diff --git a/litellm/tests/test_key_generate_prisma.py b/litellm/tests/test_key_generate_prisma.py
index 004aef63a..3f844335b 100644
--- a/litellm/tests/test_key_generate_prisma.py
+++ b/litellm/tests/test_key_generate_prisma.py
@@ -33,6 +33,7 @@ import pytest, logging, asyncio
 import litellm, asyncio
 from litellm.proxy.proxy_server import (
     new_user,
+    generate_key_fn,
     user_api_key_auth,
     user_update,
     delete_key_fn,
@@ -49,6 +50,7 @@ from litellm.proxy._types import (
     DynamoDBArgs,
     DeleteKeyRequest,
     UpdateKeyRequest,
+    GenerateKeyRequest,
 )
 from litellm.proxy.utils import DBClient
 from starlette.datastructures import URL
@@ -593,3 +595,82 @@ def test_generate_and_update_key(prisma_client):
         print("Got Exception", e)
         print(e.detail)
         pytest.fail(f"An exception occurred - {str(e)}")
+
+
+def test_key_generate_with_custom_auth(prisma_client):
+    # custom - generate key function
+    async def custom_generate_key_fn(data: GenerateKeyRequest):
+        """
+        Asynchronously decides if a key should be generated or not based on the provided data.
+
+        Args:
+            data (GenerateKeyRequest): The data to be used for decision making.
+
+        Returns:
+            bool: True if a key should be generated, False otherwise.
+        """
+        # decide if a key should be generated or not
+        print("using custom auth function!")
+        data_json = data.json()  # type: ignore
+
+        # Unpacking variables
+        team_id = data_json.get("team_id")
+        duration = data_json.get("duration")
+        models = data_json.get("models")
+        aliases = data_json.get("aliases")
+        config = data_json.get("config")
+        spend = data_json.get("spend")
+        user_id = data_json.get("user_id")
+        max_parallel_requests = data_json.get("max_parallel_requests")
+        metadata = data_json.get("metadata")
+        tpm_limit = data_json.get("tpm_limit")
+        rpm_limit = data_json.get("rpm_limit")
+
+        if team_id is not None and team_id == "litellm-core-infra@gmail.com":
+            # only team_id="litellm-core-infra@gmail.com" can make keys
+            return {
+                "decision": True,
+            }
+        else:
+            print("Failed custom auth")
+            return {
+                "decision": False,
+                "message": "This violates LiteLLM Proxy Rules. No team id provided.",
+            }
+
+    setattr(litellm.proxy.proxy_server, "prisma_client", prisma_client)
+    setattr(litellm.proxy.proxy_server, "master_key", "sk-1234")
+    setattr(
+        litellm.proxy.proxy_server, "user_custom_key_generate", custom_generate_key_fn
+    )
+    try:
+
+        async def test():
+            await litellm.proxy.proxy_server.prisma_client.connect()
+            try:
+                request = GenerateKeyRequest()
+                key = await generate_key_fn(request)
+                pytest.fail(f"Expected an exception. Got {key}")
+            except Exception as e:
+                # this should fail
+                print("Got Exception", e)
+                print(e.detail)
+                print("First request failed!. This is expected")
+                assert (
+                    "This violates LiteLLM Proxy Rules. No team id provided."
+                    in e.detail
+                )
+
+            request_2 = GenerateKeyRequest(
+                team_id="litellm-core-infra@gmail.com",
+            )
+
+            key = await generate_key_fn(request_2)
+            print(key)
+            generated_key = key.key
+
+        asyncio.run(test())
+    except Exception as e:
+        print("Got Exception", e)
+        print(e.detail)
+        pytest.fail(f"An exception occurred - {str(e)}")