diff --git a/enterprise/enterprise_hooks/llm_guard.py b/enterprise/enterprise_hooks/llm_guard.py
index e6b2867e5..f368610cf 100644
--- a/enterprise/enterprise_hooks/llm_guard.py
+++ b/enterprise/enterprise_hooks/llm_guard.py
@@ -95,6 +95,21 @@ class _ENTERPRISE_LLMGuard(CustomLogger):
             traceback.print_exc()
             raise e
 
+    def should_proceed(self, user_api_key_dict: UserAPIKeyAuth) -> bool:
+        if self.llm_guard_mode == "key-specific":
+            # check if llm guard enabled for specific keys only
+            self.print_verbose(
+                f"user_api_key_dict.permissions: {user_api_key_dict.permissions}"
+            )
+            if (
+                user_api_key_dict.permissions.get("enable_llm_guard_check", False)
+                == True
+            ):
+                return True
+        elif self.llm_guard_mode == "all":
+            return True
+        return False
+
     async def async_moderation_hook(
         self,
         data: dict,
@@ -111,16 +126,10 @@ class _ENTERPRISE_LLMGuard(CustomLogger):
             f"Inside LLM Guard Pre-Call Hook - llm_guard_mode={self.llm_guard_mode}"
         )
 
-        # check if llm guard enabled for specific keys only
-        if self.llm_guard_mode == "key-specific":
-            self.print_verbose(
-                f"user_api_key_dict.permissions: {user_api_key_dict.permissions}"
-            )
-            if (
-                user_api_key_dict.permissions.get("enable_llm_guard_check", False)
-                == False
-            ):
-                return
+        _proceed = self.should_proceed(user_api_key_dict=user_api_key_dict)
+        if _proceed == False:
+            return
+
         self.print_verbose("Makes LLM Guard Check")
         try:
             assert call_type in [
diff --git a/litellm/tests/test_llm_guard.py b/litellm/tests/test_llm_guard.py
index c0f7b065f..73ccf2a19 100644
--- a/litellm/tests/test_llm_guard.py
+++ b/litellm/tests/test_llm_guard.py
@@ -25,7 +25,6 @@ from litellm.caching import DualCache
 ### UNIT TESTS FOR LLM GUARD ###
 
 
-#   Test if PII masking works with input A
 @pytest.mark.asyncio
 async def test_llm_guard_valid_response():
     """
@@ -60,7 +59,6 @@ async def test_llm_guard_valid_response():
         pytest.fail(f"An exception occurred - {str(e)}")
 
 
-#   Test if PII masking works with input B (also test if the response != A's response)
 @pytest.mark.asyncio
 async def test_llm_guard_error_raising():
     """
@@ -95,3 +93,31 @@ async def test_llm_guard_error_raising():
         pytest.fail(f"Should have failed - {str(e)}")
     except Exception as e:
         pass
+
+
+def test_llm_guard_key_specific_mode():
+    """
+    Tests to see if llm guard 'key-specific' permissions work
+    """
+    litellm.llm_guard_mode = "key-specific"
+
+    llm_guard = _ENTERPRISE_LLMGuard()
+
+    _api_key = "sk-12345"
+    # NOT ENABLED
+    user_api_key_dict = UserAPIKeyAuth(
+        api_key=_api_key,
+    )
+
+    should_proceed = llm_guard.should_proceed(user_api_key_dict=user_api_key_dict)
+
+    assert should_proceed == False
+
+    # ENABLED
+    user_api_key_dict = UserAPIKeyAuth(
+        api_key=_api_key, permissions={"enable_llm_guard_check": True}
+    )
+
+    should_proceed = llm_guard.should_proceed(user_api_key_dict=user_api_key_dict)
+
+    assert should_proceed == True