diff --git a/ui/litellm-dashboard/src/components/Teams.test.tsx b/ui/litellm-dashboard/src/components/Teams.test.tsx
index bee35ac5c5d..1a317c6aa91 100644
--- a/ui/litellm-dashboard/src/components/Teams.test.tsx
+++ b/ui/litellm-dashboard/src/components/Teams.test.tsx
@@ -1488,3 +1488,71 @@ describe("Teams - the exact bytes the create call sends", () => {
     expect(teamCreateCall).not.toHaveBeenCalled();
   });
 });
+
+describe("Teams - create team modal keeps user selections", () => {
+  const orgs = () => [
+    { organization_id: "org-1", organization_alias: "Org One", models: [], members: [] },
+    { organization_id: "org-2", organization_alias: "Org Two", models: [], members: [] },
+  ];
+
+  beforeEach(() => {
+    vi.clearAllMocks();
+    vi.mocked(fetchAvailableModelsForTeamOrKey).mockResolvedValue(["gpt-4"]);
+    vi.mocked(fetchMCPAccessGroups).mockResolvedValue([]);
+    vi.mocked(getGuardrailsList).mockResolvedValue({ guardrails: [] });
+    mockUseOrganizations.mockReturnValue({ data: orgs() });
+  });
+
+  const openCreateModal = async () => {
+    const queryClient = createQueryClient();
+    const wrap = (children: React.ReactElement) => (
+      <NuqsTestingAdapter hasMemory>
+        <QueryClientProvider client={queryClient}>{children}</QueryClientProvider>
+      </NuqsTestingAdapter>
+    );
+    const view = render(wrap(<Teams accessToken="test-token" userID="user-123" userRole="Admin" />));
+    act(() => {
+      fireEvent.click(screen.getAllByRole("button", { name: /create team/i })[0]);
+    });
+    await waitFor(() => {
+      expect(screen.getByLabelText(/team name/i)).toBeInTheDocument();
+    });
+    return {
+      rerenderTeams: () => view.rerender(wrap(<Teams accessToken="test-token" userID="user-123" userRole="Admin" />)),
+    };
+  };
+
+  const selectOrganization = async (label: string) => {
+    const user = userEvent.setup();
+    const orgCombobox = screen.getByRole("combobox", { name: /organization/i });
+    await user.click(orgCombobox);
+    await user.click(await screen.findByText(label));
+    return orgCombobox;
+  };
+
+  it("keeps the selected organization and models when the organizations list refetches", async () => {
+    const { rerenderTeams } = await openCreateModal();
+
+    const orgCombobox = await selectOrganization("Org One");
+    fireEvent.change(screen.getByTestId("create-team-models-select"), { target: { value: "gpt-4" } });
+
+    mockUseOrganizations.mockReturnValue({ data: orgs() });
+    act(() => {
+      rerenderTeams();
+    });
+
+    expect(orgCombobox).toHaveValue("Org One");
+    expect(screen.getByTestId("create-team-models-select")).toHaveValue("gpt-4");
+  });
+
+  it("clears the selected models when the user picks a different organization", async () => {
+    await openCreateModal();
+
+    await selectOrganization("Org One");
+    fireEvent.change(screen.getByTestId("create-team-models-select"), { target: { value: "gpt-4" } });
+    expect(screen.getByTestId("create-team-models-select")).toHaveValue("gpt-4");
+
+    await selectOrganization("Org Two");
+    expect(screen.getByTestId("create-team-models-select")).toHaveValue("");
+  });
+});
diff --git a/ui/litellm-dashboard/src/components/Teams.tsx b/ui/litellm-dashboard/src/components/Teams.tsx
index e2eda4adb23..acc55d2c371 100644
--- a/ui/litellm-dashboard/src/components/Teams.tsx
+++ b/ui/litellm-dashboard/src/components/Teams.tsx
@@ -17,7 +17,7 @@ import { useZodForm } from "@/lib/forms/useZodForm";
 import { TagsInput } from "@/app/(dashboard)/guardrails/_components/content_filter/TagsInput";
 import { Tabs, TabsContent, TabsList, TabsTrigger } from "@/components/ui/tabs";
 import { ChevronDown, Plus, Users } from "lucide-react";
-import React, { useEffect, useMemo, useState } from "react";
+import React, { useEffect, useMemo, useRef, useState } from "react";
 import { z } from "zod/v4";
 import { useQuery, useQueryClient } from "@tanstack/react-query";
 import { PageHeader } from "@/components/shared/PageHeader";
@@ -264,13 +264,10 @@ const Teams: React.FC<TeamProps> = ({ accessToken, userID, userRole, premiumUser
     ? `Default: ${getBudgetDurationLabel(defaultBudgetDuration)} (${defaultBudgetDuration})`
     : "n/a";
 
-  useEffect(() => {
-    form.setValue("models", []);
-  }, [currentOrgForCreateTeam, userModels]);
-
   // Handle organization preselection when modal opens
+  const wasTeamModalVisible = useRef(false);
   useEffect(() => {
-    if (isTeamModalVisible) {
+    if (isTeamModalVisible && !wasTeamModalVisible.current) {
       const adminOrgs = getAdminOrganizations(userRole, userID, organizations);
 
       // Org admins must scope a team to an org, so with exactly one we preselect it.
@@ -284,6 +281,7 @@ const Teams: React.FC<TeamProps> = ({ accessToken, userID, userRole, premiumUser
         setCurrentOrgForCreateTeam(currentOrg);
       }
     }
+    wasTeamModalVisible.current = isTeamModalVisible;
   }, [isTeamModalVisible, isOrgAdmin, userRole, userID, organizations, currentOrg]);
 
   // Add this useEffect to fetch guardrails
@@ -686,6 +684,11 @@ const Teams: React.FC<TeamProps> = ({ accessToken, userID, userRole, premiumUser
                     const adminOrgs = getAdminOrganizations(userRole, userID, organizations);
                     const isSingleOrg = adminOrgs.length === 1;
                     const hasNoOrgs = adminOrgs.length === 0;
+                    const handleCreateTeamOrgChange = (next: string, onChange: (value: string | null) => void) => {
+                      onChange(next === "" ? null : next);
+                      setCurrentOrgForCreateTeam(adminOrgs.find((org) => org.organization_id === next) ?? null);
+                      form.setValue("models", []);
+                    };
 
                     return (
                       <>
@@ -721,12 +724,7 @@ const Teams: React.FC<TeamProps> = ({ accessToken, userID, userRole, premiumUser
                                 hasNoOrgs ? "No organizations available" : "Search or select an Organization"
                               }
                               emptyText="No organizations available"
-                              onValueChange={(next) => {
-                                onChange(next === "" ? null : next);
-                                setCurrentOrgForCreateTeam(
-                                  adminOrgs.find((org) => org.organization_id === next) ?? null,
-                                );
-                              }}
+                              onValueChange={(next) => handleCreateTeamOrgChange(next, onChange)}
                             />
                           )}
                         </FormField>