diff --git a/litellm/proxy/utils.py b/litellm/proxy/utils.py
index 40630a6a840..1021b2208ab 100644
--- a/litellm/proxy/utils.py
+++ b/litellm/proxy/utils.py
@@ -2645,10 +2645,6 @@ class ProxyLogging:
         user_api_key_dict: UserAPIKeyAuth | None,
         call_type: CallTypesLiteral,
     ):
-        """
-        Runs the async_moderation_hook() of every CustomGuardrail, and of every
-        CustomLogger that overrides it, in parallel
-        """
         caps: Final = ProxyLogging._callback_capabilities()
         if not caps.has_guardrail and not caps.has_moderation_override:
             return data
diff --git a/tests/test_litellm/proxy/test_proxy_logging_hook_detection.py b/tests/test_litellm/proxy/test_proxy_logging_hook_detection.py
index 58ee8ff656c..fd832439c0f 100644
--- a/tests/test_litellm/proxy/test_proxy_logging_hook_detection.py
+++ b/tests/test_litellm/proxy/test_proxy_logging_hook_detection.py
@@ -652,13 +652,24 @@ async def test_during_call_hook_skips_custom_logger_moderation_without_auth(monk
     assert moderator.moderated == []
 
 
-def test_callback_capabilities_detects_custom_logger_moderation_override(monkeypatch):
-    ProxyLogging._callback_capabilities_cache.clear()
-    monkeypatch.setattr(litellm, "callbacks", [CustomLogger(), CustomGuardrail()])
-    assert ProxyLogging._callback_capabilities().has_moderation_override is False
+class _InheritsModerationOverride(_RejectsInModeration):
+    pass
 
-    monkeypatch.setattr(litellm, "callbacks", [_RejectsInModeration()])
-    assert ProxyLogging._callback_capabilities().has_moderation_override is True
+
+@pytest.mark.asyncio
+async def test_during_call_hook_runs_moderation_override_inherited_from_parent(monkeypatch):
+    moderator = _InheritsModerationOverride()
+    monkeypatch.setattr(litellm, "callbacks", [moderator])
+
+    with pytest.raises(HTTPException) as exc_info:
+        await ProxyLogging(user_api_key_cache=DualCache()).during_call_hook(
+            data={"messages": [{"role": "user", "content": "hi"}]},
+            user_api_key_dict=UserAPIKeyAuth(api_key="sk-1234"),
+            call_type="acompletion",
+        )
+
+    assert exc_info.value.status_code == 400
+    assert moderator.moderated == ["acompletion"]
 
 
 @pytest.mark.asyncio