diff --git a/litellm/passthrough/main.py b/litellm/passthrough/main.py
index df4737cec85..8b54f42e7c1 100644
--- a/litellm/passthrough/main.py
+++ b/litellm/passthrough/main.py
@@ -289,7 +289,7 @@ def llm_passthrough_route(
     request = client.client.build_request(
         method=method,
         url=updated_url,
-        content=signed_json_body,
+        content=signed_json_body if signed_json_body is not None else content,
         data=data if signed_json_body is None else None,
         files=files,
         json=json if signed_json_body is None else None,
@@ -412,6 +412,7 @@ async def _async_streaming(
 ):
     try:
         iter_response = await response
+        iter_response.raise_for_status()
         raw_bytes: List[bytes] = []
 
         async for chunk in iter_response.aiter_bytes():  # type: ignore
diff --git a/tests/test_litellm/passthrough/__init__.py b/tests/test_litellm/passthrough/__init__.py
new file mode 100644
index 00000000000..e69de29bb2d
diff --git a/tests/test_litellm/passthrough/test_async_streaming_error_propagation.py b/tests/test_litellm/passthrough/test_async_streaming_error_propagation.py
new file mode 100644
index 00000000000..8148edb633f
--- /dev/null
+++ b/tests/test_litellm/passthrough/test_async_streaming_error_propagation.py
@@ -0,0 +1,122 @@
+"""
+Tests for error propagation in _async_streaming passthrough routes.
+
+Verifies that HTTP 4xx/5xx errors from upstream (e.g. Azure 429 rate limits)
+raise exceptions instead of being silently forwarded as raw bytes under HTTP 200.
+
+See: litellm/passthrough/main.py _async_streaming()
+"""
+
+import json
+from unittest.mock import AsyncMock, MagicMock
+
+import httpx
+import pytest
+
+
+def _make_mock_response(status_code: int, body: bytes, headers: dict = None):  # type: ignore[assignment]
+    mock = MagicMock(spec=httpx.Response)
+    mock.status_code = status_code
+    mock.headers = httpx.Headers(headers or {"content-type": "text/event-stream"})
+
+    def _raise_for_status():
+        if status_code >= 400:
+            request = httpx.Request("POST", "https://azure.example.com/openai/responses")
+            real_response = httpx.Response(
+                status_code=status_code,
+                content=body,
+                request=request,
+                headers=headers or {},
+            )
+            raise httpx.HTTPStatusError(
+                message=f"{status_code} Error",
+                request=request,
+                response=real_response,
+            )
+
+    mock.raise_for_status = _raise_for_status
+
+    async def _aiter_bytes():
+        yield body
+
+    mock.aiter_bytes = _aiter_bytes
+    return mock
+
+
+def _make_mock_logging_obj():
+    mock = MagicMock()
+    mock.async_flush_passthrough_collected_chunks = AsyncMock()
+    return mock
+
+
+@pytest.mark.asyncio
+async def test_async_streaming_429_raises():
+    """429 from upstream should raise HTTPStatusError, not yield error bytes."""
+    from litellm.passthrough.main import _async_streaming
+
+    error_body = json.dumps(
+        {"error": {"code": "429", "message": "Rate limit exceeded."}}
+    ).encode()
+    mock_response = _make_mock_response(429, error_body)
+
+    async def response_coro():
+        return mock_response
+
+    chunks = []
+    with pytest.raises(httpx.HTTPStatusError) as exc_info:
+        async for chunk in _async_streaming(
+            response=response_coro(),
+            litellm_logging_obj=_make_mock_logging_obj(),
+            provider_config=MagicMock(),
+        ):
+            chunks.append(chunk)
+
+    assert exc_info.value.response.status_code == 429
+    assert len(chunks) == 0
+
+
+@pytest.mark.asyncio
+async def test_async_streaming_500_raises():
+    """500 from upstream should also raise, not yield error bytes."""
+    from litellm.passthrough.main import _async_streaming
+
+    error_body = json.dumps(
+        {"error": {"code": "500", "message": "Internal server error"}}
+    ).encode()
+    mock_response = _make_mock_response(500, error_body)
+
+    async def response_coro():
+        return mock_response
+
+    with pytest.raises(httpx.HTTPStatusError) as exc_info:
+        async for _ in _async_streaming(
+            response=response_coro(),
+            litellm_logging_obj=_make_mock_logging_obj(),
+            provider_config=MagicMock(),
+        ):
+            pass
+
+    assert exc_info.value.response.status_code == 500
+
+
+@pytest.mark.asyncio
+async def test_async_streaming_200_yields_chunks():
+    """Successful 200 streaming responses should continue to work normally."""
+    from litellm.passthrough.main import _async_streaming
+
+    sse_data = b'data: {"type":"response.created"}\n\ndata: [DONE]\n\n'
+    mock_response = _make_mock_response(200, sse_data)
+
+    async def response_coro():
+        return mock_response
+
+    chunks = []
+    async for chunk in _async_streaming(
+        response=response_coro(),
+        litellm_logging_obj=_make_mock_logging_obj(),
+        provider_config=MagicMock(),
+    ):
+        chunks.append(chunk)
+
+    assert len(chunks) == 1
+    assert b"response.created" in chunks[0]
diff --git a/tests/test_litellm/passthrough/test_passthrough_main.py b/tests/test_litellm/passthrough/test_passthrough_main.py
index faa59969658..4bb696f8c06 100644
--- a/tests/test_litellm/passthrough/test_passthrough_main.py
+++ b/tests/test_litellm/passthrough/test_passthrough_main.py
@@ -1,13 +1,13 @@
 import json
 import os
 import sys
-from unittest.mock import MagicMock, patch
+from unittest.mock import AsyncMock, MagicMock, patch
 
 import httpx
 import pytest
 from fastapi.testclient import TestClient
 
-from litellm.llms.custom_httpx.http_handler import HTTPHandler
+from litellm.llms.custom_httpx.http_handler import AsyncHTTPHandler, HTTPHandler
 
 sys.path.insert(
     0, os.path.abspath("../../..")
@@ -17,7 +17,7 @@ sys.path.insert(
 from unittest.mock import MagicMock, patch
 
 import litellm
-from litellm.passthrough.main import llm_passthrough_route
+from litellm.passthrough.main import allm_passthrough_route, llm_passthrough_route
 
 
 def test_llm_passthrough_route():
@@ -507,4 +507,115 @@ def test_azure_with_custom_api_base_and_key():
         json_body = call_args.kwargs["json"]
         assert json_body["model"] == "gpt-4.1"
 
-        assert response.status_code == 200
+        assert response.status_code == 200  # type: ignore[union-attr]
+
+
+def _make_429_streaming_response() -> MagicMock:
+    """Build a mock httpx.Response that looks like a streaming 429 from Azure."""
+    error_body = json.dumps(
+        {"error": {"code": "429", "message": "Rate limit exceeded. Retry after 10 seconds."}}
+    ).encode()
+
+    mock = MagicMock(spec=httpx.Response)
+    mock.status_code = 429
+    mock.headers = httpx.Headers({"content-type": "application/json"})
+
+    def _raise_for_status():
+        request = httpx.Request(
+            "POST",
+            "https://my-azure.openai.azure.com/openai/deployments/gpt-4/responses",
+        )
+        raise httpx.HTTPStatusError(
+            message="429 Too Many Requests",
+            request=request,
+            response=httpx.Response(
+                status_code=429,
+                content=error_body,
+                request=request,
+            ),
+        )
+
+    mock.raise_for_status = _raise_for_status
+
+    async def _aiter_bytes():
+        yield error_body
+
+    mock.aiter_bytes = _aiter_bytes
+    return mock
+
+
+@pytest.mark.asyncio
+async def test_allm_passthrough_route_429_streaming_raises():
+    """
+    Regression test: Azure 429 during streaming must raise HTTPStatusError,
+    not be silently forwarded as raw bytes under HTTP 200.
+
+    Before the fix, _async_streaming() would yield the 429 error JSON as
+    chunks and allm_passthrough_route returned an async generator.  The
+    caller (azure_proxy_route) wrapped it in StreamingResponse(status_code=200),
+    so the client saw HTTP 200 + unparseable SSE body → silent task_complete(null).
+
+    After the fix, raise_for_status() fires inside _async_streaming() before
+    any chunks are yielded, so the exception propagates all the way up.
+    """
+    mock_provider_config = MagicMock()
+    mock_provider_config.get_complete_url.return_value = (
+        httpx.URL(
+            "https://my-azure.openai.azure.com/openai/deployments/gpt-4/responses"
+        ),
+        "https://my-azure.openai.azure.com",
+    )
+    mock_provider_config.get_api_key.return_value = "fake-azure-key"
+    mock_provider_config.validate_environment.return_value = {"api-key": "fake-azure-key"}
+    mock_provider_config.sign_request.return_value = ({"api-key": "fake-azure-key"}, None)
+    mock_provider_config.is_streaming_request.return_value = True
+
+    mock_429_response = _make_429_streaming_response()
+
+    async_client = AsyncHTTPHandler()
+    mock_send = AsyncMock(return_value=mock_429_response)
+    mock_build_request = MagicMock(return_value=MagicMock())
+
+    mock_logging_obj = MagicMock()
+    mock_logging_obj.update_environment_variables = MagicMock()
+    mock_logging_obj.async_flush_passthrough_collected_chunks = AsyncMock()
+
+    with patch(
+        "litellm.utils.ProviderConfigManager.get_provider_passthrough_config",
+        return_value=mock_provider_config,
+    ), patch(
+        "litellm.litellm_core_utils.get_litellm_params.get_litellm_params",
+        return_value={},
+    ), patch(
+        "litellm.litellm_core_utils.get_llm_provider_logic.get_llm_provider",
+        return_value=(
+            "gpt-4",
+            "azure",
+            "fake-azure-key",
+            "https://my-azure.openai.azure.com",
+        ),
+    ), patch.object(
+        async_client.client, "send", mock_send
+    ), patch.object(
+        async_client.client, "build_request", mock_build_request
+    ):
+        result = await allm_passthrough_route(
+            model="azure/gpt-4",
+            endpoint="openai/deployments/gpt-4/responses",
+            method="POST",
+            custom_llm_provider="azure",
+            api_base="https://my-azure.openai.azure.com",
+            api_key="fake-azure-key",
+            json={"model": "gpt-4", "input": "hello", "stream": True},
+            client=async_client,
+            litellm_logging_obj=mock_logging_obj,
+        )
+
+        # result is an async generator — consuming it must raise, not silently yield error bytes
+        chunks = []
+        with pytest.raises(httpx.HTTPStatusError) as exc_info:
+            async for chunk in result:  # type: ignore[union-attr]
+                chunks.append(chunk)
+
+    assert exc_info.value.response.status_code == 429
+    assert len(chunks) == 0, "No chunks should be yielded before the 429 raises"