diff --git a/ui/litellm-dashboard/src/app/(dashboard)/policies/_components/index.test.tsx b/ui/litellm-dashboard/src/app/(dashboard)/policies/_components/index.test.tsx
index 3b6534ab0f0..fe0ce2a06ef 100644
--- a/ui/litellm-dashboard/src/app/(dashboard)/policies/_components/index.test.tsx
+++ b/ui/litellm-dashboard/src/app/(dashboard)/policies/_components/index.test.tsx
@@ -104,7 +104,12 @@ vi.mock("./add_policy_form", () => ({
 
 vi.mock("./guardrail_selection_modal", () => ({
   __esModule: true,
-  default: () => null,
+  default: ({ visible, onConfirm }: { visible: boolean; onConfirm: (defs: unknown[]) => void }) =>
+    visible ? (
+      <button type="button" data-testid="guardrail-selection-confirm" onClick={() => onConfirm([])}>
+        confirm guardrails
+      </button>
+    ) : null,
 }));
 
 vi.mock("./template_parameter_modal", () => ({
@@ -114,7 +119,20 @@ vi.mock("./template_parameter_modal", () => ({
 
 vi.mock("./ai_suggestion_modal", () => ({
   __esModule: true,
-  default: () => null,
+  default: ({ onSelectTemplates }: { onSelectTemplates: (templates: unknown[]) => void }) => (
+    <button
+      type="button"
+      data-testid="ai-suggestion-select-two"
+      onClick={() =>
+        onSelectTemplates([
+          { id: "tmpl-1", guardrailDefinitions: [] },
+          { id: "tmpl-2", guardrailDefinitions: [] },
+        ])
+      }
+    >
+      select two templates
+    </button>
+  ),
 }));
 
 vi.mock("./policy_test_panel", () => ({
@@ -196,3 +214,30 @@ describe("PoliciesPanel attachment delete", () => {
     });
   });
 });
+
+describe("PoliciesPanel template queue", () => {
+  beforeEach(() => {
+    vi.clearAllMocks();
+  });
+
+  it("stops processing queued templates after unmount", async () => {
+    const user = userEvent.setup();
+    const { unmount } = renderWithProviders(<PoliciesPanel accessToken="test-token" userRole="Admin" />);
+
+    await user.click(await screen.findByTestId("ai-suggestion-select-two"));
+
+    const callsAfterFirstTemplate = networkingMocks.getGuardrailsList.mock.calls.length;
+    await user.click(await screen.findByTestId("guardrail-selection-confirm"));
+
+    await waitFor(() => {
+      expect(networkingMocks.getGuardrailsList.mock.calls.length).toBe(callsAfterFirstTemplate + 1);
+    });
+
+    const callsBeforeUnmount = networkingMocks.getGuardrailsList.mock.calls.length;
+    unmount();
+
+    await new Promise((resolve) => setTimeout(resolve, 700));
+
+    expect(networkingMocks.getGuardrailsList.mock.calls.length).toBe(callsBeforeUnmount);
+  });
+});
diff --git a/ui/litellm-dashboard/src/app/(dashboard)/policies/_components/index.tsx b/ui/litellm-dashboard/src/app/(dashboard)/policies/_components/index.tsx
index 722d8face3d..ca25c13091a 100644
--- a/ui/litellm-dashboard/src/app/(dashboard)/policies/_components/index.tsx
+++ b/ui/litellm-dashboard/src/app/(dashboard)/policies/_components/index.tsx
@@ -1,4 +1,4 @@
-import React, { useState, useEffect, useCallback } from "react";
+import React, { useState, useEffect, useCallback, useRef } from "react";
 import { Button, TabGroup, TabList, Tab, TabPanels, TabPanel } from "@tremor/react";
 import { Alert } from "antd";
 
@@ -66,6 +66,13 @@ const PoliciesPanel: React.FC<PoliciesPanelProps> = ({ accessToken, userRole })
   const [loadedTemplates, setLoadedTemplates] = useState<any[]>([]);
   const [templateQueue, setTemplateQueue] = useState<any[]>([]);
   const [templateQueueProgress, setTemplateQueueProgress] = useState<{ current: number; total: number } | null>(null);
+  const templateQueueTimerRef = useRef<ReturnType<typeof setTimeout> | null>(null);
+
+  useEffect(() => {
+    return () => {
+      if (templateQueueTimerRef.current !== null) clearTimeout(templateQueueTimerRef.current);
+    };
+  }, []);
 
   const isAdmin = userRole ? isAdminRole(userRole) : false;
 
@@ -338,7 +345,7 @@ const PoliciesPanel: React.FC<PoliciesPanelProps> = ({ accessToken, userRole })
         setTemplateQueue(remaining);
         setTemplateQueueProgress((prev) => (prev ? { ...prev, current: prev.current + 1 } : null));
         // Small delay so user can see the success message
-        setTimeout(() => handleUseTemplate(nextTemplate), 500);
+        templateQueueTimerRef.current = setTimeout(() => handleUseTemplate(nextTemplate), 500);
       } else {
         setTemplateQueueProgress(null);
       }