diff --git a/packages/twenty-front/src/modules/navigation-menu-item/display/folder/hooks/useNavigationMenuItemFolderOpenState.ts b/packages/twenty-front/src/modules/navigation-menu-item/display/folder/hooks/useNavigationMenuItemFolderOpenState.ts
index f35dbdba746..0d07339e023 100644
--- a/packages/twenty-front/src/modules/navigation-menu-item/display/folder/hooks/useNavigationMenuItemFolderOpenState.ts
+++ b/packages/twenty-front/src/modules/navigation-menu-item/display/folder/hooks/useNavigationMenuItemFolderOpenState.ts
@@ -1,16 +1,14 @@
 import { isNonEmptyString } from '@sniptt/guards';
 import { useLocation, useNavigate } from 'react-router-dom';
 import { NavigationMenuItemType } from 'twenty-shared/types';
-import { isDefined } from 'twenty-shared/utils';
 import { useIsMobile } from 'twenty-ui/utilities';
 import { type NavigationMenuItem } from '~/generated-metadata/graphql';
 
 import { activeNavigationItemState } from '@/navigation-menu-item/common/states/activeNavigationItemState';
 import { currentNavigationMenuItemFolderIdState } from '@/navigation-menu-item/common/states/currentNavigationMenuItemFolderIdState';
 import { openNavigationMenuItemFolderIdsState } from '@/navigation-menu-item/common/states/openNavigationMenuItemFolderIdsState';
-import { isLocationMatchingNavigationMenuItem } from '@/navigation-menu-item/common/utils/isLocationMatchingNavigationMenuItem';
-import { matchesRecordShowPathForObject } from '@/navigation-menu-item/common/utils/matchesRecordShowPathForObject';
-import { getObjectMetadataForNavigationMenuItem } from '@/navigation-menu-item/display/object/utils/getObjectMetadataForNavigationMenuItem';
+import { resolveFolderSelectedNavigationMenuItemIndex } from '@/navigation-menu-item/display/folder/utils/resolveFolderSelectedNavigationMenuItemIndex';
+import { useNavigationMenuItemsData } from '@/navigation-menu-item/display/hooks/useNavigationMenuItemsData';
 import { getNavigationMenuItemComputedLink } from '@/navigation-menu-item/display/utils/getNavigationMenuItemComputedLink';
 import { objectMetadataItemsSelector } from '@/object-metadata/states/objectMetadataItemsSelector';
 import { useAtomState } from '@/ui/utilities/state/jotai/hooks/useAtomState';
@@ -34,6 +32,7 @@ export const useNavigationMenuItemFolderOpenState = ({
   const isMobile = useIsMobile();
   const objectMetadataItems = useAtomStateValue(objectMetadataItemsSelector);
   const views = useAtomStateValue(viewsSelector);
+  const { workspaceNavigationMenuItems } = useNavigationMenuItemsData();
 
   const [openNavigationMenuItemFolderIds, setOpenNavigationMenuItemFolderIds] =
     useAtomState(openNavigationMenuItemFolderIdsState);
@@ -76,89 +75,16 @@ export const useNavigationMenuItemFolderOpenState = ({
 
   const activeNavigationItem = useAtomStateValue(activeNavigationItemState);
 
-  const explicitMatchIndex = isDefined(activeNavigationItem)
-    ? navigationMenuItems.findIndex(
-        (item) => item.id === activeNavigationItem.navItemId,
-      )
-    : -1;
-
-  const activeNavigationObjectNameSingular =
-    activeNavigationItem?.objectNameSingular;
-
-  const navigationMenuItemMatchesActiveObject = (
-    navigationMenuItem: NavigationMenuItem,
-  ): boolean => {
-    const objectMetadataItem = getObjectMetadataForNavigationMenuItem(
-      navigationMenuItem,
+  const selectedNavigationMenuItemIndex =
+    resolveFolderSelectedNavigationMenuItemIndex({
+      navigationMenuItems,
+      activeNavigationItem,
+      currentPath,
+      currentViewPath,
       objectMetadataItems,
       views,
-    );
-
-    if (!isDefined(objectMetadataItem)) {
-      return false;
-    }
-
-    return (
-      objectMetadataItem.nameSingular === activeNavigationObjectNameSingular
-    );
-  };
-
-  const isActiveNavigationItemObjectInFolder =
-    isDefined(activeNavigationObjectNameSingular) &&
-    navigationMenuItems.some(navigationMenuItemMatchesActiveObject);
-
-  const recordMatchIndex = navigationMenuItems.findIndex((item) => {
-    if (item.type !== NavigationMenuItemType.RECORD) {
-      return false;
-    }
-    const computedLink = getNavigationMenuItemComputedLink(
-      item,
-      objectMetadataItems,
-      views,
-    );
-    return computedLink === currentPath;
-  });
-
-  const urlMatchIndex = navigationMenuItems.findIndex((item) => {
-    const computedLink = getNavigationMenuItemComputedLink(
-      item,
-      objectMetadataItems,
-      views,
-    );
-
-    if (
-      isLocationMatchingNavigationMenuItem(
-        currentPath,
-        currentViewPath,
-        item.type,
-        computedLink,
-      )
-    ) {
-      return true;
-    }
-
-    if (item.type === NavigationMenuItemType.OBJECT) {
-      const objectMetadataItem = getObjectMetadataForNavigationMenuItem(
-        item,
-        objectMetadataItems,
-        views,
-      );
-      if (isDefined(objectMetadataItem)) {
-        return matchesRecordShowPathForObject(
-          currentPath,
-          objectMetadataItem.nameSingular,
-        );
-      }
-    }
-
-    return false;
-  });
-
-  const selectedNavigationMenuItemIndex = isActiveNavigationItemObjectInFolder
-    ? explicitMatchIndex !== -1
-      ? explicitMatchIndex
-      : recordMatchIndex
-    : urlMatchIndex;
+      workspaceNavigationMenuItems,
+    });
 
   return {
     isOpen,
diff --git a/packages/twenty-front/src/modules/navigation-menu-item/display/folder/utils/doesFolderNavigationMenuItemMatchUrlForSelection.ts b/packages/twenty-front/src/modules/navigation-menu-item/display/folder/utils/doesFolderNavigationMenuItemMatchUrlForSelection.ts
new file mode 100644
index 00000000000..8431ee598d0
--- /dev/null
+++ b/packages/twenty-front/src/modules/navigation-menu-item/display/folder/utils/doesFolderNavigationMenuItemMatchUrlForSelection.ts
@@ -0,0 +1,110 @@
+import { NavigationMenuItemType } from 'twenty-shared/types';
+import { isDefined } from 'twenty-shared/utils';
+
+import { isLocationMatchingNavigationMenuItem } from '@/navigation-menu-item/common/utils/isLocationMatchingNavigationMenuItem';
+import { matchesRecordShowPathForObject } from '@/navigation-menu-item/common/utils/matchesRecordShowPathForObject';
+import { getObjectMetadataForNavigationMenuItem } from '@/navigation-menu-item/display/object/utils/getObjectMetadataForNavigationMenuItem';
+import { getNavigationMenuItemComputedLink } from '@/navigation-menu-item/display/utils/getNavigationMenuItemComputedLink';
+import { type EnrichedObjectMetadataItem } from '@/object-metadata/types/EnrichedObjectMetadataItem';
+import { type View } from '@/views/types/View';
+import { type NavigationMenuItem } from '~/generated-metadata/graphql';
+
+type DoesFolderNavigationMenuItemMatchUrlForSelectionParams = {
+  folderChildNavigationMenuItem: NavigationMenuItem;
+  workspaceNavigationMenuItems: NavigationMenuItem[];
+  currentPath: string;
+  currentViewPath: string;
+  objectMetadataItems: EnrichedObjectMetadataItem[];
+  views: Pick<View, 'id' | 'objectMetadataId'>[];
+};
+
+export const doesFolderNavigationMenuItemMatchUrlForSelection = ({
+  folderChildNavigationMenuItem,
+  workspaceNavigationMenuItems,
+  currentPath,
+  currentViewPath,
+  objectMetadataItems,
+  views,
+}: DoesFolderNavigationMenuItemMatchUrlForSelectionParams): boolean => {
+  const computedLink = getNavigationMenuItemComputedLink(
+    folderChildNavigationMenuItem,
+    objectMetadataItems,
+    views,
+  );
+
+  let locationMatches = isLocationMatchingNavigationMenuItem(
+    currentPath,
+    currentViewPath,
+    folderChildNavigationMenuItem.type,
+    computedLink,
+  );
+
+  if (
+    !locationMatches &&
+    folderChildNavigationMenuItem.type === NavigationMenuItemType.OBJECT
+  ) {
+    const objectMetadataItem = getObjectMetadataForNavigationMenuItem(
+      folderChildNavigationMenuItem,
+      objectMetadataItems,
+      views,
+    );
+    if (isDefined(objectMetadataItem)) {
+      locationMatches = matchesRecordShowPathForObject(
+        currentPath,
+        objectMetadataItem.nameSingular,
+      );
+    }
+  }
+
+  if (!locationMatches) {
+    return false;
+  }
+
+  const objectMetadataForFolderChild = getObjectMetadataForNavigationMenuItem(
+    folderChildNavigationMenuItem,
+    objectMetadataItems,
+    views,
+  );
+
+  if (!isDefined(objectMetadataForFolderChild)) {
+    return true;
+  }
+
+  return !workspaceNavigationMenuItems.some((workspaceItem) => {
+    if (
+      isDefined(workspaceItem.folderId) ||
+      workspaceItem.type !== NavigationMenuItemType.OBJECT
+    ) {
+      return false;
+    }
+
+    const topLevelComputedLink = getNavigationMenuItemComputedLink(
+      workspaceItem,
+      objectMetadataItems,
+      views,
+    );
+
+    if (
+      !isLocationMatchingNavigationMenuItem(
+        currentPath,
+        currentViewPath,
+        workspaceItem.type,
+        topLevelComputedLink,
+      )
+    ) {
+      return false;
+    }
+
+    const objectMetadataForTopLevelItem =
+      getObjectMetadataForNavigationMenuItem(
+        workspaceItem,
+        objectMetadataItems,
+        views,
+      );
+
+    return (
+      isDefined(objectMetadataForTopLevelItem) &&
+      objectMetadataForTopLevelItem.id === objectMetadataForFolderChild.id
+    );
+  });
+};
diff --git a/packages/twenty-front/src/modules/navigation-menu-item/display/folder/utils/resolveFolderSelectedNavigationMenuItemIndex.ts b/packages/twenty-front/src/modules/navigation-menu-item/display/folder/utils/resolveFolderSelectedNavigationMenuItemIndex.ts
new file mode 100644
index 00000000000..4de02e776a0
--- /dev/null
+++ b/packages/twenty-front/src/modules/navigation-menu-item/display/folder/utils/resolveFolderSelectedNavigationMenuItemIndex.ts
@@ -0,0 +1,90 @@
+import { NavigationMenuItemType } from 'twenty-shared/types';
+import { isDefined } from 'twenty-shared/utils';
+
+import { doesFolderNavigationMenuItemMatchUrlForSelection } from '@/navigation-menu-item/display/folder/utils/doesFolderNavigationMenuItemMatchUrlForSelection';
+import { getObjectMetadataForNavigationMenuItem } from '@/navigation-menu-item/display/object/utils/getObjectMetadataForNavigationMenuItem';
+import { getNavigationMenuItemComputedLink } from '@/navigation-menu-item/display/utils/getNavigationMenuItemComputedLink';
+import { type EnrichedObjectMetadataItem } from '@/object-metadata/types/EnrichedObjectMetadataItem';
+import { type View } from '@/views/types/View';
+import { type NavigationMenuItem } from '~/generated-metadata/graphql';
+
+type ActiveNavigationItemForFolderSelection = {
+  navItemId: string;
+  objectNameSingular: string;
+};
+
+type ResolveFolderSelectedNavigationMenuItemIndexParams = {
+  navigationMenuItems: NavigationMenuItem[];
+  activeNavigationItem: ActiveNavigationItemForFolderSelection | null;
+  currentPath: string;
+  currentViewPath: string;
+  objectMetadataItems: EnrichedObjectMetadataItem[];
+  views: Pick<View, 'id' | 'objectMetadataId'>[];
+  workspaceNavigationMenuItems: NavigationMenuItem[];
+};
+
+export const resolveFolderSelectedNavigationMenuItemIndex = ({
+  navigationMenuItems,
+  activeNavigationItem,
+  currentPath,
+  currentViewPath,
+  objectMetadataItems,
+  views,
+  workspaceNavigationMenuItems,
+}: ResolveFolderSelectedNavigationMenuItemIndexParams): number => {
+  const explicitMatchIndex = isDefined(activeNavigationItem)
+    ? navigationMenuItems.findIndex(
+        (item) => item.id === activeNavigationItem.navItemId,
+      )
+    : -1;
+
+  const activeNavigationObjectNameSingular =
+    activeNavigationItem?.objectNameSingular;
+
+  const isActiveNavigationItemObjectInFolder =
+    isDefined(activeNavigationObjectNameSingular) &&
+    navigationMenuItems.some((navigationMenuItem) => {
+      const objectMetadataItem = getObjectMetadataForNavigationMenuItem(
+        navigationMenuItem,
+        objectMetadataItems,
+        views,
+      );
+
+      if (!isDefined(objectMetadataItem)) {
+        return false;
+      }
+
+      return (
+        objectMetadataItem.nameSingular === activeNavigationObjectNameSingular
+      );
+    });
+
+  const recordMatchIndex = navigationMenuItems.findIndex((item) => {
+    if (item.type !== NavigationMenuItemType.RECORD) {
+      return false;
+    }
+    const computedLink = getNavigationMenuItemComputedLink(
+      item,
+      objectMetadataItems,
+      views,
+    );
+    return computedLink === currentPath;
+  });
+
+  const urlMatchIndex = navigationMenuItems.findIndex((folderChildItem) =>
+    doesFolderNavigationMenuItemMatchUrlForSelection({
+      folderChildNavigationMenuItem: folderChildItem,
+      workspaceNavigationMenuItems,
+      currentPath,
+      currentViewPath,
+      objectMetadataItems,
+      views,
+    }),
+  );
+
+  return isActiveNavigationItemObjectInFolder
+    ? explicitMatchIndex !== -1
+      ? explicitMatchIndex
+      : recordMatchIndex
+    : urlMatchIndex;
+};