diff --git a/litellm/llms/sap/credentials.py b/litellm/llms/sap/credentials.py
index 59693e9d8c4..900f5e94be2 100644
--- a/litellm/llms/sap/credentials.py
+++ b/litellm/llms/sap/credentials.py
@@ -184,7 +184,7 @@ def resolve_resource_group(sources: List[Source]) -> Optional[str]:
             return value
     return rg_cred.default
 
-def fetch_credentials(service_key: Optional[str, dict] = None, profile: Optional[str] = None, **kwargs) -> Dict[str, str]:
+def fetch_credentials(service_key: Optional[Union[str, dict]] = None, profile: Optional[str] = None, **kwargs) -> Dict[str, str]:
     """
     Resolution order per key:
       kwargs
@@ -200,9 +200,10 @@ def fetch_credentials(service_key: Optional[str, dict] = None, profile: Optional
     vcap_service = _get_vcap_service(VCAP_AICORE_SERVICE_NAME)
 
     sources = [
-        Source("service key", lambda cv: _get_nested(service_key, cv.vcap_key if cv.vcap_key else (cv.name,))), # type: ignore[arg-type]
         Source("kwargs",
                lambda cv: _str_or_none(kwargs.get(cv.name))),
+        Source("service key",
+               lambda cv: _get_nested(service_key, cv.vcap_key if cv.vcap_key else (cv.name,))), # type: ignore[arg-type]
         Source("environment variables",
                lambda cv: _str_or_none(os.environ.get(f'AICORE_{cv.name.upper()}'))),
         Source("config file",
diff --git a/tests/test_litellm/llms/sap/test_sap_fetch_creds.py b/tests/test_litellm/llms/sap/test_sap_fetch_creds.py
index a1caf7a538d..46e5656a523 100644
--- a/tests/test_litellm/llms/sap/test_sap_fetch_creds.py
+++ b/tests/test_litellm/llms/sap/test_sap_fetch_creds.py
@@ -37,7 +37,7 @@ def test_sap_fetch_creds_from_env_service_key(monkeypatch):
     creds = fetch_credentials()
     assert creds == expected_creds
 
-def test_sap_fetch_creds_from_api_key_service_key(monkeypatch):
+def test_sap_fetch_creds_from_arg_service_key(monkeypatch):
     monkeypatch.setenv("AICORE_HOME", 'notexist')
     creds = fetch_credentials(service_key=json.dumps(mock_sap_service_key_dict))
     assert creds == expected_creds
@@ -64,3 +64,14 @@ def test_fetch_creds_from_env(monkeypatch):
     assert creds['auth_url'] == "env-auth-url/oauth/token"
     assert creds['base_url'] == "env-base-url/v2"
     assert creds['resource_group'] == "env-resource-group"
+
+def test_creds_priority_order(monkeypatch):
+    monkeypatch.setenv("AICORE_HOME", 'notexist')
+    monkeypatch.setenv("AICORE_CLIENT_ID", "env-client-id")
+    monkeypatch.setenv("AICORE_CLIENT_SECRET", "env-client-secret")
+    monkeypatch.setenv("AICORE_AUTH_URL", "env-auth-url")
+    monkeypatch.setenv("AICORE_BASE_URL", "env-base-url")
+    monkeypatch.setenv("AICORE_RESOURCE_GROUP", "env-resource-group")
+    creds = fetch_credentials(service_key=json.dumps(mock_sap_service_key_dict))
+    assert creds['client_id'] == "mockclientid"
+    assert creds['resource_group'] == "env-resource-group"
\ No newline at end of file