diff --git a/tests/litellm/test_init.py b/tests/litellm/test_init.py
new file mode 100644
index 0000000000..8119b4f214
--- /dev/null
+++ b/tests/litellm/test_init.py
@@ -0,0 +1,24 @@
+# tests/litellm/test_init.py
+
+import importlib
+import sys
+
+def test_api_key_from_env(monkeypatch):
+    monkeypatch.setenv("LITELLM_API_KEY", "mocked_key")
+
+    if "litellm" in sys.modules:
+        del sys.modules["litellm"]
+    import litellm
+    importlib.reload(litellm)
+
+    assert litellm.api_key == "mocked_key"
+
+def test_api_base_from_env(monkeypatch):
+    monkeypatch.setenv("LITELLM_API_BASE", "https://mocked-base.com")
+
+    if "litellm" in sys.modules:
+        del sys.modules["litellm"]
+    import litellm
+    importlib.reload(litellm)
+
+    assert litellm.api_base == "https://mocked-base.com"