diff --git a/tests/litellm/proxy/management_endpoints/test_key_management_endpoints.py b/tests/litellm/proxy/management_endpoints/test_key_management_endpoints.py
index 51bbbb49c4..c436e08901 100644
--- a/tests/litellm/proxy/management_endpoints/test_key_management_endpoints.py
+++ b/tests/litellm/proxy/management_endpoints/test_key_management_endpoints.py
@@ -46,3 +46,54 @@ async def test_list_keys():
     assert json.dumps({"team_id": {"not": "litellm-dashboard"}}) in json.dumps(
         where_condition
     )
+
+
+@pytest.mark.asyncio
+async def test_key_token_handling(monkeypatch):
+    """
+    Test that token handling in key generation follows the expected behavior:
+    1. token field should not equal key field
+    2. if token_id exists, it should equal token field
+    """
+    mock_prisma_client = AsyncMock()
+    mock_insert_data = AsyncMock(
+        return_value=MagicMock(token="hashed_token_123", litellm_budget_table=None)
+    )
+    mock_prisma_client.insert_data = mock_insert_data
+    mock_prisma_client.db = MagicMock()
+    mock_prisma_client.db.litellm_verificationtoken = MagicMock()
+    mock_prisma_client.db.litellm_verificationtoken.find_unique = AsyncMock(
+        return_value=None
+    )
+    mock_prisma_client.db.litellm_verificationtoken.find_many = AsyncMock(
+        return_value=[]
+    )
+    mock_prisma_client.db.litellm_verificationtoken.count = AsyncMock(return_value=0)
+    mock_prisma_client.db.litellm_verificationtoken.update = AsyncMock(
+        return_value=MagicMock(token="hashed_token_123", litellm_budget_table=None)
+    )
+
+    from litellm.proxy._types import GenerateKeyRequest, LitellmUserRoles
+    from litellm.proxy.auth.user_api_key_auth import UserAPIKeyAuth
+    from litellm.proxy.management_endpoints.key_management_endpoints import (
+        generate_key_fn,
+    )
+    from litellm.proxy.proxy_server import prisma_client
+
+    # Use monkeypatch to set the prisma_client
+    monkeypatch.setattr("litellm.proxy.proxy_server.prisma_client", mock_prisma_client)
+
+    # Test key generation
+    response = await generate_key_fn(
+        data=GenerateKeyRequest(),
+        user_api_key_dict=UserAPIKeyAuth(
+            user_role=LitellmUserRoles.PROXY_ADMIN, api_key="sk-1234", user_id="1234"
+        ),
+    )
+
+    # Verify token handling
+    assert response.key != response.token, "Token should not equal key"
+    if hasattr(response, "token_id"):
+        assert (
+            response.token == response.token_id
+        ), "Token should equal token_id if token_id exists"