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 3a21a10be6..8c94837066 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
@@ -406,6 +406,7 @@ const CreateMCPServer: React.FC<CreateMCPServerProps> = ({
               accessToken={accessToken}
               formValues={formValues}
               allowedTools={allowedTools}
+              existingAllowedTools={null}
               onAllowedToolsChange={setAllowedTools}
             />
           </div>
diff --git a/ui/litellm-dashboard/src/components/mcp_tools/mcp_server_edit.tsx b/ui/litellm-dashboard/src/components/mcp_tools/mcp_server_edit.tsx
index f8d9d8ac89..d9839b5881 100644
--- a/ui/litellm-dashboard/src/components/mcp_tools/mcp_server_edit.tsx
+++ b/ui/litellm-dashboard/src/components/mcp_tools/mcp_server_edit.tsx
@@ -5,6 +5,7 @@ import { MCPServer, MCPServerCostInfo } from "./types";
 import { updateMCPServer, testMCPToolsListRequest } from "../networking";
 import MCPServerCostConfig from "./mcp_server_cost_config";
 import MCPPermissionManagement from "./MCPPermissionManagement";
+import MCPToolConfiguration from "./mcp_tool_configuration";
 import { MinusCircleOutlined, PlusOutlined, InfoCircleOutlined } from "@ant-design/icons";
 import { validateMCPServerUrl, validateMCPServerName } from "./utils";
 import NotificationsManager from "../molecules/notifications_manager";
@@ -23,7 +24,8 @@ const MCPServerEdit: React.FC<MCPServerEditProps> = ({ mcpServer, accessToken, o
   const [tools, setTools] = useState<any[]>([]);
   const [isLoadingTools, setIsLoadingTools] = useState(false);
   const [searchValue, setSearchValue] = useState<string>("");
-  const [aliasManuallyEdited, setAliasManuallyEdited] = useState(false)
+  const [aliasManuallyEdited, setAliasManuallyEdited] = useState(false);
+  const [allowedTools, setAllowedTools] = useState<string[]>([]);
 
   // Initialize cost config from existing server data
   useEffect(() => {
@@ -32,6 +34,13 @@ const MCPServerEdit: React.FC<MCPServerEditProps> = ({ mcpServer, accessToken, o
     }
   }, [mcpServer]);
 
+  // Initialize allowed tools from existing server data
+  useEffect(() => {
+    if (mcpServer.allowed_tools) {
+      setAllowedTools(mcpServer.allowed_tools);
+    }
+  }, [mcpServer]);
+
   // Transform string array to object array for initial form values
   useEffect(() => {
     if (mcpServer.mcp_access_groups) {
@@ -128,7 +137,7 @@ const MCPServerEdit: React.FC<MCPServerEditProps> = ({ mcpServer, accessToken, o
         alias: values.alias,
         // Include permission management fields
         extra_headers: values.extra_headers || [],
-        allowed_tools: values.allowed_tools || [],
+        allowed_tools: allowedTools.length > 0 ? allowedTools : null,
         disallowed_tools: values.disallowed_tools || [],
       };
 
@@ -195,6 +204,24 @@ const MCPServerEdit: React.FC<MCPServerEditProps> = ({ mcpServer, accessToken, o
               />
             </div>
 
+            {/* Tool Configuration Section */}
+            <div className="mt-6">
+              <MCPToolConfiguration
+                accessToken={accessToken}
+                formValues={{
+                  server_id: mcpServer.server_id,
+                  server_name: mcpServer.server_name,
+                  url: mcpServer.url,
+                  transport: mcpServer.transport,
+                  auth_type: mcpServer.auth_type,
+                  mcp_info: mcpServer.mcp_info,
+                }}
+                allowedTools={allowedTools}
+                existingAllowedTools={mcpServer.allowed_tools || null}
+                onAllowedToolsChange={setAllowedTools}
+              />
+            </div>
+
             <div className="flex justify-end gap-2">
               <AntdButton onClick={onCancel}>Cancel</AntdButton>
               <Button type="submit">Save Changes</Button>
diff --git a/ui/litellm-dashboard/src/components/mcp_tools/mcp_tool_configuration.tsx b/ui/litellm-dashboard/src/components/mcp_tools/mcp_tool_configuration.tsx
index 7442cd467b..1e31c55444 100644
--- a/ui/litellm-dashboard/src/components/mcp_tools/mcp_tool_configuration.tsx
+++ b/ui/litellm-dashboard/src/components/mcp_tools/mcp_tool_configuration.tsx
@@ -8,6 +8,7 @@ interface MCPToolConfigurationProps {
   accessToken: string | null
   formValues: Record<string, any>
   allowedTools: string[]
+  existingAllowedTools: string[] | null
   onAllowedToolsChange: (tools: string[]) => void
 }
 
@@ -15,6 +16,7 @@ const MCPToolConfiguration: React.FC<MCPToolConfigurationProps> = ({
   accessToken,
   formValues,
   allowedTools,
+  existingAllowedTools,
   onAllowedToolsChange,
 }) => {
   const previousToolsLengthRef = useRef(0)
@@ -25,19 +27,28 @@ const MCPToolConfiguration: React.FC<MCPToolConfigurationProps> = ({
     enabled: true,
   })
 
-  // Auto-select all tools when tools are first loaded
+  // Auto-select tools when tools are first loaded
   useEffect(() => {
     // Only auto-select if:
     // 1. We have tools
     // 2. Tools length changed (new tools loaded)
     // 3. No tools are currently selected (initial state)
     if (tools.length > 0 && tools.length !== previousToolsLengthRef.current && allowedTools.length === 0) {
-      const allToolNames = tools.map((tool) => tool.name)
-      onAllowedToolsChange(allToolNames)
+      if (existingAllowedTools && existingAllowedTools.length > 0) {
+        // If we have existing allowed tools, use those as the initial selection
+        // Filter to only include tools that are actually available from the server
+        const availableToolNames = tools.map((tool) => tool.name)
+        const validExistingTools = existingAllowedTools.filter(toolName => availableToolNames.includes(toolName))
+        onAllowedToolsChange(validExistingTools)
+      } else {
+        // If no existing allowed tools, auto-select all tools (create mode)
+        const allToolNames = tools.map((tool) => tool.name)
+        onAllowedToolsChange(allToolNames)
+      }
     }
     // Update ref to track tools length (will be 0 when tools clear)
     previousToolsLengthRef.current = tools.length
-  }, [tools, allowedTools.length, onAllowedToolsChange])
+  }, [tools, allowedTools.length, existingAllowedTools, onAllowedToolsChange])
 
   const handleToolToggle = (toolName: string) => {
     if (allowedTools.includes(toolName)) {