diff --git a/app/template_folder/rest.py b/app/template_folder/rest.py
index fac997e39..43e631c79 100644
--- a/app/template_folder/rest.py
+++ b/app/template_folder/rest.py
@@ -12,6 +12,7 @@ from app.dao.template_folder_dao import (
 )
 from app.dao.services_dao import dao_fetch_service_by_id
 from app.dao.service_user_dao import dao_get_active_service_users
+from app.dao.service_user_dao import dao_get_service_user
 from app.errors import InvalidRequest, register_errors
 from app.models import TemplateFolder
 from app.template_folder.template_folder_schema import (
@@ -78,6 +79,8 @@ def update_template_folder(service_id, template_folder_id):
 
     template_folder = dao_get_template_folder_by_id_and_service_id(template_folder_id, service_id)
     template_folder.name = data['name']
+    if 'users_with_permission' in data:
+        template_folder.users = [dao_get_service_user(user_id, service_id) for user_id in data['users_with_permission']]
 
     dao_update_template_folder(template_folder)
 
diff --git a/app/template_folder/template_folder_schema.py b/app/template_folder/template_folder_schema.py
index 006f6b761..7e375b033 100644
--- a/app/template_folder/template_folder_schema.py
+++ b/app/template_folder/template_folder_schema.py
@@ -17,6 +17,7 @@ post_update_template_folder_schema = {
     "type": "object",
     "properties": {
         "name": {"type": "string", "minLength": 1},
+        "users_with_permission": {"type": "array", "items": uuid}
     },
     "required": ["name"]
 }
diff --git a/tests/app/template_folder/test_template_folder_rest.py b/tests/app/template_folder/test_template_folder_rest.py
index 137551bcb..cd8d85f91 100644
--- a/tests/app/template_folder/test_template_folder_rest.py
+++ b/tests/app/template_folder/test_template_folder_rest.py
@@ -155,7 +155,7 @@ def test_create_template_folder_fails_if_parent_id_from_different_service(admin_
     assert resp['message'] == 'parent_id not found'
 
 
-def test_update_template_folder(admin_request, sample_service):
+def test_update_template_folder_name(admin_request, sample_service):
     existing_folder = create_template_folder(sample_service)
 
     resp = admin_request.post(
@@ -171,6 +171,24 @@ def test_update_template_folder(admin_request, sample_service):
     assert existing_folder.name == 'bar'
 
 
+def test_update_template_folder_users(admin_request, sample_service):
+    existing_folder = create_template_folder(sample_service)
+    user = create_user()
+    assert len(existing_folder.users) == 0
+    resp = admin_request.post(
+        'template_folder.update_template_folder',
+        service_id=sample_service.id,
+        template_folder_id=existing_folder.id,
+        _data={
+            'name': 'foo',
+            'users_with_permission': [str(user.id)]
+        }
+    )
+
+    assert resp['data']['users_with_permission'] == [str(user.id)]
+    assert len(existing_folder.users) == 1
+
+
 @pytest.mark.parametrize('data, err', [
     ({}, 'name is a required property'),
     ({'name': None}, 'name None is not of type string'),