diff --git a/litellm/proxy/batches_endpoints/endpoints.py b/litellm/proxy/batches_endpoints/endpoints.py
index 58c8e2d4d0c..cdee69f2b30 100644
--- a/litellm/proxy/batches_endpoints/endpoints.py
+++ b/litellm/proxy/batches_endpoints/endpoints.py
@@ -257,7 +257,7 @@ async def create_batch(  # noqa: PLR0915
                             file_id=response.output_file_id, model=model_param
                         )
 
-                if hasattr(response, "error_file_id") and response.error_file_id:
+                    if hasattr(response, "error_file_id") and response.error_file_id:
                         response.error_file_id = encode_file_id_with_model(
                             file_id=response.error_file_id, model=model_param
                         )
diff --git a/tests/litellm/proxy/test_batch_x_litellm_model_encoding.py b/tests/litellm/proxy/test_batch_x_litellm_model_encoding.py
index 5150b57568b..521a3632dcb 100644
--- a/tests/litellm/proxy/test_batch_x_litellm_model_encoding.py
+++ b/tests/litellm/proxy/test_batch_x_litellm_model_encoding.py
@@ -5,6 +5,7 @@ Verifies that create_batch encodes response IDs with model info so that
 retrieve_batch can route back to the correct provider/credentials.
 """
 
+from typing import Optional
 from unittest.mock import AsyncMock, MagicMock, patch
 
 import pytest