diff --git a/api/routers/models.py b/api/routers/models.py
index ff2eb28..853dd98 100644
--- a/api/routers/models.py
+++ b/api/routers/models.py
@@ -67,17 +67,29 @@ async def create_model(model_data: ModelCreate):
         valid_types = ["language", "embedding", "text_to_speech", "speech_to_text"]
         if model_data.type not in valid_types:
             raise HTTPException(
-                status_code=400, 
+                status_code=400,
                 detail=f"Invalid model type. Must be one of: {valid_types}"
             )
-        
+
+        # Check for duplicate model name under the same provider (case-insensitive)
+        from open_notebook.database.repository import repo_query
+        existing = await repo_query(
+            "SELECT * FROM model WHERE string::lowercase(provider) = $provider AND string::lowercase(name) = $name LIMIT 1",
+            {"provider": model_data.provider.lower(), "name": model_data.name.lower()}
+        )
+        if existing:
+            raise HTTPException(
+                status_code=400,
+                detail=f"Model '{model_data.name}' already exists for provider '{model_data.provider}'"
+            )
+
         new_model = Model(
             name=model_data.name,
             provider=model_data.provider,
             type=model_data.type,
         )
         await new_model.save()
-        
+
         return ModelResponse(
             id=new_model.id or "",
             name=new_model.name,
@@ -86,6 +98,8 @@ async def create_model(model_data: ModelCreate):
             created=str(new_model.created),
             updated=str(new_model.updated),
         )
+    except HTTPException:
+        raise
     except InvalidInputError as e:
         raise HTTPException(status_code=400, detail=str(e))
     except Exception as e:
diff --git a/frontend/src/app/(dashboard)/models/components/AddModelForm.tsx b/frontend/src/app/(dashboard)/models/components/AddModelForm.tsx
index 0d2b21b..a287a21 100644
--- a/frontend/src/app/(dashboard)/models/components/AddModelForm.tsx
+++ b/frontend/src/app/(dashboard)/models/components/AddModelForm.tsx
@@ -26,7 +26,7 @@ export function AddModelForm({ modelType, providers }: AddModelFormProps) {
   })
 
   // Get available providers that support this model type
-  const availableProviders = providers.available.filter(provider => 
+  const availableProviders = providers.available.filter(provider =>
     providers.supported_types[provider]?.includes(modelType)
   )
 
@@ -63,8 +63,15 @@ export function AddModelForm({ modelType, providers }: AddModelFormProps) {
     )
   }
 
+  const handleOpenChange = (isOpen: boolean) => {
+    setOpen(isOpen)
+    if (!isOpen) {
+      reset()
+    }
+  }
+
   return (
-    <Dialog open={open} onOpenChange={setOpen}>
+    <Dialog open={open} onOpenChange={handleOpenChange}>
       <DialogTrigger asChild>
         <Button size="sm">
           <Plus className="h-4 w-4 mr-2" />
@@ -109,7 +116,7 @@ export function AddModelForm({ modelType, providers }: AddModelFormProps) {
               <p className="text-sm text-destructive mt-1">{errors.name.message}</p>
             )}
             <p className="text-xs text-muted-foreground mt-1">
-              {modelType === 'language' && watch('provider') === 'azure' && 
+              {modelType === 'language' && watch('provider') === 'azure' &&
                 'For Azure, use the deployment name as the model name'}
             </p>
           </div>
diff --git a/frontend/src/lib/hooks/use-models.ts b/frontend/src/lib/hooks/use-models.ts
index 132448a..8a48180 100644
--- a/frontend/src/lib/hooks/use-models.ts
+++ b/frontend/src/lib/hooks/use-models.ts
@@ -38,10 +38,11 @@ export function useCreateModel() {
         description: 'Model created successfully',
       })
     },
-    onError: () => {
+    onError: (error: unknown) => {
+      const errorMessage = (error as { response?: { data?: { detail?: string } } })?.response?.data?.detail || 'Failed to create model'
       toast({
         title: 'Error',
-        description: 'Failed to create model',
+        description: errorMessage,
         variant: 'destructive',
       })
     },
diff --git a/pyproject.toml b/pyproject.toml
index d691cc1..c2b1c25 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -33,7 +33,6 @@ dependencies = [
     "groq>=0.12.0",
     "python-dotenv>=1.0.1",
     "httpx[socks]>=0.27.0",
-    "nest-asyncio>=1.6.0",
     "content-core>=1.0.2",
     "ai-prompter>=0.3",
     "esperanto>=2.4.1",
diff --git a/tests/conftest.py b/tests/conftest.py
index 6e316e6..cab9135 100644
--- a/tests/conftest.py
+++ b/tests/conftest.py
@@ -9,11 +9,11 @@ import os
 import sys
 from pathlib import Path
 
+# Ensure password auth is disabled for tests BEFORE any imports
+# The PasswordAuthMiddleware skips auth when this env var is not set
+# Set to empty string instead of deleting to prevent it from being reloaded
+os.environ["OPEN_NOTEBOOK_PASSWORD"] = ""
+
 # Add the project root to the Python path
 project_root = Path(__file__).parent.parent
 sys.path.insert(0, str(project_root))
-
-# Ensure password auth is disabled for tests
-# The PasswordAuthMiddleware skips auth when this env var is not set
-if "OPEN_NOTEBOOK_PASSWORD" in os.environ:
-    del os.environ["OPEN_NOTEBOOK_PASSWORD"]
diff --git a/tests/test_models_api.py b/tests/test_models_api.py
index 91ac3e7..08c4938 100644
--- a/tests/test_models_api.py
+++ b/tests/test_models_api.py
@@ -1,11 +1,84 @@
-from unittest.mock import patch
+from unittest.mock import AsyncMock, patch
 
 import pytest
 from fastapi.testclient import TestClient
 
-from api.main import app
 
-client = TestClient(app)
+@pytest.fixture
+def client():
+    """Create test client after environment variables have been cleared by conftest."""
+    from api.main import app
+    return TestClient(app)
+
+
+class TestModelCreation:
+    """Test suite for Model Creation endpoint."""
+
+    @pytest.mark.asyncio
+    @patch("open_notebook.database.repository.repo_query")
+    @patch("api.routers.models.Model.save")
+    async def test_create_duplicate_model_same_case(self, mock_save, mock_repo_query, client):
+        """Test that creating a duplicate model with same case returns 400."""
+        # Mock repo_query to return a duplicate model
+        mock_repo_query.return_value = [{"id": "model:123", "name": "gpt-4", "provider": "openai", "type": "language"}]
+
+        # Attempt to create duplicate
+        response = client.post(
+            "/api/models",
+            json={
+                "name": "gpt-4",
+                "provider": "openai",
+                "type": "language"
+            }
+        )
+
+        assert response.status_code == 400
+        assert response.json()["detail"] == "Model 'gpt-4' already exists for provider 'openai'"
+
+    @pytest.mark.asyncio
+    @patch("open_notebook.database.repository.repo_query")
+    @patch("api.routers.models.Model.save")
+    async def test_create_duplicate_model_different_case(self, mock_save, mock_repo_query, client):
+        """Test that creating a duplicate model with different case returns 400."""
+        # Mock repo_query to return a duplicate model (case-insensitive match)
+        mock_repo_query.return_value = [{"id": "model:123", "name": "gpt-4", "provider": "openai", "type": "language"}]
+
+        # Attempt to create duplicate with different case
+        response = client.post(
+            "/api/models",
+            json={
+                "name": "GPT-4",
+                "provider": "OpenAI",
+                "type": "language"
+            }
+        )
+
+        assert response.status_code == 400
+        assert response.json()["detail"] == "Model 'GPT-4' already exists for provider 'OpenAI'"
+
+    @pytest.mark.asyncio
+    @patch("open_notebook.database.repository.repo_query")
+    async def test_create_same_model_name_different_provider(self, mock_repo_query, client):
+        """Test that creating a model with same name but different provider is allowed."""
+        from open_notebook.domain.models import Model
+
+        # Mock repo_query to return empty (no duplicate found for different provider)
+        mock_repo_query.return_value = []
+
+        # Patch the save method on the Model class
+        with patch.object(Model, 'save', new_callable=AsyncMock) as mock_save:
+            # Attempt to create same model name with different provider (anthropic)
+            response = client.post(
+                "/api/models",
+                json={
+                    "name": "gpt-4",
+                    "provider": "anthropic",
+                    "type": "language"
+                }
+            )
+
+            # Should succeed because provider is different
+            assert response.status_code == 200
 
 
 class TestModelsProviderAvailability:
@@ -13,7 +86,7 @@ class TestModelsProviderAvailability:
 
     @patch("api.routers.models.os.environ.get")
     @patch("api.routers.models.AIFactory.get_available_providers")
-    def test_generic_env_var_enables_all_modes(self, mock_esperanto, mock_env):
+    def test_generic_env_var_enables_all_modes(self, mock_esperanto, mock_env, client):
         """Test that OPENAI_COMPATIBLE_BASE_URL enables all 4 modes."""
 
         # Mock environment: only generic var is set
@@ -51,7 +124,7 @@ class TestModelsProviderAvailability:
 
     @patch("api.routers.models.os.environ.get")
     @patch("api.routers.models.AIFactory.get_available_providers")
-    def test_mode_specific_env_vars_llm_embedding(self, mock_esperanto, mock_env):
+    def test_mode_specific_env_vars_llm_embedding(self, mock_esperanto, mock_env, client):
         """Test mode-specific env vars (LLM + EMBEDDING) enable only those 2 modes."""
 
         # Mock environment: only LLM and EMBEDDING specific vars are set
@@ -91,7 +164,7 @@ class TestModelsProviderAvailability:
 
     @patch("api.routers.models.os.environ.get")
     @patch("api.routers.models.AIFactory.get_available_providers")
-    def test_no_env_vars_set(self, mock_esperanto, mock_env):
+    def test_no_env_vars_set(self, mock_esperanto, mock_env, client):
         """Test that openai-compatible is not available when no env vars are set."""
 
         # Mock environment: no openai-compatible vars are set
@@ -120,7 +193,7 @@ class TestModelsProviderAvailability:
 
     @patch("api.routers.models.os.environ.get")
     @patch("api.routers.models.AIFactory.get_available_providers")
-    def test_mixed_config_generic_and_mode_specific(self, mock_esperanto, mock_env):
+    def test_mixed_config_generic_and_mode_specific(self, mock_esperanto, mock_env, client):
         """Test mixed config: generic + mode-specific (generic should enable all)."""
 
         # Mock environment: both generic and mode-specific vars are set
@@ -160,7 +233,7 @@ class TestModelsProviderAvailability:
 
     @patch("api.routers.models.os.environ.get")
     @patch("api.routers.models.AIFactory.get_available_providers")
-    def test_individual_mode_llm_only(self, mock_esperanto, mock_env):
+    def test_individual_mode_llm_only(self, mock_esperanto, mock_env, client):
         """Test individual mode-specific var (LLM only)."""
 
         # Mock environment: only LLM specific var is set
@@ -190,7 +263,7 @@ class TestModelsProviderAvailability:
 
     @patch("api.routers.models.os.environ.get")
     @patch("api.routers.models.AIFactory.get_available_providers")
-    def test_individual_mode_embedding_only(self, mock_esperanto, mock_env):
+    def test_individual_mode_embedding_only(self, mock_esperanto, mock_env, client):
         """Test individual mode-specific var (EMBEDDING only)."""
 
         # Mock environment: only EMBEDDING specific var is set
@@ -220,7 +293,7 @@ class TestModelsProviderAvailability:
 
     @patch("api.routers.models.os.environ.get")
     @patch("api.routers.models.AIFactory.get_available_providers")
-    def test_individual_mode_stt_only(self, mock_esperanto, mock_env):
+    def test_individual_mode_stt_only(self, mock_esperanto, mock_env, client):
         """Test individual mode-specific var (STT only)."""
 
         # Mock environment: only STT specific var is set
@@ -250,7 +323,7 @@ class TestModelsProviderAvailability:
 
     @patch("api.routers.models.os.environ.get")
     @patch("api.routers.models.AIFactory.get_available_providers")
-    def test_individual_mode_tts_only(self, mock_esperanto, mock_env):
+    def test_individual_mode_tts_only(self, mock_esperanto, mock_env, client):
         """Test individual mode-specific var (TTS only)."""
 
         # Mock environment: only TTS specific var is set
diff --git a/uv.lock b/uv.lock
index 16f6934..8a0a4b1 100644
--- a/uv.lock
+++ b/uv.lock
@@ -2241,7 +2241,6 @@ dependencies = [
     { name = "langgraph" },
     { name = "langgraph-checkpoint-sqlite" },
     { name = "loguru" },
-    { name = "nest-asyncio" },
     { name = "podcast-creator" },
     { name = "pydantic" },
     { name = "python-dotenv" },
@@ -2294,7 +2293,6 @@ requires-dist = [
     { name = "langgraph-checkpoint-sqlite", specifier = ">=2.0.0" },
     { name = "loguru", specifier = ">=0.7.2" },
     { name = "mypy", marker = "extra == 'dev'", specifier = ">=1.11.1" },
-    { name = "nest-asyncio", specifier = ">=1.6.0" },
     { name = "podcast-creator", specifier = ">=0.7.0" },
     { name = "pre-commit", marker = "extra == 'dev'", specifier = ">=4.0.1" },
     { name = "pydantic", specifier = ">=2.9.2" },
@@ -2597,11 +2595,11 @@ wheels = [
 
 [[package]]
 name = "pip"
-version = "25.2"
+version = "25.3"
 source = { registry = "https://pypi.org/simple" }
-sdist = { url = "https://files.pythonhosted.org/packages/20/16/650289cd3f43d5a2fadfd98c68bd1e1e7f2550a1a5326768cddfbcedb2c5/pip-25.2.tar.gz", hash = "sha256:578283f006390f85bb6282dffb876454593d637f5d1be494b5202ce4877e71f2", size = 1840021, upload-time = "2025-07-30T21:50:15.401Z" }
+sdist = { url = "https://files.pythonhosted.org/packages/fe/6e/74a3f0179a4a73a53d66ce57fdb4de0080a8baa1de0063de206d6167acc2/pip-25.3.tar.gz", hash = "sha256:8d0538dbbd7babbd207f261ed969c65de439f6bc9e5dbd3b3b9a77f25d95f343", size = 1803014, upload-time = "2025-10-25T00:55:41.394Z" }
 wheels = [
-    { url = "https://files.pythonhosted.org/packages/b7/3f/945ef7ab14dc4f9d7f40288d2df998d1837ee0888ec3659c813487572faa/pip-25.2-py3-none-any.whl", hash = "sha256:6d67a2b4e7f14d8b31b8b52648866fa717f45a1eb70e83002f4331d07e953717", size = 1752557, upload-time = "2025-07-30T21:50:13.323Z" },
+    { url = "https://files.pythonhosted.org/packages/44/3c/d717024885424591d5376220b5e836c2d5293ce2011523c9de23ff7bf068/pip-25.3-py3-none-any.whl", hash = "sha256:9655943313a94722b7774661c21049070f6bbb0a1516bf02f7c8d5d9201514cd", size = 1778622, upload-time = "2025-10-25T00:55:39.247Z" },
 ]
 
 [[package]]
@@ -2754,18 +2752,16 @@ wheels = [
 
 [[package]]
 name = "psutil"
-version = "7.1.1"
+version = "7.1.2"
 source = { registry = "https://pypi.org/simple" }
-sdist = { url = "https://files.pythonhosted.org/packages/89/fc/889242351a932d6183eec5df1fc6539b6f36b6a88444f1e63f18668253aa/psutil-7.1.1.tar.gz", hash = "sha256:092b6350145007389c1cfe5716050f02030a05219d90057ea867d18fe8d372fc", size = 487067, upload-time = "2025-10-19T15:43:59.373Z" }
+sdist = { url = "https://files.pythonhosted.org/packages/cd/ec/7b8e6b9b1d22708138630ef34c53ab2b61032c04f16adfdbb96791c8c70c/psutil-7.1.2.tar.gz", hash = "sha256:aa225cdde1335ff9684708ee8c72650f6598d5ed2114b9a7c5802030b1785018", size = 487424, upload-time = "2025-10-25T10:46:34.931Z" }
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 [[package]]