diff --git a/docs/my-website/docs/proxy/email.md b/docs/my-website/docs/proxy/email.md
index 9cd027da7f..1ee67e8230 100644
--- a/docs/my-website/docs/proxy/email.md
+++ b/docs/my-website/docs/proxy/email.md
@@ -141,6 +141,7 @@ LiteLLM allows you to customize various aspects of your email notifications. Bel
 | Email Signature | `EMAIL_SIGNATURE` | string (HTML) | Standard LiteLLM footer | `"<p>Best regards,<br/>Your Team</p><p><a href='https://your-company.com'>Visit us</a></p>"` | HTML-formatted footer for all emails |
 | Invitation Subject | `EMAIL_SUBJECT_INVITATION` | string | "LiteLLM: New User Invitation" | `"Welcome to Your Company!"` | Subject line for invitation emails |
 | Key Creation Subject | `EMAIL_SUBJECT_KEY_CREATED` | string | "LiteLLM: API Key Created" | `"Your New API Key is Ready"` | Subject line for key creation emails |
+| Proxy Base URL | `PROXY_BASE_URL` | string | http://0.0.0.0:4000 | `"https://proxy.your-company.com"` | Base URL for the LiteLLM Proxy (used in email links) |
 
 
 ## HTML Support in Email Signature
@@ -180,6 +181,9 @@ EMAIL_SIGNATURE="<p>Best regards,<br/>Your Company Team</p><p><a href='https://y
 # Email Subject Lines
 EMAIL_SUBJECT_INVITATION="Welcome to Your Company!"  # Subject for invitation emails
 EMAIL_SUBJECT_KEY_CREATED="Your API Key is Ready"    # Subject for key creation emails
+
+# Proxy Configuration
+PROXY_BASE_URL="https://proxy.your-company.com"      # Base URL for the LiteLLM Proxy (used in email links)
 ```
 
 ## HTML Support in Email Signature
@@ -225,3 +229,17 @@ EMAIL_SUBJECT_KEY_CREATED="Your \{company_name\} API Key"
 ```
 
 The system will automatically replace `\{event_message\}` and other template variables with their actual values when sending emails.
+
+## FAQ 
+
+### Why do I see "http://0.0.0.0:4000" in the email links?
+
+The `PROXY_BASE_URL` environment variable is used to construct email links. If you are using the LiteLLM Proxy in a local environment, you will see "http://0.0.0.0:4000" in the email links.
+
+If you are using the LiteLLM Proxy in a production environment, you will see the actual base URL of the LiteLLM Proxy.
+
+You can set the `PROXY_BASE_URL` environment variable to the actual base URL of the LiteLLM Proxy.
+
+```bash
+PROXY_BASE_URL="https://proxy.your-company.com"
+```
\ No newline at end of file
diff --git a/litellm/proxy/common_utils/encrypt_decrypt_utils.py b/litellm/proxy/common_utils/encrypt_decrypt_utils.py
index 98207393c7..c3b7b55054 100644
--- a/litellm/proxy/common_utils/encrypt_decrypt_utils.py
+++ b/litellm/proxy/common_utils/encrypt_decrypt_utils.py
@@ -61,9 +61,12 @@ def decrypt_value_helper(
         verbose_proxy_logger.debug(
             f"Unable to decrypt value={value} for key: {key}, returning None"
         )
-        verbose_proxy_logger.exception(error_message)
-        # [Non-Blocking Exception. - this should not block decrypting other values]
-        return value if return_original_value else None
+        if return_original_value:
+            return value
+        else:
+            verbose_proxy_logger.exception(error_message)
+            # [Non-Blocking Exception. - this should not block decrypting other values]
+            return None
 
 
 def encrypt_value(value: str, signing_key: str):
diff --git a/litellm/proxy/proxy_server.py b/litellm/proxy/proxy_server.py
index 4433cd84af..1360433e32 100644
--- a/litellm/proxy/proxy_server.py
+++ b/litellm/proxy/proxy_server.py
@@ -262,9 +262,7 @@ from litellm.proxy.management_endpoints.customer_endpoints import (
 from litellm.proxy.management_endpoints.internal_user_endpoints import (
     router as internal_user_router,
 )
-from litellm.proxy.management_endpoints.internal_user_endpoints import (
-    user_update,
-)
+from litellm.proxy.management_endpoints.internal_user_endpoints import user_update
 from litellm.proxy.management_endpoints.key_management_endpoints import (
     delete_verification_tokens,
     duration_in_seconds,
@@ -312,9 +310,7 @@ from litellm.proxy.ocr_endpoints.endpoints import router as ocr_router
 from litellm.proxy.openai_files_endpoints.files_endpoints import (
     router as openai_files_router,
 )
-from litellm.proxy.openai_files_endpoints.files_endpoints import (
-    set_files_config,
-)
+from litellm.proxy.openai_files_endpoints.files_endpoints import set_files_config
 from litellm.proxy.pass_through_endpoints.llm_passthrough_endpoints import (
     passthrough_endpoint_router,
 )
@@ -1669,8 +1665,28 @@ class ProxyConfig:
         ):
             # if using - db for config - models are in ModelTable
 
-            new_config.pop("model_list", None)
-            await prisma_client.insert_data(data=new_config, table_name="config")
+            # Make a copy to avoid mutating the original config
+            config_to_save = new_config.copy()
+
+            # SECURITY: Always encrypt environment_variables before DB write
+            if (
+                "environment_variables" in config_to_save
+                and config_to_save["environment_variables"]
+            ):
+
+                # decrypt the environment_variables - in case a caller function has already encrypted the environment_variables
+                decrypted_env_vars = self._decrypt_and_set_db_env_variables(
+                    environment_variables=config_to_save["environment_variables"],
+                    return_original_value=True,
+                )
+
+                # encrypt the environment_variables,
+                config_to_save["environment_variables"] = self._encrypt_env_variables(
+                    environment_variables=decrypted_env_vars
+                )
+
+            config_to_save.pop("model_list", None)
+            await prisma_client.insert_data(data=config_to_save, table_name="config")
         else:
             # Save the updated config - if user is not using a dB
             ## YAML
@@ -2847,7 +2863,9 @@ class ProxyConfig:
             encrypted_env_vars[k] = encrypted_value
         return encrypted_env_vars
 
-    def _decrypt_and_set_db_env_variables(self, environment_variables: dict) -> dict:
+    def _decrypt_and_set_db_env_variables(
+        self, environment_variables: dict, return_original_value: bool = False
+    ) -> dict:
         """
         Decrypts a dictionary of environment variables and then sets them in the environment
 
@@ -2858,7 +2876,9 @@ class ProxyConfig:
         decrypted_env_vars = {}
         for k, v in environment_variables.items():
             try:
-                decrypted_value = decrypt_value_helper(value=v, key=k)
+                decrypted_value = decrypt_value_helper(
+                    value=v, key=k, return_original_value=return_original_value
+                )
                 if decrypted_value is not None:
                     os.environ[k] = decrypted_value
                     decrypted_env_vars[k] = decrypted_value
@@ -3056,7 +3076,9 @@ class ProxyConfig:
                         d[k] = v
 
         if param_name == "environment_variables":
-            decrypted_env_vars = self._decrypt_and_set_db_env_variables(db_param_value)
+            decrypted_env_vars = self._decrypt_and_set_db_env_variables(
+                db_param_value, return_original_value=True
+            )
             current_config.setdefault("environment_variables", {}).update(
                 decrypted_env_vars
             )