diff --git a/src/docker-manager.test.ts b/src/docker-manager.test.ts
index 8330509a..a908d0ba 100644
--- a/src/docker-manager.test.ts
+++ b/src/docker-manager.test.ts
@@ -1563,7 +1563,7 @@ describe('docker-manager', () => {
         const result = generateDockerCompose(configWithProxy, mockNetworkConfigWithProxy);
         const agent = result.services.agent;
         const env = agent.environment as Record<string, string>;
-        expect(env.OPENAI_BASE_URL).toBe('http://api-proxy:10000');
+        expect(env.OPENAI_BASE_URL).toBe('http://172.30.0.30:10000');
       });
 
       it('should configure HTTP_PROXY and HTTPS_PROXY in api-proxy to route through Squid', () => {
@@ -1580,7 +1580,7 @@ describe('docker-manager', () => {
         const result = generateDockerCompose(configWithProxy, mockNetworkConfigWithProxy);
         const agent = result.services.agent;
         const env = agent.environment as Record<string, string>;
-        expect(env.ANTHROPIC_BASE_URL).toBe('http://api-proxy:10001');
+        expect(env.ANTHROPIC_BASE_URL).toBe('http://172.30.0.30:10001');
       });
 
       it('should set both BASE_URL variables when both keys are provided', () => {
@@ -1588,8 +1588,8 @@ describe('docker-manager', () => {
         const result = generateDockerCompose(configWithProxy, mockNetworkConfigWithProxy);
         const agent = result.services.agent;
         const env = agent.environment as Record<string, string>;
-        expect(env.OPENAI_BASE_URL).toBe('http://api-proxy:10000');
-        expect(env.ANTHROPIC_BASE_URL).toBe('http://api-proxy:10001');
+        expect(env.OPENAI_BASE_URL).toBe('http://172.30.0.30:10000');
+        expect(env.ANTHROPIC_BASE_URL).toBe('http://172.30.0.30:10001');
       });
 
       it('should not set OPENAI_BASE_URL in agent when only Anthropic key is provided', () => {
@@ -1598,7 +1598,7 @@ describe('docker-manager', () => {
         const agent = result.services.agent;
         const env = agent.environment as Record<string, string>;
         expect(env.OPENAI_BASE_URL).toBeUndefined();
-        expect(env.ANTHROPIC_BASE_URL).toBe('http://api-proxy:10001');
+        expect(env.ANTHROPIC_BASE_URL).toBe('http://172.30.0.30:10001');
       });
 
       it('should not set ANTHROPIC_BASE_URL in agent when only OpenAI key is provided', () => {
@@ -1607,7 +1607,7 @@ describe('docker-manager', () => {
         const agent = result.services.agent;
         const env = agent.environment as Record<string, string>;
         expect(env.ANTHROPIC_BASE_URL).toBeUndefined();
-        expect(env.OPENAI_BASE_URL).toBe('http://api-proxy:10000');
+        expect(env.OPENAI_BASE_URL).toBe('http://172.30.0.30:10000');
       });
     });
   });
diff --git a/src/docker-manager.ts b/src/docker-manager.ts
index c4c2d239..d9533158 100644
--- a/src/docker-manager.ts
+++ b/src/docker-manager.ts
@@ -967,13 +967,14 @@ export function generateDockerCompose(
     environment.AWF_API_PROXY_IP = networkConfig.proxyIp;
 
     // Set environment variables in agent to use the proxy
+    // Use IP address instead of hostname to avoid DNS resolution issues
     if (config.openaiApiKey) {
-      environment.OPENAI_BASE_URL = `http://api-proxy:10000`;
-      logger.debug('OpenAI API will be proxied through sidecar at http://api-proxy:10000');
+      environment.OPENAI_BASE_URL = `http://${networkConfig.proxyIp}:10000`;
+      logger.debug(`OpenAI API will be proxied through sidecar at http://${networkConfig.proxyIp}:10000`);
     }
     if (config.anthropicApiKey) {
-      environment.ANTHROPIC_BASE_URL = `http://api-proxy:10001`;
-      logger.debug('Anthropic API will be proxied through sidecar at http://api-proxy:10001');
+      environment.ANTHROPIC_BASE_URL = `http://${networkConfig.proxyIp}:10001`;
+      logger.debug(`Anthropic API will be proxied through sidecar at http://${networkConfig.proxyIp}:10001`);
     }
 
     logger.info('API proxy sidecar enabled - API keys will be held securely in sidecar container');
diff --git a/src/types.ts b/src/types.ts
index 48d167e6..0fe3ee08 100644
--- a/src/types.ts
+++ b/src/types.ts
@@ -391,13 +391,13 @@ export interface WrapperConfig {
    * - Proxies requests to LLM providers
    *
    * The sidecar exposes two endpoints accessible from the agent container:
-   * - http://api-proxy:10000 - OpenAI API proxy (for Codex)
-   * - http://api-proxy:10001 - Anthropic API proxy (for Claude)
+   * - http://172.30.0.30:10000 - OpenAI API proxy (for Codex)
+   * - http://172.30.0.30:10001 - Anthropic API proxy (for Claude)
    *
    * When the corresponding API key is provided, the following environment
    * variables are set in the agent container:
-   * - OPENAI_BASE_URL=http://api-proxy:10000 (set when OPENAI_API_KEY is provided)
-   * - ANTHROPIC_BASE_URL=http://api-proxy:10001 (set when ANTHROPIC_API_KEY is provided)
+   * - OPENAI_BASE_URL=http://172.30.0.30:10000 (set when OPENAI_API_KEY is provided)
+   * - ANTHROPIC_BASE_URL=http://172.30.0.30:10001 (set when ANTHROPIC_API_KEY is provided)
    *
    * API keys are passed via environment variables:
    * - OPENAI_API_KEY - Optional OpenAI API key for Codex