diff --git a/litellm/proxy/hooks/proxy_track_cost_callback.py b/litellm/proxy/hooks/proxy_track_cost_callback.py
index a61fda91fd..86f7849bb1 100644
--- a/litellm/proxy/hooks/proxy_track_cost_callback.py
+++ b/litellm/proxy/hooks/proxy_track_cost_callback.py
@@ -489,6 +489,7 @@ async def _update_database_and_spend_counters(
                 await _invalidate_budget_reservation_counters(
                     budget_reservation=budget_reservation
                 )
+                budget_reservation["finalized"] = True
             except Exception:
                 verbose_proxy_logger.exception(
                     "Failed to invalidate budget reservation counters after spend counter update failed"
diff --git a/tests/test_litellm/proxy/hooks/test_proxy_track_cost_callback.py b/tests/test_litellm/proxy/hooks/test_proxy_track_cost_callback.py
index 9f414f560c..351d3059d4 100644
--- a/tests/test_litellm/proxy/hooks/test_proxy_track_cost_callback.py
+++ b/tests/test_litellm/proxy/hooks/test_proxy_track_cost_callback.py
@@ -450,6 +450,7 @@ async def test_update_database_and_spend_counters_invalidates_reservation_when_c
         mock_invalidate_budget_reservation_counters.assert_awaited_once_with(
             budget_reservation=budget_reservation,
         )
+        assert budget_reservation["finalized"] is True
 
     proxy_logging_obj.db_spend_update_writer.update_database.assert_awaited_once()