proxy: hot-reload config YAML when --reload is set

Uvicorn's --reload only watches *.py by default, so editing the
--config YAML did not restart the proxy. _get_reload_options() now
extends reload_dirs/reload_includes with the config file's directory
and basename when --config is provided.

litellm/proxy/proxy_cli.py

@@ -169,6 +169,28 @@ class ProxyInitializationHelpers:
                 )
         return uvicorn_args
 
+    @staticmethod
+    def _get_reload_options(config_path: Optional[str]) -> dict:
+        """
+        Build uvicorn reload kwargs so --reload also reloads when the YAML
+        config file (passed via --config) changes.
+
+        Uvicorn defaults to watching only `*.py` files in CWD; we extend the
+        watch set to include the config file's directory and filename.
+        """
+        options: dict = {"reload": True}
+        if not config_path:
+            return options
+        config_abs = os.path.abspath(config_path)
+        config_dir = os.path.dirname(config_abs)
+        cwd = os.path.abspath(os.getcwd())
+        reload_dirs = [cwd]
+        if config_dir and config_dir != cwd:
+            reload_dirs.append(config_dir)
+        options["reload_dirs"] = reload_dirs
+        options["reload_includes"] = ["*.py", os.path.basename(config_abs)]
+        return options
+
     @staticmethod
     def _init_hypercorn_server(
         app: FastAPI,
@@ -619,7 +641,7 @@ class ProxyInitializationHelpers:
     "--reload",
     is_flag=True,
     default=False,
-    help="Enable uvicorn hot reload (dev only). Incompatible with --num_workers>1, --run_gunicorn, and --run_hypercorn.",
+    help="Enable uvicorn hot reload (dev only). Also reloads when the --config YAML file changes. Incompatible with --num_workers>1, --run_gunicorn, and --run_hypercorn.",
 )
 def run_server(  # noqa: PLR0915
     host,
@@ -1028,7 +1050,9 @@ def run_server(  # noqa: PLR0915
                 uvicorn_args["loop"] = loop_type
 
             if reload:
-                uvicorn_args["reload"] = True
+                uvicorn_args.update(
+                    ProxyInitializationHelpers._get_reload_options(config)
+                )
 
             uvicorn.run(
                 **uvicorn_args,

tests/test_litellm/proxy/test_proxy_cli.py

@@ -133,6 +133,36 @@ class TestProxyInitializationHelpers:
             )
             assert args["timeout_worker_healthcheck"] == 15
 
+    def test_get_reload_options_no_config(self):
+        opts = ProxyInitializationHelpers._get_reload_options(None)
+        assert opts == {"reload": True}
+
+    def test_get_reload_options_with_config_in_cwd(self, tmp_path, monkeypatch):
+        config_file = tmp_path / "config.yaml"
+        config_file.write_text("model_list: []\n")
+        monkeypatch.chdir(tmp_path)
+
+        opts = ProxyInitializationHelpers._get_reload_options("config.yaml")
+
+        assert opts["reload"] is True
+        assert opts["reload_dirs"] == [str(tmp_path)]
+        assert opts["reload_includes"] == ["*.py", "config.yaml"]
+
+    def test_get_reload_options_with_config_outside_cwd(self, tmp_path, monkeypatch):
+        cwd_dir = tmp_path / "work"
+        cwd_dir.mkdir()
+        elsewhere = tmp_path / "configs"
+        elsewhere.mkdir()
+        config_file = elsewhere / "proxy.yaml"
+        config_file.write_text("model_list: []\n")
+        monkeypatch.chdir(cwd_dir)
+
+        opts = ProxyInitializationHelpers._get_reload_options(str(config_file))
+
+        assert opts["reload"] is True
+        assert opts["reload_dirs"] == [str(cwd_dir), str(elsewhere)]
+        assert opts["reload_includes"] == ["*.py", "proxy.yaml"]
+
     @patch("asyncio.run")
     @patch("builtins.print")
     def test_init_hypercorn_server(self, mock_print, mock_asyncio_run):