diff --git a/crates/goose-cli/src/commands/configure.rs b/crates/goose-cli/src/commands/configure.rs
index ab0568729ec1..31c0cb4fabcc 100644
--- a/crates/goose-cli/src/commands/configure.rs
+++ b/crates/goose-cli/src/commands/configure.rs
@@ -691,21 +691,22 @@ pub async fn configure_provider_dialog() -> anyhow::Result<bool> {
     };
     spin.stop(style("Model fetch complete").green());
 
-    // Select a model: on fetch error show styled error and abort; if Some(models), show list; if None, free-text input
-    let model: String = match models_res {
-        Err(e) => {
-            // Provider hook error
-            cliclack::outro(style(e.to_string()).on_red().white())?;
-            return Ok(false);
-        }
-        Ok(Some(models)) => select_model_from_list(&models, provider_meta)?,
-        Ok(None) => {
-            let default_model =
-                std::env::var("GOOSE_MODEL").unwrap_or(provider_meta.default_model.clone());
+    if let Err(ref e) = models_res {
+        let _ = cliclack::log::warning(format!("Could not fetch models: {e}"));
+    }
+    let model: String = match provider_meta.resolve_models_with_fallback(models_res) {
+        Ok(models) if !models.is_empty() => select_model_from_list(&models, provider_meta)?,
+        Ok(_) => {
+            let default_model = std::env::var("GOOSE_MODEL")
+                .unwrap_or_else(|_| provider_meta.default_model.clone());
             cliclack::input("Enter a model from that provider:")
                 .default_input(&default_model)
                 .interact()?
         }
+        Err(e) => {
+            cliclack::outro(style(e.to_string()).on_red().white())?;
+            return Ok(false);
+        }
     };
 
     if model.to_lowercase().starts_with("gemini-3") {
diff --git a/crates/goose-server/src/routes/config_management.rs b/crates/goose-server/src/routes/config_management.rs
index 6c12b6c0e1f9..36dccded6090 100644
--- a/crates/goose-server/src/routes/config_management.rs
+++ b/crates/goose-server/src/routes/config_management.rs
@@ -372,19 +372,6 @@ pub async fn providers() -> Result<Json<Vec<ProviderDetails>>, ErrorResponse> {
 pub async fn get_provider_models(
     Path(name): Path<String>,
 ) -> Result<Json<Vec<String>>, ErrorResponse> {
-    let loaded_provider = goose::config::declarative_providers::load_provider(name.as_str()).ok();
-    // TODO(Douwe): support a get models url for custom providers
-    if let Some(loaded_provider) = loaded_provider {
-        return Ok(Json(
-            loaded_provider
-                .config
-                .models
-                .into_iter()
-                .map(|m| m.name)
-                .collect::<Vec<_>>(),
-        ));
-    }
-
     let all = get_providers().await.into_iter().collect::<Vec<_>>();
     let Some((metadata, provider_type)) = all.into_iter().find(|(m, _)| m.name == name) else {
         return Err(ErrorResponse::bad_request(format!(
@@ -403,10 +390,11 @@ pub async fn get_provider_models(
     let provider = goose::providers::create(&name, model_config).await?;
 
     let models_result = provider.fetch_recommended_models().await;
-
-    match models_result {
-        Ok(Some(models)) => Ok(Json(models)),
-        Ok(None) => Ok(Json(Vec::new())),
+    if let Err(ref e) = models_result {
+        tracing::warn!("Model fetch failed for provider '{}': {e}", name);
+    }
+    match metadata.resolve_models_with_fallback(models_result) {
+        Ok(models) => Ok(Json(models)),
         Err(provider_error) => Err(provider_error.into()),
     }
 }
diff --git a/crates/goose/src/providers/base.rs b/crates/goose/src/providers/base.rs
index ab343750e1a9..b8782f84c327 100644
--- a/crates/goose/src/providers/base.rs
+++ b/crates/goose/src/providers/base.rs
@@ -185,6 +185,34 @@ impl ProviderMetadata {
         self.allows_unlisted_models = true;
         self
     }
+
+    pub fn resolve_models_with_fallback(
+        &self,
+        fetch_result: Result<Option<Vec<String>>, ProviderError>,
+    ) -> Result<Vec<String>, ProviderError> {
+        if let Ok(Some(ref models)) = fetch_result {
+            if !models.is_empty() {
+                return Ok(models.clone());
+            }
+        }
+
+        let known: Vec<String> = self.known_models.iter().map(|m| m.name.clone()).collect();
+        if !known.is_empty() {
+            return Ok(known);
+        }
+
+        if self.allows_unlisted_models {
+            return Ok(Vec::new());
+        }
+
+        match fetch_result {
+            Err(e) => Err(e),
+            _ => Err(ProviderError::ExecutionError(format!(
+                "No models available for provider '{}'",
+                self.name
+            ))),
+        }
+    }
 }
 
 /// Configuration key metadata for provider setup
@@ -786,4 +814,56 @@ mod tests {
         assert_eq!(info.output_token_cost, Some(0.00001));
         assert_eq!(info.currency, Some("$".to_string()));
     }
+
+    fn metadata_with_known_models(models: Vec<&str>, allows_unlisted: bool) -> ProviderMetadata {
+        let mut meta = ProviderMetadata::empty();
+        meta.name = "test-provider".to_string();
+        meta.known_models = models
+            .into_iter()
+            .map(|n| ModelInfo::new(n, 4096))
+            .collect();
+        meta.allows_unlisted_models = allows_unlisted;
+        meta
+    }
+
+    #[test]
+    fn resolve_models_uses_fetched_models() {
+        let meta = metadata_with_known_models(vec!["known-1"], false);
+        let result = meta
+            .resolve_models_with_fallback(Ok(Some(vec!["fetched-1".into()])))
+            .unwrap();
+        assert_eq!(result, vec!["fetched-1"]);
+    }
+
+    #[test]
+    fn resolve_models_falls_back_to_known_models() {
+        let meta = metadata_with_known_models(vec!["known-1"], false);
+        // Empty fetch, None, and error all fall back to known models
+        for fetch in [
+            Ok(Some(Vec::new())),
+            Ok(None),
+            Err(ProviderError::RequestFailed("fail".into())),
+        ] {
+            let result = meta.resolve_models_with_fallback(fetch).unwrap();
+            assert_eq!(result, vec!["known-1"]);
+        }
+    }
+
+    #[test]
+    fn resolve_models_allows_empty_when_unlisted() {
+        let meta = metadata_with_known_models(vec![], true);
+        assert!(meta
+            .resolve_models_with_fallback(Ok(None))
+            .unwrap()
+            .is_empty());
+    }
+
+    #[test]
+    fn resolve_models_errors_when_no_fallback() {
+        let meta = metadata_with_known_models(vec![], false);
+        assert!(meta
+            .resolve_models_with_fallback(Err(ProviderError::RequestFailed("fail".into())))
+            .is_err());
+        assert!(meta.resolve_models_with_fallback(Ok(None)).is_err());
+    }
 }