diff --git a/tests/local_testing/test_router_client_init.py b/tests/local_testing/test_router_client_init.py
index dc0f4f237d0..1440dfecaad 100644
--- a/tests/local_testing/test_router_client_init.py
+++ b/tests/local_testing/test_router_client_init.py
@@ -137,6 +137,7 @@ def test_router_init_azure_service_principal_with_secret_with_environment_variab
     mocked_os_lib: MagicMock,
     mocked_credential: MagicMock,
     mocked_get_bearer_token_provider: MagicMock,
+    monkeypatch,
 ) -> None:
     """
     Test router initialization and sample completion using Azure Service Principal with Secret authentication workflow,
@@ -145,6 +146,7 @@ def test_router_init_azure_service_principal_with_secret_with_environment_variab
     To allow for local testing without real credentials, first must mock Azure SDK authentication functions
     and environment variables.
     """
+    monkeypatch.delenv("AZURE_API_KEY", raising=False)
     litellm.enable_azure_ad_token_refresh = True
     # mock the token provider function
     mocked_func_generating_token = MagicMock(return_value="test_token")