diff --git a/src/strands/models/litellm.py b/src/strands/models/litellm.py
index c1e99f1a2..1e4bf42a6 100644
--- a/src/strands/models/litellm.py
+++ b/src/strands/models/litellm.py
@@ -50,6 +50,7 @@ def __init__(self, client_args: Optional[dict[str, Any]] = None, **model_config:
         """
         self.client_args = client_args or {}
         self.config = dict(model_config)
+        self._apply_proxy_prefix()
 
         logger.debug("config=<%s> | initializing", self.config)
 
@@ -61,6 +62,7 @@ def update_config(self, **model_config: Unpack[LiteLLMConfig]) -> None:  # type:
             **model_config: Configuration overrides.
         """
         self.config.update(model_config)
+        self._apply_proxy_prefix()
 
     @override
     def get_config(self) -> LiteLLMConfig:
@@ -223,3 +225,14 @@ async def structured_output(
 
         # If no tool_calls found, raise an error
         raise ValueError("No tool_calls found in response")
+
+    def _apply_proxy_prefix(self) -> None:
+        """Apply litellm_proxy/ prefix to model_id when use_litellm_proxy is True.
+
+        This is a workaround for https://github.com/BerriAI/litellm/issues/13454
+        where use_litellm_proxy parameter is not honored.
+        """
+        if self.client_args.get("use_litellm_proxy") and "model_id" in self.config:
+            model_id = self.get_config()["model_id"]
+            if not model_id.startswith("litellm_proxy/"):
+                self.config["model_id"] = f"litellm_proxy/{model_id}"
diff --git a/tests/strands/models/test_litellm.py b/tests/strands/models/test_litellm.py
index 44b6df63b..443bd3e8f 100644
--- a/tests/strands/models/test_litellm.py
+++ b/tests/strands/models/test_litellm.py
@@ -58,6 +58,39 @@ def test_update_config(model, model_id):
     assert tru_model_id == exp_model_id
 
 
+@pytest.mark.parametrize(
+    "client_args, model_id, expected_model_id",
+    [
+        ({"use_litellm_proxy": True}, "openai/gpt-4", "litellm_proxy/openai/gpt-4"),
+        ({"use_litellm_proxy": False}, "openai/gpt-4", "openai/gpt-4"),
+        ({"use_litellm_proxy": None}, "openai/gpt-4", "openai/gpt-4"),
+        ({}, "openai/gpt-4", "openai/gpt-4"),
+        (None, "openai/gpt-4", "openai/gpt-4"),
+        ({"use_litellm_proxy": True}, "litellm_proxy/openai/gpt-4", "litellm_proxy/openai/gpt-4"),
+        ({"use_litellm_proxy": False}, "litellm_proxy/openai/gpt-4", "litellm_proxy/openai/gpt-4"),
+    ],
+)
+def test__init__use_litellm_proxy_prefix(client_args, model_id, expected_model_id):
+    """Test litellm_proxy prefix behavior for various configurations."""
+    model = LiteLLMModel(client_args=client_args, model_id=model_id)
+    assert model.get_config()["model_id"] == expected_model_id
+
+
+@pytest.mark.parametrize(
+    "client_args, initial_model_id, new_model_id, expected_model_id",
+    [
+        ({"use_litellm_proxy": True}, "openai/gpt-4", "anthropic/claude-3", "litellm_proxy/anthropic/claude-3"),
+        ({"use_litellm_proxy": False}, "openai/gpt-4", "anthropic/claude-3", "anthropic/claude-3"),
+        (None, "openai/gpt-4", "anthropic/claude-3", "anthropic/claude-3"),
+    ],
+)
+def test_update_config_proxy_prefix(client_args, initial_model_id, new_model_id, expected_model_id):
+    """Test that update_config applies proxy prefix correctly."""
+    model = LiteLLMModel(client_args=client_args, model_id=initial_model_id)
+    model.update_config(model_id=new_model_id)
+    assert model.get_config()["model_id"] == expected_model_id
+
+
 @pytest.mark.parametrize(
     "content, exp_result",
     [