diff --git a/tests/test_litellm/proxy/management_endpoints/test_ui_sso.py b/tests/test_litellm/proxy/management_endpoints/test_ui_sso.py
index eecfcaa035b..c95adc73ed1 100644
--- a/tests/test_litellm/proxy/management_endpoints/test_ui_sso.py
+++ b/tests/test_litellm/proxy/management_endpoints/test_ui_sso.py
@@ -2150,6 +2150,26 @@ class TestCLIKeyRegenerationFlow:
                 result=mock_result,
             )
 
+    @pytest.mark.asyncio
+    async def test_auth_callback_raises_on_oauth_error(self):
+        """Test that auth_callback returns a 401 when the provider redirects with an OAuth error"""
+        from litellm.proxy.management_endpoints.ui_sso import auth_callback
+
+        mock_request = MagicMock(spec=Request)
+        mock_request.query_params = {
+            "error": "access_denied",
+            "error_description": "User denied consent",
+        }
+
+        with pytest.raises(HTTPException) as exc_info:
+            await auth_callback(request=mock_request, state="test-state")
+
+        assert exc_info.value.status_code == 401
+        assert (
+            exc_info.value.detail
+            == "OAuth error: access_denied, error_description: User denied consent"
+        )
+
     def test_get_redirect_url_does_not_include_existing_key_in_url(self):
         """Test that redirect URL generation does NOT include existing_key in URL (uses state parameter instead)"""
         from litellm.proxy.management_endpoints.ui_sso import SSOAuthenticationHandler