diff --git a/litellm/integrations/prometheus.py b/litellm/integrations/prometheus.py
index 0e35c4e8409..dc9e170eb44 100644
--- a/litellm/integrations/prometheus.py
+++ b/litellm/integrations/prometheus.py
@@ -151,7 +151,7 @@ class PrometheusLogger(CustomLogger):
 
             # Max Budget for Team
             self.litellm_team_max_budget_metric = Gauge(
-                "litellm_team_max_budget_metric", 
+                "litellm_team_max_budget_metric",
                 "Maximum budget set for team",
                 labelnames=["team_id", "team_alias"],
             )
@@ -210,6 +210,20 @@ class PrometheusLogger(CustomLogger):
                     "api_key_alias",
                 ],
             )
+
+            self.litellm_overhead_latency_metric = Histogram(
+                "litellm_overhead_latency_metric",
+                "Latency overhead (milliseconds) added by LiteLLM processing",
+                labelnames=[
+                    "model_group",
+                    "api_provider",
+                    "api_base",
+                    "litellm_model_name",
+                    "hashed_api_key",
+                    "api_key_alias",
+                ],
+                buckets=LATENCY_BUCKETS,
+            )
             # llm api provider budget metrics
             self.litellm_provider_remaining_budget_metric = Gauge(
                 "litellm_provider_remaining_budget_metric",
@@ -325,7 +339,6 @@ class PrometheusLogger(CustomLogger):
                     label_name="litellm_requests_metric"
                 ),
             )
-
             self._initialize_prometheus_startup_metrics()
 
         except Exception as e:
@@ -988,6 +1001,18 @@ class PrometheusLogger(CustomLogger):
                     "x_ratelimit_remaining_tokens", None
                 )
 
+            if litellm_overhead_time_ms := standard_logging_payload["hidden_params"][
+                "litellm_overhead_time_ms"
+            ]:
+                self.litellm_overhead_latency_metric.labels(
+                    model_group,
+                    llm_provider,
+                    api_base,
+                    litellm_model_name,
+                    standard_logging_payload["metadata"]["user_api_key_hash"],
+                    standard_logging_payload["metadata"]["user_api_key_alias"],
+                ).observe(litellm_overhead_time_ms)
+
             if remaining_requests:
                 """
                 "model_group",
diff --git a/litellm/litellm_core_utils/litellm_logging.py b/litellm/litellm_core_utils/litellm_logging.py
index d3e99925dad..8bd5ec7c4fc 100644
--- a/litellm/litellm_core_utils/litellm_logging.py
+++ b/litellm/litellm_core_utils/litellm_logging.py
@@ -2998,6 +2998,7 @@ class StandardLoggingPayloadSetup:
             api_base=None,
             response_cost=None,
             additional_headers=None,
+            litellm_overhead_time_ms=None,
         )
         if hidden_params is not None:
             for key in StandardLoggingHiddenParams.__annotations__.keys():
@@ -3094,6 +3095,7 @@ def get_standard_logging_object_payload(
                         cache_key=None,
                         api_base=None,
                         response_cost=None,
+                        litellm_overhead_time_ms=None,
                     )
                 )
 
diff --git a/litellm/proxy/proxy_config.yaml b/litellm/proxy/proxy_config.yaml
index 09df4ec481e..e0c3e678a8e 100644
--- a/litellm/proxy/proxy_config.yaml
+++ b/litellm/proxy/proxy_config.yaml
@@ -17,4 +17,4 @@ general_settings:
   store_prompts_in_spend_logs: true
 
 litellm_settings:
-  callbacks: ["datadog_llm_observability"]
+  callbacks: ["prometheus"]
diff --git a/litellm/types/utils.py b/litellm/types/utils.py
index da25487453e..c657143cd54 100644
--- a/litellm/types/utils.py
+++ b/litellm/types/utils.py
@@ -1490,6 +1490,7 @@ class StandardLoggingHiddenParams(TypedDict):
     cache_key: Optional[str]
     api_base: Optional[str]
     response_cost: Optional[str]
+    litellm_overhead_time_ms: Optional[float]
     additional_headers: Optional[StandardLoggingAdditionalHeaders]
 
 
diff --git a/tests/otel_tests/test_prometheus.py b/tests/otel_tests/test_prometheus.py
index b8d3bd20b3a..678140d3e00 100644
--- a/tests/otel_tests/test_prometheus.py
+++ b/tests/otel_tests/test_prometheus.py
@@ -159,11 +159,6 @@ async def test_proxy_success_metrics():
             in metrics
         )
 
-        # assert (
-        #     'litellm_deployment_latency_per_output_token_count{api_base="https://exampleopenaiendpoint-production.up.railway.app/",api_key_alias="None",api_provider="openai",hashed_api_key="88dc28d0f030c55ed4ab77ed8faf098196cb1c05df778539800c9f1243fe6b4b",litellm_model_name="fake",model_id="team-b-model",team="None",team_alias="None"}'
-        #     in metrics
-        # )
-
         verify_latency_metrics(metrics)
 
 
@@ -172,13 +167,19 @@ def verify_latency_metrics(metrics: str):
     Assert that LATENCY_BUCKETS distribution is used for
     - litellm_request_total_latency_metric_bucket
     - litellm_llm_api_latency_metric_bucket
+
+    Very important to verify that the overhead latency metric is present
     """
     from litellm.types.integrations.prometheus import LATENCY_BUCKETS
     import re
+    import time
+
+    time.sleep(2)
 
     metric_names = [
         "litellm_request_total_latency_metric_bucket",
         "litellm_llm_api_latency_metric_bucket",
+        "litellm_overhead_latency_metric_bucket",
     ]
 
     for metric_name in metric_names: