diff --git a/packages/core/src/config/config.ts b/packages/core/src/config/config.ts
index 44570203c3..80a955cb19 100644
--- a/packages/core/src/config/config.ts
+++ b/packages/core/src/config/config.ts
@@ -681,7 +681,13 @@ export class Config {
     }
 
     if (this.getProxy()) {
-      setGlobalDispatcher(new ProxyAgent(this.getProxy() as string));
+      const noProxy = process.env['NO_PROXY'] || process.env['no_proxy'];
+      setGlobalDispatcher(
+        new ProxyAgent({
+          uri: this.getProxy() as string,
+          ...(noProxy ? { noProxy } : {}),
+        }),
+      );
     }
     this.geminiClient = new GeminiClient(this);
     this.chatRecordingService = this.chatRecordingEnabled
diff --git a/packages/core/src/utils/runtimeFetchOptions.test.ts b/packages/core/src/utils/runtimeFetchOptions.test.ts
index fd4e7a0891..f58d27821b 100644
--- a/packages/core/src/utils/runtimeFetchOptions.test.ts
+++ b/packages/core/src/utils/runtimeFetchOptions.test.ts
@@ -4,7 +4,7 @@
  * SPDX-License-Identifier: Apache-2.0
  */
 
-import { describe, it, expect, vi } from 'vitest';
+import { describe, it, expect, vi, beforeEach, afterEach } from 'vitest';
 import { buildRuntimeFetchOptions } from './runtimeFetchOptions.js';
 
 type UndiciOptions = Record<string, unknown>;
@@ -92,4 +92,124 @@ describe('buildRuntimeFetchOptions (node runtime)', () => {
       bodyTimeout: 0,
     });
   });
+
+  describe('NO_PROXY handling', () => {
+    const originalEnv: { [key: string]: string | undefined } = {};
+
+    beforeEach(() => {
+      // Save original environment variables
+      originalEnv['NO_PROXY'] = process.env['NO_PROXY'];
+      originalEnv['no_proxy'] = process.env['no_proxy'];
+      // Clear environment variables before each test
+      delete process.env['NO_PROXY'];
+      delete process.env['no_proxy'];
+    });
+
+    afterEach(() => {
+      // Restore original environment variables
+      if (originalEnv['NO_PROXY'] !== undefined) {
+        process.env['NO_PROXY'] = originalEnv['NO_PROXY'];
+      } else {
+        delete process.env['NO_PROXY'];
+      }
+      if (originalEnv['no_proxy'] !== undefined) {
+        process.env['no_proxy'] = originalEnv['no_proxy'];
+      } else {
+        delete process.env['no_proxy'];
+      }
+    });
+
+    it('should pass noProxy option when NO_PROXY environment variable is set', () => {
+      process.env['NO_PROXY'] = 'localhost,127.0.0.1,internal.local';
+
+      const result = buildRuntimeFetchOptions('openai', 'http://proxy.local');
+
+      expect(result).toBeDefined();
+      const dispatcher = (
+        result as {
+          fetchOptions?: { dispatcher?: { options?: UndiciOptions } };
+        }
+      ).fetchOptions?.dispatcher;
+      expect(dispatcher?.options).toMatchObject({
+        uri: 'http://proxy.local',
+        headersTimeout: 0,
+        bodyTimeout: 0,
+        noProxy: 'localhost,127.0.0.1,internal.local',
+      });
+    });
+
+    it('should pass noProxy option when no_proxy (lowercase) environment variable is set', () => {
+      process.env['no_proxy'] = 'api.local,*.internal';
+
+      const result = buildRuntimeFetchOptions('openai', 'http://proxy.local');
+
+      expect(result).toBeDefined();
+      const dispatcher = (
+        result as {
+          fetchOptions?: { dispatcher?: { options?: UndiciOptions } };
+        }
+      ).fetchOptions?.dispatcher;
+      expect(dispatcher?.options).toMatchObject({
+        uri: 'http://proxy.local',
+        headersTimeout: 0,
+        bodyTimeout: 0,
+        noProxy: 'api.local,*.internal',
+      });
+    });
+
+    it('should use NO_PROXY or no_proxy when either is set', () => {
+      // On Windows, environment variables are case-insensitive, so we can only
+      // reliably test that one of them is used when both are set
+      process.env['NO_PROXY'] = 'priority.local';
+
+      const result = buildRuntimeFetchOptions('openai', 'http://proxy.local');
+
+      expect(result).toBeDefined();
+      const dispatcher = (
+        result as {
+          fetchOptions?: { dispatcher?: { options?: UndiciOptions } };
+        }
+      ).fetchOptions?.dispatcher;
+      expect(dispatcher?.options).toMatchObject({
+        noProxy: 'priority.local',
+      });
+    });
+
+    it('should not pass noProxy option when neither NO_PROXY nor no_proxy is set', () => {
+      const result = buildRuntimeFetchOptions('openai', 'http://proxy.local');
+
+      expect(result).toBeDefined();
+      const dispatcher = (
+        result as {
+          fetchOptions?: { dispatcher?: { options?: UndiciOptions } };
+        }
+      ).fetchOptions?.dispatcher;
+      expect(dispatcher?.options).toMatchObject({
+        uri: 'http://proxy.local',
+        headersTimeout: 0,
+        bodyTimeout: 0,
+      });
+      expect(dispatcher?.options).not.toHaveProperty('noProxy');
+    });
+
+    it('should handle NO_PROXY with wildcard (*)', () => {
+      process.env['NO_PROXY'] = '*';
+
+      const result = buildRuntimeFetchOptions(
+        'anthropic',
+        'http://proxy.local',
+      );
+
+      expect(result).toBeDefined();
+      const dispatcher = (
+        result as {
+          fetchOptions?: { dispatcher?: { options?: UndiciOptions } };
+        }
+      ).fetchOptions?.dispatcher;
+      expect(dispatcher?.options).toMatchObject({
+        uri: 'http://proxy.local',
+        noProxy: '*',
+      });
+    });
+  });
 });
diff --git a/packages/core/src/utils/runtimeFetchOptions.ts b/packages/core/src/utils/runtimeFetchOptions.ts
index 1e0ef48068..e243052b88 100644
--- a/packages/core/src/utils/runtimeFetchOptions.ts
+++ b/packages/core/src/utils/runtimeFetchOptions.ts
@@ -136,11 +136,13 @@ function buildFetchOptionsWithDispatcher(
   proxyUrl?: string,
 ): OpenAIRuntimeFetchOptions | AnthropicRuntimeFetchOptions {
   try {
+    const noProxy = process.env['NO_PROXY'] || process.env['no_proxy'];
     const dispatcher = proxyUrl
       ? new ProxyAgent({
           uri: proxyUrl,
           headersTimeout: 0,
           bodyTimeout: 0,
+          ...(noProxy ? { noProxy } : {}),
         })
       : new Agent({
           headersTimeout: 0,