diff --git a/litellm/proxy/db/db_spend_update_writer.py b/litellm/proxy/db/db_spend_update_writer.py
index 3277f19c7de0..9c83dc433be3 100644
--- a/litellm/proxy/db/db_spend_update_writer.py
+++ b/litellm/proxy/db/db_spend_update_writer.py
@@ -58,7 +58,7 @@ def __init__(
     ):
         self.redis_cache = redis_cache
         self.redis_update_buffer = RedisUpdateBuffer(redis_cache=self.redis_cache)
-        self.pod_lock_manager = PodLockManager()
+        self.pod_lock_manager = PodLockManager(redis_cache=self.redis_cache)
         self.spend_update_queue = SpendUpdateQueue()
         self.daily_spend_update_queue = DailySpendUpdateQueue()
         self.daily_team_spend_update_queue = DailySpendUpdateQueue()
@@ -839,6 +839,7 @@ async def _update_daily_spend(
         Generic function to update daily spend for any entity type (user, team, tag)
         """
         from litellm.proxy.utils import _raise_failed_update_spend_exception
+        from litellm.proxy.db.exception_handler import is_deadlock_error
 
         verbose_proxy_logger.debug(
             f"Daily {entity_type.capitalize()} Spend transactions: {len(daily_spend_transactions)}"
@@ -849,9 +850,9 @@ async def _update_daily_spend(
         try:
             for i in range(n_retry_times + 1):
                 try:
-                    transactions_to_process = dict(
-                        list(daily_spend_transactions.items())[:BATCH_SIZE]
-                    )
+                    # Deterministic order to reduce lock-order inversions across workers
+                    ordered_items = sorted(daily_spend_transactions.items(), key=lambda kv: kv[0])
+                    transactions_to_process = dict(ordered_items[:BATCH_SIZE])
 
                     if len(transactions_to_process) == 0:
                         verbose_proxy_logger.debug(
@@ -977,6 +978,19 @@ async def _update_daily_spend(
                             proxy_logging_obj=proxy_logging_obj,
                         )
                     await asyncio.sleep(2**i)
+                except Exception as e:
+                    # Retry on Postgres deadlock (40P01)
+                    if is_deadlock_error(e):
+                        if i >= n_retry_times:
+                            _raise_failed_update_spend_exception(
+                                e=e,
+                                start_time=start_time,
+                                proxy_logging_obj=proxy_logging_obj,
+                            )
+                        # small jitter to desynchronize conflicting workers
+                        await asyncio.sleep((2**i) + (0.001 * (i + 1)))
+                        continue
+                    raise
 
         except Exception as e:
             if "transactions_to_process" in locals():
diff --git a/litellm/proxy/db/exception_handler.py b/litellm/proxy/db/exception_handler.py
index db73f9e9c939..50d69f317146 100644
--- a/litellm/proxy/db/exception_handler.py
+++ b/litellm/proxy/db/exception_handler.py
@@ -59,3 +59,28 @@ def handle_db_exception(e: Exception):
         ):
             return None
         raise e
+
+
+def is_deadlock_error(e: Exception) -> bool:
+    """
+    Best-effort detector for Postgres deadlocks (SQLSTATE 40P01) coming through Prisma.
+
+    We can't rely on a strongly-typed error from the Prisma Python client for this,
+    so we match on the SQLSTATE code or message text.
+    """
+    message = str(e)
+    if "40P01" in message:
+        return True
+    if "deadlock detected" in message.lower():
+        return True
+    try:
+        import prisma  # type: ignore
+
+        if isinstance(e, prisma.errors.PrismaError) and (
+            "40P01" in message or "deadlock" in message.lower()
+        ):
+            return True
+    except Exception:
+        # If prisma isn't available or anything goes wrong, fall back to string checks
+        pass
+    return False