diff --git a/litellm/proxy/ui_crud_endpoints/proxy_setting_endpoints.py b/litellm/proxy/ui_crud_endpoints/proxy_setting_endpoints.py
index f1c1d870d1..9c99b625e9 100644
--- a/litellm/proxy/ui_crud_endpoints/proxy_setting_endpoints.py
+++ b/litellm/proxy/ui_crud_endpoints/proxy_setting_endpoints.py
@@ -561,6 +561,41 @@ async def update_sso_settings(sso_config: SSOConfig):
         },
     )
 
+    # Remove SSO-related env vars from config.environment_variables
+    try:
+        env_var_entry = await prisma_client.db.litellm_config.find_unique(
+            where={"param_name": "environment_variables"}
+        )
+
+        # If no environment_variables entry exists, nothing to clean up
+        if env_var_entry is not None:
+            if env_var_entry.param_value is not None:
+                if isinstance(env_var_entry.param_value, str):
+                    environment_variables = json.loads(env_var_entry.param_value)
+                else:
+                    environment_variables = dict(env_var_entry.param_value)
+            else:
+                environment_variables = {}
+
+            env_vars_to_remove = set(env_var_mapping.values())
+            filtered_env_vars = {
+                key: value
+                for key, value in environment_variables.items()
+                if key not in env_vars_to_remove
+            }
+
+            await prisma_client.db.litellm_config.update(
+                where={"param_name": "environment_variables"},
+                data={
+                    "param_value": json.dumps(filtered_env_vars, default=str),
+                },
+            )
+    except Exception as e:
+        raise HTTPException(
+            status_code=500,
+            detail={"error": f"Error updating environment_variables: {str(e)}"},
+        )
+
     return {
         "message": "SSO settings updated successfully",
         "status": "success",
diff --git a/tests/test_litellm/proxy/ui_crud_endpoints/test_proxy_setting_endpoints.py b/tests/test_litellm/proxy/ui_crud_endpoints/test_proxy_setting_endpoints.py
index c15bdba800..d3c9915119 100644
--- a/tests/test_litellm/proxy/ui_crud_endpoints/test_proxy_setting_endpoints.py
+++ b/tests/test_litellm/proxy/ui_crud_endpoints/test_proxy_setting_endpoints.py
@@ -306,6 +306,9 @@ class TestProxySettingEndpoints:
         # Mock the prisma client
         mock_prisma = MagicMock()
         mock_prisma.db.litellm_ssoconfig.upsert = AsyncMock()
+        mock_prisma.db.litellm_config = MagicMock()
+        mock_prisma.db.litellm_config.find_unique = AsyncMock(return_value=None)
+        mock_prisma.db.litellm_config.update = AsyncMock()
         monkeypatch.setattr("litellm.proxy.proxy_server.prisma_client", mock_prisma)
 
         # Mock encryption to return values as-is
@@ -380,6 +383,18 @@ class TestProxySettingEndpoints:
         # Mock the prisma client
         mock_prisma = MagicMock()
         mock_prisma.db.litellm_ssoconfig.upsert = AsyncMock()
+        mock_prisma.db.litellm_config = MagicMock()
+
+        env_var_entry = MagicMock()
+        env_var_entry.param_value = json.dumps(
+            {
+                "GOOGLE_CLIENT_ID": "old_google_id",
+                "MICROSOFT_CLIENT_SECRET": "old_secret",
+                "PROXY_BASE_URL": "old_proxy_url",
+            }
+        )
+        mock_prisma.db.litellm_config.find_unique = AsyncMock(return_value=env_var_entry)
+        mock_prisma.db.litellm_config.update = AsyncMock()
         monkeypatch.setattr("litellm.proxy.proxy_server.prisma_client", mock_prisma)
 
         # Mock encryption to return values as-is
@@ -440,6 +455,17 @@ class TestProxySettingEndpoints:
         # Mock the prisma client
         mock_prisma = MagicMock()
         mock_prisma.db.litellm_ssoconfig.upsert = AsyncMock()
+        mock_prisma.db.litellm_config = MagicMock()
+        env_var_entry = MagicMock()
+        env_var_entry.param_value = json.dumps(
+            {
+                "GOOGLE_CLIENT_ID": "old_google_id",
+                "MICROSOFT_CLIENT_SECRET": "old_secret",
+                "PROXY_BASE_URL": "old_proxy_url",
+            }
+        )
+        mock_prisma.db.litellm_config.find_unique = AsyncMock(return_value=env_var_entry)
+        mock_prisma.db.litellm_config.update = AsyncMock()
         monkeypatch.setattr("litellm.proxy.proxy_server.prisma_client", mock_prisma)
 
         # Mock encryption to return values as-is
@@ -492,6 +518,17 @@ class TestProxySettingEndpoints:
         # Mock the prisma client
         mock_prisma = MagicMock()
         mock_prisma.db.litellm_ssoconfig.upsert = AsyncMock()
+        mock_prisma.db.litellm_config = MagicMock()
+
+        env_var_entry = MagicMock()
+        env_var_entry.param_value = json.dumps(
+            {
+                "GOOGLE_CLIENT_ID": "test_existing_google_id",
+                "MICROSOFT_CLIENT_SECRET": "test_existing_microsoft_secret",
+            }
+        )
+        mock_prisma.db.litellm_config.find_unique = AsyncMock(return_value=env_var_entry)
+        mock_prisma.db.litellm_config.update = AsyncMock()
         monkeypatch.setattr("litellm.proxy.proxy_server.prisma_client", mock_prisma)
 
         # Mock encryption to return values as-is
@@ -551,6 +588,9 @@ class TestProxySettingEndpoints:
         # Mock the prisma client
         mock_prisma = MagicMock()
         mock_prisma.db.litellm_ssoconfig.upsert = AsyncMock()
+        mock_prisma.db.litellm_config = MagicMock()
+        mock_prisma.db.litellm_config.find_unique = AsyncMock(return_value=None)
+        mock_prisma.db.litellm_config.update = AsyncMock()
         monkeypatch.setattr("litellm.proxy.proxy_server.prisma_client", mock_prisma)
 
         # Mock encryption to return values as-is
@@ -835,6 +875,9 @@ class TestProxySettingEndpoints:
         mock_prisma = MagicMock()
         upsert_mock = AsyncMock()
         mock_prisma.db.litellm_ssoconfig.upsert = upsert_mock
+        mock_prisma.db.litellm_config = MagicMock()
+        mock_prisma.db.litellm_config.find_unique = AsyncMock(return_value=None)
+        mock_prisma.db.litellm_config.update = AsyncMock()
         
         monkeypatch.setattr("litellm.proxy.proxy_server.prisma_client", mock_prisma)
         monkeypatch.setattr("litellm.proxy.proxy_server.store_model_in_db", True)
@@ -892,6 +935,99 @@ class TestProxySettingEndpoints:
         assert create_sso_settings["google_client_secret"] == "encrypted_new_google_secret"
         assert create_sso_settings["proxy_base_url"] == "encrypted_https://new.example.com"
 
+    def test_update_sso_settings_removes_sso_env_vars_from_config(
+        self, mock_proxy_config, mock_auth, monkeypatch
+    ):
+        """Ensure SSO-related env vars are deleted from stored config"""
+        import json
+        from unittest.mock import AsyncMock, MagicMock
+
+        monkeypatch.setenv("LITELLM_SALT_KEY", "test_salt_key")
+        monkeypatch.setattr("litellm.proxy.proxy_server.store_model_in_db", True)
+
+        mock_prisma = MagicMock()
+        mock_prisma.db = MagicMock()
+        mock_prisma.db.litellm_ssoconfig = MagicMock()
+        mock_prisma.db.litellm_ssoconfig.upsert = AsyncMock()
+
+        env_var_entry = MagicMock()
+        env_var_entry.param_value = json.dumps(
+            {
+                "GOOGLE_CLIENT_ID": "old_google_id",
+                "GENERIC_TOKEN_ENDPOINT": "old_endpoint",
+                "UNCHANGED_ENV": "keep_me",
+            }
+        )
+        mock_prisma.db.litellm_config = MagicMock()
+        mock_prisma.db.litellm_config.find_unique = AsyncMock(return_value=env_var_entry)
+        mock_prisma.db.litellm_config.update = AsyncMock()
+        monkeypatch.setattr("litellm.proxy.proxy_server.prisma_client", mock_prisma)
+
+        from litellm.proxy.proxy_server import proxy_config
+
+        monkeypatch.setattr(
+            proxy_config,
+            "_encrypt_env_variables",
+            lambda environment_variables: environment_variables,
+        )
+
+        response = client.patch(
+            "/update/sso_settings", json={"google_client_id": "new_google_id"}
+        )
+
+        assert response.status_code == 200
+        mock_prisma.db.litellm_config.find_unique.assert_called_once()
+        mock_prisma.db.litellm_config.update.assert_called_once()
+        update_call = mock_prisma.db.litellm_config.update.call_args
+        updated_env_vars = json.loads(update_call.kwargs["data"]["param_value"])
+        assert "GOOGLE_CLIENT_ID" not in updated_env_vars
+        assert "GENERIC_TOKEN_ENDPOINT" not in updated_env_vars
+        assert updated_env_vars["UNCHANGED_ENV"] == "keep_me"
+
+    def test_update_sso_settings_preserves_non_sso_env_vars(
+        self, mock_proxy_config, mock_auth, monkeypatch
+    ):
+        """Ensure env vars outside SSO mapping remain unchanged"""
+        import json
+        from unittest.mock import AsyncMock, MagicMock
+
+        monkeypatch.setenv("LITELLM_SALT_KEY", "test_salt_key")
+        monkeypatch.setattr("litellm.proxy.proxy_server.store_model_in_db", True)
+
+        mock_prisma = MagicMock()
+        mock_prisma.db = MagicMock()
+        mock_prisma.db.litellm_ssoconfig = MagicMock()
+        mock_prisma.db.litellm_ssoconfig.upsert = AsyncMock()
+
+        env_var_entry = MagicMock()
+        env_var_entry.param_value = {
+            "UNRELATED_ENV": "keep_this",
+            "ANOTHER_ENV": "also_keep",
+        }
+        mock_prisma.db.litellm_config = MagicMock()
+        mock_prisma.db.litellm_config.find_unique = AsyncMock(return_value=env_var_entry)
+        mock_prisma.db.litellm_config.update = AsyncMock()
+        monkeypatch.setattr("litellm.proxy.proxy_server.prisma_client", mock_prisma)
+
+        from litellm.proxy.proxy_server import proxy_config
+
+        monkeypatch.setattr(
+            proxy_config,
+            "_encrypt_env_variables",
+            lambda environment_variables: environment_variables,
+        )
+
+        response = client.patch(
+            "/update/sso_settings", json={"microsoft_client_id": "new_microsoft_id"}
+        )
+
+        assert response.status_code == 200
+        mock_prisma.db.litellm_config.find_unique.assert_called_once()
+        mock_prisma.db.litellm_config.update.assert_called_once()
+        update_call = mock_prisma.db.litellm_config.update.call_args
+        updated_env_vars = json.loads(update_call.kwargs["data"]["param_value"])
+        assert updated_env_vars == env_var_entry.param_value
+
     def test_get_sso_settings_empty_database(self, mock_proxy_config, mock_auth, monkeypatch):
         """Test getting SSO settings when database table is empty"""
         from unittest.mock import AsyncMock, MagicMock