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diff --git a/litellm/proxy/management_endpoints/team_endpoints.py b/litellm/proxy/management_endpoints/team_endpoints.py
index 8357b1c0fe..1ef40f0685 100644
--- a/litellm/proxy/management_endpoints/team_endpoints.py
+++ b/litellm/proxy/management_endpoints/team_endpoints.py
@@ -43,6 +43,7 @@ from litellm.proxy._types import (
     LitellmUserRoles,
     Member,
     NewTeamRequest,
+    OrgMember,
     ProxyErrorTypes,
     ProxyException,
     SpecialManagementEndpointEnums,
@@ -78,6 +79,9 @@ from litellm.proxy.management_endpoints.common_utils import (
     _upsert_budget_and_membership,
     _user_has_admin_view,
 )
+from litellm.proxy.management_endpoints.organization_endpoints import (
+    add_member_to_organization,
+)
 from litellm.proxy.management_endpoints.tag_management_endpoints import (
     get_daily_activity,
 )
@@ -1255,11 +1259,53 @@ async def _update_model_table(
     return _model_id
 
 
+async def _auto_add_team_members_to_organization(
+    team: LiteLLM_TeamTable,
+    organization: LiteLLM_OrganizationTableWithMembers,
+    prisma_client: Any,
+) -> None:
+    """
+    When moving a team to an org, ensure all team members are also org members.
+
+    For SSO/Entra setups without SCIM, users join teams automatically on login but
+    are never explicitly added to organizations. This silently upserts missing members
+    rather than blocking the team move.
+    """
+    org_member_ids = (
+        {m.user_id for m in organization.members} if organization.members else set()
+    )
+    for member in team.members_with_roles:
+        if member.user_id is None:
+            continue
+        if member.user_id == SpecialProxyStrings.default_user_id.value:
+            continue
+        if member.user_id in org_member_ids:
+            continue
+        if organization.organization_id is None:
+            continue
+        try:
+            await add_member_to_organization(
+                member=OrgMember(
+                    user_id=member.user_id,
+                    role=LitellmUserRoles.INTERNAL_USER,
+                ),
+                organization_id=organization.organization_id,
+                prisma_client=prisma_client,
+            )
+        except Exception as e:
+            verbose_proxy_logger.debug(
+                "_auto_add_team_members_to_organization: skipping user_id=%s - %s",
+                member.user_id,
+                e,
+            )
+
+
 async def fetch_and_validate_organization(
     organization_id: str,
     existing_team_row: Any,
     llm_router: Optional[Router],
     prisma_client: Any,
+    user_api_key_dict: Optional[UserAPIKeyAuth] = None,
 ) -> Any:
     """
     Fetch and validate an organization for team update operations.
@@ -1294,14 +1340,25 @@ async def fetch_and_validate_organization(
             },
         )
 
+    is_proxy_admin = (
+        user_api_key_dict is not None
+        and user_api_key_dict.user_role == LitellmUserRoles.PROXY_ADMIN
+    )
+    organization = LiteLLM_OrganizationTableWithMembers(**organization_row.model_dump())
     validate_team_org_change(
         team=LiteLLM_TeamTable(**existing_team_row.model_dump()),
-        organization=LiteLLM_OrganizationTableWithMembers(
-            **organization_row.model_dump()
-        ),
+        organization=organization,
         llm_router=llm_router,
+        is_proxy_admin=is_proxy_admin,
     )
 
+    if is_proxy_admin:
+        await _auto_add_team_members_to_organization(
+            team=LiteLLM_TeamTable(**existing_team_row.model_dump()),
+            organization=organization,
+            prisma_client=prisma_client,
+        )
+
     return organization_row
 
 
@@ -1309,14 +1366,20 @@ def validate_team_org_change(
     team: LiteLLM_TeamTable,
     organization: LiteLLM_OrganizationTableWithMembers,
     llm_router: Router,
+    is_proxy_admin: bool = False,
 ) -> bool:
     """
     Validate that a team can be moved to an organization.
 
     - The org must have access to the team's models
     - The team budget cannot be greater than the org max_budget
-    - The team's user_id must be a member of the org
+    - For non-proxy-admins: all team members must already be org members
     - The team's tpm/rpm limit must be less than the org's tpm/rpm limit
+
+    Proxy admins bypass the membership check and instead trigger auto-add of
+    missing members (handled by the caller). This supports SSO/Entra setups
+    where org membership tables are empty but proxy admins still need to group
+    teams under orgs for budget/model governance.
     """
 
     # If the team's organization is the same as the new organization, return True
@@ -1357,23 +1420,26 @@ def validate_team_org_change(
             },
         )
 
-    # Check if the team's user_id is a member of the org
-    team_members = [m.user_id for m in team.members_with_roles]
-    org_members = (
-        [m.user_id for m in organization.members] if organization.members else []
-    )
-    not_in_org = [
-        m
-        for m in team_members
-        if m not in org_members and m != SpecialProxyStrings.default_user_id.value
-    ]
-    if len(not_in_org) > 0:
-        raise HTTPException(
-            status_code=403,
-            detail={
-                "error": f"Cannot move team to organization. Team has user_id {not_in_org} that is not a member of the organization."
-            },
+    # For non-proxy-admins, require all team members to already be org members.
+    # This prevents a team admin from moving their team into an arbitrary org and
+    # thereby injecting members into that org without org admin approval.
+    if not is_proxy_admin:
+        team_members = [m.user_id for m in team.members_with_roles]
+        org_members = (
+            [m.user_id for m in organization.members] if organization.members else []
         )
+        not_in_org = [
+            m
+            for m in team_members
+            if m not in org_members and m != SpecialProxyStrings.default_user_id.value
+        ]
+        if len(not_in_org) > 0:
+            raise HTTPException(
+                status_code=403,
+                detail={
+                    "error": f"Cannot move team to organization. Team has user_id {not_in_org} that is not a member of the organization."
+                },
+            )
 
     # Check if the team's tpm/rpm limit is less than the org's tpm/rpm limit
     if (
@@ -1617,6 +1683,7 @@ async def update_team(  # noqa: PLR0915
                 existing_team_row=existing_team_row,
                 llm_router=llm_router,
                 prisma_client=prisma_client,
+                user_api_key_dict=user_api_key_dict,
             )
         elif data.organization_id is not None and len(data.organization_id) == 0:
             # unsetting the organization_id
diff --git a/tests/test_litellm/proxy/test_team_org_move.py b/tests/test_litellm/proxy/test_team_org_move.py
new file mode 100644
index 0000000000..2dc961bec8
--- /dev/null
+++ b/tests/test_litellm/proxy/test_team_org_move.py
@@ -0,0 +1,232 @@
+"""
+Tests for moving teams to organizations.
+
+Covers the SSO/Entra scenario where:
+- Proxy admins can move teams freely; missing members are auto-added to the org.
+- Non-proxy-admins (team admins) must have all team members pre-added to the org,
+  preserving the original security model (no privilege escalation via team move).
+"""
+from unittest.mock import AsyncMock, MagicMock
+
+import pytest
+
+from litellm.proxy._types import (
+    LiteLLM_OrganizationTableWithMembers,
+    LiteLLM_OrganizationMembershipTable,
+    LiteLLM_TeamTable,
+    LitellmUserRoles,
+    Member,
+    OrgMember,
+    SpecialProxyStrings,
+)
+from litellm.proxy.management_endpoints.team_endpoints import (
+    _auto_add_team_members_to_organization,
+    validate_team_org_change,
+)
+from litellm.router import Router
+
+
+def _make_org(organization_id="org-1", members=None, models=None):
+    from datetime import datetime
+
+    return LiteLLM_OrganizationTableWithMembers(
+        organization_id=organization_id,
+        organization_alias="test-org",
+        budget_id="budget-test",
+        spend=0.0,
+        metadata={},
+        models=models or [],
+        created_by="default_user_id",
+        updated_by="default_user_id",
+        members=members or [],
+        teams=[],
+        litellm_budget_table=None,
+        created_at=datetime.now(),
+        updated_at=datetime.now(),
+    )
+
+
+def _make_team(team_id="team-1", member_ids=None, organization_id=None):
+    members = [
+        Member(user_id=uid, role="user") for uid in (member_ids or [])
+    ]
+    members.append(Member(user_id=SpecialProxyStrings.default_user_id.value, role="admin"))
+    return LiteLLM_TeamTable(
+        team_id=team_id,
+        team_alias="test-team",
+        organization_id=organization_id,
+        admins=[],
+        members=[],
+        members_with_roles=members,
+        metadata={},
+        models=[],
+        blocked=False,
+        spend=0.0,
+    )
+
+
+def _make_org_membership(user_id):
+    from datetime import datetime
+
+    return LiteLLM_OrganizationMembershipTable(
+        user_id=user_id,
+        organization_id="org-1",
+        user_role=LitellmUserRoles.INTERNAL_USER,
+        spend=0.0,
+        budget_id=None,
+        created_at=datetime.now(),
+        updated_at=datetime.now(),
+    )
+
+
+class TestValidateTeamOrgChange:
+    def test_proxy_admin_not_blocked_when_members_not_in_org(self):
+        """Proxy admins bypass the membership check — auto-add handles it instead."""
+        router = MagicMock(spec=Router)
+        team = _make_team(member_ids=["sso-user-001", "sso-user-002"])
+        org = _make_org(members=[])
+
+        result = validate_team_org_change(
+            team=team, organization=org, llm_router=router, is_proxy_admin=True
+        )
+        assert result is True
+
+    def test_non_admin_blocked_when_members_not_in_org(self):
+        """Team admins (non-proxy-admin) must have all members pre-added to the org."""
+        router = MagicMock(spec=Router)
+        team = _make_team(member_ids=["sso-user-001"])
+        org = _make_org(members=[])
+
+        with pytest.raises(Exception) as exc_info:
+            validate_team_org_change(
+                team=team, organization=org, llm_router=router, is_proxy_admin=False
+            )
+        assert "403" in str(exc_info.value) or "not a member" in str(exc_info.value)
+
+    def test_non_admin_passes_when_all_members_in_org(self):
+        """Team admin move succeeds when all team members are already org members."""
+        router = MagicMock(spec=Router)
+        team = _make_team(member_ids=["u1"])
+        org = _make_org(members=[_make_org_membership("u1")])
+
+        result = validate_team_org_change(
+            team=team, organization=org, llm_router=router, is_proxy_admin=False
+        )
+        assert result is True
+
+    def test_same_org_short_circuits(self):
+        """Moving to the same org is always a no-op, regardless of role."""
+        router = MagicMock(spec=Router)
+        team = _make_team(member_ids=["u1"], organization_id="org-1")
+        org = _make_org(organization_id="org-1")
+
+        assert validate_team_org_change(
+            team=team, organization=org, llm_router=router, is_proxy_admin=False
+        ) is True
+        assert validate_team_org_change(
+            team=team, organization=org, llm_router=router, is_proxy_admin=True
+        ) is True
+
+    def test_default_user_excluded_from_membership_check(self):
+        """default_user_id is never checked for org membership."""
+        router = MagicMock(spec=Router)
+        # Team has only default_user_id (added by _make_team)
+        team = _make_team(member_ids=[])
+        org = _make_org(members=[])
+
+        # Should not raise even for non-proxy-admin
+        result = validate_team_org_change(
+            team=team, organization=org, llm_router=router, is_proxy_admin=False
+        )
+        assert result is True
+
+
+class TestAutoAddTeamMembersToOrg:
+    @pytest.mark.asyncio
+    async def test_adds_missing_members(self):
+        team = _make_team(member_ids=["sso-user-001", "sso-user-002"])
+        org = _make_org(members=[])
+
+        mock_add = AsyncMock()
+        import litellm.proxy.management_endpoints.team_endpoints as te
+        original = te.add_member_to_organization
+        te.add_member_to_organization = mock_add
+
+        try:
+            await _auto_add_team_members_to_organization(
+                team=team,
+                organization=org,
+                prisma_client=MagicMock(),
+            )
+        finally:
+            te.add_member_to_organization = original
+
+        assert mock_add.call_count == 2
+        called_user_ids = {
+            call.kwargs["member"].user_id for call in mock_add.call_args_list
+        }
+        assert called_user_ids == {"sso-user-001", "sso-user-002"}
+
+    @pytest.mark.asyncio
+    async def test_skips_existing_org_members(self):
+        team = _make_team(member_ids=["u1", "u2"])
+        org = _make_org(members=[_make_org_membership("u1")])
+
+        mock_add = AsyncMock()
+        import litellm.proxy.management_endpoints.team_endpoints as te
+        original = te.add_member_to_organization
+        te.add_member_to_organization = mock_add
+
+        try:
+            await _auto_add_team_members_to_organization(
+                team=team,
+                organization=org,
+                prisma_client=MagicMock(),
+            )
+        finally:
+            te.add_member_to_organization = original
+
+        assert mock_add.call_count == 1
+        assert mock_add.call_args.kwargs["member"].user_id == "u2"
+
+    @pytest.mark.asyncio
+    async def test_skips_default_user(self):
+        """default_user_id should never be added as an org member."""
+        team = _make_team(member_ids=[])
+        org = _make_org(members=[])
+
+        mock_add = AsyncMock()
+        import litellm.proxy.management_endpoints.team_endpoints as te
+        original = te.add_member_to_organization
+        te.add_member_to_organization = mock_add
+
+        try:
+            await _auto_add_team_members_to_organization(
+                team=team,
+                organization=org,
+                prisma_client=MagicMock(),
+            )
+        finally:
+            te.add_member_to_organization = original
+
+        assert mock_add.call_count == 0
+
+    @pytest.mark.asyncio
+    async def test_logs_and_continues_on_error(self):
+        """Errors must not propagate — they are logged at DEBUG and skipped."""
+        team = _make_team(member_ids=["u1"])
+        org = _make_org(members=[])
+
+        mock_add = AsyncMock(side_effect=Exception("duplicate key"))
+        import litellm.proxy.management_endpoints.team_endpoints as te
+        original = te.add_member_to_organization
+        te.add_member_to_organization = mock_add
+
+        try:
+            await _auto_add_team_members_to_organization(
+                team=team,
+                organization=org,
+                prisma_client=MagicMock(),
+            )
+        finally:
+            te.add_member_to_organization = original