diff --git a/litellm/caching.py b/litellm/caching.py
index 95cad01cf..64488289a 100644
--- a/litellm/caching.py
+++ b/litellm/caching.py
@@ -64,16 +64,55 @@ class BaseCache:
 
 
 class InMemoryCache(BaseCache):
-    def __init__(self):
-        # if users don't provider one, use the default litellm cache
-        self.cache_dict = {}
-        self.ttl_dict = {}
+    def __init__(
+        self,
+        max_size_in_memory: Optional[int] = 200,
+        default_ttl: Optional[
+            int
+        ] = 600,  # default ttl is 10 minutes. At maximum litellm rate limiting logic requires objects to be in memory for 1 minute
+    ):
+        """
+        max_size_in_memory [int]: Maximum number of items in cache. done to prevent memory leaks. Use 200 items as a default
+        """
+        self.max_size_in_memory = (
+            max_size_in_memory or 200
+        )  # set an upper bound of 200 items in-memory
+        self.default_ttl = default_ttl or 600
+
+        # in-memory cache
+        self.cache_dict: dict = {}
+        self.ttl_dict: dict = {}
+
+    def evict_cache(self):
+        """
+        Eviction policy:
+        - check if any items in ttl_dict are expired -> remove them from ttl_dict and cache_dict
+
+
+        This guarantees the following:
+        - 1. When item ttl not set: At minimumm each item will remain in memory for 5 minutes
+        - 2. When ttl is set: the item will remain in memory for at least that amount of time
+        - 3. the size of in-memory cache is bounded
+
+        """
+        for key in list(self.ttl_dict.keys()):
+            if time.time() > self.ttl_dict[key]:
+                self.cache_dict.pop(key, None)
+                self.ttl_dict.pop(key, None)
 
     def set_cache(self, key, value, **kwargs):
-        print_verbose("InMemoryCache: set_cache")
+        print_verbose(
+            "InMemoryCache: set_cache. current size= {}".format(len(self.cache_dict))
+        )
+        if len(self.cache_dict) >= self.max_size_in_memory:
+            # only evict when cache is full
+            self.evict_cache()
+
         self.cache_dict[key] = value
         if "ttl" in kwargs:
             self.ttl_dict[key] = time.time() + kwargs["ttl"]
+        else:
+            self.ttl_dict[key] = time.time() + self.default_ttl
 
     async def async_set_cache(self, key, value, **kwargs):
         self.set_cache(key=key, value=value, **kwargs)
@@ -139,6 +178,7 @@ class InMemoryCache(BaseCache):
         init_value = await self.async_get_cache(key=key) or 0
         value = init_value + value
         await self.async_set_cache(key, value, **kwargs)
+
         return value
 
     def flush_cache(self):
diff --git a/litellm/proxy/litellm_pre_call_utils.py b/litellm/proxy/litellm_pre_call_utils.py
index 673b027ca..aec6215ce 100644
--- a/litellm/proxy/litellm_pre_call_utils.py
+++ b/litellm/proxy/litellm_pre_call_utils.py
@@ -176,7 +176,6 @@ async def add_litellm_data_to_request(
 
 def _add_otel_traceparent_to_data(data: dict, request: Request):
     from litellm.proxy.proxy_server import open_telemetry_logger
-
     if data is None:
         return
     if open_telemetry_logger is None:
diff --git a/poetry.lock b/poetry.lock
index 290d19f7a..88927576c 100644
--- a/poetry.lock
+++ b/poetry.lock
@@ -1,4 +1,4 @@
-# This file is automatically @generated by Poetry 1.8.3 and should not be changed by hand.
+# This file is automatically @generated by Poetry 1.7.1 and should not be changed by hand.
 
 [[package]]
 name = "aiohttp"
@@ -343,13 +343,13 @@ uvloop = ["uvloop (>=0.15.2)"]
 
 [[package]]
 name = "cachetools"
-version = "5.3.3"
+version = "5.3.1"
 description = "Extensible memoizing collections and decorators"
-optional = true
+optional = false
 python-versions = ">=3.7"
 files = [
-    {file = "cachetools-5.3.3-py3-none-any.whl", hash = "sha256:0abad1021d3f8325b2fc1d2e9c8b9c9d57b04c3932657a72465447332c24d945"},
-    {file = "cachetools-5.3.3.tar.gz", hash = "sha256:ba29e2dfa0b8b556606f097407ed1aa62080ee108ab0dc5ec9d6a723a007d105"},
+    {file = "cachetools-5.3.1-py3-none-any.whl", hash = "sha256:95ef631eeaea14ba2e36f06437f36463aac3a096799e876ee55e5cdccb102590"},
+    {file = "cachetools-5.3.1.tar.gz", hash = "sha256:dce83f2d9b4e1f732a8cd44af8e8fab2dbe46201467fc98b3ef8f269092bf62b"},
 ]
 
 [[package]]
@@ -3300,4 +3300,4 @@ proxy = ["PyJWT", "apscheduler", "backoff", "cryptography", "fastapi", "fastapi-
 [metadata]
 lock-version = "2.0"
 python-versions = ">=3.8.1,<4.0, !=3.9.7"
-content-hash = "f400d2f686954c2b12b0ee88546f31d52ebc8e323a3ec850dc46d74748d38cdf"
+content-hash = "022481b965a1a6524cc25d52eff59592779aafdf03dc6159c834b9519079f549"