diff --git a/litellm/proxy/spend_tracking/cloudzero_endpoints.py b/litellm/proxy/spend_tracking/cloudzero_endpoints.py
index 7aecf7a645..2cf4ce8f16 100644
--- a/litellm/proxy/spend_tracking/cloudzero_endpoints.py
+++ b/litellm/proxy/spend_tracking/cloudzero_endpoints.py
@@ -296,7 +296,7 @@ def is_cloudzero_setup_in_config() -> bool:
 
 async def is_cloudzero_setup() -> bool:
     """
-    Check if CloudZero is setup in either config.yaml/env vars OR database
+    Check if CloudZero is setup in either config.yaml/env vars OR database.
 
     CloudZero is considered setup if:
     - CloudZero is configured in config.yaml callbacks, OR
@@ -500,3 +500,70 @@ async def cloudzero_export(
             status_code=500,
             detail={"error": f"Failed to perform CloudZero export: {str(e)}"},
         )
+
+
+@router.delete(
+    "/cloudzero/delete",
+    tags=["CloudZero"],
+    dependencies=[Depends(user_api_key_auth)],
+    response_model=CloudZeroInitResponse,
+)
+async def delete_cloudzero_settings(
+    user_api_key_dict: UserAPIKeyAuth = Depends(user_api_key_auth),
+):
+    """
+    Delete CloudZero settings from the database.
+
+    This endpoint removes the CloudZero configuration (API key, connection ID, timezone)
+    from the proxy database. Only the CloudZero settings entry will be deleted;
+    other configuration values in the database will remain unchanged.
+
+    Only admin users can delete CloudZero settings.
+    """
+    # Validation
+    if user_api_key_dict.user_role != LitellmUserRoles.PROXY_ADMIN:
+        raise HTTPException(
+            status_code=403,
+            detail={"error": CommonProxyErrors.not_allowed_access.value},
+        )
+
+    try:
+        from litellm.proxy.proxy_server import prisma_client
+
+        if prisma_client is None:
+            raise HTTPException(
+                status_code=500,
+                detail={"error": CommonProxyErrors.db_not_connected_error.value},
+            )
+
+        # Check if CloudZero settings exist
+        cloudzero_config = await prisma_client.db.litellm_config.find_first(
+            where={"param_name": "cloudzero_settings"}
+        )
+
+        if cloudzero_config is None:
+            raise HTTPException(
+                status_code=404,
+                detail={"error": "CloudZero settings not found"},
+            )
+
+        # Delete only the CloudZero settings entry
+        # This uses a specific where clause to target only the cloudzero_settings row
+        await prisma_client.db.litellm_config.delete(
+            where={"param_name": "cloudzero_settings"}
+        )
+
+        verbose_proxy_logger.info("CloudZero settings deleted successfully")
+
+        return CloudZeroInitResponse(
+            message="CloudZero settings deleted successfully", status="success"
+        )
+
+    except HTTPException as e:
+        raise e
+    except Exception as e:
+        verbose_proxy_logger.error(f"Error deleting CloudZero settings: {str(e)}")
+        raise HTTPException(
+            status_code=500,
+            detail={"error": f"Failed to delete CloudZero settings: {str(e)}"},
+        )
diff --git a/tests/test_litellm/proxy/spend_tracking/test_cloudzero_endpoints.py b/tests/test_litellm/proxy/spend_tracking/test_cloudzero_endpoints.py
new file mode 100644
index 0000000000..8ff5774bf5
--- /dev/null
+++ b/tests/test_litellm/proxy/spend_tracking/test_cloudzero_endpoints.py
@@ -0,0 +1,79 @@
+import os
+import sys
+from unittest.mock import AsyncMock, MagicMock
+
+import pytest
+from fastapi.testclient import TestClient
+
+sys.path.insert(
+    0, os.path.abspath("../../../..")
+)
+
+import litellm.proxy.proxy_server as ps
+from litellm.proxy._types import LitellmUserRoles, UserAPIKeyAuth
+from litellm.proxy.proxy_server import app
+
+
+@pytest.fixture
+def client():
+    return TestClient(app)
+
+
+@pytest.mark.asyncio
+async def test_delete_cloudzero_settings_success(client, monkeypatch):
+    mock_config = MagicMock()
+    mock_config.param_name = "cloudzero_settings"
+    mock_config.param_value = {"api_key": "encrypted_key", "connection_id": "conn_123", "timezone": "UTC"}
+
+    mock_litellm_config = MagicMock()
+    mock_litellm_config.find_first = AsyncMock(return_value=mock_config)
+    mock_litellm_config.delete = AsyncMock(return_value=mock_config)
+
+    mock_prisma = MagicMock()
+    mock_prisma.db = MagicMock()
+    mock_prisma.db.litellm_config = mock_litellm_config
+
+    monkeypatch.setattr(ps, "prisma_client", mock_prisma)
+
+    app.dependency_overrides[ps.user_api_key_auth] = lambda: UserAPIKeyAuth(
+        user_role=LitellmUserRoles.PROXY_ADMIN, user_id="admin_user"
+    )
+
+    try:
+        response = client.delete("/cloudzero/delete")
+        assert response.status_code == 200
+        data = response.json()
+        assert data["message"] == "CloudZero settings deleted successfully"
+        assert data["status"] == "success"
+        mock_litellm_config.find_first.assert_awaited_once()
+        mock_litellm_config.delete.assert_awaited_once()
+    finally:
+        app.dependency_overrides.pop(ps.user_api_key_auth, None)
+
+
+@pytest.mark.asyncio
+async def test_delete_cloudzero_settings_not_found(client, monkeypatch):
+    mock_litellm_config = MagicMock()
+    mock_litellm_config.find_first = AsyncMock(return_value=None)
+
+    mock_prisma = MagicMock()
+    mock_prisma.db = MagicMock()
+    mock_prisma.db.litellm_config = mock_litellm_config
+
+    monkeypatch.setattr(ps, "prisma_client", mock_prisma)
+
+    app.dependency_overrides[ps.user_api_key_auth] = lambda: UserAPIKeyAuth(
+        user_role=LitellmUserRoles.PROXY_ADMIN, user_id="admin_user"
+    )
+
+    try:
+        response = client.delete("/cloudzero/delete")
+        assert response.status_code == 404
+        data = response.json()
+        assert "error" in data["detail"]
+        assert "CloudZero settings not found" in data["detail"]["error"]
+        mock_litellm_config.find_first.assert_awaited_once()
+        mock_litellm_config.delete.assert_not_called()
+    finally:
+        app.dependency_overrides.pop(ps.user_api_key_auth, None)
+