diff --git a/src/api/providers/fetchers/__tests__/litellm.spec.ts b/src/api/providers/fetchers/__tests__/litellm.spec.ts
index c05cda8839..212dc6a7c6 100644
--- a/src/api/providers/fetchers/__tests__/litellm.spec.ts
+++ b/src/api/providers/fetchers/__tests__/litellm.spec.ts
@@ -262,6 +262,26 @@ describe("getLiteLLMModels", () => {
 		})
 	})
 
+	it("makes request without authorization header when API key is undefined", async () => {
+		const mockResponse = {
+			data: {
+				data: [],
+			},
+		}
+
+		mockedAxios.get.mockResolvedValue(mockResponse)
+
+		await getLiteLLMModels(undefined, "http://localhost:4000")
+
+		expect(mockedAxios.get).toHaveBeenCalledWith("http://localhost:4000/v1/model/info", {
+			headers: {
+				"Content-Type": "application/json",
+				...DEFAULT_HEADERS,
+			},
+			timeout: 5000,
+		})
+	})
+
 	it("handles computer use models correctly", async () => {
 		const mockResponse = {
 			data: {
diff --git a/src/api/providers/fetchers/litellm.ts b/src/api/providers/fetchers/litellm.ts
index de895d01fb..639db46fb5 100644
--- a/src/api/providers/fetchers/litellm.ts
+++ b/src/api/providers/fetchers/litellm.ts
@@ -11,7 +11,7 @@ import { DEFAULT_HEADERS } from "../constants"
  * @returns A promise that resolves to a record of model IDs to model info
  * @throws Will throw an error if the request fails or the response is not as expected.
  */
-export async function getLiteLLMModels(apiKey: string, baseUrl: string): Promise<ModelRecord> {
+export async function getLiteLLMModels(apiKey: string | undefined, baseUrl: string): Promise<ModelRecord> {
 	try {
 		const headers: Record<string, string> = {
 			"Content-Type": "application/json",
diff --git a/src/api/providers/lite-llm.ts b/src/api/providers/lite-llm.ts
index cf8d16a112..e195a4da3b 100644
--- a/src/api/providers/lite-llm.ts
+++ b/src/api/providers/lite-llm.ts
@@ -26,7 +26,7 @@ export class LiteLLMHandler extends RouterProvider implements SingleCompletionHa
 			options,
 			name: "litellm",
 			baseURL: `${options.litellmBaseUrl || "http://localhost:4000"}`,
-			apiKey: options.litellmApiKey || "dummy-key",
+			apiKey: options.litellmApiKey || "",
 			modelId: options.litellmModelId,
 			defaultModelId: litellmDefaultModelId,
 			defaultModelInfo: litellmDefaultModelInfo,
diff --git a/src/core/webview/webviewMessageHandler.ts b/src/core/webview/webviewMessageHandler.ts
index fac7ed10d5..00b8aca408 100644
--- a/src/core/webview/webviewMessageHandler.ts
+++ b/src/core/webview/webviewMessageHandler.ts
@@ -929,20 +929,27 @@ export const webviewMessageHandler = async (provider: ClineProvider, message: We
 				{ key: "vercel-ai-gateway", options: { provider: "vercel-ai-gateway" } },
 			]
 
-			// LiteLLM is conditional on baseUrl+apiKey
+			// LiteLLM is conditional on baseUrl (apiKey is optional for self-hosted instances)
 			const litellmApiKey = apiConfiguration.litellmApiKey || message?.values?.litellmApiKey
 			const litellmBaseUrl = apiConfiguration.litellmBaseUrl || message?.values?.litellmBaseUrl
 
-			if (litellmApiKey && litellmBaseUrl) {
+			if (litellmBaseUrl) {
 				// If explicit credentials are provided in message.values (from Refresh Models button),
 				// flush the cache first to ensure we fetch fresh data with the new credentials
 				if (message?.values?.litellmApiKey || message?.values?.litellmBaseUrl) {
-					await flushModels({ provider: "litellm", apiKey: litellmApiKey, baseUrl: litellmBaseUrl }, true)
+					await flushModels(
+						{ provider: "litellm", apiKey: litellmApiKey || "", baseUrl: litellmBaseUrl },
+						true,
+					)
 				}
 
 				candidates.push({
 					key: "litellm",
-					options: { provider: "litellm", apiKey: litellmApiKey, baseUrl: litellmBaseUrl },
+					options: {
+						provider: "litellm",
+						apiKey: litellmApiKey || "",
+						baseUrl: litellmBaseUrl,
+					},
 				})
 			}
 
diff --git a/src/shared/api.ts b/src/shared/api.ts
index 66ed4f25ad..de520055cb 100644
--- a/src/shared/api.ts
+++ b/src/shared/api.ts
@@ -171,7 +171,7 @@ type CommonFetchParams = {
 const dynamicProviderExtras = {
 	openrouter: {} as {}, // eslint-disable-line @typescript-eslint/no-empty-object-type
 	"vercel-ai-gateway": {} as {}, // eslint-disable-line @typescript-eslint/no-empty-object-type
-	litellm: {} as { apiKey: string; baseUrl: string },
+	litellm: {} as { apiKey?: string; baseUrl: string },
 	requesty: {} as { apiKey?: string; baseUrl?: string },
 	unbound: {} as { apiKey?: string },
 	ollama: {} as {}, // eslint-disable-line @typescript-eslint/no-empty-object-type
diff --git a/webview-ui/src/components/settings/providers/LiteLLM.tsx b/webview-ui/src/components/settings/providers/LiteLLM.tsx
index 38ae1f3a96..ea30872ca3 100644
--- a/webview-ui/src/components/settings/providers/LiteLLM.tsx
+++ b/webview-ui/src/components/settings/providers/LiteLLM.tsx
@@ -86,7 +86,7 @@ export const LiteLLM = ({
 		const key = apiConfiguration.litellmApiKey
 		const url = apiConfiguration.litellmBaseUrl
 
-		if (!key || !url) {
+		if (!url) {
 			setRefreshStatus("error")
 			setRefreshError(t("settings:providers.refreshModels.missingConfig"))
 			return
@@ -121,9 +121,7 @@ export const LiteLLM = ({
 			<Button
 				variant="outline"
 				onClick={handleRefreshModels}
-				disabled={
-					refreshStatus === "loading" || !apiConfiguration.litellmApiKey || !apiConfiguration.litellmBaseUrl
-				}
+				disabled={refreshStatus === "loading" || !apiConfiguration.litellmBaseUrl}
 				className="w-full">
 				<div className="flex items-center gap-2">
 					{refreshStatus === "loading" ? (
diff --git a/webview-ui/src/i18n/locales/en/settings.json b/webview-ui/src/i18n/locales/en/settings.json
index 01b6cd3e91..f81fe4bb16 100644
--- a/webview-ui/src/i18n/locales/en/settings.json
+++ b/webview-ui/src/i18n/locales/en/settings.json
@@ -927,6 +927,7 @@
 	},
 	"validation": {
 		"apiKey": "You must provide a valid API key.",
+		"baseUrl": "You must provide a valid base URL.",
 		"awsRegion": "You must choose a region to use with Amazon Bedrock.",
 		"googleCloud": "You must provide a valid Google Cloud Project ID and Region.",
 		"modelId": "You must provide a valid model ID.",
diff --git a/webview-ui/src/utils/__tests__/validate.spec.ts b/webview-ui/src/utils/__tests__/validate.spec.ts
index e0b13fd49f..be071dc58c 100644
--- a/webview-ui/src/utils/__tests__/validate.spec.ts
+++ b/webview-ui/src/utils/__tests__/validate.spec.ts
@@ -158,6 +158,38 @@ describe("Model Validation Functions", () => {
 			expect(result).toBeUndefined() // Should not return model validation error
 		})
 
+		it("returns undefined for litellm with base URL but no API key", () => {
+			const config: ProviderSettings = {
+				apiProvider: "litellm",
+				litellmBaseUrl: "http://localhost:4000",
+				// No litellmApiKey - should be valid for self-hosted instances
+			}
+
+			const result = validateApiConfigurationExcludingModelErrors(config, mockRouterModels, allowAllOrganization)
+			expect(result).toBeUndefined()
+		})
+
+		it("returns error for litellm without base URL", () => {
+			const config: ProviderSettings = {
+				apiProvider: "litellm",
+				// No litellmBaseUrl
+			}
+
+			const result = validateApiConfigurationExcludingModelErrors(config, mockRouterModels, allowAllOrganization)
+			expect(result).toBe("settings:validation.baseUrl")
+		})
+
+		it("returns undefined for litellm with both base URL and API key", () => {
+			const config: ProviderSettings = {
+				apiProvider: "litellm",
+				litellmBaseUrl: "http://localhost:4000",
+				litellmApiKey: "some-key",
+			}
+
+			const result = validateApiConfigurationExcludingModelErrors(config, mockRouterModels, allowAllOrganization)
+			expect(result).toBeUndefined()
+		})
+
 		it("excludes model-specific organization errors", () => {
 			const config: ProviderSettings = {
 				apiProvider: "openrouter",
diff --git a/webview-ui/src/utils/validate.ts b/webview-ui/src/utils/validate.ts
index f506171acc..b33658fe05 100644
--- a/webview-ui/src/utils/validate.ts
+++ b/webview-ui/src/utils/validate.ts
@@ -54,8 +54,8 @@ function validateModelsAndKeysProvided(apiConfiguration: ProviderSettings): stri
 			}
 			break
 		case "litellm":
-			if (!apiConfiguration.litellmApiKey) {
-				return i18next.t("settings:validation.apiKey")
+			if (!apiConfiguration.litellmBaseUrl) {
+				return i18next.t("settings:validation.baseUrl")
 			}
 			break
 		case "anthropic":