diff --git a/crates/agent_servers/src/agent_servers.rs b/crates/agent_servers/src/agent_servers.rs
index b9751d7f63053bf073bcc8181f0cc2f8211d5c9f..af95fdfa4cde66ffbc04f7234112ba5243e7d951 100644
--- a/crates/agent_servers/src/agent_servers.rs
+++ b/crates/agent_servers/src/agent_servers.rs
@@ -99,6 +99,9 @@ pub fn load_proxy_env(cx: &mut App) -> HashMap<String, String> {
 
     if let Some(no_proxy) = read_no_proxy_from_env() {
         env.insert("NO_PROXY".to_owned(), no_proxy);
+    } else if proxy_url.is_some() {
+        // We sometimes need local MCP servers that we don't want to proxy
+        env.insert("NO_PROXY".to_owned(), "localhost,127.0.0.1".to_owned());
     }
 
     env