diff --git a/ui/litellm-dashboard/src/components/templates/key_edit_view.tsx b/ui/litellm-dashboard/src/components/templates/key_edit_view.tsx
index 871a0f9ae84..46f42574169 100644
--- a/ui/litellm-dashboard/src/components/templates/key_edit_view.tsx
+++ b/ui/litellm-dashboard/src/components/templates/key_edit_view.tsx
@@ -308,8 +308,12 @@ export function KeyEditView({
         values.budget_limits = [];
       }
 
+      const hadExistingFallbacks =
+        keyData.budget_fallbacks != null && Object.keys(keyData.budget_fallbacks).length > 0;
       if (Object.keys(budgetFallbacks).length > 0) {
         values.budget_fallbacks = budgetFallbacks;
+      } else if (hadExistingFallbacks) {
+        values.budget_fallbacks = {};
       }
 
       await onSubmit(values);