diff --git a/tests/guardrails_tests/test_ztds_guardrail.py b/tests/guardrails_tests/test_ztds_guardrail.py
index 2d715ab40d8..be4b6a85da1 100644
--- a/tests/guardrails_tests/test_ztds_guardrail.py
+++ b/tests/guardrails_tests/test_ztds_guardrail.py
@@ -24,10 +24,36 @@ class MockModelResponse:
         self.choices = [MockChoice(content)]
 
 
+class MockDelta:
+    def __init__(self, content):
+        self.content = content
+
+
+class MockStreamChoice:
+    def __init__(self, content):
+        self.delta = MockDelta(content)
+
+
+class MockStreamChunk:
+    def __init__(self, content):
+        self.choices = [MockStreamChoice(content)]
+
+
 class TestZTDSLiteLLMGuardrail(unittest.IsolatedAsyncioTestCase):
     def setUp(self):
         self.guardrail = ZTDSGuardrail()
 
+    def test_constructor_accepts_proxy_kwargs(self):
+        """Verify proxy instantiation with standard guardrail configuration kwargs."""
+        g = ZTDSGuardrail(
+            guardrail_name="ztds",
+            event_hook=["pre_call", "post_call"],
+            default_on=True,
+            reverse_on_output=True,
+        )
+        self.assertEqual(g.guardrail_name, "ztds")
+        self.assertTrue(g.reverse_on_output)
+
     def test_deterministic_surrogate_tokenization(self):
         """Invariant 2: Identical cleartext entities must receive identical tokens in session."""
         session_id = "test-session-1"
@@ -80,8 +106,9 @@ class TestZTDSLiteLLMGuardrail(unittest.IsolatedAsyncioTestCase):
         self.assertIn("[IBAN_TOKEN_1]", user_content)
         self.assertTrue(modified_data["metadata"]["ztds_sanitized"])
 
+        session_id = modified_data["_ztds_session_id"]
         # Check session table exists in volatile RAM before post-call
-        self.assertIn("call-101", self.guardrail._session_maps)
+        self.assertIn(session_id, self.guardrail._session_maps)
 
         # 2. Simulate model response that mentions the token
         model_reply = "Verified account for [EMAIL_TOKEN_1] linked to [IBAN_TOKEN_1]."
@@ -100,8 +127,61 @@ class TestZTDSLiteLLMGuardrail(unittest.IsolatedAsyncioTestCase):
         self.assertNotIn("[EMAIL_TOKEN_1]", final_text)
 
         # Invariant 3 / Theorem 2: Session tables MUST be completely zeroized from RAM
-        self.assertNotIn("call-101", self.guardrail._session_maps)
-        self.assertNotIn("call-101", self.guardrail._entity_maps)
+        self.assertNotIn(session_id, self.guardrail._session_maps)
+        self.assertNotIn(session_id, self.guardrail._entity_maps)
+
+    async def test_non_message_content_sanitization(self):
+        """Sanitization of prompt (legacy completions) and input (embeddings/moderation)."""
+        data = {
+            "litellm_call_id": "call-202",
+            "prompt": "Prompt with secret sk-live12345678901234567890 and email test@corp.com",
+            "input": ["Batch item with email user@corp.com", "Plain string"],
+        }
+        modified = await self.guardrail.async_pre_call_hook({}, {}, data, "completion")
+        self.assertNotIn("sk-live12345678901234567890", modified["prompt"])
+        self.assertIn("[API_SECRET_TOKEN_1]", modified["prompt"])
+        self.assertNotIn("user@corp.com", modified["input"][0])
+        self.assertIn("[EMAIL_TOKEN_2]", modified["input"][0])
+
+    async def test_failure_hook_zeroizes_ram(self):
+        """Theorem 2: When upstream provider fails, RAM tables must be completely wiped."""
+        data = {
+            "litellm_call_id": "call-303",
+            "messages": [{"role": "user", "content": "Sensitive secret sk-live12345678901234567890"}]
+        }
+        modified = await self.guardrail.async_pre_call_hook({}, {}, data, "chat_completion")
+        session_id = modified["_ztds_session_id"]
+        self.assertIn(session_id, self.guardrail._session_maps)
+
+        # Trigger failure hook
+        await self.guardrail.async_post_call_failure_hook(modified, {}, Exception("Upstream 500"))
+        self.assertNotIn(session_id, self.guardrail._session_maps)
+
+    async def test_streaming_hook_restores_and_zeroizes(self):
+        """Streaming response chunks are unmasked and RAM is zeroized upon completion."""
+        data = {
+            "litellm_call_id": "call-404",
+            "messages": [{"role": "user", "content": "Hello user@corp.com"}]
+        }
+        modified = await self.guardrail.async_pre_call_hook({}, {}, data, "chat_completion")
+        session_id = modified["_ztds_session_id"]
+        self.assertIn(session_id, self.guardrail._session_maps)
+
+        async def fake_stream():
+            yield MockStreamChunk("Result for ")
+            yield MockStreamChunk("[EMAIL_TOKEN_1]")
+            yield MockStreamChunk(" confirmed.")
+
+        chunks = []
+        async for chunk in self.guardrail.async_post_call_streaming_iterator_hook({}, fake_stream(), modified):
+            chunks.append(chunk.choices[0].delta.content)
+
+        full_output = "".join(chunks)
+        self.assertIn("user@corp.com", full_output)
+        self.assertNotIn("[EMAIL_TOKEN_1]", full_output)
+
+        # Theorem 2 verification
+        self.assertNotIn(session_id, self.guardrail._session_maps)
 
 
 if __name__ == "__main__":