diff --git a/litellm/proxy/auth/litellm_license.py b/litellm/proxy/auth/litellm_license.py
index 7998ea9b4b1..0a67105ef59 100644
--- a/litellm/proxy/auth/litellm_license.py
+++ b/litellm/proxy/auth/litellm_license.py
@@ -140,6 +140,18 @@ class LicenseCheck:
         ):
             return False
         return total_users > self.airgapped_license_data["max_users"]
+    
+    def is_team_count_over_limit(self, team_count: int) -> bool:
+        """
+        Check if the license is over the limit
+        """
+        if self.airgapped_license_data is None:
+            return False
+        if "max_teams" not in self.airgapped_license_data or not isinstance(
+            self.airgapped_license_data["max_teams"], int
+        ):
+            return False
+        return team_count > self.airgapped_license_data["max_teams"]
 
     def verify_license_without_api_request(self, public_key, license_key):
         try:
diff --git a/litellm/proxy/management_endpoints/team_endpoints.py b/litellm/proxy/management_endpoints/team_endpoints.py
index 8d7e12a6f89..a44da618962 100644
--- a/litellm/proxy/management_endpoints/team_endpoints.py
+++ b/litellm/proxy/management_endpoints/team_endpoints.py
@@ -295,6 +295,7 @@ async def new_team(  # noqa: PLR0915
     """
     try:
         from litellm.proxy.proxy_server import (
+            _license_check,
             create_audit_log_for_update,
             litellm_proxy_admin_name,
             prisma_client,
@@ -302,6 +303,15 @@ async def new_team(  # noqa: PLR0915
 
         if prisma_client is None:
             raise HTTPException(status_code=500, detail={"error": "No db connected"})
+        
+
+        # Check if license is over limit
+        total_teams = await prisma_client.db.litellm_teamtable.count()
+        if total_teams and _license_check.is_team_count_over_limit(team_count=total_teams):
+            raise HTTPException(
+                status_code=403,
+                detail="License is over limit. Please contact support@berri.ai to upgrade your license.",
+            )
 
         if data.team_id is None:
             data.team_id = str(uuid.uuid4())