diff --git a/litellm/proxy/common_utils/callback_config_validation.py b/litellm/proxy/common_utils/callback_config_validation.py
index 76267260191..302978d17a4 100644
--- a/litellm/proxy/common_utils/callback_config_validation.py
+++ b/litellm/proxy/common_utils/callback_config_validation.py
@@ -256,12 +256,22 @@ def conflicting_callback_var_error(
             f"{variable_name} is already set to {stored!r} by another {callback_name} entry. "
             f"Every {callback_name} entry shares one value: remove that entry or send the same value."
             for name, entry_vars in stored_entries
-            if name == callback_name and (stored := entry_vars.get(variable_name)) not in (None, incoming)
+            if name == callback_name
+            and (stored := entry_vars.get(variable_name)) is not None
+            and not _same_callback_var_value(variable_name, stored, incoming)
         ),
         None,
     )
 
 
+def _same_callback_var_value(variable_name: str, first: str, second: str) -> bool:
+    if variable_name != EXCLUDED_SERVICES_VAR:
+        return first == second
+    from litellm.integrations.otel.model.config import parse_excluded_services
+
+    return parse_excluded_services(first) == parse_excluded_services(second)
+
+
 def logging_metadata_config_error(metadata: Mapping[str, object] | None) -> str | None:
     """Validate every ``logging`` entry of a team/key metadata payload."""
     if not metadata:
diff --git a/tests/unit/proxy/common_utils/test_callback_config_validation.py b/tests/unit/proxy/common_utils/test_callback_config_validation.py
index 359ea89859e..f42387d3e76 100644
--- a/tests/unit/proxy/common_utils/test_callback_config_validation.py
+++ b/tests/unit/proxy/common_utils/test_callback_config_validation.py
@@ -465,6 +465,36 @@ def test_key_logging_entries_for_one_backend_may_not_disagree_on_excluded_servic
     assert error is not None and "already set to 'redis' by another langfuse_otel entry" in error
 
 
+@pytest.mark.usefixtures("otel_v2_on")
+@pytest.mark.parametrize(
+    ("stored", "incoming", "conflicts"),
+    [
+        ("redis,postgres", "postgres,redis", False),
+        ("redis", "REDIS", False),
+        ("postgres", "postgresql", False),
+        ("none", "NONE", False),
+        ("redis", "postgres", True),
+        ("none", "redis", True),
+    ],
+)
+def test_key_logging_entries_compare_excluded_services_by_parsed_value(
+    stored: str, incoming: str, conflicts: bool
+) -> None:
+    def entry(callback_type: str, excluded_services: str) -> dict[str, str | dict[str, str]]:
+        return {
+            "callback_name": "newrelic",
+            "callback_type": callback_type,
+            "callback_vars": {"newrelic_api_key": "license-key", "excluded_services": excluded_services},
+        }
+
+    error: Final = logging_metadata_config_error(
+        {"logging": [entry("success", stored), entry("success_and_failure", incoming)]}
+    )
+    assert (error is not None) is conflicts
+    if conflicts:
+        assert error is not None and f"already set to {stored!r}" in error
+
+
 @pytest.mark.usefixtures("otel_v2_on")
 def test_a_failure_only_entry_rejects_excluded_services() -> None:
     error: Final = callback_config_error("langfuse_otel", {"excluded_services": "redis"}, "failure")
diff --git a/tests/unit/proxy/management_endpoints/test_team_callback_endpoints.py b/tests/unit/proxy/management_endpoints/test_team_callback_endpoints.py
index c1b5c2fc251..ac78085ca47 100644
--- a/tests/unit/proxy/management_endpoints/test_team_callback_endpoints.py
+++ b/tests/unit/proxy/management_endpoints/test_team_callback_endpoints.py
@@ -1719,6 +1719,39 @@ async def test_a_second_newrelic_entry_may_not_change_excluded_services(patched_
     patched_prisma.db.litellm_teamtable.update.assert_not_called()
 
 
+@pytest.mark.usefixtures("otel_v2_on")
+@pytest.mark.asyncio
+async def test_a_second_newrelic_entry_accepts_equivalent_excluded_services(patched_prisma) -> None:
+    patched_prisma.get_data = AsyncMock(
+        return_value=_team_row(
+            metadata={
+                "logging": [
+                    {
+                        "callback_name": "newrelic",
+                        "callback_type": "success",
+                        "callback_vars": {
+                            "newrelic_api_key": "license-key",
+                            "excluded_services": "redis,postgres",
+                        },
+                    }
+                ]
+            }
+        )
+    )
+    data: Final = AddTeamCallback(
+        callback_name="newrelic",
+        callback_type="success_and_failure",
+        callback_vars={"newrelic_api_key": "license-key", "excluded_services": "postgres,redis"},
+    )
+    await add_team_callbacks(
+        data=data,
+        http_request=Mock(spec=Request),
+        team_id="team-victim",
+        user_api_key_dict=_admin_auth(),
+    )
+    patched_prisma.db.litellm_teamtable.update.assert_awaited_once()
+
+
 @pytest.mark.asyncio
 async def test_add_team_callbacks_rejects_out_of_range_arize_sampling_rate(patched_prisma):
     data = AddTeamCallback(