diff --git a/src/services/agent-environment-options.test.ts b/src/services/agent-environment-options.test.ts
index 07b6c730f..68f9b3fc1 100644
--- a/src/services/agent-environment-options.test.ts
+++ b/src/services/agent-environment-options.test.ts
@@ -484,6 +484,21 @@ describe('agent environment: options', () => {
       expect(env.NO_PROXY).toContain('host.docker.internal');
     });
 
+    it('should append topology peer hostnames to NO_PROXY', () => {
+      const configWithTopologyPeers = {
+        ...mockConfig,
+        networkIsolation: true,
+        topologyAttach: ['awmg-mcpg', 'awmg-cli-proxy'],
+      };
+      const result = generateDockerCompose(configWithTopologyPeers, mockNetworkConfig);
+      const agent = result.services.agent;
+      const env = agent.environment as Record<string, string>;
+
+      expect(env.NO_PROXY).toContain('awmg-mcpg');
+      expect(env.NO_PROXY).toContain('awmg-cli-proxy');
+      expect(env.no_proxy).toBe(env.NO_PROXY);
+    });
+
     it('should sync no_proxy when --env overrides NO_PROXY', () => {
       const configWithEnv = {
         ...mockConfig,
diff --git a/src/services/agent-environment/proxy-environment.test.ts b/src/services/agent-environment/proxy-environment.test.ts
index ffae83928..f2caa443b 100644
--- a/src/services/agent-environment/proxy-environment.test.ts
+++ b/src/services/agent-environment/proxy-environment.test.ts
@@ -35,4 +35,50 @@ describe('buildProxyEnvironment', () => {
     expect(env.NO_PROXY.split(',')).toContain('172.30.0.1');
     expect(env.NO_PROXY.split(',')).toContain('host.docker.internal');
   });
+
+  describe('topology-attached peers', () => {
+    it('exempts topology peers from proxy routing for a compose agent in isolation mode', () => {
+      const env = run({
+        ...baseConfig,
+        networkIsolation: true,
+        topologyAttach: ['awmg-mcpg', 'awmg-cli-proxy'],
+      });
+      expect(env.NO_PROXY.split(',')).toContain('awmg-mcpg');
+      expect(env.NO_PROXY.split(',')).toContain('awmg-cli-proxy');
+      expect(env.no_proxy).toBe(env.NO_PROXY);
+    });
+
+    it('exempts the DIFC/cli-proxy host even when not listed in topologyAttach', () => {
+      const env = run({
+        ...baseConfig,
+        networkIsolation: true,
+        difcProxyHost: 'awmg-cli-proxy',
+      });
+      expect(env.NO_PROXY.split(',')).toContain('awmg-cli-proxy');
+    });
+
+    it('does NOT exempt topology peers outside network-isolation mode', () => {
+      const env = run({
+        ...baseConfig,
+        networkIsolation: false,
+        topologyAttach: ['awmg-mcpg'],
+      });
+      expect(env.NO_PROXY.split(',')).not.toContain('awmg-mcpg');
+    });
+
+    it('does NOT exempt topology peers for a microVM (sbx) agent', () => {
+      // The sbx microVM runs off awf-net and cannot resolve or route to these
+      // container hostnames; NO_PROXY there would break the connection rather
+      // than fix it, so peers are deliberately omitted for microVM backends.
+      const env = run({
+        ...baseConfig,
+        containerRuntime: 'sbx',
+        networkIsolation: true,
+        topologyAttach: ['awmg-mcpg'],
+        difcProxyHost: 'awmg-cli-proxy',
+      });
+      expect(env.NO_PROXY.split(',')).not.toContain('awmg-mcpg');
+      expect(env.NO_PROXY.split(',')).not.toContain('awmg-cli-proxy');
+    });
+  });
 });
diff --git a/src/services/agent-environment/proxy-environment.ts b/src/services/agent-environment/proxy-environment.ts
index 959ca435a..885153dfa 100644
--- a/src/services/agent-environment/proxy-environment.ts
+++ b/src/services/agent-environment/proxy-environment.ts
@@ -1,7 +1,7 @@
 import { WrapperConfig } from '../../types';
 import { NetworkConfig } from '../squid-service';
 import { buildNoProxyValue } from '../no-proxy-utils';
-import { runtimeUsesIptables } from '../../container-runtime';
+import { runtimeUsesIptables, runtimeUsesComposeAgent } from '../../container-runtime';
 
 interface ProxyEnvironmentParams {
   config: WrapperConfig;
@@ -14,6 +14,29 @@ export function buildProxyEnvironment(params: ProxyEnvironmentParams): void {
 
   const noProxyHosts: string[] = ['0.0.0.0', networkConfig.squidIp, networkConfig.agentIp];
 
+  // Network-isolation (topology) mode has no iptables-init container, so the
+  // only lever to keep intra-`awf-net` peer traffic out of Squid is NO_PROXY.
+  // Exempt topology-attached peers (e.g. the MCP gateway `awmg-mcpg` and the
+  // DIFC/cli-proxy `awmg-cli-proxy`) so proxy-aware clients (rmcp/undici)
+  // connect to them directly instead of being routed through Squid and denied.
+  //
+  // Only meaningful when the agent actually shares `awf-net`, i.e. a
+  // compose-managed agent (runc, gVisor). For microVM backends (Docker sbx) the
+  // agent runs off `awf-net` and cannot resolve or route to these container
+  // hostnames — adding them to NO_PROXY there would turn a Squid 403 into an
+  // unroutable direct connection, so they are deliberately skipped. sbx reaches
+  // gateway peers through its own proxy-chaining path, not NO_PROXY.
+  //
+  // Hostname-only by design: peer IPs are not known at config-write time (they
+  // are discovered after the network attach in cli-workflow's onNetworkReady),
+  // and MCP URLs address peers by hostname (e.g. http://awmg-mcpg:8080), which
+  // is what undici matches NO_PROXY against.
+  if (config.networkIsolation && runtimeUsesComposeAgent(config.containerRuntime)) {
+    if (config.topologyAttach) {
+      noProxyHosts.push(...config.topologyAttach);
+    }
+  }
+
   // The MCP gateway is served on the network gateway (e.g. 172.30.0.1). In
   // standard mode an iptables NAT RETURN rule bypasses Squid for it. Runtimes
   // whose netstack can't use host-netns iptables (e.g. gVisor) have no such
@@ -33,6 +56,6 @@ export function buildProxyEnvironment(params: ProxyEnvironmentParams): void {
     noProxyHosts.push(networkConfig.proxyIp, 'api-proxy');
   }
 
-  environment.NO_PROXY = buildNoProxyValue(noProxyHosts);
+  environment.NO_PROXY = buildNoProxyValue([...new Set(noProxyHosts)]);
   environment.no_proxy = environment.NO_PROXY;
 }