diff --git a/litellm/proxy/proxy_server.py b/litellm/proxy/proxy_server.py
index 0e04e9f2132..59b4bc8fe34 100644
--- a/litellm/proxy/proxy_server.py
+++ b/litellm/proxy/proxy_server.py
@@ -3393,6 +3393,7 @@ class ProxyStartupEvent:
             return prisma_client
         except Exception as e:
             PrismaDBExceptionHandler.handle_db_exception(e)
+            return None
 
     @classmethod
     def _init_dd_tracer(cls):
diff --git a/tests/litellm/proxy/auth/test_auth_exception_handler.py b/tests/litellm/proxy/auth/test_auth_exception_handler.py
index b44de86e05f..224bf24b570 100644
--- a/tests/litellm/proxy/auth/test_auth_exception_handler.py
+++ b/tests/litellm/proxy/auth/test_auth_exception_handler.py
@@ -29,78 +29,6 @@ from litellm.proxy._types import ProxyErrorTypes, ProxyException
 from litellm.proxy.auth.auth_exception_handler import UserAPIKeyAuthExceptionHandler
 
 
-# Test is_database_connection_error method
-@pytest.mark.parametrize(
-    "prisma_error",
-    [
-        PrismaError(),
-        DataError(data={"user_facing_error": {"meta": {"table": "test_table"}}}),
-        UniqueViolationError(
-            data={"user_facing_error": {"meta": {"table": "test_table"}}}
-        ),
-        ForeignKeyViolationError(
-            data={"user_facing_error": {"meta": {"table": "test_table"}}}
-        ),
-        MissingRequiredValueError(
-            data={"user_facing_error": {"meta": {"table": "test_table"}}}
-        ),
-        RawQueryError(data={"user_facing_error": {"meta": {"table": "test_table"}}}),
-        TableNotFoundError(
-            data={"user_facing_error": {"meta": {"table": "test_table"}}}
-        ),
-        RecordNotFoundError(
-            data={"user_facing_error": {"meta": {"table": "test_table"}}}
-        ),
-        HTTPClientClosedError(),
-        ClientNotConnectedError(),
-    ],
-)
-def test_is_database_connection_error_prisma_errors(prisma_error):
-    """
-    Test that all Prisma errors are considered database connection errors
-    """
-    handler = UserAPIKeyAuthExceptionHandler()
-    assert handler.is_database_connection_error(prisma_error) == True
-
-
-def test_is_database_connection_generic_errors():
-    """
-    Test non-Prisma error cases for database connection checking
-    """
-    handler = UserAPIKeyAuthExceptionHandler()
-
-    # Test with ProxyException (DB connection)
-    db_proxy_exception = ProxyException(
-        message="DB Connection Error",
-        type=ProxyErrorTypes.no_db_connection,
-        param="test-param",
-    )
-    assert handler.is_database_connection_error(db_proxy_exception) == True
-
-    # Test with non-DB error
-    regular_exception = Exception("Regular error")
-    assert handler.is_database_connection_error(regular_exception) == False
-
-
-# Test should_allow_request_on_db_unavailable method
-@patch(
-    "litellm.proxy.proxy_server.general_settings",
-    {"allow_requests_on_db_unavailable": True},
-)
-def test_should_allow_request_on_db_unavailable_true():
-    handler = UserAPIKeyAuthExceptionHandler()
-    assert handler.should_allow_request_on_db_unavailable() == True
-
-
-@patch(
-    "litellm.proxy.proxy_server.general_settings",
-    {"allow_requests_on_db_unavailable": False},
-)
-def test_should_allow_request_on_db_unavailable_false():
-    handler = UserAPIKeyAuthExceptionHandler()
-    assert handler.should_allow_request_on_db_unavailable() == False
-
-
 @pytest.mark.asyncio
 @pytest.mark.parametrize(
     "prisma_error",
diff --git a/tests/litellm/proxy/db/test_exception_handler.py b/tests/litellm/proxy/db/test_exception_handler.py
new file mode 100644
index 00000000000..04f17ff19b4
--- /dev/null
+++ b/tests/litellm/proxy/db/test_exception_handler.py
@@ -0,0 +1,109 @@
+import asyncio
+import json
+import os
+import sys
+from unittest.mock import MagicMock, patch
+
+import pytest
+from fastapi import HTTPException, Request, status
+from prisma import errors as prisma_errors
+from prisma.errors import (
+    ClientNotConnectedError,
+    DataError,
+    ForeignKeyViolationError,
+    HTTPClientClosedError,
+    MissingRequiredValueError,
+    PrismaError,
+    RawQueryError,
+    RecordNotFoundError,
+    TableNotFoundError,
+    UniqueViolationError,
+)
+
+sys.path.insert(
+    0, os.path.abspath("../../..")
+)  # Adds the parent directory to the system path
+
+from litellm._logging import verbose_proxy_logger
+from litellm.proxy._types import ProxyErrorTypes, ProxyException
+from litellm.proxy.db.exception_handler import PrismaDBExceptionHandler
+
+
+# Test is_database_connection_error method
+@pytest.mark.parametrize(
+    "prisma_error",
+    [
+        PrismaError(),
+        DataError(data={"user_facing_error": {"meta": {"table": "test_table"}}}),
+        UniqueViolationError(
+            data={"user_facing_error": {"meta": {"table": "test_table"}}}
+        ),
+        ForeignKeyViolationError(
+            data={"user_facing_error": {"meta": {"table": "test_table"}}}
+        ),
+        MissingRequiredValueError(
+            data={"user_facing_error": {"meta": {"table": "test_table"}}}
+        ),
+        RawQueryError(data={"user_facing_error": {"meta": {"table": "test_table"}}}),
+        TableNotFoundError(
+            data={"user_facing_error": {"meta": {"table": "test_table"}}}
+        ),
+        RecordNotFoundError(
+            data={"user_facing_error": {"meta": {"table": "test_table"}}}
+        ),
+        HTTPClientClosedError(),
+        ClientNotConnectedError(),
+    ],
+)
+def test_is_database_connection_error_prisma_errors(prisma_error):
+    """
+    Test that all Prisma errors are considered database connection errors
+    """
+    assert PrismaDBExceptionHandler.is_database_connection_error(prisma_error) == True
+
+
+def test_is_database_connection_generic_errors():
+    """
+    Test non-Prisma error cases for database connection checking
+    """
+    assert (
+        PrismaDBExceptionHandler.is_database_connection_error(
+            Exception("Regular error")
+        )
+        == False
+    )
+
+    # Test with ProxyException (DB connection)
+    db_proxy_exception = ProxyException(
+        message="DB Connection Error",
+        type=ProxyErrorTypes.no_db_connection,
+        param="test-param",
+    )
+    assert (
+        PrismaDBExceptionHandler.is_database_connection_error(db_proxy_exception)
+        == True
+    )
+
+    # Test with non-DB error
+    regular_exception = Exception("Regular error")
+    assert (
+        PrismaDBExceptionHandler.is_database_connection_error(regular_exception)
+        == False
+    )
+
+
+# Test should_allow_request_on_db_unavailable method
+@patch(
+    "litellm.proxy.proxy_server.general_settings",
+    {"allow_requests_on_db_unavailable": True},
+)
+def test_should_allow_request_on_db_unavailable_true():
+    assert PrismaDBExceptionHandler.should_allow_request_on_db_unavailable() == True
+
+
+@patch(
+    "litellm.proxy.proxy_server.general_settings",
+    {"allow_requests_on_db_unavailable": False},
+)
+def test_should_allow_request_on_db_unavailable_false():
+    assert PrismaDBExceptionHandler.should_allow_request_on_db_unavailable() == False