diff --git a/litellm/responses/streaming_iterator.py b/litellm/responses/streaming_iterator.py
new file mode 100644
index 0000000000..ad3fa59b26
--- /dev/null
+++ b/litellm/responses/streaming_iterator.py
@@ -0,0 +1,98 @@
+import json
+from typing import Any, AsyncIterator, Dict, Optional, Union
+
+import httpx
+
+from litellm.litellm_core_utils.litellm_logging import Logging as LiteLLMLoggingObj
+from litellm.types.llms.openai import (
+    ResponsesAPIResponse,
+    ResponsesAPIStreamingResponse,
+)
+
+
+class ResponsesAPIStreamingIterator:
+    """
+    Async iterator for processing streaming responses from the Responses API.
+
+    This iterator handles the chunked streaming format returned by the Responses API
+    and yields properly formatted ResponsesAPIStreamingResponse objects.
+    """
+
+    def __init__(
+        self,
+        response: httpx.Response,
+        model: str,
+        logging_obj: Optional[LiteLLMLoggingObj] = None,
+    ):
+        self.response = response
+        self.model = model
+        self.logging_obj = logging_obj
+        self.stream_iterator = response.aiter_lines()
+        self.finished = False
+
+    def __aiter__(self):
+        return self
+
+    async def __anext__(self) -> ResponsesAPIStreamingResponse:
+        if self.finished:
+            raise StopAsyncIteration
+
+        try:
+            # Get the next chunk from the stream
+            try:
+                chunk = await self.stream_iterator.__anext__()
+            except StopAsyncIteration:
+                self.finished = True
+                raise StopAsyncIteration
+
+            if not chunk:
+                return await self.__anext__()
+
+            # Handle SSE format (data: {...})
+            if chunk.startswith("data: "):
+                chunk = chunk[6:]  # Remove "data: " prefix
+
+            # Handle "[DONE]" marker
+            if chunk == "[DONE]":
+                self.finished = True
+                raise StopAsyncIteration
+
+            try:
+                # Parse the JSON chunk
+                parsed_chunk = json.loads(chunk)
+
+                # Log the chunk if logging is enabled
+                if self.logging_obj:
+                    self.logging_obj.post_call(
+                        input="",
+                        api_key="",
+                        original_response=parsed_chunk,
+                        additional_args={
+                            "complete_streaming_chunk": parsed_chunk,
+                        },
+                    )
+
+                # Format as ResponsesAPIStreamingResponse
+                if isinstance(parsed_chunk, dict):
+                    # If the chunk already has a 'type' field, it's already in the right format
+                    if "type" in parsed_chunk:
+                        return ResponsesAPIStreamingResponse(**parsed_chunk)
+                    # Otherwise, wrap it as a response
+                    else:
+                        return ResponsesAPIStreamingResponse(
+                            type="response",
+                            response=ResponsesAPIResponse(**parsed_chunk),
+                        )
+
+                return ResponsesAPIStreamingResponse(
+                    type="response", response=parsed_chunk
+                )
+
+            except json.JSONDecodeError:
+                # If we can't parse the chunk, continue to the next one
+                return await self.__anext__()
+
+        except httpx.HTTPError as e:
+            # Handle HTTP errors
+            self.finished = True
+            raise e
diff --git a/tests/llm_responses_api_testing/test_openai_responses_api.py b/tests/llm_responses_api_testing/test_openai_responses_api.py
index 59024716d7..54464c0509 100644
--- a/tests/llm_responses_api_testing/test_openai_responses_api.py
+++ b/tests/llm_responses_api_testing/test_openai_responses_api.py
@@ -27,5 +27,5 @@ async def test_basic_openai_responses_api_streaming():
         stream=True,
     )
 
-    for event in response:
+    async for event in response:
         print("litellm response=", json.dumps(event, indent=4, default=str))