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 c28e398e451..4c99f154d7b 100644
--- a/tests/test_litellm/proxy/management_endpoints/test_team_endpoints.py
+++ b/tests/test_litellm/proxy/management_endpoints/test_team_endpoints.py
@@ -14224,10 +14224,6 @@ async def test_team_info_returns_parent_organization_models(organization, expect
             user_api_key_dict=UserAPIKeyAuth(user_role=LitellmUserRoles.PROXY_ADMIN),
         )
 
-    include = mock_prisma.db.litellm_teamtable.find_unique.await_args.kwargs["include"]
-    assert include["litellm_organization_table"] is True
-
     team_info = response["team_info"]
     assert team_info.organization_models == expected_models
-    # the org row itself carries budgets and spend; only its model list may ride along
     assert "litellm_organization_table" not in team_info.model_dump()
diff --git a/ui/litellm-dashboard/src/components/ModelSelect/ModelSelect.test.tsx b/ui/litellm-dashboard/src/components/ModelSelect/ModelSelect.test.tsx
index 690d41586d0..3ea42f5adc0 100644
--- a/ui/litellm-dashboard/src/components/ModelSelect/ModelSelect.test.tsx
+++ b/ui/litellm-dashboard/src/components/ModelSelect/ModelSelect.test.tsx
@@ -473,6 +473,50 @@ describe("ModelSelect", () => {
     }
   });
 
+  it("should stay in the loading state while a list-seeded team is still fetching its org ceiling", () => {
+    mockUseOrganization.mockReturnValue({ data: undefined, isLoading: false } as any);
+    mockUseTeam.mockReturnValue({
+      data: { team_id: "team-1", models: [] },
+      isLoading: false,
+      isFetching: true,
+    } as any);
+
+    renderWithProviders(
+      <ModelSelect
+        onChange={mockOnChange}
+        context="team"
+        teamID="team-1"
+        organizationID="org-1"
+        options={{ includeSpecialOptions: true }}
+      />,
+    );
+
+    expect(screen.queryAllByRole("combobox")).toHaveLength(0);
+  });
+
+  it("should not hold the loading state on a background refetch once the org ceiling is known", async () => {
+    const user = userEvent.setup();
+    mockUseOrganization.mockReturnValue({ data: undefined, isLoading: false } as any);
+    mockUseTeam.mockReturnValue({
+      data: { team_id: "team-1", organization_models: ["all-proxy-models"] },
+      isLoading: false,
+      isFetching: true,
+    } as any);
+
+    renderWithProviders(
+      <ModelSelect
+        onChange={mockOnChange}
+        context="team"
+        teamID="team-1"
+        organizationID="org-1"
+        options={{ includeSpecialOptions: true }}
+      />,
+    );
+
+    await openModelList(user);
+    expectOffered("All Proxy Models");
+  });
+
   it("should keep hiding All Proxy Models when neither the team nor the org reports a ceiling", async () => {
     const user = userEvent.setup();
     mockUseOrganization.mockReturnValue({ data: undefined, isLoading: false } as any);
diff --git a/ui/litellm-dashboard/src/components/ModelSelect/ModelSelect.tsx b/ui/litellm-dashboard/src/components/ModelSelect/ModelSelect.tsx
index 76d95df6962..ca449be81e3 100644
--- a/ui/litellm-dashboard/src/components/ModelSelect/ModelSelect.tsx
+++ b/ui/litellm-dashboard/src/components/ModelSelect/ModelSelect.tsx
@@ -19,6 +19,7 @@ import {
 } from "@/components/ui/combobox";
 import { Skeleton } from "@/components/ui/skeleton";
 import { Tooltip, TooltipContent, TooltipProvider, TooltipTrigger } from "@/components/ui/tooltip";
+import type { Team } from "@/components/key_team_helpers/key_list";
 import { splitWildcardModels } from "./modelUtils";
 
 const MODEL_SELECT_ALL_PROXY_MODELS_SPECIAL_VALUE = {
@@ -76,6 +77,10 @@ type FilterContextArgs = {
 const isUncappedModelCeiling = (organizationModels: string[]) =>
   organizationModels.length === 0 || organizationModels.includes(MODEL_SELECT_ALL_PROXY_MODELS_SPECIAL_VALUE.value);
 
+// useTeam seeds from the team list, which omits organization_models; /team/info is the only source of the org ceiling.
+const isAwaitingOrganizationModels = (team: Team | undefined, isFetchingTeam: boolean) =>
+  isFetchingTeam && team !== undefined && team.organization_models === undefined;
+
 const contextFilters: Record<ModelSelectProps["context"], (args: FilterContextArgs) => string[]> = {
   user: ({ allProxyModels, userModels, options }) => {
     if (!userModels) return [];
@@ -118,13 +123,14 @@ export const ModelSelect = (props: ModelSelectProps) => {
   const { id, teamID, organizationID, options, context, dataTestId, value = [], onChange, style } = props;
   const { showAllProxyModelsOverride, includeSpecialOptions } = options || {};
   const { data: allProxyModels, isLoading: isLoadingAllProxyModels } = useAllProxyModels();
-  const { data: team, isLoading: isLoadingTeam } = useTeam(teamID);
+  const { data: team, isLoading: isLoadingTeam, isFetching: isFetchingTeam } = useTeam(teamID);
   const { data: organization, isLoading: isLoadingOrganization } = useOrganization(organizationID);
   const { data: currentUser, isLoading: isCurrentUserLoading } = useCurrentUser();
 
   const isSpecialOption = (value: string) => MODEL_SENTINEL_OPTIONS.some((sv) => sv.value === value);
   const hasSpecialOptionSelected = value.some(isSpecialOption);
-  const isLoading = isLoadingAllProxyModels || isLoadingTeam || isLoadingOrganization || isCurrentUserLoading;
+  const isTeamPending = isLoadingTeam || isAwaitingOrganizationModels(team, isFetchingTeam);
+  const isLoading = isLoadingAllProxyModels || isTeamPending || isLoadingOrganization || isCurrentUserLoading;
   // The org's ceiling rides on /team/info, which a team admin may read; /organization/info 403s for them.
   const organizationModels = team?.organization_models ?? organization?.models;
   const organizationHasAllProxyModels = organizationModels !== undefined && isUncappedModelCeiling(organizationModels);