diff --git a/litellm/__init__.py b/litellm/__init__.py
index e5c09702b9b..46124bf8363 100644
--- a/litellm/__init__.py
+++ b/litellm/__init__.py
@@ -80,6 +80,10 @@
 litellm_mode = os.getenv("LITELLM_MODE", "DEV")  # "PRODUCTION", "DEV"
 if litellm_mode == "DEV":
     dotenv.load_dotenv()
+
+# Import default_encoding to ensure environment variables are initialized at import time
+from litellm.litellm_core_utils import default_encoding  # noqa: F401
+
 ####################################################
 if set_verbose:
     _turn_on_debug()