diff --git a/litellm/router.py b/litellm/router.py
index d60c39ca402..e256d409bb0 100644
--- a/litellm/router.py
+++ b/litellm/router.py
@@ -10189,6 +10189,7 @@ class Router:
             "retry_after",
             "fallbacks",
             "context_window_fallbacks",
+            "retry_policy",
             "model_group_retry_policy",
             "model_group_alias",
             "enable_weighted_failover",
@@ -10212,6 +10213,11 @@ class Router:
                 elif var == "routing_groups":
                     self._routing_groups_input = kwargs[var]
                     rebuild_routing_groups = True
+                elif var == "retry_policy":
+                    value = kwargs[var]
+                    if isinstance(value, dict):
+                        value = RetryPolicy(**value)
+                    setattr(self, var, value)
                 else:
                     value = kwargs[var]
                     # only run routing strategy init if it has changed
diff --git a/litellm/types/router.py b/litellm/types/router.py
index ef7eb05d087..034142e16b8 100644
--- a/litellm/types/router.py
+++ b/litellm/types/router.py
@@ -91,6 +91,7 @@ class UpdateRouterConfig(BaseModel):
     routing_strategy_args: Optional[dict] = None
     routing_strategy: Optional[str] = None
     routing_groups: Optional[List[RoutingGroup]] = None
+    retry_policy: Optional[dict] = None
     model_group_retry_policy: Optional[dict] = None
     model_group_affinity_config: Optional[Dict[str, List[str]]] = None
     allowed_fails: Optional[int] = None
diff --git a/tests/test_litellm/test_router_retry_policy_update.py b/tests/test_litellm/test_router_retry_policy_update.py
new file mode 100644
index 00000000000..5e061f940d7
--- /dev/null
+++ b/tests/test_litellm/test_router_retry_policy_update.py
@@ -0,0 +1,143 @@
+"""
+Tests for the retry_policy fix on Router.update_settings (LIT-3152).
+
+Bug: the Admin UI Model Retry Settings tab posts a global ``retry_policy``
+through ``POST /config/update`` -> ``UpdateRouterConfig`` ->
+``Router.update_settings``. Both the pydantic schema and
+``update_settings`` were dropping the field silently:
+
+- ``UpdateRouterConfig`` had no ``retry_policy`` attribute, so
+  ``model_dump(exclude_none=True)`` returned ``{}`` for that key.
+- ``Router.update_settings`` had no ``"retry_policy"`` entry in
+  ``_allowed_settings``, so even when fed directly the call was a no-op
+  (``Setting {} is not allowed`` debug log).
+
+The net effect was that after saving retry counts in the UI and
+reloading, every value snapped back to ``defaultRetry = num_retries``
+(2 by default), exactly matching the ticket repro.
+
+This file pins both halves of the fix.
+"""
+
+import os
+import sys
+
+sys.path.insert(0, os.path.abspath("../.."))
+
+import litellm
+from litellm.types.router import RetryPolicy, UpdateRouterConfig
+
+# ---------------------------------------------------------------------------
+# UpdateRouterConfig schema membership (LIT-3152 part 1)
+# ---------------------------------------------------------------------------
+
+
+def test_update_router_config_exposes_retry_policy_field():
+    """retry_policy must be a declared field on UpdateRouterConfig.
+
+    Without it, Pydantic silently strips the key from the /config/update
+    payload before the proxy even calls llm_router.update_settings.
+    """
+    assert "retry_policy" in UpdateRouterConfig.model_fields
+
+
+def test_update_router_config_accepts_retry_policy_payload():
+    """The exact payload the Admin UI Model Retry Settings tab sends must
+    round-trip through the schema's ``dict(exclude_none=True)`` form, since
+    that is what /config/update writes to the LiteLLM_Config row."""
+    payload = {
+        "retry_policy": {
+            "BadRequestErrorRetries": 5,
+            "RateLimitErrorRetries": 7,
+            "TimeoutErrorRetries": 3,
+        }
+    }
+    cfg = UpdateRouterConfig(**payload)
+    dumped = cfg.model_dump(exclude_none=True)
+    assert "retry_policy" in dumped
+    assert dumped["retry_policy"]["BadRequestErrorRetries"] == 5
+    assert dumped["retry_policy"]["RateLimitErrorRetries"] == 7
+    assert dumped["retry_policy"]["TimeoutErrorRetries"] == 3
+
+
+# ---------------------------------------------------------------------------
+# Router.update_settings retry_policy path (LIT-3152 part 2)
+# ---------------------------------------------------------------------------
+
+
+def _build_router() -> litellm.Router:
+    return litellm.Router(
+        model_list=[
+            {
+                "model_name": "test-model",
+                "litellm_params": {
+                    "model": "openai/gpt-4",
+                    "api_key": "sk-fake",
+                    "api_base": "http://localhost:9999",
+                },
+            }
+        ]
+    )
+
+
+def test_update_settings_persists_retry_policy_dict():
+    """When the proxy's ``_add_router_settings_from_db_config`` calls
+    ``llm_router.update_settings(retry_policy={...})`` after reading the
+    DB row, the dict must land on ``self.retry_policy`` as a typed
+    ``RetryPolicy`` (mirroring ``Router.__init__`` semantics)."""
+    router = _build_router()
+    assert router.retry_policy is None  # baseline
+
+    router.update_settings(
+        retry_policy={
+            "BadRequestErrorRetries": 5,
+            "RateLimitErrorRetries": 7,
+            "TimeoutErrorRetries": 3,
+        }
+    )
+
+    assert isinstance(router.retry_policy, RetryPolicy)
+    assert router.retry_policy.BadRequestErrorRetries == 5
+    assert router.retry_policy.RateLimitErrorRetries == 7
+    assert router.retry_policy.TimeoutErrorRetries == 3
+
+
+def test_update_settings_accepts_retry_policy_object_unchanged():
+    """A pre-built ``RetryPolicy`` instance must pass through verbatim so
+    callers that already constructed one (e.g. tests or programmatic
+    callers) keep working."""
+    router = _build_router()
+
+    policy = RetryPolicy(BadRequestErrorRetries=2)
+    router.update_settings(retry_policy=policy)
+
+    assert router.retry_policy is policy
+
+
+def test_update_settings_get_settings_round_trip_for_retry_policy():
+    """``GET /get/config/callbacks`` serializes ``llm_router.get_settings()``
+    back to the UI. After updating, the round-trip must reflect the new
+    values rather than the pre-update sentinel."""
+    router = _build_router()
+    pre = router.get_settings().get("retry_policy")
+    assert pre is None
+
+    router.update_settings(
+        retry_policy={
+            "BadRequestErrorRetries": 5,
+            "RateLimitErrorRetries": 7,
+        }
+    )
+    post = router.get_settings().get("retry_policy")
+    assert post is not None
+    assert post.BadRequestErrorRetries == 5
+    assert post.RateLimitErrorRetries == 7
+
+
+def test_update_settings_unrelated_kwargs_still_skipped():
+    """Regression guard: the new branch must not relax the
+    ``_allowed_settings`` allowlist for unrelated keys. An unknown
+    setting should still be dropped silently as before."""
+    router = _build_router()
+    router.update_settings(this_is_not_a_router_setting=123)
+    assert not hasattr(router, "this_is_not_a_router_setting")