diff --git a/src/main/java/edu/harvard/iq/dataverse/api/Index.java b/src/main/java/edu/harvard/iq/dataverse/api/Index.java
index f83506c7e27..39e93d445b1 100644
--- a/src/main/java/edu/harvard/iq/dataverse/api/Index.java
+++ b/src/main/java/edu/harvard/iq/dataverse/api/Index.java
@@ -372,8 +372,8 @@ public Response indexMod(@QueryParam("partitions") long partitions, @QueryParam(
     @GET
     @Path("perms")
     public Response indexAllPermissions() {
-        IndexResponse indexResponse = solrIndexService.indexAllPermissions();
-        return ok(indexResponse.getMessage());
+        solrIndexService.asyncIndexAllPermissions();
+        return ok("Asynchronous indexing of all permissions has been started. Check the server logs for progress.");
     }
 
     @GET
diff --git a/src/main/java/edu/harvard/iq/dataverse/search/SolrIndexServiceBean.java b/src/main/java/edu/harvard/iq/dataverse/search/SolrIndexServiceBean.java
index dfcb61438e6..65997a1bc7e 100644
--- a/src/main/java/edu/harvard/iq/dataverse/search/SolrIndexServiceBean.java
+++ b/src/main/java/edu/harvard/iq/dataverse/search/SolrIndexServiceBean.java
@@ -27,6 +27,7 @@
 import java.util.logging.Logger;
 import java.util.stream.Stream;
 
+import jakarta.ejb.Asynchronous;
 import jakarta.ejb.EJB;
 import jakarta.ejb.Stateless;
 import jakarta.ejb.TransactionAttribute;
@@ -103,20 +104,6 @@ public List<DvObjectSolrDoc> determineSolrDocs(DvObject dvObject) {
         return solrDocs;
     }
 
-    private List<DvObjectSolrDoc> determineSolrDocsForFilesFromDataset(Map.Entry<Long, List<Long>> datasetHash) {
-        List<DvObjectSolrDoc> emptyList = new ArrayList<>();
-        List<DvObjectSolrDoc> solrDocs = emptyList;
-        DvObject dvObject = dvObjectService.findDvObject(datasetHash.getKey());
-        if (dvObject == null) {
-            return emptyList;
-        }
-        if (dvObject.isInstanceofDataset()) {
-            Dataset dataset = (Dataset) dvObject;
-            solrDocs.addAll(constructDatafileSolrDocsFromDataset(dataset));
-        }
-        return solrDocs;
-    }
-
     /**
      * @todo should this method return a List? The equivalent methods for
      * datasets and files return lists.
@@ -155,29 +142,6 @@ private DvObjectSolrDoc constructDatafileSolrDoc(DataFileProxy fileProxy, List<S
         return new DvObjectSolrDoc(fileProxy.getFileId().toString(), solrId, versionId, fileProxy.getName(), perms);
     }
 
-    private List<DvObjectSolrDoc> constructDatafileSolrDocsFromDataset(Dataset dataset) {
-        List<DvObjectSolrDoc> datafileSolrDocs = new ArrayList<>();
-        for (DatasetVersion datasetVersionFileIsAttachedTo : datasetVersionsToBuildCardsFor(dataset)) {
-            List<String> perms = new ArrayList<>();
-            if (datasetVersionFileIsAttachedTo.isReleased()) {
-                perms.add(IndexServiceBean.getPublicGroupString());
-            } else {
-                perms = searchPermissionsService.findDatasetVersionPerms(datasetVersionFileIsAttachedTo);
-            }
-
-            for (FileMetadata fileMetadata : datasetVersionFileIsAttachedTo.getFileMetadatas()) {
-                Long fileId = fileMetadata.getDataFile().getId();
-                String solrIdStart = IndexServiceBean.solrDocIdentifierFile + fileId;
-                String solrIdEnd = getDatasetOrDataFileSolrEnding(datasetVersionFileIsAttachedTo.getVersionState());
-                String solrId = solrIdStart + solrIdEnd;
-                DvObjectSolrDoc dataFileSolrDoc = new DvObjectSolrDoc(fileId.toString(), solrId, datasetVersionFileIsAttachedTo.getId(), fileMetadata.getLabel(), perms);
-                logger.finest("adding fileid " + fileId);
-                datafileSolrDocs.add(dataFileSolrDoc);
-            }
-        }
-        return datafileSolrDocs;
-    }
-
     /** Find the versions to index. The overall logic is
      *  If there is only one version, or no released version (all non-draft versions are deaccessioned)
      *    then index it regardless of it's versionstate
@@ -227,60 +191,58 @@ private String getDatasetOrDataFileSolrEnding(DatasetVersion.VersionState versio
         }
     }
 
-    public IndexResponse indexAllPermissions() {
-        Collection<SolrInputDocument> docs = new ArrayList<>();
-
-        List<DvObjectSolrDoc> definitionPoints = new ArrayList<>();
-        Map<Long, List<Long>> filesPerDataset = new HashMap<>();
-        List<DvObject> allExceptFiles = dvObjectService.findAll();
-        for (DvObject dvObject : allExceptFiles) {
-            logger.fine("determining definition points for dvobject id " + dvObject.getId());
-            if (dvObject.isInstanceofDataFile()) {
-                Long dataset = dvObject.getOwner().getId();
-                Long datafile = dvObject.getId();
-
-                List<Long> files = filesPerDataset.get(dataset);
-                if (files == null) {
-                    files = new ArrayList<>();
-                    filesPerDataset.put(dataset, files);
-                }
-                files.add(datafile);
-            } else {
-                definitionPoints.addAll(determineSolrDocs(dvObject));
-            }
-        }
-
-        List<DvObject> all = allExceptFiles;
-        for (Map.Entry<Long, List<Long>> filePerDataset : filesPerDataset.entrySet()) {
-            definitionPoints.addAll(determineSolrDocsForFilesFromDataset(filePerDataset));
-            for (long fileId : filePerDataset.getValue()) {
-                DvObject file = dvObjectService.findDvObject(fileId);
-                if (file != null) {
-                    all.add(file);
-                }
-            }
-        }
-
-        for (DvObjectSolrDoc dvObjectSolrDoc : definitionPoints) {
-            logger.fine("creating solr doc in memory for " + dvObjectSolrDoc.getSolrId());
-            SolrInputDocument solrInputDocument = SearchUtil.createSolrDoc(dvObjectSolrDoc);
-            logger.fine("adding to list of docs to index " + dvObjectSolrDoc.getSolrId());
-            docs.add(solrInputDocument);
-        }
+    @Asynchronous
+    public void asyncIndexAllPermissions() {
+        logger.info("Starting asynchronous indexing of all permissions");
+        long startTime = System.currentTimeMillis();
+        
         try {
-            persistToSolr(docs);
-            /**
-             * @todo Do we need a separate permissionIndexTime timestamp?
-             * Probably. Update it here.
-             */
-            for (DvObject dvObject : all) {
-                dvObjectService.updatePermissionIndexTime(dvObject);
+           
+            // Get ALL dataverses in the system
+            List<Long> allDataverseIds = em.createQuery(
+                "SELECT d.id FROM Dataverse d ORDER BY d.id", Long.class)
+                .getResultList();
+            
+            logger.info("Found " + allDataverseIds.size() + " dataverses to index (each will index its datasets and files)");
+            
+            int processedCount = 0;
+            
+            // Index each dataverse (which will automatically index all its datasets and files)
+            for (Long dataverseId : allDataverseIds) {
+                try {
+                    Dataverse dataverse = dataverseService.find(dataverseId);
+                    if (dataverse == null) {
+                        logger.warning("Dataverse not found: " + dataverseId);
+                        continue;
+                    }
+                    
+                    logger.fine("Indexing permissions for Dataverse " + dataverseId + 
+                               " (" + dataverse.getName() + ") and all its datasets/files");
+                    
+                    // This will index the dataverse itself and all its direct dataset children (with their files)
+                    IndexResponse response = indexPermissionsOnSelfAndChildren(dataverse);
+                    processedCount++;
+                    
+                    logger.fine("Indexed Dataverse " + dataverseId + ": " + response.getMessage());
+                    
+                    // Clear persistence context periodically to free memory
+                    if (processedCount % 10 == 0) {
+                        em.clear();
+                        logger.info("Processed " + processedCount + "/" + allDataverseIds.size() + " dataverses");
+                    }
+                    
+                } catch (Exception e) {
+                    logger.log(Level.WARNING, "Error indexing permissions for dataverse " + dataverseId, e);
+                }
             }
-            return new IndexResponse("indexed all permissions");
-        } catch (SolrServerException | IOException ex) {
-            return new IndexResponse("problem indexing");
+            
+            long duration = System.currentTimeMillis() - startTime;
+            logger.info("Completed asynchronous indexing of all permissions. Processed " + 
+                        processedCount + " dataverses (with all their datasets and files) in " + duration + "ms");
+            
+        } catch (Exception e) {
+            logger.log(Level.SEVERE, "Error during asynchronous permission indexing", e);
         }
-
     }
 
     public IndexResponse indexPermissionsForOneDvObject(DvObject dvObject) {