diff --git a/ui/litellm-dashboard/src/components/mcp_tools/mcp_server_edit.test.tsx b/ui/litellm-dashboard/src/components/mcp_tools/mcp_server_edit.test.tsx
index f071e247466..0579a3208d1 100644
--- a/ui/litellm-dashboard/src/components/mcp_tools/mcp_server_edit.test.tsx
+++ b/ui/litellm-dashboard/src/components/mcp_tools/mcp_server_edit.test.tsx
@@ -19,14 +19,20 @@ vi.mock("../molecules/notifications_manager", () => ({
   },
 }));
 
-const mockOauth: { tokenResponse: any } = { tokenResponse: null };
+const mockOauth: {
+  tokenResponse: any;
+  getTemporaryPayload: (() => Record<string, unknown> | null) | null;
+} = { tokenResponse: null, getTemporaryPayload: null };
 vi.mock("@/hooks/useMcpOAuthFlow", () => ({
-  useMcpOAuthFlow: () => ({
-    startOAuthFlow: vi.fn(),
-    status: "idle",
-    error: null,
-    tokenResponse: mockOauth.tokenResponse,
-  }),
+  useMcpOAuthFlow: (opts: { getTemporaryPayload?: () => Record<string, unknown> | null }) => {
+    mockOauth.getTemporaryPayload = opts?.getTemporaryPayload ?? null;
+    return {
+      startOAuthFlow: vi.fn(),
+      status: "idle",
+      error: null,
+      tokenResponse: mockOauth.tokenResponse,
+    };
+  },
 }));
 
 vi.mock("./mcp_server_cost_config", () => ({
@@ -344,6 +350,30 @@ describe("MCPServerEdit (true passthrough warning)", () => {
       screen.queryByText("True Passthrough disables LiteLLM authentication for this server"),
     ).not.toBeInTheDocument();
   });
+
+  it("browser-authorize temp payload uses the selected auth_type, not the stored one", async () => {
+    // Stored server is oauth2; the admin switches the dropdown to true_passthrough before saving.
+    // The temp OAuth-relay payload must reflect the selection so the exchange is treated as
+    // browser-held (no DB persistence), matching onTokenReceived and the create form.
+    render(
+      <MCPServerEdit
+        mcpServer={{ ...interactiveOAuthServer, auth_type: "oauth2" }}
+        accessToken="access-token"
+        onCancel={vi.fn()}
+        onSuccess={vi.fn()}
+        availableAccessGroups={[]}
+      />,
+    );
+
+    await selectAntOption("Authentication", "True Passthrough (no LiteLLM auth)");
+
+    await waitFor(() => {
+      expect(mockOauth.getTemporaryPayload).toBeTruthy();
+    });
+    const payload = mockOauth.getTemporaryPayload!();
+    expect(payload).toBeTruthy();
+    expect(payload?.auth_type).toBe("true_passthrough");
+  });
 });
 
 describe("MCPServerEdit (auth type switch)", () => {
diff --git a/ui/litellm-dashboard/src/components/mcp_tools/mcp_server_edit.tsx b/ui/litellm-dashboard/src/components/mcp_tools/mcp_server_edit.tsx
index 7d9316e1baa..0a00f05ab53 100644
--- a/ui/litellm-dashboard/src/components/mcp_tools/mcp_server_edit.tsx
+++ b/ui/litellm-dashboard/src/components/mcp_tools/mcp_server_edit.tsx
@@ -164,8 +164,8 @@ const MCPServerEdit: React.FC<MCPServerEditProps> = ({
         url,
         transport,
         auth_type:
-          mcpServer.auth_type === AUTH_TYPE.TRUE_PASSTHROUGH || mcpServer.auth_type === AUTH_TYPE.OAUTH_DELEGATE
-            ? mcpServer.auth_type
+          values.auth_type === AUTH_TYPE.TRUE_PASSTHROUGH || values.auth_type === AUTH_TYPE.OAUTH_DELEGATE
+            ? values.auth_type
             : AUTH_TYPE.OAUTH2,
         credentials: values.credentials,
         mcp_access_groups: values.mcp_access_groups || mcpServer.mcp_access_groups,