diff --git a/pkg/cloudagents/client.go b/pkg/cloudagents/client.go
index 2957374f..d745c5b0 100644
--- a/pkg/cloudagents/client.go
+++ b/pkg/cloudagents/client.go
@@ -20,6 +20,7 @@ import (
 	"io"
 	"io/fs"
 	"net/http"
+	"net/url"
 	"os"
 	"regexp"
 	"strings"
@@ -161,6 +162,17 @@ func (c *Client) uploadAndBuild(
 	return nil
 }
 
+// getAgentsURL derives the cloud-agents service URL from the project URL.
+// It replaces the project subdomain with "agents" (and optionally a region prefix)
+// so that build/log requests are routed to the cloud-agents service.
+//
+// Examples:
+//
+//	getAgentsURL("")            -> https://agents.livekit.cloud
+//	getAgentsURL("osbxash1a")  -> https://osbxash1a.agents.livekit.cloud
+//
+// When serverRegion is set, the request is pinned to a specific cloud-agents
+// cluster rather than relying on GeoDNS resolution.
 func (c *Client) getAgentsURL(serverRegion string) string {
 	agentsURL := c.projectURL
 	if os.Getenv("LK_AGENTS_URL") != "" {
@@ -169,13 +181,25 @@ func (c *Client) getAgentsURL(serverRegion string) string {
 	if strings.HasPrefix(agentsURL, "ws") {
 		agentsURL = strings.Replace(agentsURL, "ws", "http", 1)
 	}
-	if !strings.Contains(agentsURL, "localhost") && !strings.Contains(agentsURL, "127.0.0.1") {
-		pattern := `^https://[a-zA-Z0-9\-]+\.`
-		re := regexp.MustCompile(pattern)
-		if serverRegion != "" {
-			serverRegion = fmt.Sprintf("%s.", serverRegion)
-		}
-		agentsURL = re.ReplaceAllString(agentsURL, fmt.Sprintf("https://%sagents.", serverRegion))
+
+	// skip rewrite for local development
+	if isLocalURL(agentsURL) {
+		return agentsURL
+	}
+
+	pattern := `^https://[a-zA-Z0-9\-]+\.`
+	re := regexp.MustCompile(pattern)
+	if serverRegion != "" {
+		serverRegion = fmt.Sprintf("%s.", serverRegion)
+	}
+	return re.ReplaceAllString(agentsURL, fmt.Sprintf("https://%sagents.", serverRegion))
+}
+
+func isLocalURL(rawURL string) bool {
+	u, err := url.Parse(rawURL)
+	if err != nil {
+		return false
 	}
-	return agentsURL
+	host := u.Hostname()
+	return host == "localhost" || host == "127.0.0.1"
 }
diff --git a/pkg/cloudagents/client_test.go b/pkg/cloudagents/client_test.go
new file mode 100644
index 00000000..a6e8a852
--- /dev/null
+++ b/pkg/cloudagents/client_test.go
@@ -0,0 +1,72 @@
+package cloudagents
+
+import (
+	"testing"
+
+	"github.com/stretchr/testify/require"
+)
+
+func TestGetAgentsURL(t *testing.T) {
+	tests := []struct {
+		name         string
+		projectURL   string
+		serverRegion string
+		expected     string
+	}{
+		{
+			name:       "standard https project URL",
+			projectURL: "https://my-project.livekit.cloud",
+			expected:   "https://agents.livekit.cloud",
+		},
+		{
+			name:       "wss project URL",
+			projectURL: "wss://my-project.livekit.cloud",
+			expected:   "https://agents.livekit.cloud",
+		},
+		{
+			name:       "subdomain containing localhost",
+			projectURL: "wss://andrewnitu-localhost-project.livekit.cloud",
+			expected:   "https://agents.livekit.cloud",
+		},
+		{
+			name:       "subdomain containing 127",
+			projectURL: "https://test-127-app.livekit.cloud",
+			expected:   "https://agents.livekit.cloud",
+		},
+		{
+			name:         "with server region",
+			projectURL:   "https://my-project.livekit.cloud",
+			serverRegion: "osbxash1a",
+			expected:     "https://osbxash1a.agents.livekit.cloud",
+		},
+		{
+			name:         "wss with server region",
+			projectURL:   "wss://my-project.livekit.cloud",
+			serverRegion: "osbxmum1a",
+			expected:     "https://osbxmum1a.agents.livekit.cloud",
+		},
+		{
+			name:       "localhost development URL",
+			projectURL: "http://localhost:7880",
+			expected:   "http://localhost:7880",
+		},
+		{
+			name:       "127.0.0.1 development URL",
+			projectURL: "http://127.0.0.1:7880",
+			expected:   "http://127.0.0.1:7880",
+		},
+		{
+			name:       "staging project URL",
+			projectURL: "https://my-project.staging.livekit.cloud",
+			expected:   "https://agents.staging.livekit.cloud",
+		},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			c := &Client{projectURL: tt.projectURL}
+			result := c.getAgentsURL(tt.serverRegion)
+			require.Equal(t, tt.expected, result)
+		})
+	}
+}