diff --git a/ui/litellm-dashboard/src/components/agents/add_agent_form.test.tsx b/ui/litellm-dashboard/src/components/agents/add_agent_form.test.tsx
new file mode 100644
index 00000000000..49159e0d78b
--- /dev/null
+++ b/ui/litellm-dashboard/src/components/agents/add_agent_form.test.tsx
@@ -0,0 +1,136 @@
+import React from "react";
+import { describe, it, expect, vi, beforeEach } from "vitest";
+import { screen, waitFor } from "@testing-library/react";
+import { renderWithProviders } from "../../../tests/test-utils";
+import useAuthorized from "@/app/(dashboard)/hooks/useAuthorized";
+
+vi.mock("@/app/(dashboard)/hooks/useAuthorized", () => ({
+  default: vi.fn(),
+}));
+
+vi.mock("../networking", () => ({
+  getAgentCreateMetadata: vi.fn().mockResolvedValue([]),
+  getAgentsList: vi.fn().mockResolvedValue({ agents: [] }),
+  keyListCall: vi.fn().mockResolvedValue({ keys: [] }),
+  modelAvailableCall: vi.fn().mockResolvedValue({ data: [] }),
+  createAgentCall: vi.fn().mockResolvedValue({ agent_id: "a1", agent_name: "test" }),
+  keyCreateForAgentCall: vi.fn().mockResolvedValue({ key: "sk-123" }),
+  keyUpdateCall: vi.fn().mockResolvedValue({}),
+}));
+
+vi.mock("../mcp_server_management/MCPServerSelector", () => ({
+  default: () => <div data-testid="mcp-server-selector" />,
+}));
+
+vi.mock("../mcp_server_management/MCPToolPermissions", () => ({
+  default: () => <div data-testid="mcp-tool-permissions" />,
+}));
+
+vi.mock("../guardrails/GuardrailSelector", () => ({
+  default: () => <div data-testid="guardrail-selector" />,
+}));
+
+vi.mock("../shared/CreatedKeyDisplay", () => ({
+  default: () => <div data-testid="created-key-display" />,
+}));
+
+import AddAgentForm from "./add_agent_form";
+
+const baseAuthorized = {
+  token: "123",
+  accessToken: "123",
+  userId: "user-1",
+  userEmail: "user@example.com",
+  userRole: "Admin",
+  premiumUser: false,
+  disabledPersonalKeyCreation: null,
+  showSSOBanner: false,
+};
+
+const defaultProps = {
+  visible: true,
+  onClose: vi.fn(),
+  accessToken: "test-token",
+  onSuccess: vi.fn(),
+  teams: [],
+};
+
+const navigateToGovernanceStep = async () => {
+  const nextButtons = screen.getAllByRole("button", { name: /next/i });
+  const nextButton = nextButtons[nextButtons.length - 1];
+
+  // Step 0 -> 1: need agent_name to be filled
+  // The form validation may block, so we fill agent name first
+  const agentNameInput = screen.getByLabelText(/agent name/i);
+  const { fireEvent } = await import("@testing-library/react");
+  const { act } = await import("react");
+  await act(async () => {
+    fireEvent.change(agentNameInput, { target: { value: "test-agent" } });
+  });
+
+  // Click Next to go to step 1 (Entitlements)
+  await act(async () => {
+    fireEvent.click(nextButton);
+  });
+
+  // Click Next to go to step 2 (Governance)
+  await waitFor(() => {
+    expect(screen.getByText("Entitlements")).toBeInTheDocument();
+  });
+
+  const nextButtons2 = screen.getAllByRole("button", { name: /next/i });
+  await act(async () => {
+    fireEvent.click(nextButtons2[nextButtons2.length - 1]);
+  });
+
+  await waitFor(() => {
+    expect(screen.getByText("Tracing")).toBeInTheDocument();
+  });
+};
+
+describe("AddAgentForm tracing enforcement premium gate", () => {
+  beforeEach(() => {
+    vi.clearAllMocks();
+  });
+
+  it("should show enterprise upgrade notice when user is not premium", async () => {
+    vi.mocked(useAuthorized).mockReturnValue(baseAuthorized);
+
+    renderWithProviders(<AddAgentForm {...defaultProps} />);
+    await navigateToGovernanceStep();
+
+    expect(
+      screen.getByText(/enforcing trace-id requirements on agents is a litellm enterprise feature/i)
+    ).toBeInTheDocument();
+
+    expect(
+      screen.queryByText(/require x-litellm-trace-id on calls to this agent/i)
+    ).not.toBeInTheDocument();
+
+    expect(
+      screen.queryByText(/require x-litellm-trace-id on calls by this agent/i)
+    ).not.toBeInTheDocument();
+  });
+
+  it("should show tracing switches when user is premium", async () => {
+    vi.mocked(useAuthorized).mockReturnValue({
+      ...baseAuthorized,
+      premiumUser: true,
+    });
+
+    renderWithProviders(<AddAgentForm {...defaultProps} />);
+    await navigateToGovernanceStep();
+
+    expect(
+      screen.queryByText(/enforcing trace-id requirements on agents is a litellm enterprise feature/i)
+    ).not.toBeInTheDocument();
+
+    expect(
+      screen.getByText(/require x-litellm-trace-id on calls to this agent/i)
+    ).toBeInTheDocument();
+
+    expect(
+      screen.getByText(/require x-litellm-trace-id on calls by this agent/i)
+    ).toBeInTheDocument();
+  });
+});
diff --git a/ui/litellm-dashboard/src/components/agents/add_agent_form.tsx b/ui/litellm-dashboard/src/components/agents/add_agent_form.tsx
index c5518596b81..1fcd49ab6ff 100644
--- a/ui/litellm-dashboard/src/components/agents/add_agent_form.tsx
+++ b/ui/litellm-dashboard/src/components/agents/add_agent_form.tsx
@@ -43,7 +43,7 @@ const AddAgentForm: React.FC<AddAgentFormProps> = ({
   onSuccess,
   teams,
 }) => {
-  const { userId, userRole } = useAuthorized();
+  const { userId, userRole, premiumUser } = useAuthorized();
   const [form] = Form.useForm();
   const [currentStep, setCurrentStep] = useState(0);
   const [isSubmitting, setIsSubmitting] = useState(false);
@@ -437,43 +437,55 @@ const AddAgentForm: React.FC<AddAgentFormProps> = ({
     <div className="space-y-6">
       <div>
         <h4 className="text-sm font-medium text-gray-700 mb-3">Tracing</h4>
-        <div className="space-y-4">
-          <div className="flex items-center justify-between">
-            <div>
-              <span className="text-sm font-medium text-gray-700">
-                Require x-litellm-trace-id on calls TO this agent
-              </span>
-              <p className="text-xs text-gray-500 mt-1">
-                Only accept this agent being invoked with a trace-id (e.g. when used as a sub-agent).
-              </p>
-            </div>
-            <Switch
-              checked={requireTraceIdInbound}
-              onChange={setRequireTraceIdInbound}
-            />
+        {!premiumUser ? (
+          <div className="p-3 bg-yellow-50 border border-yellow-200 rounded-lg">
+            <p className="text-sm text-yellow-800">
+              Enforcing trace-id requirements on agents is a LiteLLM Enterprise feature. Get a trial key{" "}
+              <a href="https://www.litellm.ai/#pricing" target="_blank" rel="noopener noreferrer" className="underline">
+                here
+              </a>
+              .
+            </p>
           </div>
+        ) : (
+          <div className="space-y-4">
+            <div className="flex items-center justify-between">
+              <div>
+                <span className="text-sm font-medium text-gray-700">
+                  Require x-litellm-trace-id on calls TO this agent
+                </span>
+                <p className="text-xs text-gray-500 mt-1">
+                  Only accept this agent being invoked with a trace-id (e.g. when used as a sub-agent).
+                </p>
+              </div>
+              <Switch
+                checked={requireTraceIdInbound}
+                onChange={setRequireTraceIdInbound}
+              />
+            </div>
 
-          <div className="flex items-center justify-between">
-            <div>
-              <span className="text-sm font-medium text-gray-700">
-                Require x-litellm-trace-id on calls BY this agent
-              </span>
-              <p className="text-xs text-gray-500 mt-1">
-                Requires LLM/MCP calls made by this agent to include x-litellm-trace-id for session tracking.
-              </p>
+            <div className="flex items-center justify-between">
+              <div>
+                <span className="text-sm font-medium text-gray-700">
+                  Require x-litellm-trace-id on calls BY this agent
+                </span>
+                <p className="text-xs text-gray-500 mt-1">
+                  Requires LLM/MCP calls made by this agent to include x-litellm-trace-id for session tracking.
+                </p>
+              </div>
+              <Switch
+                checked={requireTraceIdOutbound}
+                onChange={(checked) => {
+                  setRequireTraceIdOutbound(checked);
+                  if (!checked) {
+                    setMaxIterations(null);
+                    setMaxBudgetPerSession(null);
+                  }
+                }}
+              />
             </div>
-            <Switch
-              checked={requireTraceIdOutbound}
-              onChange={(checked) => {
-                setRequireTraceIdOutbound(checked);
-                if (!checked) {
-                  setMaxIterations(null);
-                  setMaxBudgetPerSession(null);
-                }
-              }}
-            />
           </div>
-        </div>
+        )}
       </div>
 
       <Divider className="my-0" />