diff --git a/webview-ui/src/components/settings/ApiOptions.tsx b/webview-ui/src/components/settings/ApiOptions.tsx
index 13a8ab4848..904081cc84 100644
--- a/webview-ui/src/components/settings/ApiOptions.tsx
+++ b/webview-ui/src/components/settings/ApiOptions.tsx
@@ -376,11 +376,37 @@ const ApiOptions = ({
 
 	// Convert providers to SearchableSelect options
 	const providerOptions = useMemo(() => {
-		return filterProviders(PROVIDERS, organizationAllowList).map(({ value, label }) => ({
+		// First filter by organization allow list
+		const allowedProviders = filterProviders(PROVIDERS, organizationAllowList)
+
+		// Then filter out static providers that have no models (unless currently selected)
+		const providersWithModels = allowedProviders.filter(({ value }) => {
+			// Always show the currently selected provider to avoid breaking existing configurations
+			// Use apiConfiguration.apiProvider directly since that's what's actually selected
+			if (value === apiConfiguration.apiProvider) {
+				return true
+			}
+
+			// Check if this is a static provider (has models in MODELS_BY_PROVIDER)
+			const staticModels = MODELS_BY_PROVIDER[value as ProviderName]
+
+			// If it's a static provider, check if it has any models after filtering
+			if (staticModels) {
+				const filteredModels = filterModels(staticModels, value as ProviderName, organizationAllowList)
+				// Hide the provider if it has no models after filtering
+				return filteredModels && Object.keys(filteredModels).length > 0
+			}
+
+			// If it's a dynamic provider (not in MODELS_BY_PROVIDER), always show it
+			// to avoid race conditions with async model fetching
+			return true
+		})
+
+		return providersWithModels.map(({ value, label }) => ({
 			value,
 			label,
 		}))
-	}, [organizationAllowList])
+	}, [organizationAllowList, apiConfiguration.apiProvider])
 
 	return (
 		<div className="flex flex-col gap-3">
diff --git a/webview-ui/src/components/settings/__tests__/ApiOptions.provider-filtering.spec.tsx b/webview-ui/src/components/settings/__tests__/ApiOptions.provider-filtering.spec.tsx
new file mode 100644
index 0000000000..52048de95d
--- /dev/null
+++ b/webview-ui/src/components/settings/__tests__/ApiOptions.provider-filtering.spec.tsx
@@ -0,0 +1,289 @@
+import { describe, it, expect, vi } from "vitest"
+import { render, screen } from "@testing-library/react"
+import { QueryClient, QueryClientProvider } from "@tanstack/react-query"
+import ApiOptions from "../ApiOptions"
+import { MODELS_BY_PROVIDER, PROVIDERS } from "../constants"
+import type { ProviderSettings } from "@roo-code/types"
+import type { OrganizationAllowList } from "@roo/cloud"
+import { useExtensionState } from "@src/context/ExtensionStateContext"
+import { useSelectedModel } from "@src/components/ui/hooks/useSelectedModel"
+
+// Mock the extension state context
+vi.mock("@src/context/ExtensionStateContext", () => ({
+	useExtensionState: vi.fn(() => ({
+		organizationAllowList: undefined,
+		cloudIsAuthenticated: false,
+	})),
+}))
+
+// Mock the translation hook
+vi.mock("@src/i18n/TranslationContext", () => ({
+	useAppTranslation: () => ({
+		t: (key: string) => key,
+	}),
+}))
+
+// Mock vscode
+vi.mock("@src/utils/vscode", () => ({
+	vscode: {
+		postMessage: vi.fn(),
+	},
+}))
+
+// Mock the router models hook
+vi.mock("@src/components/ui/hooks/useRouterModels", () => ({
+	useRouterModels: () => ({
+		data: null,
+		refetch: vi.fn(),
+	}),
+}))
+
+// Mock the selected model hook
+vi.mock("@src/components/ui/hooks/useSelectedModel", () => ({
+	useSelectedModel: vi.fn(() => ({
+		provider: "anthropic",
+		id: "claude-3-5-sonnet-20241022",
+		info: null,
+	})),
+}))
+
+// Mock the OpenRouter model providers hook
+vi.mock("@src/components/ui/hooks/useOpenRouterModelProviders", () => ({
+	useOpenRouterModelProviders: () => ({
+		data: null,
+	}),
+	OPENROUTER_DEFAULT_PROVIDER_NAME: "Auto",
+}))
+
+// Mock the SearchableSelect component to capture the options passed to it
+vi.mock("@src/components/ui", () => ({
+	SearchableSelect: ({ options, ...props }: any) => {
+		// Store the options in a data attribute for testing
+		return (
+			<div data-testid="searchable-select" data-options={JSON.stringify(options)} {...props}>
+				{options.map((opt: any) => (
+					<div key={opt.value} data-testid={`option-${opt.value}`}>
+						{opt.label}
+					</div>
+				))}
+			</div>
+		)
+	},
+	Select: ({ children }: any) => <div>{children}</div>,
+	SelectTrigger: ({ children }: any) => <div>{children}</div>,
+	SelectValue: ({ placeholder }: any) => <div>{placeholder}</div>,
+	SelectContent: ({ children }: any) => <div>{children}</div>,
+	SelectItem: ({ children, value }: any) => <div data-value={value}>{children}</div>,
+	Collapsible: ({ children }: any) => <div>{children}</div>,
+	CollapsibleTrigger: ({ children }: any) => <div>{children}</div>,
+	CollapsibleContent: ({ children }: any) => <div>{children}</div>,
+	Slider: ({ children, ...props }: any) => <div {...props}>{children}</div>,
+	Button: ({ children, ...props }: any) => <button {...props}>{children}</button>,
+}))
+
+describe("ApiOptions Provider Filtering", () => {
+	const queryClient = new QueryClient({
+		defaultOptions: {
+			queries: { retry: false },
+		},
+	})
+
+	const defaultProps = {
+		uriScheme: "vscode",
+		apiConfiguration: {
+			apiProvider: "anthropic",
+			apiKey: "test-key",
+		} as ProviderSettings,
+		setApiConfigurationField: vi.fn(),
+		fromWelcomeView: false,
+		errorMessage: undefined,
+		setErrorMessage: vi.fn(),
+	}
+
+	const renderWithProviders = (props = defaultProps) => {
+		return render(
+			<QueryClientProvider client={queryClient}>
+				<ApiOptions {...props} />
+			</QueryClientProvider>,
+		)
+	}
+
+	it("should show all providers when no organization allow list is provided", () => {
+		renderWithProviders()
+
+		const selectElement = screen.getByTestId("provider-select")
+		const options = JSON.parse(selectElement.getAttribute("data-options") || "[]")
+
+		// Should include both static and dynamic providers
+		const providerValues = options.map((opt: any) => opt.value)
+		expect(providerValues).toContain("anthropic") // static provider
+		expect(providerValues).toContain("openrouter") // dynamic provider
+		expect(providerValues).toContain("ollama") // dynamic provider
+	})
+
+	it("should hide static providers with empty models", () => {
+		// Mock MODELS_BY_PROVIDER to have an empty provider
+		const _originalModels = { ...MODELS_BY_PROVIDER }
+		;(MODELS_BY_PROVIDER as any).emptyProvider = {}
+
+		// Add the empty provider to PROVIDERS
+		PROVIDERS.push({ value: "emptyProvider", label: "Empty Provider" })
+
+		renderWithProviders()
+
+		const selectElement = screen.getByTestId("provider-select")
+		const options = JSON.parse(selectElement.getAttribute("data-options") || "[]")
+		const providerValues = options.map((opt: any) => opt.value)
+
+		// Should NOT include the empty static provider
+		expect(providerValues).not.toContain("emptyProvider")
+
+		// Cleanup
+		delete (MODELS_BY_PROVIDER as any).emptyProvider
+		PROVIDERS.pop()
+	})
+
+	it("should always show dynamic providers even if they have no models yet", () => {
+		renderWithProviders()
+
+		const selectElement = screen.getByTestId("provider-select")
+		const options = JSON.parse(selectElement.getAttribute("data-options") || "[]")
+		const providerValues = options.map((opt: any) => opt.value)
+
+		// Dynamic providers (not in MODELS_BY_PROVIDER) should always be shown
+		expect(providerValues).toContain("openrouter")
+		expect(providerValues).toContain("ollama")
+		expect(providerValues).toContain("lmstudio")
+		expect(providerValues).toContain("litellm")
+		expect(providerValues).toContain("glama")
+		expect(providerValues).toContain("unbound")
+		expect(providerValues).toContain("requesty")
+		expect(providerValues).toContain("io-intelligence")
+	})
+
+	it("should filter static providers based on organization allow list", () => {
+		// Create a mock organization allow list that only allows certain models
+		const allowList: OrganizationAllowList = {
+			allowAll: false,
+			providers: {
+				anthropic: {
+					allowAll: false,
+					models: ["claude-3-5-sonnet-20241022"], // Only allow one model
+				},
+				gemini: {
+					allowAll: false,
+					models: [], // No models allowed
+				},
+				openrouter: {
+					allowAll: true, // Dynamic provider with all models allowed
+				},
+			},
+		}
+
+		// Mock the extension state with the allow list
+		vi.mocked(useExtensionState).mockReturnValue({
+			organizationAllowList: allowList,
+			cloudIsAuthenticated: false,
+		} as any)
+
+		renderWithProviders()
+
+		const selectElement = screen.getByTestId("provider-select")
+		const options = JSON.parse(selectElement.getAttribute("data-options") || "[]")
+		const providerValues = options.map((opt: any) => opt.value)
+
+		// Should include anthropic (has allowed models)
+		expect(providerValues).toContain("anthropic")
+
+		// Should NOT include gemini (no allowed models)
+		expect(providerValues).not.toContain("gemini")
+
+		// Should include openrouter (dynamic provider)
+		expect(providerValues).toContain("openrouter")
+
+		// Should NOT include providers not in the allow list
+		expect(providerValues).not.toContain("openai-native")
+		expect(providerValues).not.toContain("mistral")
+	})
+
+	it("should show static provider when allowAll is true for that provider", () => {
+		const allowList: OrganizationAllowList = {
+			allowAll: false,
+			providers: {
+				anthropic: {
+					allowAll: true, // Allow all models for this provider
+				},
+			},
+		}
+
+		vi.mocked(useExtensionState).mockReturnValue({
+			organizationAllowList: allowList,
+			cloudIsAuthenticated: false,
+		} as any)
+
+		renderWithProviders()
+
+		const selectElement = screen.getByTestId("provider-select")
+		const options = JSON.parse(selectElement.getAttribute("data-options") || "[]")
+		const providerValues = options.map((opt: any) => opt.value)
+
+		// Should include anthropic since allowAll is true
+		expect(providerValues).toContain("anthropic")
+	})
+
+	it("should always show currently selected provider even if it has no models", () => {
+		// Add an empty static provider to test
+		;(MODELS_BY_PROVIDER as any).testEmptyProvider = {}
+		// Add the provider to the PROVIDERS list
+		PROVIDERS.push({ value: "testEmptyProvider", label: "Test Empty Provider" })
+
+		// Create a mock organization allow list that allows the provider but no models
+		const allowList: OrganizationAllowList = {
+			allowAll: false,
+			providers: {
+				testEmptyProvider: {
+					allowAll: true, // Allow the provider itself, but it has no models in MODELS_BY_PROVIDER
+				},
+				anthropic: {
+					allowAll: true, // Allow anthropic for comparison
+				},
+			},
+		}
+
+		vi.mocked(useExtensionState).mockReturnValue({
+			organizationAllowList: allowList,
+			cloudIsAuthenticated: false,
+		} as any)
+
+		// Mock the selected model hook to return testEmptyProvider as the selected provider
+		;(useSelectedModel as any).mockReturnValue({
+			provider: "testEmptyProvider",
+			id: undefined,
+			info: null,
+		})
+
+		// Render with testEmptyProvider as the selected provider
+		const props = {
+			...defaultProps,
+			apiConfiguration: {
+				...defaultProps.apiConfiguration,
+				apiProvider: "testEmptyProvider" as any,
+			} as ProviderSettings,
+		}
+
+		renderWithProviders(props)
+
+		const selectElement = screen.getByTestId("provider-select")
+		const options = JSON.parse(selectElement.getAttribute("data-options") || "[]")
+		const providerValues = options.map((opt: any) => opt.value)
+
+		// Should include testEmptyProvider even though it has no models (empty object in MODELS_BY_PROVIDER), because it's currently selected
+		expect(providerValues).toContain("testEmptyProvider")
+		// Should also include anthropic since it has allowAll: true
+		expect(providerValues).toContain("anthropic")
+
+		// Cleanup
+		delete (MODELS_BY_PROVIDER as any).testEmptyProvider
+		PROVIDERS.pop()
+	})
+})