diff --git a/litellm/litellm_core_utils/streaming_handler.py b/litellm/litellm_core_utils/streaming_handler.py
index 2c7af8d5ba..5d5a8bf256 100644
--- a/litellm/litellm_core_utils/streaming_handler.py
+++ b/litellm/litellm_core_utils/streaming_handler.py
@@ -637,7 +637,10 @@ class CustomStreamWrapper:
                 if isinstance(chunk, bytes):
                     chunk = chunk.decode("utf-8")
                 if "text_output" in chunk:
-                    response = chunk.replace("data: ", "").strip()
+                    response = (
+                        CustomStreamWrapper._strip_sse_data_from_chunk(chunk) or ""
+                    )
+                    response = response.strip()
                     parsed_response = json.loads(response)
                 else:
                     return {
@@ -1828,6 +1831,42 @@ class CustomStreamWrapper:
                 extra_kwargs={},
             )
 
+    @staticmethod
+    def _strip_sse_data_from_chunk(chunk: Optional[str]) -> Optional[str]:
+        """
+        Strips the 'data: ' prefix from Server-Sent Events (SSE) chunks.
+
+        Some providers like sagemaker send it as `data:`, need to handle both
+
+        SSE messages are prefixed with 'data: ' which is part of the protocol,
+        not the actual content from the LLM. This method removes that prefix
+        and returns the actual content.
+
+        Args:
+            chunk: The SSE chunk that may contain the 'data: ' prefix (string or bytes)
+
+        Returns:
+            The chunk with the 'data: ' prefix removed, or the original chunk
+            if no prefix was found. Returns None if input is None.
+
+        See OpenAI Python Ref for this: https://github.com/openai/openai-python/blob/041bf5a8ec54da19aad0169671793c2078bd6173/openai/api_requestor.py#L100
+        """
+        if chunk is None:
+            return None
+
+        if isinstance(chunk, str):
+            # OpenAI sends `data: `
+            if chunk.startswith("data: "):
+                # Strip the prefix and any leading whitespace that might follow it
+                _length_of_sse_data_prefix = len("data: ")
+                return chunk[_length_of_sse_data_prefix:]
+            elif chunk.startswith("data:"):
+                # Sagemaker sends `data:`, no trailing whitespace
+                _length_of_sse_data_prefix = len("data:")
+                return chunk[_length_of_sse_data_prefix:]
+
+        return chunk
+
 
 def calculate_total_usage(chunks: List[ModelResponse]) -> Usage:
     """Assume most recent usage chunk has total usage uptil then."""
diff --git a/litellm/llms/codestral/completion/transformation.py b/litellm/llms/codestral/completion/transformation.py
index 84551cd553..5955e91deb 100644
--- a/litellm/llms/codestral/completion/transformation.py
+++ b/litellm/llms/codestral/completion/transformation.py
@@ -84,7 +84,9 @@ class CodestralTextCompletionConfig(OpenAITextCompletionConfig):
         finish_reason = None
         logprobs = None
 
-        chunk_data = chunk_data.replace("data:", "")
+        chunk_data = (
+            litellm.CustomStreamWrapper._strip_sse_data_from_chunk(chunk_data) or ""
+        )
         chunk_data = chunk_data.strip()
         if len(chunk_data) == 0 or chunk_data == "[DONE]":
             return {
diff --git a/litellm/llms/databricks/streaming_utils.py b/litellm/llms/databricks/streaming_utils.py
index 0deaa06988..2db53df908 100644
--- a/litellm/llms/databricks/streaming_utils.py
+++ b/litellm/llms/databricks/streaming_utils.py
@@ -89,7 +89,7 @@ class ModelResponseIterator:
             raise RuntimeError(f"Error receiving chunk from stream: {e}")
 
         try:
-            chunk = chunk.replace("data:", "")
+            chunk = litellm.CustomStreamWrapper._strip_sse_data_from_chunk(chunk) or ""
             chunk = chunk.strip()
             if len(chunk) > 0:
                 json_chunk = json.loads(chunk)
@@ -134,7 +134,7 @@ class ModelResponseIterator:
             raise RuntimeError(f"Error receiving chunk from stream: {e}")
 
         try:
-            chunk = chunk.replace("data:", "")
+            chunk = litellm.CustomStreamWrapper._strip_sse_data_from_chunk(chunk) or ""
             chunk = chunk.strip()
             if chunk == "[DONE]":
                 raise StopAsyncIteration
diff --git a/litellm/llms/sagemaker/common_utils.py b/litellm/llms/sagemaker/common_utils.py
index 49e4989ff1..9884f420c3 100644
--- a/litellm/llms/sagemaker/common_utils.py
+++ b/litellm/llms/sagemaker/common_utils.py
@@ -3,6 +3,7 @@ from typing import AsyncIterator, Iterator, List, Optional, Union
 
 import httpx
 
+import litellm
 from litellm import verbose_logger
 from litellm.llms.base_llm.chat.transformation import BaseLLMException
 from litellm.types.utils import GenericStreamingChunk as GChunk
@@ -78,7 +79,11 @@ class AWSEventStreamDecoder:
                 message = self._parse_message_from_event(event)
                 if message:
                     # remove data: prefix and "\n\n" at the end
-                    message = message.replace("data:", "").replace("\n\n", "")
+                    message = (
+                        litellm.CustomStreamWrapper._strip_sse_data_from_chunk(message)
+                        or ""
+                    )
+                    message = message.replace("\n\n", "")
 
                     # Accumulate JSON data
                     accumulated_json += message
@@ -127,7 +132,11 @@ class AWSEventStreamDecoder:
                 if message:
                     verbose_logger.debug("sagemaker  parsed chunk bytes %s", message)
                     # remove data: prefix and "\n\n" at the end
-                    message = message.replace("data:", "").replace("\n\n", "")
+                    message = (
+                        litellm.CustomStreamWrapper._strip_sse_data_from_chunk(message)
+                        or ""
+                    )
+                    message = message.replace("\n\n", "")
 
                     # Accumulate JSON data
                     accumulated_json += message
diff --git a/litellm/llms/vertex_ai/gemini/vertex_and_google_ai_studio_gemini.py b/litellm/llms/vertex_ai/gemini/vertex_and_google_ai_studio_gemini.py
index 20f9c9da47..294939a3c5 100644
--- a/litellm/llms/vertex_ai/gemini/vertex_and_google_ai_studio_gemini.py
+++ b/litellm/llms/vertex_ai/gemini/vertex_and_google_ai_studio_gemini.py
@@ -1408,7 +1408,8 @@ class ModelResponseIterator:
         return self.chunk_parser(chunk=json_chunk)
 
     def handle_accumulated_json_chunk(self, chunk: str) -> GenericStreamingChunk:
-        message = chunk.replace("data:", "").replace("\n\n", "")
+        chunk = litellm.CustomStreamWrapper._strip_sse_data_from_chunk(chunk) or ""
+        message = chunk.replace("\n\n", "")
 
         # Accumulate JSON data
         self.accumulated_json += message
@@ -1431,7 +1432,7 @@ class ModelResponseIterator:
 
     def _common_chunk_parsing_logic(self, chunk: str) -> GenericStreamingChunk:
         try:
-            chunk = chunk.replace("data:", "")
+            chunk = litellm.CustomStreamWrapper._strip_sse_data_from_chunk(chunk) or ""
             if len(chunk) > 0:
                 """
                 Check if initial chunk valid json
diff --git a/tests/code_coverage_tests/check_data_replace_usage.py b/tests/code_coverage_tests/check_data_replace_usage.py
new file mode 100644
index 0000000000..088e6e29b3
--- /dev/null
+++ b/tests/code_coverage_tests/check_data_replace_usage.py
@@ -0,0 +1,133 @@
+import os
+import re
+import ast
+from pathlib import Path
+
+
+class DataReplaceVisitor(ast.NodeVisitor):
+    """AST visitor that finds calls to .replace("data:", ...) in the code."""
+
+    def __init__(self):
+        self.issues = []
+        self.current_file = None
+
+    def set_file(self, filename):
+        self.current_file = filename
+
+    def visit_Call(self, node):
+        # Check for method calls like x.replace(...)
+        if isinstance(node.func, ast.Attribute) and node.func.attr == "replace":
+            # Check if first argument is "data:"
+            if (
+                len(node.args) >= 2
+                and isinstance(node.args[0], ast.Constant)
+                and isinstance(node.args[0].value, str)
+                and "data:" in node.args[0].value
+            ):
+
+                self.issues.append(
+                    {
+                        "file": self.current_file,
+                        "line": node.lineno,
+                        "col": node.col_offset,
+                        "text": f'Found .replace("data:", ...) at line {node.lineno}',
+                    }
+                )
+
+        # Continue visiting child nodes
+        self.generic_visit(node)
+
+
+def check_file_with_ast(file_path):
+    """Check a Python file for .replace("data:", ...) using AST parsing."""
+    with open(file_path, "r", encoding="utf-8") as f:
+        try:
+            tree = ast.parse(f.read(), filename=file_path)
+            visitor = DataReplaceVisitor()
+            visitor.set_file(file_path)
+            visitor.visit(tree)
+            return visitor.issues
+        except SyntaxError:
+            return [
+                {
+                    "file": file_path,
+                    "line": 0,
+                    "col": 0,
+                    "text": f"Syntax error in file, could not parse",
+                }
+            ]
+
+
+def check_file_with_regex(file_path):
+    """Check any file for .replace("data:", ...) using regex."""
+    issues = []
+    with open(file_path, "r", encoding="utf-8", errors="ignore") as f:
+        for i, line in enumerate(f, 1):
+            matches = re.finditer(r'\.replace\(\s*[\'"]data:[\'"]', line)
+            for match in matches:
+                issues.append(
+                    {
+                        "file": file_path,
+                        "line": i,
+                        "col": match.start(),
+                        "text": f'Found .replace("data:", ...) at line {i}',
+                    }
+                )
+    return issues
+
+
+def scan_directory(base_dir):
+    """Scan a directory recursively for files containing .replace("data:", ...)."""
+    all_issues = []
+
+    for root, _, files in os.walk(base_dir):
+        for file in files:
+            print("checking file: ", file)
+            file_path = os.path.join(root, file)
+
+            # Skip directories we don't want to check
+            if any(
+                d in file_path for d in [".git", "__pycache__", ".venv", "node_modules"]
+            ):
+                continue
+
+            # For Python files, use AST for more accurate parsing
+            if file.endswith(".py"):
+                issues = check_file_with_ast(file_path)
+            # For other files that might contain code, use regex
+            elif file.endswith((".js", ".ts", ".jsx", ".tsx", ".md", ".ipynb")):
+                issues = check_file_with_regex(file_path)
+            else:
+                continue
+
+            all_issues.extend(issues)
+
+    return all_issues
+
+
+def main():
+    # Start from the project root directory
+
+    base_dir = "./litellm"
+
+    # Local testing
+    # base_dir = "../../litellm"
+
+    print(f"Scanning for .replace('data:', ...) usage in {base_dir}")
+    issues = scan_directory(base_dir)
+
+    if issues:
+        print(f"\n⚠️ Found {len(issues)} instances of .replace('data:', ...):")
+        for issue in issues:
+            print(f"{issue['file']}:{issue['line']} - {issue['text']}")
+
+        # Fail the test if issues are found
+        raise Exception(
+            f"Found {len(issues)} instances of .replace('data:', ...) which may be unsafe. Use litellm.CustomStreamWrapper._strip_sse_data_from_chunk instead."
+        )
+    else:
+        print("✅ No instances of .replace('data:', ...) found.")
+
+
+if __name__ == "__main__":
+    main()
diff --git a/tests/litellm/litellm_core_utils/test_streaming_handler.py b/tests/litellm/litellm_core_utils/test_streaming_handler.py
index 54d178e3ac..10fe1db4ab 100644
--- a/tests/litellm/litellm_core_utils/test_streaming_handler.py
+++ b/tests/litellm/litellm_core_utils/test_streaming_handler.py
@@ -256,3 +256,24 @@ def test_multi_chunk_reasoning_and_content(
     # Verify final state
     assert initialized_custom_stream_wrapper.sent_first_thinking_block is True
     assert initialized_custom_stream_wrapper.sent_last_thinking_block is True
+
+
+def test_strip_sse_data_from_chunk():
+    """Test the static method that strips 'data: ' prefix from SSE chunks"""
+    # Test with string inputs
+    assert CustomStreamWrapper._strip_sse_data_from_chunk("data: content") == "content"
+    assert (
+        CustomStreamWrapper._strip_sse_data_from_chunk("data:  spaced content")
+        == " spaced content"
+    )
+    assert (
+        CustomStreamWrapper._strip_sse_data_from_chunk("regular content")
+        == "regular content"
+    )
+    assert (
+        CustomStreamWrapper._strip_sse_data_from_chunk("regular content with data:")
+        == "regular content with data:"
+    )
+
+    # Test with None input
+    assert CustomStreamWrapper._strip_sse_data_from_chunk(None) is None