diff --git a/litellm/proxy/common_utils/init_callbacks.py b/litellm/proxy/common_utils/init_callbacks.py
index 9631bcad45..a54260d8d1 100644
--- a/litellm/proxy/common_utils/init_callbacks.py
+++ b/litellm/proxy/common_utils/init_callbacks.py
@@ -35,6 +35,10 @@ def initialize_callbacks_on_proxy(
 
                 open_telemetry_logger = OpenTelemetry()
 
+                # Add Otel as a service callback
+                if "otel" not in litellm.service_callback:
+                    litellm.service_callback.append("otel")
+
                 imported_list.append(open_telemetry_logger)
                 setattr(proxy_server, "open_telemetry_logger", open_telemetry_logger)
             elif isinstance(callback, str) and callback == "presidio":
diff --git a/litellm/proxy/proxy_config.yaml b/litellm/proxy/proxy_config.yaml
index e580b3548c..964a7a065f 100644
--- a/litellm/proxy/proxy_config.yaml
+++ b/litellm/proxy/proxy_config.yaml
@@ -35,6 +35,8 @@ general_settings:
         LANGFUSE_SECRET_KEY: "os.environ/LANGFUSE_DEV_SK_KEY"
 
 litellm_settings:
+  cache: true
+  callbacks: ["otel"]
   guardrails:
     - prompt_injection:
         callbacks: [lakera_prompt_injection, hide_secrets]