diff --git a/litellm/caching/in_memory_cache.py b/litellm/caching/in_memory_cache.py
index 082cac791f..5239fa1f4b 100644
--- a/litellm/caching/in_memory_cache.py
+++ b/litellm/caching/in_memory_cache.py
@@ -11,6 +11,7 @@ Has 4 methods:
 import json
 import sys
 import time
+import heapq
 from typing import TYPE_CHECKING, Any, List, Optional
 
 if TYPE_CHECKING:
@@ -46,6 +47,7 @@ class InMemoryCache(BaseCache):
         # in-memory cache
         self.cache_dict: dict = {}
         self.ttl_dict: dict = {}
+        self.expiration_heap: list[tuple[float, str]] = []
 
     def check_value_size(self, value: Any):
         """
@@ -114,19 +116,27 @@ class InMemoryCache(BaseCache):
 
         """
         current_time = time.time()
-        
-        # Step 1: Remove expired items
-        expired_keys = [key for key, ttl in self.ttl_dict.items() if current_time > ttl]
-        for key in expired_keys:
-            self._remove_key(key)
 
-        # Step 2: If cache is still full, evict items with earliest expiration times
-        if len(self.cache_dict) >= self.max_size_in_memory:
-            # Sort by expiration time (earliest first) and evict until we're under the limit
-            items_by_expiration = sorted(self.ttl_dict.items(), key=lambda x: x[1])
-            keys_to_evict = items_by_expiration[:len(self.cache_dict) - self.max_size_in_memory + 1]
-            
-            for key, _ in keys_to_evict:
+        # Step 1: Remove expired or outdated items
+        while self.expiration_heap:
+            expiration_time, key = self.expiration_heap[0]
+
+            # Case 1: Heap entry is outdated
+            if expiration_time != self.ttl_dict.get(key):
+                heapq.heappop(self.expiration_heap)
+            # Case 2: Entry is valid but expired
+            elif expiration_time <= current_time:
+                heapq.heappop(self.expiration_heap)
+                self._remove_key(key)
+            else:
+                # Case 3: Entry is valid and not expired
+                break
+
+        # Step 2: Evict if cache is still full
+        while len(self.cache_dict) >= self.max_size_in_memory:
+            expiration_time, key = heapq.heappop(self.expiration_heap)
+            # Skip if key was removed or updated
+            if self.ttl_dict.get(key) == expiration_time:
                 self._remove_key(key)
 
         # de-reference the removed item
@@ -150,7 +160,7 @@ class InMemoryCache(BaseCache):
         # Handle the edge case where max_size_in_memory is 0
         if self.max_size_in_memory == 0:
             return  # Don't cache anything if max size is 0
-            
+
         if len(self.cache_dict) >= self.max_size_in_memory:
             # only evict when cache is full
             self.evict_cache()
@@ -161,8 +171,10 @@ class InMemoryCache(BaseCache):
         if self.allow_ttl_override(key):  # if ttl is not set, set it to default ttl
             if "ttl" in kwargs and kwargs["ttl"] is not None:
                 self.ttl_dict[key] = time.time() + float(kwargs["ttl"])
+                heapq.heappush(self.expiration_heap, (self.ttl_dict[key], key))
             else:
                 self.ttl_dict[key] = time.time() + self.default_ttl
+                heapq.heappush(self.expiration_heap, (self.ttl_dict[key], key))
 
     async def async_set_cache(self, key, value, **kwargs):
         self.set_cache(key=key, value=value, **kwargs)
@@ -253,6 +265,7 @@ class InMemoryCache(BaseCache):
     def flush_cache(self):
         self.cache_dict.clear()
         self.ttl_dict.clear()
+        self.expiration_heap.clear()
 
     async def disconnect(self):
         pass
diff --git a/tests/test_litellm/caching/test_in_memory_cache.py b/tests/test_litellm/caching/test_in_memory_cache.py
index 616c60c74a..e7cc7f80ab 100644
--- a/tests/test_litellm/caching/test_in_memory_cache.py
+++ b/tests/test_litellm/caching/test_in_memory_cache.py
@@ -186,3 +186,16 @@ def test_in_memory_cache_eviction_order():
     # Items with later expiration should remain
     assert "late_expire" in in_memory_cache.cache_dict
     assert "new_item" in in_memory_cache.cache_dict
+
+
+def test_in_memory_cache_heap_size_staus_bounded():
+    """
+    Test that the expiration_heap does not grow unbounded when the same key is updated repeaatedly.
+    """
+    in_memory_cache = InMemoryCache(max_size_in_memory=10)
+
+    for i in range(1_000):
+        in_memory_cache.set_cache(key="hot_key", value=f"value_{i}", ttl=60)
+
+    # Expiration heap should only have 1 entry
+    assert len(in_memory_cache.expiration_heap) == 1
diff --git a/tests/test_litellm/litellm_core_utils/specialty_caches/test_dynamic_logging_cache.py b/tests/test_litellm/litellm_core_utils/specialty_caches/test_dynamic_logging_cache.py
index 85fcc2700b..f21cd56750 100644
--- a/tests/test_litellm/litellm_core_utils/specialty_caches/test_dynamic_logging_cache.py
+++ b/tests/test_litellm/litellm_core_utils/specialty_caches/test_dynamic_logging_cache.py
@@ -41,8 +41,10 @@ class TestLangfuseInMemoryCache:
             "litellm.integrations.langfuse.langfuse.LangFuseLogger", MockLangFuseLogger
         ):
             # Add the mock logger to cache with expired TTL
+            expired_time = time.time() - 1  # Already expired
             self.cache.cache_dict["test_key"] = mock_logger
-            self.cache.ttl_dict["test_key"] = time.time() - 1  # Already expired
+            self.cache.ttl_dict["test_key"] = expired_time
+            self.cache.expiration_heap = [(expired_time, "test_key")]
 
             initial_count = litellm.initialized_langfuse_clients