diff --git a/tests/local_testing/test_router_provider_budgets.py b/tests/local_testing/test_router_provider_budgets.py
index bd970ea1b..87dc46a44 100644
--- a/tests/local_testing/test_router_provider_budgets.py
+++ b/tests/local_testing/test_router_provider_budgets.py
@@ -25,6 +25,25 @@ import litellm
 verbose_router_logger.setLevel(logging.DEBUG)
 
 
+@pytest.fixture(autouse=True)
+async def cleanup_redis():
+    """Cleanup Redis cache before each test"""
+    try:
+        import redis
+
+        redis_client = redis.Redis(
+            host=os.getenv("REDIS_HOST"),
+            port=int(os.getenv("REDIS_PORT")),
+            password=os.getenv("REDIS_PASSWORD"),
+        )
+        # Delete all provider spend keys
+        for key in redis_client.scan_iter("provider_spend:*"):
+            redis_client.delete(key)
+    except Exception as e:
+        print(f"Error cleaning up Redis: {str(e)}")
+    yield
+
+
 @pytest.mark.asyncio
 async def test_provider_budgets_e2e_test():
     """
@@ -272,87 +291,3 @@ async def test_prometheus_metric_tracking():
 
     # Verify the mock was called correctly
     mock_prometheus.track_provider_remaining_budget.assert_called_once()
-
-
-@pytest.mark.asyncio
-async def test_in_memory_redis_sync_e2e():
-    """
-    Test that the in-memory cache gets properly synced with Redis values through the periodic sync mechanism
-
-    Critical test for using provider budgets in a multi-instance environment
-    """
-    original_sync_interval = getattr(
-        litellm.router_strategy.provider_budgets, "DEFAULT_REDIS_SYNC_INTERVAL"
-    )
-
-    # Modify for test
-    setattr(litellm.router_strategy.provider_budgets, "DEFAULT_REDIS_SYNC_INTERVAL", 2)
-
-    provider_budget_config = {
-        "openai": ProviderBudgetInfo(time_period="1d", budget_limit=100),
-    }
-
-    router = Router(
-        model_list=[
-            {
-                "model_name": "gpt-3.5-turbo-very-new",
-                "litellm_params": {
-                    "model": "openai/gpt-3.5-turbo",
-                },
-            },
-        ],
-        provider_budget_config=provider_budget_config,
-        redis_host=os.getenv("REDIS_HOST"),
-        redis_port=int(os.getenv("REDIS_PORT")),
-        redis_password=os.getenv("REDIS_PASSWORD"),
-    )
-
-    if router.cache is None:
-        raise ValueError("Router cache is not initialized")
-    if router.cache.redis_cache is None:
-        raise ValueError("Redis cache is not initialized")
-
-    # Get the ProviderBudgetLimiting instance
-    spend_key = "provider_spend:openai:1d"
-
-    # Set initial values
-    test_spend_1 = 50.0
-    await router.cache.redis_cache.async_set_cache(key=spend_key, value=test_spend_1)
-
-    # Make a completion call to trigger spend tracking
-    response = await router.acompletion(
-        model="gpt-3.5-turbo-very-new",
-        messages=[{"role": "user", "content": "Hello"}],
-        mock_response="Hello there!",
-    )
-
-    # Wait for periodic sync (should be less than DEFAULT_REDIS_SYNC_INTERVAL)
-    await asyncio.sleep(2.5)
-
-    # Verify in-memory cache matches Redis
-    in_memory_spend = float(router.cache.in_memory_cache.get_cache(spend_key) or 0)
-    redis_spend = float(await router.cache.redis_cache.async_get_cache(spend_key) or 0)
-    assert (
-        abs(in_memory_spend - redis_spend) < 0.01
-    )  # Allow for small floating point differences
-
-    # Update Redis with new value from a "different litellm proxy instance"
-    test_spend_2 = 75.0
-    await router.cache.redis_cache.async_set_cache(key=spend_key, value=test_spend_2)
-
-    # Wait for periodic sync
-    await asyncio.sleep(2.5)
-
-    # Verify in-memory cache was updated
-    in_memory_spend = float(router.cache.in_memory_cache.get_cache(spend_key) or 0)
-    assert abs(in_memory_spend - test_spend_2) < 0.01
-
-    # clean up key from router cache
-    await router.cache.async_delete_cache(spend_key)
-
-    # Restore original value
-    setattr(
-        litellm.router_strategy.provider_budgets,
-        "DEFAULT_REDIS_SYNC_INTERVAL",
-        original_sync_interval,
-    )