diff --git a/app/src/main/kotlin/com/x8bit/bitwarden/data/vault/repository/VaultRepositoryImpl.kt b/app/src/main/kotlin/com/x8bit/bitwarden/data/vault/repository/VaultRepositoryImpl.kt
index 959e7b2a77..af13899bf4 100644
--- a/app/src/main/kotlin/com/x8bit/bitwarden/data/vault/repository/VaultRepositoryImpl.kt
+++ b/app/src/main/kotlin/com/x8bit/bitwarden/data/vault/repository/VaultRepositoryImpl.kt
@@ -82,7 +82,7 @@ import com.x8bit.bitwarden.data.vault.repository.model.UpdateSendResult
 import com.x8bit.bitwarden.data.vault.repository.model.VaultData
 import com.x8bit.bitwarden.data.vault.repository.model.VaultUnlockResult
 import com.x8bit.bitwarden.data.vault.repository.util.sortAlphabetically
-import com.x8bit.bitwarden.data.vault.repository.util.sortAlphabeticallyByType
+import com.x8bit.bitwarden.data.vault.repository.util.sortAlphabeticallyByTypeAndOrganization
 import com.x8bit.bitwarden.data.vault.repository.util.toDomainsData
 import com.x8bit.bitwarden.data.vault.repository.util.toEncryptedNetworkFolder
 import com.x8bit.bitwarden.data.vault.repository.util.toEncryptedNetworkSend
@@ -1168,7 +1168,11 @@ class VaultRepositoryImpl(
                     .fold(
                         onSuccess = { collections ->
                             DataState.Loaded(
-                                collections.sortAlphabeticallyByType(),
+                                collections.sortAlphabeticallyByTypeAndOrganization(
+                                    userOrganizations = authDiskSource
+                                        .getOrganizations(userId = userId)
+                                        .orEmpty(),
+                                ),
                             )
                         },
                         onFailure = { throwable -> DataState.Error(throwable) },
diff --git a/app/src/main/kotlin/com/x8bit/bitwarden/data/vault/repository/util/VaultSdkCollectionExtensions.kt b/app/src/main/kotlin/com/x8bit/bitwarden/data/vault/repository/util/VaultSdkCollectionExtensions.kt
index 14f5b30ef5..f140c3255a 100644
--- a/app/src/main/kotlin/com/x8bit/bitwarden/data/vault/repository/util/VaultSdkCollectionExtensions.kt
+++ b/app/src/main/kotlin/com/x8bit/bitwarden/data/vault/repository/util/VaultSdkCollectionExtensions.kt
@@ -32,21 +32,45 @@ fun List<SyncResponseJson.Collection>.toEncryptedSdkCollectionList(): List<Colle
     map { it.toEncryptedSdkCollection() }
 
 /**
- * Sorts the collections, grouping them by type, with `DEFAULT_USER_COLLECTION` types displayed
- * first. Within each group, collections are sorted alphabetically by name.
+ * Sorts a list of [CollectionView] objects based on a multi-level sorting logic.
+ *
+ * The sorting criteria are as follows, in order of precedence:
+ * 1. Collections of type `DEFAULT_USER_COLLECTION` are placed first.
+ * 2. All other collections are grouped by their `CollectionType`.
+ * 3. Within each group, collections are sorted alphabetically by name. For collections of
+ *    type `DEFAULT_USER_COLLECTION`, the corresponding organization's name is used for sorting
+ *    instead of the collection's own name.
+ *
+ * This function uses a [SpecialCharWithPrecedenceComparator] for the alphabetical sort.
+ *
+ * @param userOrganizations A list of the user's organizations, used to find the name for
+ * `DEFAULT_USER_COLLECTION` types.
+ * @return A new list containing the sorted [CollectionView] objects.
  */
-@JvmName("toAlphabeticallySortedCollectionList")
-fun List<CollectionView>.sortAlphabeticallyByType(): List<CollectionView> {
+fun List<CollectionView>.sortAlphabeticallyByTypeAndOrganization(
+    userOrganizations: List<SyncResponseJson.Profile.Organization>,
+): List<CollectionView> {
     return this.sortedWith(
         // DEFAULT_USER_COLLECTION come first
         comparator = compareBy<CollectionView> { it.type != CollectionType.DEFAULT_USER_COLLECTION }
             // Then sort by other CollectionType ordinals
             .thenBy { it.type }
-            // Finally, sort by name within each group
-            .thenComparing(
-                CollectionView::name,
-                SpecialCharWithPrecedenceComparator,
-            ),
+            // Finally, sort within each group. For default collections, use the
+            // organization's name; for others, use the collection's name.
+            .thenBy(SpecialCharWithPrecedenceComparator) {
+                if (it.type == CollectionType.DEFAULT_USER_COLLECTION) {
+                    // For default collections, sort by the organization's name
+                    userOrganizations
+                        .find { org -> org.id == it.organizationId }
+                        ?.name
+                        ?: it.name
+                } else {
+                    // For other collections, sort by the collection's name
+                    it.name
+                }
+            }
+            // As a final fallback if names are identical, sort by ID to ensure a stable order
+            .thenBy { it.id },
     )
 }
 
diff --git a/app/src/test/kotlin/com/x8bit/bitwarden/data/vault/repository/util/VaultSdkCollectionExtensionsTest.kt b/app/src/test/kotlin/com/x8bit/bitwarden/data/vault/repository/util/VaultSdkCollectionExtensionsTest.kt
index 639fd42bfc..8a0f029b06 100644
--- a/app/src/test/kotlin/com/x8bit/bitwarden/data/vault/repository/util/VaultSdkCollectionExtensionsTest.kt
+++ b/app/src/test/kotlin/com/x8bit/bitwarden/data/vault/repository/util/VaultSdkCollectionExtensionsTest.kt
@@ -4,6 +4,7 @@ import com.bitwarden.collections.Collection
 import com.bitwarden.collections.CollectionType
 import com.bitwarden.network.model.CollectionTypeJson
 import com.bitwarden.network.model.SyncResponseJson
+import com.bitwarden.network.model.createMockOrganization
 import com.x8bit.bitwarden.data.vault.datasource.sdk.model.createMockCollectionView
 import org.junit.Test
 import org.junit.jupiter.api.Assertions.assertEquals
@@ -103,7 +104,7 @@ class VaultSdkCollectionExtensionsTest {
 
     @Suppress("MaxLineLength")
     @Test
-    fun `toSortAlphabetically should sort collections by type and name`() {
+    fun `toSortAlphabeticallyByTypeAndOrganization should sort collections by type and name`() {
         val list = listOf(
             createMockCollectionView(1).copy(name = "c"),
             createMockCollectionView(1).copy(name = "B"),
@@ -111,16 +112,28 @@ class VaultSdkCollectionExtensionsTest {
             createMockCollectionView(1).copy(name = "4"),
             createMockCollectionView(1).copy(name = "A"),
             createMockCollectionView(1).copy(name = "#"),
-            createMockCollectionView(1).copy(
-                name = "D",
+            createMockCollectionView(2).copy(
+                name = "Org2 items",
                 type = CollectionType.DEFAULT_USER_COLLECTION,
+                organizationId = "mockId-2",
+            ),
+            createMockCollectionView(1).copy(
+                name = "Org1 items",
+                type = CollectionType.DEFAULT_USER_COLLECTION,
+                organizationId = "mockId-1",
             ),
         )
 
         val expected = listOf(
             createMockCollectionView(1).copy(
-                name = "D",
+                name = "Org1 items",
                 type = CollectionType.DEFAULT_USER_COLLECTION,
+                organizationId = "mockId-1",
+            ),
+            createMockCollectionView(2).copy(
+                name = "Org2 items",
+                type = CollectionType.DEFAULT_USER_COLLECTION,
+                organizationId = "mockId-2",
             ),
             createMockCollectionView(1).copy(name = "#"),
             createMockCollectionView(1).copy(name = "4"),
@@ -132,7 +145,12 @@ class VaultSdkCollectionExtensionsTest {
 
         assertEquals(
             expected,
-            list.sortAlphabeticallyByType(),
+            list.sortAlphabeticallyByTypeAndOrganization(
+                userOrganizations = listOf(
+                    createMockOrganization(number = 1),
+                    createMockOrganization(number = 2),
+                ),
+            ),
         )
     }