diff --git a/packages/frontend/@n8n/design-system/src/components/N8nAiModelSelectorDropdown/AiModelSelectorDropdown.test.ts b/packages/frontend/@n8n/design-system/src/components/N8nAiModelSelectorDropdown/AiModelSelectorDropdown.test.ts
index 8d9f74380ab..a4b4a08c36b 100644
--- a/packages/frontend/@n8n/design-system/src/components/N8nAiModelSelectorDropdown/AiModelSelectorDropdown.test.ts
+++ b/packages/frontend/@n8n/design-system/src/components/N8nAiModelSelectorDropdown/AiModelSelectorDropdown.test.ts
@@ -121,6 +121,53 @@ describe('N8nAiModelSelectorDropdown', () => {
 		expect(getByText('Connected')).toBeVisible();
 	});
 
+	it('shows the restricted badge in the trigger instead of the credential name', () => {
+		const { getByTestId, queryByTestId } = render(N8nAiModelSelectorDropdown, {
+			props: {
+				...defaultProps,
+				selectedCredentialName: 'Production OpenAI credential',
+				restrictedLabel: 'Restricted',
+			},
+		});
+
+		expect(getByTestId('ai-model-selector-restricted-badge')).toHaveTextContent('Restricted');
+		expect(queryByTestId('ai-model-selector-credential')).not.toBeInTheDocument();
+	});
+
+	it('hides the restricted badge while loading', () => {
+		const { queryByTestId } = render(N8nAiModelSelectorDropdown, {
+			props: { ...defaultProps, restrictedLabel: 'Restricted', isLoading: true },
+		});
+
+		expect(queryByTestId('ai-model-selector-restricted-badge')).not.toBeInTheDocument();
+	});
+
+	it('renders the scope line and lock on a restricted item', async () => {
+		const { getByTestId } = render(N8nAiModelSelectorDropdown, {
+			props: {
+				...defaultProps,
+				items: [
+					...baseItems,
+					{
+						id: 'anthropic',
+						label: 'Anthropic',
+						disabled: true,
+						data: { restrictedLabel: 'Restricted on this instance' },
+					},
+				],
+			},
+		});
+
+		await userEvent.click(getByTestId('ai-model-selector'));
+
+		await waitFor(() =>
+			expect(getByTestId('ai-model-selector-restriction')).toHaveTextContent(
+				'Restricted on this instance',
+			),
+		);
+		expect(getByTestId('ai-model-selector-restricted-icon')).toBeInTheDocument();
+	});
+
 	it('emits select and search events', async () => {
 		const { getByTestId, getByText, emitted } = render(N8nAiModelSelectorDropdown, {
 			props: {
diff --git a/packages/frontend/@n8n/design-system/src/components/N8nAiModelSelectorDropdown/AiModelSelectorDropdown.types.ts b/packages/frontend/@n8n/design-system/src/components/N8nAiModelSelectorDropdown/AiModelSelectorDropdown.types.ts
index a4c9954d0e2..a106035097a 100644
--- a/packages/frontend/@n8n/design-system/src/components/N8nAiModelSelectorDropdown/AiModelSelectorDropdown.types.ts
+++ b/packages/frontend/@n8n/design-system/src/components/N8nAiModelSelectorDropdown/AiModelSelectorDropdown.types.ts
@@ -16,6 +16,8 @@ export interface AiModelSelectorMenuItemData {
 	loading?: boolean;
 	/** Trailing "✓ <label>" marker, e.g. for the provider currently in use. */
 	connectedLabel?: string;
+	/** A policy blocks this item; the label is the scope line rendered under the item label. */
+	restrictedLabel?: string;
 }
 
 export type AiModelSelectorMenuItem<
diff --git a/packages/frontend/@n8n/design-system/src/components/N8nAiModelSelectorDropdown/AiModelSelectorDropdown.vue b/packages/frontend/@n8n/design-system/src/components/N8nAiModelSelectorDropdown/AiModelSelectorDropdown.vue
index 6c1dfece328..965823b777a 100644
--- a/packages/frontend/@n8n/design-system/src/components/N8nAiModelSelectorDropdown/AiModelSelectorDropdown.vue
+++ b/packages/frontend/@n8n/design-system/src/components/N8nAiModelSelectorDropdown/AiModelSelectorDropdown.vue
@@ -34,6 +34,7 @@ const {
 	selectedCredentialName,
 	credentialsMissing = false,
 	credentialsMissingLabel,
+	restrictedLabel,
 	noMatchLabel,
 	showBorder = true,
 	disabled = false,
@@ -52,6 +53,8 @@ const {
 	credentialsMissing?: boolean;
 	/** Text shown when credentials are required but missing. */
 	credentialsMissingLabel?: string;
+	/** Badge shown in the trigger when a policy blocks the selected item. */
+	restrictedLabel?: string;
 	/** Empty-state text shown when search returns no matching items. */
 	noMatchLabel: string;
 	/** Whether the trigger button should render with a border. */
@@ -134,7 +137,16 @@ defineExpose({
 						</N8nText>
 						<span v-if="isLoading" :class="$style.loading"></span>
 						<N8nBadge
-							v-if="credentialsMissing && !isLoading"
+							v-else-if="restrictedLabel"
+							variant="danger"
+							size="small"
+							:class="$style.credsBadge"
+							data-test-id="ai-model-selector-restricted-badge"
+						>
+							{{ restrictedLabel }}
+						</N8nBadge>
+						<N8nBadge
+							v-else-if="credentialsMissing"
 							variant="danger"
 							size="small"
 							:class="$style.credsBadge"
@@ -142,7 +154,7 @@ defineExpose({
 							{{ resolvedCredentialsMissingLabel }}
 						</N8nBadge>
 						<N8nText
-							v-else-if="selectedCredentialName && !isLoading"
+							v-else-if="selectedCredentialName"
 							bold
 							color="text-light"
 							:data-test-id="credentialDataTestId"
@@ -217,8 +229,19 @@ defineExpose({
 		</template>
 
 		<template #item-trailing="{ item, ui }">
+			<span v-if="item.data?.restrictedLabel" :class="[$style.restricted, ui.class]">
+				<N8nText size="xsmall" color="text-light" data-test-id="ai-model-selector-restriction">
+					{{ item.data.restrictedLabel }}
+				</N8nText>
+				<N8nIcon
+					icon="lock"
+					size="xsmall"
+					color="text-light"
+					data-test-id="ai-model-selector-restricted-icon"
+				/>
+			</span>
 			<N8nTooltip
-				v-if="item.data?.description"
+				v-else-if="item.data?.description"
 				:content="truncateBeforeLast(item.data.description, 320, 0)"
 				:class="ui.class"
 				placement="right"
@@ -330,7 +353,8 @@ defineExpose({
 	margin-inline: var(--spacing--5xs);
 }
 
-.connected {
+.connected,
+.restricted {
 	display: inline-flex;
 	align-items: center;
 	gap: var(--spacing--4xs);
@@ -338,6 +362,10 @@ defineExpose({
 	white-space: nowrap;
 }
 
+.restricted {
+	padding-left: var(--spacing--md);
+}
+
 .connectedIcon {
 	color: var(--color--success);
 }
diff --git a/packages/frontend/@n8n/i18n/src/locales/en.json b/packages/frontend/@n8n/i18n/src/locales/en.json
index 6fc25f60ef4..c4ecbe14ef9 100644
--- a/packages/frontend/@n8n/i18n/src/locales/en.json
+++ b/packages/frontend/@n8n/i18n/src/locales/en.json
@@ -5739,6 +5739,7 @@
 	"agents.modelSelector.connectTo": "Connect to {provider}",
 	"agents.modelSelector.models": "Models",
 	"agents.modelSelector.credentialsMissing": "Credentials missing",
+	"agents.modelSelector.restricted": "Restricted",
 	"agents.modelSelector.freeCredits.label": "Use free OpenAI credits",
 	"agents.modelSelector.freeCredits.badge": "free credits",
 	"agents.modelSelector.freeCredits.description": "Get {credits} free OpenAI API credits. Try it with gpt-5-mini.",
diff --git a/packages/frontend/editor-ui/src/features/agents/__tests__/AgentBuilderEditorColumn.spec.ts b/packages/frontend/editor-ui/src/features/agents/__tests__/AgentBuilderEditorColumn.spec.ts
index 899e6729698..9372cb6fd72 100644
--- a/packages/frontend/editor-ui/src/features/agents/__tests__/AgentBuilderEditorColumn.spec.ts
+++ b/packages/frontend/editor-ui/src/features/agents/__tests__/AgentBuilderEditorColumn.spec.ts
@@ -1,4 +1,5 @@
 import { createTestingPinia } from '@pinia/testing';
+import { useTypeAvailabilityPoliciesStore } from '@n8n/frontend-module-type-availability-policies';
 import { useAgentEvalsStore } from '../agentEvals.store';
 import { describe, it, expect, vi, beforeEach } from 'vitest';
 import { flushPromises, mount } from '@vue/test-utils';
@@ -237,6 +238,12 @@ describe('AgentBuilderEditorColumn', () => {
 		expect(tabs.text()).not.toContain('Raw');
 	});
 
+	it('loads the type availability policies for the project', async () => {
+		await mountColumn();
+
+		expect(useTypeAvailabilityPoliciesStore().fetchForProject).toHaveBeenCalledWith('project-1');
+	});
+
 	it('does not render per-tab headings or descriptions for Sessions and Settings', async () => {
 		const sessionsWrapper = await mountColumn({ activeMainTab: 'sessions' });
 		const settingsWrapper = await mountColumn({ activeMainTab: 'settings' });
diff --git a/packages/frontend/editor-ui/src/features/agents/__tests__/AgentModelSelector.spec.ts b/packages/frontend/editor-ui/src/features/agents/__tests__/AgentModelSelector.spec.ts
index d54759809b2..db372c65fb9 100644
--- a/packages/frontend/editor-ui/src/features/agents/__tests__/AgentModelSelector.spec.ts
+++ b/packages/frontend/editor-ui/src/features/agents/__tests__/AgentModelSelector.spec.ts
@@ -2,6 +2,7 @@ import { flushPromises, mount, type VueWrapper } from '@vue/test-utils';
 import { beforeEach, describe, expect, it, vi } from 'vitest';
 
 import { AI_GATEWAY_MANAGED_TAG } from '@n8n/api-types';
+import type * as typeAvailabilityPolicies from '@n8n/frontend-module-type-availability-policies';
 import type * as permissions from '@n8n/permissions';
 
 import type {
@@ -29,6 +30,7 @@ type TestMenuItem = {
 		credentialType?: string;
 		provider?: string;
 		connectedLabel?: string;
+		restrictedLabel?: string;
 	};
 };
 
@@ -45,6 +47,9 @@ const freeAiCreditsState = vi.hoisted(() => ({
 	claimCreditsAndGetCredential: vi.fn(),
 }));
 const canCreateCredentials = vi.hoisted(() => ({ value: true }));
+const restrictedCredentialTypes = vi.hoisted(() => ({
+	value: {} as Record<string, 'instance' | 'project'>,
+}));
 const openNewCredential = vi.hoisted(() => vi.fn());
 const openModalWithData = vi.hoisted(() => vi.fn());
 const aiGatewayState = vi.hoisted(() => ({
@@ -79,6 +84,9 @@ const baseText = vi.hoisted(() =>
 				'agents.modelSelector.freeCredits.description':
 					'Get {credits} free OpenAI API credits. Try it with gpt-5-mini.',
 				'generic.loadingEllipsis': 'Loading...',
+				'agents.modelSelector.restricted': 'Restricted',
+				'typeAvailabilityPolicies.restrictedNode.scope.instance': 'Restricted on this instance',
+				'typeAvailabilityPolicies.restrictedNode.scope.project': 'Restricted in this project',
 			}[key] ?? key;
 
 		return Object.entries(options?.interpolate ?? {}).reduce(
@@ -94,6 +102,16 @@ vi.mock('@n8n/i18n', () => ({
 	}),
 }));
 
+vi.mock('@n8n/frontend-module-type-availability-policies', async (importOriginal) => ({
+	...(await importOriginal<typeof typeAvailabilityPolicies>()),
+	useTypeAvailabilityPoliciesStore: () => ({
+		getCredentialTypeAvailability: (name: string) => {
+			const scope = restrictedCredentialTypes.value[name];
+			return scope ? { name, available: false, scope } : { name, available: true };
+		},
+	}),
+}));
+
 vi.mock('@n8n/permissions', async (importOriginal) => ({
 	...(await importOriginal<typeof permissions>()),
 	getResourcePermissions: () => ({ credential: { create: canCreateCredentials.value } }),
@@ -110,6 +128,7 @@ vi.mock('@n8n/design-system', async () => {
 				'selectedLabel',
 				'selectedCredentialName',
 				'credentialsMissing',
+				'restrictedLabel',
 				'noMatchLabel',
 				'disabled',
 				'dataTestId',
@@ -265,6 +284,7 @@ describe('AgentModelSelector', () => {
 		freeAiCreditsState.claimingCredits.value = false;
 		freeAiCreditsState.claimCreditsAndGetCredential.mockReset();
 		canCreateCredentials.value = true;
+		restrictedCredentialTypes.value = {};
 		aiGatewayState.isEnabled.value = false;
 		aiGatewayState.supportedTypes = new Set<string>();
 		aiGatewayState.balance.value = undefined;
@@ -337,6 +357,65 @@ describe('AgentModelSelector', () => {
 		expect(items.filter((item) => item.data?.connectedLabel).length).toBe(1);
 	});
 
+	it('disables a provider whose credential type is restricted on the instance', async () => {
+		restrictedCredentialTypes.value = { openAiApi: 'instance' };
+
+		const wrapper = await mountSelector({ anthropic: null });
+
+		expect(getProviderItem(wrapper, 'openai')).toMatchObject({
+			disabled: true,
+			data: { restrictedLabel: 'Restricted on this instance' },
+		});
+		expect(getProviderItem(wrapper, 'openai')?.children).toBeUndefined();
+		expect(getProviderItem(wrapper, 'anthropic')?.children?.length).toBeGreaterThan(0);
+	});
+
+	it('shows the project scope line for a project-level restriction', async () => {
+		restrictedCredentialTypes.value = { openAiApi: 'project' };
+
+		const wrapper = await mountSelector({ anthropic: null });
+
+		expect(getProviderItem(wrapper, 'openai')?.data?.restrictedLabel).toBe(
+			'Restricted in this project',
+		);
+	});
+
+	it('keeps a multi-credential-type provider usable while one type is still allowed', async () => {
+		restrictedCredentialTypes.value = { azureOpenAiApi: 'instance' };
+
+		const wrapper = await mountSelector({ anthropic: null });
+
+		expect(getProviderItem(wrapper, 'azure-openai')?.disabled).toBeFalsy();
+	});
+
+	it('disables a multi-credential-type provider once every type is restricted', async () => {
+		restrictedCredentialTypes.value = {
+			azureOpenAiApi: 'instance',
+			azureEntraCognitiveServicesOAuth2Api: 'instance',
+		};
+
+		const wrapper = await mountSelector({ anthropic: null });
+
+		expect(getProviderItem(wrapper, 'azure-openai')?.disabled).toBe(true);
+	});
+
+	it('shows the restricted badge for a selected restricted provider and pins it without the connected marker', async () => {
+		restrictedCredentialTypes.value = { anthropicApi: 'instance' };
+
+		const wrapper = await mountSelector({ anthropic: 'anthropic-cred' });
+		const items = getDropdown(wrapper).props('items') as TestMenuItem[];
+
+		expect(getDropdown(wrapper).props('restrictedLabel')).toBe('Restricted');
+		expect(items[0]).toMatchObject({ id: 'anthropic', disabled: true });
+		expect(items[0].data?.connectedLabel).toBeUndefined();
+	});
+
+	it('shows no restricted badge for an unrestricted selection', async () => {
+		const wrapper = await mountSelector({ anthropic: 'anthropic-cred' });
+
+		expect(getDropdown(wrapper).props('restrictedLabel')).toBeUndefined();
+	});
+
 	it('does not mark anything as connected when there is no selected model', async () => {
 		const wrapper = await mountSelector({ anthropic: null }, { selectedModel: null });
 		const items = getDropdown(wrapper).props('items') as TestMenuItem[];
diff --git a/packages/frontend/editor-ui/src/features/agents/components/AgentBuilderEditorColumn.vue b/packages/frontend/editor-ui/src/features/agents/components/AgentBuilderEditorColumn.vue
index 616465e2930..c33a178a116 100644
--- a/packages/frontend/editor-ui/src/features/agents/components/AgentBuilderEditorColumn.vue
+++ b/packages/frontend/editor-ui/src/features/agents/components/AgentBuilderEditorColumn.vue
@@ -1,5 +1,5 @@
 <script setup lang="ts">
-import { computed, ref } from 'vue';
+import { computed, ref, watch } from 'vue';
 import { N8nCard, N8nIcon, N8nTabs, N8nText } from '@n8n/design-system';
 import { useI18n } from '@n8n/i18n';
 import type { AgentConfigValidationIssue, AgentFileDto } from '@n8n/api-types';
@@ -14,6 +14,7 @@ import type {
 } from '../types';
 import type { ToolOpenTarget, ToolPickerMode } from './AgentCapabilitiesSection.types';
 import { useSettingsStore } from '@n8n/stores/settings.store';
+import { useTypeAvailabilityPoliciesStore } from '@n8n/frontend-module-type-availability-policies';
 import AgentSessionsListView from '../views/AgentSessionsListView.vue';
 import AgentAdvancedPanel from './AgentAdvancedPanel.vue';
 import AgentBudgetPanel from './AgentBudgetPanel.vue';
@@ -74,6 +75,15 @@ const isMcpAvailable = computed(
 	() => settingsStore.isModuleActive('mcp') && !!settingsStore.moduleSettings.mcp?.mcpAccessEnabled,
 );
 
+const typeAvailabilityPoliciesStore = useTypeAvailabilityPoliciesStore();
+watch(
+	() => props.projectId,
+	(projectId) => {
+		if (projectId) void typeAvailabilityPoliciesStore.fetchForProject(projectId);
+	},
+	{ immediate: true },
+);
+
 const emit = defineEmits<{
 	'update:activeMainTab': [tab: AgentBuilderMainTab];
 	'update:config': [updates: Partial<AgentJsonConfig>, meta?: { source: 'auto' }];
diff --git a/packages/frontend/editor-ui/src/features/agents/components/AgentModelSelector.vue b/packages/frontend/editor-ui/src/features/agents/components/AgentModelSelector.vue
index 10104fd8683..3c47d8af07f 100644
--- a/packages/frontend/editor-ui/src/features/agents/components/AgentModelSelector.vue
+++ b/packages/frontend/editor-ui/src/features/agents/components/AgentModelSelector.vue
@@ -14,7 +14,11 @@ import { useProjectsStore } from '@/features/collaboration/projects/projects.sto
 import { useUIStore } from '@/app/stores/ui.store';
 import { useFreeAiCredits } from '@/app/composables/useFreeAiCredits';
 import { useAiGateway } from '@/app/composables/useAiGateway';
-import { AI_GATEWAY_MANAGED_TAG } from '@n8n/api-types';
+import { AI_GATEWAY_MANAGED_TAG, type CredentialTypeAvailability } from '@n8n/api-types';
+import {
+	SCOPE_LABEL_KEY,
+	useTypeAvailabilityPoliciesStore,
+} from '@n8n/frontend-module-type-availability-policies';
 import ModelSelectorTriggerIcon from './model-selector/ModelSelectorTriggerIcon.vue';
 import ModelSelectorItemLeadingIcon from './model-selector/ModelSelectorItemLeadingIcon.vue';
 import { buildMenuItemId, parseMenuItemId } from './model-selector/menuItemId';
@@ -87,6 +91,7 @@ const dropdownRef = useTemplateRef('dropdownRef');
 const credentialsStore = useCredentialsStore();
 const projectsStore = useProjectsStore();
 const uiStore = useUIStore();
+const typeAvailabilityPoliciesStore = useTypeAvailabilityPoliciesStore();
 const aiGateway = useAiGateway();
 const { ensureLoaded, getDefaultModelForPicker, getVerificationStatus } = useModelCatalog();
 const pendingDefaultCredential = ref<{
@@ -213,13 +218,41 @@ const freeOpenAiCreditsDescription = computed(() =>
 	}),
 );
 
+function getProviderRestriction(provider: AgentModelProvider): CredentialTypeAvailability | null {
+	const availabilities = getProviderCredentialTypes(provider).map((credentialType) =>
+		typeAvailabilityPoliciesStore.getCredentialTypeAvailability(credentialType),
+	);
+
+	return availabilities.every((availability) => !availability.available) ? availabilities[0] : null;
+}
+
+const restrictedLabel = computed(() =>
+	selectedModel && getProviderRestriction(selectedModel.provider)
+		? i18n.baseText('agents.modelSelector.restricted')
+		: undefined,
+);
+
 function providerToMenuItem(provider: AgentModelProvider): MenuItem {
 	const definition = AGENT_MODEL_PROVIDER_DEFINITIONS[provider];
+	const credentialTypes = getProviderCredentialTypes(provider);
+	const restriction = getProviderRestriction(provider);
+	if (restriction) {
+		return {
+			id: provider,
+			label: definition.displayName,
+			disabled: true,
+			data: {
+				provider,
+				credentialType: credentialTypes[0],
+				restrictedLabel: i18n.baseText(SCOPE_LABEL_KEY[restriction.scope ?? 'instance']),
+			},
+		};
+	}
+
 	const credentialOptions = getCredentialsForProvider(provider);
 	const selectedProviderCredentialId = credentials?.[provider] ?? null;
 	const models = modelsByProvider[provider]?.models ?? [];
 	const modelsUnavailable = modelsByProvider[provider]?.unavailable === true;
-	const credentialTypes = getProviderCredentialTypes(provider);
 	const isAiGatewayManagedSelected = selectedProviderCredentialId === AI_GATEWAY_MANAGED_TAG;
 	const hasProviderCredential =
 		isAiGatewayManagedSelected ||
@@ -451,10 +484,14 @@ const menu = computed(() => {
 
 	if (selectedProvider) {
 		const item = providerToMenuItem(selectedProvider);
-		menuItems.push({
-			...item,
-			data: { ...item.data, connectedLabel: i18n.baseText('agents.modelSelector.connected') },
-		});
+		menuItems.push(
+			item.data?.restrictedLabel
+				? item
+				: {
+						...item,
+						data: { ...item.data, connectedLabel: i18n.baseText('agents.modelSelector.connected') },
+					},
+		);
 	}
 
 	if (aiGatewayProviders.length) {
@@ -660,6 +697,7 @@ defineExpose({
 		:selected-label="selectedLabel"
 		:selected-credential-name="selectedCredentialName"
 		:credentials-missing="isCredentialsMissing"
+		:restricted-label="restrictedLabel"
 		:no-match-label="i18n.baseText('agents.modelSelector.noMatch')"
 		:disabled="disabled"
 		data-test-id="agent-model-selector"
diff --git a/packages/modules/type-availability-policies/frontend/src/index.ts b/packages/modules/type-availability-policies/frontend/src/index.ts
index dde62fbeadd..70c287c3121 100644
--- a/packages/modules/type-availability-policies/frontend/src/index.ts
+++ b/packages/modules/type-availability-policies/frontend/src/index.ts
@@ -1,5 +1,6 @@
 export { TypeAvailabilityPoliciesModule } from './type-availability-policies.module';
 export { useTypeAvailabilityPoliciesStore } from './type-availability-policies.store';
+export { SCOPE_LABEL_KEY } from './type-availability-policies.constants';
 export {
 	describeNodeTypeRestriction,
 	getNodeTypeRestriction,