diff --git a/litellm/proxy/management_endpoints/team_endpoints.py b/litellm/proxy/management_endpoints/team_endpoints.py
index 8e903180ac5..b45ac26a9ee 100644
--- a/litellm/proxy/management_endpoints/team_endpoints.py
+++ b/litellm/proxy/management_endpoints/team_endpoints.py
@@ -3095,12 +3095,7 @@ async def list_available_teams(
         ),
     )
     if available_teams is None:
-        raise HTTPException(
-            status_code=400,
-            detail={
-                "error": "No available teams for user to join. See how to set available teams here: https://docs.litellm.ai/docs/proxy/self_serve#all-settings-for-self-serve--sso-flow"
-            },
-        )
+        return []
 
     # filter out teams that the user is already a member of
     user_info = await prisma_client.db.litellm_usertable.find_unique(
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 7e351e29168..c4c953b75fb 100644
--- a/tests/test_litellm/proxy/management_endpoints/test_team_endpoints.py
+++ b/tests/test_litellm/proxy/management_endpoints/test_team_endpoints.py
@@ -38,6 +38,7 @@ from litellm.proxy.management_endpoints.team_endpoints import (
     _transform_teams_to_deleted_records,
     _validate_and_populate_member_user_info,
     delete_team,
+    list_available_teams,
     router,
     team_member_add_duplication_check,
     team_member_delete,
@@ -5871,3 +5872,37 @@ async def test_validate_and_populate_member_user_info_only_user_id_not_found():
     mock_prisma_client.db.litellm_usertable.find_unique.assert_called_once_with(
         where={"user_id": "nonexistent-user"}
     )
+
+
+@pytest.mark.asyncio
+async def test_list_available_teams_returns_empty_list_when_none_configured():
+    """
+    Test that /team/available returns an empty list when no available teams
+    are configured, instead of raising an exception.
+    """
+    import litellm
+
+    mock_request = MagicMock()
+    mock_user_key = UserAPIKeyAuth(user_id="test-user", token="fake-token")
+
+    with patch(
+        "litellm.proxy.proxy_server.prisma_client", mock_prisma_client
+    ):
+        # Case 1: default_internal_user_params is None
+        original = litellm.default_internal_user_params
+        litellm.default_internal_user_params = None
+        result = await list_available_teams(
+            http_request=mock_request,
+            user_api_key_dict=mock_user_key,
+        )
+        assert result == []
+
+        # Case 2: default_internal_user_params exists but has no "available_teams" key
+        litellm.default_internal_user_params = {"some_other_param": "value"}
+        result = await list_available_teams(
+            http_request=mock_request,
+            user_api_key_dict=mock_user_key,
+        )
+        assert result == []
+
+        litellm.default_internal_user_params = original
diff --git a/ui/litellm-dashboard/src/components/team/available_teams.test.tsx b/ui/litellm-dashboard/src/components/team/available_teams.test.tsx
index af2a0247b47..254a5a9bc8e 100644
--- a/ui/litellm-dashboard/src/components/team/available_teams.test.tsx
+++ b/ui/litellm-dashboard/src/components/team/available_teams.test.tsx
@@ -58,7 +58,8 @@ describe("AvailableTeamsPanel", () => {
     renderWithProviders(<AvailableTeamsPanel accessToken="token-123" userID="user-123" />);
 
     await waitFor(() => {
-      expect(screen.getByText("No available teams to join")).toBeInTheDocument();
+      expect(screen.getByText(/No available teams to join/i)).toBeInTheDocument();
+      expect(screen.getByText(/See how to set available teams/i)).toBeInTheDocument();
     });
   });
 
diff --git a/ui/litellm-dashboard/src/components/team/available_teams.tsx b/ui/litellm-dashboard/src/components/team/available_teams.tsx
index d4a172e8d01..34dcd126714 100644
--- a/ui/litellm-dashboard/src/components/team/available_teams.tsx
+++ b/ui/litellm-dashboard/src/components/team/available_teams.tsx
@@ -113,7 +113,16 @@ const AvailableTeamsPanel: React.FC<AvailableTeamsProps> = ({ accessToken, userI
           {availableTeams.length === 0 && (
             <TableRow>
               <TableCell colSpan={5} className="text-center">
-                <Text>No available teams to join</Text>
+                <Text>No available teams to join. See how to set available teams{" "}
+                  <a
+                    href="https://docs.litellm.ai/docs/proxy/self_serve#all-settings-for-self-serve--sso-flow"
+                    target="_blank"
+                    rel="noopener noreferrer"
+                    className="text-blue-500 hover:text-blue-700 underline"
+                  >
+                    here
+                  </a>.
+                </Text>
               </TableCell>
             </TableRow>
           )}