diff --git a/litellm/proxy/proxy_server.py b/litellm/proxy/proxy_server.py
index 1f98ef9524..6c22efebc4 100644
--- a/litellm/proxy/proxy_server.py
+++ b/litellm/proxy/proxy_server.py
@@ -852,8 +852,20 @@ async def _PROXY_track_cost_callback(
                     f"Model not in litellm model cost map. Add custom pricing - https://docs.litellm.ai/docs/proxy/custom_pricing"
                 )
     except Exception as e:
+        error_msg = f"error in tracking cost callback - {traceback.format_exc()}"
+        error_msg += f"\n Args to _PROXY_track_cost_callback\n kwargs: {kwargs}\n completion_response: {completion_response}"
+        user_id = user_id or "not-found"
+        asyncio.create_task(
+            proxy_logging_obj.budget_alerts(
+                user_max_budget=0,
+                user_current_spend=0,
+                type="failed_tracking",
+                user_info=user_id,
+                error_message=error_msg,
+            )
+        )
         verbose_proxy_logger.debug(
-            f"error in tracking cost callback - {traceback.format_exc}"
+            f"error in tracking cost callback - {traceback.format_exc()}"
         )
 
 
diff --git a/litellm/proxy/utils.py b/litellm/proxy/utils.py
index 8804028cc1..919799ca58 100644
--- a/litellm/proxy/utils.py
+++ b/litellm/proxy/utils.py
@@ -198,10 +198,17 @@ class ProxyLogging:
 
     async def budget_alerts(
         self,
-        type: Literal["token_budget", "user_budget", "user_and_proxy_budget"],
+        type: Literal[
+            "token_budget",
+            "user_budget",
+            "user_and_proxy_budget",
+            "failed_budgets",
+            "failed_tracking",
+        ],
         user_max_budget: float,
         user_current_spend: float,
         user_info=None,
+        error_message="",
     ):
         if self.alerting is None:
             # do nothing if alerting is not switched on
@@ -221,6 +228,15 @@ class ProxyLogging:
             max_budget = token_info["max_budget"]
             user_id = token_info["user_id"]
             user_info = f"""\nToken: {token}\nSpend: ${spend}\nMax Budget: ${max_budget}\nUser ID: {user_id}"""
+        elif type == "failed_tracking":
+            user_id = str(user_info)
+            user_info = f"\nUser ID: {user_id}\n Error {error_message}"
+            message = "Failed Tracking Cost for" + user_info
+            await self.alerting_handler(
+                message=message,
+                level="High",
+            )
+            return
         else:
             user_info = str(user_info)
         # percent of max_budget left to spend