diff --git a/src/docker-manager.test.ts b/src/docker-manager.test.ts
index 7831fbf9..c993a691 100644
--- a/src/docker-manager.test.ts
+++ b/src/docker-manager.test.ts
@@ -1518,8 +1518,11 @@ describe('docker-manager', () => {
         const result = generateDockerCompose(configWithProxy, mockNetworkConfigWithProxy);
         const agent = result.services.agent;
         const env = agent.environment as Record<string, string>;
+        expect(env.NO_PROXY).toContain('127.0.0.1');
+        expect(env.NO_PROXY).toContain('localhost');
         expect(env.NO_PROXY).toContain('api-proxy');
         expect(env.NO_PROXY).toContain('172.30.0.30');
+        expect(env.NO_PROXY).toContain('172.30.0.0/16');
         expect(env.no_proxy).toBe(env.NO_PROXY);
       });
 
@@ -1529,10 +1532,12 @@ describe('docker-manager', () => {
         const agent = result.services.agent;
         const env = agent.environment as Record<string, string>;
         // Should contain both the host access NO_PROXY entries and api-proxy
+        expect(env.NO_PROXY).toContain('127.0.0.1');
         expect(env.NO_PROXY).toContain('localhost');
         expect(env.NO_PROXY).toContain('host.docker.internal');
         expect(env.NO_PROXY).toContain('api-proxy');
         expect(env.NO_PROXY).toContain('172.30.0.30');
+        expect(env.NO_PROXY).toContain('172.30.0.0/16');
         expect(env.no_proxy).toBe(env.NO_PROXY);
       });
 
diff --git a/src/docker-manager.ts b/src/docker-manager.ts
index cdc5d851..f398d7b9 100644
--- a/src/docker-manager.ts
+++ b/src/docker-manager.ts
@@ -965,7 +965,8 @@ export function generateDockerCompose(
 
     // Add api-proxy to NO_PROXY so agent traffic goes directly to the sidecar
     // instead of routing through Squid (which would block the "api-proxy" hostname)
-    const proxyNoProxy = `api-proxy,${networkConfig.proxyIp}`;
+    // Include localhost, the specific IP, and the network CIDR to ensure all tools can bypass Squid
+    const proxyNoProxy = `127.0.0.1,localhost,${networkConfig.proxyIp},172.30.0.0/16,api-proxy`;
     if (environment.NO_PROXY) {
       environment.NO_PROXY += `,${proxyNoProxy}`;
       environment.no_proxy = environment.NO_PROXY;