diff --git a/litellm/proxy/hooks/parallel_request_limiter.py b/litellm/proxy/hooks/parallel_request_limiter.py
index a6dde585309..4ad2062a4e2 100644
--- a/litellm/proxy/hooks/parallel_request_limiter.py
+++ b/litellm/proxy/hooks/parallel_request_limiter.py
@@ -699,6 +699,8 @@ class _PROXY_MaxParallelRequestsHandler(CustomLogger):
             self.print_verbose(e)
 
     async def async_log_failure_event(self, kwargs, response_obj, start_time, end_time):
+        if is_batch_line_item_event(kwargs):
+            return
         try:
             self.print_verbose("Inside Max Parallel Request Failure Hook")
             litellm_parent_otel_span: Final[Span | None] = _get_parent_otel_span_from_kwargs(kwargs=kwargs)
diff --git a/litellm/proxy/hooks/parallel_request_limiter_v3.py b/litellm/proxy/hooks/parallel_request_limiter_v3.py
index d5b31624064..981c0b81a07 100644
--- a/litellm/proxy/hooks/parallel_request_limiter_v3.py
+++ b/litellm/proxy/hooks/parallel_request_limiter_v3.py
@@ -4681,6 +4681,8 @@ class _PROXY_MaxParallelRequestsHandler_v3(CustomLogger):
         whose partial usage was recovered settles the reservation at that
         usage instead of refunding it.
         """
+        if is_batch_line_item_event(kwargs):
+            return
         from litellm.litellm_core_utils.core_helpers import (
             _get_parent_otel_span_from_kwargs,
         )
diff --git a/tests/test_litellm/proxy/hooks/test_parallel_request_limiter.py b/tests/test_litellm/proxy/hooks/test_parallel_request_limiter.py
index 0e2683dcbfd..cbc16d734a1 100644
--- a/tests/test_litellm/proxy/hooks/test_parallel_request_limiter.py
+++ b/tests/test_litellm/proxy/hooks/test_parallel_request_limiter.py
@@ -84,3 +84,29 @@ async def test_async_log_success_event_counts_non_chat_response_tokens(response_
             f"expected 50 tokens counted for {scope_id}, "
             f"got {current['current_tpm']}"
         )
+
+
+@pytest.mark.asyncio
+async def test_async_log_failure_event_skips_batch_line_item_events():
+    """Failed line children were never admitted by the limiter, so the failure
+    hook must not decrement request counters they never incremented."""
+    parallel_request_handler = _PROXY_MaxParallelRequestsHandler(
+        internal_usage_cache=InternalUsageCache(DualCache())
+    )
+    local_cache = parallel_request_handler.internal_usage_cache.dual_cache.in_memory_cache
+
+    await parallel_request_handler.async_log_failure_event(
+        kwargs={
+            "exception": "litellm.APIError: upstream 500",
+            "litellm_params": {
+                "batch_parent_id": "batch_1",
+                "metadata": {"user_api_key": hash_token("sk-line-item")},
+            },
+            "model": "gpt-3.5-turbo",
+        },
+        response_obj=None,
+        start_time=datetime.now(),
+        end_time=datetime.now(),
+    )
+
+    assert local_cache.cache_dict == {}
diff --git a/tests/test_litellm/proxy/hooks/test_parallel_request_limiter_v3.py b/tests/test_litellm/proxy/hooks/test_parallel_request_limiter_v3.py
index 904b5d67556..ea8d5016463 100644
--- a/tests/test_litellm/proxy/hooks/test_parallel_request_limiter_v3.py
+++ b/tests/test_litellm/proxy/hooks/test_parallel_request_limiter_v3.py
@@ -7177,3 +7177,32 @@ async def test_async_log_success_event_skips_batch_line_item_events():
     )
 
     assert local_cache.in_memory_cache.cache_dict == {}
+
+
+@pytest.mark.asyncio
+async def test_async_log_failure_event_skips_batch_line_item_events():
+    """Failed line children were never admitted by the limiter, so the failure
+    hook must not release slots or refund TPM they never reserved."""
+    local_cache = DualCache()
+    handler = _PROXY_MaxParallelRequestsHandler(internal_usage_cache=InternalUsageCache(local_cache))
+    stash = get_or_create_request_stash()
+    stash.owner_litellm_call_id = "call-line-item"
+    stash.reserved_tokens = 50
+    stash.reserved_scopes = frozenset({("api_key", hash_token("sk-line-item"))})
+
+    await handler.async_log_failure_event(
+        kwargs={
+            "litellm_call_id": "call-line-item",
+            "standard_logging_object": {"metadata": {"user_api_key_hash": hash_token("sk-line-item")}},
+            "litellm_params": {
+                "batch_parent_id": "batch_1",
+                "metadata": {"user_api_key_hash": hash_token("sk-line-item"), "model_group": "gpt-3.5-turbo"},
+            },
+            "model": "gpt-3.5-turbo",
+        },
+        response_obj=None,
+        start_time=datetime.now(),
+        end_time=datetime.now(),
+    )
+
+    assert local_cache.in_memory_cache.cache_dict == {}