diff --git a/litellm/proxy/management_endpoints/ui_sso.py b/litellm/proxy/management_endpoints/ui_sso.py
index 56fddb70b9c..e79f11978a4 100644
--- a/litellm/proxy/management_endpoints/ui_sso.py
+++ b/litellm/proxy/management_endpoints/ui_sso.py
@@ -2339,6 +2339,7 @@ async def cli_poll_key(
             user_budget = user_db_obj.max_budget if user_db_obj is not None else None
 
             team_budget: Optional[float] = None
+            team_budget_resolved = False
             if team_id is not None:
                 try:
                     team_obj = await get_team_object(
@@ -2347,12 +2348,14 @@ async def cli_poll_key(
                         user_api_key_cache=user_api_key_cache,
                     )
                     team_budget = team_obj.max_budget
+                    team_budget_resolved = True
                 except Exception:
                     pass
 
             session_max_budget = (
                 litellm.max_ui_session_budget
-                if user_budget is None and team_budget is None
+                if user_budget is None
+                and (team_id is None or (team_budget_resolved and team_budget is None))
                 else None
             )
 
diff --git a/tests/test_litellm/proxy/management_endpoints/test_ui_sso.py b/tests/test_litellm/proxy/management_endpoints/test_ui_sso.py
index 044accb341a..75584ce4f65 100644
--- a/tests/test_litellm/proxy/management_endpoints/test_ui_sso.py
+++ b/tests/test_litellm/proxy/management_endpoints/test_ui_sso.py
@@ -2898,11 +2898,13 @@ class TestCLIKeyRegenerationFlow:
             assert result["team_id"] == selected_team
             assert result["teams"] == ["team-a", "team-b", "team-c"]
 
-            # Verify JWT was generated with correct team
+            # Verify JWT was generated with correct team and no budget cap
+            # (team lookup failed, but team_id is set, so fallback cap must not apply)
             mock_get_jwt.assert_called_once()
             jwt_call_args = mock_get_jwt.call_args
             assert jwt_call_args.kwargs["team_id"] == selected_team
             assert jwt_call_args.kwargs["team_alias"] == "Team B"
+            assert jwt_call_args.kwargs["max_budget"] is None
 
             # Verify session was deleted after JWT generation
             mock_cache.delete_cache.assert_called_once()