diff --git a/litellm/llms/gdc/chat/transformation.py b/litellm/llms/gdc/chat/transformation.py
index 61631920a64..dd179b30fc6 100644
--- a/litellm/llms/gdc/chat/transformation.py
+++ b/litellm/llms/gdc/chat/transformation.py
@@ -155,9 +155,28 @@ class GDCGeminiConfig(OpenAILikeChatConfig):
 
         return token
 
-    def _load_creds_from_key(self, api_key: str) -> tuple[Any, bool]:
+    def _allow_local_file_access(self) -> bool:
+        """Whether a caller-supplied service account file path in api_key may be opened.
+
+        Gated strictly on the ``GDC_ALLOW_LOCAL_FILE_ACCESS`` environment variable.
+        """
+        return self._read_env_bool(None, "GDC_ALLOW_LOCAL_FILE_ACCESS", default=False)
+
+    def _load_creds_from_key(self, api_key: str, model: str | None = None) -> tuple[Any, bool]:
+        """Helper to safely parse service account JSON files or strings to reduce complexity."""
         import google.auth
 
+        # Security hardening: Prevent local file inclusion (LFI) via api_key by default.
+        # Only allow opening local file paths if explicitly enabled via GDC_ALLOW_LOCAL_FILE_ACCESS env var.
+        allow_local_file = self._allow_local_file_access()
+
+        # Limit length to avoid OSError for 'File name too long'
+        if allow_local_file and len(api_key) < 2000 and os.path.exists(api_key):
+            with open(api_key, "r") as f:
+                json_obj = json.load(f)
+            creds, _ = google.auth.load_credentials_from_dict(json_obj)
+            return creds, True
+
         try:
             json_obj = json.loads(api_key)
         except json.JSONDecodeError:
diff --git a/tests/test_litellm/llms/gdc/chat/test_gdc_chat_transformation.py b/tests/test_litellm/llms/gdc/chat/test_gdc_chat_transformation.py
index d106cf7ea21..799fd374212 100644
--- a/tests/test_litellm/llms/gdc/chat/test_gdc_chat_transformation.py
+++ b/tests/test_litellm/llms/gdc/chat/test_gdc_chat_transformation.py
@@ -715,3 +715,25 @@ class TestCompleteGDC:
 
         _, kwargs = mock_completion.call_args
         assert kwargs["api_base"] == "https://gdc-specific.com"
+
+    @patch("google.auth.load_credentials_from_dict")
+    @patch("builtins.open", new_callable=MagicMock)
+    @patch("os.path.exists", return_value=True)
+    def test_load_creds_from_key_local_file_safety(self, mock_exists, mock_open, mock_load_creds):
+        config = GDCGeminiConfig()
+        fake_path = "/tmp/fake_service_account.json"
+        
+        # 1. By default, local file access must be blocked (prevents LFI via api_key)
+        mock_open.reset_mock()
+        creds, is_sa = config._load_creds_from_key(fake_path, TEST_MODEL)
+        mock_open.assert_not_called()
+        
+        # 2. When enabled via GDC_ALLOW_LOCAL_FILE_ACCESS env var, file access should be allowed
+        with patch.dict(os.environ, {"GDC_ALLOW_LOCAL_FILE_ACCESS": "true"}):
+            mock_open.reset_mock()
+            mock_open.return_value.__enter__.return_value.read.return_value = '{"type": "service_account"}'
+            mock_load_creds.return_value = (MagicMock(), None)
+            creds, is_sa = config._load_creds_from_key(fake_path, TEST_MODEL)
+            mock_open.assert_called_once_with(fake_path, "r")
+            assert creds is not None
+            assert is_sa is True