diff --git a/tests/test_team.py b/tests/test_team.py
index 06a2e7a3648b..cec090536dc4 100644
--- a/tests/test_team.py
+++ b/tests/test_team.py
@@ -249,7 +249,7 @@ async def new_team(session, i, user_id=None, member_list=None, model_aliases=Non
     headers = {"Authorization": "Bearer sk-1234", "Content-Type": "application/json"}
     data = {"team_alias": "my-new-team"}
     if user_id is not None:
-        data["members_with_roles"] = [{"role": "user", "user_id": user_id}]
+        data["members_with_roles"] = [{"role": "user", "user_id": user_id}] # type: ignore
     elif member_list is not None:
         data["members_with_roles"] = member_list
 
@@ -342,7 +342,7 @@ async def test_team_new():
     """
     user_id = f"{uuid.uuid4()}"
     async with aiohttp.ClientSession() as session:
-        new_user(session=session, i=0, user_id=user_id)
+        await new_user(session=session, i=0, user_id=user_id)
         tasks = [new_team(session, i, user_id=user_id) for i in range(1, 11)]
         await asyncio.gather(*tasks)
 
@@ -473,7 +473,7 @@ async def test_team_update_sc_2():
             if (
                 k == "members_with_roles"
             ):  # assert 1 more member (role: "user", user_email: $user_email)
-                len(new_team_data["data"][k]) == len(team_data[k]) + 1
+                assert len(new_team_data["data"][k]) == len(team_data[k]) + 1
             elif (
                 k == "created_at"
                 or k == "updated_at"
@@ -608,16 +608,24 @@ async def test_member_delete(dimension):
         team_data = await new_team(session=session, i=0, member_list=member_list)
 
         user_in_team = False
-        for member in team_data["members_with_roles"]:
-            if dimension == "user_id" and member["user_id"] == normal_user:
-                user_in_team = True
-            elif (
-                dimension == "user_email" and member["user_email"] == normal_user_email
-            ):
-                user_in_team = True
+        updated_team_data = None
+        if dimension == "user_id":
+            updated_team_data = await delete_member(
+                session=session, i=0, team_id=team_data["team_id"], user_id=normal_user
+            )
+        elif dimension == "user_email":
+            updated_team_data = await delete_member(
+                session=session,
+                i=0,
+                team_id=team_data["team_id"],
+                user_email=normal_user_email,
+            )
+        
+        if updated_team_data is None:
+            pytest.fail(f"Failed to delete member for dimension: {dimension}")
 
         assert (
-            user_in_team is True
+            user_in_team is False
         ), "User not in team. Team list={}, User details - id={}, email={}. Dimension={}".format(
             team_data["members_with_roles"], normal_user, normal_user_email, dimension
         )
@@ -735,3 +743,178 @@ async def test_users_in_team_budget():
             ]
             == 0.0000001
         )
+
+
+@pytest.mark.asyncio
+async def test_team_creation_models_persist():
+    """
+    Test that models selected during team creation are preserved and not reset.
+    
+    This test verifies the fix for the bug where models would get reset 
+    during the team creation process due to useEffect callbacks in the UI.
+    
+    Bug: When adding models in the create team modal, the models get reset
+    Fix: Remove automatic form.setFieldValue("models", []) in useEffect
+    """
+    async with aiohttp.ClientSession() as session:
+        team_alias = f"test-models-persist-{uuid.uuid4()}"
+        test_models = ["gpt-3.5-turbo", "gpt-4"]
+        
+        # Create team with specific models using the existing new_team helper
+        # but with explicit models parameter
+        url = "http://0.0.0.0:4000/team/new"
+        headers = {"Authorization": "Bearer sk-1234", "Content-Type": "application/json"}
+        data = {
+            "team_alias": team_alias,
+            "models": test_models
+        }
+
+        async with session.post(url, headers=headers, json=data) as response:
+            status = response.status
+            response_text = await response.text()
+            print(f"Team creation response (Status: {status}): {response_text}")
+            
+            if status != 200:
+                raise Exception(f"Team creation failed with status {status}: {response_text}")
+            
+            team_response = await response.json()
+
+        team_id = team_response["team_id"]
+        
+        # Verify models were properly set using existing get_team_info helper
+        team_info = await get_team_info(session, team_id, "sk-1234")
+        created_models = team_info["team_info"]["models"]
+        
+        assert set(created_models) == set(test_models), (
+            f"Created team models {created_models} do not match requested models {test_models}"
+        )
+        
+        print(f"✅ Team created successfully with models: {created_models}")
+
+
+@pytest.mark.asyncio 
+async def test_team_creation_models_stability_during_updates():
+    """
+    Test that models remain stable when other team properties are updated.
+    
+    This simulates the scenario where models might get reset due to 
+    form state management issues during callbacks.
+    """
+    async with aiohttp.ClientSession() as session:
+        team_alias = f"test-models-stability-{uuid.uuid4()}"
+        initial_models = ["gpt-3.5-turbo", "claude-3-sonnet"]
+        
+        # Create team with initial models
+        team_response = await new_team(session, 0)
+        team_id = team_response["team_id"]
+        
+        # Update team with models first
+        await update_team(
+            session=session,
+            i=0,
+            team_id=team_id,
+            models=initial_models
+        )
+        
+        # Update team properties (but not models)
+        await update_team(
+            session=session, 
+            i=0,
+            team_id=team_id,
+            team_alias=f"updated-{team_alias}",
+            max_budget=200.0,
+            tpm_limit=1000
+        )
+        
+        # Verify models are still intact after update
+        team_info = await get_team_info(session, team_id, "sk-1234")
+        current_models = team_info["team_info"]["models"]
+        
+        assert set(current_models) == set(initial_models), (
+            f"Models changed after team update. Expected: {initial_models}, Got: {current_models}"
+        )
+        
+        print(f"✅ Models remained stable during team updates: {current_models}")
+
+
+@pytest.mark.asyncio
+async def test_team_creation_with_all_proxy_models():
+    """
+    Test team creation with "all-proxy-models" option.
+    
+    Verifies that the special "all-proxy-models" selection is preserved.
+    """
+    async with aiohttp.ClientSession() as session:
+        team_alias = f"test-all-models-{uuid.uuid4()}"
+        
+        # Create team with all-proxy-models using direct API call
+        url = "http://0.0.0.0:4000/team/new"
+        headers = {"Authorization": "Bearer sk-1234", "Content-Type": "application/json"}
+        data = {
+            "team_alias": team_alias,
+            "models": ["all-proxy-models"]
+        }
+
+        async with session.post(url, headers=headers, json=data) as response:
+            status = response.status
+            response_text = await response.text()
+            
+            if status != 200:
+                raise Exception(f"Team creation failed with status {status}: {response_text}")
+            
+            team_response = await response.json()
+
+        team_id = team_response["team_id"]
+        
+        # Verify all-proxy-models was set
+        team_info = await get_team_info(session, team_id, "sk-1234")
+        created_models = team_info["team_info"]["models"]
+        
+        # When all-proxy-models is selected, the models list should be empty in the backend
+        # (empty list means access to all models)
+        assert created_models == [] or "all-proxy-models" in created_models, (
+            f"Team should have all-proxy-models access, got: {created_models}"
+        )
+        
+        print(f"✅ Team created successfully with all-proxy-models access")
+
+
+@pytest.mark.asyncio
+async def test_team_creation_empty_models_list():
+    """
+    Test team creation with empty models list.
+    
+    Verifies that empty models list is handled correctly and defaults to all-proxy-models.
+    """
+    async with aiohttp.ClientSession() as session:
+        team_alias = f"test-empty-models-{uuid.uuid4()}"
+        
+        # Create team with empty models list
+        url = "http://0.0.0.0:4000/team/new"
+        headers = {"Authorization": "Bearer sk-1234", "Content-Type": "application/json"}
+        data = {
+            "team_alias": team_alias,
+            "models": []
+        }
+
+        async with session.post(url, headers=headers, json=data) as response:
+            status = response.status
+            response_text = await response.text()
+            
+            if status != 200:
+                raise Exception(f"Team creation failed with status {status}: {response_text}")
+            
+            team_response = await response.json()
+
+        team_id = team_response["team_id"]
+        
+        # Verify team was created
+        team_info = await get_team_info(session, team_id, "sk-1234")
+        created_models = team_info["team_info"]["models"]
+        
+        # Empty models list should default to all-proxy-models access
+        assert created_models == [], (
+            f"Empty models list should result in empty array (all-proxy access), got: {created_models}"
+        )
+        
+        print(f"✅ Team created with empty models list (all-proxy access): {created_models}")
\ No newline at end of file
diff --git a/ui/litellm-dashboard/src/components/teams.tsx b/ui/litellm-dashboard/src/components/teams.tsx
index 87bea9860d55..22693c64dd64 100644
--- a/ui/litellm-dashboard/src/components/teams.tsx
+++ b/ui/litellm-dashboard/src/components/teams.tsx
@@ -214,7 +214,6 @@ const Teams: React.FC<TeamProps> = ({
     const models = getOrganizationModels(currentOrgForCreateTeam, userModels);
     console.log(`models: ${models}`);
     setModelsToPick(models);
-    form.setFieldValue("models", []);
   }, [currentOrgForCreateTeam, userModels]);
 
   // Add this useEffect to fetch guardrails