diff --git a/client/src/components/MCP/CustomUserVarsSection.tsx b/client/src/components/MCP/CustomUserVarsSection.tsx
index 1d6060c914..d97ce60086 100644
--- a/client/src/components/MCP/CustomUserVarsSection.tsx
+++ b/client/src/components/MCP/CustomUserVarsSection.tsx
@@ -114,9 +114,13 @@ export default function CustomUserVarsSection({
     reset();
   };
 
-  // Don't render if no fields to configure
+  // Show message if no fields to configure
   if (!fields || Object.keys(fields).length === 0) {
-    return null;
+    return (
+      <div className="p-4 text-center text-sm text-gray-500">
+        {localize('com_sidepanel_mcp_no_custom_vars', { '0': serverName })}
+      </div>
+    );
   }
 
   return (
diff --git a/client/src/components/MCP/MCPConfigDialog.tsx b/client/src/components/MCP/MCPConfigDialog.tsx
index 1ad0ea7b63..5bcd590ec7 100644
--- a/client/src/components/MCP/MCPConfigDialog.tsx
+++ b/client/src/components/MCP/MCPConfigDialog.tsx
@@ -132,6 +132,7 @@ export default function MCPConfigDialog({
         <ServerInitializationSection
           serverName={serverName}
           requiresOAuth={serverStatus?.requiresOAuth || false}
+          hasCustomUserVars={fieldsSchema && Object.keys(fieldsSchema).length > 0}
         />
       </OGDialogContent>
     </OGDialog>
diff --git a/client/src/components/MCP/ServerInitializationSection.tsx b/client/src/components/MCP/ServerInitializationSection.tsx
index 36c9ca6b17..175d5d1906 100644
--- a/client/src/components/MCP/ServerInitializationSection.tsx
+++ b/client/src/components/MCP/ServerInitializationSection.tsx
@@ -7,11 +7,13 @@ import { useLocalize } from '~/hooks';
 interface ServerInitializationSectionProps {
   serverName: string;
   requiresOAuth: boolean;
+  hasCustomUserVars?: boolean;
 }
 
 export default function ServerInitializationSection({
   serverName,
   requiresOAuth,
+  hasCustomUserVars = false,
 }: ServerInitializationSectionProps) {
   const localize = useLocalize();
 
@@ -39,8 +41,8 @@ export default function ServerInitializationSection({
     cancelOAuthFlow(serverName);
   }, [cancelOAuthFlow, serverName]);
 
-  // Show subtle reinitialize option if connected
-  if (isConnected) {
+  // Show subtle reinitialize option if connected AND server has OAuth or custom user vars
+  if (isConnected && (requiresOAuth || hasCustomUserVars)) {
     return (
       <div className="flex justify-start">
         <button
@@ -55,6 +57,11 @@ export default function ServerInitializationSection({
     );
   }
 
+  // Don't show anything for connected servers that don't need OAuth or custom vars
+  if (isConnected) {
+    return null;
+  }
+
   return (
     <div className="rounded-lg border border-[#991b1b] bg-[#2C1315] p-4">
       <div className="flex items-center justify-between">
diff --git a/client/src/components/SidePanel/MCP/MCPPanel.tsx b/client/src/components/SidePanel/MCP/MCPPanel.tsx
index a948f5f656..0d585540ef 100644
--- a/client/src/components/SidePanel/MCP/MCPPanel.tsx
+++ b/client/src/components/SidePanel/MCP/MCPPanel.tsx
@@ -146,6 +146,10 @@ function MCPPanelContent() {
           <ServerInitializationSection
             serverName={selectedServerNameForEditing}
             requiresOAuth={serverStatus?.requiresOAuth || false}
+            hasCustomUserVars={
+              serverBeingEdited.config.customUserVars &&
+              Object.keys(serverBeingEdited.config.customUserVars).length > 0
+            }
           />
         </div>
 
diff --git a/client/src/locales/en/translation.json b/client/src/locales/en/translation.json
index edef833a46..23ea0e26cc 100644
--- a/client/src/locales/en/translation.json
+++ b/client/src/locales/en/translation.json
@@ -506,6 +506,7 @@
   "com_sidepanel_hide_panel": "Hide Panel",
   "com_sidepanel_manage_files": "Manage Files",
   "com_sidepanel_mcp_no_servers_with_vars": "No MCP servers with configurable variables.",
+  "com_sidepanel_mcp_no_custom_vars": "No custom user variables set for {{0}}",
   "com_sidepanel_mcp_variables_for": "MCP Variables for {{0}}",
   "com_sidepanel_parameters": "Parameters",
   "com_sources_image_alt": "Search result image",