diff --git a/litellm/llms/openai/completion/handler.py b/litellm/llms/openai/completion/handler.py
index c7b59509eb0..6dc738afe83 100644
--- a/litellm/llms/openai/completion/handler.py
+++ b/litellm/llms/openai/completion/handler.py
@@ -1,4 +1,6 @@
+import asyncio
 import json
+import traceback
 from collections.abc import Callable
 from typing import Final
 
@@ -298,7 +300,13 @@ class OpenAITextCompletion(BaseLLM):
         else:
             openai_client = client
 
-        raw_response: Final = await openai_client.completions.with_raw_response.create(**data)
+        try:
+            raw_response: Final = await openai_client.completions.with_raw_response.create(**data)
+        except Exception as e:
+            asyncio.create_task(
+                logging_obj.dispatch_failure_handlers(e, traceback.format_exc(), prefer_async_handlers=True)
+            )
+            raise
         response: Final = raw_response.parse()
         streamwrapper: Final = CustomStreamWrapper(
             completion_stream=response,
diff --git a/tests/unit/llms/openai/completion/test_completion_handler.py b/tests/unit/llms/openai/completion/test_completion_handler.py
index 329956605ab..4af8c3ad3c4 100644
--- a/tests/unit/llms/openai/completion/test_completion_handler.py
+++ b/tests/unit/llms/openai/completion/test_completion_handler.py
@@ -6,6 +6,9 @@ Regression tests for https://github.com/BerriAI/litellm/issues/27410
 """
 
 
+import asyncio
+
+import httpx
 import pytest
 import respx
 from httpx import Response
@@ -13,6 +16,7 @@ from httpx import Response
 
 import litellm
 from litellm import atext_completion, text_completion
+from litellm.integrations.custom_logger import CustomLogger
 
 
 @pytest.fixture(autouse=True)
@@ -88,3 +92,42 @@ async def test_acompletion_forwards_client_headers_to_provider(
 
     request_headers = mock_completions_endpoint.calls.last.request.headers
     assert request_headers["x-mycorp-llmcall-id"] == "abc-123"
+
+class _FailureRecorder(CustomLogger):
+    def __init__(self):
+        self.payloads = []
+        self.logged = asyncio.Event()
+
+    async def async_log_failure_event(self, kwargs, response_obj, start_time, end_time):
+        self.payloads.append(kwargs["standard_logging_object"])
+        self.logged.set()
+
+
+@pytest.mark.parametrize(
+    ("provider_response", "expected_error"),
+    [
+        pytest.param(httpx.ConnectError("connection refused"), litellm.APIConnectionError, id="connection-refused"),
+        pytest.param(Response(500, json={"error": {"message": "boom"}}), litellm.InternalServerError, id="5xx-before-first-byte"),
+    ],
+)
+@respx.mock
+async def test_astream_failing_before_first_byte_logs_one_failure(provider_response, expected_error, monkeypatch):
+    respx.post("https://api.openai.com/v1/completions").mock(side_effect=provider_response)
+    recorder = _FailureRecorder()
+    monkeypatch.setattr(litellm, "disable_aiohttp_transport", True)
+    monkeypatch.setattr(litellm, "callbacks", [recorder])
+    monkeypatch.setattr(litellm, "_async_failure_callback", [recorder])
+
+    response = await atext_completion(
+        model="gpt-3.5-turbo-instruct", prompt="hello", max_tokens=5, stream=True, max_retries=0
+    )
+    with pytest.raises(expected_error):
+        async for _ in response:
+            pass
+    await asyncio.wait_for(recorder.logged.wait(), timeout=5)
+
+    assert len(recorder.payloads) == 1
+    payload = recorder.payloads[0]
+    assert payload["status"] == "failure"
+    assert payload["custom_llm_provider"] == "text-completion-openai"
+    assert payload["model"] == "gpt-3.5-turbo-instruct"