diff --git a/ui/desktop/src/components/settings/providers/ProviderGrid.tsx b/ui/desktop/src/components/settings/providers/ProviderGrid.tsx
index 26397e471809..ee1e9e4aaac2 100644
--- a/ui/desktop/src/components/settings/providers/ProviderGrid.tsx
+++ b/ui/desktop/src/components/settings/providers/ProviderGrid.tsx
@@ -11,6 +11,7 @@ import { Plus } from 'lucide-react';
 import { Dialog, DialogContent, DialogHeader, DialogTitle } from '../../ui/dialog';
 import CustomProviderForm from './modal/subcomponents/forms/CustomProviderForm';
 import { SwitchModelModal } from '../models/subcomponents/SwitchModelModal';
+import { useModelAndProvider } from '../../ModelAndProviderContext';
 import type { View } from '../../../utils/navigationUtils';
 
 const GridLayout = memo(function GridLayout({ children }: { children: React.ReactNode }) {
@@ -65,10 +66,13 @@ function ProviderCards({
   const [showCustomProviderModal, setShowCustomProviderModal] = useState(false);
   const [showSwitchModelModal, setShowSwitchModelModal] = useState(false);
   const [switchModelProvider, setSwitchModelProvider] = useState<string | null>(null);
+  const [isActiveProvider, setIsActiveProvider] = useState(false);
+  const { getCurrentModelAndProvider } = useModelAndProvider();
   const [editingProvider, setEditingProvider] = useState<{
     id: string;
     config: DeclarativeProviderConfig;
     isEditable: boolean;
+    providerType: string;
   } | null>(null);
 
   const handleProviderLaunchWithModelSelection = useCallback((provider: ProviderDetails) => {
@@ -92,14 +96,24 @@ function ProviderCards({
             id: provider.name,
             config: result.data.config,
             isEditable: result.data.is_editable,
+            providerType: provider.provider_type,
           });
+
+          // Check if this is the active provider
+          try {
+            const providerModel = await getCurrentModelAndProvider();
+            setIsActiveProvider(provider.name === providerModel.provider);
+          } catch {
+            setIsActiveProvider(false);
+          }
+
           setShowCustomProviderModal(true);
         }
       } else {
         openModal(provider);
       }
     },
-    [openModal]
+    [openModal, getCurrentModelAndProvider]
   );
 
   const handleUpdateCustomProvider = useCallback(
@@ -124,9 +138,26 @@ function ProviderCards({
     [editingProvider, refreshProviders]
   );
 
+  const handleDeleteCustomProvider = useCallback(async () => {
+    if (!editingProvider) return;
+
+    const { removeCustomProvider } = await import('../../../api');
+    await removeCustomProvider({
+      path: { id: editingProvider.id },
+      throwOnError: true,
+    });
+    setShowCustomProviderModal(false);
+    setEditingProvider(null);
+    setIsActiveProvider(false);
+    if (refreshProviders) {
+      refreshProviders();
+    }
+  }, [editingProvider, refreshProviders]);
+
   const handleCloseModal = useCallback(() => {
     setShowCustomProviderModal(false);
     setEditingProvider(null);
+    setIsActiveProvider(false);
   }, []);
 
   const onCloseProviderConfig = useCallback(() => {
@@ -178,8 +209,10 @@ function ProviderCards({
   const providerCards = useMemo(() => {
     // providers needs to be an array
     const providersArray = Array.isArray(providers) ? providers : [];
-    // Sort providers alphabetically by name
-    const sortedProviders = [...providersArray].sort((a, b) => a.name.localeCompare(b.name));
+    // Sort providers alphabetically by display name
+    const sortedProviders = [...providersArray].sort((a, b) =>
+      a.metadata.display_name.localeCompare(b.metadata.display_name)
+    );
     const cards = sortedProviders.map((provider) => (
       <ProviderCard
         key={provider.name}
@@ -222,6 +255,10 @@ function ProviderCards({
             isEditable={editable}
             onSubmit={editingProvider ? handleUpdateCustomProvider : handleCreateCustomProvider}
             onCancel={handleCloseModal}
+            onDelete={
+              editingProvider?.providerType === 'Custom' ? handleDeleteCustomProvider : undefined
+            }
+            isActiveProvider={isActiveProvider}
           />
         </DialogContent>
       </Dialog>{' '}
diff --git a/ui/desktop/src/components/settings/providers/modal/subcomponents/forms/CustomProviderForm.tsx b/ui/desktop/src/components/settings/providers/modal/subcomponents/forms/CustomProviderForm.tsx
index 99d3cabc1441..be252a1735d8 100644
--- a/ui/desktop/src/components/settings/providers/modal/subcomponents/forms/CustomProviderForm.tsx
+++ b/ui/desktop/src/components/settings/providers/modal/subcomponents/forms/CustomProviderForm.tsx
@@ -4,10 +4,13 @@ import { Select } from '../../../../../ui/Select';
 import { Button } from '../../../../../ui/button';
 import { SecureStorageNotice } from '../SecureStorageNotice';
 import { UpdateCustomProviderRequest } from '../../../../../../api';
+import { Trash2, AlertTriangle } from 'lucide-react';
 
 interface CustomProviderFormProps {
   onSubmit: (data: UpdateCustomProviderRequest) => void;
   onCancel: () => void;
+  onDelete?: () => Promise<void>;
+  isActiveProvider?: boolean;
   initialData: UpdateCustomProviderRequest | null;
   isEditable?: boolean;
 }
@@ -15,6 +18,8 @@ interface CustomProviderFormProps {
 export default function CustomProviderForm({
   onSubmit,
   onCancel,
+  onDelete,
+  isActiveProvider = false,
   initialData,
   isEditable,
 }: CustomProviderFormProps) {
@@ -26,6 +31,7 @@ export default function CustomProviderForm({
   const [requiresApiKey, setRequiresApiKey] = useState(false);
   const [supportsStreaming, setSupportsStreaming] = useState(true);
   const [validationErrors, setValidationErrors] = useState<Record<string, string>>({});
+  const [showDeleteConfirmation, setShowDeleteConfirmation] = useState(false);
 
   useEffect(() => {
     if (initialData) {
@@ -257,12 +263,62 @@ export default function CustomProviderForm({
         </>
       )}
       <SecureStorageNotice />
-      <div className="flex justify-end space-x-2 pt-4">
-        <Button type="button" variant="outline" onClick={onCancel}>
-          Cancel
-        </Button>
-        <Button type="submit">{initialData ? 'Update Provider' : 'Create Provider'}</Button>
-      </div>
+
+      {showDeleteConfirmation ? (
+        <div className="pt-4 space-y-3">
+          {isActiveProvider ? (
+            <div className="px-4 py-3 bg-yellow-600/20 border border-yellow-500/30 rounded">
+              <p className="text-yellow-500 text-sm flex items-start">
+                <AlertTriangle className="h-4 w-4 mr-2 mt-0.5 flex-shrink-0" />
+                <span>
+                  You cannot delete this provider while it's currently in use. Please switch to a
+                  different model first.
+                </span>
+              </p>
+            </div>
+          ) : (
+            <div className="px-4 py-3 bg-red-900/20 border border-red-500/30 rounded">
+              <p className="text-red-400 text-sm">
+                Are you sure you want to delete this custom provider? This will permanently remove
+                the provider and its stored API key. This action cannot be undone.
+              </p>
+            </div>
+          )}
+          <div className="flex justify-end space-x-2">
+            <Button
+              type="button"
+              variant="outline"
+              onClick={() => setShowDeleteConfirmation(false)}
+            >
+              Cancel
+            </Button>
+            {!isActiveProvider && (
+              <Button type="button" variant="destructive" onClick={onDelete}>
+                <Trash2 className="h-4 w-4 mr-2" />
+                Confirm Delete
+              </Button>
+            )}
+          </div>
+        </div>
+      ) : (
+        <div className="flex justify-end space-x-2 pt-4">
+          {initialData && onDelete && (
+            <Button
+              type="button"
+              variant="outline"
+              className="text-red-500 hover:text-red-600 mr-auto"
+              onClick={() => setShowDeleteConfirmation(true)}
+            >
+              <Trash2 className="h-4 w-4 mr-2" />
+              Delete Provider
+            </Button>
+          )}
+          <Button type="button" variant="outline" onClick={onCancel}>
+            Cancel
+          </Button>
+          <Button type="submit">{initialData ? 'Update Provider' : 'Create Provider'}</Button>
+        </div>
+      )}
     </form>
   );
 }