diff --git a/tests/e2e/ui/tests/modelsPage/autoRouterTemplateSelect.spec.ts b/tests/e2e/ui/tests/modelsPage/autoRouterTemplateSelect.spec.ts
new file mode 100644
index 00000000000..98bd1b84f11
--- /dev/null
+++ b/tests/e2e/ui/tests/modelsPage/autoRouterTemplateSelect.spec.ts
@@ -0,0 +1,59 @@
+import { expect, test, type Page as PlaywrightPage } from "@playwright/test";
+import { ADMIN_STORAGE_PATH } from "../../constants";
+import { navigateToPage } from "../../helpers/navigation";
+import { Page } from "../../fixtures/pages";
+
+/**
+ * Opens Add Auto Router and returns the Template select's trigger, which is the
+ * shallowest real page that renders SelectContent with tall multi-line options.
+ */
+async function openTemplateSelect(page: PlaywrightPage) {
+  await navigateToPage(page, Page.Models);
+  await page.getByRole("tab", { name: "Auto-Routers" }).click();
+  await page.getByRole("button", { name: "Add Auto Router" }).click();
+
+  const trigger = page.getByTestId("template-selector");
+  await expect(trigger).toBeVisible();
+  return trigger;
+}
+
+test.describe("Auto Router template select anchoring", () => {
+  test.use({ storageState: ADMIN_STORAGE_PATH });
+
+  test("opens the options below the trigger rather than over it", async ({ page }) => {
+    await page.setViewportSize({ width: 1280, height: 900 });
+    const trigger = await openTemplateSelect(page);
+    const triggerBox = await trigger.boundingBox();
+
+    await trigger.click();
+    const popup = page.locator('[data-slot="select-content"]');
+    await expect(popup).toBeVisible();
+    const popupBox = await popup.boundingBox();
+
+    expect(triggerBox).not.toBeNull();
+    expect(popupBox).not.toBeNull();
+
+    // Item-aligned mode reports "none" and puts the active item over the trigger.
+    await expect(popup).toHaveAttribute("data-side", "bottom");
+    expect(popupBox!.y).toBeGreaterThanOrEqual(triggerBox!.y + triggerBox!.height);
+  });
+
+  test("flips above the trigger instead of covering it when there is no room below", async ({ page }) => {
+    await page.setViewportSize({ width: 1280, height: 560 });
+    const trigger = await openTemplateSelect(page);
+    await trigger.scrollIntoViewIfNeeded();
+    const triggerBox = await trigger.boundingBox();
+
+    await trigger.click();
+    const popup = page.locator('[data-slot="select-content"]');
+    await expect(popup).toBeVisible();
+    const popupBox = await popup.boundingBox();
+
+    expect(triggerBox).not.toBeNull();
+    expect(popupBox).not.toBeNull();
+
+    const overlaps =
+      popupBox!.y < triggerBox!.y + triggerBox!.height && popupBox!.y + popupBox!.height > triggerBox!.y;
+    expect(overlaps).toBe(false);
+  });
+});
diff --git a/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/TeamGuardrailsTab.tsx b/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/TeamGuardrailsTab.tsx
index c9de758f50d..e309e8130f1 100644
--- a/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/TeamGuardrailsTab.tsx
+++ b/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/TeamGuardrailsTab.tsx
@@ -1106,7 +1106,7 @@ export function TeamGuardrailsTab({ accessToken }: TeamGuardrailsTabProps) {
                       >
                         <SelectValue />
                       </SelectTrigger>
-                      <SelectContent alignItemWithTrigger={false}>
+                      <SelectContent>
                         {GUARDRAIL_MODES.map((mode) => (
                           <SelectItem key={mode.value} value={mode.value} title={mode.label}>
                             {mode.label}
diff --git a/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/content_filter/CategoryTable.tsx b/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/content_filter/CategoryTable.tsx
index fa40ce6ab54..f012923d32f 100644
--- a/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/content_filter/CategoryTable.tsx
+++ b/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/content_filter/CategoryTable.tsx
@@ -64,7 +64,7 @@ const CategoryTable: React.FC<CategoryTableProps> = ({
             <SelectTrigger size="sm" className="w-[150px]" aria-label="Severity Threshold">
               <SelectValue />
             </SelectTrigger>
-            <SelectContent alignItemWithTrigger={false}>
+            <SelectContent>
               {SEVERITY_ITEMS.map((item) => (
                 <SelectItem key={item.value} value={item.value}>
                   {item.label}
@@ -93,7 +93,7 @@ const CategoryTable: React.FC<CategoryTableProps> = ({
             <SelectTrigger size="sm" className="w-[120px]" aria-label="Action">
               <SelectValue />
             </SelectTrigger>
-            <SelectContent alignItemWithTrigger={false}>
+            <SelectContent>
               {ACTION_ITEMS.map((item) => (
                 <SelectItem key={item.value} value={item.value}>
                   {item.label}
diff --git a/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/content_filter/CompetitorIntentConfiguration.tsx b/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/content_filter/CompetitorIntentConfiguration.tsx
index d77dd216c2a..aa9b6798fff 100644
--- a/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/content_filter/CompetitorIntentConfiguration.tsx
+++ b/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/content_filter/CompetitorIntentConfiguration.tsx
@@ -194,7 +194,7 @@ const CompetitorIntentConfiguration: React.FC<CompetitorIntentConfigurationProps
               <SelectTrigger id={`${fieldId}-type`} className="w-full">
                 <SelectValue />
               </SelectTrigger>
-              <SelectContent alignItemWithTrigger={false}>
+              <SelectContent>
                 {INTENT_TYPES.map((type) => (
                   <SelectItem key={type.value} value={type.value} title={type.label}>
                     {type.label}
@@ -268,7 +268,7 @@ const CompetitorIntentConfiguration: React.FC<CompetitorIntentConfigurationProps
               <SelectTrigger id={`${fieldId}-competitor-comparison`} className="w-full">
                 <SelectValue />
               </SelectTrigger>
-              <SelectContent alignItemWithTrigger={false}>
+              <SelectContent>
                 {COMPETITOR_COMPARISON_POLICIES.map((policy) => (
                   <SelectItem key={policy.value} value={policy.value} title={policy.label}>
                     {policy.label}
@@ -292,7 +292,7 @@ const CompetitorIntentConfiguration: React.FC<CompetitorIntentConfigurationProps
               <SelectTrigger id={`${fieldId}-possible-competitor-comparison`} className="w-full">
                 <SelectValue />
               </SelectTrigger>
-              <SelectContent alignItemWithTrigger={false}>
+              <SelectContent>
                 {POSSIBLE_COMPETITOR_COMPARISON_POLICIES.map((policy) => (
                   <SelectItem key={policy.value} value={policy.value} title={policy.label}>
                     {policy.label}
diff --git a/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/content_filter/ContentCategoryConfiguration.tsx b/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/content_filter/ContentCategoryConfiguration.tsx
index 1924133a6cc..f2226a3bc6e 100644
--- a/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/content_filter/ContentCategoryConfiguration.tsx
+++ b/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/content_filter/ContentCategoryConfiguration.tsx
@@ -199,7 +199,7 @@ const ContentCategoryConfiguration: React.FC<ContentCategoryConfigurationProps>
           <SelectTrigger size="sm" className="w-full" aria-label="Action">
             <SelectValue />
           </SelectTrigger>
-          <SelectContent alignItemWithTrigger={false}>
+          <SelectContent>
             {ACTION_ITEMS.map((item) => (
               <SelectItem key={item.value} value={item.value}>
                 <Badge variant={item.value === "BLOCK" ? "destructive" : "secondary"}>{item.value}</Badge>
@@ -224,7 +224,7 @@ const ContentCategoryConfiguration: React.FC<ContentCategoryConfigurationProps>
           <SelectTrigger size="sm" className="w-full" aria-label="Severity Threshold">
             <SelectValue />
           </SelectTrigger>
-          <SelectContent alignItemWithTrigger={false}>
+          <SelectContent>
             {SEVERITY_ITEMS.map((item) => (
               <SelectItem key={item.value} value={item.value}>
                 {item.label}
diff --git a/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/content_filter/CustomPatternModal.tsx b/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/content_filter/CustomPatternModal.tsx
index 64441c90e5a..9813169e85e 100644
--- a/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/content_filter/CustomPatternModal.tsx
+++ b/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/content_filter/CustomPatternModal.tsx
@@ -71,7 +71,7 @@ const CustomPatternModal: React.FC<CustomPatternModalProps> = ({
               <SelectTrigger className="w-full" aria-label="Action">
                 <SelectValue />
               </SelectTrigger>
-              <SelectContent alignItemWithTrigger={false}>
+              <SelectContent>
                 {ACTION_ITEMS.map((item) => (
                   <SelectItem key={item.value} value={item.value}>
                     {item.label}
diff --git a/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/content_filter/KeywordModal.tsx b/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/content_filter/KeywordModal.tsx
index 177c0d2fac6..393a508cd18 100644
--- a/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/content_filter/KeywordModal.tsx
+++ b/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/content_filter/KeywordModal.tsx
@@ -61,7 +61,7 @@ const KeywordModal: React.FC<KeywordModalProps> = ({
               <SelectTrigger className="w-full" aria-label="Action">
                 <SelectValue />
               </SelectTrigger>
-              <SelectContent alignItemWithTrigger={false}>
+              <SelectContent>
                 {ACTION_ITEMS.map((item) => (
                   <SelectItem key={item.value} value={item.value}>
                     {item.label}
diff --git a/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/content_filter/KeywordTable.tsx b/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/content_filter/KeywordTable.tsx
index 5c7e3ef3ab8..5b69b04955f 100644
--- a/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/content_filter/KeywordTable.tsx
+++ b/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/content_filter/KeywordTable.tsx
@@ -38,7 +38,7 @@ const KeywordTable: React.FC<KeywordTableProps> = ({ keywords, onActionChange, o
           <SelectTrigger size="sm" className="w-[120px]" aria-label="Action">
             <SelectValue />
           </SelectTrigger>
-          <SelectContent alignItemWithTrigger={false}>
+          <SelectContent>
             {ACTION_ITEMS.map((item) => (
               <SelectItem key={item.value} value={item.value}>
                 {item.label}
diff --git a/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/content_filter/PatternModal.tsx b/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/content_filter/PatternModal.tsx
index e703711a03a..fd353f7d743 100644
--- a/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/content_filter/PatternModal.tsx
+++ b/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/content_filter/PatternModal.tsx
@@ -115,7 +115,7 @@ const PatternModal: React.FC<PatternModalProps> = ({
               <SelectTrigger className="w-full" aria-label="Action">
                 <SelectValue />
               </SelectTrigger>
-              <SelectContent alignItemWithTrigger={false}>
+              <SelectContent>
                 {ACTION_ITEMS.map((item) => (
                   <SelectItem key={item.value} value={item.value}>
                     {item.label}
diff --git a/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/content_filter/PatternTable.tsx b/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/content_filter/PatternTable.tsx
index 6dd266f07a0..f4e87119d7b 100644
--- a/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/content_filter/PatternTable.tsx
+++ b/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/content_filter/PatternTable.tsx
@@ -58,7 +58,7 @@ const PatternTable: React.FC<PatternTableProps> = ({ patterns, onActionChange, o
           <SelectTrigger size="sm" className="w-[120px]" aria-label="Action">
             <SelectValue />
           </SelectTrigger>
-          <SelectContent alignItemWithTrigger={false}>
+          <SelectContent>
             {ACTION_ITEMS.map((item) => (
               <SelectItem key={item.value} value={item.value}>
                 {item.label}
diff --git a/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/custom_code/CustomCodeModal.tsx b/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/custom_code/CustomCodeModal.tsx
index 77bac8bb0aa..a69824f32d3 100644
--- a/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/custom_code/CustomCodeModal.tsx
+++ b/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/custom_code/CustomCodeModal.tsx
@@ -556,7 +556,7 @@ const CustomCodeModal: React.FC<CustomCodeModalProps> = ({ visible, onClose, onS
               <SelectTrigger className="w-full" aria-label="Template">
                 <SelectValue />
               </SelectTrigger>
-              <SelectContent alignItemWithTrigger={false}>
+              <SelectContent>
                 <SelectGroup>
                   <SelectLabel>STANDARD</SelectLabel>
                   {TEMPLATE_ITEMS.map((template) => (
diff --git a/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/pii_components.tsx b/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/pii_components.tsx
index 5f8e833af8d..0de7eb1c9ce 100644
--- a/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/pii_components.tsx
+++ b/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/pii_components.tsx
@@ -179,7 +179,7 @@ export const PiiEntityList: React.FC<PiiEntityListProps> = ({
                     <SelectTrigger className={`w-[120px] ${isSelected ? "" : "opacity-50"}`} aria-label="Action">
                       <SelectValue />
                     </SelectTrigger>
-                    <SelectContent alignItemWithTrigger={false}>
+                    <SelectContent>
                       {actions.map((action) => (
                         <SelectItem key={action} value={action}>
                           <span className="flex items-center">
diff --git a/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/tool_permission/ToolPermissionRulesEditor.tsx b/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/tool_permission/ToolPermissionRulesEditor.tsx
index 8fe2bf5bf21..c154d102314 100644
--- a/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/tool_permission/ToolPermissionRulesEditor.tsx
+++ b/ui/litellm-dashboard/src/app/(dashboard)/guardrails/_components/tool_permission/ToolPermissionRulesEditor.tsx
@@ -280,7 +280,7 @@ const ToolPermissionRulesEditor: React.FC<ToolPermissionRulesEditorProps> = ({ v
                       <SelectTrigger className="w-[200px]" aria-label="Decision">
                         <SelectValue />
                       </SelectTrigger>
-                      <SelectContent alignItemWithTrigger={false}>
+                      <SelectContent>
                         {DECISION_ITEMS.map((item) => (
                           <SelectItem key={item.value} value={item.value}>
                             {item.label}
@@ -313,7 +313,7 @@ const ToolPermissionRulesEditor: React.FC<ToolPermissionRulesEditorProps> = ({ v
               <SelectTrigger className="w-full" aria-label="Default action">
                 <SelectValue />
               </SelectTrigger>
-              <SelectContent alignItemWithTrigger={false}>
+              <SelectContent>
                 {DECISION_ITEMS.map((item) => (
                   <SelectItem key={item.value} value={item.value}>
                     {item.label}
@@ -350,7 +350,7 @@ const ToolPermissionRulesEditor: React.FC<ToolPermissionRulesEditorProps> = ({ v
               <SelectTrigger className="w-full" aria-label="On disallowed action">
                 <SelectValue />
               </SelectTrigger>
-              <SelectContent alignItemWithTrigger={false}>
+              <SelectContent>
                 {ON_DISALLOWED_ITEMS.map((item) => (
                   <SelectItem key={item.value} value={item.value}>
                     {item.label}
diff --git a/ui/litellm-dashboard/src/app/(dashboard)/vector-stores/_components/CreateVectorStore.tsx b/ui/litellm-dashboard/src/app/(dashboard)/vector-stores/_components/CreateVectorStore.tsx
index eae4a3fd799..61d31c2d3d4 100644
--- a/ui/litellm-dashboard/src/app/(dashboard)/vector-stores/_components/CreateVectorStore.tsx
+++ b/ui/litellm-dashboard/src/app/(dashboard)/vector-stores/_components/CreateVectorStore.tsx
@@ -342,7 +342,7 @@ const CreateVectorStore: React.FC<CreateVectorStoreProps> = ({ accessToken, onSu
                   <SelectTrigger id="vector-store-provider" className="w-full">
                     <SelectValue placeholder="Select a provider" />
                   </SelectTrigger>
-                  <SelectContent alignItemWithTrigger={false}>
+                  <SelectContent>
                     {providerItems.map((item) => (
                       <SelectItem key={item.value} value={item.value}>
                         <Logo src={vectorStoreProviderLogoMap[item.label]} label={item.label} className="w-5 h-5" />
diff --git a/ui/litellm-dashboard/src/app/(dashboard)/vector-stores/_components/VectorStoreForm.tsx b/ui/litellm-dashboard/src/app/(dashboard)/vector-stores/_components/VectorStoreForm.tsx
index 0c7d8cebb4b..6e2701be51b 100644
--- a/ui/litellm-dashboard/src/app/(dashboard)/vector-stores/_components/VectorStoreForm.tsx
+++ b/ui/litellm-dashboard/src/app/(dashboard)/vector-stores/_components/VectorStoreForm.tsx
@@ -298,7 +298,7 @@ const VectorStoreForm: React.FC<VectorStoreFormProps> = ({
                         }}
                       </SelectValue>
                     </SelectTrigger>
-                    <SelectContent alignItemWithTrigger={false}>
+                    <SelectContent>
                       {Object.entries(VectorStoreProviders).map(([providerEnum, providerDisplayName]) => (
                         <SelectItem key={providerEnum} value={vectorStoreProviderMap[providerEnum]}>
                           <Logo
diff --git a/ui/litellm-dashboard/src/app/(dashboard)/vector-stores/_components/vector_store_info.tsx b/ui/litellm-dashboard/src/app/(dashboard)/vector-stores/_components/vector_store_info.tsx
index 638122a89e7..bec15922533 100644
--- a/ui/litellm-dashboard/src/app/(dashboard)/vector-stores/_components/vector_store_info.tsx
+++ b/ui/litellm-dashboard/src/app/(dashboard)/vector-stores/_components/vector_store_info.tsx
@@ -280,7 +280,7 @@ const VectorStoreInfoView: React.FC<VectorStoreInfoViewProps> = ({
                                   }}
                                 </SelectValue>
                               </SelectTrigger>
-                              <SelectContent alignItemWithTrigger={false}>
+                              <SelectContent>
                                 {Object.entries(Providers)
                                   .filter(([providerEnum]) => providerEnum === "Bedrock")
                                   .map(([providerEnum, providerDisplayName]) => (
diff --git a/ui/litellm-dashboard/src/components/ui/select.test.tsx b/ui/litellm-dashboard/src/components/ui/select.test.tsx
index 15dd266d38c..308b5ecec3b 100644
--- a/ui/litellm-dashboard/src/components/ui/select.test.tsx
+++ b/ui/litellm-dashboard/src/components/ui/select.test.tsx
@@ -1,5 +1,6 @@
 import { describe, expect, it } from "vitest";
 import { render, screen } from "@testing-library/react";
+import userEvent from "@testing-library/user-event";
 import { Select, SelectContent, SelectItem, SelectTrigger, SelectValue } from "@/components/ui/select";
 
 const ENVIRONMENTS = [
@@ -63,3 +64,40 @@ describe("SelectValue label resolution", () => {
     expect(screen.getByTestId("trigger")).toHaveTextContent("Any environment");
   });
 });
+
+function renderOpenableSelect(contentProps?: React.ComponentProps<typeof SelectContent>) {
+  return render(
+    <Select value={null} items={ENVIRONMENTS}>
+      <SelectTrigger data-testid="trigger">
+        <SelectValue placeholder="Pick an environment" />
+      </SelectTrigger>
+      <SelectContent data-testid="content" {...contentProps}>
+        {ENVIRONMENTS.map((environment) => (
+          <SelectItem key={environment.value} value={environment.value}>
+            {environment.label}
+          </SelectItem>
+        ))}
+      </SelectContent>
+    </Select>,
+  );
+}
+
+describe("SelectContent anchoring", () => {
+  it("anchors to the edge of the trigger rather than over it by default", async () => {
+    const user = userEvent.setup();
+    renderOpenableSelect();
+
+    await user.click(screen.getByTestId("trigger"));
+
+    expect(await screen.findByTestId("content")).toHaveAttribute("data-align-trigger", "false");
+  });
+
+  it("still lets a caller opt into item-aligned anchoring", async () => {
+    const user = userEvent.setup();
+    renderOpenableSelect({ alignItemWithTrigger: true });
+
+    await user.click(screen.getByTestId("trigger"));
+
+    expect(await screen.findByTestId("content")).toHaveAttribute("data-align-trigger", "true");
+  });
+});
diff --git a/ui/litellm-dashboard/src/components/ui/select.tsx b/ui/litellm-dashboard/src/components/ui/select.tsx
index 7d009b53084..bca68fee9df 100644
--- a/ui/litellm-dashboard/src/components/ui/select.tsx
+++ b/ui/litellm-dashboard/src/components/ui/select.tsx
@@ -49,7 +49,7 @@ function SelectContent({
   sideOffset = 4,
   align = "center",
   alignOffset = 0,
-  alignItemWithTrigger = true,
+  alignItemWithTrigger = false,
   ...props
 }: SelectPrimitive.Popup.Props &
   Pick<SelectPrimitive.Positioner.Props, "align" | "alignOffset" | "side" | "sideOffset" | "alignItemWithTrigger">) {