diff --git a/pkg/service/roommanager.go b/pkg/service/roommanager.go
index 7b38c82c6..94acd7963 100644
--- a/pkg/service/roommanager.go
+++ b/pkg/service/roommanager.go
@@ -1178,7 +1178,9 @@ func (r *RoomManager) refreshToken(participant types.LocalParticipant) error {
 		SetAttributes(grants.Attributes).
 		SetVideoGrant(grants.Video).
 		SetRoomConfig(grants.GetRoomConfiguration()).
-		SetRoomPreset(grants.RoomPreset)
+		SetRoomPreset(grants.RoomPreset).
+		// keep the join token's grant; self-hosted never adds one, as there is no Cloud ingest behind it
+		SetObservabilityGrant(grants.Observability)
 	jwt, err := token.ToJWT()
 	if err == nil {
 		err = participant.SendRefreshToken(jwt)
diff --git a/pkg/service/roommanager_token_test.go b/pkg/service/roommanager_token_test.go
new file mode 100644
index 000000000..e2e389929
--- /dev/null
+++ b/pkg/service/roommanager_token_test.go
@@ -0,0 +1,43 @@
+package service
+
+import (
+	"testing"
+
+	"github.com/stretchr/testify/require"
+
+	"github.com/livekit/protocol/auth"
+	"github.com/livekit/protocol/utils"
+
+	"github.com/livekit/livekit-server/pkg/config"
+	"github.com/livekit/livekit-server/pkg/rtc/types/typesfakes"
+)
+
+// refreshToken backs every refresh: the first one at join, the periodic tick and claims changes.
+func TestRefreshTokenKeepsObservabilityGrant(t *testing.T) {
+	for name, obs := range map[string]*auth.ObservabilityGrant{
+		"none":  nil,
+		"write": {Write: true},
+	} {
+		t.Run(name, func(t *testing.T) {
+			secret := utils.RandomSecret()
+			r := &RoomManager{config: &config.Config{Keys: map[string]string{"APIkey": secret}}}
+
+			p := &typesfakes.FakeLocalParticipant{}
+			p.IdentityReturns("alice")
+			p.ClaimGrantsReturns(&auth.ClaimGrants{
+				Identity:      "alice",
+				Video:         &auth.VideoGrant{RoomJoin: true, Room: "room"},
+				Observability: obs,
+			})
+
+			require.NoError(t, r.refreshToken(p))
+			require.Equal(t, 1, p.SendRefreshTokenCallCount())
+
+			v, err := auth.ParseAPIToken(p.SendRefreshTokenArgsForCall(0))
+			require.NoError(t, err)
+			_, grants, err := v.Verify(secret)
+			require.NoError(t, err)
+			require.Equal(t, obs, grants.Observability, "kept as joined, never added")
+		})
+	}
+}