diff --git a/.github/workflows/test-litellm-matrix.yml b/.github/workflows/test-litellm-matrix.yml
index 7aa98036b37..5590662f5ae 100644
--- a/.github/workflows/test-litellm-matrix.yml
+++ b/.github/workflows/test-litellm-matrix.yml
@@ -89,9 +89,8 @@ jobs:
         run: |
           poetry config virtualenvs.in-project true
           poetry install --with dev,proxy-dev --extras "proxy semantic-router"
-          # pytest-rerunfailures is in pyproject.toml (v14.0 for Python 3.9 compat)
-          # pytest-xdist is required for -n (parallel workers) flag
-          poetry run pip install pytest-xdist google-genai==1.22.0 \
+          # pytest-rerunfailures and pytest-xdist are in pyproject.toml dev dependencies
+          poetry run pip install google-genai==1.22.0 \
             google-cloud-aiplatform>=1.38 fastapi-offline==1.7.3 python-multipart==0.0.22 openapi-core
 
       - name: Setup litellm-enterprise
diff --git a/pyproject.toml b/pyproject.toml
index 469866c0fa8..52b1b9452f9 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -151,7 +151,7 @@ pytest = "^7.4.3"
 pytest-mock = "^3.12.0"
 pytest-asyncio = "^0.21.1"
 pytest-postgresql = "^6.0.0"
-pytest-retry = "^1.6.3"
+pytest-xdist = "^3.5.0"
 requests-mock = "^1.12.1"
 responses = "^0.25.7"
 respx = "^0.22.0"