diff --git a/litellm/proxy/auth/master_key_policy.py b/litellm/proxy/auth/master_key_policy.py
index 23f39f1cf03..3b34be0bb07 100644
--- a/litellm/proxy/auth/master_key_policy.py
+++ b/litellm/proxy/auth/master_key_policy.py
@@ -7,7 +7,7 @@ INSECURE_MASTER_KEYS: Final = frozenset({"sk-1234"})
 
 InsecureMasterKeyReason = Literal["example_key", "missing"]
 
-_ALTERNATIVE_AUTH_SETTINGS: Final = ("enable_jwt_auth", "enable_oauth2_auth", "enable_oauth2_proxy_auth")
+_ALTERNATIVE_AUTH_SETTINGS: Final = ("enable_jwt_auth", "enable_oauth2_auth", "enable_oauth2_proxy_auth", "custom_auth")
 
 
 def alternative_auth_enabled(general_settings: Mapping[str, object]) -> bool:
diff --git a/tests/test_litellm/proxy/auth/test_master_key_policy.py b/tests/test_litellm/proxy/auth/test_master_key_policy.py
index 3f069e380c4..1b7d5a086f8 100644
--- a/tests/test_litellm/proxy/auth/test_master_key_policy.py
+++ b/tests/test_litellm/proxy/auth/test_master_key_policy.py
@@ -1,5 +1,11 @@
+from typing import Final
+
 from litellm.litellm_core_utils.secret_redaction import redact_string
-from litellm.proxy.auth.master_key_policy import insecure_master_key_reason, insecure_master_key_warning
+from litellm.proxy.auth.master_key_policy import (
+    alternative_auth_enabled,
+    insecure_master_key_reason,
+    insecure_master_key_warning,
+)
 
 
 def test_insecure_master_key_reason_for_example_key():
@@ -19,6 +25,12 @@ def test_insecure_master_key_reason_none_with_alternative_auth():
     assert insecure_master_key_reason(None, alternative_auth_enabled=True) is None
 
 
+def test_insecure_master_key_reason_none_with_custom_auth():
+    general_settings: Final = {"custom_auth": "my_package.custom_auth_handler"}
+
+    assert insecure_master_key_reason(None, alternative_auth_enabled=alternative_auth_enabled(general_settings)) is None
+
+
 def test_insecure_master_key_warning_returned_for_example_key():
     warning = insecure_master_key_warning("sk-1234", alternative_auth_enabled=False)