diff --git a/ui/litellm-dashboard/src/components/templates/key_edit_view.test.tsx b/ui/litellm-dashboard/src/components/templates/key_edit_view.test.tsx
index feb777f32a9..8c3ae003e81 100644
--- a/ui/litellm-dashboard/src/components/templates/key_edit_view.test.tsx
+++ b/ui/litellm-dashboard/src/components/templates/key_edit_view.test.tsx
@@ -1502,6 +1502,43 @@ describe("KeyEditView", () => {
       expect(screen.queryByRole("option", { name: /Alpha/ })).not.toBeInTheDocument();
     });
 
+    it("should adopt the organization of a team picked in the form", async () => {
+      const onSubmitMock = vi.fn().mockResolvedValue(undefined);
+
+      renderWithProviders(
+        <KeyEditView
+          keyData={{ ...MOCK_KEY_DATA, organization_id: null, org_id: null }}
+          teams={[
+            { team_id: "team-a", team_alias: "Alpha", organization_id: "org-1" },
+            { team_id: "team-b", team_alias: "Beta", organization_id: "org-2" },
+          ]}
+          onCancel={() => {}}
+          onSubmit={onSubmitMock}
+          accessToken=""
+          userID=""
+          userRole="Admin"
+          premiumUser={false}
+        />,
+      );
+
+      await screen.findByRole("button", { name: /save changes/i });
+      expect(screen.getByLabelText("Organization")).toHaveValue("");
+
+      await userEvent.click(screen.getByLabelText("Team ID"));
+      await userEvent.click(await screen.findByRole("option", { name: /Beta/ }));
+
+      await waitFor(() => {
+        expect(screen.getByLabelText("Organization")).toHaveValue("Sales");
+      });
+
+      await userEvent.click(screen.getByRole("button", { name: /save changes/i }));
+
+      await waitFor(() => {
+        expect(onSubmitMock).toHaveBeenCalled();
+      });
+      expect(onSubmitMock.mock.calls[0][0].organization_id).toBe("org-2");
+    });
+
     it("should initialize organization from keyData", async () => {
       const keyWithOrg = {
         ...MOCK_KEY_DATA,
diff --git a/ui/litellm-dashboard/src/components/templates/key_edit_view.tsx b/ui/litellm-dashboard/src/components/templates/key_edit_view.tsx
index 3242aee49bc..1a01375fca4 100644
--- a/ui/litellm-dashboard/src/components/templates/key_edit_view.tsx
+++ b/ui/litellm-dashboard/src/components/templates/key_edit_view.tsx
@@ -312,10 +312,8 @@ export function KeyEditView({
     setField(teamId);
     const selectedTeam = teams?.find((t) => t.team_id === teamId) || null;
     if (selectedTeam?.organization_id) {
-      setSelectedOrganizationId(selectedTeam.organization_id);
       form.setValue("organization_id", selectedTeam.organization_id);
     } else if (!teamId) {
-      setSelectedOrganizationId(null);
       form.setValue("organization_id", undefined);
     }
   };