diff --git a/alembic/versions/ab7e313804ae_permission_system_rework.py b/alembic/versions/ab7e313804ae_permission_system_rework.py
new file mode 100644
index 000000000..5df4dff64
--- /dev/null
+++ b/alembic/versions/ab7e313804ae_permission_system_rework.py
@@ -0,0 +1,170 @@
+"""permission_system_rework
+
+Revision ID: ab7e313804ae
+Revises: 1d0bb7fede17
+Create Date: 2025-06-16 15:20:43.118246
+
+"""
+
+from typing import Sequence, Union
+from alembic import op
+import sqlalchemy as sa
+from sqlalchemy import UUID
+from datetime import datetime, timezone
+from uuid import uuid4
+
+# revision identifiers, used by Alembic.
+revision: str = "ab7e313804ae"
+down_revision: Union[str, None] = "1d0bb7fede17"
+branch_labels: Union[str, Sequence[str], None] = None
+depends_on: Union[str, Sequence[str], None] = None
+
+
+def _now():
+    return datetime.now(timezone.utc)
+
+
+def _ensure_permission(conn, permission_name) -> str:
+    """
+    Return the permission.id for the given name, creating the row if needed.
+    """
+    from cognee.modules.users.models import Permission
+
+    row = conn.execute(sa.select(Permission).filter(Permission.name == permission_name)).fetchone()
+
+    if row is None:
+        permission_id = uuid4()
+
+        permissions_table = sa.Table(
+            "acls",
+            sa.MetaData(),
+            sa.Column("id", UUID, primary_key=True, default=uuid4),
+            sa.Column(
+                "created_at", sa.DateTime(timezone=True), default=lambda: datetime.now(timezone.utc)
+            ),
+            sa.Column(
+                "updated_at",
+                sa.DateTime(timezone=True),
+                onupdate=lambda: datetime.now(timezone.utc),
+            ),
+            sa.Column("principal_id", UUID, sa.ForeignKey("principals.id")),
+            sa.Column("permission_id", UUID, sa.ForeignKey("permissions.id")),
+            sa.Column("dataset_id", UUID, sa.ForeignKey("datasets.id", ondelete="CASCADE")),
+        )
+
+        op.bulk_insert(
+            permissions_table,
+            [
+                {
+                    "id": permission_id,
+                    "name": permission_name,
+                    "created_at": _now(),
+                    "updated_at": _now(),
+                }
+            ],
+        )
+        return permission_id
+
+    return row.id
+
+
+def _build_acl_row(*, user_id, target_id, permission_id, target_col) -> dict:
+    """Create a dict with the correct column names for the ACL row."""
+    return {
+        "id": uuid4(),
+        "created_at": _now(),
+        "updated_at": _now(),
+        "principal_id": user_id,
+        target_col: target_id,
+        "permission_id": permission_id,
+    }
+
+
+def _create_dataset_permission(conn, user_id, dataset_id, permission_name):
+    perm_id = _ensure_permission(conn, permission_name)
+    return _build_acl_row(
+        user_id=user_id, target_id=dataset_id, permission_id=perm_id, target_col="dataset_id"
+    )
+
+
+def _create_data_permission(conn, user_id, data_id, permission_name):
+    perm_id = _ensure_permission(conn, permission_name)
+    return _build_acl_row(
+        user_id=user_id, target_id=data_id, permission_id=perm_id, target_col="data_id"
+    )
+
+
+def upgrade() -> None:
+    conn = op.get_bind()
+
+    # Recreate ACLs table with default permissions set to datasets instead of documents
+    op.drop_table("acls")
+
+    acls_table = op.create_table(
+        "acls",
+        sa.Column("id", UUID, primary_key=True, default=uuid4),
+        sa.Column(
+            "created_at", sa.DateTime(timezone=True), default=lambda: datetime.now(timezone.utc)
+        ),
+        sa.Column(
+            "updated_at", sa.DateTime(timezone=True), onupdate=lambda: datetime.now(timezone.utc)
+        ),
+        sa.Column("principal_id", UUID, sa.ForeignKey("principals.id")),
+        sa.Column("permission_id", UUID, sa.ForeignKey("permissions.id")),
+        sa.Column("dataset_id", UUID, sa.ForeignKey("datasets.id", ondelete="CASCADE")),
+    )
+
+    from cognee.modules.data.models import Dataset
+
+    datasets = conn.execute(sa.select(Dataset)).fetchall()
+
+    if not datasets:
+        return
+
+    acl_list = []
+
+    for dataset in datasets:
+        acl_list.append(_create_dataset_permission(conn, dataset.owner_id, dataset.id, "read"))
+        acl_list.append(_create_dataset_permission(conn, dataset.owner_id, dataset.id, "write"))
+        acl_list.append(_create_dataset_permission(conn, dataset.owner_id, dataset.id, "share"))
+        acl_list.append(_create_dataset_permission(conn, dataset.owner_id, dataset.id, "delete"))
+
+    if acl_list:
+        op.bulk_insert(acls_table, acl_list)
+
+
+def downgrade() -> None:
+    conn = op.get_bind()
+
+    op.drop_table("acls")
+
+    acls_table = op.create_table(
+        "acls",
+        sa.Column("id", UUID, primary_key=True, nullable=False, default=uuid4),
+        sa.Column(
+            "created_at", sa.DateTime(timezone=True), default=lambda: datetime.now(timezone.utc)
+        ),
+        sa.Column(
+            "updated_at", sa.DateTime(timezone=True), onupdate=lambda: datetime.now(timezone.utc)
+        ),
+        sa.Column("principal_id", UUID, sa.ForeignKey("principals.id")),
+        sa.Column("permission_id", UUID, sa.ForeignKey("permissions.id")),
+        sa.Column("data_id", UUID, sa.ForeignKey("data.id", ondelete="CASCADE")),
+    )
+
+    from cognee.modules.data.models import Data
+
+    data = conn.execute(sa.select(Data)).fetchall()
+
+    if not data:
+        return
+
+    acl_list = []
+    for single_data in data:
+        acl_list.append(_create_data_permission(conn, single_data.owner_id, single_data.id, "read"))
+        acl_list.append(
+            _create_data_permission(conn, single_data.owner_id, single_data.id, "write")
+        )
+
+    if acl_list:
+        op.bulk_insert(acls_table, acl_list)