diff --git a/litellm/proxy/proxy_server.py b/litellm/proxy/proxy_server.py
index e50e58838e6..37a0285b196 100644
--- a/litellm/proxy/proxy_server.py
+++ b/litellm/proxy/proxy_server.py
@@ -4089,6 +4089,8 @@ class ProxyConfig:
                     verbose_proxy_logger.debug(
                         f"litellm.post_call_rules: {litellm.post_call_rules}"
                     )
+                elif key == "max_budget":
+                    litellm.max_budget = float(value)
                 elif key == "max_internal_user_budget":
                     litellm.max_internal_user_budget = float(value)  # type: ignore
                 elif key == "default_max_internal_user_budget":
diff --git a/tests/test_litellm/proxy/test_proxy_server.py b/tests/test_litellm/proxy/test_proxy_server.py
index 8aa839cdfcb..b2e36fd64cf 100644
--- a/tests/test_litellm/proxy/test_proxy_server.py
+++ b/tests/test_litellm/proxy/test_proxy_server.py
@@ -2319,6 +2319,36 @@ async def test_custom_ui_sso_sign_in_handler_config_loading():
         os.unlink(config_file_path)
 
 
+@pytest.mark.asyncio
+async def test_load_config_max_budget_env_var_coerced_to_float(tmp_path, monkeypatch):
+    """
+    max_budget configured as os.environ/MAX_BUDGET resolves to a string;
+    load_config must coerce it to float so the startup check
+    `litellm.max_budget > 0` doesn't raise TypeError.
+    """
+    from litellm.proxy.proxy_server import ProxyConfig
+
+    monkeypatch.setenv("MAX_BUDGET", "10")
+    test_config = {
+        "model_list": [],
+        "litellm_settings": {"max_budget": "os.environ/MAX_BUDGET"},
+    }
+    config_file = tmp_path / "config.yaml"
+    config_file.write_text(yaml.dump(test_config))
+
+    original_max_budget = litellm.max_budget
+    try:
+        proxy_config = ProxyConfig()
+        await proxy_config.load_config(
+            router=MagicMock(), config_file_path=str(config_file)
+        )
+        assert isinstance(litellm.max_budget, float)
+        assert litellm.max_budget == 10.0
+        assert litellm.max_budget > 0
+    finally:
+        litellm.max_budget = original_max_budget
+
+
 @pytest.mark.asyncio
 async def test_load_environment_variables_direct_and_os_environ():
     """