diff --git a/litellm/llms/azure/azure.py b/litellm/llms/azure/azure.py
index 980b27cda55..d571244322f 100644
--- a/litellm/llms/azure/azure.py
+++ b/litellm/llms/azure/azure.py
@@ -477,7 +477,7 @@ class AzureChatCompletion(BaseAzureLLM, BaseLLM):
                 additional_args={"complete_input_dict": data},
                 original_response=str(e),
             )
-            raise AzureOpenAIError(status_code=500, message=str(e))
+            raise
         except Exception as e:
             message: Final = getattr(e, "message", str(e))
             body: Final = getattr(e, "body", None)
diff --git a/tests/test_litellm/llms/azure/test_azure.py b/tests/test_litellm/llms/azure/test_azure.py
new file mode 100644
index 00000000000..dec4a1dd975
--- /dev/null
+++ b/tests/test_litellm/llms/azure/test_azure.py
@@ -0,0 +1,31 @@
+import asyncio
+import os
+import sys
+
+import pytest
+from openai import AsyncAzureOpenAI
+
+sys.path.insert(0, os.path.abspath("../../../.."))
+
+import litellm
+
+
+@pytest.mark.asyncio
+async def test_acompletion_propagates_cancelled_error():
+    client = AsyncAzureOpenAI(
+        api_key="fake-key",
+        api_version="2024-02-01",
+        azure_endpoint="https://fake-resource.openai.azure.com",
+    )
+
+    async def cancelled_create(**kwargs):
+        raise asyncio.CancelledError()
+
+    client.chat.completions.with_raw_response.create = cancelled_create
+
+    with pytest.raises(asyncio.CancelledError):
+        await litellm.acompletion(
+            model="azure/fake-deployment",
+            messages=[{"role": "user", "content": "hi"}],
+            client=client,
+        )