diff --git a/.env.example b/.env.example
index 44ef9b936..7edceedd0 100644
--- a/.env.example
+++ b/.env.example
@@ -45,6 +45,17 @@ CYPHER_ENDPOINT=http://localhost:11434/v1
 # CYPHER_MODEL=gemini-2.5-flash
 # CYPHER_API_KEY=your-google-api-key
 
+# Example 6: LiteLLM with custom provider
+# ORCHESTRATOR_PROVIDER=litellm_proxy
+# ORCHESTRATOR_MODEL=gpt-oss:120b
+# ORCHESTRATOR_ENDPOINT=http://litellm:4000/v1
+# ORCHESTRATOR_API_KEY=sk-your-litellm-key
+
+# CYPHER_PROVIDER=litellm_proxy
+# CYPHER_MODEL=openrouter/gpt-oss:120b
+# CYPHER_ENDPOINT=http://litellm:4000/v1
+# CYPHER_API_KEY=sk-your-litellm-key
+
 # Memgraph settings
 MEMGRAPH_HOST=localhost
 MEMGRAPH_PORT=7687
diff --git a/codebase_rag/providers/base.py b/codebase_rag/providers/base.py
index d525c1e27..a94b4c283 100644
--- a/codebase_rag/providers/base.py
+++ b/codebase_rag/providers/base.py
@@ -166,6 +166,16 @@ def create_model(self, model_id: str, **kwargs: Any) -> OpenAIModel:
     "ollama": OllamaProvider,
 }
 
+# Import LiteLLM provider after base classes are defined to avoid circular import
+try:
+    from .litellm import LiteLLMProvider
+
+    PROVIDER_REGISTRY["litellm_proxy"] = LiteLLMProvider
+    _litellm_available = True
+except ImportError as e:
+    logger.debug(f"LiteLLM provider not available: {e}")
+    _litellm_available = False
+
 
 def get_provider(provider_name: str, **config: Any) -> ModelProvider:
     """Factory function to create a provider instance."""
@@ -199,3 +209,44 @@ def check_ollama_running(endpoint: str = "http://localhost:11434") -> bool:
             return bool(response.status_code == 200)
     except (httpx.RequestError, httpx.TimeoutException):
         return False
+
+
+def check_litellm_proxy_running(
+    endpoint: str = "http://localhost:4000", api_key: str | None = None
+) -> bool:
+    """Check if LiteLLM proxy is running and accessible.
+
+    Args:
+        endpoint: Base URL of the LiteLLM proxy server
+        api_key: Optional API key for authenticated proxies
+
+    Returns:
+        True if the proxy is accessible, False otherwise
+    """
+    try:
+        base_url = endpoint.rstrip("/v1").rstrip("/")
+
+        # Try health endpoint first (works for unauthenticated proxies)
+        health_url = urljoin(base_url, "/health")
+        headers = {}
+        if api_key:
+            headers["Authorization"] = f"Bearer {api_key}"
+
+        with httpx.Client(timeout=5.0) as client:
+            response = client.get(health_url, headers=headers)
+
+            # If health endpoint works, we're good
+            if response.status_code == 200:
+                return True
+
+            # If health endpoint fails (401, 404, 405, 500, etc.),
+            # try the models endpoint as a fallback when we have an API key
+            if api_key:
+                models_url = urljoin(base_url, "/v1/models")
+                response = client.get(models_url, headers=headers)
+                # Accept 200 (success) - server is up and API key works
+                return bool(response.status_code == 200)
+
+            return False
+    except (httpx.RequestError, httpx.TimeoutException):
+        return False
diff --git a/codebase_rag/providers/litellm.py b/codebase_rag/providers/litellm.py
new file mode 100644
index 000000000..9095bfe52
--- /dev/null
+++ b/codebase_rag/providers/litellm.py
@@ -0,0 +1,62 @@
+"""LiteLLM provider using pydantic-ai's native LiteLLMProvider."""
+
+from typing import Any
+
+from loguru import logger
+from pydantic_ai.models.openai import OpenAIChatModel
+from pydantic_ai.providers.litellm import LiteLLMProvider as PydanticLiteLLMProvider
+
+from .base import ModelProvider
+
+
+class LiteLLMProvider(ModelProvider):
+    def __init__(
+        self,
+        api_key: str | None = None,
+        endpoint: str = "http://localhost:4000/v1",
+        **kwargs: Any,
+    ) -> None:
+        super().__init__(**kwargs)
+        self.api_key = api_key
+        self.endpoint = endpoint
+
+    @property
+    def provider_name(self) -> str:
+        return "litellm_proxy"
+
+    def validate_config(self) -> None:
+        if not self.endpoint:
+            raise ValueError(
+                "LiteLLM provider requires endpoint. "
+                "Set ORCHESTRATOR_ENDPOINT or CYPHER_ENDPOINT in .env file."
+            )
+
+        # Check if LiteLLM proxy is running
+        # Import locally to avoid circular import
+        from .base import check_litellm_proxy_running
+
+        base_url = self.endpoint.rstrip("/v1").rstrip("/")
+        if not check_litellm_proxy_running(base_url, api_key=self.api_key):
+            raise ValueError(
+                f"LiteLLM proxy server not responding at {base_url}. "
+                f"Make sure LiteLLM proxy is running and API key is valid."
+            )
+
+    def create_model(self, model_id: str, **kwargs: Any) -> OpenAIChatModel:
+        """Create OpenAI-compatible model for LiteLLM proxy.
+
+        Args:
+            model_id: Model identifier (e.g., "openai/gpt-3.5-turbo", "anthropic/claude-3")
+            **kwargs: Additional arguments passed to OpenAIChatModel
+
+        Returns:
+            OpenAIChatModel configured to use the LiteLLM proxy
+        """
+        self.validate_config()
+
+        logger.info(f"Creating LiteLLM proxy model: {model_id} at {self.endpoint}")
+
+        # Use pydantic-ai's native LiteLLMProvider
+        provider = PydanticLiteLLMProvider(api_key=self.api_key, api_base=self.endpoint)
+
+        return OpenAIChatModel(model_id, provider=provider, **kwargs)
diff --git a/pyproject.toml b/pyproject.toml
index 6be0c2979..28c8ea85e 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -7,7 +7,7 @@ requires-python = ">=3.12"
 dependencies = [
     "loguru>=0.7.3",
     "mcp>=1.21.1",
-    "pydantic-ai-slim[google,openai,vertexai]>=0.2.18",
+    "pydantic-ai-slim[google,openai,vertexai]>=1.18.0",
     "pydantic-settings>=2.0.0",
     "pymgclient>=1.4.0",
     "python-dotenv>=1.1.0",