diff --git a/tests/entrypoints/openai/test_cli_args.py b/tests/entrypoints/openai/test_cli_args.py
index dd5d62990..ccf145a0c 100644
--- a/tests/entrypoints/openai/test_cli_args.py
+++ b/tests/entrypoints/openai/test_cli_args.py
@@ -20,10 +20,22 @@ CHATML_JINJA_PATH = VLLM_PATH / "examples/template_chatml.jinja"
 assert CHATML_JINJA_PATH.exists()
 
 
+def _build_vllm_parsers():
+    vllm_parser = FlexibleArgumentParser()
+    subparsers = vllm_parser.add_subparsers()
+    serve_parser = subparsers.add_parser("serve")
+    make_arg_parser(serve_parser)
+    return {"vllm": vllm_parser, "vllm serve": serve_parser}
+
+
+@pytest.fixture
+def vllm_parser():
+    return _build_vllm_parsers()["vllm"]
+
+
 @pytest.fixture
 def serve_parser():
-    parser = FlexibleArgumentParser(description="vLLM's remote OpenAI server.")
-    return make_arg_parser(parser)
+    return _build_vllm_parsers()["vllm serve"]
 
 
 ### Test config parsing
@@ -241,3 +253,41 @@ def test_default_chat_template_kwargs_invalid_json(serve_parser):
         serve_parser.parse_args(
             args=["--default-chat-template-kwargs", "not valid json"]
         )
+
+
+@pytest.mark.parametrize(
+    "args, raises",
+    [
+        (["user/model"], None),
+        (["user/model", "--served-model-name", "model"], None),
+        (["--served-model-name", "model", "user/model"], ValueError),
+        (["--served-model-name", "model", "--config", "config.yaml"], None),
+        (["--served-model-name", "model", "--config", "config.yaml"], ValueError),
+    ],
+    ids=[
+        "model_tag_only",
+        "model_tag_with_served_model_name",
+        "served_model_name_before_model_tag",
+        "served_model_name_with_model_in_config",
+        "served_model_name_with_no_model_in_config",
+    ],
+)
+def test_served_model_name_parsing(tmp_path, vllm_parser, args, raises):
+    """Ensure that users don't misuse --served-model-name and end up with the default
+    model tag instead of the one they intended to serve."""
+    # Call the serve subparser
+    args.insert(0, "serve")
+    # Create a dummy config file if the test case includes it
+    if "config.yaml" in args:
+        # Create a dummy config file if the test case includes it
+        config_path = tmp_path / "config.yaml"
+        config_path.write_text("model: user/model" if raises is None else "port: 8000")
+        args[args.index("config.yaml")] = config_path.as_posix()
+    # Do the parsing and check for expected exceptions or values
+    if raises is None:
+        parsed_args = vllm_parser.parse_args(args=args)
+        expected = "user/model"
+        assert parsed_args.model_tag == expected or parsed_args.model == expected
+    else:
+        with pytest.raises(raises):
+            vllm_parser.parse_args(args=args)
diff --git a/vllm/utils/argparse_utils.py b/vllm/utils/argparse_utils.py
index d88f2fa6f..e4482d4fb 100644
--- a/vllm/utils/argparse_utils.py
+++ b/vllm/utils/argparse_utils.py
@@ -184,13 +184,11 @@ class FlexibleArgumentParser(ArgumentParser):
         if args is None:
             args = sys.argv[1:]
 
-        # Check for --model in command line arguments first
         if args and args[0] == "serve":
+            # Check for --model in command line arguments first
             try:
                 model_idx = next(
-                    i
-                    for i, arg in enumerate(args)
-                    if arg == "--model" or arg.startswith("--model=")
+                    i for i, arg in enumerate(args) if re.match(r"^--model(=.+|$)", arg)
                 )
                 logger.warning(
                     "With `vllm serve`, you should provide the model as a "
@@ -219,6 +217,19 @@ class FlexibleArgumentParser(ArgumentParser):
                 ]
             except StopIteration:
                 pass
+            # Check for --served-model-name without a positional model argument
+            if (
+                len(args) > 1
+                and args[1].startswith("-")
+                and not any(re.match(r"^--config(=.+|$)", arg) for arg in args)
+                and any(
+                    re.match(r"^--served[-_]model[-_]name(=.+|$)", arg) for arg in args
+                )
+            ):
+                raise ValueError(
+                    "`model` should be provided as the first positional argument when "
+                    "using `vllm serve`. i.e. `vllm serve <model> --<arg> <value>`."
+                )
 
         if "--config" in args:
             args = self._pull_args_from_config(args)