diff --git a/litellm/proxy/auth/user_api_key_auth.py b/litellm/proxy/auth/user_api_key_auth.py
index ac300b47635..75db608739c 100644
--- a/litellm/proxy/auth/user_api_key_auth.py
+++ b/litellm/proxy/auth/user_api_key_auth.py
@@ -2679,7 +2679,9 @@ def _get_temp_budget_increase(valid_token: UserAPIKeyAuth):
     valid_token_metadata = valid_token.metadata
     if "temp_budget_increase" in valid_token_metadata and "temp_budget_expiry" in valid_token_metadata:
         expiry = datetime.fromisoformat(valid_token_metadata["temp_budget_expiry"])
-        if expiry > datetime.now():
+        if expiry.tzinfo is None:
+            expiry = expiry.replace(tzinfo=timezone.utc)
+        if expiry > datetime.now(timezone.utc):
             return valid_token_metadata["temp_budget_increase"]
     return None
 
diff --git a/tests/proxy_unit_tests/test_proxy_utils.py b/tests/proxy_unit_tests/test_proxy_utils.py
index d36d73da2c3..d22b343d843 100644
--- a/tests/proxy_unit_tests/test_proxy_utils.py
+++ b/tests/proxy_unit_tests/test_proxy_utils.py
@@ -1732,6 +1732,35 @@ def test_get_temp_budget_increase():
     assert _get_temp_budget_increase(valid_token) == 100
 
 
+def test_get_temp_budget_increase_tz_aware_expiry():
+    from datetime import datetime, timedelta, timezone
+
+    from litellm.proxy._types import UserAPIKeyAuth
+    from litellm.proxy.auth.user_api_key_auth import _get_temp_budget_increase
+
+    future_expiry = (datetime.now(timezone.utc) + timedelta(days=1)).isoformat()
+    valid_token = UserAPIKeyAuth(
+        max_budget=100,
+        spend=0,
+        metadata={
+            "temp_budget_increase": 100,
+            "temp_budget_expiry": future_expiry,
+        },
+    )
+    assert _get_temp_budget_increase(valid_token) == 100
+
+    past_expiry = (datetime.now(timezone.utc) - timedelta(days=1)).isoformat()
+    expired_token = UserAPIKeyAuth(
+        max_budget=100,
+        spend=0,
+        metadata={
+            "temp_budget_increase": 100,
+            "temp_budget_expiry": past_expiry,
+        },
+    )
+    assert _get_temp_budget_increase(expired_token) is None
+
+
 def test_update_key_budget_with_temp_budget_increase():
     from datetime import datetime, timedelta