diff --git a/letta/errors.py b/letta/errors.py
index 34a82ccb..e2c1074b 100644
--- a/letta/errors.py
+++ b/letta/errors.py
@@ -202,6 +202,10 @@ class LLMTimeoutError(LLMError):
     """Error when LLM request times out"""
 
 
+class LLMProviderOverloaded(LLMError):
+    """Error when LLM provider is overloaded"""
+
+
 class BedrockPermissionError(LettaError):
     """Exception raised for errors in the Bedrock permission process."""
 
diff --git a/letta/llm_api/anthropic_client.py b/letta/llm_api/anthropic_client.py
index 322c6a5a..92246c1b 100644
--- a/letta/llm_api/anthropic_client.py
+++ b/letta/llm_api/anthropic_client.py
@@ -19,6 +19,7 @@ from letta.errors import (
     LLMConnectionError,
     LLMNotFoundError,
     LLMPermissionDeniedError,
+    LLMProviderOverloaded,
     LLMRateLimitError,
     LLMServerError,
     LLMTimeoutError,
@@ -513,6 +514,11 @@ class AnthropicClient(LLMClientBase):
 
         if isinstance(e, anthropic.APIStatusError):
             logger.warning(f"[Anthropic] API status error: {str(e)}")
+            if "overloaded" in str(e).lower():
+                return LLMProviderOverloaded(
+                    message=f"Anthropic API is overloaded: {str(e)}",
+                    code=ErrorCode.INTERNAL_SERVER_ERROR,
+                )
             return LLMServerError(
                 message=f"Anthropic API error: {str(e)}",
                 code=ErrorCode.INTERNAL_SERVER_ERROR,
diff --git a/letta/server/rest_api/app.py b/letta/server/rest_api/app.py
index a3584f0c..055b119d 100644
--- a/letta/server/rest_api/app.py
+++ b/letta/server/rest_api/app.py
@@ -40,6 +40,7 @@ from letta.errors import (
     LettaUserNotFoundError,
     LLMAuthenticationError,
     LLMError,
+    LLMProviderOverloaded,
     LLMRateLimitError,
     LLMTimeoutError,
     PendingApprovalError,
@@ -398,6 +399,7 @@ def create_application() -> "FastAPI":
     # 503 Service Unavailable errors
     app.add_exception_handler(OperationalError, _error_handler_503)
     app.add_exception_handler(LettaServiceUnavailableError, _error_handler_503)
+    app.add_exception_handler(LLMProviderOverloaded, _error_handler_503)
 
     @app.exception_handler(IncompatibleAgentType)
     async def handle_incompatible_agent_type(request: Request, exc: IncompatibleAgentType):