diff --git a/litellm/proxy/_types.py b/litellm/proxy/_types.py
index 41a9341c6cf..f5837abd587 100644
--- a/litellm/proxy/_types.py
+++ b/litellm/proxy/_types.py
@@ -2859,9 +2859,10 @@ class ConfigGeneralSettings(LiteLLMPydanticObjectBase):
     model_list_return_wildcard_routes: bool | None = Field(
         None,
         description=(
-            "When true, `/models` lists wildcard routes such as `openai/*` next to the models they "
-            "expand to, for every caller, without needing `return_wildcard_routes=true` per request. "
-            "A request can still pass `return_wildcard_routes=false` to leave them out."
+            "When true, `/v1/models` lists wildcard routes such as `openai/*` next to the models they "
+            "expand to, without the caller passing `return_wildcard_routes=true`. A request that passes "
+            "`return_wildcard_routes=false` still leaves them out, as do the dashboard's model pickers "
+            "and `/cursor/v1/models`."
         ),
     )
     alerting: list | None = Field(
diff --git a/litellm/proxy/response_api_endpoints/endpoints.py b/litellm/proxy/response_api_endpoints/endpoints.py
index c5d702ad65a..84221da1c79 100644
--- a/litellm/proxy/response_api_endpoints/endpoints.py
+++ b/litellm/proxy/response_api_endpoints/endpoints.py
@@ -482,7 +482,10 @@ async def cursor_model_list(
     """
     from litellm.proxy.proxy_server import model_list
 
-    return await model_list(user_api_key_dict=user_api_key_dict)
+    # Cursor offers every listed id as a model and a wildcard route such as
+    # `openai/*` is not callable, so the proxy-wide model_list_return_wildcard_routes
+    # default is pinned off here; Cursor sends no query params to opt out itself.
+    return await model_list(user_api_key_dict=user_api_key_dict, return_wildcard_routes=False)
 
 
 @router.post(
diff --git a/tests/e2e/management/test_model_list_wildcard_routes_e2e.py b/tests/e2e/management/test_model_list_wildcard_routes_e2e.py
index 5aa81821d59..9a9cea73bce 100644
--- a/tests/e2e/management/test_model_list_wildcard_routes_e2e.py
+++ b/tests/e2e/management/test_model_list_wildcard_routes_e2e.py
@@ -4,9 +4,9 @@ the models it expands to.
 
 The setting is written through /config/field/update, the route behind the admin UI's
 General Settings toggle, and deleted on teardown so the shared proxy goes back to
-leaving wildcard routes out. Every other listing the suites run passes
-return_wildcard_routes explicitly, so the window with the setting on changes none of
-them. The wildcard deployment gets a unique prefix instead of `openai/*`, which would
+leaving wildcard routes out. The other listings the suites run either pass
+return_wildcard_routes explicitly or only check that a named model is present, so the
+window with the setting on changes none of them. The wildcard deployment gets a unique prefix instead of `openai/*`, which would
 claim every `openai/...` request the other suites send.
 """
 
diff --git a/tests/test_litellm/proxy/response_api_endpoints/test_endpoints.py b/tests/test_litellm/proxy/response_api_endpoints/test_endpoints.py
index 656dc33e88c..cd470c8879f 100644
--- a/tests/test_litellm/proxy/response_api_endpoints/test_endpoints.py
+++ b/tests/test_litellm/proxy/response_api_endpoints/test_endpoints.py
@@ -1351,6 +1351,8 @@ def test_cursor_models_route_delegates_to_model_list():
                 assert response.status_code == 200, f"{path}: {response.text}"
                 assert response.json() == model_payload
             assert mock_model_list.call_count == 2
+            # Cursor lists every id it gets, so the proxy-wide wildcard default must not reach it
+            assert all(call.kwargs["return_wildcard_routes"] is False for call in mock_model_list.call_args_list)
     finally:
         app.dependency_overrides.pop(user_api_key_auth, None)
 
diff --git a/ui/litellm-dashboard/src/lib/http/schema.d.ts b/ui/litellm-dashboard/src/lib/http/schema.d.ts
index d0becba1ba1..4f82a475fb8 100644
--- a/ui/litellm-dashboard/src/lib/http/schema.d.ts
+++ b/ui/litellm-dashboard/src/lib/http/schema.d.ts
@@ -28389,7 +28389,7 @@ export interface components {
             model_list_healthy_only?: boolean | null;
             /**
              * Model List Return Wildcard Routes
-             * @description When true, `/models` lists wildcard routes such as `openai/*` next to the models they expand to, for every caller, without needing `return_wildcard_routes=true` per request. A request can still pass `return_wildcard_routes=false` to leave them out.
+             * @description When true, `/v1/models` lists wildcard routes such as `openai/*` next to the models they expand to, without the caller passing `return_wildcard_routes=true`. A request that passes `return_wildcard_routes=false` still leaves them out, as do the dashboard's model pickers and `/cursor/v1/models`.
              */
             model_list_return_wildcard_routes?: boolean | null;
             /**