diff --git a/docs/servers/server.mdx b/docs/servers/server.mdx
index 85891b5d1..8645691f1 100644
--- a/docs/servers/server.mdx
+++ b/docs/servers/server.mdx
@@ -362,8 +362,8 @@ print(fastmcp.settings.strict_input_validation)  # Default: False
 
 Common global settings include:
 - **`log_level`**: Logging level ("DEBUG", "INFO", "WARNING", "ERROR", "CRITICAL"), set with `FASTMCP_LOG_LEVEL`
-- **`debug`**: Global debug mode that sets log level to DEBUG and enables Starlette debug tracebacks for HTTP/SSE transports, set with `FASTMCP_DEBUG`. Provides a convenient way to enable comprehensive debugging. For granular control, use `log_level` and `starlette_debug` separately
-- **`starlette_debug`**: Enable Starlette debug mode for HTTP/SSE transports only, set with `FASTMCP_STARLETTE_DEBUG`. When enabled, detailed error tracebacks are returned in HTTP responses. Only affects HTTP/SSE transports; has no effect on stdio transport
+- **`debug`**: Global debug mode that sets log level to DEBUG and enables Starlette debug tracebacks for HTTP/SSE transports, set with `FASTMCP_DEBUG`. Provides a convenient way to enable comprehensive debugging. For granular control, use `log_level` and `starlette_debug` separately. **WARNING**: Only enable in development - debug tracebacks expose detailed internal information
+- **`starlette_debug`**: Enable Starlette debug mode for HTTP/SSE transports only, set with `FASTMCP_STARLETTE_DEBUG`. When enabled, detailed error tracebacks are returned in HTTP responses. Only affects HTTP/SSE transports; has no effect on stdio transport. **WARNING**: Only enable in development - exposes detailed internal information in HTTP responses
 - **`mask_error_details`**: Whether to hide detailed error information from clients, set with `FASTMCP_MASK_ERROR_DETAILS`
 - **`strict_input_validation`**: Controls tool input validation mode (default: False for flexible coercion), set with `FASTMCP_STRICT_INPUT_VALIDATION`. See [Input Validation Modes](/servers/tools#input-validation-modes)
 - **`env_file`**: Path to the environment file to load settings from (default: ".env"), set with `FASTMCP_ENV_FILE`. Useful when your project uses a `.env` file with syntax incompatible with python-dotenv
diff --git a/src/fastmcp/settings.py b/src/fastmcp/settings.py
index fd26cd89b..2e61d47b7 100644
--- a/src/fastmcp/settings.py
+++ b/src/fastmcp/settings.py
@@ -290,27 +290,29 @@ class Settings(BaseSettings):
 
     @field_validator("debug")
     @classmethod
-    def _update_log_level_for_debug(cls, v: bool, info) -> bool:
+    def _update_log_level_for_debug(cls, v: bool) -> bool:
         """When debug is enabled, set log_level to DEBUG."""
-        if v:
-            # When debug is True, we need to ensure log_level is set to DEBUG
-            # This is checked in model_post_init
-            pass
         return v
 
-    def model_post_init(self, __context) -> None:
+    def model_post_init(self, __context: Any) -> None:
         """Post-initialization hook to handle debug mode."""
         if self.debug and self.log_level != "DEBUG":
             # When debug is enabled, force log_level to DEBUG
             self.log_level = "DEBUG"
             # Reconfigure logging if it's enabled
+            # Only reconfigure if fastmcp module is fully initialized
+            # to avoid AttributeError during import
             if self.log_enabled:
-                from fastmcp.utilities.logging import configure_logging
+                import fastmcp
 
-                configure_logging(
-                    level=self.log_level,
-                    enable_rich_tracebacks=self.enable_rich_tracebacks,
-                )
+                # Check if fastmcp.settings exists (module fully initialized)
+                if hasattr(fastmcp, "settings"):
+                    from fastmcp.utilities.logging import configure_logging
+
+                    configure_logging(
+                        level=self.log_level,
+                        enable_rich_tracebacks=self.enable_rich_tracebacks,
+                    )
 
     # error handling
     mask_error_details: Annotated[
diff --git a/tests/test_debug_settings.py b/tests/test_debug_settings.py
index 49d024580..6e7111568 100644
--- a/tests/test_debug_settings.py
+++ b/tests/test_debug_settings.py
@@ -2,9 +2,6 @@
 
 import logging
 
-import pytest
-
-from fastmcp import settings as global_settings
 from fastmcp.settings import Settings
 from fastmcp.utilities.logging import get_logger
 
@@ -47,7 +44,7 @@ class TestDebugSettings:
     def test_debug_reconfigures_logging(self):
         """Test that enabling debug reconfigures logging."""
         # Create a settings instance with debug enabled
-        settings = Settings(debug=True, log_enabled=True)
+        _settings = Settings(debug=True, log_enabled=True)
 
         # Verify logging was reconfigured
         logger = get_logger("test")