diff --git a/litellm/proxy/auth/model_checks.py b/litellm/proxy/auth/model_checks.py
index bf76f99db69..11903094ece 100644
--- a/litellm/proxy/auth/model_checks.py
+++ b/litellm/proxy/auth/model_checks.py
@@ -42,20 +42,63 @@ def get_provider_models(
     return None
 
 
+def _resolve_nested_groups(
+    group_name: str,
+    model_access_groups: Dict[str, List[str]],
+    group_memberships: Dict[str, List[str]],
+    visited: Set[str],
+) -> List[str]:
+    """
+    Expand a group name to the full list of model names it transitively includes,
+    following parent -> child edges in `group_memberships`.
+
+    Runs on the auth path, so cyclic edges are logged and skipped rather than raised:
+    a malformed row must not 500 the proxy.
+    """
+    if group_name in visited:
+        verbose_proxy_logger.warning(
+            "access group cycle detected at '%s' - skipping cyclic edge",
+            group_name,
+        )
+        return []
+    visited.add(group_name)
+
+    resolved: List[str] = list(model_access_groups.get(group_name, []))
+    for child in group_memberships.get(group_name, []):
+        resolved.extend(
+            _resolve_nested_groups(
+                group_name=child,
+                model_access_groups=model_access_groups,
+                group_memberships=group_memberships,
+                visited=visited,
+            )
+        )
+    return resolved
+
+
 def _get_models_from_access_groups(
     model_access_groups: Dict[str, List[str]],
     all_models: List[str],
     include_model_access_groups: Optional[bool] = False,
+    group_memberships: Optional[Dict[str, List[str]]] = None,
 ) -> List[str]:
+    memberships = group_memberships or {}
     idx_to_remove = []
     new_models = []
     for idx, model in enumerate(all_models):
-        if model in model_access_groups:
+        if model in model_access_groups or model in memberships:
             if (
                 not include_model_access_groups
             ):  # remove access group, unless requested - e.g. when creating a key
                 idx_to_remove.append(idx)
-            new_models.extend(model_access_groups[model])
+            new_models.extend(
+                _resolve_nested_groups(
+                    group_name=model,
+                    model_access_groups=model_access_groups,
+                    group_memberships=memberships,
+                    visited=set(),
+                )
+            )
 
     for idx in sorted(idx_to_remove, reverse=True):
         all_models.pop(idx)
@@ -96,6 +139,7 @@ def get_key_models(
     model_access_groups: Dict[str, List[str]],
     include_model_access_groups: Optional[bool] = False,
     only_model_access_groups: Optional[bool] = False,
+    group_memberships: Optional[Dict[str, List[str]]] = None,
 ) -> List[str]:
     """
     Returns:
@@ -104,6 +148,8 @@ def get_key_models(
     - If model_access_groups is provided, only return models that are in the access groups
     - If include_model_access_groups is True, it includes the 'keys' of the model_access_groups
       in the response - {"beta-models": ["gpt-4", "claude-v1"]} -> returns 'beta-models'
+    - If group_memberships is provided, expands nested groups transitively
+      (parent -> child edges); cyclic edges are skipped
     """
     all_models: List[str] = []
     if len(user_api_key_dict.models) > 0:
@@ -123,6 +169,7 @@ def get_key_models(
         model_access_groups=model_access_groups,
         all_models=all_models,
         include_model_access_groups=include_model_access_groups,
+        group_memberships=group_memberships,
     )
 
     # deduplicate while preserving order
@@ -137,12 +184,14 @@ def get_team_models(
     proxy_model_list: List[str],
     model_access_groups: Dict[str, List[str]],
     include_model_access_groups: Optional[bool] = False,
+    group_memberships: Optional[Dict[str, List[str]]] = None,
 ) -> List[str]:
     """
     Returns:
     - List of model name strings
     - Empty list if no models set
     - If model_access_groups is provided, only return models that are in the access groups
+    - If group_memberships is provided, expands nested groups transitively
     """
     all_models_set: Set[str] = set()
     if len(team_models) > 0:
@@ -158,6 +207,7 @@ def get_team_models(
         model_access_groups=model_access_groups,
         all_models=list(all_models_set),
         include_model_access_groups=include_model_access_groups,
+        group_memberships=group_memberships,
     )
 
     # deduplicate while preserving order