diff --git a/src/agent/client.ts b/src/agent/client.ts
index 0f90fe9..b277a1b 100644
--- a/src/agent/client.ts
+++ b/src/agent/client.ts
@@ -53,21 +53,11 @@ export async function getClient() {
     process.exit(1);
   }
 
-  // Auto-cache: if env vars are set but not in settings, write them to settings
-  let needsUpdate = false;
-  const updatedEnv = { ...settings.env };
-
+  // Auto-cache: if LETTA_API_KEY is set in env but not in settings, write it to settings
+  // Note: LETTA_BASE_URL is intentionally NOT cached - it should only come from env vars
   if (process.env.LETTA_API_KEY && !settings.env?.LETTA_API_KEY) {
+    const updatedEnv = { ...settings.env };
     updatedEnv.LETTA_API_KEY = process.env.LETTA_API_KEY;
-    needsUpdate = true;
-  }
-
-  if (process.env.LETTA_BASE_URL && !settings.env?.LETTA_BASE_URL) {
-    updatedEnv.LETTA_BASE_URL = process.env.LETTA_BASE_URL;
-    needsUpdate = true;
-  }
-
-  if (needsUpdate) {
     settingsManager.updateSettings({ env: updatedEnv });
   }
 
diff --git a/src/auth/setup-ui.tsx b/src/auth/setup-ui.tsx
index 9849c74..a89ce42 100644
--- a/src/auth/setup-ui.tsx
+++ b/src/auth/setup-ui.tsx
@@ -70,12 +70,13 @@ export function SetupUI({ onComplete }: SetupUIProps) {
       )
         .then((tokens) => {
           // Save tokens
+          // Note: LETTA_BASE_URL is intentionally NOT saved to settings
+          // It should only come from environment variables
           const now = Date.now();
           settingsManager.updateSettings({
             env: {
               ...settingsManager.getSettings().env,
               LETTA_API_KEY: tokens.access_token,
-              LETTA_BASE_URL: OAUTH_CONFIG.apiBaseUrl,
             },
             refreshToken: tokens.refresh_token,
             tokenExpiresAt: now + tokens.expires_in * 1000,
diff --git a/src/cli/App.tsx b/src/cli/App.tsx
index b044646..3afd3d5 100644
--- a/src/cli/App.tsx
+++ b/src/cli/App.tsx
@@ -643,7 +643,8 @@ export default function App({
             const currentSettings = settingsManager.getSettings();
             const newEnv = { ...currentSettings.env };
             delete newEnv.LETTA_API_KEY;
-            delete newEnv.LETTA_BASE_URL;
+            // Note: LETTA_BASE_URL is intentionally NOT deleted from settings
+            // because it should not be stored there in the first place
 
             settingsManager.updateSettings({
               env: newEnv,
diff --git a/src/tests/settings-manager.test.ts b/src/tests/settings-manager.test.ts
index 8c7ee22..5c52a52 100644
--- a/src/tests/settings-manager.test.ts
+++ b/src/tests/settings-manager.test.ts
@@ -170,6 +170,20 @@ describe("Settings Manager - Global Settings", () => {
     });
   });
 
+  test("LETTA_BASE_URL should not be cached in settings", () => {
+    // This test verifies that LETTA_BASE_URL is NOT persisted to settings
+    // It should only come from environment variables
+    settingsManager.updateSettings({
+      env: {
+        LETTA_API_KEY: "sk-test-123",
+        // LETTA_BASE_URL should not be included here
+      },
+    });
+
+    const settings = settingsManager.getSettings();
+    expect(settings.env?.LETTA_BASE_URL).toBeUndefined();
+  });
+
   test("Settings persist to disk", async () => {
     settingsManager.updateSettings({
       uiMode: "rich",