diff --git a/ui/litellm-dashboard/src/components/organisms/create_key_button.test.tsx b/ui/litellm-dashboard/src/components/organisms/create_key_button.test.tsx
index eef7292dac1..8cf97cde6ed 100644
--- a/ui/litellm-dashboard/src/components/organisms/create_key_button.test.tsx
+++ b/ui/litellm-dashboard/src/components/organisms/create_key_button.test.tsx
@@ -119,7 +119,7 @@ vi.mock("antd", () => {
 
   Form.useForm = () => [formMock];
 
-  const Select = ({ children, onChange, ...props }: { children?: any; onChange?: (value: string) => void }) =>
+  const Select = ({ children, onChange, options, ...props }: { children?: any; onChange?: (value: string) => void; options?: Array<{ value: string; label: string }> }) =>
     React.createElement(
       "select",
       {
@@ -127,6 +127,7 @@ vi.mock("antd", () => {
         onChange: (event: any) => onChange?.(event.target.value),
       },
       children,
+      options?.map((opt: any) => React.createElement("option", { key: opt.value, value: opt.value }, opt.label)),
     );
 
   Select.Option = ({ children, ...props }: { children?: any }) =>
@@ -238,6 +239,16 @@ vi.mock("../key_team_helpers/fetch_available_models_team_key", () => ({
   getModelDisplayName: (model: string) => model,
 }));
 
+vi.mock("@/app/(dashboard)/hooks/tags/useTags", () => ({
+  useTags: vi.fn().mockReturnValue({
+    data: [
+      { name: "production", description: "Prod tag", models: [], created_at: "2026-01-01", updated_at: "2026-01-01" },
+      { name: "staging", description: "Staging tag", models: [], created_at: "2026-01-01", updated_at: "2026-01-01" },
+    ],
+    isLoading: false,
+  }),
+}));
+
 vi.mock("@/app/(dashboard)/hooks/projects/useProjects", () => ({
   useProjects: vi.fn().mockReturnValue({ data: [], isLoading: false }),
 }));
@@ -525,4 +536,19 @@ describe("CreateKey", () => {
       expect(formStateRef.current["organization_id"]).toBe("org-1");
     });
   });
+
+  describe("tags dropdown", () => {
+    it("should populate tags dropdown with options from useTags hook", async () => {
+      renderWithProviders(<CreateKey {...defaultProps} />);
+
+      act(() => {
+        fireEvent.click(screen.getByRole("button", { name: /create new key/i }));
+      });
+
+      await waitFor(() => {
+        expect(screen.getByText("production")).toBeInTheDocument();
+        expect(screen.getByText("staging")).toBeInTheDocument();
+      });
+    });
+  });
 });
diff --git a/ui/litellm-dashboard/src/components/organisms/create_key_button.tsx b/ui/litellm-dashboard/src/components/organisms/create_key_button.tsx
index d0a7a909d6e..0c0e4ccd12d 100644
--- a/ui/litellm-dashboard/src/components/organisms/create_key_button.tsx
+++ b/ui/litellm-dashboard/src/components/organisms/create_key_button.tsx
@@ -2,6 +2,7 @@
 import { keyKeys } from "@/app/(dashboard)/hooks/keys/useKeys";
 import { useOrganizations } from "@/app/(dashboard)/hooks/organizations/useOrganizations";
 import { useProjects } from "@/app/(dashboard)/hooks/projects/useProjects";
+import { useTags } from "@/app/(dashboard)/hooks/tags/useTags";
 import { useUISettings } from "@/app/(dashboard)/hooks/uiSettings/useUISettings";
 import useAuthorized from "@/app/(dashboard)/hooks/useAuthorized";
 import { formatNumberWithCommas } from "@/utils/dataUtils";
@@ -165,8 +166,12 @@ const CreateKey: React.FC<CreateKeyProps> = ({ team, teams, data, addKey, autoOp
   const { data: organizations, isLoading: isOrganizationsLoading } = useOrganizations();
   const { data: projects, isLoading: isProjectsLoading } = useProjects();
   const { data: uiSettingsData } = useUISettings();
+  const { data: tagsData } = useTags();
   const enableProjectsUI = Boolean(uiSettingsData?.values?.enable_projects_ui);
   const disableCustomApiKeys = Boolean(uiSettingsData?.values?.disable_custom_api_keys);
+  const tagOptions = tagsData
+    ? Object.values(tagsData).map((tag) => ({ value: tag.name, label: tag.name }))
+    : [];
   const queryClient = useQueryClient();
   const [form] = Form.useForm();
   const [isModalVisible, setIsModalVisible] = useState(false);
@@ -175,7 +180,6 @@ const CreateKey: React.FC<CreateKeyProps> = ({ team, teams, data, addKey, autoOp
   const [userModels, setUserModels] = useState<string[]>([]);
   const [modelsToPick, setModelsToPick] = useState<string[]>([]);
   const [keyOwner, setKeyOwner] = useState("you");
-  const [predefinedTags, setPredefinedTags] = useState(getPredefinedTags(data));
   const [hasPrefilled, setHasPrefilled] = useState(false);
   const [pendingPrefillModels, setPendingPrefillModels] = useState<string[] | null>(null);
   const [guardrailsList, setGuardrailsList] = useState<string[]>([]);
@@ -1340,9 +1344,9 @@ const CreateKey: React.FC<CreateKeyProps> = ({ team, teams, data, addKey, autoOp
                     <Select
                       mode="tags"
                       style={{ width: "100%" }}
-                      placeholder="Enter tags"
+                      placeholder="Select or enter tags"
                       tokenSeparators={[","]}
-                      options={predefinedTags}
+                      options={tagOptions}
                     />
                   </Form.Item>
                   <Accordion className="mt-4 mb-4">