diff --git a/litellm/proxy/proxy_server.py b/litellm/proxy/proxy_server.py
index 64d2c2a3a1..1f4174be61 100644
--- a/litellm/proxy/proxy_server.py
+++ b/litellm/proxy/proxy_server.py
@@ -2468,7 +2468,12 @@ class ProxyConfig:
                         raise Exception(
                             f"Invalid value set for upperbound_key_generate_params - value={value}"
                         )
-
+                elif key == "json_logs" and value is True:
+                    litellm.json_logs = True
+                    litellm._turn_on_json()
+                    verbose_proxy_logger.debug(
+                        f"{blue_color_code} Enabled JSON logging via config{reset_color_code}"
+                    )
                 else:
                     verbose_proxy_logger.debug(
                         f"{blue_color_code} setting litellm.{key}={value}{reset_color_code}"
diff --git a/tests/proxy_unit_tests/test_proxy_config_unit_test.py b/tests/proxy_unit_tests/test_proxy_config_unit_test.py
index a1586ab6bd..36cd08fa5f 100644
--- a/tests/proxy_unit_tests/test_proxy_config_unit_test.py
+++ b/tests/proxy_unit_tests/test_proxy_config_unit_test.py
@@ -264,3 +264,55 @@ def test_add_callbacks_invalid_input():
     # Cleanup
     litellm.success_callback = []
     litellm.failure_callback = []
+
+
+@pytest.mark.asyncio
+async def test_json_logs_calls_turn_on_json():
+    """
+    Test that json_logs: true in litellm_settings calls litellm._turn_on_json()
+
+    This is a regression test for the bug where json_logs in config file
+    would only set the attribute but not actually enable JSON logging.
+    See: https://github.com/BerriAI/litellm/issues/XXXX
+    """
+    import tempfile
+
+    import yaml
+
+    # Create a temporary config file with json_logs: true
+    config_content = {
+        "model_list": [
+            {
+                "model_name": "test-model",
+                "litellm_params": {"model": "openai/gpt-4", "api_key": "test-key"},
+            }
+        ],
+        "litellm_settings": {"json_logs": True},
+    }
+
+    with tempfile.NamedTemporaryFile(
+        mode="w", suffix=".yaml", delete=False
+    ) as temp_file:
+        yaml.dump(config_content, temp_file)
+        temp_file_path = temp_file.name
+
+    try:
+        proxy_config = ProxyConfig()
+
+        # Mock _turn_on_json to track if it gets called
+        with mock.patch("litellm._turn_on_json") as mock_turn_on_json:
+            await proxy_config.load_config(
+                router=None,
+                config_file_path=temp_file_path,
+            )
+
+            # Verify _turn_on_json was called
+            mock_turn_on_json.assert_called_once()
+
+        # Also verify the attribute was set
+        assert litellm.json_logs is True
+
+    finally:
+        # Cleanup
+        os.unlink(temp_file_path)
+        litellm.json_logs = False