diff --git a/litellm/proxy/proxy_server.py b/litellm/proxy/proxy_server.py
index 353c3157db..c81416033d 100644
--- a/litellm/proxy/proxy_server.py
+++ b/litellm/proxy/proxy_server.py
@@ -1330,11 +1330,7 @@ async def startup_event():
         verbose_proxy_logger.debug(f"custom_db_client connecting - {custom_db_client}")
         await custom_db_client.connect()
 
-    if prisma_client is not None:
-        if master_key is None:
-            raise ValueError(
-                "Using Proxy Auth, but Master Key not set, please set `LITELLM_MASTER_KEY` in your environment or `master_key` in your config.yaml"
-            )
+    if prisma_client is not None and master_key is not None:
         # add master key to db
         await generate_key_helper_fn(
             duration=None, models=[], aliases={}, config={}, spend=0, token=master_key
@@ -1342,11 +1338,7 @@ async def startup_event():
     verbose_proxy_logger.debug(
         f"custom_db_client client - Inserting master key {custom_db_client}. Master_key: {master_key}"
     )
-    if custom_db_client is not None:
-        if master_key is None:
-            raise ValueError(
-                "Using Proxy Auth, but Master Key not set, please set `LITELLM_MASTER_KEY` in your environment or `master_key` in your config.yaml"
-            )
+    if custom_db_client is not None and master_key is not None:
         # add master key to db
         await generate_key_helper_fn(
             duration=None, models=[], aliases={}, config={}, spend=0, token=master_key
diff --git a/litellm/tests/test_proxy_startup.py b/litellm/tests/test_proxy_startup.py
index 33e317ccf8..650e2f8a7a 100644
--- a/litellm/tests/test_proxy_startup.py
+++ b/litellm/tests/test_proxy_startup.py
@@ -24,14 +24,7 @@ from litellm.proxy.proxy_server import (
 )
 
 
-@pytest.fixture
-def cleanup_router_config():
-    from litellm.proxy.proxy_server import cleanup_router_config_variables
-
-    cleanup_router_config_variables()
-
-
-def test_proxy_gunicorn_startup_direct_config(cleanup_router_config):
+def test_proxy_gunicorn_startup_direct_config():
     """
     gunicorn startup requires the config to be passed in via environment variables
 
@@ -53,7 +46,7 @@ def test_proxy_gunicorn_startup_direct_config(cleanup_router_config):
             pytest.fail(f"An exception occurred - {str(e)}")
 
 
-def test_proxy_gunicorn_startup_config_dict(cleanup_router_config):
+def test_proxy_gunicorn_startup_config_dict():
     try:
         filepath = os.path.dirname(os.path.abspath(__file__))
         # test with worker_config = config yaml