diff --git a/agent/model_metadata.py b/agent/model_metadata.py
index 2ef6830e58..f12801777d 100644
--- a/agent/model_metadata.py
+++ b/agent/model_metadata.py
@@ -179,6 +179,12 @@ _MAX_COMPLETION_KEYS = (
 
 # Local server hostnames / address patterns
 _LOCAL_HOSTS = ("localhost", "127.0.0.1", "::1", "0.0.0.0")
+# Docker / Podman / Lima DNS names that resolve to the host machine
+_CONTAINER_LOCAL_SUFFIXES = (
+    ".docker.internal",
+    ".containers.internal",
+    ".lima.internal",
+)
 
 
 def _normalize_base_url(base_url: str) -> str:
@@ -254,6 +260,9 @@ def is_local_endpoint(base_url: str) -> bool:
         return False
     if host in _LOCAL_HOSTS:
         return True
+    # Docker / Podman / Lima internal DNS names (e.g. host.docker.internal)
+    if any(host.endswith(suffix) for suffix in _CONTAINER_LOCAL_SUFFIXES):
+        return True
     # RFC-1918 private ranges and link-local
     import ipaddress
     try:
diff --git a/tests/agent/test_local_stream_timeout.py b/tests/agent/test_local_stream_timeout.py
index 929f2e3c84..8184dd2d49 100644
--- a/tests/agent/test_local_stream_timeout.py
+++ b/tests/agent/test_local_stream_timeout.py
@@ -22,6 +22,9 @@ class TestLocalStreamReadTimeout:
         "http://0.0.0.0:5000",
         "http://192.168.1.100:8000",
         "http://10.0.0.5:1234",
+        "http://host.docker.internal:11434",
+        "http://host.containers.internal:11434",
+        "http://host.lima.internal:11434",
     ])
     def test_local_endpoint_bumps_read_timeout(self, base_url):
         """Local endpoint + default timeout -> bumps to base_timeout."""
@@ -68,3 +71,38 @@ class TestLocalStreamReadTimeout:
             if _stream_read_timeout == 120.0 and base_url and is_local_endpoint(base_url):
                 _stream_read_timeout = _base_timeout
             assert _stream_read_timeout == 120.0
+
+
+class TestIsLocalEndpoint:
+    """Direct unit tests for is_local_endpoint."""
+
+    @pytest.mark.parametrize("url", [
+        "http://localhost:11434",
+        "http://127.0.0.1:8080",
+        "http://0.0.0.0:5000",
+        "http://[::1]:11434",
+        "http://192.168.1.100:8000",
+        "http://10.0.0.5:1234",
+        "http://172.17.0.1:11434",
+    ])
+    def test_classic_local_addresses(self, url):
+        assert is_local_endpoint(url) is True
+
+    @pytest.mark.parametrize("url", [
+        "http://host.docker.internal:11434",
+        "http://host.docker.internal:8080/v1",
+        "http://gateway.docker.internal:11434",
+        "http://host.containers.internal:11434",
+        "http://host.lima.internal:11434",
+    ])
+    def test_container_dns_names(self, url):
+        assert is_local_endpoint(url) is True
+
+    @pytest.mark.parametrize("url", [
+        "https://api.openai.com",
+        "https://openrouter.ai/api",
+        "https://api.anthropic.com",
+        "https://evil.docker.internal.example.com",
+    ])
+    def test_remote_endpoints(self, url):
+        assert is_local_endpoint(url) is False