diff --git a/.github/workflows/sca-scan.yml b/.github/workflows/sca-scan.yml
index 2307d48902..6c83843da9 100644
--- a/.github/workflows/sca-scan.yml
+++ b/.github/workflows/sca-scan.yml
@@ -15,4 +15,4 @@ jobs:
           args: --all-projects --fail-on=all
           json: true
         continue-on-error: true
-      - uses: contentstack/sca-policy@main
+      - uses: contentstack/sca-policy@main 
diff --git a/packages/contentstack-utilities/src/contentstack-management-sdk.ts b/packages/contentstack-utilities/src/contentstack-management-sdk.ts
index 5306e9eb21..77600cc31f 100644
--- a/packages/contentstack-utilities/src/contentstack-management-sdk.ts
+++ b/packages/contentstack-utilities/src/contentstack-management-sdk.ts
@@ -2,7 +2,7 @@ import { client, ContentstackClient, ContentstackConfig } from '@contentstack/ma
 import authHandler from './auth-handler';
 import { Agent } from 'node:https';
 import configHandler, { default as configStore } from './config-handler';
-import { getProxyConfig } from './proxy-helper';
+import { getProxyConfigForHost, resolveRequestHost, clearProxyEnv } from './proxy-helper';
 import dotenv from 'dotenv';
 
 dotenv.config();
@@ -17,8 +17,15 @@ class ManagementSDKInitiator {
   }
 
   async createAPIClient(config): Promise<ContentstackClient> {
-    // Get proxy configuration with priority: Environment variables > Global config
-    const proxyConfig = getProxyConfig();
+    // Resolve host so NO_PROXY applies even when config.host is omitted (e.g. from region.cma)
+    const host = resolveRequestHost(config);
+    // NO_PROXY has priority over HTTP_PROXY/HTTPS_PROXY and config-set proxy
+    const proxyConfig = getProxyConfigForHost(host);
+
+    // When bypassing, clear proxy env immediately so SDK never see it (they may read at init or first request).
+    if (!proxyConfig) {
+      clearProxyEnv();
+    }
 
     const option: ContentstackConfig = {
       host: config.host,
diff --git a/packages/contentstack-utilities/src/http-client/client.ts b/packages/contentstack-utilities/src/http-client/client.ts
index a7b1013545..2fd213d2ed 100644
--- a/packages/contentstack-utilities/src/http-client/client.ts
+++ b/packages/contentstack-utilities/src/http-client/client.ts
@@ -3,7 +3,23 @@ import { IHttpClient } from './client-interface';
 import { HttpResponse } from './http-response';
 import configStore from '../config-handler';
 import authHandler from '../auth-handler';
-import { hasProxy, getProxyUrl, getProxyConfig } from '../proxy-helper';
+import { hasProxy, getProxyUrl, getProxyConfig, getProxyConfigForHost } from '../proxy-helper';
+
+/**
+ * Derive request host from baseURL or url for NO_PROXY checks.
+ */
+function getRequestHost(baseURL?: string, url?: string): string | undefined {
+  const toTry = [baseURL, url].filter(Boolean) as string[];
+  for (const candidateUrl of toTry) {
+    try {
+      const parsed = new URL(candidateUrl.startsWith('http') ? candidateUrl : `https://${candidateUrl}`);
+      return parsed.hostname || undefined;
+    } catch {
+      // Invalid URL; try next candidate (baseURL or url)
+    }
+  }
+  return undefined;
+}
 
 export type HttpClientOptions = {
   disableEarlyAccessHeaders?: boolean;
@@ -411,9 +427,10 @@ export class HttpClient implements IHttpClient {
       }
     }
 
-    // Configure proxy if available (priority: request.proxy > getProxyConfig())
+    // Configure proxy if available. NO_PROXY has priority: hosts in NO_PROXY never use proxy.
     if (!this.request.proxy) {
-      const proxyConfig = getProxyConfig();
+      const host = getRequestHost(this.request.baseURL, url);
+      const proxyConfig = host ? getProxyConfigForHost(host) : getProxyConfig();
       if (proxyConfig) {
         this.request.proxy = proxyConfig;
       }
diff --git a/packages/contentstack-utilities/src/proxy-helper.ts b/packages/contentstack-utilities/src/proxy-helper.ts
index 708b097fc6..68de79fc8d 100644
--- a/packages/contentstack-utilities/src/proxy-helper.ts
+++ b/packages/contentstack-utilities/src/proxy-helper.ts
@@ -11,11 +11,84 @@ export interface ProxyConfig {
 }
 
 /**
- * Get proxy configuration with priority: Environment variables > Global config
+ * Parse NO_PROXY / no_proxy env (both uppercase and lowercase).
+ * NO_PROXY has priority over HTTP_PROXY/HTTPS_PROXY: hosts in this list never use the proxy.
+ * Values are hostnames only, comma-separated; leading dot matches subdomains (e.g. .contentstack.io).
+ * The bypass list is fully dynamic: only env values are used (no hardcoded default).
+ * @returns List of trimmed entries, or empty array when NO_PROXY/no_proxy is unset
+ */
+export function getNoProxyList(): string[] {
+  const raw = process.env.NO_PROXY || process.env.no_proxy || '';
+  return raw
+    .split(',')
+    .map((s) => s.trim())
+    .filter(Boolean);
+}
+
+/**
+ * Normalize host for NO_PROXY matching: strip protocol/URL, port, lowercase, handle IPv6 brackets.
+ * Accepts hostname, host:port, or full URL (e.g. https://api.contentstack.io).
+ */
+function normalizeHost(host: string): string {
+  if (!host || typeof host !== 'string') return '';
+  let h = host.trim().toLowerCase();
+  // If it looks like a URL, extract hostname so NO_PROXY matching works (e.g. region.cma is full URL)
+  if (h.includes('://')) {
+    try {
+      const u = new URL(h);
+      h = u.hostname;
+    } catch {
+      // fall through to port stripping below
+    }
+  }
+  const portIdx = h.lastIndexOf(':');
+  if (h.startsWith('[')) {
+    const close = h.indexOf(']');
+    if (close !== -1 && h.length > close + 1 && h[close + 1] === ':') {
+      h = h.slice(1, close);
+    }
+  } else if (portIdx !== -1) {
+    const after = h.slice(portIdx + 1);
+    if (/^\d+$/.test(after)) {
+      h = h.slice(0, portIdx);
+    }
+  }
+  return h;
+}
+
+/**
+ * Check if the given host should bypass the proxy based on NO_PROXY / no_proxy.
+ * Supports: exact host, leading-dot subdomain match (e.g. .contentstack.io), and wildcard *.
+ * @param host - Request hostname (with or without port; will be normalized)
+ * @returns true if proxy should not be used for this host
+ */
+export function shouldBypassProxy(host: string): boolean {
+  const normalized = normalizeHost(host);
+  if (!normalized) return false;
+
+  const list = getNoProxyList();
+  for (const entry of list) {
+    const e = entry.trim().toLowerCase();
+    if (!e) continue;
+    if (e === '*') return true;
+    if (e.startsWith('.')) {
+      const domain = e.slice(1);
+      if (normalized === domain || normalized.endsWith(e)) return true;
+    } else {
+      if (normalized === e) return true;
+    }
+  }
+  return false;
+}
+
+/**
+ * Get proxy configuration. Sources (in order): env (HTTP_PROXY/HTTPS_PROXY), then global config
+ * from `csdx config:set:proxy --host <host> --port <port> --protocol <protocol>`.
+ * For per-request use, prefer getProxyConfigForHost(host) so NO_PROXY overrides both sources.
  * @returns ProxyConfig object or undefined if no proxy is configured
  */
 export function getProxyConfig(): ProxyConfig | undefined {
-  // Priority 1: Check environment variables (HTTPS_PROXY or HTTP_PROXY)
+  // Priority 1: Environment variables (HTTPS_PROXY or HTTP_PROXY)
   const proxyUrl = process.env.HTTPS_PROXY || process.env.HTTP_PROXY;
   
   if (proxyUrl) {
@@ -46,7 +119,7 @@ export function getProxyConfig(): ProxyConfig | undefined {
     }
   }
   
-  // Priority 2: Check global config store
+  // Priority 2: Global config (csdx config:set:proxy)
   const globalProxyConfig = configStore.get('proxy');
   if (globalProxyConfig) {
     if (typeof globalProxyConfig === 'object') {
@@ -86,6 +159,63 @@ export function getProxyConfig(): ProxyConfig | undefined {
   return undefined;
 }
 
+/**
+ * Get proxy config only when the request host is not in NO_PROXY.
+ * NO_PROXY has priority over both HTTP_PROXY/HTTPS_PROXY and over proxy set via
+ * `csdx config:set:proxy` — if the host matches NO_PROXY, no proxy is used.
+ * Use this for all outbound requests so Contentstack and localhost bypass the proxy when set.
+ * @param host - Request hostname (e.g. api.contentstack.io or full URL like https://api.contentstack.io)
+ * @returns ProxyConfig or undefined if proxy is disabled or host should bypass (NO_PROXY)
+ */
+export function getProxyConfigForHost(host: string): ProxyConfig | undefined {
+  if (shouldBypassProxy(host)) return undefined;
+  return getProxyConfig();
+}
+
+/**
+ * Resolve request host for proxy/NO_PROXY checks: config.host or default CMA from region.
+ * Use when the caller may omit host so NO_PROXY still applies (e.g. from region.cma).
+ * @param config - Object with optional host (e.g. API client config)
+ * @returns Host string (hostname or empty)
+ */
+export function resolveRequestHost(config: { host?: string }): string {
+  if (config.host) return config.host;
+  const cma = configStore.get('region')?.cma;
+  if (cma && typeof cma === 'string') {
+    if (cma.startsWith('http')) {
+      try {
+        const u = new URL(cma);
+        return u.hostname || cma;
+      } catch {
+        return cma;
+      }
+    }
+    return cma;
+  }
+  return '';
+}
+
+/**
+ * Temporarily clear proxy-related env vars so SDK/axios cannot use them.
+ * Call the returned function to restore. Use when creating a client for a host in NO_PROXY.
+ * @returns Restore function (call to put env back)
+ */
+export function clearProxyEnv(): () => void {
+  const saved: Record<string, string | undefined> = {};
+  const keys = ['HTTP_PROXY', 'HTTPS_PROXY', 'http_proxy', 'https_proxy', 'ALL_PROXY', 'all_proxy'];
+  for (const k of keys) {
+    if (k in process.env) {
+      saved[k] = process.env[k];
+      delete process.env[k];
+    }
+  }
+  return () => {
+    for (const k of keys) {
+      if (saved[k] !== undefined) process.env[k] = saved[k];
+    }
+  };
+}
+
 /**
  * Check if proxy is configured (from any source)
  * @returns true if proxy is configured, false otherwise