diff --git a/litellm/router.py b/litellm/router.py
index 4929b17f7fc..63d5f86d46a 100644
--- a/litellm/router.py
+++ b/litellm/router.py
@@ -1561,7 +1561,9 @@ class Router:
         public_model_name: Final = deployment.model_info.team_public_model_name
         if team_id is None or public_model_name is None:
             return False
-        return len(self.team_model_to_deployment_indices.get((team_id, public_model_name)) or ()) > 1
+        sibling_indices: Final = self.team_model_to_deployment_indices.get((team_id, public_model_name)) or ()
+        routable_siblings: Final = self._filter_blocked_deployments([self.model_list[idx] for idx in sibling_indices])
+        return len(routable_siblings) > 1
 
     _OVERRIDABLE_ROUTING_STRATEGIES: frozenset[str] = frozenset({"simple-shuffle", *_DEFAULT_SELECTOR_ATTR_BY_STRATEGY})
 
diff --git a/tests/test_litellm/router_utils/test_cooldown_handlers.py b/tests/test_litellm/router_utils/test_cooldown_handlers.py
index 6f66bb863cc..fdbfd618dab 100644
--- a/tests/test_litellm/router_utils/test_cooldown_handlers.py
+++ b/tests/test_litellm/router_utils/test_cooldown_handlers.py
@@ -440,7 +440,7 @@ class TestRoutingGroupCooldownAlternatives:
 
 
 class TestTeamModelCooldownAlternatives:
-    def _router(self, team_deployments: int):
+    def _router(self, team_deployments: int, blocked_ids: frozenset[str] = frozenset()):
         from litellm import Router
 
         return Router(
@@ -452,6 +452,7 @@ class TestTeamModelCooldownAlternatives:
                         "id": f"team-deploy-{i}",
                         "team_id": "team-1",
                         "team_public_model_name": "team-gpt-4o-mini",
+                        "blocked": f"team-deploy-{i}" in blocked_ids,
                     },
                 }
                 for i in range(team_deployments)
@@ -487,3 +488,18 @@ class TestTeamModelCooldownAlternatives:
             )
             is False
         )
+
+    def test_429_with_only_a_blocked_sibling_keeps_single_deployment_exemption(self):
+        from litellm.router_utils.cooldown_handlers import _should_cooldown_deployment
+
+        router = self._router(team_deployments=2, blocked_ids=frozenset({"team-deploy-1"}))
+        assert (
+            _should_cooldown_deployment(
+                litellm_router_instance=router,
+                deployment="team-deploy-0",
+                exception_status=429,
+                original_exception=Exception("rate limited"),
+                requested_model_group="team-gpt-4o-mini",
+            )
+            is False
+        )
diff --git a/tests/test_litellm/test_router.py b/tests/test_litellm/test_router.py
index 7af60e01f7f..7786bfb4788 100644
--- a/tests/test_litellm/test_router.py
+++ b/tests/test_litellm/test_router.py
@@ -897,7 +897,7 @@ def test_arouter_test_team_model():
 
 
 def test_team_model_has_alternatives():
-    def team_deployment(deployment_id: str, team_id: str, public_model_name: str):
+    def team_deployment(deployment_id: str, team_id: str, public_model_name: str, blocked: bool = False):
         return {
             "model_name": f"model_name_{team_id}_{deployment_id}",
             "litellm_params": {"model": "openai/gpt-4o-mini", "api_key": "sk-test"},
@@ -905,6 +905,7 @@ def test_team_model_has_alternatives():
                 "id": deployment_id,
                 "team_id": team_id,
                 "team_public_model_name": public_model_name,
+                "blocked": blocked,
             },
         }
 
@@ -914,6 +915,8 @@ def test_team_model_has_alternatives():
             team_deployment("team-a-2", "team-a", "shared-model"),
             team_deployment("team-a-solo", "team-a", "solo-model"),
             team_deployment("team-b-1", "team-b", "shared-model"),
+            team_deployment("team-c-1", "team-c", "paused-sibling-model"),
+            team_deployment("team-c-paused", "team-c", "paused-sibling-model", blocked=True),
             {
                 "model_name": "plain-model",
                 "litellm_params": {"model": "openai/gpt-4o-mini", "api_key": "sk-test"},
@@ -926,6 +929,7 @@ def test_team_model_has_alternatives():
     assert router.team_model_has_alternatives("team-a-2") is True
     assert router.team_model_has_alternatives("team-a-solo") is False
     assert router.team_model_has_alternatives("team-b-1") is False
+    assert router.team_model_has_alternatives("team-c-1") is False
     assert router.team_model_has_alternatives("plain-1") is False
     assert router.team_model_has_alternatives("missing-deployment") is False