diff --git a/litellm/router.py b/litellm/router.py
index 31f8a0be81..ad95a0a9ea 100644
--- a/litellm/router.py
+++ b/litellm/router.py
@@ -2154,7 +2154,6 @@ class Router:
             - there are no fallbacks
             - there are no healthy deployments in the same model group
         """
-
         _num_healthy_deployments = 0
         if healthy_deployments is not None and isinstance(healthy_deployments, list):
             _num_healthy_deployments = len(healthy_deployments)
@@ -2167,15 +2166,21 @@ class Router:
             raise error
 
         # Error we should only retry if there are other deployments
-        if isinstance(error, openai.RateLimitError) or isinstance(
-            error, openai.AuthenticationError
-        ):
+        if isinstance(error, openai.RateLimitError):
             if (
-                _num_healthy_deployments <= 0
-                and regular_fallbacks is not None
+                _num_healthy_deployments <= 0  # if no healthy deployments
+                and regular_fallbacks is not None  # and fallbacks available
                 and len(regular_fallbacks) > 0
             ):
-                raise error
+                raise error  # then raise the error
+
+        if isinstance(error, openai.AuthenticationError):
+            """
+            - if other deployments available -> retry
+            - else -> raise error
+            """
+            if _num_healthy_deployments <= 0:  # if no healthy deployments
+                raise error  # then raise error
 
         return True
 
diff --git a/litellm/tests/test_router_retries.py b/litellm/tests/test_router_retries.py
index 58e52fe996..ee84ce3ad7 100644
--- a/litellm/tests/test_router_retries.py
+++ b/litellm/tests/test_router_retries.py
@@ -60,7 +60,7 @@ Test sync + async
 
 
 @pytest.mark.parametrize("sync_mode", [True, False])
-@pytest.mark.parametrize("error_type", ["Authorization Error", "API Error"])
+@pytest.mark.parametrize("error_type", ["API Error", "Authorization Error"])
 @pytest.mark.asyncio
 async def test_router_retries_errors(sync_mode, error_type):
     """