diff --git a/api/core/entities/provider_configuration.py b/api/core/entities/provider_configuration.py
index 0c26a03d07b..95b8b686e05 100644
--- a/api/core/entities/provider_configuration.py
+++ b/api/core/entities/provider_configuration.py
@@ -1233,16 +1233,24 @@ class ProviderConfiguration(BaseModel):
                 available_credentials_count = session.execute(count_stmt).scalar() or 0
                 session.delete(credential_record)
 
+                model_credentials_cache_identity_id: str | None = None
+                if provider_model_record and (
+                    available_credentials_count <= 1 or provider_model_record.credential_id == credential_id
+                ):
+                    model_credentials_cache_identity_id = provider_model_record.id
+
                 if provider_model_record and available_credentials_count <= 1:
                     # If all credentials are deleted, delete the custom model record
                     session.delete(provider_model_record)
                 elif provider_model_record and provider_model_record.credential_id == credential_id:
                     provider_model_record.credential_id = None
                     provider_model_record.updated_at = naive_utc_now()
+
+                if model_credentials_cache_identity_id:
                     provider_model_credentials_cache = ProviderCredentialsCache(
                         tenant_id=self.tenant_id,
-                        identity_id=provider_model_record.id,
-                        cache_type=ProviderCredentialsCacheType.PROVIDER,
+                        identity_id=model_credentials_cache_identity_id,
+                        cache_type=ProviderCredentialsCacheType.MODEL,
                     )
                     provider_model_credentials_cache.delete()
 
diff --git a/api/tests/unit_tests/core/entities/test_entities_provider_configuration.py b/api/tests/unit_tests/core/entities/test_entities_provider_configuration.py
index 9eb32206039..b5a48918079 100644
--- a/api/tests/unit_tests/core/entities/test_entities_provider_configuration.py
+++ b/api/tests/unit_tests/core/entities/test_entities_provider_configuration.py
@@ -25,6 +25,7 @@ from core.entities.provider_entities import (
     SystemConfiguration,
     SystemConfigurationStatus,
 )
+from core.helper.model_provider_cache import ProviderCredentialsCacheType
 from graphon.model_runtime.entities.common_entities import I18nObject
 from graphon.model_runtime.entities.model_entities import AIModelEntity, FetchFrom, ModelType
 from graphon.model_runtime.entities.provider_entities import (
@@ -1336,6 +1337,8 @@ def test_create_update_delete_custom_model_credential_flow() -> None:
                 configuration.delete_custom_model_credential(ModelType.LLM, "gpt-4o", "cred-1")
     assert provider_model_record.credential_id is None
     assert mock_cache.return_value.delete.call_count == 2
+    assert mock_cache.call_args_list[0].kwargs["cache_type"] == ProviderCredentialsCacheType.LOAD_BALANCING_MODEL
+    assert mock_cache.call_args_list[1].kwargs["cache_type"] == ProviderCredentialsCacheType.MODEL
 
     session = Mock()
     mismatched_credential_record = SimpleNamespace(
@@ -2032,9 +2035,16 @@ def test_delete_custom_model_credential_removes_custom_model_record_when_last_cr
 
     with _patched_session(session):
         with patch.object(ProviderConfiguration, "_get_custom_model_record", return_value=provider_model_record):
-            configuration.delete_custom_model_credential(ModelType.LLM, "gpt-4o", "cred-1")
+            with patch("core.entities.provider_configuration.ProviderCredentialsCache") as mock_cache:
+                configuration.delete_custom_model_credential(ModelType.LLM, "gpt-4o", "cred-1")
 
     assert any(call.args and call.args[0] is provider_model_record for call in session.delete.call_args_list)
+    mock_cache.assert_called_once_with(
+        tenant_id="tenant-1",
+        identity_id="model-1",
+        cache_type=ProviderCredentialsCacheType.MODEL,
+    )
+    mock_cache.return_value.delete.assert_called_once()
 
 
 def test_delete_custom_model_credential_rolls_back_on_error() -> None: