diff --git a/litellm/proxy/health_endpoints/_health_endpoints.py b/litellm/proxy/health_endpoints/_health_endpoints.py
index ef9436f2d8c..4fa24143c9d 100644
--- a/litellm/proxy/health_endpoints/_health_endpoints.py
+++ b/litellm/proxy/health_endpoints/_health_endpoints.py
@@ -438,6 +438,22 @@ async def health_services_endpoint(  # noqa: PLR0915
                     },
                 )
         if service == "email":
+            from litellm.proxy.proxy_server import proxy_config, store_model_in_db
+
+            # TEST_EMAIL_ADDRESS is stored encrypted in the DB when the proxy
+            # is running in DB mode.  Calling get_config() ensures the value is
+            # freshly decrypted and available both in the returned config dict
+            # and in os.environ.  For YAML / env-var deployments the call is a
+            # cheap no-op and os.getenv() still works as the fallback.
+            if store_model_in_db and prisma_client is not None:
+                _fresh_config = await proxy_config.get_config()
+                _env_vars = _fresh_config.get("environment_variables", {})
+                _test_email_address = _env_vars.get(
+                    "TEST_EMAIL_ADDRESS"
+                ) or os.getenv("TEST_EMAIL_ADDRESS")
+            else:
+                _test_email_address = os.getenv("TEST_EMAIL_ADDRESS")
+
             webhook_event = WebhookEvent(
                 event="key_created",
                 event_group=Litellm_EntityType.KEY,
@@ -447,7 +463,7 @@ async def health_services_endpoint(  # noqa: PLR0915
                 spend=0,
                 max_budget=0,
                 user_id=user_api_key_dict.user_id,
-                user_email=os.getenv("TEST_EMAIL_ADDRESS"),
+                user_email=_test_email_address,
                 team_id=user_api_key_dict.team_id,
             )
 
diff --git a/ui/litellm-dashboard/src/components/email_settings.tsx b/ui/litellm-dashboard/src/components/email_settings.tsx
index 53d08ad64f5..8fd3a37398c 100644
--- a/ui/litellm-dashboard/src/components/email_settings.tsx
+++ b/ui/litellm-dashboard/src/components/email_settings.tsx
@@ -14,7 +14,7 @@ interface EmailSettingsProps {
 }
 
 const EmailSettings: React.FC<EmailSettingsProps> = ({ accessToken, premiumUser, alerts }) => {
-  const handleSaveEmailSettings = async () => {
+  const handleSaveEmailSettings = async ({ silent = false }: { silent?: boolean } = {}) => {
     if (!accessToken) {
       return;
     }
@@ -43,9 +43,15 @@ const EmailSettings: React.FC<EmailSettingsProps> = ({ accessToken, premiumUser,
     };
     try {
       await setCallbacksCall(accessToken, payload);
-      NotificationManager.success("Email settings updated successfully");
+      if (!silent) {
+        NotificationManager.success("Email settings updated successfully");
+      }
     } catch (error) {
-      NotificationManager.fromBackend(error);
+      if (!silent) {
+        NotificationManager.fromBackend(error);
+      }
+      // In silent mode (called from test flow) swallow the error so that
+      // the test can still proceed using env-var / YAML config values.
     }
   };
 
@@ -163,6 +169,12 @@ const EmailSettings: React.FC<EmailSettingsProps> = ({ accessToken, premiumUser,
           onClick={async () => {
             if (!accessToken) return;
             try {
+              // Silently attempt to persist the current form values so the
+              // backend can read TEST_EMAIL_ADDRESS from the DB (DB mode).
+              // If saving is not supported (e.g. STORE_MODEL_IN_DB=False /
+              // YAML mode), this is a no-op and the backend will fall back to
+              // the TEST_EMAIL_ADDRESS environment variable instead.
+              await handleSaveEmailSettings({ silent: true });
               await serviceHealthCheck(accessToken, "email");
               NotificationManager.success("Email test triggered. Check your configured email inbox/logs.");
             } catch (error) {