diff --git a/ci/functional/test_main.sh b/ci/functional/test_main.sh
index aa056248bcc..41dd7d83f6d 100755
--- a/ci/functional/test_main.sh
+++ b/ci/functional/test_main.sh
@@ -118,6 +118,7 @@ if "$hardware_ok"; then
            WITH_VALGRIND=\"${WITH_VALGRIND:-}\"       \
            STAGE_NAME=\"${STAGE_NAME}\"               \
            DAOS_HTTPS_PROXY=\"${DAOS_HTTPS_PROXY:-}\" \
+           DAOS_NO_PROXY=\"${DAOS_NO_PROXY:-}\"       \
            $(cat ci/functional/test_main_node.sh)"
     else
         ./ftest.sh "$test_tag" "$tnodes" "${FTEST_ARG:-}"
diff --git a/ci/functional/test_main_node.sh b/ci/functional/test_main_node.sh
index eef10297940..8d185787c78 100755
--- a/ci/functional/test_main_node.sh
+++ b/ci/functional/test_main_node.sh
@@ -1,7 +1,7 @@
 #!/bin/bash
 #
 #  Copyright 2020-2022 Intel Corporation.
-#  Copyright 2025 Hewlett Packard Enterprise Development LP
+#  Copyright 2025-2026 Hewlett Packard Enterprise Development LP
 #
 #  SPDX-License-Identifier: BSD-2-Clause-Patent
 #
@@ -16,5 +16,6 @@ export REMOTE_ACCT=jenkins
 export WITH_VALGRIND="$WITH_VALGRIND"
 export STAGE_NAME="$STAGE_NAME"
 
-DAOS_HTTPS_PROXY="${DAOS_HTTPS_PROXY:-}" /usr/lib/daos/TESTING/ftest/ftest.sh \
-    "$TEST_TAG" "$TNODES" "$FTEST_ARG"
+export DAOS_HTTPS_PROXY="${DAOS_HTTPS_PROXY:-}"
+export DAOS_NO_PROXY="${DAOS_NO_PROXY:-}"
+/usr/lib/daos/TESTING/ftest/ftest.sh "$TEST_TAG" "$TNODES" "$FTEST_ARG"
diff --git a/ci/unit/test_main.sh b/ci/unit/test_main.sh
index d7bbdb5358a..7e2adf12dc9 100755
--- a/ci/unit/test_main.sh
+++ b/ci/unit/test_main.sh
@@ -1,7 +1,7 @@
 #!/bin/bash
 #
 #  Copyright 2020-2023 Intel Corporation.
-#  Copyright 2025 Hewlett Packard Enterprise Development LP
+#  Copyright 2025-2026 Hewlett Packard Enterprise Development LP
 #
 #  SPDX-License-Identifier: BSD-2-Clause-Patent
 #
@@ -43,9 +43,10 @@ NODE=${NODELIST%%,*}
 rsync -rlpt -z -e "ssh $SSH_KEY_ARGS" . jenkins@"$NODE":build/
 
 # shellcheck disable=SC2029
-ssh -tt "$SSH_KEY_ARGS" jenkins@"$NODE" "HOSTNAME=$HOSTNAME        \
-                                         HOSTPWD=$PWD              \
+ssh -tt "$SSH_KEY_ARGS" jenkins@"$NODE" "HOSTNAME=$HOSTNAME \
+                                         HOSTPWD=$PWD \
                                          WITH_VALGRIND=$WITH_VALGRIND \
                                          DAOS_HTTPS_PROXY=\"${DAOS_HTTPS_PROXY:-}\" \
-                                         BDEV_TEST=$BDEV_TEST       \
+                                         DAOS_NO_PROXY=\"${DAOS_NO_PROXY:-}\" \
+                                         BDEV_TEST=$BDEV_TEST \
                                          ./build/ci/unit/test_main_node.sh"
diff --git a/ci/unit/test_main_node.sh b/ci/unit/test_main_node.sh
index ad03978ee84..d8568577a5b 100755
--- a/ci/unit/test_main_node.sh
+++ b/ci/unit/test_main_node.sh
@@ -97,5 +97,7 @@ pip install --upgrade pip
 pip install --requirement requirements-utest.txt
 pip install /opt/daos/lib/daos/python/
 
-HTTPS_PROXY="${DAOS_HTTPS_PROXY:-}" utils/run_utest.py $RUN_TEST_VALGRIND \
+HTTPS_PROXY="${DAOS_HTTPS_PROXY:-}" \
+NO_PROXY="${DAOS_NO_PROXY:-}" \
+utils/run_utest.py $RUN_TEST_VALGRIND \
     --no-fail-on-error $VDB_ARG --log_dir="$test_log_dir" $SUDO_ARG
diff --git a/ci/unit/test_nlt.sh b/ci/unit/test_nlt.sh
index a5f50545a15..b8176aca873 100755
--- a/ci/unit/test_nlt.sh
+++ b/ci/unit/test_nlt.sh
@@ -15,4 +15,5 @@ rsync -rlpt -z -e "ssh $SSH_KEY_ARGS" .build_vars* opt-daos.tar utils requiremen
 
 # shellcheck disable=SC2029
 ssh -tt "$SSH_KEY_ARGS" jenkins@"$NODE" "DAOS_HTTPS_PROXY=\"${DAOS_HTTPS_PROXY:-}\" \
+                                         DAOS_NO_PROXY=\"${DAOS_NO_PROXY:-}\" \
                                          $(cat "$mydir/test_nlt_node.sh")"
diff --git a/ci/unit/test_nlt_node.sh b/ci/unit/test_nlt_node.sh
index 730dea30423..62a734f3bcf 100755
--- a/ci/unit/test_nlt_node.sh
+++ b/ci/unit/test_nlt_node.sh
@@ -45,5 +45,7 @@ pip install /opt/daos/lib/daos/python/
 sudo prlimit --nofile=1024:262144 --pid $$
 prlimit -n
 
-HTTPS_PROXY="${DAOS_HTTPS_PROXY:-}" ./utils/node_local_test.py --max-log-size 1950MiB \
+HTTPS_PROXY="${DAOS_HTTPS_PROXY:-}" \
+    NO_PROXY="${DAOS_NO_PROXY:-}" \
+    ./utils/node_local_test.py --max-log-size 1950MiB \
     --dfuse-dir /localhome/jenkins/ --log-usage-save nltir.xml --log-usage-export nltr.json all
diff --git a/ftest.sh b/ftest.sh
index de5f61a6c24..9083112f603 100755
--- a/ftest.sh
+++ b/ftest.sh
@@ -1,7 +1,7 @@
 #!/bin/bash
 # /*
 #  * (C) Copyright 2016-2022 Intel Corporation.
-#  * Copyright 2025 Hewlett Packard Enterprise Development LP
+#  * Copyright 2025-2026 Hewlett Packard Enterprise Development LP
 #  *
 #  * SPDX-License-Identifier: BSD-2-Clause-Patent
 #  */
@@ -114,6 +114,7 @@ shift || true
 args+=" $*"
 
 _DAOS_HTTPS_PROXY=${DAOS_HTTPS_PROXY:-}
+_DAOS_NO_PROXY=${DAOS_NO_PROXY:-}
 # shellcheck disable=SC2029
 # shellcheck disable=SC2086
 if ! ssh -A $SSH_KEY_ARGS ${REMOTE_ACCT:-jenkins}@"${nodes[0]}" \
@@ -130,6 +131,7 @@ if ! ssh -A $SSH_KEY_ARGS ${REMOTE_ACCT:-jenkins}@"${nodes[0]}" \
      WITH_VALGRIND=\"$WITH_VALGRIND\"
      STAGE_NAME=\"$STAGE_NAME\"
      DAOS_HTTPS_PROXY=\"$_DAOS_HTTPS_PROXY\"
+     DAOS_NO_PROXY=\"$_DAOS_NO_PROXY\"
      $(sed -e '1,/^$/d' "$SCRIPT_LOC"/main.sh)"; then
     rc=${PIPESTATUS[0]}
     if ${SETUP_ONLY:-false}; then
diff --git a/src/tests/ftest/dfuse/daos_build.py b/src/tests/ftest/dfuse/daos_build.py
index dceba07d233..c336e0ca8f9 100644
--- a/src/tests/ftest/dfuse/daos_build.py
+++ b/src/tests/ftest/dfuse/daos_build.py
@@ -1,6 +1,6 @@
 """
   (C) Copyright 2020-2024 Intel Corporation.
-  (C) Copyright 2025 Hewlett Packard Enterprise Development LP
+  (C) Copyright 2025-2026 Hewlett Packard Enterprise Development LP
   (C) Copyright 2025 Google LLC
 
   SPDX-License-Identifier: BSD-2-Clause-Patent
@@ -104,7 +104,8 @@ def run_build_test(self, cache_mode, il_lib=None, run_on_vms=False):
     remote_env['PATH'] = f"{os.path.join(mount_dir, 'venv', 'bin')}:$PATH"
     remote_env['VIRTUAL_ENV'] = os.path.join(mount_dir, 'venv')
     remote_env['COVFILE'] = os.environ['COVFILE']
-    remote_env['HTTPS_PROXY'] = os.environ['HTTPS_PROXY']
+    remote_env['HTTPS_PROXY'] = os.environ.get('HTTPS_PROXY', '')
+    remote_env['NO_PROXY'] = os.environ.get('NO_PROXY', '')
 
     if il_lib is not None:
         remote_env['LD_PRELOAD'] = os.path.join(self.prefix, 'lib64', il_lib)
diff --git a/src/tests/ftest/scripts/main.sh b/src/tests/ftest/scripts/main.sh
index 3f3e2c7cb69..b8d0d58ef8f 100755
--- a/src/tests/ftest/scripts/main.sh
+++ b/src/tests/ftest/scripts/main.sh
@@ -102,6 +102,9 @@ if [ -n "$DAOS_HTTPS_PROXY" ]; then
     # shellcheck disable=SC2154
     export HTTPS_PROXY="${DAOS_HTTPS_PROXY:-""}"
 fi
+if [ -n "$DAOS_NO_PROXY" ]; then
+    export NO_PROXY="${DAOS_NO_PROXY:-""}"
+fi
 
 launch_node_args="-ts ${TEST_NODES}"
 if [ "${STAGE_NAME}" == "Functional Hardware 24" ]; then
diff --git a/utils/node_local_test.py b/utils/node_local_test.py
index b64ba130a87..724843e87b5 100755
--- a/utils/node_local_test.py
+++ b/utils/node_local_test.py
@@ -442,6 +442,9 @@ def get_base_env(clean=False):
     http_proxy = os.environ.get('HTTPS_PROXY')
     if http_proxy:
         env['HTTPS_PROXY'] = http_proxy
+    no_proxy = os.environ.get('NO_PROXY')
+    if no_proxy:
+        env['NO_PROXY'] = no_proxy
 
     # Enable this to debug memory errors, it has a performance impact but will scan the heap
     # for corruption.  See DAOS-12735 for why this can cause problems in practice.
diff --git a/utils/run_utest.py b/utils/run_utest.py
index 39261be2a51..f16288d4d79 100755
--- a/utils/run_utest.py
+++ b/utils/run_utest.py
@@ -2,7 +2,7 @@
 """
   Copyright 2023-2024 Intel Corporation.
   Copyright 2025 Google LLC
-  Copyright 2025 Hewlett Packard Enterprise Development LP
+  Copyright 2025-2026 Hewlett Packard Enterprise Development LP
   All rights reserved.
 
   SPDX-License-Identifier: BSD-2-Clause-Patent
@@ -364,6 +364,9 @@ def __init__(self, suite, config, path_info, args):
         http_proxy = os.environ.get('HTTPS_PROXY')
         if http_proxy:
             self.env['HTTPS_PROXY'] = http_proxy
+        no_proxy = os.environ.get('NO_PROXY')
+        if no_proxy:
+            self.env['NO_PROXY'] = no_proxy
 
     def log_dir(self):
         """Return the log directory"""