diff --git a/litellm/proxy/mcp_server/mcp_server_manager.py b/litellm/proxy/mcp_server/mcp_server_manager.py
index eb6f29b36b4..a382722e3c7 100644
--- a/litellm/proxy/mcp_server/mcp_server_manager.py
+++ b/litellm/proxy/mcp_server/mcp_server_manager.py
@@ -7903,6 +7903,9 @@ def _server_credential_occupies_authorization(server: MCPServer) -> bool:
     ``Authorization``; ``api_key`` sends it in ``X-API-Key``; ``upstream_token_header`` moves either.
     A signer-injected ``Authorization`` would replace such a credential upstream.
     """
+    if server.is_byok:
+        # A BYOK server's stored authentication_token is never sent upstream; the caller's own credential is.
+        return False
     if not server.authentication_token or server.auth_type not in _STATIC_CREDENTIAL_AUTH_TYPES:
         return False
     default_slot: Final = "X-API-Key" if server.auth_type == MCPAuth.api_key else "Authorization"
diff --git a/tests/unit/proxy/_experimental/mcp_server/test_mcp_jwt_signer_server_credential.py b/tests/unit/proxy/_experimental/mcp_server/test_mcp_jwt_signer_server_credential.py
index b7b7e19e149..0132706da38 100644
--- a/tests/unit/proxy/_experimental/mcp_server/test_mcp_jwt_signer_server_credential.py
+++ b/tests/unit/proxy/_experimental/mcp_server/test_mcp_jwt_signer_server_credential.py
@@ -163,3 +163,9 @@ async def test_tools_call_keeps_hook_authorization_when_server_key_rides_x_api_k
     headers = await _call_tool_and_capture_extra_headers(_server(MCPAuth.api_key), {"Authorization": "Bearer hook-jwt"})
 
     assert headers.get("Authorization") == "Bearer hook-jwt"
+
+
+def test_byok_server_stored_secret_never_occupies_authorization():
+    server = _server(MCPAuth.bearer_token).model_copy(update={"is_byok": True})
+
+    assert _server_credential_occupies_authorization(server) is False