diff --git a/litellm/secret_managers/aws_secret_manager_v2.py b/litellm/secret_managers/aws_secret_manager_v2.py
index 1011e15b7..da1894cad 100644
--- a/litellm/secret_managers/aws_secret_manager_v2.py
+++ b/litellm/secret_managers/aws_secret_manager_v2.py
@@ -25,6 +25,7 @@ from typing import Any, Dict, Optional, Union
 import httpx
 
 import litellm
+from litellm._logging import verbose_logger
 from litellm.llms.base_aws_llm import BaseAWSLLM
 from litellm.llms.custom_httpx.http_handler import get_async_httpx_client
 from litellm.llms.custom_httpx.types import httpxSpecialProvider
@@ -59,9 +60,14 @@ class AWSSecretsManagerV2(BaseAWSLLM):
         secret_name: str,
         optional_params: Optional[dict] = None,
         timeout: Optional[Union[float, httpx.Timeout]] = None,
-    ) -> str:
+    ) -> Optional[str]:
         """
         Async function to read a secret from AWS Secrets Manager
+
+        Returns:
+            str: Secret value
+        Raises:
+            ValueError: If the secret is not found or an HTTP error occurs
         """
         endpoint_url, headers, body = self._prepare_request(
             action="GetSecretValue",
@@ -80,10 +86,13 @@ class AWSSecretsManagerV2(BaseAWSLLM):
             )
             response.raise_for_status()
             return response.json()["SecretString"]
-        except httpx.HTTPStatusError as err:
-            raise ValueError(f"HTTP error occurred: {err.response.text}")
         except httpx.TimeoutException:
             raise ValueError("Timeout error occurred")
+        except Exception as e:
+            verbose_logger.exception(
+                "Error reading secret from AWS Secrets Manager: %s", str(e)
+            )
+        return None
 
     async def async_write_secret(
         self,
diff --git a/tests/proxy_unit_tests/test_key_generate_prisma.py b/tests/proxy_unit_tests/test_key_generate_prisma.py
index 78b558cd2..b97ab3514 100644
--- a/tests/proxy_unit_tests/test_key_generate_prisma.py
+++ b/tests/proxy_unit_tests/test_key_generate_prisma.py
@@ -3451,3 +3451,90 @@ async def test_user_api_key_auth_db_unavailable_not_allowed():
             request=request,
             api_key="Bearer sk-123456789",
         )
+
+
+## E2E Virtual Key + Secret Manager Tests #########################################
+
+
+@pytest.mark.asyncio
+async def test_key_generate_with_secret_manager_call(prisma_client):
+    """
+    Generate a key
+    assert it exists in the secret manager
+
+    delete the key
+    assert it is deleted from the secret manager
+    """
+    from litellm.secret_managers.aws_secret_manager_v2 import AWSSecretsManagerV2
+    from litellm.proxy._types import KeyManagementSystem, KeyManagementSettings
+
+    litellm.set_verbose = True
+
+    #### Test Setup ############################################################
+    aws_secret_manager_client = AWSSecretsManagerV2()
+    litellm.secret_manager_client = aws_secret_manager_client
+    litellm._key_management_system = KeyManagementSystem.AWS_SECRET_MANAGER
+    litellm._key_management_settings = KeyManagementSettings(
+        store_virtual_keys=True,
+    )
+    general_settings = {
+        "key_management_system": "aws_secret_manager",
+        "key_management_settings": {
+            "store_virtual_keys": True,
+        },
+    }
+
+    setattr(litellm.proxy.proxy_server, "general_settings", general_settings)
+    setattr(litellm.proxy.proxy_server, "master_key", "sk-1234")
+    setattr(litellm.proxy.proxy_server, "prisma_client", prisma_client)
+    await litellm.proxy.proxy_server.prisma_client.connect()
+    ############################################################################
+
+    # generate new key
+    key_alias = f"test_alias_secret_manager_key-{uuid.uuid4()}"
+    spend = 100
+    max_budget = 400
+    models = ["fake-openai-endpoint"]
+    new_key = await generate_key_fn(
+        data=GenerateKeyRequest(
+            key_alias=key_alias, spend=spend, max_budget=max_budget, models=models
+        ),
+        user_api_key_dict=UserAPIKeyAuth(
+            user_role=LitellmUserRoles.PROXY_ADMIN,
+            api_key="sk-1234",
+            user_id="1234",
+        ),
+    )
+
+    generated_key = new_key.key
+    print(generated_key)
+
+    await asyncio.sleep(2)
+
+    # read from the secret manager
+    result = await aws_secret_manager_client.async_read_secret(secret_name=key_alias)
+
+    # Assert the correct key is stored in the secret manager
+    print("response from AWS Secret Manager")
+    print(result)
+    assert result == generated_key
+
+    # delete the key
+    await delete_key_fn(
+        data=KeyRequest(keys=[generated_key]),
+        user_api_key_dict=UserAPIKeyAuth(
+            user_role=LitellmUserRoles.PROXY_ADMIN, api_key="sk-1234", user_id="1234"
+        ),
+    )
+
+    await asyncio.sleep(2)
+
+    # Assert the key is deleted from the secret manager
+    result = await aws_secret_manager_client.async_read_secret(secret_name=key_alias)
+    assert result is None
+
+    # cleanup
+    setattr(litellm.proxy.proxy_server, "general_settings", {})
+
+
+################################################################################