diff --git a/app/code/Magento/Ui/view/base/web/js/form/components/insert-listing.js b/app/code/Magento/Ui/view/base/web/js/form/components/insert-listing.js
index 52857c94fcf1a..f967f6fe89522 100644
--- a/app/code/Magento/Ui/view/base/web/js/form/components/insert-listing.js
+++ b/app/code/Magento/Ui/view/base/web/js/form/components/insert-listing.js
@@ -276,7 +276,14 @@ define([
             _.extend(selectionsData, this.params || {}, selections.params);
 
             if (selections[itemsType] && selections[itemsType].length) {
-                selectionsData.filters = {};
+                /**
+                 * In exclude mode the request is constrained by 'nin' on the excluded ids only,
+                 * so the applied grid filters must be preserved - otherwise the whole
+                 * unfiltered collection (minus excluded ids) would be requested.
+                 */
+                if (!selections.excludeMode) {
+                    selectionsData.filters = {};
+                }
                 selectionsData['filters_modifier'] = {};
                 selectionsData['filters_modifier'][this.indexField] = {
                     'condition_type': filterType,
diff --git a/dev/tests/js/jasmine/tests/app/code/Magento/Ui/base/js/form/components/insert-listing.test.js b/dev/tests/js/jasmine/tests/app/code/Magento/Ui/base/js/form/components/insert-listing.test.js
new file mode 100644
index 0000000000000..142bf12896cb9
--- /dev/null
+++ b/dev/tests/js/jasmine/tests/app/code/Magento/Ui/base/js/form/components/insert-listing.test.js
@@ -0,0 +1,106 @@
+/**
+ * Copyright 2026 Adobe
+ * All Rights Reserved.
+ */
+/* eslint-disable max-nested-callbacks */
+define([
+    'Magento_Ui/js/form/components/insert-listing'
+], function (Constr) {
+    'use strict';
+
+    describe('Magento_Ui/js/form/components/insert-listing', function () {
+        describe('"updateFromServerData" method', function () {
+            var context,
+                requestedData;
+
+            beforeEach(function () {
+                requestedData = null;
+
+                context = {
+                    indexField: 'entity_id',
+                    params: {},
+                    requestConfig: {
+                        method: 'POST'
+                    },
+
+                    /**
+                     * Captures the payload the component would send to the server.
+                     *
+                     * @param {Object} data
+                     * @returns {Object}
+                     */
+                    requestData: function (data) {
+                        requestedData = data;
+
+                        return {
+                            /** Stub */
+                            done: function () {
+                                return this;
+                            },
+
+                            /** Stub */
+                            fail: function () {
+                                return this;
+                            }
+                        };
+                    },
+
+                    /** Stub */
+                    setExternalValue: function () {},
+
+                    /** Stub */
+                    loading: function () {},
+
+                    /** Stub */
+                    onError: function () {}
+                };
+            });
+
+            it('keeps applied grid filters when rows are excluded from the selection', function () {
+                var selections = {
+                    excluded: ['1', '2'],
+                    selected: [],
+                    excludeMode: true,
+                    params: {
+                        filters: {
+                            name: 'Bag'
+                        },
+                        namespace: 'product_listing'
+                    }
+                };
+
+                Constr.prototype.updateFromServerData.call(context, selections, 'excluded');
+
+                expect(requestedData.filters).toEqual({
+                    name: 'Bag'
+                });
+                expect(requestedData['filters_modifier']['entity_id']).toEqual({
+                    'condition_type': 'nin',
+                    value: ['1', '2']
+                });
+            });
+
+            it('resets applied grid filters when rows are explicitly selected', function () {
+                var selections = {
+                    excluded: [],
+                    selected: ['1', '2'],
+                    excludeMode: false,
+                    params: {
+                        filters: {
+                            name: 'Bag'
+                        },
+                        namespace: 'product_listing'
+                    }
+                };
+
+                Constr.prototype.updateFromServerData.call(context, selections, 'selected');
+
+                expect(requestedData.filters).toEqual({});
+                expect(requestedData['filters_modifier']['entity_id']).toEqual({
+                    'condition_type': 'in',
+                    value: ['1', '2']
+                });
+            });
+        });
+    });
+});