diff --git a/llama_stack/cli/utils.py b/llama_stack/cli/utils.py
index 433627cc0..94cff42e8 100644
--- a/llama_stack/cli/utils.py
+++ b/llama_stack/cli/utils.py
@@ -6,6 +6,10 @@
 
 import argparse
 
+from llama_stack.log import get_logger
+
+logger = get_logger(name=__name__, category="cli")
+
 
 def add_config_template_args(parser: argparse.ArgumentParser):
     """Add unified config/template arguments with backward compatibility."""
@@ -20,12 +24,25 @@ def add_config_template_args(parser: argparse.ArgumentParser):
     # Backward compatibility arguments (deprecated)
     group.add_argument(
         "--config",
-        dest="config",
+        dest="config_deprecated",
         help="(DEPRECATED) Use positional argument [config] instead. Configuration file path",
     )
 
     group.add_argument(
         "--template",
-        dest="config",
+        dest="template_deprecated",
         help="(DEPRECATED) Use positional argument [config] instead. Template name",
     )
+
+
+def get_config_from_args(args: argparse.Namespace) -> str | None:
+    """Extract config value from parsed arguments, handling both new and deprecated forms."""
+    if args.config is not None:
+        return str(args.config)
+    elif hasattr(args, "config_deprecated") and args.config_deprecated is not None:
+        logger.warning("Using deprecated --config argument. Use positional argument [config] instead.")
+        return str(args.config_deprecated)
+    elif hasattr(args, "template_deprecated") and args.template_deprecated is not None:
+        logger.warning("Using deprecated --template argument. Use positional argument [config] instead.")
+        return str(args.template_deprecated)
+    return None
diff --git a/llama_stack/distribution/server/server.py b/llama_stack/distribution/server/server.py
index e58c28f2e..f05c4ad83 100644
--- a/llama_stack/distribution/server/server.py
+++ b/llama_stack/distribution/server/server.py
@@ -32,7 +32,7 @@ from openai import BadRequestError
 from pydantic import BaseModel, ValidationError
 
 from llama_stack.apis.common.responses import PaginatedResponse
-from llama_stack.cli.utils import add_config_template_args
+from llama_stack.cli.utils import add_config_template_args, get_config_from_args
 from llama_stack.distribution.access_control.access_control import AccessDeniedError
 from llama_stack.distribution.datatypes import (
     AuthenticationRequiredError,
@@ -399,7 +399,8 @@ def main(args: argparse.Namespace | None = None):
     if args is None:
         args = parser.parse_args()
 
-    config_file = resolve_config_or_template(args.config, Mode.RUN)
+    config_or_template = get_config_from_args(args)
+    config_file = resolve_config_or_template(config_or_template, Mode.RUN)
 
     logger_config = None
     with open(config_file) as fp: