diff --git a/ee/app/assets/javascripts/ai/model_selection/model_selector.vue b/ee/app/assets/javascripts/ai/model_selection/model_selector.vue
index ba88e94d766d2201083ca466efec592ea9d4686e..44983a5e875953985077d22f2bdf74b3459c7318 100644
--- a/ee/app/assets/javascripts/ai/model_selection/model_selector.vue
+++ b/ee/app/assets/javascripts/ai/model_selection/model_selector.vue
@@ -41,10 +41,12 @@ export default {
       return { value: GITLAB_DEFAULT_MODEL, text };
     },
     listItems() {
-      const modelOptions = this.aiFeatureSetting.selectableModels.map(({ ref, name }) => ({
-        value: ref,
-        text: name,
-      }));
+      const modelOptions = this.aiFeatureSetting.selectableModels
+        .map(({ ref, name }) => ({
+          value: ref,
+          text: name,
+        }))
+        .sort((a, b) => a.text.localeCompare(b.text));
 
       return [...modelOptions, this.defaultModelOption];
     },
diff --git a/ee/spec/frontend/ai/model_selection/model_selector_spec.js b/ee/spec/frontend/ai/model_selection/model_selector_spec.js
index 0e668293277fd1f99031e518ebc3e03f0a1cd327..cea4231a1f1df056113fcb2543b9994b66c41dd6 100644
--- a/ee/spec/frontend/ai/model_selection/model_selector_spec.js
+++ b/ee/spec/frontend/ai/model_selection/model_selector_spec.js
@@ -95,7 +95,7 @@ describe('ModelSelector', () => {
   });
 
   describe('loading state', () => {
-    it('passes corect loading state to `ModelSelectDropdown` while saving', async () => {
+    it('passes correct loading state to `ModelSelectDropdown` while saving', async () => {
       createComponent();
 
       await findModelSelectDropdown().vm.$emit('select', 'claude_3_5_sonnet_20240620');
@@ -103,7 +103,7 @@ describe('ModelSelector', () => {
       expect(findModelSelectDropdown().props('isLoading')).toBe(true);
     });
 
-    it('passes corect loading state to `ModelSelectDropdown` while batch saving', () => {
+    it('passes correct loading state to `ModelSelectDropdown` while batch saving', () => {
       createComponent({ props: { batchUpdateIsSaving: true } });
 
       expect(findModelSelectDropdown().props('isLoading')).toBe(true);
@@ -111,19 +111,46 @@ describe('ModelSelector', () => {
   });
 
   describe('.listItems', () => {
-    it('contains a list of models, including a default model option', () => {
+    it('contains a list of models sorted in ascending alphabetical order, including a default model option', () => {
       createComponent();
 
       expect(findModelSelectDropdown().props('items')).toEqual([
-        { value: 'claude_sonnet_3_7_20250219', text: 'Claude Sonnet 3.7 - Anthropic' },
-        { value: 'claude_3_5_sonnet_20240620', text: 'Claude Sonnet 3.5 - Anthropic' },
         { value: 'claude_3_haiku_20240307', text: 'Claude Haiku 3 - Anthropic' },
+        { value: 'claude_3_5_sonnet_20240620', text: 'Claude Sonnet 3.5 - Anthropic' },
+        { value: 'claude_sonnet_3_7_20250219', text: 'Claude Sonnet 3.7 - Anthropic' },
         {
           value: GITLAB_DEFAULT_MODEL,
           text: 'GitLab default model (Claude Sonnet 3.7 - Anthropic)',
         },
       ]);
     });
+
+    it('sorts models in ascending alphabetical order', () => {
+      const testFeatureSetting = {
+        ...aiFeatureSetting,
+        selectableModels: [
+          { ref: 'claude_3_haiku_20240307', name: 'Claude Haiku 3 - Anthropic' },
+          { ref: 'gpt_5', name: 'OpenAI GPT-5' },
+          { ref: 'claude_sonnet_4_20250514', name: 'Claude Sonnet 4 - Anthropic' },
+          { ref: 'claude_3_5_sonnet_20240620', name: 'Claude Sonnet 3.5 - Anthropic' },
+          { ref: 'claude_sonnet_3_7_20250219', name: 'Claude Sonnet 3.7 - Anthropic' },
+        ],
+      };
+
+      createComponent({ props: { aiFeatureSetting: testFeatureSetting } });
+
+      const items = findModelSelectDropdown().props('items');
+      const modelNames = items.map((item) => item.text);
+
+      expect(modelNames).toEqual([
+        'Claude Haiku 3 - Anthropic',
+        'Claude Sonnet 3.5 - Anthropic',
+        'Claude Sonnet 3.7 - Anthropic',
+        'Claude Sonnet 4 - Anthropic',
+        'OpenAI GPT-5',
+        'GitLab default model (Claude Sonnet 3.7 - Anthropic)',
+      ]);
+    });
   });
 
   describe('onSelect', () => {