diff --git a/src-rust/crates/cli/src/main.rs b/src-rust/crates/cli/src/main.rs
index 47635b5..4b7d798 100644
--- a/src-rust/crates/cli/src/main.rs
+++ b/src-rust/crates/cli/src/main.rs
@@ -1640,17 +1640,25 @@ fn filter_tools_for_hosted_review(
         return Arc::new(filtered);
     }
 
-    filter_read_only_tools(&tools)
+    filter_read_only_tools_except(&tools, &["LSP"])
 }
 
 fn filter_read_only_tools(
     tools: &[Box<dyn claurst_tools::Tool>],
+) -> Arc<Vec<Box<dyn claurst_tools::Tool>>> {
+    filter_read_only_tools_except(tools, &[])
+}
+
+fn filter_read_only_tools_except(
+    tools: &[Box<dyn claurst_tools::Tool>],
+    excluded_names: &[&str],
 ) -> Arc<Vec<Box<dyn claurst_tools::Tool>>> {
     use claurst_tools::PermissionLevel as PL;
     // Collect names of tools that are read-only, then rebuild from all_tools
     // (Box<dyn Tool> is not Clone so we can't directly filter-and-keep).
     let allowed_names: Vec<String> = tools
         .iter()
+        .filter(|t| !excluded_names.contains(&t.name()))
         .filter(|t| {
             matches!(t.permission_level(), PL::ReadOnly | PL::None) || t.name() == "AskUserQuestion"
         })
@@ -5517,7 +5525,7 @@ mod tests {
         let names = tool_names(&filter_tools_for_hosted_review(all, &config));
 
         assert!(names.contains(&"Read".to_string()));
-        for forbidden in ["Bash", "Edit", "Write", "NotebookEdit", "ApplyPatch"] {
+        for forbidden in ["Bash", "Edit", "Write", "NotebookEdit", "ApplyPatch", "LSP"] {
             assert!(
                 !names.contains(&forbidden.to_string()),
                 "hosted review default tools must not include {forbidden}, got {names:?}"
diff --git a/src-rust/crates/core/src/lib.rs b/src-rust/crates/core/src/lib.rs
index 710689f..2f86ca2 100644
--- a/src-rust/crates/core/src/lib.rs
+++ b/src-rust/crates/core/src/lib.rs
@@ -1834,7 +1834,8 @@ pub mod config {
         /// Repository settings are untrusted until the user explicitly chooses to
         /// trust a project. Keep non-executable project preferences, but never let a
         /// repository contribute MCP server definitions that are auto-connected at
-        /// startup, shell hooks, provider endpoints, credentials, or provider routing.
+        /// startup, shell hooks, hosted capability policy, persisted permission rules,
+        /// provider endpoints, credentials, or provider routing.
         pub(crate) fn sanitize_project_settings(mut settings: Self) -> Self {
             settings.provider = None;
             settings.providers.clear();
@@ -1842,8 +1843,11 @@ pub mod config {
             settings.config.provider = None;
             settings.config.provider_configs.clear();
             settings.config.mcp_servers.clear();
+            settings.config.lsp_servers.clear();
             settings.config.hooks.clear();
             settings.config.enable_all_mcp_servers = false;
+            settings.config.hosted_review = crate::hosted_review::HostedReviewConfig::default();
+            settings.permission_rules.clear();
             for project in settings.projects.values_mut() {
                 project.mcp_servers.clear();
             }
@@ -2262,6 +2266,91 @@ pub mod config {
             );
         }
 
+        #[test]
+        fn project_settings_do_not_merge_lsp_servers() {
+            let global = Settings {
+                config: Config {
+                    lsp_servers: vec![crate::lsp::LspServerConfig {
+                        name: "trusted-rust".to_string(),
+                        command: "rust-analyzer".to_string(),
+                        args: Vec::new(),
+                        file_patterns: vec!["*.rs".to_string()],
+                        initialization_options: None,
+                        extension_to_language: HashMap::new(),
+                        env: HashMap::new(),
+                    }],
+                    ..Default::default()
+                },
+                ..Default::default()
+            };
+            let project = Settings {
+                config: Config {
+                    lsp_servers: vec![crate::lsp::LspServerConfig {
+                        name: "project-controlled".to_string(),
+                        command: "sh".to_string(),
+                        args: vec!["-c".to_string(), "payload".to_string()],
+                        file_patterns: vec!["*.rs".to_string()],
+                        initialization_options: None,
+                        extension_to_language: HashMap::new(),
+                        env: HashMap::new(),
+                    }],
+                    ..Default::default()
+                },
+                ..Default::default()
+            };
+
+            let merged = Settings::merge(global, Settings::sanitize_project_settings(project));
+
+            assert_eq!(merged.config.lsp_servers.len(), 1);
+            assert_eq!(merged.config.lsp_servers[0].name, "trusted-rust");
+        }
+
+        #[test]
+        fn project_settings_cannot_override_hosted_capabilities_or_permission_rules() {
+            let trusted_policy = crate::hosted_review::HostedReviewConfig {
+                enabled: true,
+                allow_managed_rules: true,
+                ..Default::default()
+            };
+            let trusted_rule = crate::permissions::SerializedPermissionRule {
+                tool_name: Some("Read".to_string()),
+                path_pattern: None,
+                action: crate::permissions::PermissionAction::Deny,
+            };
+            let global = Settings {
+                config: Config {
+                    hosted_review: trusted_policy.clone(),
+                    ..Default::default()
+                },
+                permission_rules: vec![trusted_rule.clone()],
+                ..Default::default()
+            };
+            let project = Settings {
+                config: Config {
+                    hosted_review: crate::hosted_review::HostedReviewConfig {
+                        enabled: true,
+                        allow_write_tools: true,
+                        allow_file_write_tools: true,
+                        allow_mcp_servers: true,
+                        allow_plugins: true,
+                        ..Default::default()
+                    },
+                    ..Default::default()
+                },
+                permission_rules: vec![crate::permissions::SerializedPermissionRule {
+                    tool_name: Some("Bash".to_string()),
+                    path_pattern: None,
+                    action: crate::permissions::PermissionAction::Allow,
+                }],
+                ..Default::default()
+            };
+
+            let merged = Settings::merge(global, Settings::sanitize_project_settings(project));
+
+            assert_eq!(merged.config.hosted_review, trusted_policy);
+            assert_eq!(merged.permission_rules, vec![trusted_rule]);
+        }
+
         #[test]
         fn hosted_review_config_deserializes_from_camel_case() {
             let settings: Settings =