diff --git a/litellm/router_utils/cooldown_handlers.py b/litellm/router_utils/cooldown_handlers.py
index c362c6899db..330500789a4 100644
--- a/litellm/router_utils/cooldown_handlers.py
+++ b/litellm/router_utils/cooldown_handlers.py
@@ -185,7 +185,14 @@ def _should_cooldown_based_on_deployment_policy(
     override that safety net, matching `_has_explicit_allowed_fails_policy_for_exception`.
     """
     allowed_fails_from_policy: Final = _resolve_allowed_fails_from_policy(dep_policy, original_exception)
-    if allowed_fails_from_policy is None and dep_allowed_fails is not None and is_single_deployment_model_group:
+    if (
+        allowed_fails_from_policy is None
+        and is_single_deployment_model_group
+        and (
+            dep_allowed_fails is not None
+            or litellm_router_instance.get_allowed_fails_from_policy(original_exception) is None
+        )
+    ):
         return False
 
     allowed_fails_override: Final[int | None] = (
@@ -399,6 +406,34 @@ def _should_run_cooldown_logic(
     return True
 
 
+_FALLBACK_ENTRIES_ADAPTER: Final = TypeAdapter(tuple[Mapping[str, list[str | Mapping[str, object]]] | str, ...])
+
+
+def _fallback_target_name(target: str | Mapping[str, object]) -> str:
+    return target if isinstance(target, str) else str(target.get("model", ""))
+
+
+def _fallback_chain_names(
+    entry: Mapping[str, Sequence[str | Mapping[str, object]]],
+) -> Mapping[str, list[str]]:  # mutable-ok: mirrors get_fallback_model_group's fallbacks shape
+    return {key: [_fallback_target_name(target) for target in targets] for key, targets in entry.items()}
+
+
+def _has_fallback_group(litellm_router_instance: LitellmRouter, requested_model_group: str | None) -> bool:
+    from litellm.router_utils.fallback_event_handlers import get_fallback_model_group
+
+    configured: Final[object] = getattr(litellm_router_instance, "fallbacks", None)
+    if requested_model_group is None or not configured:
+        return False
+    chains: Final = tuple(
+        _fallback_chain_names(entry)
+        for entry in _FALLBACK_ENTRIES_ADAPTER.validate_python(configured)
+        if isinstance(entry, Mapping)
+    )
+    fallback_group, _ = get_fallback_model_group(fallbacks=chains, model_group=requested_model_group)
+    return bool(fallback_group)
+
+
 def _should_cooldown_deployment(
     litellm_router_instance: LitellmRouter,
     deployment: str,
@@ -431,6 +466,9 @@ def _should_cooldown_deployment(
             litellm_router_instance.routing_group_has_alternatives(requested_model_group)
             or litellm_router_instance.team_model_has_alternatives(deployment)
         )
+    is_lone_deployment: Final = is_single_deployment_model_group and not _has_fallback_group(
+        litellm_router_instance, requested_model_group
+    )
 
     exception_status_int: Final = cast_exception_status_to_int(exception_status)
     dep_policy, dep_allowed_fails = _get_deployment_cooldown_policy(litellm_router_instance, deployment)
@@ -450,7 +488,7 @@ def _should_cooldown_deployment(
             original_exception,
             dep_policy,
             dep_allowed_fails,
-            is_single_deployment_model_group,
+            is_lone_deployment,
         )
 
     ## BASE CASE - single deployment
@@ -495,6 +533,8 @@ def _should_cooldown_deployment(
 
         return False
     else:
+        if is_lone_deployment and litellm_router_instance.get_allowed_fails_from_policy(original_exception) is None:
+            return False
         return should_cooldown_based_on_allowed_fails_policy(
             litellm_router_instance=litellm_router_instance,
             deployment=deployment,
diff --git a/tests/integration/routing/test_payment_required_cooldown.py b/tests/integration/routing/test_payment_required_cooldown.py
index bc5cf1a5913..865edf31260 100644
--- a/tests/integration/routing/test_payment_required_cooldown.py
+++ b/tests/integration/routing/test_payment_required_cooldown.py
@@ -1,5 +1,6 @@
 from __future__ import annotations
 
+import itertools
 import json
 import re
 import uuid
@@ -390,6 +391,79 @@ def test_a_router_allowed_fails_policy_cools_a_lone_402_deployment_past_its_coun
         assert markers_received(refusing) == (first.marker, second.marker)
 
 
+def failing_reply(request: Request) -> Reply:
+    return model_list_reply() if is_model_info_probe(request) else anthropic_error(500, "upstream down")
+
+
+def assert_failed(outcome: Outcome) -> None:
+    assert outcome.status == 500, (outcome.status, outcome.detail)
+    assert "upstream down" in outcome.detail, outcome.detail
+
+
+@pytest.mark.timeout(900)
+def test_a_router_allowed_fails_count_leaves_a_lone_deployment_warm_but_benches_one_with_a_sibling_or_fallback(
+    tmp_path: Path,
+) -> None:
+    lone_group: Final = new_group()
+    pair_group: Final = new_group()
+    primary_group: Final = new_group()
+    backup_group: Final = new_group()
+    with ExitStack() as stack:
+        upstream: Final = stack.enter_context(gateway_from_environment())
+        cache: Final = stack.enter_context(owned_redis(tmp_path))
+        settings: Final = router_settings(cache, allowed_fails=1, fallbacks=[{primary_group: [backup_group]}])
+        owned: Final = stack.enter_context(
+            owned_proxy_process(
+                upstream,
+                tmp_path,
+                {},
+                config=cooldown_config(tmp_path, settings),
+                remove_environment=("PROMETHEUS_MULTIPROC_DIR",),
+            )
+        )
+        failing: Final = stack.enter_context(wire_server(failing_reply))
+        healthy: Final = stack.enter_context(wire_server(healthy_reply))
+        scenario: Final = stack.enter_context(owned.gateway.scenario())
+        lone_id: Final = deployment(scenario, lone_group, anthropic_params(failing))
+        failed: Final = tuple(raw_chat(owned.gateway, lone_group, new_marker()) for _ in range(4))
+        for outcome in failed:
+            assert_failed(outcome)
+        assert not cooled(cache, lone_id)
+        assert markers_received(failing) == markers(failed)
+
+        paired_id: Final = two_deployments(scenario, pair_group, failing, healthy)
+        history: Final = tuple(
+            itertools.takewhile(
+                lambda outcome: not cooled(cache, paired_id),
+                (raw_chat(owned.gateway, pair_group, new_marker()) for _ in range(40)),
+            )
+        )
+        assert cooled(cache, paired_id), [(outcome.status, outcome.detail[:80]) for outcome in history]
+        assert sum(outcome.status == 500 for outcome in history) == 1
+        served: Final = tuple(raw_chat(owned.gateway, pair_group, new_marker()) for _ in range(10))
+        assert_served(served, chat_identity)
+        assert markers_received(healthy) == (*markers(o for o in history if o.status == 200), *markers(served))
+
+        primary_id: Final = deployment(scenario, primary_group, anthropic_params(failing))
+        deployment(scenario, backup_group, openai_params(healthy))
+        failing.drain()
+        healthy.drain()
+        fell_back: Final = tuple(
+            itertools.takewhile(
+                lambda outcome: not cooled(cache, primary_id),
+                (raw_chat(owned.gateway, primary_group, new_marker()) for _ in range(40)),
+            )
+        )
+        assert cooled(cache, primary_id) and fell_back, [(o.status, o.detail[:80]) for o in fell_back]
+        assert_served(fell_back, chat_identity)
+        backed: Final = tuple(raw_chat(owned.gateway, primary_group, new_marker()) for _ in range(4))
+        assert_served(backed, chat_identity)
+        received: Final = markers_received(failing)
+        assert received[: len(fell_back)] == markers(fell_back)
+        assert len(received) <= len(fell_back) + 1, received
+        assert {*markers(fell_back), *markers(backed)} <= set(markers_received(healthy))
+
+
 def test_a_deployment_allowed_fails_policy_cools_a_lone_402_deployment(rig: CooldownRig) -> None:
     group: Final = new_group()
     policy: Final = {"allowed_fails_policy": {"BadRequestErrorAllowedFails": 0}}
diff --git a/tests/unit/router_utils/test_cooldown_handlers.py b/tests/unit/router_utils/test_cooldown_handlers.py
index 0c9d7ab9f85..bab6d257579 100644
--- a/tests/unit/router_utils/test_cooldown_handlers.py
+++ b/tests/unit/router_utils/test_cooldown_handlers.py
@@ -2931,10 +2931,65 @@ async def test_bad_request_error_does_not_cool_down_a_deployment(
     assert tuple(cooldown_deployments) == ()
 
 
-@pytest.mark.parametrize("use_policy", [False, True], ids=["allowed_fails", "allowed_fails_policy"])
+TIMED_OUT_DEPLOYMENT: Final = {
+    "model_name": "test-model",
+    "litellm_params": {"model": "openai/test-model", "api_key": "test-key"},
+    "model_info": {"id": "test-deployment"},
+}
+BACKUP_DEPLOYMENT: Final = {
+    "model_name": "backup-model",
+    "litellm_params": {"model": "openai/backup-model", "api_key": "test-key", "api_base": "https://backup.test/v1"},
+    "model_info": {"id": "backup-deployment"},
+}
+BACKUP_REPLY: Final = {
+    "id": "chatcmpl-backup",
+    "object": "chat.completion",
+    "created": 1700000000,
+    "model": "backup-model",
+    "choices": [{"index": 0, "message": {"role": "assistant", "content": "ok"}, "finish_reason": "stop"}],
+    "usage": {"prompt_tokens": 1, "completion_tokens": 1, "total_tokens": 2},
+}
+
+
+async def _lone_call_outcome(router: Router) -> type[Exception]:
+    try:
+        await router.acompletion(model="test-model", messages=[{"role": "user", "content": "timeout test"}])
+    except (litellm.Timeout, RouterRateLimitError) as error:
+        return type(error)
+    pytest.fail("the timed-out deployment answered")
+
+
+BENCHED: Final = (litellm.Timeout, litellm.Timeout, RouterRateLimitError, RouterRateLimitError, RouterRateLimitError)
+
+
+@pytest.mark.parametrize(
+    ("router_kwargs", "model_info", "outcomes"),
+    [
+        ({"allowed_fails": 1}, {}, (litellm.Timeout,) * 5),
+        ({"allowed_fails": 1}, {"allowed_fails_policy": {}}, (litellm.Timeout,) * 5),
+        ({"allowed_fails_policy": AllowedFailsPolicy(RateLimitErrorAllowedFails=1)}, {}, (litellm.Timeout,) * 5),
+        ({"allowed_fails_policy": AllowedFailsPolicy(TimeoutErrorAllowedFails=1)}, {}, BENCHED),
+        ({"allowed_fails": 1, "fallbacks": [{"test-model": ["backup-model"]}]}, {}, BENCHED),
+        (
+            {"allowed_fails": 1, "fallbacks": [{"test-model": [{"model": "backup-model", "temperature": 0}]}]},
+            {},
+            BENCHED,
+        ),
+    ],
+    ids=[
+        "allowed_fails",
+        "allowed_fails_with_an_empty_deployment_policy",
+        "policy_names_another_exception",
+        "policy_names_timeout",
+        "allowed_fails_with_a_fallback_group",
+        "allowed_fails_with_a_dict_fallback_target",
+    ],
+)
 @pytest.mark.asyncio
-async def test_allowed_fails_cools_a_single_deployment(
-    use_policy: bool,
+async def test_router_allowed_fails_benches_a_lone_deployment_only_when_the_policy_names_the_exception(
+    router_kwargs: Mapping[str, object],
+    model_info: Mapping[str, object],
+    outcomes: tuple[type[Exception], ...],
     respx_mock: respx.MockRouter,
     monkeypatch: pytest.MonkeyPatch,
 ) -> None:
@@ -2942,38 +2997,52 @@ async def test_allowed_fails_cools_a_single_deployment(
     route: Final = respx_mock.post("https://api.openai.com/v1/chat/completions").mock(
         side_effect=httpx.ReadTimeout("upstream timeout")
     )
-    policy_kwargs: Final = (
-        {"allowed_fails_policy": AllowedFailsPolicy(TimeoutErrorAllowedFails=1)}
-        if use_policy
-        else {"allowed_fails": 1}
+    deployment: Final = {**TIMED_OUT_DEPLOYMENT, "model_info": {**TIMED_OUT_DEPLOYMENT["model_info"], **model_info}}
+    router: Final = Router(model_list=[deployment], cooldown_time=300, num_retries=0, **router_kwargs)
+
+    seen: Final = tuple([await _lone_call_outcome(router) for _ in range(5)])
+
+    assert seen == outcomes
+    assert len(route.calls) == outcomes.count(litellm.Timeout)
+
+
+async def _group_call_outcome(router: Router) -> str:
+    try:
+        response: Final = await router.acompletion(
+            model="test-model", messages=[{"role": "user", "content": "timeout test"}]
+        )
+    except litellm.Timeout:
+        return "timeout"
+    return response.id
+
+
+@pytest.mark.asyncio
+async def test_router_allowed_fails_still_benches_a_deployment_that_has_a_sibling_in_its_group(
+    respx_mock: respx.MockRouter,
+    monkeypatch: pytest.MonkeyPatch,
+) -> None:
+    monkeypatch.setattr(litellm, "disable_aiohttp_transport", True)
+    timed_out: Final = respx_mock.post("https://api.openai.com/v1/chat/completions").mock(
+        side_effect=httpx.ReadTimeout("upstream timeout")
     )
+    respx_mock.post("https://backup.test/v1/chat/completions").mock(return_value=httpx.Response(200, json=BACKUP_REPLY))
     router: Final = Router(
-        model_list=[
-            {
-                "model_name": "test-model",
-                "litellm_params": {"model": "openai/test-model", "api_key": "test-key"},
-                "model_info": {"id": "test-deployment"},
-            }
-        ],
+        model_list=[TIMED_OUT_DEPLOYMENT, {**BACKUP_DEPLOYMENT, "model_name": "test-model"}],
         cooldown_time=300,
         num_retries=0,
-        **policy_kwargs,
+        allowed_fails=1,
     )
 
-    for _ in range(2):
-        with pytest.raises(litellm.Timeout):
-            await router.acompletion(
-                model="test-model",
-                messages=[{"role": "user", "content": "timeout test"}],
-            )
-
+    while len(timed_out.calls) < 2:
+        await _group_call_outcome(router)
     cooldown_deployments: Final = await async_get_cooldown_deployments(
-        litellm_router_instance=router,
-        parent_otel_span=None,
+        litellm_router_instance=router, parent_otel_span=None
     )
+    served: Final = tuple([await _group_call_outcome(router) for _ in range(5)])
 
-    assert len(route.calls) == 2
     assert tuple(cooldown_deployments) == ("test-deployment",)
+    assert served == ("chatcmpl-backup",) * 5
+    assert len(timed_out.calls) == 2
 
 
 def test_per_user_session_upstream_errors_never_cool_down_the_shared_deployment(single_deployment_router):
diff --git a/tests/unit/router_utils/test_fallback_event_handlers.py b/tests/unit/router_utils/test_fallback_event_handlers.py
index 53375ee0ab4..c5a476c450b 100644
--- a/tests/unit/router_utils/test_fallback_event_handlers.py
+++ b/tests/unit/router_utils/test_fallback_event_handlers.py
@@ -1255,7 +1255,12 @@ class TestTriggerCooldownForFailedDeployment:
                     "model_name": "fallback-model",
                     "litellm_params": {"model": "openai/gpt-5.6", "api_key": "sk-fake"},
                     "model_info": {"id": "fallback-deployment"},
-                }
+                },
+                {
+                    "model_name": "fallback-model",
+                    "litellm_params": {"model": "openai/gpt-5.6", "api_key": "sk-fake"},
+                    "model_info": {"id": "fallback-sibling"},
+                },
             ],
             allowed_fails=0,
             cooldown_time=60,
@@ -1345,7 +1350,12 @@ async def test_a_fallback_deployment_whose_stream_stalled_stays_out_of_cooldown(
                 "model_name": "fallback-model",
                 "litellm_params": {"model": "openai/gpt-5.6", "api_key": "sk-fake"},
                 "model_info": {"id": "fallback-deployment"},
-            }
+            },
+            {
+                "model_name": "fallback-model",
+                "litellm_params": {"model": "openai/gpt-5.6", "api_key": "sk-fake"},
+                "model_info": {"id": "fallback-sibling"},
+            },
         ],
         allowed_fails=0,
         cooldown_time=60,
diff --git a/tests/unit/test_router/test_router.py b/tests/unit/test_router/test_router.py
index e2ee80b7874..d9b655a0aff 100644
--- a/tests/unit/test_router/test_router.py
+++ b/tests/unit/test_router/test_router.py
@@ -12212,7 +12212,12 @@ class TestBackgroundResponseCostPollCooldown:
                     "model_name": "gpt-4.1",
                     "litellm_params": {"model": "openai/gpt-4.1"},
                     "model_info": {"id": "dep-1"},
-                }
+                },
+                {
+                    "model_name": "gpt-4.1",
+                    "litellm_params": {"model": "openai/gpt-4.1"},
+                    "model_info": {"id": "dep-2"},
+                },
             ],
             allowed_fails=0,
         )
@@ -12340,7 +12345,12 @@ class TestCallerTimeoutCooldown:
                     "model_name": "slow-model",
                     "litellm_params": {"model": "openai/gpt-5.6", "api_key": "sk-fake"},
                     "model_info": {"id": "dep-1"},
-                }
+                },
+                {
+                    "model_name": "slow-model",
+                    "litellm_params": {"model": "openai/gpt-5.6", "api_key": "sk-fake"},
+                    "model_info": {"id": "dep-2"},
+                },
             ],
             allowed_fails=0,
             cooldown_time=120,