diff --git a/litellm/proxy/proxy_server.py b/litellm/proxy/proxy_server.py
index 59bab43fbe6..f129af6d444 100644
--- a/litellm/proxy/proxy_server.py
+++ b/litellm/proxy/proxy_server.py
@@ -5453,9 +5453,11 @@ class ProxyConfig:
 
         # Load config separately so a timeout here doesn't block model loading
         config_data: dict = {}
+        config_loaded = False
         search_tools = None
         try:
             config_data = await proxy_config.get_config()
+            config_loaded = True
             search_tools = self.parse_search_tools(config_data)
         except Exception as e:
             verbose_proxy_logger.warning(
@@ -5509,7 +5511,8 @@ class ProxyConfig:
             llm_model_list = llm_router.get_model_list()
 
         # check if user set any callbacks in Config Table
-        self._add_callbacks_from_db_config(config_data)
+        if config_loaded:
+            self._add_callbacks_from_db_config(config_data)
 
         # router settings
         await self._add_router_settings_from_db_config(
@@ -5576,8 +5579,9 @@ class ProxyConfig:
                     existing_callbacks=litellm.failure_callback,
                 )
 
-        if callbacks is not None and isinstance(callbacks, list):
-            for callback in callbacks:
+        if callbacks is None or isinstance(callbacks, list):
+            configured_callbacks = callbacks or ()
+            for callback in configured_callbacks:
                 if isinstance(callback, str) and install_config_parameterized_callback(
                     callback=callback,
                     litellm_settings=litellm_settings,
@@ -5589,7 +5593,7 @@ class ProxyConfig:
                     event_types=["success", "failure"],
                     existing_callbacks=litellm.callbacks,
                 )
-            uninstall_deconfigured_parameterized_callbacks(callbacks)
+            uninstall_deconfigured_parameterized_callbacks(configured_callbacks)
 
     def _encrypt_env_variables(self, environment_variables: dict, new_encryption_key: str | None = None) -> dict:
         """
diff --git a/tests/test_litellm/proxy/proxy_server/test_proxy_config.py b/tests/test_litellm/proxy/proxy_server/test_proxy_config.py
index 4ffedda8323..20647b47071 100644
--- a/tests/test_litellm/proxy/proxy_server/test_proxy_config.py
+++ b/tests/test_litellm/proxy/proxy_server/test_proxy_config.py
@@ -2025,10 +2025,11 @@ def test_ProxyConfig__add_callbacks_from_db_config_uninstalls_logger_when_callba
     [
         {},
         {"litellm_settings": {}},
+        {"litellm_settings": {"callbacks": []}},
         {"litellm_settings": {"success_callback": ["langfuse"]}},
     ],
 )
-def test_ProxyConfig__add_callbacks_from_db_config_keeps_logger_when_config_omits_callbacks(
+def test_ProxyConfig__add_callbacks_from_db_config_uninstalls_logger_when_config_omits_callbacks(
     monkeypatch, config_without_callbacks
 ):
     from litellm.integrations.websearch_interception.handler import (
@@ -2039,10 +2040,37 @@ def test_ProxyConfig__add_callbacks_from_db_config_keeps_logger_when_config_omit
     pc = ProxyConfig()
 
     pc._add_callbacks_from_db_config(_websearch_db_config("tavily-search", ["bedrock"]))
+    installed_before = [cb for cb in litellm.callbacks if isinstance(cb, WebSearchInterceptionLogger)]
+
     pc._add_callbacks_from_db_config(config_without_callbacks)
 
-    installed = [cb for cb in litellm.callbacks if isinstance(cb, WebSearchInterceptionLogger)]
-    assert len(installed) == 1
+    remaining = [cb for cb in litellm.callbacks if isinstance(cb, WebSearchInterceptionLogger)]
+    snapshot = {"installed_before": len(installed_before), "remaining": len(remaining)}
+    assert snapshot == {"installed_before": 1, "remaining": 0}
+
+
+@pytest.mark.asyncio
+async def test_ProxyConfig__update_llm_router_keeps_logger_when_config_load_fails(monkeypatch):
+    from litellm.integrations.websearch_interception.handler import (
+        WebSearchInterceptionLogger,
+    )
+
+    _reset_callback_lists(monkeypatch)
+    pc = ProxyConfig()
+    pc._add_callbacks_from_db_config(_websearch_db_config("tavily-search", ["bedrock"]))
+    installed_before = [cb for cb in litellm.callbacks if isinstance(cb, WebSearchInterceptionLogger)]
+
+    class _FailingProxyConfig:
+        async def get_config(self) -> dict:
+            raise TimeoutError("transient DB timeout")
+
+    monkeypatch.setattr(litellm.proxy.proxy_server, "proxy_config", _FailingProxyConfig())
+
+    await pc._update_llm_router(new_models=[], proxy_logging_obj=MagicMock())
+
+    remaining = [cb for cb in litellm.callbacks if isinstance(cb, WebSearchInterceptionLogger)]
+    snapshot = {"installed_before": len(installed_before), "remaining": len(remaining)}
+    assert snapshot == {"installed_before": 1, "remaining": 1}
 
 
 def test_ProxyConfig__add_callbacks_from_db_config_bad_config_raises():