diff --git a/api/polaris-catalog-service/build.gradle.kts b/api/polaris-catalog-service/build.gradle.kts
index 1e0778f05d..f16343441b 100644
--- a/api/polaris-catalog-service/build.gradle.kts
+++ b/api/polaris-catalog-service/build.gradle.kts
@@ -38,6 +38,7 @@ val policyManagementModels =
     "LoadPolicyResponse",
     "PolicyIdentifier",
     "Policy",
+    "ApplicablePolicy",
     "PolicyAttachmentTarget",
     "AttachPolicyRequest",
     "DetachPolicyRequest",
diff --git a/spec/generated/bundled-polaris-catalog-service.yaml b/spec/generated/bundled-polaris-catalog-service.yaml
index c0dd88cc48..2a817dd69f 100644
--- a/spec/generated/bundled-polaris-catalog-service.yaml
+++ b/spec/generated/bundled-polaris-catalog-service.yaml
@@ -4005,18 +4005,36 @@ components:
       properties:
         target:
           $ref: '#/components/schemas/PolicyAttachmentTarget'
+    ApplicablePolicy:
+      allOf:
+        - type: object
+          description: |
+            For policies returned by GetApplicablePolicies, there are 2 additional fields
+
+            - **inherited:** A boolean flag indicating whether the policy is inherited from target's parents. For non-inheritable policy, it should always be `false`.
+            - **namespace:** A list representing the hierarchical parent path to the policy, ordered from higher level namespace to lower.
+          required:
+            - inherited
+            - namespace
+          properties:
+            inherited:
+              type: boolean
+              default: false
+            namespace:
+              $ref: '#/components/schemas/Namespace'
+        - $ref: '#/components/schemas/Policy'
     GetApplicablePoliciesResponse:
       type: object
       required:
-        - policies
+        - applicable-policies
       properties:
         next-page-token:
           $ref: '#/components/schemas/PageToken'
-        policies:
+        applicable-policies:
           type: array
           uniqueItems: true
           items:
-            $ref: '#/components/schemas/Policy'
+            $ref: '#/components/schemas/ApplicablePolicy'
   responses:
     BadRequestErrorResponse:
       description: Indicates a bad request error. It could be caused by an unexpected request body format or other forms of request validation failure, such as invalid json. Usually serves application/json content, although in some cases simple text/plain content might be returned by the server's middleware.
diff --git a/spec/polaris-catalog-apis/policy-apis.yaml b/spec/polaris-catalog-apis/policy-apis.yaml
index 947e991142..9aa15620cf 100644
--- a/spec/polaris-catalog-apis/policy-apis.yaml
+++ b/spec/polaris-catalog-apis/policy-apis.yaml
@@ -529,6 +529,26 @@ components:
         version:
           type: integer
 
+    ApplicablePolicy:
+      allOf:
+       - type: object
+         description: |
+            For policies returned by GetApplicablePolicies, there are 2 additional fields
+
+            - **inherited:** A boolean flag indicating whether the policy is inherited from target's parents. For non-inheritable policy, it should always be `false`.
+            - **namespace:** A list representing the hierarchical parent path to the policy, ordered from higher level namespace to lower.
+         required:
+           - inherited
+           - namespace
+         properties:
+            inherited:
+              type: boolean
+              default: false
+            namespace:
+              $ref: '../iceberg-rest-catalog-open-api.yaml#/components/schemas/Namespace'
+       - $ref: '#/components/schemas/Policy'
+       
+
     CreatePolicyRequest:
       type: object
       required:
@@ -633,15 +653,15 @@ components:
     GetApplicablePoliciesResponse:
       type: object
       required:
-        - policies
+        - applicable-policies
       properties:
         next-page-token:
           $ref: '../iceberg-rest-catalog-open-api.yaml#/components/schemas/PageToken'
-        policies:
+        applicable-policies:
           type: array
           uniqueItems: true
           items:
-            $ref: '#/components/schemas/Policy'
+            $ref: '#/components/schemas/ApplicablePolicy'
 
   responses:
     CreatePolicyResponse: