diff --git a/ui/litellm-dashboard/src/components/mcp_tools/ByokFields.tsx b/ui/litellm-dashboard/src/components/mcp_tools/ByokFields.tsx
index 17f40645b2a..77536351ec3 100644
--- a/ui/litellm-dashboard/src/components/mcp_tools/ByokFields.tsx
+++ b/ui/litellm-dashboard/src/components/mcp_tools/ByokFields.tsx
@@ -20,6 +20,7 @@ const ByokFields: React.FC<ByokFieldsProps> = ({ form }) => {
   const isByok = Form.useWatch("is_byok", form);
   const authType = Form.useWatch("auth_type", form) as string | undefined;
   const formatHint = authType ? BYOK_AUTH_FORMAT_HINT[authType] : undefined;
+  const isBasicAuth = authType === AUTH_TYPE.BASIC;
 
   return (
     <>
@@ -45,6 +46,14 @@ const ByokFields: React.FC<ByokFieldsProps> = ({ form }) => {
               <InfoCircleOutlined className="mt-0.5 flex-shrink-0" />
               <span>
                 User keys will be sent as: <code className="font-mono bg-blue-100 px-1 rounded">{formatHint}</code>
+                {isBasicAuth && (
+                  <>
+                    {" "}
+                    Each user&apos;s key must be a base64-encoded{" "}
+                    <code className="font-mono bg-blue-100 px-1 rounded">user:password</code> string, or a raw token if
+                    the server accepts one.
+                  </>
+                )}
               </span>
             </div>
           )}
diff --git a/ui/litellm-dashboard/src/components/mcp_tools/create_mcp_server.test.tsx b/ui/litellm-dashboard/src/components/mcp_tools/create_mcp_server.test.tsx
index 581cbed8c7f..18217f7c968 100644
--- a/ui/litellm-dashboard/src/components/mcp_tools/create_mcp_server.test.tsx
+++ b/ui/litellm-dashboard/src/components/mcp_tools/create_mcp_server.test.tsx
@@ -868,6 +868,27 @@ describe("CreateMCPServer BYOK toggle", () => {
     expect(payload.credentials).toBeUndefined();
   });
 
+  it("shows a base64 clarification in the BYOK hint for Basic auth only", async () => {
+    await selectHttpTransport();
+    await selectAntOption("Authentication", "Basic Auth");
+    await waitFor(() => expect(screen.getByText(BYOK_LABEL)).toBeInTheDocument());
+    await act(async () => {
+      fireEvent.click(getByokSwitch()!);
+    });
+    await waitFor(() => expect(screen.getByText(/base64-encoded/)).toBeInTheDocument());
+
+    cleanup();
+
+    await selectHttpTransport();
+    await selectAntOption("Authentication", "Bearer Token");
+    await waitFor(() => expect(screen.getByText(BYOK_LABEL)).toBeInTheDocument());
+    await act(async () => {
+      fireEvent.click(getByokSwitch()!);
+    });
+    await waitFor(() => expect(screen.getByText("Access Description")).toBeInTheDocument());
+    expect(screen.queryByText(/base64-encoded/)).not.toBeInTheDocument();
+  });
+
   it("blocks submit when the API Key Help URL is not a valid URL", async () => {
     await selectHttpTransport();