diff --git a/public/apps/configuration/panels/role-edit/role-edit.tsx b/public/apps/configuration/panels/role-edit/role-edit.tsx
index 53ec39d30..142cba1b3 100644
--- a/public/apps/configuration/panels/role-edit/role-edit.tsx
+++ b/public/apps/configuration/panels/role-edit/role-edit.tsx
@@ -46,7 +46,7 @@ import {
 } from './tenant-panel';
 import { RoleIndexPermissionStateClass, RoleTenantPermissionStateClass } from './types';
 import { buildHashUrl, buildUrl } from '../../utils/url-builder';
-import { ComboBoxOptions, ResourceType, Action } from '../../types';
+import { ComboBoxOptions, ResourceType, Action, ActionGroupItem } from '../../types';
 import {
   useToastState,
   createUnknownErrorToast,
@@ -106,12 +106,12 @@ export function RoleEdit(props: RoleEditDeps) {
     }
   }, [addToast, props.action, props.coreStart.http, props.sourceRoleName]);
 
-  const [actionGroups, setActionGroups] = useState<string[]>([]);
+  const [actionGroups, setActionGroups] = useState<Array<[string, ActionGroupItem]>>([]);
   React.useEffect(() => {
     const fetchActionGroupNames = async () => {
       try {
         const actionGroupsObject = await fetchActionGroups(props.coreStart.http);
-        setActionGroups(Object.keys(actionGroupsObject));
+        setActionGroups(Object.entries(actionGroupsObject));
       } catch (e) {
         addToast(createUnknownErrorToast('actionGroup', 'load data'));
         console.error(e);
@@ -167,12 +167,25 @@ export function RoleEdit(props: RoleEditDeps) {
   const clusterWisePermissionOptions = [
     {
       label: 'Permission groups',
-      options: actionGroups.map(stringToComboBoxOption),
+      options: actionGroups
+        .filter((actionGroup) => actionGroup[1].type === 'cluster')
+        .map((actionGroup) => actionGroup[0])
+        .map(stringToComboBoxOption),
     },
     {
       label: 'Cluster permissions',
       options: CLUSTER_PERMISSIONS.map(stringToComboBoxOption),
     },
+  ];
+
+  const indexWisePermissionOptions = [
+    {
+      label: 'Permission groups',
+      options: actionGroups
+        .filter((actionGroup) => actionGroup[1].type === 'index')
+        .map((actionGroup) => actionGroup[0])
+        .map(stringToComboBoxOption),
+    },
     {
       label: 'Index permissions',
       options: INDEX_PERMISSIONS.map(stringToComboBoxOption),
@@ -219,7 +232,7 @@ export function RoleEdit(props: RoleEditDeps) {
       <IndexPermissionPanel
         state={roleIndexPermission}
         setState={setRoleIndexPermission}
-        optionUniverse={clusterWisePermissionOptions}
+        optionUniverse={indexWisePermissionOptions}
       />
       <EuiSpacer size="m" />
       <TenantPanel
diff --git a/public/apps/configuration/panels/role-edit/test/role-edit-filtering.test.tsx b/public/apps/configuration/panels/role-edit/test/role-edit-filtering.test.tsx
new file mode 100644
index 000000000..7142db663
--- /dev/null
+++ b/public/apps/configuration/panels/role-edit/test/role-edit-filtering.test.tsx
@@ -0,0 +1,161 @@
+/*
+ *   Copyright OpenSearch Contributors
+ *
+ *   Licensed under the Apache License, Version 2.0 (the "License").
+ *   You may not use this file except in compliance with the License.
+ *   A copy of the License is located at
+ *
+ *       http://www.apache.org/licenses/LICENSE-2.0
+ *
+ *   or in the "license" file accompanying this file. This file is distributed
+ *   on an "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either
+ *   express or implied. See the License for the specific language governing
+ *   permissions and limitations under the License.
+ */
+
+import React from 'react';
+import { ClusterPermissionPanel } from '../cluster-permission-panel';
+import { RoleEdit } from '../role-edit';
+import { ActionGroupItem } from '../../../types';
+import { fetchActionGroups } from '../../../utils/action-groups-utils';
+
+import { render, waitFor } from '@testing-library/react';
+
+import { act } from 'react-dom/test-utils';
+import { IndexPermissionPanel } from '../index-permission-panel';
+import { CLUSTER_PERMISSIONS, INDEX_PERMISSIONS } from '../../../constants';
+
+jest.mock('../../../utils/role-detail-utils', () => ({
+  getRoleDetail: jest.fn().mockReturnValue({
+    cluster_permissions: [],
+    index_permissions: [],
+    tenant_permissions: [],
+    reserved: false,
+  }),
+  updateRole: jest.fn(),
+}));
+jest.mock('../../../utils/action-groups-utils');
+
+jest.mock('../cluster-permission-panel', () => ({
+  ClusterPermissionPanel: jest.fn(() => null) as jest.Mock,
+}));
+
+jest.mock('../index-permission-panel', () => ({
+  IndexPermissionPanel: jest.fn(() => null) as jest.Mock,
+}));
+
+describe('Role edit filtering', () => {
+  const sampleSourceRole = 'role';
+  const mockCoreStart = {
+    http: 1,
+  };
+
+  (fetchActionGroups as jest.Mock).mockResolvedValue({
+    data_access: {
+      reserved: true,
+      hidden: false,
+      allowed_actions: ['indices:data/*', 'crud'],
+      type: 'index',
+      description: 'Allow all read/write operations on data',
+      static: true,
+    },
+    cluster_manage_pipelines: {
+      reserved: true,
+      hidden: false,
+      allowed_actions: ['cluster:admin/ingest/pipeline/*'],
+      type: 'cluster',
+      description: 'Manage pipelines',
+      static: true,
+    },
+  });
+
+  it('basic cluster permission panel rendering', async () => {
+    const action = 'create';
+    const buildBreadcrumbs = jest.fn();
+
+    render(
+      <RoleEdit
+        action={action}
+        sourceRoleName={sampleSourceRole}
+        buildBreadcrumbs={buildBreadcrumbs}
+        coreStart={mockCoreStart as any}
+        navigation={{} as any}
+        params={{} as any}
+        config={{} as any}
+      />
+    );
+
+    await act(async () => {
+      await waitFor(() => {
+        expect(ClusterPermissionPanel).toHaveBeenCalled();
+      });
+    });
+
+    const lastCallArgs =
+      ClusterPermissionPanel.mock.calls[ClusterPermissionPanel.mock.calls.length - 1];
+    const [props] = lastCallArgs;
+
+    // Cluster Permission Panel props is filtered to action groups with type cluster, and only the cluster permission constants
+    expect(props.optionUniverse).toEqual([
+      {
+        label: 'Permission groups',
+        options: [
+          {
+            label: 'cluster_manage_pipelines',
+          },
+        ],
+      },
+      {
+        label: 'Cluster permissions',
+        options: CLUSTER_PERMISSIONS.map((x) => {
+          return { label: x };
+        }),
+      },
+    ]);
+  });
+
+  it('basic index permission panel rendering', async () => {
+    const action = 'create';
+    const buildBreadcrumbs = jest.fn();
+
+    render(
+      <RoleEdit
+        action={action}
+        sourceRoleName={sampleSourceRole}
+        buildBreadcrumbs={buildBreadcrumbs}
+        coreStart={mockCoreStart as any}
+        navigation={{} as any}
+        params={{} as any}
+        config={{} as any}
+      />
+    );
+
+    await act(async () => {
+      await waitFor(() => {
+        expect(IndexPermissionPanel).toHaveBeenCalled();
+      });
+    });
+
+    const lastCallArgs =
+      IndexPermissionPanel.mock.calls[IndexPermissionPanel.mock.calls.length - 1];
+    const [props] = lastCallArgs;
+
+    // Index Permission Panel props is filtered to action groups with type index, and only the index permission constants
+    expect(props.optionUniverse).toEqual([
+      {
+        label: 'Permission groups',
+        options: [
+          {
+            label: 'data_access',
+          },
+        ],
+      },
+      {
+        label: 'Index permissions',
+        options: INDEX_PERMISSIONS.map((x) => {
+          return { label: x };
+        }),
+      },
+    ]);
+  });
+});