diff --git a/litellm/_logging.py b/litellm/_logging.py
index d5865777661..15c95996335 100644
--- a/litellm/_logging.py
+++ b/litellm/_logging.py
@@ -5,7 +5,7 @@ import re
 import sys
 from datetime import datetime
 from logging import Formatter
-from typing import Any, Dict, List, Optional, Union
+from typing import Any, Dict, List, Optional
 
 from litellm.litellm_core_utils.safe_json_dumps import safe_dumps
 from litellm.litellm_core_utils.safe_json_loads import safe_json_loads
@@ -17,7 +17,7 @@ if set_verbose is True:
         "`litellm.set_verbose` is deprecated. Please set `os.environ['LITELLM_LOG'] = 'DEBUG'` for debug logs."
     )
 
-_ENABLE_SECRET_REDACTION = os.getenv("LITELLM_REDACT_SECRETS") == "TRUE"
+_ENABLE_SECRET_REDACTION = os.getenv("LITELLM_REDACT_SECRETS", "").lower() == "true"
 
 _REDACTED = "REDACTED"
 
@@ -64,6 +64,8 @@ def _redact_string(value: str) -> str:
 class SecretRedactionFilter(logging.Filter):
     """Scrubs known secret/credential patterns from log records."""
 
+    _formatter = logging.Formatter()
+
     def filter(self, record: logging.LogRecord) -> bool:
         if not _ENABLE_SECRET_REDACTION:
             return True
@@ -75,6 +77,20 @@ class SecretRedactionFilter(logging.Filter):
             if isinstance(record.msg, str):
                 record.msg = _redact_string(record.msg)
 
+        # Redact exception tracebacks
+        if record.exc_info and record.exc_info[1] is not None:
+            try:
+                record.exc_text = _redact_string(
+                    self._formatter.formatException(record.exc_info)
+                )
+            except Exception:
+                pass
+
+        # Redact extra fields passed via logger.debug("msg", extra={...})
+        for key, value in record.__dict__.items():
+            if key not in _STANDARD_RECORD_ATTRS and isinstance(value, str):
+                setattr(record, key, _redact_string(value))
+
         return True
 
 
diff --git a/tests/test_litellm/test_secret_redaction.py b/tests/test_litellm/test_secret_redaction.py
index 6e634248651..6321f452f66 100644
--- a/tests/test_litellm/test_secret_redaction.py
+++ b/tests/test_litellm/test_secret_redaction.py
@@ -96,6 +96,42 @@ def test_filter_redacts_non_string_args():
     assert "REDACTED" in output
 
 
+def test_filter_redacts_exception_tracebacks():
+    """Secrets embedded in exception messages must be redacted in tracebacks."""
+
+    def log_messages():
+        try:
+            raise ValueError(f"Auth failed with key {SECRET}")
+        except ValueError:
+            verbose_logger.exception("Something went wrong")
+
+    output = _capture_logger_output(log_messages)
+    assert SECRET not in output
+    assert "REDACTED" in output
+    assert "Something went wrong" in output
+
+
+def test_filter_redacts_extra_fields():
+    """Secrets passed via extra={...} must be redacted on the record."""
+    record = logging.LogRecord(
+        name="test",
+        level=logging.DEBUG,
+        pathname="",
+        lineno=0,
+        msg="request completed",
+        args=(),
+        exc_info=None,
+    )
+    record.api_key = SECRET
+    record.region = "us-east-1"
+
+    _secret_filter.filter(record)
+
+    assert SECRET not in record.api_key
+    assert "REDACTED" in record.api_key
+    assert record.region == "us-east-1"
+
+
 def test_disable_redaction_passes_secrets_through():
     """When _ENABLE_SECRET_REDACTION is False, secrets pass through."""
     with patch("litellm._logging._ENABLE_SECRET_REDACTION", False):