diff --git a/litellm/llms/azure/common_utils.py b/litellm/llms/azure/common_utils.py
index dfe662cc165..d9c5bea1a3f 100644
--- a/litellm/llms/azure/common_utils.py
+++ b/litellm/llms/azure/common_utils.py
@@ -759,4 +759,4 @@ class BaseAzureLLM(BaseOpenAILLM):
     def _is_azure_v1_api_version(api_version: Optional[str]) -> bool:
         if api_version is None:
             return False
-        return api_version == "preview" or api_version == "latest"
+        return api_version in {"preview", "latest", "v1"}
diff --git a/tests/test_litellm/llms/azure/test_azure_common_utils.py b/tests/test_litellm/llms/azure/test_azure_common_utils.py
index d4f6e3d8fb3..114ab3603d6 100644
--- a/tests/test_litellm/llms/azure/test_azure_common_utils.py
+++ b/tests/test_litellm/llms/azure/test_azure_common_utils.py
@@ -1504,3 +1504,23 @@ def test_get_azure_ad_token_fallback_to_default_azure_credential(setup_mocks, mo
 
     # Verify the token is what we expect from our DefaultAzureCredential mock
     assert token == "mock-default-azure-credential-token"
+
+
+@pytest.mark.parametrize(
+    "api_version,expected",
+    [
+        ("preview", True),
+        ("latest", True),
+        ("v1", True),
+        (None, False),
+        ("2023-05-15", False),
+        ("2024-01-01", False),
+        ("", False),
+    ],
+)
+def test_is_azure_v1_api_version(api_version, expected):
+    """
+    Test that _is_azure_v1_api_version correctly identifies v1 API versions.
+    """
+    result = BaseAzureLLM._is_azure_v1_api_version(api_version=api_version)
+    assert result == expected