From b77fe50ed192c347c3538548051f8363aa14da8d Mon Sep 17 00:00:00 2001
From: Ishaan Jaffer <ishaanjaffer0324@gmail.com>
Date: Thu, 22 Jan 2026 15:22:19 -0800
Subject: [PATCH] init _init_policy_engine

---
 litellm/__init__.py           |  4 ++-
 litellm/proxy/proxy_server.py | 53 +++++++++++++++++++++++++++++++++--
 2 files changed, 53 insertions(+), 4 deletions(-)

diff --git a/litellm/__init__.py b/litellm/__init__.py
index 9455b32178e..76377d9caa0 100644
--- a/litellm/__init__.py
+++ b/litellm/__init__.py
@@ -376,7 +376,8 @@ public_model_groups_links: Dict[str, Union[str, Dict[str, Any]]] = {}
 priority_reservation: Optional[
     Dict[str, Union[float, "PriorityReservationDict"]]
 ] = None
-# priority_reservation_settings is lazy-loaded via __getattr__
+# priority_reservation_settings is lazy-loaded via __getattr__, but declared here for type checking
+priority_reservation_settings: Optional["PriorityReservationSettings"] = None
 
 
 ######## Networking Settings ########
@@ -1273,6 +1274,7 @@ def set_global_gitlab_config(config: Dict[str, Any]) -> None:
 
 if TYPE_CHECKING:
     from litellm.types.utils import ModelInfo as _ModelInfoType
+    from litellm.types.utils import PriorityReservationSettings
     from litellm.llms.custom_httpx.http_handler import AsyncHTTPHandler, HTTPHandler
     from litellm.caching.caching import Cache
 
diff --git a/litellm/proxy/proxy_server.py b/litellm/proxy/proxy_server.py
index ed7c5f8c2f3..83b01ed99b1 100644
--- a/litellm/proxy/proxy_server.py
+++ b/litellm/proxy/proxy_server.py
@@ -203,13 +203,13 @@ from litellm.proxy.agent_endpoints.endpoints import router as agent_endpoints_ro
 from litellm.proxy.analytics_endpoints.analytics_endpoints import (
     router as analytics_router,
 )
+from litellm.proxy.anthropic_endpoints.claude_code_endpoints import (
+    claude_code_marketplace_router,
+)
 from litellm.proxy.anthropic_endpoints.endpoints import router as anthropic_router
 from litellm.proxy.anthropic_endpoints.skills_endpoints import (
     router as anthropic_skills_router,
 )
-from litellm.proxy.anthropic_endpoints.claude_code_endpoints import (
-    claude_code_marketplace_router,
-)
 from litellm.proxy.auth.auth_checks import (
     ExperimentalUIJWTToken,
     get_team_object,
@@ -334,6 +334,7 @@ from litellm.proxy.management_endpoints.model_management_endpoints import (
 from litellm.proxy.management_endpoints.organization_endpoints import (
     router as organization_router,
 )
+from litellm.proxy.management_endpoints.policy_endpoints import router as policy_router
 from litellm.proxy.management_endpoints.router_settings_endpoints import (
     router as router_settings_router,
 )
@@ -2771,6 +2772,13 @@ class ProxyConfig:
                 llm_router=router,
             )
 
+        # Policy Engine settings
+        await self._init_policy_engine(
+            config=config,
+            prisma_client=prisma_client,
+            llm_router=router,
+        )
+
         ## Prompt settings
         prompts: Optional[List[Dict]] = None
         if config is not None:
@@ -2831,6 +2839,44 @@ class ProxyConfig:
             )
         pass
 
+    async def _init_policy_engine(
+        self,
+        config: Optional[dict],
+        prisma_client: Optional["PrismaClient"],
+        llm_router: Optional["Router"],
+    ):
+        """
+        Initialize the policy engine from config.
+
+        Args:
+            config: The proxy configuration dictionary
+            prisma_client: Optional Prisma client for DB validation
+            llm_router: Optional LLM router for model validation
+        """
+        if config is None:
+            return
+
+        policies_config = config.get("policies", None)
+        if not policies_config:
+            return
+
+        from litellm.proxy.policy_engine.init_policies import init_policies
+        from litellm.proxy.policy_engine.policy_validator import PolicyValidator
+
+        # Create validator with router for model validation
+        validator = PolicyValidator(
+            prisma_client=prisma_client,
+            llm_router=llm_router,
+        )
+
+        # Initialize policies
+        await init_policies(
+            policies_config=policies_config,
+            prisma_client=prisma_client,
+            validate_db=prisma_client is not None,
+            fail_on_error=True,
+        )
+
     def _load_alerting_settings(self, general_settings: dict):
         """
         Initialize alerting settings
@@ -10655,6 +10701,7 @@ app.include_router(cloudzero_router)
 app.include_router(caching_router)
 app.include_router(analytics_router)
 app.include_router(guardrails_router)
+app.include_router(policy_router)
 app.include_router(search_tool_management_router)
 app.include_router(prompts_router)
 app.include_router(callback_management_endpoints_router)