diff --git a/litellm/proxy/proxy_server.py b/litellm/proxy/proxy_server.py
index 4d7ba3d451d..d3396b2fbe1 100644
--- a/litellm/proxy/proxy_server.py
+++ b/litellm/proxy/proxy_server.py
@@ -8343,10 +8343,9 @@ async def model_list(
         if hidden_names:
             all_models = [m for m in all_models if m not in hidden_names]
 
-        # Opt-in (default off): surface the public name for team-scoped rows.
-        # Off by default so /v1/models model ids stay backward-compatible for
-        # callers that scripted against the internal routing name.
-        if general_settings.get("use_team_public_model_name", False):
+        # Surface the public name for team-scoped rows by default. Operators
+        # that need legacy internal routing keys can explicitly disable this.
+        if general_settings.get("use_team_public_model_name", True):
             all_models = _translate_model_names_for_listing(all_models, llm_router)
 
         # Build response data with all proxy models
@@ -8386,10 +8385,9 @@ async def model_list(
     if hidden_names:
         all_models = [m for m in all_models if m not in hidden_names]
 
-    # Opt-in (default off): surface the public name for team-scoped rows.
-    # Off by default so /v1/models model ids stay backward-compatible for
-    # callers that scripted against the internal routing name.
-    if general_settings.get("use_team_public_model_name", False):
+    # Surface the public name for team-scoped rows by default. Operators that
+    # need legacy internal routing keys can explicitly disable this.
+    if general_settings.get("use_team_public_model_name", True):
         all_models = _translate_model_names_for_listing(all_models, llm_router)
 
     # Build response data
diff --git a/tests/test_litellm/proxy/proxy_server/test_team_model_name_translation.py b/tests/test_litellm/proxy/proxy_server/test_team_model_name_translation.py
index 4165664e0e4..f8532fecafa 100644
--- a/tests/test_litellm/proxy/proxy_server/test_team_model_name_translation.py
+++ b/tests/test_litellm/proxy/proxy_server/test_team_model_name_translation.py
@@ -623,8 +623,8 @@ async def test_v1_models_translates_team_model_for_access_group_key(monkeypatch)
 
     monkeypatch.setattr(ps, "llm_router", router)
     monkeypatch.setattr(ps, "user_model", None)
-    # opt-in flag ON -> listing surfaces public names
-    monkeypatch.setattr(ps, "general_settings", {"use_team_public_model_name": True})
+    # Default behavior: listing surfaces public names.
+    monkeypatch.setattr(ps, "general_settings", {})
 
     # virtual key granted access via the access group (no team membership)
     key = UserAPIKeyAuth(
@@ -638,11 +638,12 @@ async def test_v1_models_translates_team_model_for_access_group_key(monkeypatch)
 
 
 @pytest.mark.asyncio
-async def test_v1_models_keeps_internal_names_when_flag_off(monkeypatch):
-    """Default (flag off): /v1/models stays backward-compatible and lists the
-    internal routing name, so consumers that scripted against those ids are not
-    broken. Translation is opt-in via
-    general_settings['use_team_public_model_name'].
+async def test_v1_models_keeps_internal_names_when_public_name_flag_disabled(
+    monkeypatch,
+):
+    """Compatibility override: /v1/models can still list the internal routing
+    name for consumers that scripted against those ids. Translation is enabled
+    by default and disabled via general_settings['use_team_public_model_name'].
     """
     team_dep = {
         "model_name": "model_name_teamX_uuid9",
@@ -663,7 +664,7 @@ async def test_v1_models_keeps_internal_names_when_flag_off(monkeypatch):
 
     monkeypatch.setattr(ps, "llm_router", router)
     monkeypatch.setattr(ps, "user_model", None)
-    monkeypatch.setattr(ps, "general_settings", {})  # flag absent -> default off
+    monkeypatch.setattr(ps, "general_settings", {"use_team_public_model_name": False})
 
     key = UserAPIKeyAuth(
         user_id="u", api_key="sk-test", models=["grp-a"], team_models=[]