diff --git a/ui/desktop/src/components/ConfigContext.tsx b/ui/desktop/src/components/ConfigContext.tsx
index 6c169e26f2..05b823b0a3 100644
--- a/ui/desktop/src/components/ConfigContext.tsx
+++ b/ui/desktop/src/components/ConfigContext.tsx
@@ -179,7 +179,7 @@ export const ConfigProvider: React.FC<ConfigProviderProps> = ({ children }) => {
         return providersData;
       } catch (error) {
         console.error('Failed to fetch providers:', error);
-        return [];
+        return providersListRef.current;
       }
     }
     return providersListRef.current;
diff --git a/ui/desktop/src/components/settings/models/modelInterface.ts b/ui/desktop/src/components/settings/models/modelInterface.ts
index 0be12e2244..a8ee79bec6 100644
--- a/ui/desktop/src/components/settings/models/modelInterface.ts
+++ b/ui/desktop/src/components/settings/models/modelInterface.ts
@@ -47,6 +47,7 @@ export interface ProviderModelsResult {
   provider: ProviderDetails;
   models: string[] | null;
   error: string | null;
+  warning: string | null;
 }
 
 export async function fetchModelsForProviders(
@@ -61,7 +62,7 @@ export async function fetchModelsForProviders(
         const downloadedModels = allModels
           .filter((m) => m.status.state === 'Downloaded')
           .map((m) => m.id);
-        return { provider: p, models: downloadedModels, error: null };
+        return { provider: p, models: downloadedModels, error: null, warning: null };
       }
 
       const response = await getProviderModels({
@@ -69,14 +70,29 @@ export async function fetchModelsForProviders(
         throwOnError: true,
       });
       const models = response.data || [];
-      return { provider: p, models, error: null };
+      return { provider: p, models, error: null, warning: null };
     } catch (e: unknown) {
+      // For custom providers, fall back to the configured model list
+      if (p.provider_type === 'Custom') {
+        const fallbackModels = p.metadata.known_models.map((m) => m.name);
+        if (fallbackModels.length > 0) {
+          console.warn(`Failed to fetch models for ${p.name}:`, getErrorMessage(e));
+          return {
+            provider: p,
+            models: fallbackModels,
+            error: null,
+            warning: `Could not fetch models from provider — showing configured models instead.`,
+          };
+        }
+      }
+
       const errMsg = getErrorMessage(e);
       const errorMessage = `Failed to fetch models for ${p.name}${errMsg ? `: ${errMsg}` : ''}`;
       return {
         provider: p,
         models: null,
         error: errorMessage,
+        warning: null,
       };
     }
   });
diff --git a/ui/desktop/src/components/settings/models/subcomponents/SwitchModelModal.tsx b/ui/desktop/src/components/settings/models/subcomponents/SwitchModelModal.tsx
index dda23fc6eb..3bd5bc17d7 100644
--- a/ui/desktop/src/components/settings/models/subcomponents/SwitchModelModal.tsx
+++ b/ui/desktop/src/components/settings/models/subcomponents/SwitchModelModal.tsx
@@ -104,7 +104,9 @@ export const SwitchModelModal = ({
   const [provider, setProvider] = useState<string | null>(
     initialProvider || currentProvider || null
   );
-  const [model, setModel] = useState<string>(currentModel || '');
+  const [model, setModel] = useState<string>(
+    initialProvider && initialProvider !== currentProvider ? '' : currentModel || ''
+  );
   const [isCustomModel, setIsCustomModel] = useState(false);
   const [validationErrors, setValidationErrors] = useState({
     provider: '',
@@ -118,6 +120,7 @@ export const SwitchModelModal = ({
   const [loadingModels, setLoadingModels] = useState<boolean>(false);
   const [userClearedModel, setUserClearedModel] = useState(false);
   const [providerErrors, setProviderErrors] = useState<Record<string, string>>({});
+  const [providerWarnings, setProviderWarnings] = useState<Record<string, string>>({});
   const [thinkingLevel, setThinkingLevel] = useState<string>('low');
   const [claudeThinkingType, setClaudeThinkingType] = useState<string>('disabled');
   const [claudeThinkingEffort, setClaudeThinkingEffort] = useState<string>('high');
@@ -301,8 +304,12 @@ export const SwitchModelModal = ({
           options: { value: string; label: string; provider: string; providerType: ProviderType }[];
         }[] = [];
         const errorMap: Record<string, string> = {};
+        const warningMap: Record<string, string> = {};
 
-        results.forEach(({ provider: p, models, error }) => {
+        results.forEach(({ provider: p, models, error, warning }) => {
+          if (warning) {
+            warningMap[p.name] = warning;
+          }
           if (error) {
             errorMap[p.name] = error;
             return;
@@ -336,8 +343,9 @@ export const SwitchModelModal = ({
           }
         });
 
-        // Save provider errors to state
+        // Save provider errors and warnings to state
         setProviderErrors(errorMap);
+        setProviderWarnings(warningMap);
 
         setModelOptions(groupedOptions);
         setOriginalModelOptions(groupedOptions);
@@ -684,6 +692,13 @@ export const SwitchModelModal = ({
                       {attemptedSubmit && validationErrors.model && (
                         <div className="text-red-500 text-sm mt-1">{validationErrors.model}</div>
                       )}
+                      {provider && providerWarnings[provider] && (
+                        <div className="rounded-md bg-yellow-50 dark:bg-yellow-900/20 border border-yellow-200 dark:border-yellow-800 p-3 mt-2">
+                          <div className="text-sm text-yellow-700 dark:text-yellow-300">
+                            {providerWarnings[provider]}
+                          </div>
+                        </div>
+                      )}
                     </div>
                   ) : (
                     <div className="flex flex-col gap-2">
diff --git a/ui/desktop/src/components/settings/providers/ProviderGrid.tsx b/ui/desktop/src/components/settings/providers/ProviderGrid.tsx
index b7b3d5ad3c..834d0bfee1 100644
--- a/ui/desktop/src/components/settings/providers/ProviderGrid.tsx
+++ b/ui/desktop/src/components/settings/providers/ProviderGrid.tsx
@@ -196,11 +196,13 @@ function ProviderCards({
   const handleCreateCustomProvider = useCallback(
     async (data: UpdateCustomProviderRequest) => {
       const { createCustomProvider } = await import('../../../api');
-      await createCustomProvider({ body: data, throwOnError: true });
+      const result = await createCustomProvider({ body: data, throwOnError: true });
+      const providerId = result.data?.replace('Custom provider added - ID: ', '') || null;
       setShowCustomProviderModal(false);
       if (refreshProviders) {
-        refreshProviders();
+        await refreshProviders();
       }
+      setSwitchModelProvider(providerId);
       setShowSwitchModelModal(true);
     },
     [refreshProviders]
diff --git a/ui/desktop/src/components/settings/providers/ProviderSettingsPage.tsx b/ui/desktop/src/components/settings/providers/ProviderSettingsPage.tsx
index aaad639ffe..989460906f 100644
--- a/ui/desktop/src/components/settings/providers/ProviderSettingsPage.tsx
+++ b/ui/desktop/src/components/settings/providers/ProviderSettingsPage.tsx
@@ -50,11 +50,10 @@ export default function ProviderSettings({
   }, []); // Intentionally not including loadProviders in deps to prevent reloading
 
   // This function will be passed to ProviderGrid for manual refreshes after config changes
-  const refreshProviders = useCallback(() => {
+  const refreshProviders = useCallback(async () => {
     if (initialLoadDone.current) {
-      getProviders(true).then((result) => {
-        if (result) setProviders(result);
-      });
+      const result = await getProviders(true);
+      if (result) setProviders(result);
     }
   }, [getProviders]);