diff --git a/litellm/litellm_core_utils/prompt_templates/factory.py b/litellm/litellm_core_utils/prompt_templates/factory.py
index 320219f710a..2a9d258e9af 100644
--- a/litellm/litellm_core_utils/prompt_templates/factory.py
+++ b/litellm/litellm_core_utils/prompt_templates/factory.py
@@ -5372,14 +5372,15 @@ def _parse_tool_call_arguments(raw: Any, tool_name: str | None, context: str) ->
         return raw
     if not isinstance(raw, str):
         return {}
-    if raw == REDACTED_BY_LITELLM:
-        return {}
+    normalized_raw: Final = "{}" if raw == REDACTED_BY_LITELLM else raw
     from litellm.litellm_core_utils.prompt_templates.common_utils import (
         parse_tool_call_arguments,
     )
 
     try:
-        parsed: Final = parse_tool_call_arguments(raw, tool_name=tool_name, context=context)
+        parsed: Final = parse_tool_call_arguments(
+            normalized_raw, tool_name=tool_name, context=context
+        )
     except ValueError as e:
         verbose_logger.warning("Failed to parse tool call arguments: %s", e)
         return {}