diff --git a/litellm/responses/mcp/chat_completions_handler.py b/litellm/responses/mcp/chat_completions_handler.py
index 2a0406f9a4d..bf948df52c2 100644
--- a/litellm/responses/mcp/chat_completions_handler.py
+++ b/litellm/responses/mcp/chat_completions_handler.py
@@ -453,7 +453,9 @@ async def acompletion_with_mcp(
                 )
 
                 # Make follow-up call with streaming
-                follow_up_call_args: Final = dict(self.base_call_args)
+                follow_up_call_args: Final = LiteLLM_Proxy_MCP_Handler._prepare_follow_up_call_params(
+                    self.base_call_args
+                )
                 follow_up_call_args["messages"] = follow_up_messages
                 follow_up_call_args["stream"] = True
                 # Ensure follow-up call doesn't trigger MCP handler again
@@ -625,7 +627,9 @@ async def acompletion_with_mcp(
     )
 
     # Make follow-up call with original stream setting
-    follow_up_call_args: Final = dict(base_call_args)
+    follow_up_call_args: Final = LiteLLM_Proxy_MCP_Handler._prepare_follow_up_call_params(
+        base_call_args
+    )
     follow_up_call_args["messages"] = follow_up_messages
     follow_up_call_args["stream"] = stream
 
diff --git a/litellm/responses/mcp/litellm_proxy_mcp_handler.py b/litellm/responses/mcp/litellm_proxy_mcp_handler.py
index 197d0c02ba8..46bb067eeeb 100644
--- a/litellm/responses/mcp/litellm_proxy_mcp_handler.py
+++ b/litellm/responses/mcp/litellm_proxy_mcp_handler.py
@@ -71,6 +71,28 @@ class LiteLLM_Proxy_MCP_Handler:
     This handles when a user passes mcp server_url="litellm_proxy" in their tools.
     """
 
+    @staticmethod
+    def _prepare_follow_up_call_params(params: Mapping[str, Any]) -> dict[str, Any]:
+        """Copy request params without state owned by the previous LLM call.
+
+        MCP auto-execution keeps the trace identifier so chained rounds remain
+        correlated, but each provider call must create its own logging object and
+        call identifier. Reusing either makes success dispatch one-shot and drops
+        spend rows for later rounds.
+        """
+        follow_up_params = dict(params)
+        follow_up_params.pop("litellm_logging_obj", None)
+        follow_up_params.pop("litellm_call_id", None)
+
+        nested_params = follow_up_params.get("litellm_params")
+        if isinstance(nested_params, dict):
+            nested_params = dict(nested_params)
+            nested_params.pop("litellm_logging_obj", None)
+            nested_params.pop("litellm_call_id", None)
+            follow_up_params["litellm_params"] = nested_params
+
+        return follow_up_params
+
     @staticmethod
     def _get_parent_request_tags(kwargs: dict[str, Any] | None) -> list[str]:
         """Tags from the parent LLM request, using the same extraction logic as standard logging (incl. User-Agent)."""
@@ -702,13 +724,19 @@ class LiteLLM_Proxy_MCP_Handler:
                         },
                     }
                 ]
-                tool_logging_call_id = litellm_call_id or str(uuid.uuid4())
+                # SpendLogs.request_id is unique. The parent LLM call ID is
+                # therefore metadata, not the tool execution's call ID: reusing
+                # it causes all but the first MCP tool row to be skipped by the
+                # database's duplicate protection.
+                tool_logging_call_id = str(uuid.uuid4())
                 logging_metadata: dict[str, object] = {
                     "tool_call_id": tool_call_id,
                     "tool_name": sanitized_tool_name,
                     "server_name": server_name,
                     "headers": logging_safe_headers,
                 }
+                if litellm_call_id:
+                    logging_metadata["parent_litellm_call_id"] = litellm_call_id
                 logging_request_data = {
                     "model": f"MCP: {tool_name}",
                     "metadata": logging_metadata,
diff --git a/litellm/responses/mcp/mcp_streaming_iterator.py b/litellm/responses/mcp/mcp_streaming_iterator.py
index c7471518398..69e698f7f65 100644
--- a/litellm/responses/mcp/mcp_streaming_iterator.py
+++ b/litellm/responses/mcp/mcp_streaming_iterator.py
@@ -782,7 +782,9 @@ class MCPEnhancedStreamingIterator(BaseResponsesAPIStreamingIterator):
                 )
 
                 # Make follow-up call with streaming
-                follow_up_params: Final = self.original_request_params.copy()
+                follow_up_params: Final = LiteLLM_Proxy_MCP_Handler._prepare_follow_up_call_params(
+                    self.original_request_params
+                )
                 follow_up_params.update(
                     {
                         "input": follow_up_input,
diff --git a/tests/test_litellm/responses/mcp/test_litellm_proxy_mcp_handler.py b/tests/test_litellm/responses/mcp/test_litellm_proxy_mcp_handler.py
index b33ed3bb581..a1039a20489 100644
--- a/tests/test_litellm/responses/mcp/test_litellm_proxy_mcp_handler.py
+++ b/tests/test_litellm/responses/mcp/test_litellm_proxy_mcp_handler.py
@@ -410,7 +410,7 @@ async def test_execute_tool_calls_logs_failure_via_post_call_failure_hook(monkey
 
 
 @pytest.mark.asyncio
-async def test_execute_tool_calls_passes_litellm_call_id_and_trace_id_to_function_setup(
+async def test_execute_tool_calls_uses_unique_call_ids_and_preserves_parent_context(
     monkeypatch,
 ):
     """
@@ -420,10 +420,10 @@ async def test_execute_tool_calls_passes_litellm_call_id_and_trace_id_to_functio
     _setup_proxy_logging(monkeypatch)
     call_tool_mock = _setup_mcp_call_environment(monkeypatch)
 
-    captured = {}
+    captured = []
 
     def fake_function_setup(*_args, **kwargs):
-        captured.update(kwargs)
+        captured.append(kwargs)
         return None, None
 
     # NOTE: Don't patch via dotted string path here because `litellm.responses`
@@ -435,7 +435,10 @@ async def test_execute_tool_calls_passes_litellm_call_id_and_trace_id_to_functio
     monkeypatch.setattr(handler_module, "function_setup", fake_function_setup)
 
     tool_name = "deepwiki-read_wiki_structure"
-    tool_calls = [{"id": "call-1", "function": {"name": tool_name, "arguments": "{}"}}]
+    tool_calls = [
+        {"id": "call-1", "function": {"name": tool_name, "arguments": "{}"}},
+        {"id": "call-2", "function": {"name": tool_name, "arguments": "{}"}},
+    ]
 
     await LiteLLM_Proxy_MCP_Handler._execute_tool_calls(
         tool_server_map={tool_name: "deepwiki"},
@@ -446,10 +449,36 @@ async def test_execute_tool_calls_passes_litellm_call_id_and_trace_id_to_functio
     )
 
     # Ensure the tool call was attempted (sanity)
-    assert call_tool_mock.await_count == 1
+    assert call_tool_mock.await_count == 2
+    assert len(captured) == 2
+    assert captured[0]["litellm_call_id"] != captured[1]["litellm_call_id"]
+    assert all(item["litellm_call_id"] != "cid" for item in captured)
+    assert all(item["litellm_trace_id"] == "tid" for item in captured)
+    assert all(item["metadata"]["parent_litellm_call_id"] == "cid" for item in captured)
 
-    assert captured.get("litellm_call_id") == "cid"
-    assert captured.get("litellm_trace_id") == "tid"
+
+def test_prepare_follow_up_call_params_resets_per_call_logging_state():
+    original = {
+        "model": "gpt-4",
+        "litellm_call_id": "parent-call",
+        "litellm_logging_obj": object(),
+        "litellm_trace_id": "trace-1",
+        "litellm_params": {
+            "litellm_call_id": "nested-parent-call",
+            "litellm_logging_obj": object(),
+            "metadata": {"team": "legal"},
+        },
+    }
+
+    follow_up = LiteLLM_Proxy_MCP_Handler._prepare_follow_up_call_params(original)
+
+    assert "litellm_call_id" not in follow_up
+    assert "litellm_logging_obj" not in follow_up
+    assert "litellm_call_id" not in follow_up["litellm_params"]
+    assert "litellm_logging_obj" not in follow_up["litellm_params"]
+    assert follow_up["litellm_trace_id"] == "trace-1"
+    assert follow_up["litellm_params"]["metadata"] == {"team": "legal"}
+    assert original["litellm_call_id"] == "parent-call"
 
 
 @pytest.mark.asyncio