diff --git a/litellm/proxy/utils.py b/litellm/proxy/utils.py
index 2145d1226..8a8494ce4 100644
--- a/litellm/proxy/utils.py
+++ b/litellm/proxy/utils.py
@@ -600,12 +600,41 @@ class ProxyLogging:
                 )
 
             if litellm_logging_obj is not None:
+                ## UPDATE LOGGING INPUT
+                _optional_params = {}
+                for k, v in request_data.items():
+                    if k != "model" and k != "user" and k != "litellm_params":
+                        _optional_params[k] = v
+                litellm_logging_obj.update_environment_variables(
+                    model=request_data.get("model", ""),
+                    user=request_data.get("user", ""),
+                    optional_params=_optional_params,
+                    litellm_params=request_data.get("litellm_params", {}),
+                )
+
+                input: Union[list, str, dict] = ""
+                if "messages" in request_data and isinstance(
+                    request_data["messages"], list
+                ):
+                    input = request_data["messages"]
+                elif "prompt" in request_data and isinstance(
+                    request_data["prompt"], str
+                ):
+                    input = request_data["prompt"]
+                elif "input" in request_data and isinstance(
+                    request_data["input"], list
+                ):
+                    input = request_data["input"]
+
+                litellm_logging_obj.pre_call(
+                    input=input,
+                    api_key="",
+                )
+
                 # log the custom exception
                 await litellm_logging_obj.async_failure_handler(
                     exception=original_exception,
                     traceback_exception=traceback.format_exc(),
-                    start_time=time.time(),
-                    end_time=time.time(),
                 )
 
                 threading.Thread(
@@ -613,8 +642,6 @@ class ProxyLogging:
                     args=(
                         original_exception,
                         traceback.format_exc(),
-                        time.time(),
-                        time.time(),
                     ),
                 ).start()
 
diff --git a/litellm/tests/test_proxy_server.py b/litellm/tests/test_proxy_server.py
index d8bfb5229..ed7451c27 100644
--- a/litellm/tests/test_proxy_server.py
+++ b/litellm/tests/test_proxy_server.py
@@ -1,20 +1,29 @@
-import sys, os
+import os
+import sys
 import traceback
 from unittest import mock
+
 from dotenv import load_dotenv
 
+import litellm.proxy
+import litellm.proxy.proxy_server
+
 load_dotenv()
-import os, io
+import io
+import os
 
 # this file is to test litellm/proxy
 
 sys.path.insert(
     0, os.path.abspath("../..")
 )  # Adds the parent directory to the system path
-import pytest, logging, asyncio
+import asyncio
+import logging
+
+import pytest
+
 import litellm
-from litellm import embedding, completion, completion_cost, Timeout
-from litellm import RateLimitError
+from litellm import RateLimitError, Timeout, completion, completion_cost, embedding
 
 # Configure logging
 logging.basicConfig(
@@ -22,14 +31,20 @@ logging.basicConfig(
     format="%(asctime)s - %(levelname)s - %(message)s",
 )
 
+from unittest.mock import AsyncMock, MagicMock, patch
+
+from fastapi import FastAPI
+
 # test /chat/completion request to the proxy
 from fastapi.testclient import TestClient
-from fastapi import FastAPI
-from litellm.proxy.proxy_server import (
+
+from litellm.integrations.custom_logger import CustomLogger
+from litellm.proxy.proxy_server import (  # Replace with the actual module where your FastAPI router is defined
     app,
-    save_worker_config,
     initialize,
-)  # Replace with the actual module where your FastAPI router is defined
+    save_worker_config,
+)
+from litellm.proxy.utils import ProxyLogging
 
 # Your bearer token
 token = "sk-1234"
@@ -158,6 +173,61 @@ def test_chat_completion(mock_acompletion, client_no_auth):
         pytest.fail(f"LiteLLM Proxy test failed. Exception - {str(e)}")
 
 
+from litellm.tests.test_custom_callback_input import CompletionCustomHandler
+
+
+@mock_patch_acompletion()
+def test_custom_logger_failure_handler(mock_acompletion, client_no_auth):
+    from litellm.proxy._types import UserAPIKeyAuth
+    from litellm.proxy.proxy_server import hash_token, user_api_key_cache
+
+    rpm_limit = 0
+
+    mock_api_key = "sk-my-test-key"
+    cache_value = UserAPIKeyAuth(token=hash_token(mock_api_key), rpm_limit=rpm_limit)
+
+    user_api_key_cache.set_cache(key=hash_token(mock_api_key), value=cache_value)
+
+    mock_logger = CustomLogger()
+    mock_logger_unit_tests = CompletionCustomHandler()
+    proxy_logging_obj: ProxyLogging = getattr(
+        litellm.proxy.proxy_server, "proxy_logging_obj"
+    )
+
+    litellm.callbacks = [mock_logger, mock_logger_unit_tests]
+    proxy_logging_obj._init_litellm_callbacks(llm_router=None)
+
+    setattr(litellm.proxy.proxy_server, "user_api_key_cache", user_api_key_cache)
+    setattr(litellm.proxy.proxy_server, "master_key", "sk-1234")
+    setattr(litellm.proxy.proxy_server, "prisma_client", "FAKE-VAR")
+    setattr(litellm.proxy.proxy_server, "proxy_logging_obj", proxy_logging_obj)
+
+    with patch.object(
+        mock_logger, "async_log_failure_event", new=AsyncMock()
+    ) as mock_failed_alert:
+        # Your test data
+        test_data = {
+            "model": "gpt-3.5-turbo",
+            "messages": [
+                {"role": "user", "content": "hi"},
+            ],
+            "max_tokens": 10,
+        }
+
+        print("testing proxy server with chat completions")
+        response = client_no_auth.post(
+            "/v1/chat/completions",
+            json=test_data,
+            headers={"Authorization": "Bearer {}".format(mock_api_key)},
+        )
+        assert response.status_code == 429
+
+        # confirm async_log_failure_event is called
+        mock_failed_alert.assert_called()
+
+        assert len(mock_logger_unit_tests.errors) == 0
+
+
 @mock_patch_acompletion()
 def test_engines_model_chat_completions(mock_acompletion, client_no_auth):
     global headers
@@ -422,9 +492,10 @@ def test_add_new_model(client_no_auth):
 
 def test_health(client_no_auth):
     global headers
-    import time
-    from litellm._logging import verbose_logger, verbose_proxy_logger
     import logging
+    import time
+
+    from litellm._logging import verbose_logger, verbose_proxy_logger
 
     verbose_proxy_logger.setLevel(logging.DEBUG)