diff --git a/litellm/proxy/hooks/proxy_track_cost_callback.py b/litellm/proxy/hooks/proxy_track_cost_callback.py
index 0734756d8ed..9a806fa4f87 100644
--- a/litellm/proxy/hooks/proxy_track_cost_callback.py
+++ b/litellm/proxy/hooks/proxy_track_cost_callback.py
@@ -110,6 +110,22 @@ class _ProxyDBLogger(CustomLogger):
                 "custom_llm_provider"
             ) or request_data.get("custom_llm_provider", "")
 
+        # Propagate standard_logging_object and litellm_trace_id from the
+        # Logging instance so that _get_session_id_for_spend_log uses the same
+        # trace_id that Langfuse received (via async_failure_handler).
+        # Without this, the DB session_id would be a random UUID that doesn't
+        # match the Langfuse trace_id, making failed requests unsearchable.
+        _litellm_logging_obj = request_data.get("litellm_logging_obj")
+        if _litellm_logging_obj is not None:
+            if "standard_logging_object" not in request_data:
+                request_data["standard_logging_object"] = getattr(
+                    _litellm_logging_obj, "model_call_details", {}
+                ).get("standard_logging_object")
+            if request_data.get("litellm_trace_id") is None:
+                request_data["litellm_trace_id"] = getattr(
+                    _litellm_logging_obj, "litellm_trace_id", None
+                )
+
         await proxy_logging_obj.db_spend_update_writer.update_database(
             token=user_api_key_dict.api_key,
             response_cost=0.0,
diff --git a/tests/test_litellm/proxy/hooks/test_proxy_track_cost_callback.py b/tests/test_litellm/proxy/hooks/test_proxy_track_cost_callback.py
index c46b8df5efc..d269a9531fd 100644
--- a/tests/test_litellm/proxy/hooks/test_proxy_track_cost_callback.py
+++ b/tests/test_litellm/proxy/hooks/test_proxy_track_cost_callback.py
@@ -169,6 +169,68 @@ async def test_track_cost_callback_skips_when_no_standard_logging_object():
         mock_proxy_logging.failed_tracking_alert.assert_not_called()
 
 
+@pytest.mark.asyncio
+async def test_async_post_call_failure_hook_propagates_trace_id_from_logging_obj():
+    """
+    When an LLM call fails, the proxy calls post_call_failure_hook with
+    request_data that doesn't contain standard_logging_object. But the
+    litellm_logging_obj (set by function_setup) is in request_data and
+    holds the standard_logging_object with the correct trace_id.
+
+    The failure hook should propagate this so the DB spend log's session_id
+    matches the Langfuse trace_id.
+    """
+    logger = _ProxyDBLogger()
+
+    user_api_key_dict = UserAPIKeyAuth(
+        api_key="test_api_key",
+        user_id="test_user_id",
+        team_id="test_team_id",
+    )
+
+    # Simulate a litellm_logging_obj with model_call_details containing
+    # the standard_logging_object (as set by _failure_handler_helper_fn)
+    mock_logging_obj = MagicMock()
+    mock_logging_obj.litellm_trace_id = "trace-id-from-logging-obj"
+    mock_logging_obj.model_call_details = {
+        "standard_logging_object": {
+            "trace_id": "trace-id-from-logging-obj",
+            "error_str": "InternalServerError",
+        }
+    }
+
+    request_data = {
+        "model": "gpt-4",
+        "messages": [{"role": "user", "content": "Hello"}],
+        "metadata": {},
+        "litellm_params": {},
+        "litellm_logging_obj": mock_logging_obj,
+        # Note: no "standard_logging_object" and no "litellm_trace_id"
+    }
+
+    with patch(
+        "litellm.proxy.db.db_spend_update_writer.DBSpendUpdateWriter.update_database",
+        new_callable=AsyncMock,
+    ) as mock_update_database:
+        await logger.async_post_call_failure_hook(
+            request_data=request_data,
+            original_exception=Exception("Provider error"),
+            user_api_key_dict=user_api_key_dict,
+        )
+
+        mock_update_database.assert_called_once()
+        call_kwargs = mock_update_database.call_args[1]["kwargs"]
+
+        # standard_logging_object should have been propagated from logging obj
+        assert call_kwargs.get("standard_logging_object") is not None
+        assert (
+            call_kwargs["standard_logging_object"]["trace_id"]
+            == "trace-id-from-logging-obj"
+        )
+        # litellm_trace_id should also be propagated as a fallback
+        assert call_kwargs.get("litellm_trace_id") == "trace-id-from-logging-obj"
+
+
 @pytest.mark.asyncio
 async def test_enrich_failure_metadata_with_team_alias():
     """