diff --git a/litellm/proxy/management_endpoints/common_utils.py b/litellm/proxy/management_endpoints/common_utils.py
index 116a9e6ff42..546078cce09 100644
--- a/litellm/proxy/management_endpoints/common_utils.py
+++ b/litellm/proxy/management_endpoints/common_utils.py
@@ -578,6 +578,8 @@ async def _upsert_budget_and_membership(
             default_budget_dict: Final = default_budget_row.model_dump()
             for field in _TEAM_MEMBER_BUDGET_LIMIT_FIELDS:
                 value = default_budget_dict.get(field)
+                if field == "max_budget" and value == 0 and not is_shared_default:
+                    continue
                 if _is_set_budget_value(value):
                     create_data[field] = value
 
diff --git a/tests/test_litellm/proxy/common_utils/test_upsert_budget_membership.py b/tests/test_litellm/proxy/common_utils/test_upsert_budget_membership.py
index 3b7bd054874..fbd6ef51f05 100644
--- a/tests/test_litellm/proxy/common_utils/test_upsert_budget_membership.py
+++ b/tests/test_litellm/proxy/common_utils/test_upsert_budget_membership.py
@@ -219,9 +219,6 @@ async def test_create_seeds_reset_at_and_links(mock_tx, fake_user):
     )
 
 
-# TEST: with no existing budget, a patch carrying only the temporary increase
-# pair must still create a budget row and link it, so the fields the 200
-# response echoes are actually stored.
 @pytest.mark.asyncio
 async def test_create_from_temp_budget_pair_only(mock_tx, fake_user):
     expiry = datetime(2100, 1, 1, tzinfo=timezone.utc)
@@ -243,9 +240,6 @@ async def test_create_from_temp_budget_pair_only(mock_tx, fake_user):
     mock_tx.litellm_teammembership.update.assert_not_called()
 
 
-# TEST: a member with no budget row who falls back to the team default at
-# enforcement time must keep that default cap on the new private row, or the
-# temporary increase has nothing to add to.
 @pytest.mark.asyncio
 async def test_create_from_temp_pair_keeps_team_default_cap(mock_tx, fake_user):
     expiry = datetime(2100, 1, 1, tzinfo=timezone.utc)
@@ -271,6 +265,29 @@ async def test_create_from_temp_pair_keeps_team_default_cap(mock_tx, fake_user):
     mock_tx.litellm_teammembership.upsert.assert_awaited_once()
 
 
+@pytest.mark.asyncio
+async def test_create_from_temp_pair_skips_zero_team_default_cap(mock_tx, fake_user):
+    expiry = datetime(2100, 1, 1, tzinfo=timezone.utc)
+    mock_tx.litellm_budgettable.find_unique = AsyncMock(
+        return_value=budget_row(budget_id="team-default-budget-1", max_budget=0, rpm_limit=10)
+    )
+    await _upsert_budget_and_membership(
+        mock_tx,
+        team_id="team-default",
+        user_id="user-unlinked",
+        existing_budget_id=None,
+        user_api_key_dict=fake_user,
+        budget_patch={"temp_budget_increase": 1.0, "temp_budget_expiry": expiry},
+        team_default_budget_id="team-default-budget-1",
+    )
+
+    data = mock_tx.litellm_budgettable.create.await_args.kwargs["data"]
+    assert "max_budget" not in data
+    assert data["rpm_limit"] == 10
+    assert data["temp_budget_increase"] == 1.0
+    mock_tx.litellm_teammembership.upsert.assert_awaited_once()
+
+
 # TEST: clone-on-write when the membership still points at the team's shared
 # default budget. Editing this member must fork a private budget instead of
 # mutating the shared row, and cloning a duration must seed a fresh reset time.