diff --git a/tests/litellm/proxy/test_proxy_server.py b/tests/litellm/proxy/test_proxy_server.py
new file mode 100644
index 0000000000..3f0a57e284
--- /dev/null
+++ b/tests/litellm/proxy/test_proxy_server.py
@@ -0,0 +1,74 @@
+import importlib
+import json
+import os
+import socket
+import subprocess
+import sys
+from unittest.mock import AsyncMock, MagicMock, mock_open, patch
+
+import click
+import httpx
+import pytest
+from fastapi import FastAPI
+from fastapi.testclient import TestClient
+
+sys.path.insert(
+    0, os.path.abspath("../../..")
+)  # Adds the parent directory to the system-path
+
+import litellm
+
+
+@pytest.mark.asyncio
+async def test_initialize_scheduled_jobs_credentials():
+    """
+    Test that get_credentials is only called when store_model_in_db is True
+    """
+    from litellm.proxy.proxy_server import ProxyStartupEvent
+    from litellm.proxy.utils import ProxyLogging
+
+    # Mock dependencies
+    mock_prisma_client = MagicMock()
+    mock_proxy_logging = MagicMock(spec=ProxyLogging)
+    mock_proxy_logging.slack_alerting_instance = MagicMock()
+    mock_proxy_config = AsyncMock()
+
+    with patch("litellm.proxy.proxy_server.proxy_config", mock_proxy_config), patch(
+        "litellm.proxy.proxy_server.store_model_in_db", False
+    ):  # set store_model_in_db to False
+
+        # Test when store_model_in_db is False
+        await ProxyStartupEvent.initialize_scheduled_background_jobs(
+            general_settings={},
+            prisma_client=mock_prisma_client,
+            proxy_budget_rescheduler_min_time=1,
+            proxy_budget_rescheduler_max_time=2,
+            proxy_batch_write_at=5,
+            proxy_logging_obj=mock_proxy_logging,
+        )
+
+        # Verify get_credentials was not called
+        mock_proxy_config.get_credentials.assert_not_called()
+
+    # Now test with store_model_in_db = True
+    with patch("litellm.proxy.proxy_server.proxy_config", mock_proxy_config), patch(
+        "litellm.proxy.proxy_server.store_model_in_db", True
+    ), patch("litellm.proxy.proxy_server.get_secret_bool", return_value=True):
+
+        await ProxyStartupEvent.initialize_scheduled_background_jobs(
+            general_settings={},
+            prisma_client=mock_prisma_client,
+            proxy_budget_rescheduler_min_time=1,
+            proxy_budget_rescheduler_max_time=2,
+            proxy_batch_write_at=5,
+            proxy_logging_obj=mock_proxy_logging,
+        )
+
+        # Verify get_credentials was called both directly and scheduled
+        assert mock_proxy_config.get_credentials.call_count == 1  # Direct call
+
+        # Verify a scheduled job was added for get_credentials
+        mock_scheduler_calls = [
+            call[0] for call in mock_proxy_config.get_credentials.mock_calls
+        ]
+        assert len(mock_scheduler_calls) > 0