diff --git a/src/crewai/llm.py b/src/crewai/llm.py
index 8227a28e7..b93b2b4b5 100644
--- a/src/crewai/llm.py
+++ b/src/crewai/llm.py
@@ -956,23 +956,42 @@ class LLM(BaseLLM):
                 self.context_window_size = int(value * CONTEXT_WINDOW_USAGE_RATIO)
         return self.context_window_size
 
-    def set_callbacks(self, callbacks: List[Any]):
+    def set_callbacks(self, callbacks: List[Any]) -> None:
         """
         Attempt to keep a single set of callbacks in litellm by removing old
         duplicates and adding new ones.
+        
+        This method safely updates the litellm callback lists by:
+        1. Identifying the types of new callbacks
+        2. Filtering out existing callbacks of the same types
+        3. Setting the new callbacks
+        
+        Args:
+            callbacks: List of callback objects to set in litellm
+            
+        Returns:
+            None
+            
+        Note:
+            Uses list comprehension to avoid "list.remove(x): x not in list" errors
+            that can occur with direct removal during iteration.
         """
-        with suppress_warnings():
-            callback_types = [type(callback) for callback in callbacks]
-            
-            litellm.success_callback = [
-                cb for cb in litellm.success_callback if type(cb) not in callback_types
-            ]
-            
-            litellm._async_success_callback = [
-                cb for cb in litellm._async_success_callback if type(cb) not in callback_types
-            ]
-            
-            litellm.callbacks = callbacks
+        try:
+            with suppress_warnings():
+                callback_types = [type(callback) for callback in callbacks]
+                
+                litellm.success_callback = [
+                    cb for cb in litellm.success_callback if type(cb) not in callback_types
+                ]
+                
+                litellm._async_success_callback = [
+                    cb for cb in litellm._async_success_callback if type(cb) not in callback_types
+                ]
+                
+                litellm.callbacks = callbacks
+        except Exception as e:
+            logging.error(f"Error setting callbacks: {str(e)}")
+            raise
 
     def set_env_callbacks(self):
         """
diff --git a/tests/test_set_callbacks_handles_removed_callbacks.py b/tests/test_set_callbacks_handles_removed_callbacks.py
index 25d221af9..fb67476b3 100644
--- a/tests/test_set_callbacks_handles_removed_callbacks.py
+++ b/tests/test_set_callbacks_handles_removed_callbacks.py
@@ -1,4 +1,4 @@
-from typing import Any
+from typing import Any, List
 
 import litellm
 import pytest
@@ -6,35 +6,100 @@ import pytest
 from crewai.llm import LLM
 
 
-def test_set_callbacks_handles_removed_callbacks():
-    """Test that set_callbacks handles the case where callbacks are removed during iteration."""
-    class CustomCallback:
-        pass
+class CustomCallback:
+    """A simple callback class for testing."""
+    pass
 
+
+class DifferentCallback:
+    """A different callback class for testing type differentiation."""
+    pass
+
+
+@pytest.fixture
+def reset_litellm_callbacks():
+    """Fixture to reset litellm callbacks after each test."""
     original_success_callback = litellm.success_callback
     original_async_success_callback = litellm._async_success_callback
     
-    try:
-        litellm.success_callback = []
-        litellm._async_success_callback = []
-        
-        llm = LLM(model="test-model")
-        
-        callback1 = CustomCallback()
-        callback2 = CustomCallback()
-        litellm.success_callback.append(callback1)
-        litellm.success_callback.append(callback2)
-        
-        new_callback = CustomCallback()
-        
-        litellm.success_callback.remove(callback1)
-        
-        llm.set_callbacks([new_callback])
-        
-        assert litellm.callbacks == [new_callback]
-        
-        assert len([cb for cb in litellm.success_callback if isinstance(cb, CustomCallback)]) == 0
+    yield
     
-    finally:
-        litellm.success_callback = original_success_callback
-        litellm._async_success_callback = original_async_success_callback
+    litellm.success_callback = original_success_callback
+    litellm._async_success_callback = original_async_success_callback
+
+
+def test_set_callbacks_handles_removed_callbacks(reset_litellm_callbacks):
+    """Test that set_callbacks handles the case where callbacks are removed during iteration."""
+    litellm.success_callback = []
+    litellm._async_success_callback = []
+    
+    llm = LLM(model="test-model")
+    
+    callback1 = CustomCallback()
+    callback2 = CustomCallback()
+    litellm.success_callback.append(callback1)
+    litellm.success_callback.append(callback2)
+    
+    new_callback = CustomCallback()
+    
+    litellm.success_callback.remove(callback1)
+    
+    llm.set_callbacks([new_callback])
+    
+    assert litellm.callbacks == [new_callback]
+    assert len([cb for cb in litellm.success_callback if isinstance(cb, CustomCallback)]) == 0
+
+
+@pytest.mark.parametrize("callback_count", [1, 3, 5])
+def test_set_callbacks_with_different_sizes(callback_count, reset_litellm_callbacks):
+    """Test with various numbers of callbacks."""
+    litellm.success_callback = []
+    litellm._async_success_callback = []
+    
+    llm = LLM(model="test-model")
+    
+    callbacks = [CustomCallback() for _ in range(callback_count)]
+    for callback in callbacks:
+        litellm.success_callback.append(callback)
+    
+    new_callback = CustomCallback()
+    
+    llm.set_callbacks([new_callback])
+    
+    assert litellm.callbacks == [new_callback]
+    assert len([cb for cb in litellm.success_callback if isinstance(cb, CustomCallback)]) == 0
+
+
+def test_set_callbacks_with_different_types(reset_litellm_callbacks):
+    """Test that callbacks of different types are handled correctly."""
+    litellm.success_callback = []
+    litellm._async_success_callback = []
+    
+    llm = LLM(model="test-model")
+    
+    custom_callback = CustomCallback()
+    different_callback = DifferentCallback()
+    
+    litellm.success_callback.append(custom_callback)
+    litellm.success_callback.append(different_callback)
+    
+    llm.set_callbacks([CustomCallback()])
+    
+    assert any(isinstance(cb, DifferentCallback) for cb in litellm.success_callback)
+    assert not any(isinstance(cb, CustomCallback) for cb in litellm.success_callback)
+
+
+def test_set_callbacks_with_empty_list(reset_litellm_callbacks):
+    """Test setting callbacks with an empty list."""
+    litellm.success_callback = []
+    litellm._async_success_callback = []
+    
+    llm = LLM(model="test-model")
+    
+    custom_callback = CustomCallback()
+    litellm.success_callback.append(custom_callback)
+    
+    llm.set_callbacks([])
+    
+    assert litellm.callbacks == []
+    assert custom_callback in litellm.success_callback