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 042f02251b..e70548d6a9 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
@@ -17,15 +17,23 @@ vi.mock("@/utils/mcpTokenStore", () => ({
 }));
 
 // Mutable holder so individual tests can simulate "Authorize & Fetch" having
-// produced a token before submit.
-const oauthHook = vi.hoisted(() => ({ tokenResponse: null as Record<string, unknown> | null }));
+// produced a token before submit, and inspect the reset wiring.
+const oauthHook = vi.hoisted(() => ({
+  tokenResponse: null as Record<string, unknown> | null,
+  reset: vi.fn(),
+  onTokenReceived: null as ((token: Record<string, unknown> | null) => void) | null,
+}));
 vi.mock("@/hooks/useMcpOAuthFlow", () => ({
-  useMcpOAuthFlow: () => ({
-    startOAuthFlow: vi.fn(),
-    status: "idle",
-    error: null,
-    tokenResponse: oauthHook.tokenResponse,
-  }),
+  useMcpOAuthFlow: (opts: { onTokenReceived: (token: Record<string, unknown> | null) => void }) => {
+    oauthHook.onTokenReceived = opts.onTokenReceived;
+    return {
+      startOAuthFlow: vi.fn(),
+      status: "idle",
+      error: null,
+      tokenResponse: oauthHook.tokenResponse,
+      reset: oauthHook.reset,
+    };
+  },
 }));
 
 vi.mock("./mcp_server_cost_config", () => ({
@@ -59,7 +67,9 @@ vi.mock("./mcp_tool_configuration", () => ({
 }));
 
 vi.mock("./mcp_connection_status", () => ({
-  default: () => <div data-testid="mcp-connection-status" />,
+  default: ({ tools }: { tools?: any[] }) => (
+    <div data-testid="mcp-connection-status" data-tool-count={tools?.length ?? 0} />
+  ),
 }));
 
 vi.mock("./StdioConfiguration", () => ({
@@ -121,6 +131,7 @@ describe("CreateMCPServer", () => {
   beforeEach(() => {
     vi.clearAllMocks();
     oauthHook.tokenResponse = null;
+    oauthHook.onTokenReceived = null;
   });
 
   it("should render the modal with title when visible", () => {
@@ -614,6 +625,100 @@ describe("CreateMCPServer", () => {
 
       expect(defaultProps.setModalVisible).toHaveBeenCalledWith(false);
     });
+
+    it("does not leak a previous server's OAuth token into the next add-server session", async () => {
+      const usedToken = (token: string) =>
+        vi.mocked(networking.testMCPToolsListRequest).mock.calls.some((call) => call[2] === token);
+
+      const { rerender } = render(<CreateMCPServer {...defaultProps} />);
+
+      await selectAntOption("Transport Type", "Streamable HTTP");
+      await waitFor(() => {
+        expect(screen.getByPlaceholderText("https://your-mcp-server.com")).toBeInTheDocument();
+      });
+      await selectAntOption("Authentication", "OAuth");
+      await waitFor(() => {
+        expect(screen.getByText("OAuth Flow Type")).toBeInTheDocument();
+      });
+
+      const urlInput = screen.getByPlaceholderText("https://your-mcp-server.com");
+      await act(async () => {
+        fireEvent.change(urlInput, { target: { value: "https://server-a.example.com/mcp" } });
+      });
+
+      // Simulate "Authorize & Fetch Token" completing for server A.
+      await act(async () => {
+        oauthHook.onTokenReceived?.({ access_token: "stale-token-A", expires_in: 3600 });
+      });
+
+      // Precondition: the freshly fetched token drives the tool preview for server A.
+      await waitFor(() => {
+        expect(usedToken("stale-token-A")).toBe(true);
+      });
+
+      // Parent hides the modal (Cancel / successful create both flip this prop).
+      rerender(<CreateMCPServer {...defaultProps} isModalVisible={false} />);
+
+      // The OAuth flow state (source of the "Token fetched" badge) is reset on close.
+      expect(oauthHook.reset).toHaveBeenCalled();
+
+      vi.mocked(networking.testMCPToolsListRequest).mockClear();
+
+      // Reopen for a brand-new server and enter a different URL without re-authorizing.
+      rerender(<CreateMCPServer {...defaultProps} isModalVisible={true} />);
+      const reopenedUrlInput = screen.getByPlaceholderText("https://your-mcp-server.com");
+      await act(async () => {
+        fireEvent.change(reopenedUrlInput, { target: { value: "https://server-b.example.com/mcp" } });
+      });
+
+      // The previous server's token must never be replayed for the new session.
+      expect(usedToken("stale-token-A")).toBe(false);
+    });
+
+    it("clears the tool list and form fields when a parent dismisses the modal", async () => {
+      vi.mocked(networking.testMCPToolsListRequest).mockResolvedValue({
+        tools: [{ name: "tool_a" }],
+        error: null,
+      });
+      const toolCount = () => screen.getByTestId("mcp-connection-status").getAttribute("data-tool-count");
+
+      const { rerender } = render(<CreateMCPServer {...defaultProps} />);
+
+      await selectAntOption("Transport Type", "Streamable HTTP");
+      await waitFor(() => {
+        expect(screen.getByPlaceholderText("https://your-mcp-server.com")).toBeInTheDocument();
+      });
+      await selectAntOption("Authentication", "OAuth");
+      await waitFor(() => {
+        expect(screen.getByText("OAuth Flow Type")).toBeInTheDocument();
+      });
+
+      const urlInput = screen.getByPlaceholderText("https://your-mcp-server.com");
+      await act(async () => {
+        fireEvent.change(urlInput, { target: { value: "https://server-a.example.com/mcp" } });
+      });
+      await act(async () => {
+        oauthHook.onTokenReceived?.({ access_token: "stale-token-A", expires_in: 3600 });
+      });
+
+      // Precondition: a tool list is shown for server A.
+      await waitFor(() => {
+        expect(toolCount()).toBe("1");
+      });
+
+      // Parent dismisses the modal without routing through Cancel or create.
+      rerender(<CreateMCPServer {...defaultProps} isModalVisible={false} />);
+
+      // Stale tools are cleared even though neither handler ran.
+      await waitFor(() => {
+        expect(toolCount()).toBe("0");
+      });
+
+      // Reopening starts clean: the URL the prior server left in the Ant form store is gone.
+      rerender(<CreateMCPServer {...defaultProps} isModalVisible={true} />);
+      const reopenedUrlInput = screen.getByPlaceholderText("https://your-mcp-server.com") as HTMLInputElement;
+      expect(reopenedUrlInput.value).toBe("");
+    });
   });
 
   describe("when stdio transport is selected", () => {
diff --git a/ui/litellm-dashboard/src/components/mcp_tools/create_mcp_server.tsx b/ui/litellm-dashboard/src/components/mcp_tools/create_mcp_server.tsx
index 28c38c459a..ddcc9f65d3 100644
--- a/ui/litellm-dashboard/src/components/mcp_tools/create_mcp_server.tsx
+++ b/ui/litellm-dashboard/src/components/mcp_tools/create_mcp_server.tsx
@@ -134,6 +134,7 @@ const CreateMCPServer: React.FC<CreateMCPServerProps> = ({
     status: oauthStatus,
     error: oauthError,
     tokenResponse: oauthTokenResponse,
+    reset: resetOAuthFlow,
   } = useMcpOAuthFlow({
     accessToken,
     getCredentials: () => form.getFieldValue("credentials"),
@@ -554,12 +555,19 @@ const CreateMCPServer: React.FC<CreateMCPServerProps> = ({
     }
   }, [formValues.server_name]);
 
-  // Clear formValues when modal closes to reset child components
+  // Clear form, tools, and OAuth state when the modal closes so a previous server's
+  // authorization, credentials, or tool list never bleed into the next "Add New MCP
+  // Server" session, including when a parent dismisses the modal without routing
+  // through handleCancel or handleCreate.
   React.useEffect(() => {
     if (!isModalVisible) {
+      form.resetFields();
       setFormValues({});
+      setOauthAccessToken(null);
+      clearTools();
+      resetOAuthFlow();
     }
-  }, [isModalVisible]);
+  }, [isModalVisible, form, clearTools, resetOAuthFlow]);
 
   const isAdmin = isAdminRole(userRole);
 
diff --git a/ui/litellm-dashboard/src/hooks/useMcpOAuthFlow.test.tsx b/ui/litellm-dashboard/src/hooks/useMcpOAuthFlow.test.tsx
new file mode 100644
index 0000000000..d8dce3c29e
--- /dev/null
+++ b/ui/litellm-dashboard/src/hooks/useMcpOAuthFlow.test.tsx
@@ -0,0 +1,117 @@
+import { act, renderHook, waitFor } from "@testing-library/react";
+import { beforeEach, describe, expect, it, vi } from "vitest";
+import * as networking from "@/components/networking";
+import { setSecureItem } from "@/utils/secureStorage";
+import { useMcpOAuthFlow } from "./useMcpOAuthFlow";
+
+vi.mock("@/components/networking", () => ({
+  exchangeMcpOAuthToken: vi.fn(),
+  cacheTemporaryMcpServer: vi.fn(),
+  registerMcpOAuthClient: vi.fn(),
+  buildMcpOAuthAuthorizeUrl: vi.fn(),
+  getProxyBaseUrl: vi.fn(() => ""),
+  serverRootPath: "",
+}));
+
+vi.mock("@/components/molecules/notifications_manager", () => ({
+  default: { success: vi.fn(), error: vi.fn() },
+}));
+
+const FLOW_STATE_KEY = "litellm-mcp-oauth-flow-state";
+const RESULT_KEY = "litellm-mcp-oauth-result";
+
+/** Seed the redirect result (the code returned by the IdP callback). */
+function seedResult(code: string) {
+  setSecureItem(RESULT_KEY, JSON.stringify({ state: "state-1", code }));
+}
+
+/** Seed the flow state stored before the redirect. */
+function seedFlowState() {
+  setSecureItem(
+    FLOW_STATE_KEY,
+    JSON.stringify({
+      state: "state-1",
+      codeVerifier: "verifier-1",
+      serverId: "server-1",
+      clientId: "client-1",
+      redirectUri: "https://app.example.com/ui/mcp/oauth/callback",
+      flowSource: "create",
+    }),
+  );
+}
+
+/** Seed storage so the hook's on-mount resume flow exchanges a code for a token. */
+function seedCompletedRedirect() {
+  seedResult("code-1");
+  seedFlowState();
+}
+
+function renderFlow(onTokenReceived = vi.fn()) {
+  return renderHook(
+    ({ onTokenReceived: cb }: { onTokenReceived: (t: any) => void }) =>
+      useMcpOAuthFlow({
+        accessToken: "admin-token",
+        getCredentials: () => ({}),
+        getTemporaryPayload: () => ({ url: "https://server-1.example.com/mcp", transport: "http" }),
+        onTokenReceived: cb,
+        flowSource: "create",
+      }),
+    { initialProps: { onTokenReceived } },
+  );
+}
+
+describe("useMcpOAuthFlow reset", () => {
+  beforeEach(() => {
+    vi.clearAllMocks();
+    window.sessionStorage.clear();
+    window.localStorage.clear();
+  });
+
+  it("clears a successfully fetched token so it cannot leak into the next session", async () => {
+    const token = { access_token: "tok-123", expires_in: 3600 };
+    vi.mocked(networking.exchangeMcpOAuthToken).mockResolvedValue(token);
+    seedCompletedRedirect();
+
+    const onTokenReceived = vi.fn();
+    const { result } = renderFlow(onTokenReceived);
+
+    await waitFor(() => expect(result.current.status).toBe("success"));
+    expect(result.current.tokenResponse).toEqual(token);
+    expect(onTokenReceived).toHaveBeenCalledWith(token);
+
+    act(() => {
+      result.current.reset();
+    });
+
+    expect(result.current.status).toBe("idle");
+    expect(result.current.tokenResponse).toBeNull();
+    expect(result.current.error).toBeNull();
+  });
+
+  it("clears the in-flight guard so a callback after a mid-exchange close is not swallowed", async () => {
+    // First exchange hangs, mimicking the modal being closed while the token
+    // endpoint is still in flight. processingRef is left true at that point.
+    vi.mocked(networking.exchangeMcpOAuthToken).mockReturnValueOnce(new Promise<any>(() => {}));
+    seedFlowState();
+    seedResult("code-1");
+
+    const onTokenReceived1 = vi.fn();
+    const { result, rerender } = renderFlow(onTokenReceived1);
+
+    await waitFor(() => expect(result.current.status).toBe("exchanging"));
+
+    act(() => {
+      result.current.reset();
+    });
+
+    // The reopened modal receives a fresh callback; it must be processed, not
+    // dropped by a stale in-flight guard.
+    const token = { access_token: "tok-2" };
+    vi.mocked(networking.exchangeMcpOAuthToken).mockResolvedValueOnce(token);
+    seedResult("code-2");
+    const onTokenReceived2 = vi.fn();
+    rerender({ onTokenReceived: onTokenReceived2 });
+
+    await waitFor(() => expect(onTokenReceived2).toHaveBeenCalledWith(token));
+  });
+});
diff --git a/ui/litellm-dashboard/src/hooks/useMcpOAuthFlow.tsx b/ui/litellm-dashboard/src/hooks/useMcpOAuthFlow.tsx
index c4561a9f53..ee253577d9 100644
--- a/ui/litellm-dashboard/src/hooks/useMcpOAuthFlow.tsx
+++ b/ui/litellm-dashboard/src/hooks/useMcpOAuthFlow.tsx
@@ -40,6 +40,7 @@ interface UseMcpOAuthFlowResult {
   status: McpOAuthStatus;
   error: string | null;
   tokenResponse: Record<string, any> | null;
+  reset: () => void;
 }
 
 export const useMcpOAuthFlow = ({
@@ -336,10 +337,18 @@ export const useMcpOAuthFlow = ({
     resumeOAuthFlow();
   }, [resumeOAuthFlow]);
 
+  const reset = useCallback(() => {
+    setStatus("idle");
+    setError(null);
+    setTokenResponse(null);
+    processingRef.current = false;
+  }, []);
+
   return {
     startOAuthFlow,
     status,
     error,
     tokenResponse,
+    reset,
   };
 };
diff --git a/ui/litellm-dashboard/src/hooks/useTestMCPConnection.tsx b/ui/litellm-dashboard/src/hooks/useTestMCPConnection.tsx
index 3dcd6be888..b160c90224 100644
--- a/ui/litellm-dashboard/src/hooks/useTestMCPConnection.tsx
+++ b/ui/litellm-dashboard/src/hooks/useTestMCPConnection.tsx
@@ -1,4 +1,4 @@
-import { useState, useEffect } from "react";
+import { useState, useEffect, useCallback } from "react";
 import { testMCPToolsListRequest } from "../components/networking";
 import { AUTH_TYPE, OAUTH_FLOW, TRANSPORT } from "@/components/mcp_tools/types";
 
@@ -177,12 +177,12 @@ export const useTestMCPConnection = ({
     }
   };
 
-  const clearTools = () => {
+  const clearTools = useCallback(() => {
     setTools([]);
     setToolsError(null);
     setToolsErrorStackTrace(null);
     setHasShownSuccessMessage(false);
-  };
+  }, []);
 
   // Auto-fetch tools when form values change and required fields are available
   useEffect(() => {