diff --git a/litellm/proxy/management_helpers/utils.py b/litellm/proxy/management_helpers/utils.py
index 287dc38a1fb..602732d5d37 100644
--- a/litellm/proxy/management_helpers/utils.py
+++ b/litellm/proxy/management_helpers/utils.py
@@ -436,6 +436,33 @@ async def send_management_endpoint_alert(
             )
 
 
+def _redact_env_var_values(response: dict) -> None:
+    """Blank ``env_vars[].value`` in a management response before telemetry.
+
+    MCP create/update endpoints return decrypted ``scope="global"`` env var
+    values so the admin UI can pre-fill the edit form; those values are
+    upstream credentials and must not be serialized verbatim into OTEL spans,
+    where an observability user could read them. Names, scopes, and
+    descriptions are kept so traces stay useful.
+    """
+    env_vars = response.get("env_vars")
+    if not isinstance(env_vars, list):
+        return
+
+    def _redacted(entry: Any) -> dict:
+        get = (
+            entry.get if isinstance(entry, dict) else lambda k: getattr(entry, k, None)
+        )
+        return {
+            "name": get("name"),
+            "scope": get("scope"),
+            "description": get("description"),
+            "value": "",
+        }
+
+    response["env_vars"] = [_redacted(entry) for entry in env_vars]
+
+
 async def _emit_management_endpoint_otel_span(
     func: Callable,
     kwargs: dict,
@@ -497,6 +524,7 @@ async def _emit_management_endpoint_otel_span(
         try:
             raw = dict(result)
             _response = {k: v for k, v in raw.items() if k not in _CREDENTIAL_FIELDS}
+            _redact_env_var_values(_response)
         except Exception:
             _response = None
 
diff --git a/tests/test_litellm/proxy/management_helpers/test_management_helpers_utils.py b/tests/test_litellm/proxy/management_helpers/test_management_helpers_utils.py
index 459072cf9d3..6a4801a699b 100644
--- a/tests/test_litellm/proxy/management_helpers/test_management_helpers_utils.py
+++ b/tests/test_litellm/proxy/management_helpers/test_management_helpers_utils.py
@@ -19,6 +19,79 @@ from litellm.proxy._types import (
 from litellm.proxy.management_helpers.utils import add_new_member
 
 
+@pytest.mark.asyncio
+async def test_management_otel_span_redacts_mcp_global_env_var_secrets(monkeypatch):
+    """A decrypted MCP global env var secret must never reach telemetry.
+
+    MCP create/update endpoints return the server with decrypted
+    ``scope="global"`` env var values so the admin UI can pre-fill the edit
+    form. ``management_endpoint_wrapper`` serializes the response into an OTEL
+    span, and that span is readable by observability users, so the secret value
+    must be blanked there while names/scopes stay for usefulness. The endpoint's
+    own return value must keep the decrypted value for the admin.
+    """
+    import datetime
+
+    from litellm.proxy._types import (
+        LiteLLM_MCPServerTable,
+        MCPEnvVar,
+        MCPEnvVarScope,
+    )
+    from litellm.proxy.management_helpers import utils as mgmt_utils
+
+    captured = {}
+
+    class _FakeOtelLogger:
+        async def async_management_endpoint_success_hook(
+            self, logging_payload, parent_otel_span
+        ):
+            captured["response"] = logging_payload.response
+
+    import litellm.proxy.proxy_server as proxy_server
+
+    monkeypatch.setattr(proxy_server, "open_telemetry_logger", _FakeOtelLogger())
+    monkeypatch.setattr(mgmt_utils, "is_otel_v2_enabled", lambda: False)
+
+    secret = "s3cr3t-p@ss"
+    result = LiteLLM_MCPServerTable(
+        server_id="srv-1",
+        alias="echo",
+        url="http://localhost:8765/mcp",
+        transport="http",
+        env_vars=[
+            MCPEnvVar(name="DB_PASSWORD", value=secret, scope=MCPEnvVarScope.global_),
+            MCPEnvVar(
+                name="CORP_USER",
+                value="",
+                scope=MCPEnvVarScope.user,
+                description="Your DB username",
+            ),
+        ],
+        created_at=datetime.datetime.now(),
+        updated_at=datetime.datetime.now(),
+    )
+
+    await mgmt_utils._emit_management_endpoint_otel_span(
+        func=lambda: None,
+        kwargs={},
+        parent_otel_span=object(),
+        start_time=datetime.datetime.now(),
+        end_time=datetime.datetime.now(),
+        result=result,
+    )
+
+    serialized = captured["response"]["env_vars"]
+    # The secret must not appear anywhere the span serializer would stringify.
+    assert secret not in str(captured["response"])
+    assert all(entry["value"] == "" for entry in serialized)
+    # Names and scopes survive so the trace stays useful.
+    assert {entry["name"] for entry in serialized} == {"DB_PASSWORD", "CORP_USER"}
+    assert any(entry["scope"] == MCPEnvVarScope.global_ for entry in serialized)
+    # The endpoint's own return value is untouched: the admin still gets the
+    # decrypted value to pre-fill the edit form.
+    assert result.env_vars[0].value == secret
+
+
 @pytest.mark.asyncio
 async def test_add_new_member_clones_default_team_budget_id():
     """