diff --git a/litellm/litellm_core_utils/fallback_utils.py b/litellm/litellm_core_utils/fallback_utils.py
index cc36f47b516..70d5c3e6dae 100644
--- a/litellm/litellm_core_utils/fallback_utils.py
+++ b/litellm/litellm_core_utils/fallback_utils.py
@@ -34,7 +34,20 @@ async def async_completion_with_fallbacks(**kwargs):
     nested_kwargs: Final = kwargs.pop("kwargs", {})
     original_model: Final = kwargs["model"]
     model = original_model
-    fallbacks: Final = [original_model] + nested_kwargs.pop("fallbacks", [])
+    top_level_fallbacks = kwargs.pop("fallbacks", [])
+    nested_fallbacks = nested_kwargs.pop("fallbacks", [])
+    combined_fallbacks = []
+    if isinstance(top_level_fallbacks, list):
+        combined_fallbacks.extend(top_level_fallbacks)
+    elif top_level_fallbacks:
+        combined_fallbacks.append(top_level_fallbacks)
+
+    if isinstance(nested_fallbacks, list):
+        combined_fallbacks.extend(nested_fallbacks)
+    elif nested_fallbacks:
+        combined_fallbacks.append(nested_fallbacks)
+
+    fallbacks: Final = [original_model] + combined_fallbacks
     kwargs.pop("acompletion", None)  # Remove to prevent keyword conflicts
     litellm_call_id: Final = str(uuid.uuid4())
     base_kwargs: Final = {**kwargs, **nested_kwargs, "litellm_call_id": litellm_call_id}
diff --git a/tests/unit/litellm_core_utils/test_fallback_utils.py b/tests/unit/litellm_core_utils/test_fallback_utils.py
index 90a61696e9d..1db4b222d9d 100644
--- a/tests/unit/litellm_core_utils/test_fallback_utils.py
+++ b/tests/unit/litellm_core_utils/test_fallback_utils.py
@@ -167,3 +167,45 @@ def test_process_response_headers_ignores_preserve_flag_for_httpx_headers():
     result = process_response_headers(raw, preserve_litellm_internal_headers=True)
     assert "x-litellm-attempted-fallbacks" not in result
     assert result["llm_provider-x-litellm-attempted-fallbacks"] == "1"
+
+
+@pytest.mark.asyncio
+async def test_async_completion_with_top_level_fallbacks(monkeypatch):
+    attempted_models: list[str] = []
+
+    async def _fake_acompletion(*, model: str, **kwargs):
+        attempted_models.append(model)
+        if model == "primary-model":
+            raise Exception("primary failed")
+        return {"model": model}
+
+    monkeypatch.setattr(litellm, "acompletion", _fake_acompletion)
+
+    response = await async_completion_with_fallbacks(
+        model="primary-model",
+        fallbacks=["fallback-model-1", "fallback-model-2"],
+    )
+    assert response["model"] == "fallback-model-1"
+    assert attempted_models == ["primary-model", "fallback-model-1"]
+
+
+@pytest.mark.asyncio
+async def test_async_completion_with_combined_top_level_and_nested_fallbacks(monkeypatch):
+    attempted_models: list[str] = []
+
+    async def _fake_acompletion(*, model: str, **kwargs):
+        attempted_models.append(model)
+        if model in ["primary-model", "top-fallback"]:
+            raise Exception(f"{model} failed")
+        return {"model": model}
+
+    monkeypatch.setattr(litellm, "acompletion", _fake_acompletion)
+
+    response = await async_completion_with_fallbacks(
+        model="primary-model",
+        fallbacks=["top-fallback"],
+        kwargs={"fallbacks": ["nested-fallback"]},
+    )
+    assert response["model"] == "nested-fallback"
+    assert attempted_models == ["primary-model", "top-fallback", "nested-fallback"]
+