diff --git a/litellm/proxy/_types.py b/litellm/proxy/_types.py
index d850b6f0525..7a376380521 100644
--- a/litellm/proxy/_types.py
+++ b/litellm/proxy/_types.py
@@ -1625,17 +1625,24 @@ class Member(MemberBase):
     @field_validator("extra_permissions", mode="before")
     @classmethod
     def validate_permission_format(cls, v):
-        """Validate that all permission strings follow the resource:action format."""
+        """Validate that all permission strings are known valid permissions."""
         if v is None:
             return v
         if not isinstance(v, list):
             raise ValueError("extra_permissions must be a list of strings")
+        from litellm.proxy.auth.permissions import VALID_PERMISSIONS
+
         for perm in v:
             if not isinstance(perm, str) or ":" not in perm:
                 raise ValueError(
                     f"Invalid permission format: '{perm}'. "
                     "Must follow 'resource:action' format (e.g. 'mcp:create')."
                 )
+            if perm not in VALID_PERMISSIONS:
+                raise ValueError(
+                    f"Unknown permission: '{perm}'. "
+                    f"Valid permissions: {sorted(VALID_PERMISSIONS)}"
+                )
         return v
 
 
diff --git a/litellm/proxy/management_endpoints/mcp_management_endpoints.py b/litellm/proxy/management_endpoints/mcp_management_endpoints.py
index ac1f7c833d7..38628a460eb 100644
--- a/litellm/proxy/management_endpoints/mcp_management_endpoints.py
+++ b/litellm/proxy/management_endpoints/mcp_management_endpoints.py
@@ -1854,7 +1854,7 @@ if MCP_AVAILABLE:
         description="Allows updating mcp servers in the db",
         dependencies=[Depends(user_api_key_auth)],
         response_model=LiteLLM_MCPServerTable,
-        status_code=status.HTTP_200_OK,
+        status_code=status.HTTP_202_ACCEPTED,
     )
     @management_endpoint_wrapper
     async def edit_mcp_server(
diff --git a/litellm/proxy/management_helpers/object_permission_utils.py b/litellm/proxy/management_helpers/object_permission_utils.py
index 1f2bef0d191..a4b52962332 100644
--- a/litellm/proxy/management_helpers/object_permission_utils.py
+++ b/litellm/proxy/management_helpers/object_permission_utils.py
@@ -366,6 +366,13 @@ async def validate_key_mcp_servers_against_team(
             )
 
 
+def _invalidate_team_cache(team_id: str) -> None:
+    """Invalidate the cached team object so subsequent reads see updated data."""
+    from litellm.proxy.proxy_server import user_api_key_cache
+
+    user_api_key_cache.delete_cache(key="team_id:{}".format(team_id))
+
+
 async def add_mcp_server_to_team(
     prisma_client: PrismaClient, team_id: str, server_id: str
 ) -> None:
@@ -421,6 +428,9 @@ async def add_mcp_server_to_team(
                 data={"object_permission_id": object_permission_id},
             )
 
+    # Invalidate team cache so the updated mcp_servers list is visible immediately
+    _invalidate_team_cache(team_id)
+
 
 async def remove_mcp_server_from_team(
     prisma_client: PrismaClient, team_id: str, server_id: str
@@ -452,3 +462,6 @@ async def remove_mcp_server_from_team(
                 where={"object_permission_id": team.object_permission_id},
                 data={"mcp_servers": updated_servers},
             )
+
+    # Invalidate team cache so the updated mcp_servers list is visible immediately
+    _invalidate_team_cache(team_id)