diff --git a/litellm/timeout.py b/litellm/timeout.py
index 33d1ce92e53..8a27f7c3fe5 100644
--- a/litellm/timeout.py
+++ b/litellm/timeout.py
@@ -65,13 +65,15 @@ def timeout(timeout_duration: float = 0.0, exception_to_raise=Timeout):
 
         @wraps(func)
         async def async_wrapper(*args, **kwargs):
-            local_timeout_duration = timeout_duration
-            if "force_timeout" in kwargs:
-                local_timeout_duration = kwargs["force_timeout"]
-            elif "request_timeout" in kwargs and kwargs["request_timeout"] is not None:
-                local_timeout_duration = kwargs["request_timeout"]
+            local_timeout_duration: Final = (
+                kwargs["force_timeout"]
+                if kwargs.get("force_timeout") is not None
+                else kwargs["request_timeout"]
+                if kwargs.get("request_timeout") is not None
+                else timeout_duration
+            )
             try:
-                value: Final = await asyncio.wait_for(func(*args, **kwargs), timeout=timeout_duration)
+                value: Final = await asyncio.wait_for(func(*args, **kwargs), timeout=local_timeout_duration)
                 return value
             except asyncio.TimeoutError:
                 model: Final = args[0] if len(args) > 0 else kwargs["model"]
diff --git a/tests/unit/test_timeout.py b/tests/unit/test_timeout.py
new file mode 100644
index 00000000000..4f8a247f90c
--- /dev/null
+++ b/tests/unit/test_timeout.py
@@ -0,0 +1,63 @@
+"""Unit tests for litellm.timeout decorator."""
+
+import asyncio
+import time
+from typing import Final
+
+import pytest
+
+from litellm.exceptions import Timeout
+from litellm.timeout import timeout
+
+
+@pytest.mark.asyncio
+@pytest.mark.parametrize("timeout_arg", ["request_timeout", "force_timeout"])
+async def test_async_timeout_decorator_enforces_per_call_timeout(timeout_arg: str) -> None:
+    @timeout(timeout_duration=60.0)
+    async def hung_func(**kwargs):
+        await asyncio.sleep(10.0)
+        return "never"
+
+    with pytest.raises(Timeout) as exc_info:
+        await hung_func(**{timeout_arg: 0.001, "model": "test-model"})
+
+    assert "0.001 second(s)" in str(exc_info.value)
+
+
+@pytest.mark.asyncio
+@pytest.mark.parametrize("timeout_arg", ["request_timeout", "force_timeout"])
+async def test_async_timeout_decorator_extends_duration_with_per_call_timeout(
+    timeout_arg: str,
+) -> None:
+    @timeout(timeout_duration=0.001)
+    async def delayed_func(**kwargs):
+        await asyncio.sleep(0.01)
+        return "completed"
+
+    result: Final = await delayed_func(**{timeout_arg: 60.0, "model": "test-model"})
+    assert result == "completed"
+
+
+@pytest.mark.asyncio
+async def test_async_timeout_decorator_handles_none_force_timeout() -> None:
+    @timeout(timeout_duration=0.001)
+    async def hung_func(**kwargs):
+        await asyncio.sleep(10.0)
+        return "never"
+
+    with pytest.raises(Timeout) as exc_info:
+        await hung_func(force_timeout=None, model="test-model")
+
+    assert "0.001 second(s)" in str(exc_info.value)
+
+
+def test_sync_timeout_decorator_enforces_per_call_timeout() -> None:
+    @timeout(timeout_duration=60.0)
+    def hung_sync_func(**kwargs):
+        time.sleep(10.0)
+        return "never"
+
+    with pytest.raises(Timeout) as exc_info:
+        hung_sync_func(request_timeout=0.001, model="test-model")
+
+    assert "0.001 second(s)" in str(exc_info.value)