diff --git a/src/components/EntityPicker/EntityBubble.vue b/src/components/EntityPicker/EntityBubble.vue
index b5865392b..4253ad232 100644
--- a/src/components/EntityPicker/EntityBubble.vue
+++ b/src/components/EntityPicker/EntityBubble.vue
@@ -7,7 +7,8 @@
 		class="entity-picker__bubble"
 		:margin="0"
 		:size="22"
-		:display-name="label">
+		:display-name="label"
+		:user="shareType === ShareType.User ? user : undefined">
 		<template #name>
 			<a
 				href="#"
@@ -19,6 +20,7 @@
 </template>
 
 <script>
+import { ShareType } from '@nextcloud/sharing'
 import { NcUserBubble as UserBubble } from '@nextcloud/vue'
 
 export default {
@@ -52,6 +54,28 @@ export default {
 			type: String,
 			required: true,
 		},
+
+		/**
+		 * Share type of the entity. e.g user, group, email, remote...
+		 */
+		shareType: {
+			type: Number,
+			default: undefined,
+		},
+
+		/**
+		 * User identifier (for user-type entities)
+		 */
+		user: {
+			type: String,
+			default: undefined,
+		},
+	},
+
+	setup() {
+		return {
+			ShareType,
+		}
 	},
 
 	methods: {
diff --git a/src/components/EntityPicker/EntitySearchResult.vue b/src/components/EntityPicker/EntitySearchResult.vue
index b22ef6fd3..e67130256 100644
--- a/src/components/EntityPicker/EntitySearchResult.vue
+++ b/src/components/EntityPicker/EntitySearchResult.vue
@@ -13,7 +13,7 @@
 		class="entity-picker__bubble"
 		:class="{ 'entity-picker__bubble--selected': isSelected }"
 		:display-name="source.label"
-		:user="source.user"
+		:user="source.shareType === ShareType.User ? source.user : undefined"
 		:margin="6"
 		:size="44"
 		url="#"
@@ -25,6 +25,7 @@
 </template>
 
 <script>
+import { ShareType } from '@nextcloud/sharing'
 import { NcUserBubble as UserBubble } from '@nextcloud/vue'
 
 export default {
@@ -53,6 +54,12 @@ export default {
 		},
 	},
 
+	setup() {
+		return {
+			ShareType,
+		}
+	},
+
 	computed: {
 		isSelected() {
 			return this.source.id in this.selection
diff --git a/src/components/MemberList/MemberList.vue b/src/components/MemberList/MemberList.vue
index e751aa41d..cffacc1e5 100644
--- a/src/components/MemberList/MemberList.vue
+++ b/src/components/MemberList/MemberList.vue
@@ -186,7 +186,7 @@ export default defineComponent({
 			this.pickerLoading = true
 
 			try {
-				const results = await getSuggestions(term)
+				const results = await getSuggestions(term, this.circle)
 				this.pickerData = results
 			} catch (error) {
 				console.error('Unable to get the results', error)
@@ -241,7 +241,7 @@ export default defineComponent({
 		},
 
 		async onGuestCreated(guest) {
-			const results = await getSuggestions(guest.username)
+			const results = await getSuggestions(guest.username, this.circle)
 			this.$refs.entityPicker.onClick(results[0])
 		},
 	},
diff --git a/src/models/constants.ts b/src/models/constants.ts
index b2b5cfce8..ddbc72d28 100644
--- a/src/models/constants.ts
+++ b/src/models/constants.ts
@@ -130,13 +130,13 @@ export const CIRCLES_MEMBER_GROUPING = [
 		share: ShareType.Group,
 		type: MEMBER_TYPE_GROUP,
 	},
-	// TODO: implement federated
-	// {
-	// id: `picker-${ShareType.Remote}`,
-	// label: t('contacts', 'federated users'),
-	// share: ShareType.Remote,
-	// type: MEMBER_TYPE_USER
-	// },
+	{
+		id: `picker-${ShareType.Remote}`,
+		label: t('contacts', 'federated users'),
+		labelStandalone: t('contacts', 'Federated users'),
+		share: ShareType.Remote,
+		type: MEMBER_TYPE_USER,
+	},
 	// {
 	// id: `picker-${ShareType.RemoteGroup}`,
 	// label: t('contacts', 'federated groups'),
diff --git a/src/services/collaborationAutocompletion.js b/src/services/collaborationAutocompletion.js
index ee01016d4..24dda895f 100644
--- a/src/services/collaborationAutocompletion.js
+++ b/src/services/collaborationAutocompletion.js
@@ -5,7 +5,8 @@
 
 import axios from '@nextcloud/axios'
 import { generateOcsUrl } from '@nextcloud/router'
-import { SHARES_TYPES_MEMBER_MAP } from '../models/constants.ts'
+import { ShareType } from '@nextcloud/sharing'
+import { CircleConfigs, SHARES_TYPES_MEMBER_MAP } from '../models/constants.ts'
 
 // generate allowed shareType from SHARES_TYPES_MEMBER_MAP
 const shareType = Object.keys(SHARES_TYPES_MEMBER_MAP)
@@ -15,12 +16,13 @@ const maxAutocompleteResults = parseInt(window.OC.config['sharing.maxAutocomplet
  * Get suggestions
  *
  * @param {string} search the search query
+ * @param {object|null} circle - the circle object
  */
-export async function getSuggestions(search) {
+export async function getSuggestions(search, circle = null) {
 	const request = await axios.get(generateOcsUrl('apps/files_sharing/api/v1/sharees'), {
 		params: {
 			format: 'json',
-			itemType: 'contacts',
+			itemType: 'teams',
 			search,
 			perPage: maxAutocompleteResults,
 			shareType,
@@ -33,8 +35,24 @@ export async function getSuggestions(search) {
 	data.exact = [] // removing exact from general results
 
 	// flatten array of arrays
-	const rawExactSuggestions = Object.values(exact).reduce((arr, elem) => arr.concat(elem), [])
-	const rawSuggestions = Object.values(data).reduce((arr, elem) => arr.concat(elem), [])
+	let rawExactSuggestions = Object.values(exact).reduce((arr, elem) => arr.concat(elem), [])
+	let rawSuggestions = Object.values(data).reduce((arr, elem) => arr.concat(elem), [])
+
+	// check if federation flag is enabled using bitwise AND on circle config
+	const isCircleFederated = circle ? (circle.config & CircleConfigs.FEDERATED) !== 0 : false
+	if (isCircleFederated) {
+		// remove results from untrusted remote servers
+		rawExactSuggestions = rawExactSuggestions
+			.filter((result) => !(result.value?.shareType === ShareType.Remote && result.value?.isTrustedServer === false))
+		rawSuggestions = rawSuggestions
+			.filter((result) => !(result.value?.shareType === ShareType.Remote && result.value?.isTrustedServer === false))
+	} else {
+		// remove all results from remote servers
+		rawExactSuggestions = rawExactSuggestions
+			.filter((result) => result.value?.shareType !== ShareType.Remote)
+		rawSuggestions = rawSuggestions
+			.filter((result) => result.value?.shareType !== ShareType.Remote)
+	}
 
 	// remove invalid data and format to user-select layout
 	const exactSuggestions = rawExactSuggestions