diff --git a/apps/web/lib/setupGlobalAgentProxy.test.ts b/apps/web/lib/setupGlobalAgentProxy.test.ts
new file mode 100644
index 0000000000..6311cdf560
--- /dev/null
+++ b/apps/web/lib/setupGlobalAgentProxy.test.ts
@@ -0,0 +1,235 @@
+import { afterEach, beforeEach, describe, expect, test, vi } from "vitest";
+import { logger } from "@formbricks/logger";
+import { env } from "./env";
+// Note: We don't mock global-agent because the code uses dynamic require("global" + "-agent")
+// which can't be easily mocked. The real module will run in tests, which is acceptable.
+
+// Import after mocks are set up
+import { setupGlobalAgentProxy } from "./setupGlobalAgentProxy";
+
+// Mock logger
+vi.mock("@formbricks/logger", () => ({
+  logger: {
+    info: vi.fn(),
+    error: vi.fn(),
+  },
+}));
+
+// Mock env
+vi.mock("./env", () => ({
+  env: {
+    USE_GLOBAL_AGENT_PROXY: undefined,
+    GLOBAL_AGENT_NO_PROXY: undefined,
+    NO_PROXY: undefined,
+  },
+}));
+
+describe("setupGlobalAgentProxy", () => {
+  const originalWindow = globalThis.window;
+  const originalProcess = globalThis.process;
+  const originalGlobalAgentInitialized = globalThis.__FORMBRICKS_GLOBAL_AGENT_INITIALIZED;
+
+  beforeEach(() => {
+    vi.clearAllMocks();
+    // Reset global state
+    delete (globalThis as any).window;
+    delete (globalThis as any).__FORMBRICKS_GLOBAL_AGENT_INITIALIZED;
+    // Reset process to valid Node.js
+    globalThis.process = {
+      release: { name: "node" },
+      versions: { node: "20.0.0" },
+      env: {},
+    } as any;
+    // Reset env mocks
+    vi.mocked(env).USE_GLOBAL_AGENT_PROXY = undefined;
+    vi.mocked(env).GLOBAL_AGENT_NO_PROXY = undefined;
+    vi.mocked(env).NO_PROXY = undefined;
+  });
+
+  afterEach(() => {
+    // Restore original values
+    if (originalWindow !== undefined) {
+      globalThis.window = originalWindow;
+    }
+    if (originalProcess !== undefined) {
+      globalThis.process = originalProcess;
+    }
+    if (originalGlobalAgentInitialized !== undefined) {
+      globalThis.__FORMBRICKS_GLOBAL_AGENT_INITIALIZED = originalGlobalAgentInitialized;
+    } else {
+      delete (globalThis as any).__FORMBRICKS_GLOBAL_AGENT_INITIALIZED;
+    }
+  });
+
+  describe("browser environment", () => {
+    test("should return early if window is defined", () => {
+      globalThis.window = {} as any;
+
+      setupGlobalAgentProxy();
+
+      expect(logger.info).not.toHaveBeenCalled();
+    });
+  });
+
+  describe("non-Node environment", () => {
+    test("should return early if process is undefined", () => {
+      delete (globalThis as any).process;
+
+      setupGlobalAgentProxy();
+
+      expect(logger.info).not.toHaveBeenCalled();
+    });
+
+    test("should return early if process.release.name is not 'node'", () => {
+      globalThis.process = {
+        release: { name: "deno" },
+        versions: { node: "20.0.0" },
+        env: {},
+      } as any;
+
+      setupGlobalAgentProxy();
+
+      expect(logger.info).not.toHaveBeenCalled();
+    });
+
+    test("should return early if process.versions.node is undefined", () => {
+      globalThis.process = {
+        release: { name: "node" },
+        versions: {},
+        env: {},
+      } as any;
+
+      setupGlobalAgentProxy();
+
+      expect(logger.info).not.toHaveBeenCalled();
+    });
+  });
+
+  describe("idempotent initialization", () => {
+    test("should return early if already initialized", () => {
+      globalThis.__FORMBRICKS_GLOBAL_AGENT_INITIALIZED = true;
+      vi.mocked(env).USE_GLOBAL_AGENT_PROXY = "1";
+
+      setupGlobalAgentProxy();
+
+      expect(logger.info).not.toHaveBeenCalled();
+    });
+  });
+
+  describe("opt-in flag", () => {
+    test("should return early if USE_GLOBAL_AGENT_PROXY is not '1'", () => {
+      vi.mocked(env).USE_GLOBAL_AGENT_PROXY = "0";
+
+      setupGlobalAgentProxy();
+
+      expect(logger.info).not.toHaveBeenCalled();
+    });
+
+    test("should return early if USE_GLOBAL_AGENT_PROXY is undefined", () => {
+      vi.mocked(env).USE_GLOBAL_AGENT_PROXY = undefined;
+
+      setupGlobalAgentProxy();
+
+      expect(logger.info).not.toHaveBeenCalled();
+    });
+  });
+
+  describe("NO_PROXY resolution", () => {
+    test("should use GLOBAL_AGENT_NO_PROXY when set", () => {
+      vi.mocked(env).USE_GLOBAL_AGENT_PROXY = "1";
+      vi.mocked(env).GLOBAL_AGENT_NO_PROXY = "keycloak.local,adfs.local";
+
+      setupGlobalAgentProxy();
+
+      expect(process.env.GLOBAL_AGENT_NO_PROXY).toBe("keycloak.local,adfs.local");
+      // Verify bootstrap was attempted (either success or error logged)
+      const infoCalled = vi
+        .mocked(logger.info)
+        .mock.calls.some(
+          (call) => call[0] === "Enabled global-agent proxy support for outbound HTTP requests"
+        );
+      const errorCalled = vi.mocked(logger.error).mock.calls.length > 0;
+      expect(infoCalled || errorCalled).toBe(true);
+    });
+
+    test("should use NO_PROXY when GLOBAL_AGENT_NO_PROXY is not set", () => {
+      vi.mocked(env).USE_GLOBAL_AGENT_PROXY = "1";
+      vi.mocked(env).NO_PROXY = "auth.service.company.local";
+
+      setupGlobalAgentProxy();
+
+      expect(process.env.GLOBAL_AGENT_NO_PROXY).toBe("auth.service.company.local");
+      // Verify bootstrap was attempted
+      const infoCalled = vi
+        .mocked(logger.info)
+        .mock.calls.some(
+          (call) => call[0] === "Enabled global-agent proxy support for outbound HTTP requests"
+        );
+      const errorCalled = vi.mocked(logger.error).mock.calls.length > 0;
+      expect(infoCalled || errorCalled).toBe(true);
+    });
+
+    test("should prefer GLOBAL_AGENT_NO_PROXY over NO_PROXY", () => {
+      vi.mocked(env).USE_GLOBAL_AGENT_PROXY = "1";
+      vi.mocked(env).GLOBAL_AGENT_NO_PROXY = "keycloak.local";
+      vi.mocked(env).NO_PROXY = "auth.service.company.local";
+
+      setupGlobalAgentProxy();
+
+      expect(process.env.GLOBAL_AGENT_NO_PROXY).toBe("keycloak.local");
+      // Verify bootstrap was attempted
+      const infoCalled = vi.mocked(logger.info).mock.calls.length > 0;
+      const errorCalled = vi.mocked(logger.error).mock.calls.length > 0;
+      expect(infoCalled || errorCalled).toBe(true);
+    });
+
+    test("should not set GLOBAL_AGENT_NO_PROXY when neither is set", () => {
+      vi.mocked(env).USE_GLOBAL_AGENT_PROXY = "1";
+      // eslint-disable-next-line turbo/no-undeclared-env-vars
+      const originalNoProxy = process.env.GLOBAL_AGENT_NO_PROXY;
+      // eslint-disable-next-line turbo/no-undeclared-env-vars
+      delete process.env.GLOBAL_AGENT_NO_PROXY;
+
+      setupGlobalAgentProxy();
+
+      // eslint-disable-next-line turbo/no-undeclared-env-vars
+      expect(process.env.GLOBAL_AGENT_NO_PROXY).toBeUndefined();
+      // Verify bootstrap was attempted
+      const infoCalled = vi
+        .mocked(logger.info)
+        .mock.calls.some(
+          (call) => call[0] === "Enabled global-agent proxy support for outbound HTTP requests"
+        );
+      const errorCalled = vi.mocked(logger.error).mock.calls.length > 0;
+      expect(infoCalled || errorCalled).toBe(true);
+
+      // Restore
+      if (originalNoProxy !== undefined) {
+        // eslint-disable-next-line turbo/no-undeclared-env-vars
+        process.env.GLOBAL_AGENT_NO_PROXY = originalNoProxy;
+      }
+    });
+  });
+
+  describe("successful initialization", () => {
+    test("should attempt to bootstrap global-agent when enabled", () => {
+      vi.mocked(env).USE_GLOBAL_AGENT_PROXY = "1";
+
+      setupGlobalAgentProxy();
+
+      // Verify bootstrap was attempted (either success or error)
+      const infoCalled = vi
+        .mocked(logger.info)
+        .mock.calls.some(
+          (call) => call[0] === "Enabled global-agent proxy support for outbound HTTP requests"
+        );
+      const errorCalled = vi.mocked(logger.error).mock.calls.length > 0;
+      expect(infoCalled || errorCalled).toBe(true);
+
+      // If successful, flag should be set
+      if (infoCalled) {
+        expect(globalThis.__FORMBRICKS_GLOBAL_AGENT_INITIALIZED).toBe(true);
+      }
+    });
+  });
+});
diff --git a/apps/web/lib/setupGlobalAgentProxy.ts b/apps/web/lib/setupGlobalAgentProxy.ts
index e4e6bf2d0f..6e1340ace1 100644
--- a/apps/web/lib/setupGlobalAgentProxy.ts
+++ b/apps/web/lib/setupGlobalAgentProxy.ts
@@ -40,15 +40,17 @@ export const setupGlobalAgentProxy = (): void => {
     process.env.GLOBAL_AGENT_NO_PROXY = noProxy;
   }
 
+  // Mark as initialized before attempting bootstrap to avoid repeated attempts
+  globalThis.__FORMBRICKS_GLOBAL_AGENT_INITIALIZED = true;
+
   try {
     // Dynamic require prevents bundling into edge/serverless builds
     // Using string concatenation to prevent webpack from statically analyzing the require
     // eslint-disable-next-line @typescript-eslint/no-var-requires, turbo/no-undeclared-env-vars
     const { bootstrap } = require("global" + "-agent");
     bootstrap();
-    globalThis.__FORMBRICKS_GLOBAL_AGENT_INITIALIZED = true;
     logger.info("Enabled global-agent proxy support for outbound HTTP requests");
   } catch (error) {
-    logger.error("Failed to enable global-agent proxy support", error);
+    logger.error(error, "Failed to enable global-agent proxy support");
   }
 };