diff --git a/codex-rs/config/src/config_toml.rs b/codex-rs/config/src/config_toml.rs
index 0311482cf..7c060cadb 100644
--- a/codex-rs/config/src/config_toml.rs
+++ b/codex-rs/config/src/config_toml.rs
@@ -728,29 +728,23 @@ impl ConfigToml {
         active_project: Option<&ProjectConfig>,
         permission_profile_constraint: Option<&crate::Constrained<PermissionProfile>>,
     ) -> PermissionProfile {
-        let sandbox_mode_was_explicit =
-            sandbox_mode_override.is_some() || self.sandbox_mode.is_some();
-        let resolved_sandbox_mode = sandbox_mode_override
-            .or(self.sandbox_mode)
-            .or(if sandbox_mode_was_explicit {
-                None
-            } else {
+        let configured_sandbox_mode = sandbox_mode_override.or(self.sandbox_mode);
+        let resolved_sandbox_mode = configured_sandbox_mode
+            .or_else(|| {
                 // If no sandbox_mode is set but this directory has a trust decision,
                 // default to workspace-write except on unsandboxed Windows where we
                 // default to read-only.
-                active_project.and_then(|p| {
-                    if p.is_trusted() || p.is_untrusted() {
+                active_project
+                    .filter(|project| project.is_trusted() || project.is_untrusted())
+                    .map(|_| {
                         if cfg!(target_os = "windows")
                             && windows_sandbox_level == WindowsSandboxLevel::Disabled
                         {
-                            Some(SandboxMode::ReadOnly)
+                            SandboxMode::ReadOnly
                         } else {
-                            Some(SandboxMode::WorkspaceWrite)
+                            SandboxMode::WorkspaceWrite
                         }
-                    } else {
-                        None
-                    }
-                })
+                    })
             })
             .unwrap_or_default();
         let effective_sandbox_mode = if cfg!(target_os = "windows")
@@ -788,7 +782,7 @@ impl ConfigToml {
             },
             SandboxMode::DangerFullAccess => PermissionProfile::Disabled,
         };
-        if !sandbox_mode_was_explicit
+        if configured_sandbox_mode.is_none()
             && let Some(constraint) = permission_profile_constraint
             && let Err(err) = constraint.can_set(&permission_profile)
         {
diff --git a/codex-rs/core/src/config/config_tests.rs b/codex-rs/core/src/config/config_tests.rs
index 192e449ff..8bc33bbb4 100644
--- a/codex-rs/core/src/config/config_tests.rs
+++ b/codex-rs/core/src/config/config_tests.rs
@@ -2548,6 +2548,65 @@ async fn empty_config_defaults_to_builtin_profile_for_trusted_project() -> std::
     Ok(())
 }
 
+#[tokio::test]
+async fn empty_config_defaults_to_builtin_profile_for_untrusted_project() -> std::io::Result<()> {
+    let codex_home = TempDir::new()?;
+    let cwd = TempDir::new()?;
+    let project_key = cwd.path().to_string_lossy().to_string();
+
+    let config = Config::load_from_base_config_with_overrides(
+        ConfigToml {
+            projects: Some(HashMap::from([(
+                project_key,
+                ProjectConfig {
+                    trust_level: Some(TrustLevel::Untrusted),
+                },
+            )])),
+            ..Default::default()
+        },
+        ConfigOverrides {
+            cwd: Some(cwd.path().to_path_buf()),
+            ..Default::default()
+        },
+        codex_home.abs(),
+    )
+    .await?;
+
+    let policy = config.permissions.file_system_sandbox_policy();
+    assert_eq!(
+        config
+            .permissions
+            .active_permission_profile()
+            .as_ref()
+            .map(|active| active.id.as_str()),
+        Some(if cfg!(target_os = "windows") {
+            BUILT_IN_PERMISSION_PROFILE_READ_ONLY
+        } else {
+            BUILT_IN_PERMISSION_PROFILE_WORKSPACE
+        })
+    );
+    assert!(
+        policy.can_read_path_with_cwd(cwd.path(), cwd.path()),
+        "expected untrusted project fallback to allow reads, policy: {policy:?}"
+    );
+    if cfg!(target_os = "windows") {
+        assert!(
+            !policy.can_write_path_with_cwd(cwd.path(), cwd.path()),
+            "expected untrusted project fallback to stay read-only without Windows sandbox support, policy: {policy:?}"
+        );
+    } else {
+        assert!(
+            policy.can_write_path_with_cwd(cwd.path(), cwd.path()),
+            "expected untrusted project fallback to use :workspace, policy: {policy:?}"
+        );
+        assert!(
+            !policy.can_write_path_with_cwd(&cwd.path().join(".codex"), cwd.path()),
+            "expected :workspace metadata carveouts, policy: {policy:?}"
+        );
+    }
+    Ok(())
+}
+
 #[tokio::test]
 async fn implicit_builtin_workspace_profile_preserves_sandbox_workspace_write_settings()
 -> std::io::Result<()> {