diff --git a/tests/logging_callback_tests/test_unit_tests_init_callbacks.py b/tests/logging_callback_tests/test_unit_tests_init_callbacks.py
new file mode 100644
index 000000000..1382d0e78
--- /dev/null
+++ b/tests/logging_callback_tests/test_unit_tests_init_callbacks.py
@@ -0,0 +1,147 @@
+import json
+import os
+import sys
+from datetime import datetime
+from unittest.mock import AsyncMock
+
+from pydantic.main import Model
+
+sys.path.insert(
+    0, os.path.abspath("../..")
+)  # Adds the parent directory to the system-path
+
+from typing import Literal
+
+import pytest
+import litellm
+import asyncio
+import logging
+from litellm._logging import verbose_logger
+
+from litellm.integrations.lago import LagoLogger
+from litellm.integrations.openmeter import OpenMeterLogger
+from litellm.integrations.braintrust_logging import BraintrustLogger
+from litellm.integrations.galileo import GalileoObserve
+from litellm.integrations.langsmith import LangsmithLogger
+from litellm.integrations.literal_ai import LiteralAILogger
+from litellm.integrations.prometheus import PrometheusLogger
+from litellm.integrations.datadog.datadog import DataDogLogger
+from litellm.integrations.gcs_bucket.gcs_bucket import GCSBucketLogger
+from litellm.integrations.opik.opik import OpikLogger
+from litellm.integrations.opentelemetry import OpenTelemetry
+from litellm.integrations.argilla import ArgillaLogger
+from litellm.proxy.hooks.dynamic_rate_limiter import _PROXY_DynamicRateLimitHandler
+
+
+callback_class_str_to_classType = {
+    "lago": LagoLogger,
+    "openmeter": OpenMeterLogger,
+    "braintrust": BraintrustLogger,
+    "galileo": GalileoObserve,
+    "langsmith": LangsmithLogger,
+    "literalai": LiteralAILogger,
+    "prometheus": PrometheusLogger,
+    "datadog": DataDogLogger,
+    "gcs_bucket": GCSBucketLogger,
+    "opik": OpikLogger,
+    "argilla": ArgillaLogger,
+    "opentelemetry": OpenTelemetry,
+    # OTEL compatible loggers
+    "logfire": OpenTelemetry,
+    "arize": OpenTelemetry,
+    "langtrace": OpenTelemetry,
+}
+
+expected_env_vars = {
+    "LAGO_API_KEY": "api_key",
+    "LAGO_API_BASE": "mock_base",
+    "LAGO_API_EVENT_CODE": "mock_event_code",
+    "OPENMETER_API_KEY": "openmeter_api_key",
+    "BRAINTRUST_API_KEY": "braintrust_api_key",
+    "GALILEO_API_KEY": "galileo_api_key",
+    "LITERAL_API_KEY": "literal_api_key",
+    "DD_API_KEY": "datadog_api_key",
+    "DD_SITE": "datadog_site",
+    "GOOGLE_APPLICATION_CREDENTIALS": "gcs_credentials",
+    "OPIK_API_KEY": "opik_api_key",
+    "LANGTRACE_API_KEY": "langtrace_api_key",
+}
+
+
+def reset_all_callbacks():
+    litellm.callbacks = []
+    litellm.input_callback = []
+    litellm.success_callback = []
+    litellm.failure_callback = []
+    litellm._async_success_callback = []
+    litellm._async_failure_callback = []
+
+
+initial_env_vars = {}
+
+
+def init_env_vars():
+    for env_var, value in expected_env_vars.items():
+        if env_var not in os.environ:
+            os.environ[env_var] = value
+        else:
+            initial_env_vars[env_var] = os.environ[env_var]
+
+
+def reset_env_vars():
+    for env_var, value in initial_env_vars.items():
+        os.environ[env_var] = value
+
+
+all_callback_required_env_vars = []
+
+
+async def use_callback_in_llm_call(
+    callback: str, used_in: Literal["callbacks", "success_callback"]
+):
+    if callback == "dynamic_rate_limiter":
+        # internal CustomLogger class that expects internal_usage_cache passed to it, it always fails when tested in this way
+        return
+    elif callback == "argilla":
+        litellm.argilla_transformation_object = {}
+
+    if used_in == "callbacks":
+        litellm.callbacks = [callback]
+    elif used_in == "success_callback":
+        litellm.success_callback = [callback]
+
+    for _ in range(1):
+        await litellm.acompletion(
+            model="gpt-3.5-turbo",
+            messages=[{"role": "user", "content": "hi"}],
+            temperature=0.1,
+            mock_response="hello",
+        )
+
+        await asyncio.sleep(0.5)
+
+        expected_class = callback_class_str_to_classType[callback]
+
+        assert isinstance(litellm._async_success_callback[0], expected_class)
+        assert isinstance(litellm._async_failure_callback[0], expected_class)
+        assert isinstance(litellm.success_callback[0], expected_class)
+        assert isinstance(litellm.failure_callback[0], expected_class)
+
+        assert len(litellm._async_success_callback) == 1
+        assert len(litellm._async_failure_callback) == 1
+        assert len(litellm.success_callback) == 1
+        assert len(litellm.failure_callback) == 1
+        assert len(litellm.callbacks) == 1
+
+
+@pytest.mark.asyncio
+async def test_init_custom_logger_compatible_class_as_callback():
+    init_env_vars()
+
+    for callback in litellm._known_custom_logger_compatible_callbacks:
+        print(f"Testing callback: {callback}")
+        reset_all_callbacks()
+
+        await use_callback_in_llm_call(callback, used_in="callbacks")
+
+    reset_env_vars()