diff --git a/litellm/llms/cohere/embed/v1_transformation.py b/litellm/llms/cohere/embed/v1_transformation.py
index e55899a4afa..1a4bc393e84 100644
--- a/litellm/llms/cohere/embed/v1_transformation.py
+++ b/litellm/llms/cohere/embed/v1_transformation.py
@@ -123,10 +123,23 @@ class CohereEmbeddingConfig:
         """
         embeddings = response_json["embeddings"]
         output_data = []
-        for idx, embedding in enumerate(embeddings):
-            output_data.append(
-                {"object": "embedding", "index": idx, "embedding": embedding}
-            )
+        is_embeddings_by_type = response_json.get("response_type") == "embeddings_by_type"
+        if is_embeddings_by_type:
+            for embedding_type in embeddings:
+                for idx, embedding in enumerate(embeddings[embedding_type]):
+                    output_data.append(
+                        {
+                            "object": "embedding",
+                            "index": idx,
+                            "embedding": embedding,
+                            "type": embedding_type,
+                        }
+                    )
+        else:
+            for idx, embedding in enumerate(embeddings):
+                output_data.append(
+                    {"object": "embedding", "index": idx, "embedding": embedding}
+                )
         model_response.object = "list"
         model_response.data = output_data
         model_response.model = model
diff --git a/tests/test_litellm/llms/cohere/embed/test_v1_transformation.py b/tests/test_litellm/llms/cohere/embed/test_v1_transformation.py
new file mode 100644
index 00000000000..06ca8b5eeff
--- /dev/null
+++ b/tests/test_litellm/llms/cohere/embed/test_v1_transformation.py
@@ -0,0 +1,225 @@
+import os
+import sys
+from unittest.mock import MagicMock
+
+sys.path.insert(
+    0, os.path.abspath("../../../../..")
+)  # Adds the parent directory to the system path
+
+from litellm.llms.cohere.embed.v1_transformation import CohereEmbeddingConfig
+from litellm.types.utils import EmbeddingResponse
+
+
+class TestCohereEmbeddingV1Transform:
+    def setup_method(self):
+        self.config = CohereEmbeddingConfig()
+        self.model = "embed-english-v3.0"
+        self.logging_obj = MagicMock()
+        self.encoding = MagicMock()
+        # Mock the encoding to return a fixed token count
+        self.encoding.encode = MagicMock(return_value=[1, 2, 3, 4, 5])
+
+    def test_transform_response_regular_embeddings(self):
+        """Test that regular embeddings are correctly transformed"""
+        # Mock httpx.Response
+        mock_response = MagicMock()
+        response_json = {
+            "embeddings": [
+                [0.1, 0.2, 0.3],
+                [0.4, 0.5, 0.6],
+            ],
+            "meta": {
+                "billed_units": {
+                    "input_tokens": 10
+                }
+            }
+        }
+        mock_response.json = MagicMock(return_value=response_json)
+
+        input_data = ["test text 1", "test text 2"]
+        data = {"texts": input_data, "input_type": "search_query"}
+        model_response = EmbeddingResponse()
+
+        result = self.config._transform_response(
+            response=mock_response,
+            api_key="test-api-key",
+            logging_obj=self.logging_obj,
+            data=data,
+            model_response=model_response,
+            model=self.model,
+            encoding=self.encoding,
+            input=input_data,
+        )
+
+        # Verify the response structure
+        assert result.object == "list"
+        assert result.model == self.model
+        assert len(result.data) == 2
+        
+        # Verify each embedding object
+        assert result.data[0]["object"] == "embedding"
+        assert result.data[0]["index"] == 0
+        assert result.data[0]["embedding"] == [0.1, 0.2, 0.3]
+        assert "type" not in result.data[0]
+        
+        assert result.data[1]["object"] == "embedding"
+        assert result.data[1]["index"] == 1
+        assert result.data[1]["embedding"] == [0.4, 0.5, 0.6]
+        assert "type" not in result.data[1]
+
+        # Verify usage
+        assert result.usage is not None
+        assert result.usage.prompt_tokens == 10
+        assert result.usage.total_tokens == 10
+        assert result.usage.completion_tokens == 0
+
+    def test_transform_response_embeddings_by_type(self):
+        """Test that embeddings_by_type are correctly transformed"""
+        # Mock httpx.Response
+        mock_response = MagicMock()
+        response_json = {
+            "response_type": "embeddings_by_type",
+            "embeddings": {
+                "float": [
+                    [0.1, 0.2, 0.3],
+                    [0.4, 0.5, 0.6],
+                ],
+                "int8": [
+                    [1, 2, 3],
+                    [4, 5, 6],
+                ],
+            },
+            "meta": {
+                "billed_units": {
+                    "input_tokens": 10
+                }
+            }
+        }
+        mock_response.json = MagicMock(return_value=response_json)
+
+        input_data = ["test text 1", "test text 2"]
+        data = {"texts": input_data, "input_type": "search_query", "embedding_types": ["float", "int8"]}
+        model_response = EmbeddingResponse()
+
+        result = self.config._transform_response(
+            response=mock_response,
+            api_key="test-api-key",
+            logging_obj=self.logging_obj,
+            data=data,
+            model_response=model_response,
+            model=self.model,
+            encoding=self.encoding,
+            input=input_data,
+        )
+
+        # Verify the response structure
+        assert result.object == "list"
+        assert result.model == self.model
+        assert len(result.data) == 4  # 2 texts * 2 embedding types
+        
+        # Verify float embeddings
+        assert result.data[0]["object"] == "embedding"
+        assert result.data[0]["index"] == 0
+        assert result.data[0]["embedding"] == [0.1, 0.2, 0.3]
+        assert result.data[0]["type"] == "float"
+        
+        assert result.data[1]["object"] == "embedding"
+        assert result.data[1]["index"] == 1
+        assert result.data[1]["embedding"] == [0.4, 0.5, 0.6]
+        assert result.data[1]["type"] == "float"
+
+        # Verify int8 embeddings
+        assert result.data[2]["object"] == "embedding"
+        assert result.data[2]["index"] == 0
+        assert result.data[2]["embedding"] == [1, 2, 3]
+        assert result.data[2]["type"] == "int8"
+        
+        assert result.data[3]["object"] == "embedding"
+        assert result.data[3]["index"] == 1
+        assert result.data[3]["embedding"] == [4, 5, 6]
+        assert result.data[3]["type"] == "int8"
+
+        # Verify usage
+        assert result.usage is not None
+        assert result.usage.prompt_tokens == 10
+        assert result.usage.total_tokens == 10
+        assert result.usage.completion_tokens == 0
+
+    def test_transform_response_with_image_tokens(self):
+        """Test that image token billing is correctly handled"""
+        # Mock httpx.Response
+        mock_response = MagicMock()
+        response_json = {
+            "embeddings": [
+                [0.1, 0.2, 0.3],
+            ],
+            "meta": {
+                "billed_units": {
+                    "input_tokens": 5,
+                    "images": 100
+                }
+            }
+        }
+        mock_response.json = MagicMock(return_value=response_json)
+
+        input_data = ["test image"]
+        data = {"images": input_data, "input_type": "image"}
+        model_response = EmbeddingResponse()
+
+        result = self.config._transform_response(
+            response=mock_response,
+            api_key="test-api-key",
+            logging_obj=self.logging_obj,
+            data=data,
+            model_response=model_response,
+            model=self.model,
+            encoding=self.encoding,
+            input=input_data,
+        )
+
+        # Verify usage includes both text and image tokens
+        assert result.usage is not None
+        assert result.usage.prompt_tokens == 105  # 5 text + 100 image
+        assert result.usage.total_tokens == 105
+        assert result.usage.completion_tokens == 0
+        assert result.usage.prompt_tokens_details is not None
+        assert result.usage.prompt_tokens_details.text_tokens == 5
+        assert result.usage.prompt_tokens_details.image_tokens == 100
+
+    def test_transform_response_fallback_token_counting(self):
+        """Test that token counting falls back to encoding when billed_units not present"""
+        # Mock httpx.Response
+        mock_response = MagicMock()
+        response_json = {
+            "embeddings": [
+                [0.1, 0.2, 0.3],
+            ],
+            "meta": {}  # No billed_units
+        }
+        mock_response.json = MagicMock(return_value=response_json)
+
+        input_data = ["test text"]
+        data = {"texts": input_data, "input_type": "search_query"}
+        model_response = EmbeddingResponse()
+
+        result = self.config._transform_response(
+            response=mock_response,
+            api_key="test-api-key",
+            logging_obj=self.logging_obj,
+            data=data,
+            model_response=model_response,
+            model=self.model,
+            encoding=self.encoding,
+            input=input_data,
+        )
+
+        # Verify usage uses encoding (mocked to return 5 tokens)
+        assert result.usage is not None
+        assert result.usage.prompt_tokens == 5
+        assert result.usage.total_tokens == 5
+        assert result.usage.completion_tokens == 0
+        assert result.usage.prompt_tokens_details is None
+        
+        # Verify encoding was called
+        self.encoding.encode.assert_called()
+