diff --git a/tests/test_litellm/proxy/management_endpoints/test_internal_user_endpoints.py b/tests/test_litellm/proxy/management_endpoints/test_internal_user_endpoints.py
index 33f2a75fac6..397a6af556f 100644
--- a/tests/test_litellm/proxy/management_endpoints/test_internal_user_endpoints.py
+++ b/tests/test_litellm/proxy/management_endpoints/test_internal_user_endpoints.py
@@ -12,6 +12,7 @@
 
 from litellm.proxy._types import (
     LiteLLM_UserTableFiltered,
+    LitellmUserRoles,
     NewUserRequest,
     ProxyException,
     UpdateUserRequest,
@@ -306,6 +307,88 @@ async def mock_check_duplicate_user_id(*args, **kwargs):
     mock_license_check.is_over_limit.assert_called_once_with(total_users=1000)
 
 
+@pytest.mark.asyncio
+async def test_new_user_non_admin_cannot_create_admin(mocker):
+    """
+    Test that non-admin users cannot create administrative users (PROXY_ADMIN or PROXY_ADMIN_VIEW_ONLY).
+    This prevents privilege escalation vulnerabilities.
+    """
+    from litellm.proxy.management_endpoints.internal_user_endpoints import new_user
+
+    # Mock the prisma client
+    mock_prisma_client = mocker.MagicMock()
+
+    # Setup the mock count response (under license limit)
+    async def mock_count(*args, **kwargs):
+        return 5  # Low user count, under limit
+
+    mock_prisma_client.db.litellm_usertable.count = mock_count
+
+    # Mock duplicate checks to pass
+    async def mock_check_duplicate_user_email(*args, **kwargs):
+        return None  # No duplicate found
+
+    async def mock_check_duplicate_user_id(*args, **kwargs):
+        return None  # No duplicate found
+
+    mocker.patch(
+        "litellm.proxy.management_endpoints.internal_user_endpoints._check_duplicate_user_email",
+        mock_check_duplicate_user_email,
+    )
+    mocker.patch(
+        "litellm.proxy.management_endpoints.internal_user_endpoints._check_duplicate_user_id",
+        mock_check_duplicate_user_id,
+    )
+
+    # Mock the license check to return False (under limit)
+    mock_license_check = mocker.MagicMock()
+    mock_license_check.is_over_limit.return_value = False
+
+    # Patch the imports in the endpoint
+    mocker.patch("litellm.proxy.proxy_server.prisma_client", mock_prisma_client)
+    mocker.patch("litellm.proxy.proxy_server._license_check", mock_license_check)
+
+    # Test Case 1: INTERNAL_USER trying to create PROXY_ADMIN
+    user_request = NewUserRequest(
+        user_email="admin@example.com", user_role=LitellmUserRoles.PROXY_ADMIN
+    )
+
+    # Mock user_api_key_dict with non-admin role
+    mock_user_api_key_dict = UserAPIKeyAuth(
+        user_id="test_internal_user", user_role=LitellmUserRoles.INTERNAL_USER
+    )
+
+    # Call new_user function and expect ProxyException
+    with pytest.raises(ProxyException) as exc_info:
+        await new_user(data=user_request, user_api_key_dict=mock_user_api_key_dict)
+
+    # Verify the exception details
+    assert exc_info.value.code == 403 or exc_info.value.code == "403"
+    assert "Only proxy admins can create administrative users" in str(exc_info.value.message)
+    assert "proxy_admin" in str(exc_info.value.message)
+    assert "proxy_admin_viewer" in str(exc_info.value.message)
+    assert str(LitellmUserRoles.PROXY_ADMIN) in str(exc_info.value.message)
+    assert str(LitellmUserRoles.INTERNAL_USER) in str(exc_info.value.message)
+
+    # Test Case 2: INTERNAL_USER trying to create PROXY_ADMIN_VIEW_ONLY
+    user_request_viewer = NewUserRequest(
+        user_email="admin_viewer@example.com",
+        user_role=LitellmUserRoles.PROXY_ADMIN_VIEW_ONLY,
+    )
+
+    with pytest.raises(ProxyException) as exc_info2:
+        await new_user(
+            data=user_request_viewer, user_api_key_dict=mock_user_api_key_dict
+        )
+
+    # Verify the exception details
+    assert exc_info2.value.code == 403 or exc_info2.value.code == "403"
+    assert "Only proxy admins can create administrative users" in str(
+        exc_info2.value.message
+    )
+    assert str(LitellmUserRoles.PROXY_ADMIN_VIEW_ONLY) in str(exc_info2.value.message)
+
+
 @pytest.mark.asyncio
 async def test_user_info_url_encoding_plus_character(mocker):
     """