diff --git a/src/gateway/auth.test.ts b/src/gateway/auth.test.ts
index 1488b438237..f9ad9251437 100644
--- a/src/gateway/auth.test.ts
+++ b/src/gateway/auth.test.ts
@@ -649,4 +649,46 @@ describe("trusted-proxy auth", () => {
     expect(res.ok).toBe(true);
     expect(res.user).toBe("nick@example.com");
   });
+
+  it("allows local direct loopback connections to bypass trusted-proxy auth", async () => {
+    const res = await authorizeGatewayConnect({
+      auth: {
+        mode: "trusted-proxy",
+        allowTailscale: false,
+        trustedProxy: trustedProxyConfig,
+      },
+      connectAuth: null,
+      trustedProxies: ["10.0.0.1"],
+      req: {
+        socket: { remoteAddress: "127.0.0.1" },
+        headers: {
+          host: "127.0.0.1:18789",
+        },
+      } as never,
+    });
+
+    expect(res.ok).toBe(true);
+    expect(res.method).toBe("none");
+  });
+
+  it("does not bypass trusted-proxy auth for non-loopback connections", async () => {
+    const res = await authorizeGatewayConnect({
+      auth: {
+        mode: "trusted-proxy",
+        allowTailscale: false,
+        trustedProxy: trustedProxyConfig,
+      },
+      connectAuth: null,
+      trustedProxies: ["10.0.0.1"],
+      req: {
+        socket: { remoteAddress: "192.168.1.50" },
+        headers: {
+          host: "192.168.1.50:18789",
+        },
+      } as never,
+    });
+
+    expect(res.ok).toBe(false);
+    expect(res.reason).toBe("trusted_proxy_untrusted_source");
+  });
 });
diff --git a/src/gateway/auth.ts b/src/gateway/auth.ts
index dbfac4c8631..36c082e69af 100644
--- a/src/gateway/auth.ts
+++ b/src/gateway/auth.ts
@@ -380,6 +380,15 @@ export async function authorizeGatewayConnect(
   );
 
   if (auth.mode === "trusted-proxy") {
+    // Allow local direct connections (loopback, no proxy headers) to bypass
+    // trusted-proxy auth. Local CLI commands connect directly to 127.0.0.1
+    // without going through a reverse proxy, so they lack proxy identity
+    // headers. This is safe because only processes on the same machine can
+    // reach the loopback interface.
+    if (localDirect) {
+      return { ok: true, method: "none" };
+    }
+
     if (!auth.trustedProxy) {
       return { ok: false, reason: "trusted_proxy_config_missing" };
     }