diff --git a/litellm/proxy/_types.py b/litellm/proxy/_types.py
index e4eb4a06c8..27d7a2ad81 100644
--- a/litellm/proxy/_types.py
+++ b/litellm/proxy/_types.py
@@ -1871,11 +1871,9 @@ class AddTeamCallback(LiteLLMPydanticObjectBase):
                 raise ValueError(
                     f"Invalid callback variable: {key}. Must be one of {valid_keys}"
                 )
-            if not isinstance(value, str):
-                callback_vars[key] = str(value)
-                value = callback_vars[key]
+            callback_vars[key] = str(value)
             validate_no_callback_env_reference(
-                key, value, source="key/team callback metadata"
+                key, callback_vars[key], source="key/team callback metadata"
             )
         return values
 
diff --git a/litellm/proxy/litellm_pre_call_utils.py b/litellm/proxy/litellm_pre_call_utils.py
index c3e3c7716a..ceadf82379 100644
--- a/litellm/proxy/litellm_pre_call_utils.py
+++ b/litellm/proxy/litellm_pre_call_utils.py
@@ -233,6 +233,20 @@ def convert_key_logging_metadata_to_callback(
     return team_callback_settings_obj
 
 
+def _get_validated_callback_metadata(
+    item: dict, *, source: str
+) -> Optional[AddTeamCallback]:
+    try:
+        return AddTeamCallback(**item)
+    except ValueError as e:
+        verbose_proxy_logger.warning(
+            "Ignoring invalid %s callback metadata: %s",
+            source,
+            _sanitize_for_log(str(e)),
+        )
+        return None
+
+
 class KeyAndTeamLoggingSettings:
     """
     Helper class to get the dynamic logging settings for the key and team
@@ -272,8 +286,11 @@ def _get_dynamic_logging_metadata(
     #########################################################################################
     if key_dynamic_logging_settings is not None:
         for item in key_dynamic_logging_settings:
+            callback = _get_validated_callback_metadata(item=item, source="key-level")
+            if callback is None:
+                continue
             callback_settings_obj = convert_key_logging_metadata_to_callback(
-                data=AddTeamCallback(**item),
+                data=callback,
                 team_callback_settings_obj=callback_settings_obj,
             )
     #########################################################################################
@@ -281,8 +298,11 @@ def _get_dynamic_logging_metadata(
     #########################################################################################
     elif team_dynamic_logging_settings is not None:
         for item in team_dynamic_logging_settings:
+            callback = _get_validated_callback_metadata(item=item, source="team-level")
+            if callback is None:
+                continue
             callback_settings_obj = convert_key_logging_metadata_to_callback(
-                data=AddTeamCallback(**item),
+                data=callback,
                 team_callback_settings_obj=callback_settings_obj,
             )
     #########################################################################################
diff --git a/tests/proxy_unit_tests/test_proxy_utils.py b/tests/proxy_unit_tests/test_proxy_utils.py
index 1fa3a021d7..3332e77f2d 100644
--- a/tests/proxy_unit_tests/test_proxy_utils.py
+++ b/tests/proxy_unit_tests/test_proxy_utils.py
@@ -309,10 +309,15 @@ def test_dynamic_logging_metadata_key_and_team_metadata(callback_vars):
         assert "os.environ" not in var
 
 
-def test_dynamic_logging_metadata_rejects_env_references_from_key_metadata(
+def test_dynamic_logging_metadata_ignores_env_references_from_key_metadata(
     monkeypatch,
 ):
     monkeypatch.setenv("LANGFUSE_SECRET_KEY_TEMP", "server-side-secret")
+    monkeypatch.setattr(
+        litellm.utils,
+        "get_secret",
+        lambda *args, **kwargs: pytest.fail("get_secret should not be called"),
+    )
     from litellm.proxy.proxy_server import ProxyConfig
 
     proxy_config = ProxyConfig()
@@ -332,13 +337,11 @@ def test_dynamic_logging_metadata_rejects_env_references_from_key_metadata(
         team_metadata={},
     )
 
-    with pytest.raises(ValueError) as exc_info:
-        _get_dynamic_logging_metadata(
-            user_api_key_dict=user_api_key_dict, proxy_config=proxy_config
-        )
+    callbacks = _get_dynamic_logging_metadata(
+        user_api_key_dict=user_api_key_dict, proxy_config=proxy_config
+    )
 
-    assert "os.environ/" in str(exc_info.value)
-    assert "server-side-secret" not in str(exc_info.value)
+    assert callbacks is None
 
 
 @pytest.mark.parametrize(
diff --git a/tests/test_litellm/proxy/test_litellm_pre_call_utils.py b/tests/test_litellm/proxy/test_litellm_pre_call_utils.py
index d971a884ee..543be7948f 100644
--- a/tests/test_litellm/proxy/test_litellm_pre_call_utils.py
+++ b/tests/test_litellm/proxy/test_litellm_pre_call_utils.py
@@ -10,7 +10,7 @@ from fastapi import Request
 from starlette.datastructures import Headers
 
 import litellm
-from litellm.proxy._types import TeamCallbackMetadata, UserAPIKeyAuth
+from litellm.proxy._types import AddTeamCallback, TeamCallbackMetadata, UserAPIKeyAuth
 from litellm.proxy.litellm_pre_call_utils import (
     KeyAndTeamLoggingSettings,
     LiteLLMProxyRequestSetup,
@@ -1274,10 +1274,28 @@ def test_get_dynamic_logging_metadata_with_arize_team_logging():
     assert result.callback_vars["arize_space_id"] == "test_arize_space_id"
 
 
-def test_get_dynamic_logging_metadata_rejects_env_reference_from_key_metadata(
+def test_add_team_callback_rejects_env_reference():
+    with pytest.raises(ValueError) as exc_info:
+        AddTeamCallback(
+            callback_name="langfuse",
+            callback_type="success",
+            callback_vars={
+                "langfuse_secret_key": "os.environ/LANGFUSE_SECRET_KEY_TEMP"
+            },
+        )
+
+    assert "os.environ/" in str(exc_info.value)
+
+
+def test_get_dynamic_logging_metadata_ignores_env_reference_from_key_metadata(
     monkeypatch,
 ):
     monkeypatch.setenv("LANGFUSE_SECRET_KEY_TEMP", "server-side-secret")
+    monkeypatch.setattr(
+        litellm.utils,
+        "get_secret",
+        lambda *args, **kwargs: pytest.fail("get_secret should not be called"),
+    )
     user_api_key_dict = UserAPIKeyAuth(
         api_key="test-key",
         metadata={
@@ -1294,13 +1312,11 @@ def test_get_dynamic_logging_metadata_rejects_env_reference_from_key_metadata(
         team_metadata={},
     )
 
-    with pytest.raises(ValueError) as exc_info:
-        _get_dynamic_logging_metadata(
-            user_api_key_dict=user_api_key_dict, proxy_config=MagicMock()
-        )
+    result = _get_dynamic_logging_metadata(
+        user_api_key_dict=user_api_key_dict, proxy_config=MagicMock()
+    )
 
-    assert "os.environ/" in str(exc_info.value)
-    assert "server-side-secret" not in str(exc_info.value)
+    assert result is None
 
 
 def test_get_num_retries_from_request():