diff --git a/enterprise/litellm_enterprise/proxy/guardrails/endpoints.py b/enterprise/litellm_enterprise/proxy/guardrails/endpoints.py
index cdf86dcea67..8b42b2549cd 100644
--- a/enterprise/litellm_enterprise/proxy/guardrails/endpoints.py
+++ b/enterprise/litellm_enterprise/proxy/guardrails/endpoints.py
@@ -36,6 +36,8 @@ async def apply_guardrail(
     if active_guardrail is None:
         raise Exception(f"Guardrail {request.guardrail_name} not found")
 
-    return await active_guardrail.apply_guardrail(
+    response_text = await active_guardrail.apply_guardrail(
         text=request.text, language=request.language, entities=request.entities
     )
+
+    return ApplyGuardrailResponse(response_text=response_text)
diff --git a/tests/enterprise/litellm_enterprise/proxy/guardrails/test_apply_guardrail_endpoint.py b/tests/enterprise/litellm_enterprise/proxy/guardrails/test_apply_guardrail_endpoint.py
new file mode 100644
index 00000000000..15b59724a3b
--- /dev/null
+++ b/tests/enterprise/litellm_enterprise/proxy/guardrails/test_apply_guardrail_endpoint.py
@@ -0,0 +1,156 @@
+"""
+Test the /guardrails/apply_guardrail endpoint
+"""
+import sys
+import os
+import pytest
+from unittest.mock import AsyncMock, Mock, patch
+
+sys.path.insert(0, os.path.abspath("../../../../.."))
+
+from fastapi import HTTPException
+from litellm.types.guardrails import ApplyGuardrailRequest, ApplyGuardrailResponse
+from litellm.proxy._types import UserAPIKeyAuth
+from litellm.integrations.custom_guardrail import CustomGuardrail
+
+
+@pytest.mark.asyncio
+async def test_apply_guardrail_endpoint_returns_correct_response():
+    """Test that apply_guardrail endpoint returns ApplyGuardrailResponse object"""
+    from enterprise.litellm_enterprise.proxy.guardrails.endpoints import apply_guardrail
+    
+    # Mock the guardrail registry
+    with patch("enterprise.litellm_enterprise.proxy.guardrails.endpoints.GUARDRAIL_REGISTRY") as mock_registry:
+        # Create a mock guardrail
+        mock_guardrail = Mock(spec=CustomGuardrail)
+        mock_guardrail.apply_guardrail = AsyncMock(return_value="Redacted text: [REDACTED] and [REDACTED]")
+        
+        # Configure the registry to return our mock guardrail
+        mock_registry.get_initialized_guardrail_callback.return_value = mock_guardrail
+        
+        # Create the request
+        request = ApplyGuardrailRequest(
+            guardrail_name="test-guardrail",
+            text="Test text with PII",
+            language="en",
+            entities=["EMAIL_ADDRESS", "PERSON"]
+        )
+        
+        # Create a mock user API key
+        user_api_key_dict = UserAPIKeyAuth(api_key="test-key")
+        
+        # Call the endpoint
+        response = await apply_guardrail(request=request, user_api_key_dict=user_api_key_dict)
+        
+        # Verify the response is of the correct type
+        assert isinstance(response, ApplyGuardrailResponse)
+        assert response.response_text == "Redacted text: [REDACTED] and [REDACTED]"
+        
+        # Verify the guardrail was called with correct parameters
+        mock_guardrail.apply_guardrail.assert_called_once_with(
+            text="Test text with PII",
+            language="en",
+            entities=["EMAIL_ADDRESS", "PERSON"]
+        )
+
+
+@pytest.mark.asyncio
+async def test_apply_guardrail_endpoint_guardrail_not_found():
+    """Test that apply_guardrail endpoint raises exception when guardrail not found"""
+    from enterprise.litellm_enterprise.proxy.guardrails.endpoints import apply_guardrail
+    
+    # Mock the guardrail registry to return None
+    with patch("enterprise.litellm_enterprise.proxy.guardrails.endpoints.GUARDRAIL_REGISTRY") as mock_registry:
+        mock_registry.get_initialized_guardrail_callback.return_value = None
+        
+        # Create the request
+        request = ApplyGuardrailRequest(
+            guardrail_name="non-existent-guardrail",
+            text="Test text",
+            language="en"
+        )
+        
+        # Create a mock user API key
+        user_api_key_dict = UserAPIKeyAuth(api_key="test-key")
+        
+        # Verify exception is raised
+        with pytest.raises(Exception) as exc_info:
+            await apply_guardrail(request=request, user_api_key_dict=user_api_key_dict)
+        
+        assert "Guardrail non-existent-guardrail not found" in str(exc_info.value)
+
+
+@pytest.mark.asyncio
+async def test_apply_guardrail_endpoint_with_presidio_guardrail():
+    """Test apply_guardrail endpoint with a Presidio-like guardrail"""
+    from enterprise.litellm_enterprise.proxy.guardrails.endpoints import apply_guardrail
+    
+    # Mock the guardrail registry
+    with patch("enterprise.litellm_enterprise.proxy.guardrails.endpoints.GUARDRAIL_REGISTRY") as mock_registry:
+        # Create a mock guardrail that simulates Presidio behavior
+        mock_guardrail = Mock(spec=CustomGuardrail)
+        # Simulate masking PII entities
+        mock_guardrail.apply_guardrail = AsyncMock(
+            return_value="My name is [PERSON] and my email is [EMAIL_ADDRESS]"
+        )
+        
+        # Configure the registry to return our mock guardrail
+        mock_registry.get_initialized_guardrail_callback.return_value = mock_guardrail
+        
+        # Create the request
+        request = ApplyGuardrailRequest(
+            guardrail_name="pii-detection-guard",
+            text="My name is John Doe and my email is john@example.com",
+            language="en",
+            entities=["EMAIL_ADDRESS", "PERSON"]
+        )
+        
+        # Create a mock user API key
+        user_api_key_dict = UserAPIKeyAuth(api_key="test-key")
+        
+        # Call the endpoint
+        response = await apply_guardrail(request=request, user_api_key_dict=user_api_key_dict)
+        
+        # Verify the response is of the correct type
+        assert isinstance(response, ApplyGuardrailResponse)
+        assert response.response_text == "My name is [PERSON] and my email is [EMAIL_ADDRESS]"
+        assert "john@example.com" not in response.response_text
+        assert "John Doe" not in response.response_text
+
+
+@pytest.mark.asyncio
+async def test_apply_guardrail_endpoint_without_optional_params():
+    """Test apply_guardrail endpoint without optional language and entities parameters"""
+    from enterprise.litellm_enterprise.proxy.guardrails.endpoints import apply_guardrail
+    
+    # Mock the guardrail registry
+    with patch("enterprise.litellm_enterprise.proxy.guardrails.endpoints.GUARDRAIL_REGISTRY") as mock_registry:
+        # Create a mock guardrail
+        mock_guardrail = Mock(spec=CustomGuardrail)
+        mock_guardrail.apply_guardrail = AsyncMock(return_value="Processed text")
+        
+        # Configure the registry to return our mock guardrail
+        mock_registry.get_initialized_guardrail_callback.return_value = mock_guardrail
+        
+        # Create the request without optional parameters
+        request = ApplyGuardrailRequest(
+            guardrail_name="test-guardrail",
+            text="Test text"
+        )
+        
+        # Create a mock user API key
+        user_api_key_dict = UserAPIKeyAuth(api_key="test-key")
+        
+        # Call the endpoint
+        response = await apply_guardrail(request=request, user_api_key_dict=user_api_key_dict)
+        
+        # Verify the response is of the correct type
+        assert isinstance(response, ApplyGuardrailResponse)
+        assert response.response_text == "Processed text"
+        
+        # Verify the guardrail was called with None for optional parameters
+        mock_guardrail.apply_guardrail.assert_called_once_with(
+            text="Test text",
+            language=None,
+            entities=None
+        )