diff --git a/litellm/proxy/auth/auth_checks.py b/litellm/proxy/auth/auth_checks.py
index 0b30999aa21..cb1d1d447e9 100644
--- a/litellm/proxy/auth/auth_checks.py
+++ b/litellm/proxy/auth/auth_checks.py
@@ -632,12 +632,8 @@ async def common_checks(  # noqa: PLR0915
             )
 
         # 4. If user is in budget
-        ## 4.1 check personal budget, if personal key
-        if (
-            (team_object is None or team_object.team_id is None)
-            and user_object is not None
-            and user_object.max_budget is not None
-        ):
+        ## 4.1 check user budget
+        if user_object is not None and user_object.max_budget is not None:
             user_budget = user_object.max_budget
             from litellm.proxy.proxy_server import get_current_spend
 
diff --git a/tests/test_litellm/proxy/auth/test_user_budget_team_key.py b/tests/test_litellm/proxy/auth/test_user_budget_team_key.py
new file mode 100644
index 00000000000..4bb5cf5cbf6
--- /dev/null
+++ b/tests/test_litellm/proxy/auth/test_user_budget_team_key.py
@@ -0,0 +1,180 @@
+"""
+Test that user max_budget is enforced for team-associated API keys.
+
+Regression test for https://github.com/BerriAI/litellm/issues/27394
+The user budget check in common_checks() was gated behind a condition that
+skipped it when the key belonged to a team.
+"""
+
+import os
+import sys
+
+sys.path.insert(0, os.path.abspath("../../.."))
+
+from unittest.mock import AsyncMock, MagicMock, patch
+
+import pytest
+
+import litellm
+from litellm.proxy._types import (
+    LiteLLM_TeamTable,
+    LiteLLM_UserTable,
+    UserAPIKeyAuth,
+)
+from litellm.proxy.auth.auth_checks import common_checks
+
+
+@pytest.fixture(autouse=True)
+def set_salt_key(monkeypatch):
+    monkeypatch.setenv("LITELLM_SALT_KEY", "sk-1234")
+
+
+def _make_user(user_id: str, max_budget: float, spend: float) -> LiteLLM_UserTable:
+    return LiteLLM_UserTable(
+        user_id=user_id,
+        max_budget=max_budget,
+        spend=spend,
+    )
+
+
+def _make_team(team_id: str) -> LiteLLM_TeamTable:
+    return LiteLLM_TeamTable(
+        team_id=team_id,
+        models=[],
+        max_budget=None,
+    )
+
+
+def _make_request():
+    mock_request = MagicMock()
+    mock_request.url = MagicMock()
+    mock_request.url.path = "/chat/completions"
+    return mock_request
+
+
+def _common_patches():
+    """Shared mocks for common_checks dependencies."""
+    return [
+        patch(
+            "litellm.proxy.proxy_server.get_current_spend",
+            new_callable=AsyncMock,
+        ),
+        patch(
+            "litellm.proxy.proxy_server.prisma_client",
+            MagicMock(),
+        ),
+        patch(
+            "litellm.proxy.auth.auth_checks.get_team_membership",
+            new_callable=AsyncMock,
+            return_value=None,
+        ),
+        patch(
+            "litellm.proxy.auth.auth_checks._tag_max_budget_check",
+            new_callable=AsyncMock,
+        ),
+    ]
+
+
+@pytest.mark.asyncio
+async def test_user_budget_enforced_with_team_key():
+    """User over budget should be rejected even when the key has a team_id."""
+    user = _make_user(user_id="user-1", max_budget=30.0, spend=35.0)
+    team = _make_team(team_id="team-1")
+    token = UserAPIKeyAuth(token="sk-test", user_id="user-1", team_id="team-1")
+
+    patches = _common_patches()
+    for p in patches:
+        p.start()
+
+    # Set the spend return value
+    from litellm.proxy.proxy_server import get_current_spend
+
+    get_current_spend.return_value = 35.0
+
+    try:
+        with pytest.raises(litellm.BudgetExceededError):
+            await common_checks(
+                request_body={"model": "gpt-4o"},
+                team_object=team,
+                user_object=user,
+                end_user_object=None,
+                global_proxy_spend=None,
+                general_settings={},
+                route="/chat/completions",
+                llm_router=None,
+                proxy_logging_obj=MagicMock(),
+                valid_token=token,
+                request=_make_request(),
+            )
+    finally:
+        for p in patches:
+            p.stop()
+
+
+@pytest.mark.asyncio
+async def test_user_under_budget_with_team_key_passes():
+    """User under budget with a team key should pass the check."""
+    user = _make_user(user_id="user-2", max_budget=100.0, spend=50.0)
+    team = _make_team(team_id="team-2")
+    token = UserAPIKeyAuth(token="sk-test", user_id="user-2", team_id="team-2")
+
+    patches = _common_patches()
+    for p in patches:
+        p.start()
+
+    from litellm.proxy.proxy_server import get_current_spend
+
+    get_current_spend.return_value = 50.0
+
+    try:
+        result = await common_checks(
+            request_body={"model": "gpt-4o"},
+            team_object=team,
+            user_object=user,
+            end_user_object=None,
+            global_proxy_spend=None,
+            general_settings={},
+            route="/chat/completions",
+            llm_router=None,
+            proxy_logging_obj=MagicMock(),
+            valid_token=token,
+            request=_make_request(),
+        )
+        assert result is True
+    finally:
+        for p in patches:
+            p.stop()
+
+
+@pytest.mark.asyncio
+async def test_user_budget_still_enforced_without_team():
+    """User over budget without a team should still be rejected (no regression)."""
+    user = _make_user(user_id="user-3", max_budget=10.0, spend=15.0)
+    token = UserAPIKeyAuth(token="sk-test", user_id="user-3")
+
+    patches = _common_patches()
+    for p in patches:
+        p.start()
+
+    from litellm.proxy.proxy_server import get_current_spend
+
+    get_current_spend.return_value = 15.0
+
+    try:
+        with pytest.raises(litellm.BudgetExceededError):
+            await common_checks(
+                request_body={"model": "gpt-4o"},
+                team_object=None,
+                user_object=user,
+                end_user_object=None,
+                global_proxy_spend=None,
+                general_settings={},
+                route="/chat/completions",
+                llm_router=None,
+                proxy_logging_obj=MagicMock(),
+                valid_token=token,
+                request=_make_request(),
+            )
+    finally:
+        for p in patches:
+            p.stop()