diff --git a/.claude/settings.json b/.claude/settings.json
deleted file mode 100644
index 8c1d85f96e..0000000000
--- a/.claude/settings.json
+++ /dev/null
@@ -1,36 +0,0 @@
-{
-  "permissions": {
-    "allow": [
-      "Bash(git show:*)",
-      "Bash(git worktree add:*)",
-      "Read(//Users/krrishdholakia/Documents/litellm/**)",
-      "Read(//Users/krrishdholakia/Documents/litellm-claude-code-guardrails/litellm/types/**)",
-      "Read(//Users/krrishdholakia/Documents/litellm-claude-code-guardrails/**)",
-      "Read(//Users/krrishdholakia/Documents/litellm-claude-code-guardrails/litellm/**)",
-      "Bash(python:*)",
-      "Bash(python -c \"\nimport sys; sys.path.insert\\(0, ''.''\\)\nfrom litellm.proxy.guardrails.guardrail_hooks.claude_code.guardrail import ClaudeCodeGuardrail, HOSTED_TOOL_PREFIXES\nprint\\(''HOSTED_TOOL_PREFIXES:'', HOSTED_TOOL_PREFIXES\\)\nprint\\(''ClaudeCodeGuardrail imported OK''\\)\n\")",
-      "Read(//Users/krrishdholakia/Documents/litellm-mcp-jwt-groups/litellm/proxy/**)",
-      "Read(//Users/krrishdholakia/Documents/litellm-mcp-jwt-groups/**)",
-      "Bash(poetry run pytest:*)",
-      "Bash(git add:*)",
-      "Bash(git commit:*)",
-      "Bash(poetry run python:*)",
-      "Bash(poetry run pip:*)",
-      "Bash(git reset:*)",
-      "Bash(git cherry-pick:*)",
-      "Bash(git checkout:*)",
-      "Read(//Users/krrishdholakia/Documents/litellm/litellm/proxy/guardrails/guardrail_hooks/**)",
-      "Read(//Users/krrishdholakia/Documents/**)",
-      "Bash(git -C /Users/krrishdholakia/Documents/litellm-mcp-user-permissions worktree list)",
-      "Bash(ls:*)"
-    ],
-    "additionalDirectories": [
-      "/Users/krrishdholakia/Documents/litellm-mcp-group-plan/plan",
-      "/Users/krrishdholakia/Documents/litellm-claude-code-guardrails/litellm/proxy/guardrails/guardrail_hooks/claude_code",
-      "/Users/krrishdholakia/Documents/litellm-claude-code-guardrails/litellm/types",
-      "/Users/krrishdholakia/Documents/litellm-claude-code-guardrails",
-      "/Users/krrishdholakia/Documents/litellm-mcp-jwt-groups/litellm/proxy",
-      "/Users/krrishdholakia/Documents/litellm-mcp-jwt-groups/tests/test_litellm/proxy/auth"
-    ]
-  }
-}
diff --git a/.semgrep/rules/security/no-claude-directory.yml b/.semgrep/rules/security/no-claude-directory.yml
new file mode 100644
index 0000000000..7d120a7c23
--- /dev/null
+++ b/.semgrep/rules/security/no-claude-directory.yml
@@ -0,0 +1,18 @@
+rules:
+  - id: no-claude-directory-committed
+    message: >
+      .claude/ directory must not be committed to the repository.
+      It contains local Claude Code settings (permissions, worktree paths) that are
+      developer-machine-specific and may expose internal paths or credentials.
+      Add .claude/ to .gitignore instead.
+    severity: ERROR
+    languages: [generic]
+    paths:
+      include:
+        - "/.claude/**"
+        - "/.claude/*"
+    pattern-regex: '[\s\S]+'
+    metadata:
+      category: security
+      tags: [supply-chain, secrets]
+      confidence: HIGH