diff --git a/tests/llm_responses_api_testing/test_compaction.py b/tests/llm_responses_api_testing/test_compaction.py
new file mode 100644
index 00000000000..a0b139ffe5d
--- /dev/null
+++ b/tests/llm_responses_api_testing/test_compaction.py
@@ -0,0 +1,102 @@
+import os
+import sys
+import json
+
+import pytest
+
+sys.path.insert(0, os.path.abspath("../.."))
+import litellm
+from litellm.types.llms.openai import ResponsesAPIResponse
+
+
+@pytest.mark.asyncio
+async def test_responses_api_compaction_with_conversation_history():
+    """
+    1. Request should not fail with compaction param
+    """
+    litellm._turn_on_debug()
+    litellm.set_verbose = True
+
+    response = await litellm.aresponses(
+        model="groq/llama-3.3-70b-versatile",
+        input=[
+            {
+                "type": "message",
+                "role": "user",
+                "content": "Help me debug a production incident.",
+            },
+            {
+                "type": "message",
+                "role": "assistant",
+                "content": [
+                    {
+                        "type": "output_text",
+                        "text": "What symptoms are you seeing?",
+                    }
+                ],
+            },
+            {
+                "type": "message",
+                "role": "user",
+                "content": "We are seeing intermittent 502s from one provider path.",
+            },
+        ],
+        context_management=[{"type": "compaction", "compact_threshold": 200000}],
+        store=False,
+        max_output_tokens=200,
+    )
+
+    print("response=", json.dumps(response, indent=4, default=str))
+
+    assert response is not None
+    assert isinstance(response, ResponsesAPIResponse)
+    assert response.id is not None
+    assert response.output is not None
+    assert len(response.output) > 0
+
+
+@pytest.mark.asyncio
+async def test_responses_api_compaction_with_trimming():
+    """
+    2. Request should be trimmed to the compaction threshold
+    """
+    litellm._turn_on_debug()
+    litellm.set_verbose = True
+
+    response = await litellm.aresponses(
+        model="groq/llama-3.3-70b-versatile",
+        input=[
+            {
+                "type": "message",
+                "role": "user",
+                "content": "Help me debug a production incident.",
+            },
+            {
+                "type": "message",
+                "role": "assistant",
+                "content": [
+                    {
+                        "type": "output_text",
+                        "text": "What symptoms are you seeing?" * 1000,
+                    }
+                ],
+            },
+            {
+                "type": "message",
+                "role": "user",
+                "content": "We are seeing intermittent 502s from one provider path.",
+            },
+        ],
+        context_management=[{"type": "compaction", "compact_threshold": 100}],
+        store=False,
+        max_output_tokens=200,
+    )
+
+    print("response=", json.dumps(response, indent=4, default=str))
+
+    assert response is not None
+    assert isinstance(response, ResponsesAPIResponse)
+    assert response.id is not None
+    assert response.output is not None
+    assert len(response.output) > 0
+