diff --git a/src/AzExtWrapper.ts b/src/AzExtWrapper.ts
index 9240736d..61d4526c 100644
--- a/src/AzExtWrapper.ts
+++ b/src/AzExtWrapper.ts
@@ -63,6 +63,10 @@ export class AzExtWrapper {
         return this._resourceTypes.some(rt => rt === resource.resourceType);
     }
 
+    public supportsResourceType(resourceType: AzExtResourceType | string): boolean {
+        return this._resourceTypes.some(rt => rt === resourceType);
+    }
+
     public getCodeExtension(): Extension<apiUtils.AzureExtensionApiProvider> | undefined {
         return extensions.getExtension(this.id);
     }
diff --git a/src/tree/azure/grouping/GroupingItem.ts b/src/tree/azure/grouping/GroupingItem.ts
index 91867b47..65da81f0 100644
--- a/src/tree/azure/grouping/GroupingItem.ts
+++ b/src/tree/azure/grouping/GroupingItem.ts
@@ -74,6 +74,14 @@ export class GroupingItem implements ResourceGroupsItem {
         return resources;
     }
 
+    /**
+     * Get generic items to display when there are no resources.
+     * Can be overridden by subclasses to provide custom items.
+     */
+    getGenericItemsForEmptyGroup(): ResourceGroupsItem[] | undefined {
+        return undefined;
+    }
+
     async getChildren(): Promise<ResourceGroupsItem[] | undefined> {
 
         const sortedResources = this.getResourcesToDisplay(this.resources).sort((a, b) => {
@@ -85,6 +93,11 @@ export class GroupingItem implements ResourceGroupsItem {
             return a.name.localeCompare(b.name);
         });
 
+        // If there are no resources, check if there are generic items to display
+        if (sortedResources.length === 0) {
+            return this.getGenericItemsForEmptyGroup();
+        }
+
         const subscriptionGroupingMap = new Map<AzureSubscription, AzureResource[]>();
 
         sortedResources.forEach(resource => {
diff --git a/src/tree/azure/grouping/ResourceTypeGroupingItem.ts b/src/tree/azure/grouping/ResourceTypeGroupingItem.ts
index ae83b4e6..a384dc4a 100644
--- a/src/tree/azure/grouping/ResourceTypeGroupingItem.ts
+++ b/src/tree/azure/grouping/ResourceTypeGroupingItem.ts
@@ -4,7 +4,13 @@
 *--------------------------------------------------------------------------------------------*/
 
 import { AzExtResourceType } from "api/src/AzExtResourceType";
+import { getName } from "src/utils/azureUtils";
+import * as vscode from 'vscode';
+import { getAzureExtensions } from "../../../AzExtWrapper";
 import { canFocusContextValue } from "../../../constants";
+import { localize } from "../../../utils/localize";
+import { GenericItem } from "../../GenericItem";
+import { ResourceGroupsItem } from "../../ResourceGroupsItem";
 import { GroupingItem, GroupingItemOptions } from "./GroupingItem";
 import { GroupingItemFactoryOptions } from "./GroupingItemFactory";
 
@@ -18,6 +24,49 @@ export class ResourceTypeGroupingItem extends GroupingItem {
 
         this.contextValues.push('azureResourceTypeGroup', resourceType, canFocusContextValue);
     }
+
+    override getGenericItemsForEmptyGroup(): ResourceGroupsItem[] | undefined {
+        // Find the extension for this resource type
+        const extension = getAzureExtensions().find(ext =>
+            ext.supportsResourceType(this.resourceType)
+        );
+
+        if (!extension || extension.isPrivate()) {
+            return undefined;
+        }
+
+        // Special handling for AI Foundry - open the view in the extension if installed
+        if (this.resourceType === AzExtResourceType.AiFoundry && extension.isInstalled()) {
+            return [
+                new GenericItem(
+                    localize('openInFoundryExtension', `Open in ${getName(AzExtResourceType.AiFoundry)} Extension`),
+                    {
+                        commandArgs: [],
+                        commandId: 'microsoft-foundry-resources.focus',
+                        contextValue: 'openInFoundryExtension',
+                        iconPath: new vscode.ThemeIcon('symbol-method-arrow'),
+                        id: `${this.id}/openInFoundryExtension`
+                    })
+            ];
+        }
+
+        // If the extension is not installed and is not private, show an "Install extension" item
+        if (!extension.isInstalled()) {
+            return [
+                new GenericItem(
+                    localize('openInExtension', 'Open in {0} Extension', extension.label),
+                    {
+                        commandArgs: [extension.id],
+                        commandId: 'azureResourceGroups.installExtension',
+                        contextValue: 'installExtension',
+                        iconPath: new vscode.ThemeIcon('extensions'),
+                        id: `${this.id}/installExtension`
+                    })
+            ];
+        }
+
+        return undefined;
+    }
 }
 
 export function isResourceTypeGroupingItem(groupingItem: GroupingItem): groupingItem is ResourceTypeGroupingItem {
diff --git a/test/grouping.test.ts b/test/grouping.test.ts
index ec18665e..8a1fd59c 100644
--- a/test/grouping.test.ts
+++ b/test/grouping.test.ts
@@ -54,4 +54,32 @@ suite('Azure resource grouping tests', async () => {
         const locationGroup = groups.find(group => (group as LocationGroupingItem).location === mocks.sub1.rg1.location);
         assert.ok(locationGroup);
     });
+
+    test('Resource type group with no resources shows install or open extension item', async () => {
+        createMockSubscriptionWithFunctions();
+
+        await commands.executeCommand('azureResourceGroups.groupBy.resourceType');
+
+        const tdp = api().azureResourceTreeDataProvider;
+        const subscriptions = await tdp.getChildren();
+
+        const groups = await tdp.getChildren(subscriptions![0]) as GroupingItem[];
+
+        // Find a resource type group that has no resources (e.g., AiFoundry)
+        const aiFoundryGroup = groups.find(group =>
+            isResourceTypeGroupingItem(group) &&
+            (group as ResourceTypeGroupingItem).resourceType === AzExtResourceType.AiFoundry
+        );
+
+        if (aiFoundryGroup) {
+            const children = await aiFoundryGroup.getChildren();
+
+            // Should have at least one child (either "Install extension" or "Open in AI Foundry Extension" item)
+            assert.ok(children && children.length > 0, 'Expected extension item for empty resource type group');
+
+            // First child should be a GenericItem
+            const firstChild = children[0];
+            assert.ok(firstChild && typeof firstChild === 'object' && 'label' in firstChild && 'id' in firstChild, 'Expected first child to be a GenericItem');
+        }
+    });
 });