diff --git a/litellm/repositories/usage_alerts.py b/litellm/repositories/usage_alerts.py
index 3237ca3a06c..6f38af2a862 100644
--- a/litellm/repositories/usage_alerts.py
+++ b/litellm/repositories/usage_alerts.py
@@ -447,12 +447,18 @@ class UsageAlertsRepository:
                     SELECT DISTINCT scope_type,scope_id,key_id FROM jsonb_to_recordset($1::jsonb)
                     AS x(scope_type text,scope_id text,key_id text)
                 ) SELECT s.scope_type,s.scope_id,LEFT(CASE s.scope_type
-                    WHEN 'key' THEN COALESCE(NULLIF(k.key_alias,''),NULLIF(k.key_name,''))
+                    WHEN 'key' THEN COALESCE(NULLIF(k.key_alias,''),NULLIF(k.key_name,''),
+                        NULLIF(d.key_alias,''),NULLIF(d.key_name,''))
                     WHEN 'team' THEN NULLIF(t.team_alias,'')
                     WHEN 'user' THEN COALESCE(NULLIF(u.user_alias,''),NULLIF(u.user_email,''))
                     WHEN 'model' THEN s.scope_id WHEN 'provider' THEN s.scope_id
                     WHEN 'deployment' THEN 'Gateway' END,256) AS label
                 FROM scopes s LEFT JOIN "LiteLLM_VerificationToken" k ON s.scope_type='key' AND k.token=s.key_id
+                    LEFT JOIN LATERAL (
+                        SELECT key_alias,key_name FROM "LiteLLM_DeletedVerificationToken"
+                        WHERE s.scope_type='key' AND token=s.key_id AND k.token IS NULL
+                        ORDER BY deleted_at DESC,id DESC LIMIT 1
+                    ) d ON true
                     LEFT JOIN "LiteLLM_TeamTable" t ON s.scope_type='team' AND t.team_id=s.scope_id
                     LEFT JOIN "LiteLLM_UserTable" u ON s.scope_type='user' AND u.user_id=s.scope_id""",
                 json.dumps(
diff --git a/tests/integration/database/test_usage_alerts.py b/tests/integration/database/test_usage_alerts.py
index 5339e451e51..29dc17b859e 100644
--- a/tests/integration/database/test_usage_alerts.py
+++ b/tests/integration/database/test_usage_alerts.py
@@ -39,6 +39,30 @@ async def test_alert_resource_labels_bound_legacy_display_values(db: ManagementD
         await repository.database.query_raw('DELETE FROM "LiteLLM_UserTable" WHERE user_id=$1', identity)
 
 
+@pytest.mark.asyncio(loop_scope="session")
+async def test_deleted_key_labels_use_the_latest_alias_and_prefer_live_keys(db: ManagementDatabase) -> None:
+    repository: Final = UsageAlertsRepository.from_prisma(db.prisma)
+    identity: Final = sha256(uuid4().bytes).hexdigest()
+    scope: Final = UsageAlertRuleInput(
+        name="Deleted key", scope_type="key", scope_id=identity, metric="spend", direction="increase"
+    )
+    try:
+        await repository.database.query_raw(
+            """INSERT INTO "LiteLLM_DeletedVerificationToken" (id,token,key_alias,deleted_at)
+            VALUES ($1||'-old',$1,'Old alias',TIMESTAMP '2000-01-01'),
+                   ($1||'-new',$1,repeat('x',512),TIMESTAMP '2000-01-02')""",
+            identity,
+        )
+        assert await repository.resource_labels((scope,)) == {("key", identity): "x" * 256}
+        await repository.database.query_raw(
+            'INSERT INTO "LiteLLM_VerificationToken" (token,key_alias) VALUES ($1,$2)', identity, "Live alias"
+        )
+        assert await repository.resource_labels((scope,)) == {("key", identity): "Live alias"}
+    finally:
+        await repository.database.query_raw('DELETE FROM "LiteLLM_VerificationToken" WHERE token=$1', identity)
+        await repository.database.query_raw('DELETE FROM "LiteLLM_DeletedVerificationToken" WHERE token=$1', identity)
+
+
 @pytest.mark.parametrize("grant", ["management_routes", "/usage", "/usage/alert-rules"])
 def test_scoped_rules_use_real_management_auth_and_preserve_read_only_roles(gateway: Gateway, grant: str) -> None:
     with gateway.scenario() as scenario: