diff --git a/apps/studio/components/interfaces/SQLEditor/MonacoEditor.tsx b/apps/studio/components/interfaces/SQLEditor/MonacoEditor.tsx
index b0571a93f66..08c0dfd01ff 100644
--- a/apps/studio/components/interfaces/SQLEditor/MonacoEditor.tsx
+++ b/apps/studio/components/interfaces/SQLEditor/MonacoEditor.tsx
@@ -8,13 +8,14 @@ import { useLocalStorageQuery } from 'hooks/misc/useLocalStorage'
 import { useSelectedProject } from 'hooks/misc/useSelectedProject'
 import { LOCAL_STORAGE_KEYS } from 'lib/constants'
 import { useProfile } from 'lib/profile'
+import { useAppStateSnapshot } from 'state/app-state'
 import { useSqlEditorV2StateSnapshot } from 'state/sql-editor-v2'
 import { cn } from 'ui'
+import { Admonition } from 'ui-patterns'
+import { useIsAssistantV2Enabled } from '../App/FeaturePreview/FeaturePreviewContext'
 import { untitledSnippetTitle } from './SQLEditor.constants'
 import type { IStandaloneCodeEditor } from './SQLEditor.types'
 import { createSqlSnippetSkeletonV2 } from './SQLEditor.utils'
-import { useIsAssistantV2Enabled } from '../App/FeaturePreview/FeaturePreviewContext'
-import { useAppStateSnapshot } from 'state/app-state'
 
 export type MonacoEditorProps = {
   id: string
@@ -50,6 +51,8 @@ const MonacoEditor = ({
   )
 
   const snippet = snapV2.snippets[id]
+  const disableEdit =
+    snippet?.snippet.visibility === 'project' && snippet?.snippet.owner_id !== profile?.id
 
   const executeQueryRef = useRef(executeQuery)
   executeQueryRef.current = executeQuery
@@ -152,57 +155,68 @@ const MonacoEditor = ({
   }, [])
 
   return (
-    <Editor
-      className={cn(className, 'monaco-editor')}
-      theme={'supabase'}
-      onMount={handleEditorOnMount}
-      onChange={handleEditorChange}
-      defaultLanguage="pgsql"
-      defaultValue={snippet?.snippet.content.sql}
-      path={id}
-      options={{
-        tabSize: 2,
-        fontSize: 13,
-        minimap: { enabled: false },
-        wordWrap: 'on',
-        // [Joshen] Commenting the following out as it causes the autocomplete suggestion popover
-        // to be positioned wrongly somehow. I'm not sure if this affects anything though, but leaving
-        // comment just in case anyone might be wondering. Relevant issues:
-        // - https://github.com/microsoft/monaco-editor/issues/2229
-        // - https://github.com/microsoft/monaco-editor/issues/2503
-        // fixedOverflowWidgets: true,
-        suggest: {
-          showMethods: intellisenseEnabled,
-          showFunctions: intellisenseEnabled,
-          showConstructors: intellisenseEnabled,
-          showDeprecated: intellisenseEnabled,
-          showFields: intellisenseEnabled,
-          showVariables: intellisenseEnabled,
-          showClasses: intellisenseEnabled,
-          showStructs: intellisenseEnabled,
-          showInterfaces: intellisenseEnabled,
-          showModules: intellisenseEnabled,
-          showProperties: intellisenseEnabled,
-          showEvents: intellisenseEnabled,
-          showOperators: intellisenseEnabled,
-          showUnits: intellisenseEnabled,
-          showValues: intellisenseEnabled,
-          showConstants: intellisenseEnabled,
-          showEnums: intellisenseEnabled,
-          showEnumMembers: intellisenseEnabled,
-          showKeywords: intellisenseEnabled,
-          showWords: intellisenseEnabled,
-          showColors: intellisenseEnabled,
-          showFiles: intellisenseEnabled,
-          showReferences: intellisenseEnabled,
-          showFolders: intellisenseEnabled,
-          showTypeParameters: intellisenseEnabled,
-          showIssues: intellisenseEnabled,
-          showUsers: intellisenseEnabled,
-          showSnippets: intellisenseEnabled,
-        },
-      }}
-    />
+    <>
+      {disableEdit && (
+        <Admonition
+          type="default"
+          className="m-0 py-2 rounded-none border-0 border-b [&>h5]:mb-0.5"
+          title="This snippet has been shared to the project and is only editable by the owner who created this snippet"
+          description='You may duplicate this snippet into a personal copy by right clicking on the snippet and selecting "Duplicate personal copy"'
+        />
+      )}
+      <Editor
+        className={cn(className, 'monaco-editor')}
+        theme={'supabase'}
+        onMount={handleEditorOnMount}
+        onChange={handleEditorChange}
+        defaultLanguage="pgsql"
+        defaultValue={snippet?.snippet.content.sql}
+        path={id}
+        options={{
+          tabSize: 2,
+          fontSize: 13,
+          readOnly: disableEdit,
+          minimap: { enabled: false },
+          wordWrap: 'on',
+          // [Joshen] Commenting the following out as it causes the autocomplete suggestion popover
+          // to be positioned wrongly somehow. I'm not sure if this affects anything though, but leaving
+          // comment just in case anyone might be wondering. Relevant issues:
+          // - https://github.com/microsoft/monaco-editor/issues/2229
+          // - https://github.com/microsoft/monaco-editor/issues/2503
+          // fixedOverflowWidgets: true,
+          suggest: {
+            showMethods: intellisenseEnabled,
+            showFunctions: intellisenseEnabled,
+            showConstructors: intellisenseEnabled,
+            showDeprecated: intellisenseEnabled,
+            showFields: intellisenseEnabled,
+            showVariables: intellisenseEnabled,
+            showClasses: intellisenseEnabled,
+            showStructs: intellisenseEnabled,
+            showInterfaces: intellisenseEnabled,
+            showModules: intellisenseEnabled,
+            showProperties: intellisenseEnabled,
+            showEvents: intellisenseEnabled,
+            showOperators: intellisenseEnabled,
+            showUnits: intellisenseEnabled,
+            showValues: intellisenseEnabled,
+            showConstants: intellisenseEnabled,
+            showEnums: intellisenseEnabled,
+            showEnumMembers: intellisenseEnabled,
+            showKeywords: intellisenseEnabled,
+            showWords: intellisenseEnabled,
+            showColors: intellisenseEnabled,
+            showFiles: intellisenseEnabled,
+            showReferences: intellisenseEnabled,
+            showFolders: intellisenseEnabled,
+            showTypeParameters: intellisenseEnabled,
+            showIssues: intellisenseEnabled,
+            showUsers: intellisenseEnabled,
+            showSnippets: intellisenseEnabled,
+          },
+        }}
+      />
+    </>
   )
 }
 
diff --git a/apps/studio/state/sql-editor-v2.ts b/apps/studio/state/sql-editor-v2.ts
index 8e8cfad29fe..6e6b7af792a 100644
--- a/apps/studio/state/sql-editor-v2.ts
+++ b/apps/studio/state/sql-editor-v2.ts
@@ -462,22 +462,37 @@ if (typeof window !== 'undefined') {
       const folder = state.folders[id]
 
       if (snippet) {
-        debouncedUpdateSnippet(id, snippet.projectRef, {
-          id,
-          type: 'sql',
-          name: snippet.snippet.name ?? 'Untitled',
-          description: snippet.snippet.description ?? '',
-          visibility: snippet.snippet.visibility ?? 'user',
-          project_id: snippet.snippet.project_id ?? 0,
-          owner_id: snippet.snippet.owner_id,
-          folder_id: snippet.snippet.folder_id,
-          content: {
-            ...snippet.snippet.content,
-            content_id: id,
-            favorite: snippet.snippet.favorite,
-          },
-        })
-        sqlEditorState.needsSaving.delete(id)
+        const {
+          name,
+          description,
+          visibility,
+          project_id,
+          owner_id,
+          folder_id,
+          content,
+          favorite,
+        } = snippet.snippet
+
+        if (visibility === 'project' && !!folder_id) {
+          toast.error('Shared snippet cannot be within a folder')
+        } else {
+          debouncedUpdateSnippet(id, snippet.projectRef, {
+            id,
+            type: 'sql',
+            name: name ?? 'Untitled',
+            description: description ?? '',
+            visibility: visibility ?? 'user',
+            project_id: project_id ?? 0,
+            owner_id: owner_id,
+            folder_id: folder_id,
+            content: {
+              ...content,
+              content_id: id,
+              favorite: favorite,
+            },
+          })
+          sqlEditorState.needsSaving.delete(id)
+        }
       } else if (folder) {
         upsertFolder(id, folder.projectRef, folder.folder.name)
         sqlEditorState.needsSaving.delete(id)