diff --git a/litellm/proxy/guardrails/init_guardrails.py b/litellm/proxy/guardrails/init_guardrails.py
index 1ff16b59e5..4cf4510196 100644
--- a/litellm/proxy/guardrails/init_guardrails.py
+++ b/litellm/proxy/guardrails/init_guardrails.py
@@ -31,7 +31,7 @@ def initialize_guardrails(
                 all_guardrails.append(guardrail_item)
 
         # set appropriate callbacks if they are default on
-        default_on_callbacks = []
+        default_on_callbacks = set()
         for guardrail in all_guardrails:
             verbose_proxy_logger.debug(guardrail.guardrail_name)
             verbose_proxy_logger.debug(guardrail.default_on)
@@ -40,11 +40,12 @@ def initialize_guardrails(
                 # add these to litellm callbacks if they don't exist
                 for callback in guardrail.callbacks:
                     if callback not in litellm.callbacks:
-                        default_on_callbacks.append(callback)
+                        default_on_callbacks.add(callback)
 
-        if len(default_on_callbacks) > 0:
+        default_on_callbacks_list = list(default_on_callbacks)
+        if len(default_on_callbacks_list) > 0:
             initialize_callbacks_on_proxy(
-                value=default_on_callbacks,
+                value=default_on_callbacks_list,
                 premium_user=premium_user,
                 config_file_path=config_file_path,
                 litellm_settings=litellm_settings,
diff --git a/litellm/tests/test_configs/test_guardrails_config.yaml b/litellm/tests/test_configs/test_guardrails_config.yaml
new file mode 100644
index 0000000000..f09ff9d1bc
--- /dev/null
+++ b/litellm/tests/test_configs/test_guardrails_config.yaml
@@ -0,0 +1,32 @@
+
+
+model_list:
+- litellm_params:
+    api_base: https://my-endpoint-europe-berri-992.openai.azure.com/
+    api_key: os.environ/AZURE_EUROPE_API_KEY
+    model: azure/gpt-35-turbo
+  model_name: azure-model
+- litellm_params:
+    api_base: https://my-endpoint-canada-berri992.openai.azure.com
+    api_key: os.environ/AZURE_CANADA_API_KEY
+    model: azure/gpt-35-turbo
+  model_name: azure-model
+- litellm_params:
+    api_base: https://openai-france-1234.openai.azure.com
+    api_key: os.environ/AZURE_FRANCE_API_KEY
+    model: azure/gpt-turbo
+  model_name: azure-model
+
+
+
+litellm_settings:
+  guardrails:
+    - prompt_injection:
+        callbacks: [lakera_prompt_injection, detect_prompt_injection]
+        default_on: true
+    - hide_secrets:
+        callbacks: [hide_secrets]
+        default_on: true
+    - moderations:
+        callbacks: [openai_moderations]
+        default_on: false
\ No newline at end of file
diff --git a/litellm/tests/test_proxy_setting_guardrails.py b/litellm/tests/test_proxy_setting_guardrails.py
new file mode 100644
index 0000000000..048951da0a
--- /dev/null
+++ b/litellm/tests/test_proxy_setting_guardrails.py
@@ -0,0 +1,69 @@
+import json
+import os
+import sys
+from unittest import mock
+
+from dotenv import load_dotenv
+
+load_dotenv()
+import asyncio
+import io
+import os
+
+sys.path.insert(
+    0, os.path.abspath("../..")
+)  # Adds the parent directory to the system path
+import openai
+import pytest
+from fastapi import Response
+from fastapi.testclient import TestClient
+
+import litellm
+from litellm.proxy.proxy_server import (  # Replace with the actual module where your FastAPI router is defined
+    initialize,
+    router,
+    save_worker_config,
+)
+
+
+@pytest.fixture
+def client():
+    filepath = os.path.dirname(os.path.abspath(__file__))
+    config_fp = f"{filepath}/test_configs/test_guardrails_config.yaml"
+    asyncio.run(initialize(config=config_fp))
+    from litellm.proxy.proxy_server import app
+
+    return TestClient(app)
+
+
+# raise openai.AuthenticationError
+def test_active_callbacks(client):
+    response = client.get("/active/callbacks")
+
+    print("response", response)
+    print("response.text", response.text)
+    print("response.status_code", response.status_code)
+
+    json_response = response.json()
+    _active_callbacks = json_response["litellm.callbacks"]
+
+    expected_callback_names = [
+        "_ENTERPRISE_lakeraAI_Moderation",
+        "_OPTIONAL_PromptInjectionDetectio",
+        "_ENTERPRISE_SecretDetection",
+    ]
+
+    for callback_name in expected_callback_names:
+        # check if any of the callbacks have callback_name as a substring
+        found_match = False
+        for callback in _active_callbacks:
+            if callback_name in callback:
+                found_match = True
+                break
+        assert (
+            found_match is True
+        ), f"{callback_name} not found in _active_callbacks={_active_callbacks}"
+
+    assert not any(
+        "_ENTERPRISE_OpenAI_Moderation" in callback for callback in _active_callbacks
+    ), f"_ENTERPRISE_OpenAI_Moderation should not be in _active_callbacks={_active_callbacks}"