => {
+            const { auth, headers } =
+              teamCollectionAdapter.cascadeParentCollectionForHeaderAuth(path)
+
             updateInheritedPropertiesForAffectedRequests(
               path,
               {
diff --git a/packages/hoppscotch-common/src/helpers/collection/collection.ts b/packages/hoppscotch-common/src/helpers/collection/collection.ts
index 0defe1996..08804da6d 100644
--- a/packages/hoppscotch-common/src/helpers/collection/collection.ts
+++ b/packages/hoppscotch-common/src/helpers/collection/collection.ts
@@ -120,7 +120,6 @@ export function updateInheritedPropertiesForAffectedRequests(
     type === "rest" ? getService(RESTTabService) : getService(GQLTabService)
 
   let tabs
-
   if (workspace === "personal") {
     tabs = tabService.getTabsRefTo((tab) => {
       return (
diff --git a/packages/hoppscotch-common/src/helpers/teams/TeamCollectionAdapter.ts b/packages/hoppscotch-common/src/helpers/teams/TeamCollectionAdapter.ts
index 9bcddc022..ad2042721 100644
--- a/packages/hoppscotch-common/src/helpers/teams/TeamCollectionAdapter.ts
+++ b/packages/hoppscotch-common/src/helpers/teams/TeamCollectionAdapter.ts
@@ -1066,31 +1066,40 @@ export default class NewTeamCollectionAdapter {
       }
 
       const data: {
-        auth?: HoppRESTAuth
-        headers?: HoppRESTHeader[]
-      } = parentFolder.data ? JSON.parse(parentFolder.data) : null
-      if (!data) return { auth, headers }
+        auth: HoppRESTAuth
+        headers: HoppRESTHeader[]
+      } = parentFolder.data
+        ? JSON.parse(parentFolder.data)
+        : {
+            auth: null,
+            headers: null,
+          }
+
+      if (!data.auth) {
+        data.auth = {
+          authType: "inherit",
+          authActive: true,
+        }
+        auth.parentID = folderPath ?? parentFolder.id
+        auth.parentName = parentFolder.title
+      }
+
+      if (!data.headers) data.headers = []
 
       const parentFolderAuth = data.auth
       const parentFolderHeaders = data.headers
 
-      if (parentFolderAuth?.authType === "inherit") {
+      if (parentFolderAuth?.authType === "inherit" && path.length === 1) {
         auth = {
-          parentID: parentFolder.id ?? folderPath,
+          parentID: folderPath ?? parentFolder.id,
           parentName: parentFolder.title,
-          inheritedAuth: {
-            authType: "none",
-            authActive: true,
-          },
+          inheritedAuth: auth.inheritedAuth,
         }
       }
 
-      if (
-        parentFolderAuth?.authType !== "inherit" &&
-        parentFolderAuth?.authActive
-      ) {
+      if (parentFolderAuth?.authType !== "inherit") {
         auth = {
-          parentID: parentFolder.id ?? folderPath,
+          parentID: folderPath ?? parentFolder.id,
           parentName: parentFolder.title,
           inheritedAuth: parentFolderAuth,
         }
diff --git a/packages/hoppscotch-common/src/newstore/collections.ts b/packages/hoppscotch-common/src/newstore/collections.ts
index 87458cc48..11efea540 100644
--- a/packages/hoppscotch-common/src/newstore/collections.ts
+++ b/packages/hoppscotch-common/src/newstore/collections.ts
@@ -74,8 +74,8 @@ export function cascadeParentCollectionForHeaderAuth(
     parentID: folderPath ?? "",
     parentName: "",
     inheritedAuth: {
-      authType: "inherit",
-      authActive: false,
+      authType: "none",
+      authActive: true,
     },
   }
   const headers: HoppInheritedProperty["headers"] = []
@@ -106,14 +106,12 @@ export function cascadeParentCollectionForHeaderAuth(
     const parentFolderAuth = parentFolder.auth
     const parentFolderHeaders = parentFolder.headers
 
-    if (parentFolderAuth?.authType === "inherit") {
+    // check if the parent folder has authType 'inherit' and if it is the root folder
+    if (parentFolderAuth?.authType === "inherit" && path.length === 1) {
       auth = {
         parentID: folderPath,
         parentName: parentFolder.name,
-        inheritedAuth: {
-          authType: "none",
-          authActive: true,
-        },
+        inheritedAuth: auth.inheritedAuth,
       }
     }