diff --git a/internal/telemetry/client.go b/internal/telemetry/client.go
index 312eb8b407..34b529a3b3 100644
--- a/internal/telemetry/client.go
+++ b/internal/telemetry/client.go
@@ -1,6 +1,7 @@
 package telemetry
 
 import (
+	"net/http"
 	"strings"
 
 	"github.com/go-errors/errors"
@@ -41,6 +42,9 @@ func NewClient(apiKey string, endpoint string, baseProperties map[string]any, fa
 	if endpoint != "" {
 		config.Endpoint = endpoint
 	}
+	// Preserve the active process-wide transport, which may be wrapped by debug.NewTransport()
+	// instead of assuming http.DefaultTransport is always a *http.Transport.
+	config.Transport = http.DefaultTransport
 	client, err := factory(apiKey, config)
 	if err != nil {
 		return nil, errors.Errorf("failed to initialize posthog client: %w", err)
diff --git a/internal/telemetry/client_test.go b/internal/telemetry/client_test.go
index 738a409b47..6ee8ccb27a 100644
--- a/internal/telemetry/client_test.go
+++ b/internal/telemetry/client_test.go
@@ -1,11 +1,13 @@
 package telemetry
 
 import (
+	"net/http"
 	"testing"
 
 	"github.com/posthog/posthog-go"
 	"github.com/stretchr/testify/assert"
 	"github.com/stretchr/testify/require"
+	"github.com/supabase/cli/internal/debug"
 )
 
 type fakeQueue struct {
@@ -51,6 +53,20 @@ func TestNewClient(t *testing.T) {
 		assert.NoError(t, client.Capture("device-1", EventCommandExecuted, map[string]any{"command": "login"}, nil))
 		assert.NoError(t, client.Close())
 	})
+	t.Run("works when debug wraps the default transport", func(t *testing.T) {
+		original := http.DefaultTransport
+		http.DefaultTransport = debug.NewTransport()
+		t.Cleanup(func() {
+			http.DefaultTransport = original
+		})
+
+		client, err := NewClient("phc_test", "https://eu.i.posthog.com", map[string]any{"platform": "cli"}, nil)
+
+		require.NoError(t, err)
+		require.NotNil(t, client)
+		assert.True(t, client.Enabled())
+		assert.NoError(t, client.Close())
+	})
 }
 
 func TestCaptureMergesBasePropertiesAndGroups(t *testing.T) {