diff --git a/agent/model_metadata.py b/agent/model_metadata.py
index 724457fd8..0ce9d0c63 100644
--- a/agent/model_metadata.py
+++ b/agent/model_metadata.py
@@ -441,6 +441,10 @@ def is_local_endpoint(base_url: str) -> bool:
     # Docker / Podman / Lima internal DNS names (e.g. host.docker.internal)
     if any(host.endswith(suffix) for suffix in _CONTAINER_LOCAL_SUFFIXES):
         return True
+    # Unqualified hostnames (no dots) are local by definition — Docker
+    # Compose service names, /etc/hosts entries, or mDNS names.
+    if host and "." not in host:
+        return True
     # RFC-1918 private ranges, link-local, and Tailscale CGNAT
     try:
         addr = ipaddress.ip_address(host)
diff --git a/tests/agent/test_local_stream_timeout.py b/tests/agent/test_local_stream_timeout.py
index 0252633f3..91ca7f404 100644
--- a/tests/agent/test_local_stream_timeout.py
+++ b/tests/agent/test_local_stream_timeout.py
@@ -98,6 +98,16 @@ class TestIsLocalEndpoint:
     def test_container_dns_names(self, url):
         assert is_local_endpoint(url) is True
 
+    @pytest.mark.parametrize("url", [
+        "http://ollama:11434",
+        "http://litellm:4000/v1",
+        "http://hermes-litellm:8080",
+        "http://vllm:8000",
+    ])
+    def test_unqualified_docker_hostnames(self, url):
+        """Unqualified hostnames (no dots) are local — Docker Compose, /etc/hosts, etc."""
+        assert is_local_endpoint(url) is True
+
     @pytest.mark.parametrize("url", [
         "https://api.openai.com",
         "https://openrouter.ai/api",