diff --git a/litellm/proxy/_experimental/mcp_server/mcp_server_manager.py b/litellm/proxy/_experimental/mcp_server/mcp_server_manager.py
index ad743416550..fe95360352e 100644
--- a/litellm/proxy/_experimental/mcp_server/mcp_server_manager.py
+++ b/litellm/proxy/_experimental/mcp_server/mcp_server_manager.py
@@ -872,10 +872,15 @@ class MCPServerManager:
             if toolset_id is None:
                 keys_to_remove = [k for k in cache_dict if k.startswith("toolset_")]
             else:
+                # Evict permission-cache entries that reference this toolset ID.
+                # Also evict ALL name-cache entries (toolset_name:*): we can't map
+                # toolset_id → toolset_name without a DB call, and the name may have
+                # changed in an update anyway.
                 keys_to_remove = [
                     k
                     for k in cache_dict
-                    if k.startswith("toolset_") and toolset_id in k
+                    if (k.startswith("toolset_perms:") and toolset_id in k)
+                    or k.startswith("toolset_name:")
                 ]
             for k in keys_to_remove:
                 cache_dict.pop(k, None)
diff --git a/litellm/proxy/_experimental/mcp_server/toolset_db.py b/litellm/proxy/_experimental/mcp_server/toolset_db.py
index 2d22b52e331..72cb5eb98e4 100644
--- a/litellm/proxy/_experimental/mcp_server/toolset_db.py
+++ b/litellm/proxy/_experimental/mcp_server/toolset_db.py
@@ -59,7 +59,7 @@ async def list_mcp_toolsets(
         rows = await prisma_client.db.litellm_mcptoolsettable.find_many(where=where)
         return [_toolset_from_row(r) for r in rows]
     except Exception as e:
-        verbose_proxy_logger.debug(
+        verbose_proxy_logger.warning(
             "litellm.proxy._experimental.mcp_server.toolset_db::list_mcp_toolsets - {}".format(
                 str(e)
             )
diff --git a/litellm/proxy/management_endpoints/mcp_management_endpoints.py b/litellm/proxy/management_endpoints/mcp_management_endpoints.py
index 1b59f573383..0ab35604ee1 100644
--- a/litellm/proxy/management_endpoints/mcp_management_endpoints.py
+++ b/litellm/proxy/management_endpoints/mcp_management_endpoints.py
@@ -2164,7 +2164,19 @@ if MCP_AVAILABLE:
         touched_by = (
             litellm_changed_by or user_api_key_dict.user_id or LITELLM_PROXY_ADMIN_NAME
         )
-        result = await update_mcp_toolset(prisma_client, payload, touched_by)
+        try:
+            result = await update_mcp_toolset(prisma_client, payload, touched_by)
+        except UniqueViolationError:
+            raise HTTPException(
+                status_code=status.HTTP_409_CONFLICT,
+                detail={
+                    "error": (
+                        f"A toolset named '{payload.toolset_name}' already exists."
+                        if payload.toolset_name
+                        else "A toolset with that name already exists."
+                    )
+                },
+            )
         if result is None:
             raise HTTPException(
                 status_code=status.HTTP_404_NOT_FOUND,