diff --git a/litellm/constants.py b/litellm/constants.py
index ed89474600e..75867781bd4 100644
--- a/litellm/constants.py
+++ b/litellm/constants.py
@@ -1645,6 +1645,8 @@ LITELLM_SETTINGS_SAFE_DB_OVERRIDES: Final = [
     "cost_margin_config",
     "block_requests_for_models_without_pricing",
     "budget_exceeded_throttle_percentage",
+    # Proxy-wide budget stored via POST /config/update; applied to litellm.max_budget on reload.
+    "max_budget",
     # Every field editable from the Admin UI (proxy_server._GENERAL_SETTINGS_UI_LITELLM_FIELDS)
     # must be listed here so a DB write from one worker overrides the live litellm attribute on
     # the others when config reloads; otherwise peer workers stay on their startup value.
diff --git a/litellm/proxy/proxy_server.py b/litellm/proxy/proxy_server.py
index af26a9f669e..55518b460e0 100644
--- a/litellm/proxy/proxy_server.py
+++ b/litellm/proxy/proxy_server.py
@@ -3835,6 +3835,27 @@ def _scrub_guardrail_inner(inner: dict[str, JsonValue]) -> None:
         inner["guardrail"] = None
 
 
+def _apply_safe_db_litellm_setting(key: str, value: object) -> None:
+    """Apply a DB-overlaid ``litellm_settings`` key to the live ``litellm`` module.
+
+    ``max_budget`` is coerced to float to match startup config loading
+    (``ProxyConfig.load_config``). A ``None`` DB value leaves the current
+    runtime attribute unchanged; a non-numeric value is ignored (with a
+    warning) rather than aborting the reload of an already-running proxy.
+    """
+    if key == "max_budget":
+        if value is None:
+            return
+        try:
+            budget = float(value)
+        except (TypeError, ValueError):
+            verbose_proxy_logger.warning("Ignoring non-numeric DB litellm_settings.max_budget override: %r", value)
+            return
+        litellm.max_budget = budget
+        return
+    setattr(litellm, key, value)
+
+
 def _scrub_db_overlay_remote_module_loads(section: str, db_value: JsonValue) -> JsonValue:
     """Strip ``s3://`` / ``gcs://`` entries from the DB-overlay value for
     fields whose contents reach ``get_instance_fn``. The same scheme is
@@ -6656,7 +6677,7 @@ class ProxyConfig:
         elif param_name == "litellm_settings" and isinstance(db_param_value, dict):
             for key, value in db_param_value.items():
                 if key in LITELLM_SETTINGS_SAFE_DB_OVERRIDES:  # params that are safe to override with db values
-                    setattr(litellm, key, value)
+                    _apply_safe_db_litellm_setting(key, value)
 
         # If param doesn't exist in config, add it
         if param_name not in current_config:
diff --git a/tests/test_litellm/proxy/test_proxy_server.py b/tests/test_litellm/proxy/test_proxy_server.py
index 2c8ae9f0370..dd8d98029bc 100644
--- a/tests/test_litellm/proxy/test_proxy_server.py
+++ b/tests/test_litellm/proxy/test_proxy_server.py
@@ -9838,6 +9838,67 @@ def test_prompt_caching_settings_propagate_on_config_reload(monkeypatch, field_n
     assert getattr(litellm, field_name) == db_value
 
 
+@pytest.mark.parametrize(
+    "db_value, expected",
+    [
+        (10, 10.0),
+        ("10", 10.0),
+        (0.5, 0.5),
+    ],
+)
+def test_max_budget_propagates_on_config_reload(monkeypatch, db_value, expected):
+    """Regression for #36533: a DB-stored litellm_settings.max_budget must overlay the live
+    litellm.max_budget when config reloads (STORE_MODEL_IN_DB=True). It was absent from
+    LITELLM_SETTINGS_SAFE_DB_OVERRIDES, so peer workers kept enforcing the stale config.yaml value."""
+    import litellm.proxy.proxy_server as ps
+
+    # peer worker booted with the stale config.yaml value
+    monkeypatch.setattr(litellm, "max_budget", 0.00001)
+
+    pc = ps.ProxyConfig()
+    pc._update_config_fields(
+        current_config={"litellm_settings": {}},
+        param_name="litellm_settings",
+        db_param_value={"max_budget": db_value},
+    )
+
+    assert litellm.max_budget == expected
+    assert isinstance(litellm.max_budget, float)
+
+
+def test_max_budget_none_db_value_leaves_runtime_unchanged(monkeypatch):
+    """A null DB max_budget must not clobber the running litellm.max_budget."""
+    import litellm.proxy.proxy_server as ps
+
+    monkeypatch.setattr(litellm, "max_budget", 7.5)
+
+    pc = ps.ProxyConfig()
+    pc._update_config_fields(
+        current_config={"litellm_settings": {}},
+        param_name="litellm_settings",
+        db_param_value={"max_budget": None},
+    )
+
+    assert litellm.max_budget == 7.5
+
+
+def test_max_budget_invalid_db_value_is_ignored(monkeypatch):
+    """A non-numeric DB max_budget must be skipped (logged), not abort the reload of a
+    running proxy or clobber the live litellm.max_budget."""
+    import litellm.proxy.proxy_server as ps
+
+    monkeypatch.setattr(litellm, "max_budget", 7.5)
+
+    pc = ps.ProxyConfig()
+    pc._update_config_fields(
+        current_config={"litellm_settings": {}},
+        param_name="litellm_settings",
+        db_param_value={"max_budget": "not-a-number"},
+    )
+
+    assert litellm.max_budget == 7.5
+
+
 def test_get_config_list_marks_untouched_prompt_caching_flag_as_not_set(monkeypatch):
     """The flag defaults to False rather than None, so a plain 'is not None' check would
     report the default as 'In Config' and imply an admin had set it."""