diff --git a/litellm/proxy/management_endpoints/common_utils.py b/litellm/proxy/management_endpoints/common_utils.py
index 877130c2066..cf4623839b5 100644
--- a/litellm/proxy/management_endpoints/common_utils.py
+++ b/litellm/proxy/management_endpoints/common_utils.py
@@ -1,4 +1,5 @@
 import math
+from collections.abc import Sequence
 from typing import TYPE_CHECKING, Any, Dict, Optional, Union
 
 from fastapi import HTTPException, status
@@ -76,27 +77,52 @@ def require_caller_user_id_for_non_admin(
     return user_api_key_dict.user_id
 
 
+def _passthrough_routes_differ(requested: object, existing: Sequence[str] | None) -> bool:
+    """True when `requested` asks for a different route set than what is stored.
+
+    Anything that isn't a list/tuple of route strings counts as a change, so
+    malformed payloads fall through to the 403 instead of silently passing the
+    gate (or blowing up on an unhashable element).
+    """
+    if requested is None:
+        return False
+    if not isinstance(requested, (list, tuple)):
+        return True
+    if any(not isinstance(route, str) for route in requested):
+        return True
+    return frozenset(requested) != frozenset(existing or ())
+
+
 def _check_passthrough_routes_caller_permission(
     data: BaseModel,
     user_api_key_dict: UserAPIKeyAuth,
     *,
     entity: str = "key",
+    existing_routes: Sequence[str] | None = None,
 ) -> None:
     """
-    Only proxy admins may set `allowed_passthrough_routes` (top-level or under
-    `metadata`) — it short-circuits the role-based route gate, so keys and teams
-    must be gated identically.
+    Only proxy admins may CHANGE `allowed_passthrough_routes` (top-level or
+    under `metadata`) — it short-circuits the role-based route gate, so keys and
+    teams must be gated identically.
+
+    Re-sending the stored routes unchanged is a no-op rather than a 403: an
+    update writes `metadata` wholesale, so clients have to echo the stored value
+    back or an unrelated edit would wipe it. Without `existing_routes` the gate
+    stays strict (any non-empty value is a change), which is what create paths
+    want.
     """
     # view-only admins excluded by design; blocked upstream from writes anyway
     if user_api_key_dict.user_role == LitellmUserRoles.PROXY_ADMIN.value:
         return
-    if getattr(data, "allowed_passthrough_routes", None):
+    if _passthrough_routes_differ(getattr(data, "allowed_passthrough_routes", None), existing_routes):
         raise HTTPException(
             status_code=403,
             detail={"error": f"Only proxy admins can set `allowed_passthrough_routes` on a {entity}."},
         )
     metadata = getattr(data, "metadata", None)
-    if isinstance(metadata, dict) and metadata.get("allowed_passthrough_routes"):
+    if isinstance(metadata, dict) and _passthrough_routes_differ(
+        metadata.get("allowed_passthrough_routes"), existing_routes
+    ):
         raise HTTPException(
             status_code=403,
             detail={"error": f"Only proxy admins can set `metadata.allowed_passthrough_routes` on a {entity}."},
diff --git a/litellm/proxy/management_endpoints/team_endpoints.py b/litellm/proxy/management_endpoints/team_endpoints.py
index 1efd0a747df..a342f5863d4 100644
--- a/litellm/proxy/management_endpoints/team_endpoints.py
+++ b/litellm/proxy/management_endpoints/team_endpoints.py
@@ -15,6 +15,7 @@ import math
 import traceback
 from collections.abc import Sequence
 from datetime import datetime, timezone
+from enum import Enum
 from typing import (
     Annotated,
     Dict,
@@ -83,6 +84,7 @@ from litellm.proxy._types import (
 )
 from litellm.proxy.auth.auth_checks import (
     _cache_team_object,
+    _model_matches_any_wildcard_pattern_in_list,
     allowed_route_check_inside_route,
     can_org_access_model,
     get_org_object,
@@ -315,10 +317,68 @@ async def _refresh_cached_team(
     )
 
 
+class TeamAccessGrant(str, Enum):
+    """Which authority let a caller through `_verify_team_access`.
+
+    Callers that gate finer-grained actions (budget ceiling, model list) need to
+    know this: a team admin is bounded by what a proxy admin already granted the
+    team, while proxy/org admins hold the grant itself.
+    """
+
+    PROXY_ADMIN = "proxy_admin"
+    ORG_ADMIN = "org_admin"
+    TEAM_ADMIN = "team_admin"
+
+
+async def _is_org_admin_for_team_or_false(
+    team_obj: LiteLLM_TeamTable,
+    user_api_key_dict: UserAPIKeyAuth,
+) -> bool:
+    """`_is_user_org_admin_for_team`, but a failed lookup means "no".
+
+    The underlying call raises when the caller's user row can't be read. Every
+    caller of this uses the answer to hand out authority, so degrading to "not
+    an org admin" is fail-closed: it can only withhold authority, never grant
+    it, and it keeps a lookup failure from 500-ing a request the caller is
+    otherwise allowed to make.
+    """
+    if not team_obj.organization_id:
+        return False
+    try:
+        return await _is_user_org_admin_for_team(user_api_key_dict=user_api_key_dict, team_obj=team_obj)
+    except Exception as e:
+        verbose_proxy_logger.warning(
+            "Could not resolve org-admin status for user=%s on team=%s, treating as non-org-admin. Error: %s",
+            user_api_key_dict.user_id,
+            team_obj.team_id,
+            e,
+        )
+        return False
+
+
+async def _escalate_team_admin_grant_for_org_admin(
+    team_access: TeamAccessGrant,
+    team_obj: LiteLLM_TeamTable,
+    user_api_key_dict: UserAPIKeyAuth,
+) -> TeamAccessGrant:
+    """Upgrade a TEAM_ADMIN grant to ORG_ADMIN when the caller is both.
+
+    `_verify_team_access` answers the cheap team-membership question first and
+    stops there, so a team's own org admin (usually the team's creator) comes
+    back as TEAM_ADMIN. Callers that gate on the grant have to resolve the
+    stronger authority before refusing them.
+    """
+    if team_access is not TeamAccessGrant.TEAM_ADMIN:
+        return team_access
+    if await _is_org_admin_for_team_or_false(team_obj=team_obj, user_api_key_dict=user_api_key_dict):
+        return TeamAccessGrant.ORG_ADMIN
+    return team_access
+
+
 async def _verify_team_access(
     team_obj: LiteLLM_TeamTable,
     user_api_key_dict: UserAPIKeyAuth,
-) -> None:
+) -> TeamAccessGrant:
     """
     Verify the caller is authorized to manage the given team.
 
@@ -327,16 +387,17 @@ async def _verify_team_access(
     - Caller is an org admin for the team's organization, OR
     - Caller is a team admin of this team
 
-    Raises HTTPException(403) otherwise.
+    Returns the authority that granted access. Raises HTTPException(403)
+    otherwise.
     """
     if user_api_key_dict.user_role == LitellmUserRoles.PROXY_ADMIN:
-        return
+        return TeamAccessGrant.PROXY_ADMIN
 
     if _is_user_team_admin(user_api_key_dict=user_api_key_dict, team_obj=team_obj):
-        return
+        return TeamAccessGrant.TEAM_ADMIN
 
-    if await _is_user_org_admin_for_team(user_api_key_dict=user_api_key_dict, team_obj=team_obj):
-        return
+    if await _is_org_admin_for_team_or_false(team_obj=team_obj, user_api_key_dict=user_api_key_dict):
+        return TeamAccessGrant.ORG_ADMIN
 
     raise HTTPException(
         status_code=status.HTTP_403_FORBIDDEN,
@@ -998,19 +1059,19 @@ async def _check_user_team_limits(
 
 def _check_team_budget_update_authority(
     data: UpdateTeamRequest,
-    user_api_key_dict: UserAPIKeyAuth,
+    team_access: TeamAccessGrant,
     existing_team_max_budget: Optional[float],
 ) -> None:
     """
-    Restrict who can grow a standalone team's spend ceiling on /team/update.
+    Restrict who can grow a team's spend ceiling on /team/update.
 
-    A team admin (already authorized via _verify_team_access) may keep or lower
-    the team budget, but only a proxy admin may grow it - by raising max_budget
+    A team admin may keep or lower the team budget, but only a proxy admin (or
+    the org admin who owns the team's org) may grow it - by raising max_budget
     above the team's current value or by removing the cap (setting it to None).
     Setting a finite budget on a team that has no cap is a restriction and is
-    allowed. Org-scoped teams are governed by _check_org_team_limits().
+    allowed. Org-scoped teams are additionally capped by _check_org_team_limits().
     """
-    if user_api_key_dict.user_role == LitellmUserRoles.PROXY_ADMIN:
+    if team_access is not TeamAccessGrant.TEAM_ADMIN:
         return
     if existing_team_max_budget is None:
         return
@@ -1033,6 +1094,65 @@ def _check_team_budget_update_authority(
         )
 
 
+def _model_list_grants_every_model(models: Sequence[str]) -> bool:
+    """Whether a team.models value reaches every deployment on the proxy.
+
+    Mirrors the auth path (`_can_object_call_model`): an empty list, a bare
+    "*", and the all-proxy-models sentinel are all unrestricted.
+    """
+    return len(models) == 0 or "*" in models or SpecialModelNames.all_proxy_models.value in models
+
+
+def _check_team_models_update_authority(
+    data: UpdateTeamRequest,
+    team_access: TeamAccessGrant,
+    existing_team_models: Sequence[str],
+) -> None:
+    """
+    Restrict who can widen a team's allowed-model list on /team/update.
+
+    A team admin may drop models the team already has, but only a proxy admin
+    (or the org admin who owns the team's org) can grant a team access to a
+    model it cannot already reach. Reachability follows the auth path, so a team
+    holding "openai/*" may be narrowed to "openai/gpt-4o", and a team that
+    already reaches every model can be narrowed to anything.
+    """
+    if team_access is not TeamAccessGrant.TEAM_ADMIN:
+        return
+    if data.models is None:
+        return
+    if _model_list_grants_every_model(existing_team_models):
+        return
+
+    if _model_list_grants_every_model(data.models):
+        raise HTTPException(
+            status_code=403,
+            detail={
+                "error": (
+                    "Only a proxy admin can grant a team access to every proxy model. Team's current "
+                    f"models={sorted(set(existing_team_models))}."
+                )
+            },
+        )
+
+    added_models = tuple(
+        model
+        for model in data.models
+        if model not in existing_team_models
+        and not _model_matches_any_wildcard_pattern_in_list(model=model, allowed_model_list=list(existing_team_models))
+    )
+    if added_models:
+        raise HTTPException(
+            status_code=403,
+            detail={
+                "error": (
+                    f"Only a proxy admin can add models to a team. Models the team cannot already reach: "
+                    f"{sorted(set(added_models))}. Team's current models={sorted(set(existing_team_models))}."
+                )
+            },
+        )
+
+
 def _should_auto_add_team_creator(
     user_api_key_dict: UserAPIKeyAuth,
     general_settings: Mapping[str, object],
@@ -1851,12 +1971,32 @@ async def update_team(
             )
 
         # Verify caller has access to manage this team
-        await _verify_team_access(
-            team_obj=LiteLLM_TeamTable.model_validate(existing_team_row.model_dump()),
+        existing_team_obj = LiteLLM_TeamTable.model_validate(existing_team_row.model_dump())
+        team_access = await _escalate_team_admin_grant_for_org_admin(
+            team_access=await _verify_team_access(
+                team_obj=existing_team_obj,
+                user_api_key_dict=user_api_key_dict,
+            ),
+            team_obj=existing_team_obj,
             user_api_key_dict=user_api_key_dict,
         )
 
-        _check_passthrough_routes_caller_permission(data, user_api_key_dict, entity="team")
+        existing_metadata = existing_team_row.metadata if isinstance(existing_team_row.metadata, dict) else {}
+        stored_passthrough_routes = existing_metadata.get("allowed_passthrough_routes")
+        _check_passthrough_routes_caller_permission(
+            data,
+            user_api_key_dict,
+            entity="team",
+            existing_routes=(
+                stored_passthrough_routes if isinstance(stored_passthrough_routes, (list, tuple)) else None
+            ),
+        )
+
+        _check_team_models_update_authority(
+            data=data,
+            team_access=team_access,
+            existing_team_models=existing_team_row.models or [],
+        )
 
         if data.soft_budget is not None:
             max_budget_to_check = data.max_budget if data.max_budget is not None else existing_team_row.max_budget
@@ -1945,14 +2085,11 @@ async def update_team(
                     prisma_client=prisma_client,
                 )
 
-        # Only a proxy admin may grow a standalone team's spend ceiling.
-        # Org-scoped teams are validated by _check_org_team_limits() above.
-        if org_id_to_check is None:
-            _check_team_budget_update_authority(
-                data=data,
-                user_api_key_dict=user_api_key_dict,
-                existing_team_max_budget=existing_team_row.max_budget,
-            )
+        _check_team_budget_update_authority(
+            data=data,
+            team_access=team_access,
+            existing_team_max_budget=existing_team_row.max_budget,
+        )
 
         updated_kv = data.json(exclude_unset=True)
 
diff --git a/tests/test_litellm/proxy/management_endpoints/test_common_utils.py b/tests/test_litellm/proxy/management_endpoints/test_common_utils.py
index 81840745d0e..5ec6c1319d6 100644
--- a/tests/test_litellm/proxy/management_endpoints/test_common_utils.py
+++ b/tests/test_litellm/proxy/management_endpoints/test_common_utils.py
@@ -715,6 +715,127 @@ class TestCheckPassthroughRoutesCallerPermission:
             is None
         )
 
+    def _route_data_model(self):
+        from pydantic import BaseModel
+
+        class _RouteData(BaseModel):
+            allowed_passthrough_routes: list | None = None
+            metadata: dict | None = None
+
+        return _RouteData
+
+    def test_unchanged_echo_of_stored_routes_is_allowed(self):
+        """An update rewrites metadata wholesale, so a non-admin has to echo the
+        stored routes back or the save would wipe them. Echoing changes nothing
+        and must not 403."""
+        from litellm.proxy.management_endpoints.common_utils import (
+            _check_passthrough_routes_caller_permission,
+        )
+
+        data = self._route_data_model()(
+            metadata={"allowed_passthrough_routes": ["/v1/bar", "/v1/foo"]}
+        )
+
+        assert (
+            _check_passthrough_routes_caller_permission(
+                data,
+                self._non_admin(),
+                entity="team",
+                existing_routes=["/v1/foo", "/v1/bar"],
+            )
+            is None
+        )
+
+    def test_adding_a_route_to_the_stored_set_is_rejected(self):
+        from fastapi import HTTPException
+
+        from litellm.proxy.management_endpoints.common_utils import (
+            _check_passthrough_routes_caller_permission,
+        )
+
+        data = self._route_data_model()(
+            metadata={"allowed_passthrough_routes": ["/v1/foo", "/v1/baz"]}
+        )
+
+        with pytest.raises(HTTPException) as exc_info:
+            _check_passthrough_routes_caller_permission(
+                data,
+                self._non_admin(),
+                entity="team",
+                existing_routes=["/v1/foo"],
+            )
+
+        assert exc_info.value.status_code == 403
+        assert exc_info.value.detail == {
+            "error": "Only proxy admins can set `metadata.allowed_passthrough_routes` on a team."
+        }
+
+    def test_clearing_stored_routes_is_rejected(self):
+        """Wiping an admin-only field is still changing it."""
+        from fastapi import HTTPException
+
+        from litellm.proxy.management_endpoints.common_utils import (
+            _check_passthrough_routes_caller_permission,
+        )
+
+        data = self._route_data_model()(metadata={"allowed_passthrough_routes": []})
+
+        with pytest.raises(HTTPException) as exc_info:
+            _check_passthrough_routes_caller_permission(
+                data,
+                self._non_admin(),
+                entity="team",
+                existing_routes=["/v1/foo"],
+            )
+
+        assert exc_info.value.status_code == 403
+
+    def test_non_list_payload_is_rejected(self):
+        from fastapi import HTTPException
+
+        from litellm.proxy.management_endpoints.common_utils import (
+            _check_passthrough_routes_caller_permission,
+        )
+
+        data = self._route_data_model()(
+            metadata={"allowed_passthrough_routes": "/v1/foo"}
+        )
+
+        with pytest.raises(HTTPException) as exc_info:
+            _check_passthrough_routes_caller_permission(
+                data,
+                self._non_admin(),
+                entity="team",
+                existing_routes=["/v1/foo"],
+            )
+
+        assert exc_info.value.status_code == 403
+
+    def test_top_level_echo_is_allowed_while_a_change_is_rejected(self):
+        from fastapi import HTTPException
+
+        from litellm.proxy.management_endpoints.common_utils import (
+            _check_passthrough_routes_caller_permission,
+        )
+
+        model = self._route_data_model()
+        assert (
+            _check_passthrough_routes_caller_permission(
+                model(allowed_passthrough_routes=["/v1/foo"]),
+                self._non_admin(),
+                existing_routes=["/v1/foo"],
+            )
+            is None
+        )
+
+        with pytest.raises(HTTPException) as exc_info:
+            _check_passthrough_routes_caller_permission(
+                model(allowed_passthrough_routes=["/v1/foo", "/v1/qux"]),
+                self._non_admin(),
+                existing_routes=["/v1/foo"],
+            )
+        assert exc_info.value.status_code == 403
+
 
 class TestIsUserOrgAdminForTeam:
     """The caller must be looked up with its exact identity; a nulled or omitted
diff --git a/tests/test_litellm/proxy/management_endpoints/test_team_endpoints.py b/tests/test_litellm/proxy/management_endpoints/test_team_endpoints.py
index 0de2c1ac71d..97e4d01705d 100644
--- a/tests/test_litellm/proxy/management_endpoints/test_team_endpoints.py
+++ b/tests/test_litellm/proxy/management_endpoints/test_team_endpoints.py
@@ -5410,6 +5410,10 @@ async def test_update_team_org_scoped_budget_exceeds_org_limit():
             "litellm.proxy.management_endpoints.team_endpoints.get_org_object",
             new=AsyncMock(return_value=mock_org),
         ) as mock_get_org,
+        patch(
+            "litellm.proxy.management_endpoints.team_endpoints._is_user_org_admin_for_team",
+            new=AsyncMock(return_value=True),
+        ),
     ):
         # Mock existing org-scoped team
         mock_existing_team = MagicMock()
@@ -5450,13 +5454,13 @@ async def test_update_team_standalone_models_not_gated_by_user_limit():
     Test that /team/update for a standalone team does NOT gate the team's models
     by the caller's personal allowed models.
 
-    A team admin authorized via _verify_team_access() may set the team's models
-    independently of their own personal model list on update.
+    A team admin authorized via _verify_team_access() may narrow the team's
+    models independently of their own personal model list on update.
 
     Scenario:
     - Team admin has personal models=['gpt-3.5-turbo']
-    - Standalone team exists (no organization_id)
-    - Admin updates team models to ['gpt-4'] (not in their personal list)
+    - Standalone team exists (no organization_id) holding both models
+    - Admin narrows the team to ['gpt-4'] (not in their personal list)
     - Expected: Should succeed (personal models are irrelevant on /team/update)
     """
     from fastapi import Request
@@ -5489,12 +5493,12 @@ async def test_update_team_standalone_models_not_gated_by_user_limit():
         mock_existing_team = MagicMock()
         mock_existing_team.team_id = "standalone-team-models-123"
         mock_existing_team.organization_id = None  # Standalone team
-        mock_existing_team.models = ["gpt-3.5-turbo"]
+        mock_existing_team.models = ["gpt-3.5-turbo", "gpt-4"]
         mock_existing_team.model_id = None
         mock_existing_team.model_dump.return_value = {
             "team_id": "standalone-team-models-123",
             "organization_id": None,
-            "models": ["gpt-3.5-turbo"],
+            "models": ["gpt-3.5-turbo", "gpt-4"],
             "members_with_roles": [
                 {"user_id": "non-admin-update-models-test", "role": "admin"}
             ],
@@ -5586,6 +5590,10 @@ async def test_update_team_org_scoped_budget_bypasses_user_limit():
             "litellm.proxy.management_endpoints.team_endpoints.get_org_object",
             new=AsyncMock(return_value=mock_org),
         ) as mock_get_org,
+        patch(
+            "litellm.proxy.management_endpoints.team_endpoints._is_user_org_admin_for_team",
+            new=AsyncMock(return_value=True),
+        ),
     ):
         # Mock existing org-scoped team
         mock_existing_team = MagicMock()
@@ -5696,6 +5704,10 @@ async def test_update_team_org_scoped_models_bypasses_user_limit():
             "litellm.proxy.management_endpoints.team_endpoints.get_org_object",
             new=AsyncMock(return_value=mock_org),
         ) as mock_get_org,
+        patch(
+            "litellm.proxy.management_endpoints.team_endpoints._is_user_org_admin_for_team",
+            new=AsyncMock(return_value=True),
+        ),
     ):
         # Mock existing org-scoped team
         mock_existing_team = MagicMock()
@@ -5799,6 +5811,10 @@ async def test_update_team_org_scoped_models_not_in_org_models():
             "litellm.proxy.management_endpoints.team_endpoints.get_org_object",
             new=AsyncMock(return_value=mock_org),
         ) as mock_get_org,
+        patch(
+            "litellm.proxy.management_endpoints.team_endpoints._is_user_org_admin_for_team",
+            new=AsyncMock(return_value=True),
+        ),
     ):
         # Mock existing org-scoped team
         mock_existing_team = MagicMock()
@@ -5887,6 +5903,10 @@ async def test_update_team_org_scoped_models_with_all_proxy_models():
             "litellm.proxy.management_endpoints.team_endpoints.get_org_object",
             new=AsyncMock(return_value=mock_org),
         ) as mock_get_org,
+        patch(
+            "litellm.proxy.management_endpoints.team_endpoints._is_user_org_admin_for_team",
+            new=AsyncMock(return_value=True),
+        ),
     ):
         # Mock existing org-scoped team
         mock_existing_team = MagicMock()
@@ -10617,3 +10637,356 @@ def test_validate_member_user_id_provisioning_caps_the_ids_it_echoes_back():
     assert f"u{_MAX_REPORTED_UNKNOWN_USER_IDS}" not in detail
     assert f"and {500 - _MAX_REPORTED_UNKNOWN_USER_IDS} more" in detail
     assert len(detail) < 1000
+
+
+async def _run_update_team(
+    *,
+    update_request,
+    caller,
+    existing_team,
+    org=None,
+    caller_is_org_admin=False,
+):
+    """Drive /team/update against a mocked team row and return the handler result.
+
+    `existing_team` is the stored row as a dict; every field the handler reads
+    off the row has to be present, since a MagicMock attribute would otherwise
+    stand in as a truthy sentinel.
+    """
+    from fastapi import Request
+
+    from litellm.proxy.management_endpoints.team_endpoints import update_team
+
+    mock_existing_team = MagicMock()
+    for field, value in existing_team.items():
+        setattr(mock_existing_team, field, value)
+    mock_existing_team.model_dump.return_value = dict(existing_team)
+
+    mock_updated_team = MagicMock()
+    mock_updated_team.team_id = existing_team["team_id"]
+    mock_updated_team.litellm_model_table = None
+    mock_updated_team.model_dump.return_value = dict(existing_team)
+
+    with (
+        patch("litellm.proxy.proxy_server.prisma_client") as mock_prisma,
+        patch("litellm.proxy.proxy_server.user_api_key_cache") as mock_cache,
+        patch("litellm.proxy.proxy_server.litellm_proxy_admin_name", "admin"),
+        patch("litellm.proxy.proxy_server.create_audit_log_for_update", new=AsyncMock()),
+        patch(
+            "litellm.proxy.management_endpoints.team_endpoints.get_org_object",
+            new=AsyncMock(return_value=org),
+        ),
+        patch(
+            "litellm.proxy.management_endpoints.team_endpoints._is_user_org_admin_for_team",
+            new=AsyncMock(return_value=caller_is_org_admin),
+        ),
+    ):
+        mock_prisma.db.litellm_teamtable.find_unique = AsyncMock(return_value=mock_existing_team)
+        mock_prisma.db.litellm_teamtable.update = AsyncMock(return_value=mock_updated_team)
+        mock_prisma.jsonify_team_object = lambda db_data: db_data
+        mock_cache.async_get_cache = AsyncMock(return_value=None)
+        mock_cache.async_set_cache = AsyncMock()
+
+        return await update_team(
+            data=update_request,
+            http_request=MagicMock(spec=Request),
+            user_api_key_dict=caller,
+        )
+
+
+def _team_admin_caller(user_id="team-admin-doc-alignment"):
+    return UserAPIKeyAuth(user_role=LitellmUserRoles.INTERNAL_USER, user_id=user_id, models=[])
+
+
+def _stored_team(**overrides):
+    stored = {
+        "team_id": "doc-alignment-team",
+        "organization_id": None,
+        "max_budget": 30.0,
+        "models": ["gpt-4"],
+        "model_id": None,
+        "metadata": {},
+        "object_permission_id": None,
+        "members_with_roles": [{"user_id": "team-admin-doc-alignment", "role": "admin"}],
+    }
+    stored.update(overrides)
+    return stored
+
+
+@pytest.mark.asyncio
+async def test_update_team_model_add_blocked_for_team_admin():
+    """The docs say a team admin cannot add global proxy models to their team;
+    /team/update has to say the same."""
+    from litellm.proxy._types import ProxyException, UpdateTeamRequest
+
+    with pytest.raises(ProxyException) as exc_info:
+        await _run_update_team(
+            update_request=UpdateTeamRequest(team_id="doc-alignment-team", models=["gpt-4", "claude-opus-4-5"]),
+            caller=_team_admin_caller(),
+            existing_team=_stored_team(),
+        )
+
+    assert exc_info.value.code == "403"
+    assert "claude-opus-4-5" in str(exc_info.value.message)
+    assert "proxy admin" in str(exc_info.value.message).lower()
+
+
+@pytest.mark.asyncio
+async def test_update_team_model_add_allowed_for_org_admin():
+    """An org admin holds the grant, so widening their own team's models stays
+    allowed (the org's model list is the ceiling, checked separately)."""
+    from litellm.proxy._types import (
+        LiteLLM_BudgetTable,
+        LiteLLM_OrganizationTable,
+        UpdateTeamRequest,
+    )
+
+    mock_org = MagicMock(spec=LiteLLM_OrganizationTable)
+    mock_org.organization_id = "org-doc-alignment"
+    mock_org.models = ["gpt-4", "claude-opus-4-5"]
+    mock_org.litellm_budget_table = MagicMock(spec=LiteLLM_BudgetTable)
+    mock_org.litellm_budget_table.max_budget = None
+    mock_org.litellm_budget_table.tpm_limit = None
+    mock_org.litellm_budget_table.rpm_limit = None
+
+    result = await _run_update_team(
+        update_request=UpdateTeamRequest(team_id="doc-alignment-team", models=["gpt-4", "claude-opus-4-5"]),
+        caller=_team_admin_caller(),
+        existing_team=_stored_team(organization_id="org-doc-alignment"),
+        org=mock_org,
+        caller_is_org_admin=True,
+    )
+
+    assert result is not None
+
+
+@pytest.mark.asyncio
+async def test_update_team_model_add_allowed_when_team_already_holds_every_model():
+    """A team holding the all-proxy-models sentinel already reaches everything,
+    so naming a specific model narrows rather than widens."""
+    from litellm.proxy._types import UpdateTeamRequest
+
+    result = await _run_update_team(
+        update_request=UpdateTeamRequest(team_id="doc-alignment-team", models=["claude-opus-4-5"]),
+        caller=_team_admin_caller(),
+        existing_team=_stored_team(models=["all-proxy-models"]),
+    )
+
+    assert result is not None
+
+
+@pytest.mark.asyncio
+async def test_update_team_org_scoped_budget_raise_blocked_for_team_admin():
+    """Keep-or-lower applies to a team admin whether or not the team sits in an
+    org; staying under the org ceiling is a separate question."""
+    from litellm.proxy._types import (
+        LiteLLM_BudgetTable,
+        LiteLLM_OrganizationTable,
+        ProxyException,
+        UpdateTeamRequest,
+    )
+
+    mock_org = MagicMock(spec=LiteLLM_OrganizationTable)
+    mock_org.organization_id = "org-doc-alignment"
+    mock_org.models = ["gpt-4"]
+    mock_org.litellm_budget_table = MagicMock(spec=LiteLLM_BudgetTable)
+    mock_org.litellm_budget_table.max_budget = 1000.0
+    mock_org.litellm_budget_table.tpm_limit = None
+    mock_org.litellm_budget_table.rpm_limit = None
+
+    with pytest.raises(ProxyException) as exc_info:
+        await _run_update_team(
+            update_request=UpdateTeamRequest(team_id="doc-alignment-team", max_budget=900.0),
+            caller=_team_admin_caller(),
+            existing_team=_stored_team(organization_id="org-doc-alignment"),
+            org=mock_org,
+        )
+
+    assert exc_info.value.code == "403"
+    assert "raise" in str(exc_info.value.message).lower()
+
+
+@pytest.mark.asyncio
+async def test_update_team_org_scoped_budget_removal_blocked_for_team_admin():
+    """Dropping the cap is the strongest raise there is."""
+    from litellm.proxy._types import (
+        LiteLLM_BudgetTable,
+        LiteLLM_OrganizationTable,
+        ProxyException,
+        UpdateTeamRequest,
+    )
+
+    mock_org = MagicMock(spec=LiteLLM_OrganizationTable)
+    mock_org.organization_id = "org-doc-alignment"
+    mock_org.models = ["gpt-4"]
+    mock_org.litellm_budget_table = MagicMock(spec=LiteLLM_BudgetTable)
+    mock_org.litellm_budget_table.max_budget = 1000.0
+    mock_org.litellm_budget_table.tpm_limit = None
+    mock_org.litellm_budget_table.rpm_limit = None
+
+    request = UpdateTeamRequest(team_id="doc-alignment-team", max_budget=None)
+    assert "max_budget" in request.model_fields_set
+
+    with pytest.raises(ProxyException) as exc_info:
+        await _run_update_team(
+            update_request=request,
+            caller=_team_admin_caller(),
+            existing_team=_stored_team(organization_id="org-doc-alignment"),
+            org=mock_org,
+        )
+
+    assert exc_info.value.code == "403"
+    assert "remove" in str(exc_info.value.message).lower()
+
+
+@pytest.mark.asyncio
+async def test_update_team_org_scoped_budget_lower_allowed_for_team_admin():
+    from litellm.proxy._types import (
+        LiteLLM_BudgetTable,
+        LiteLLM_OrganizationTable,
+        UpdateTeamRequest,
+    )
+
+    mock_org = MagicMock(spec=LiteLLM_OrganizationTable)
+    mock_org.organization_id = "org-doc-alignment"
+    mock_org.models = ["gpt-4"]
+    mock_org.litellm_budget_table = MagicMock(spec=LiteLLM_BudgetTable)
+    mock_org.litellm_budget_table.max_budget = 1000.0
+    mock_org.litellm_budget_table.tpm_limit = None
+    mock_org.litellm_budget_table.rpm_limit = None
+
+    result = await _run_update_team(
+        update_request=UpdateTeamRequest(team_id="doc-alignment-team", max_budget=10.0),
+        caller=_team_admin_caller(),
+        existing_team=_stored_team(organization_id="org-doc-alignment"),
+        org=mock_org,
+    )
+
+    assert result is not None
+
+
+@pytest.mark.asyncio
+async def test_update_team_unchanged_passthrough_routes_do_not_block_a_team_admin_edit():
+    """The dashboard echoes the stored routes back so an unrelated edit doesn't
+    wipe them; that echo must not read as an attempt to set them."""
+    from litellm.proxy._types import UpdateTeamRequest
+
+    result = await _run_update_team(
+        update_request=UpdateTeamRequest(
+            team_id="doc-alignment-team",
+            team_alias="renamed-by-team-admin",
+            metadata={"allowed_passthrough_routes": ["/v1/foo"]},
+        ),
+        caller=_team_admin_caller(),
+        existing_team=_stored_team(metadata={"allowed_passthrough_routes": ["/v1/foo"]}),
+    )
+
+    assert result is not None
+
+
+@pytest.mark.asyncio
+async def test_update_team_changed_passthrough_routes_still_blocked_for_team_admin():
+    from litellm.proxy._types import ProxyException, UpdateTeamRequest
+
+    with pytest.raises(ProxyException) as exc_info:
+        await _run_update_team(
+            update_request=UpdateTeamRequest(
+                team_id="doc-alignment-team",
+                metadata={"allowed_passthrough_routes": ["/v1/foo", "/v1/escalate"]},
+            ),
+            caller=_team_admin_caller(),
+            existing_team=_stored_team(metadata={"allowed_passthrough_routes": ["/v1/foo"]}),
+        )
+
+    assert exc_info.value.code == "403"
+    assert "allowed_passthrough_routes" in str(exc_info.value.message)
+
+
+@pytest.mark.asyncio
+async def test_update_team_model_clear_blocked_for_team_admin():
+    """An empty models list is the unrestricted sentinel at auth time, so
+    clearing the list is the widest possible grant, not a narrowing."""
+    from litellm.proxy._types import ProxyException, UpdateTeamRequest
+
+    with pytest.raises(ProxyException) as exc_info:
+        await _run_update_team(
+            update_request=UpdateTeamRequest(team_id="doc-alignment-team", models=[]),
+            caller=_team_admin_caller(),
+            existing_team=_stored_team(),
+        )
+
+    assert exc_info.value.code == "403"
+    assert "every proxy model" in str(exc_info.value.message)
+
+
+@pytest.mark.asyncio
+async def test_update_team_model_wildcard_grant_blocked_for_team_admin():
+    """"*" reaches everything the same way the empty list does."""
+    from litellm.proxy._types import ProxyException, UpdateTeamRequest
+
+    with pytest.raises(ProxyException) as exc_info:
+        await _run_update_team(
+            update_request=UpdateTeamRequest(team_id="doc-alignment-team", models=["*"]),
+            caller=_team_admin_caller(),
+            existing_team=_stored_team(),
+        )
+
+    assert exc_info.value.code == "403"
+
+
+@pytest.mark.asyncio
+async def test_update_team_narrowing_a_wildcard_allowed_for_team_admin():
+    """A team holding openai/* already reaches openai/gpt-4o, so pinning the
+    list to that model narrows the team's access."""
+    from litellm.proxy._types import UpdateTeamRequest
+
+    result = await _run_update_team(
+        update_request=UpdateTeamRequest(team_id="doc-alignment-team", models=["openai/gpt-4o"]),
+        caller=_team_admin_caller(),
+        existing_team=_stored_team(models=["openai/*"]),
+    )
+
+    assert result is not None
+
+
+@pytest.mark.asyncio
+async def test_update_team_model_outside_a_wildcard_blocked_for_team_admin():
+    from litellm.proxy._types import ProxyException, UpdateTeamRequest
+
+    with pytest.raises(ProxyException) as exc_info:
+        await _run_update_team(
+            update_request=UpdateTeamRequest(team_id="doc-alignment-team", models=["anthropic/claude-opus-4-5"]),
+            caller=_team_admin_caller(),
+            existing_team=_stored_team(models=["openai/*"]),
+        )
+
+    assert exc_info.value.code == "403"
+
+
+@pytest.mark.asyncio
+async def test_update_team_budget_raise_allowed_for_team_admin_who_is_also_org_admin():
+    """The org admin who created the team is a team admin too; the stronger
+    grant has to win or they lose authority over their own org's team."""
+    from litellm.proxy._types import (
+        LiteLLM_BudgetTable,
+        LiteLLM_OrganizationTable,
+        UpdateTeamRequest,
+    )
+
+    mock_org = MagicMock(spec=LiteLLM_OrganizationTable)
+    mock_org.organization_id = "org-doc-alignment"
+    mock_org.models = ["gpt-4"]
+    mock_org.litellm_budget_table = MagicMock(spec=LiteLLM_BudgetTable)
+    mock_org.litellm_budget_table.max_budget = 1000.0
+    mock_org.litellm_budget_table.tpm_limit = None
+    mock_org.litellm_budget_table.rpm_limit = None
+
+    result = await _run_update_team(
+        update_request=UpdateTeamRequest(team_id="doc-alignment-team", max_budget=900.0),
+        caller=_team_admin_caller(),
+        existing_team=_stored_team(organization_id="org-doc-alignment"),
+        org=mock_org,
+        caller_is_org_admin=True,
+    )
+
+    assert result is not None
diff --git a/ui/litellm-dashboard/src/components/ModelSelect/ModelSelect.test.tsx b/ui/litellm-dashboard/src/components/ModelSelect/ModelSelect.test.tsx
index e253bc4c0ef..0e84d886d3a 100644
--- a/ui/litellm-dashboard/src/components/ModelSelect/ModelSelect.test.tsx
+++ b/ui/litellm-dashboard/src/components/ModelSelect/ModelSelect.test.tsx
@@ -578,4 +578,94 @@ describe("ModelSelect", () => {
       expect(screen.getByText(/\+5 more/)).toBeInTheDocument();
     });
   });
+  describe("restrictToCurrentTeamModels", () => {
+    const renderRestricted = (teamModels: string[], organizationModels?: string[]) => {
+      mockUseTeam.mockReturnValue({
+        data: { team_id: "team-1", team_alias: "Test Team", models: teamModels },
+        isLoading: false,
+      } as any);
+      if (organizationModels) {
+        mockUseOrganization.mockReturnValue({
+          data: createMockOrganization(organizationModels),
+          isLoading: false,
+        } as any);
+      }
+
+      renderWithProviders(
+        <ModelSelect
+          onChange={mockOnChange}
+          context="team"
+          teamID="team-1"
+          organizationID={organizationModels ? "org-1" : undefined}
+          options={{ includeSpecialOptions: true, restrictToCurrentTeamModels: true }}
+        />,
+      );
+    };
+
+    it("offers only the models the team already holds", async () => {
+      renderRestricted(["gpt-4"]);
+
+      await waitFor(() => {
+        expect(screen.getByRole("option", { name: "gpt-4" })).toBeInTheDocument();
+      });
+      expect(screen.queryByRole("option", { name: "claude-3" })).not.toBeInTheDocument();
+      expect(screen.queryByRole("option", { name: "All Proxy Models" })).not.toBeInTheDocument();
+    });
+
+    it("hides All Proxy Models even when the team's org grants everything", async () => {
+      renderRestricted(["gpt-4"], ["all-proxy-models"]);
+
+      await waitFor(() => {
+        expect(screen.getByRole("option", { name: "gpt-4" })).toBeInTheDocument();
+      });
+      expect(screen.queryByRole("option", { name: "All Proxy Models" })).not.toBeInTheDocument();
+      expect(screen.queryByRole("option", { name: "claude-3" })).not.toBeInTheDocument();
+    });
+
+    it("does not restrict a team that already reaches every model", async () => {
+      renderRestricted(["all-proxy-models"]);
+
+      await waitFor(() => {
+        expect(screen.getByRole("option", { name: "gpt-4" })).toBeInTheDocument();
+      });
+      expect(screen.getByRole("option", { name: "claude-3" })).toBeInTheDocument();
+    });
+
+    it("keeps every model a team wildcard already reaches selectable", async () => {
+      mockUseAllProxyModels.mockReturnValue({
+        data: {
+          data: [
+            { id: "openai/gpt-4o", object: "model", created: 1, owned_by: "openai" },
+            { id: "openai/*", object: "model", created: 1, owned_by: "openai" },
+            { id: "anthropic/claude-opus-4-5", object: "model", created: 1, owned_by: "anthropic" },
+          ],
+        },
+        isLoading: false,
+      } as any);
+      renderRestricted(["openai/*"]);
+
+      await waitFor(() => {
+        expect(screen.getByRole("option", { name: "openai/gpt-4o" })).toBeInTheDocument();
+      });
+      expect(screen.queryByRole("option", { name: "anthropic/claude-opus-4-5" })).not.toBeInTheDocument();
+    });
+
+    it("does not restrict a team holding the bare * grant", async () => {
+      renderRestricted(["*"]);
+
+      await waitFor(() => {
+        expect(screen.getByRole("option", { name: "gpt-4" })).toBeInTheDocument();
+      });
+      expect(screen.getByRole("option", { name: "claude-3" })).toBeInTheDocument();
+    });
+
+    it("does not restrict a team with an empty model list", async () => {
+      renderRestricted([]);
+
+      await waitFor(() => {
+        expect(screen.getByRole("option", { name: "gpt-4" })).toBeInTheDocument();
+      });
+      expect(screen.getByRole("option", { name: "claude-3" })).toBeInTheDocument();
+    });
+  });
 });
diff --git a/ui/litellm-dashboard/src/components/ModelSelect/ModelSelect.tsx b/ui/litellm-dashboard/src/components/ModelSelect/ModelSelect.tsx
index 0965683c241..88403de808d 100644
--- a/ui/litellm-dashboard/src/components/ModelSelect/ModelSelect.tsx
+++ b/ui/litellm-dashboard/src/components/ModelSelect/ModelSelect.tsx
@@ -29,6 +29,7 @@ export interface ModelSelectProps {
     showAllTeamModelsOption?: boolean;
     showAllProxyModelsOverride?: boolean;
     includeSpecialOptions?: boolean;
+    restrictToCurrentTeamModels?: boolean;
   };
   context: "team" | "organization" | "user" | "global";
   dataTestId?: string;
@@ -45,6 +46,28 @@ type FilterContextArgs = {
   options?: ModelSelectProps["options"];
 };
 
+/**
+ * The team's own models, when the caller may only narrow that list (a team
+ * admin can drop a model but not grant a new one — /team/update rejects it).
+ * Returns null when the restriction doesn't apply, including when the team
+ * already reaches every model, since nothing can widen it further.
+ */
+const keepOnlyCurrentTeamModels = (
+  selectedTeam: Team | undefined,
+  options: ModelSelectProps["options"],
+  allProxyModels: string[],
+): string[] | null => {
+  if (!options?.restrictToCurrentTeamModels) return null;
+  const teamModels = selectedTeam?.models ?? [];
+  if (teamModels.length === 0) return null;
+  if (teamModels.includes(MODEL_SELECT_ALL_PROXY_MODELS_SPECIAL_VALUE.value) || teamModels.includes("*")) return null;
+  const wildcardPrefixes = teamModels.filter((m) => m.endsWith("/*")).map((m) => m.slice(0, -1));
+  const reachableProxyModels = allProxyModels.filter((model) =>
+    wildcardPrefixes.some((prefix) => model.startsWith(prefix)),
+  );
+  return Array.from(new Set([...teamModels, ...reachableProxyModels]));
+};
+
 const contextFilters: Record<ModelSelectProps["context"], (args: FilterContextArgs) => string[]> = {
   user: ({ allProxyModels, userModels, options }) => {
     if (!userModels) return [];
@@ -52,7 +75,10 @@ const contextFilters: Record<ModelSelectProps["context"], (args: FilterContextAr
     return [];
   },
 
-  team: ({ allProxyModels, selectedOrganization, userModels }) => {
+  team: ({ allProxyModels, selectedTeam, selectedOrganization, userModels, options }) => {
+    const currentTeamModels = keepOnlyCurrentTeamModels(selectedTeam, options, allProxyModels);
+    if (currentTeamModels) return currentTeamModels;
+
     if (selectedOrganization) {
       if (
         selectedOrganization.models.includes(MODEL_SELECT_ALL_PROXY_MODELS_SPECIAL_VALUE.value) ||
@@ -107,7 +133,8 @@ export const ModelSelect = (props: ModelSelectProps) => {
     organization?.models.includes(MODEL_SELECT_ALL_PROXY_MODELS_SPECIAL_VALUE.value) ||
     organization?.models.length === 0;
   const shouldShowAllProxyModels =
-    showAllProxyModelsOverride || (organizationHasAllProxyModels && includeSpecialOptions) || context === "global";
+    keepOnlyCurrentTeamModels(team, options, []) === null &&
+    (showAllProxyModelsOverride || (organizationHasAllProxyModels && includeSpecialOptions) || context === "global");
 
   if (isLoading) {
     return <Skeleton.Input active block />;
diff --git a/ui/litellm-dashboard/src/components/team/TeamInfo.test.tsx b/ui/litellm-dashboard/src/components/team/TeamInfo.test.tsx
index 712cff80649..27a9d8c0a7a 100644
--- a/ui/litellm-dashboard/src/components/team/TeamInfo.test.tsx
+++ b/ui/litellm-dashboard/src/components/team/TeamInfo.test.tsx
@@ -3,7 +3,7 @@ import { screen, waitFor, within } from "@testing-library/react";
 import userEvent from "@testing-library/user-event";
 import { afterEach, beforeEach, describe, expect, it, vi } from "vitest";
 import { renderWithProviders, testQueryClient } from "../../../tests/test-utils";
-import TeamInfoView from "./TeamInfo";
+import TeamInfoView, { validateTeamMaxBudget } from "./TeamInfo";
 
 vi.mock("@/components/networking", () => ({
   teamInfoCall: vi.fn(),
@@ -43,6 +43,21 @@ vi.mock("@/app/(dashboard)/hooks/users/useCurrentUser", () => ({
   useCurrentUser: vi.fn(),
 }));
 
+let mockUserRole = "Admin";
+
+vi.mock("@/app/(dashboard)/hooks/useAuthorized", () => ({
+  default: () => ({
+    token: "123",
+    accessToken: "test-token",
+    userId: "user-1",
+    userEmail: "user@example.com",
+    userRole: mockUserRole,
+    premiumUser: false,
+    disabledPersonalKeyCreation: null,
+    showSSOBanner: false,
+  }),
+}));
+
 vi.mock("@/components/team/TeamMemberTab", () => ({
   default: vi.fn(({ setIsAddMemberModalVisible }) => (
     <div>
@@ -1193,4 +1208,119 @@ describe("TeamInfoView", () => {
       });
     });
   });
+  describe("team-admin budget authority", () => {
+    const teamAdminProps = { ...defaultProps, is_proxy_admin: false, is_team_admin: true };
+
+    const openSettingsForm = async (user: ReturnType<typeof userEvent.setup>) => {
+      await waitFor(() => {
+        expect(screen.queryAllByText("Test Team").length).toBeGreaterThan(0);
+      });
+      await user.click(screen.getByRole("tab", { name: "Settings" }));
+      await user.click(await screen.findByRole("button", { name: /edit settings/i }));
+      await screen.findByLabelText("Team Name");
+    };
+
+    beforeEach(() => {
+      testQueryClient.clear();
+      mockUserRole = "Internal User";
+      vi.mocked(networking.teamUpdateCall).mockResolvedValue({ data: {}, team_id: "123" } as any);
+      vi.mocked(networking.teamInfoCall).mockResolvedValue(
+        createMockTeamData({ models: ["gpt-4"], max_budget: 30 }),
+      );
+    });
+
+    afterEach(() => {
+      mockUserRole = "Admin";
+    });
+
+    it("blocks a raise before the request leaves the browser", async () => {
+      const user = userEvent.setup({ delay: null });
+      renderWithProviders(<TeamInfoView {...teamAdminProps} />);
+      await openSettingsForm(user);
+
+      const budgetInput = screen.getByLabelText("Max Budget (USD)");
+      await user.clear(budgetInput);
+      await user.type(budgetInput, "100");
+      await user.click(screen.getByRole("button", { name: /save changes/i }));
+
+      expect(await screen.findByText(/Only a proxy admin can raise this team's budget above \$30/)).toBeInTheDocument();
+      expect(networking.teamUpdateCall).not.toHaveBeenCalled();
+    });
+
+    it("blocks clearing the cap", async () => {
+      const user = userEvent.setup({ delay: null });
+      renderWithProviders(<TeamInfoView {...teamAdminProps} />);
+      await openSettingsForm(user);
+
+      await user.clear(screen.getByLabelText("Max Budget (USD)"));
+      await user.click(screen.getByRole("button", { name: /save changes/i }));
+
+      expect(await screen.findByText(/Only a proxy admin can remove this team's budget/)).toBeInTheDocument();
+      expect(networking.teamUpdateCall).not.toHaveBeenCalled();
+    });
+
+    it("lets a team admin lower the cap", async () => {
+      const user = userEvent.setup({ delay: null });
+      renderWithProviders(<TeamInfoView {...teamAdminProps} />);
+      await openSettingsForm(user);
+
+      const budgetInput = screen.getByLabelText("Max Budget (USD)");
+      await user.clear(budgetInput);
+      await user.type(budgetInput, "10");
+      await user.click(screen.getByRole("button", { name: /save changes/i }));
+
+      await waitFor(() => {
+        expect(networking.teamUpdateCall).toHaveBeenCalled();
+      });
+      const [accessToken, payload] = vi.mocked(networking.teamUpdateCall).mock.calls[0];
+      expect(accessToken).toBe("test-token");
+      expect(payload.team_id).toBe("123");
+      expect(Number(payload.max_budget)).toBe(10);
+    });
+
+    it("leaves a proxy admin free to raise the cap", async () => {
+      const user = userEvent.setup({ delay: null });
+      mockUserRole = "Admin";
+      renderWithProviders(<TeamInfoView {...defaultProps} />);
+      await openSettingsForm(user);
+
+      const budgetInput = screen.getByLabelText("Max Budget (USD)");
+      await user.clear(budgetInput);
+      await user.type(budgetInput, "100");
+      await user.click(screen.getByRole("button", { name: /save changes/i }));
+
+      await waitFor(() => {
+        expect(networking.teamUpdateCall).toHaveBeenCalled();
+      });
+      const [accessToken, payload] = vi.mocked(networking.teamUpdateCall).mock.calls[0];
+      expect(accessToken).toBe("test-token");
+      expect(payload.team_id).toBe("123");
+      expect(Number(payload.max_budget)).toBe(100);
+    });
+  });
+
+  describe("validateTeamMaxBudget", () => {
+    it("is inert for callers who hold the grant, or when the team has no cap", async () => {
+      await expect(validateTeamMaxBudget(true, 30)(null, 1000)).resolves.toBeUndefined();
+      await expect(validateTeamMaxBudget(false, null)(null, 1000)).resolves.toBeUndefined();
+      await expect(validateTeamMaxBudget(false, undefined)(null, "")).resolves.toBeUndefined();
+    });
+
+    it("allows keeping or lowering, rejects raising or clearing", async () => {
+      const validate = validateTeamMaxBudget(false, 30);
+
+      await expect(validate(null, 30)).resolves.toBeUndefined();
+      await expect(validate(null, 29.99)).resolves.toBeUndefined();
+      await expect(validate(null, 30.01)).rejects.toThrow(/raise/);
+      await expect(validate(null, "")).rejects.toThrow(/remove/);
+      await expect(validate(null, null)).rejects.toThrow(/remove/);
+    });
+
+    it("treats a zero cap as a real ceiling", async () => {
+      const validate = validateTeamMaxBudget(false, 0);
+
+      await expect(validate(null, 0)).resolves.toBeUndefined();
+      await expect(validate(null, 5)).rejects.toThrow(/raise/);
+    });
+  });
 });
diff --git a/ui/litellm-dashboard/src/components/team/TeamInfo.tsx b/ui/litellm-dashboard/src/components/team/TeamInfo.tsx
index 34570043f52..84544f74432 100644
--- a/ui/litellm-dashboard/src/components/team/TeamInfo.tsx
+++ b/ui/litellm-dashboard/src/components/team/TeamInfo.tsx
@@ -144,6 +144,25 @@ export interface TeamInfoProps {
   premiumUser?: boolean;
 }
 
+/**
+ * Mirrors the /team/update budget-authority gate so a team admin sees why the
+ * save is refused before the round-trip: they may keep or lower the team's
+ * ceiling, never raise or remove it.
+ */
+export const validateTeamMaxBudget =
+  (canWidenTeamGrants: boolean, currentMaxBudget: number | null | undefined) =>
+  async (_rule: unknown, value: unknown): Promise<void> => {
+    if (canWidenTeamGrants || currentMaxBudget == null) return;
+    if (value === null || value === undefined || value === "") {
+      throw new Error(`Only a proxy admin can remove this team's budget (currently $${currentMaxBudget})`);
+    }
+    const requested = Number(value);
+    if (Number.isNaN(requested)) return;
+    if (requested > currentMaxBudget) {
+      throw new Error(`Only a proxy admin can raise this team's budget above $${currentMaxBudget}`);
+    }
+  };
+
 const getOrganizationModels = (organization: Organization | null, userModels: string[]) => {
   let tempModelsToPick = [];
 
@@ -234,6 +253,10 @@ const TeamInfoView: React.FC<TeamInfoProps> = ({
   );
 
   const canEditTeam = is_team_admin || is_proxy_admin || is_org_admin || isOrgAdminForTeam || isTeamAdminFromTeamData;
+  const isTeamAdminForThisTeam = is_team_admin || isTeamAdminFromTeamData;
+  const holdsAuthorityOverTeam =
+    isProxyAdminRole(userRole) || is_proxy_admin || is_org_admin || isOrgAdminForTeam;
+  const canWidenTeamGrants = holdsAuthorityOverTeam || !isTeamAdminForThisTeam;
   const visibleTabs = useMemo(() => getTeamInfoVisibleTabs(canEditTeam), [canEditTeam]);
   const defaultTabKey = useMemo(() => getTeamInfoDefaultTab(editTeam, canEditTeam), [editTeam, canEditTeam]);
 
@@ -1042,6 +1065,7 @@ const TeamInfoView: React.FC<TeamInfoProps> = ({
                           includeUserModels: !teamData?.team_info?.organization_id,
                           showAllProxyModelsOverride:
                             isProxyAdminRole(userRole) && !teamData?.team_info?.organization_id,
+                          restrictToCurrentTeamModels: !canWidenTeamGrants,
                         }}
                         context="team"
                         dataTestId="models-select"
@@ -1066,7 +1090,16 @@ const TeamInfoView: React.FC<TeamInfoProps> = ({
                       />
                     </Form.Item>
 
-                    <Form.Item label="Max Budget (USD)" name="max_budget">
+                    <Form.Item
+                      label="Max Budget (USD)"
+                      name="max_budget"
+                      tooltip={
+                        canWidenTeamGrants || info.max_budget == null
+                          ? undefined
+                          : `Only a proxy admin can raise this team's budget above $${info.max_budget} or remove it`
+                      }
+                      rules={[{ validator: validateTeamMaxBudget(canWidenTeamGrants, info.max_budget) }]}
+                    >
                       <NumericalInput step={0.01} precision={2} style={{ width: "100%" }} />
                     </Form.Item>