diff --git a/litellm/proxy/_experimental/mcp_server/auth/user_api_key_auth_mcp.py b/litellm/proxy/_experimental/mcp_server/auth/user_api_key_auth_mcp.py
index e2204ea7a21..5992d3e86de 100644
--- a/litellm/proxy/_experimental/mcp_server/auth/user_api_key_auth_mcp.py
+++ b/litellm/proxy/_experimental/mcp_server/auth/user_api_key_auth_mcp.py
@@ -207,7 +207,9 @@ class MCPRequestHandler:
         elif (
             not litellm_api_key
             and MCPRequestHandler._target_servers_delegate_auth_to_upstream(  # noqa: E501
-                path=request.url.path, mcp_servers=mcp_servers
+                path=request.url.path,
+                mcp_servers=mcp_servers,
+                client_ip=IPAddressUtils.get_mcp_client_ip(request),
             )
         ):
             # Operator opted this oauth2 server into upstream-delegated auth
@@ -407,7 +409,7 @@ class MCPRequestHandler:
 
     @staticmethod
     def _target_servers_delegate_auth_to_upstream(
-        path: str, mcp_servers: Optional[List[str]]
+        path: str, mcp_servers: Optional[List[str]], client_ip: Optional[str]
     ) -> bool:
         """
         True only when EVERY MCP server the request targets is configured for
@@ -437,7 +439,9 @@ class MCPRequestHandler:
             return False
 
         for name in target_names:
-            server = global_mcp_server_manager.get_mcp_server_by_name(name)
+            server = global_mcp_server_manager.get_mcp_server_by_name(
+                name, client_ip=client_ip
+            )
             if server is None or server.auth_type != MCPAuth.oauth2:
                 return False
             # `is True` is intentional: opt-in must be an explicit boolean
diff --git a/litellm/proxy/_experimental/mcp_server/exceptions.py b/litellm/proxy/_experimental/mcp_server/exceptions.py
index 675f63113d6..cb1df1e92d6 100644
--- a/litellm/proxy/_experimental/mcp_server/exceptions.py
+++ b/litellm/proxy/_experimental/mcp_server/exceptions.py
@@ -2,6 +2,8 @@
 
 from typing import Optional
 
+from fastapi import HTTPException
+
 
 class MCPUpstreamAuthError(Exception):
     """Raised when an upstream MCP server returns an authentication failure
@@ -25,3 +27,19 @@ class MCPUpstreamAuthError(Exception):
         self.www_authenticate = www_authenticate
         self.server_name = server_name
         super().__init__(f"Upstream MCP server {server_name!r} returned {status_code}")
+
+    def to_http_exception(self) -> HTTPException:
+        """Convert this upstream-auth error into an ``HTTPException`` that
+        preserves the upstream status code and any ``WWW-Authenticate``
+        challenge, so standards-compliant MCP clients can trigger the
+        upstream OAuth flow.
+        """
+        return HTTPException(
+            status_code=self.status_code,
+            detail="Unauthorized",
+            headers=(
+                {"www-authenticate": self.www_authenticate}
+                if self.www_authenticate
+                else None
+            ),
+        )
diff --git a/litellm/proxy/_experimental/mcp_server/rest_endpoints.py b/litellm/proxy/_experimental/mcp_server/rest_endpoints.py
index b6bd990a2e5..0c318fceaf4 100644
--- a/litellm/proxy/_experimental/mcp_server/rest_endpoints.py
+++ b/litellm/proxy/_experimental/mcp_server/rest_endpoints.py
@@ -445,15 +445,7 @@ if MCP_AVAILABLE:
         except MCPUpstreamAuthError as e:
             # Pass-through server returned 401 — surface it to the client so
             # standards-compliant MCP clients trigger the upstream OAuth flow.
-            raise HTTPException(
-                status_code=e.status_code,
-                detail="Unauthorized",
-                headers=(
-                    {"www-authenticate": e.www_authenticate}
-                    if e.www_authenticate
-                    else None
-                ),
-            )
+            raise e.to_http_exception()
         except Exception as e:
             verbose_logger.exception(f"Error getting tools from {server.name}: {e}")
             return {
@@ -546,15 +538,7 @@ if MCP_AVAILABLE:
         except MCPUpstreamAuthError as e:
             # Pass-through server returned 401 — surface it to the client so
             # standards-compliant MCP clients trigger the upstream OAuth flow.
-            raise HTTPException(
-                status_code=e.status_code,
-                detail="Unauthorized",
-                headers=(
-                    {"www-authenticate": e.www_authenticate}
-                    if e.www_authenticate
-                    else None
-                ),
-            )
+            raise e.to_http_exception()
         except Exception as e:
             verbose_logger.exception(f"Error getting tools from {server.name}: {e}")
             return {
diff --git a/litellm/proxy/_experimental/mcp_server/server.py b/litellm/proxy/_experimental/mcp_server/server.py
index 071c6f35ad3..385ddee5941 100644
--- a/litellm/proxy/_experimental/mcp_server/server.py
+++ b/litellm/proxy/_experimental/mcp_server/server.py
@@ -3183,15 +3183,7 @@ if MCP_AVAILABLE:
         except MCPUpstreamAuthError as e:
             # Pass-through server returned 401 — surface it to the client so
             # standards-compliant MCP clients trigger the upstream OAuth flow.
-            raise HTTPException(
-                status_code=e.status_code,
-                detail="Unauthorized",
-                headers=(
-                    {"www-authenticate": e.www_authenticate}
-                    if e.www_authenticate
-                    else None
-                ),
-            )
+            raise e.to_http_exception()
         except HTTPException:
             # Re-raise HTTP exceptions to preserve status codes and details
             raise
@@ -3275,15 +3267,7 @@ if MCP_AVAILABLE:
         except MCPUpstreamAuthError as e:
             # Pass-through server returned 401 — surface it to the client so
             # standards-compliant MCP clients trigger the upstream OAuth flow.
-            raise HTTPException(
-                status_code=e.status_code,
-                detail="Unauthorized",
-                headers=(
-                    {"www-authenticate": e.www_authenticate}
-                    if e.www_authenticate
-                    else None
-                ),
-            )
+            raise e.to_http_exception()
         except HTTPException:
             # Re-raise HTTP exceptions to preserve status codes and details
             # (e.g. 401 + WWW-Authenticate challenges from OAuth pass-through).