diff --git a/apps/studio/components/interfaces/Database/Replication/Destinations.tsx b/apps/studio/components/interfaces/Database/Replication/Destinations.tsx
index d9e58ccf4d8..462cb4c7125 100644
--- a/apps/studio/components/interfaces/Database/Replication/Destinations.tsx
+++ b/apps/studio/components/interfaces/Database/Replication/Destinations.tsx
@@ -19,7 +19,7 @@ import {
   TableHeader,
   TableRow,
 } from 'ui'
-import { GenericSkeletonLoader } from 'ui-patterns'
+import { Admonition, GenericSkeletonLoader } from 'ui-patterns'
 import { Input } from 'ui-patterns/DataInputs/Input'
 
 import { REPLICA_STATUS } from '../../Settings/Infrastructure/InfrastructureConfiguration/InstanceConfiguration.constants'
@@ -43,6 +43,7 @@ import { replicationKeys } from '@/data/replication/keys'
 import { fetchReplicationPipelineVersion } from '@/data/replication/pipeline-version-query'
 import { useReplicationPipelinesQuery } from '@/data/replication/pipelines-query'
 import { useReplicationSourcesQuery } from '@/data/replication/sources-query'
+import { checkLocalETLNotSetUp } from '@/data/replication/utils'
 import { useIsFeatureEnabled } from '@/hooks/misc/useIsFeatureEnabled'
 import { DOCS_URL } from '@/lib/constants'
 import { SHORTCUT_IDS } from '@/state/shortcuts/registry'
@@ -144,7 +145,9 @@ export const Destinations = () => {
     pipelines.length === 0
 
   const isLoading = isDestinationsLoading || isDatabasesLoading
-  const hasErrorsFetchingData = isDestinationsError || isDatabasesError
+
+  const isLocalETLNotSetUp = checkLocalETLNotSetUp(destinationsError)
+  const hasErrorsFetchingData = (!isLocalETLNotSetUp && isDestinationsError) || isDatabasesError
 
   const openDestinationPanel = () => {
     if (!newDestinationDefaultType) return
@@ -270,6 +273,13 @@ export const Destinations = () => {
           />
         )}
 
+        {isLocalETLNotSetUp && (
+          <Admonition
+            type="default"
+            title="ETL API not set up locally — destinations cannot be managed"
+          />
+        )}
+
         {isLoading ? (
           <GenericSkeletonLoader />
         ) : hasReplicas || hasDestinations ? (
diff --git a/apps/studio/components/interfaces/Database/Replication/ReplicationDiagram/index.tsx b/apps/studio/components/interfaces/Database/Replication/ReplicationDiagram/index.tsx
index f90e8741bff..83a9555cee7 100644
--- a/apps/studio/components/interfaces/Database/Replication/ReplicationDiagram/index.tsx
+++ b/apps/studio/components/interfaces/Database/Replication/ReplicationDiagram/index.tsx
@@ -12,6 +12,7 @@ import { timeout } from '@/lib/helpers'
 import '@xyflow/react/dist/style.css'
 
 import { SmoothstepEdge } from './Edges'
+import { checkLocalETLNotSetUp } from '@/data/replication/utils'
 
 export const ReplicationDiagram = () => {
   return (
@@ -42,10 +43,17 @@ const ReplicationDiagramContent = () => {
     [databases, projectRef]
   )
 
-  const { data, isSuccess: isSuccessDestinations } = useReplicationDestinationsQuery({
+  const {
+    data,
+    error: destinationsError,
+    isSuccess: isSuccessDestinations,
+    isError: isErrorDestinations,
+  } = useReplicationDestinationsQuery({
     projectRef,
   })
   const destinations = useMemo(() => data?.destinations ?? [], [data])
+  const isLocalETLNotSetUp = checkLocalETLNotSetUp(destinationsError)
+  const skipRenderingDestinations = isErrorDestinations && isLocalETLNotSetUp
 
   const nodes = useMemo(() => {
     return [
@@ -103,10 +111,14 @@ const ReplicationDiagramContent = () => {
   }
 
   useEffect(() => {
-    if (nodes.length > 0 && isSuccessDestinations && isSuccessReplicas) {
+    if (
+      nodes.length > 0 &&
+      (isSuccessDestinations || skipRenderingDestinations) &&
+      isSuccessReplicas
+    ) {
       setReactFlow()
     }
-  }, [nodes, isSuccessDestinations, isSuccessReplicas])
+  }, [nodes, isSuccessDestinations, skipRenderingDestinations, isSuccessReplicas])
 
   return (
     <div className="nowheel relative min-h-[350px]">
diff --git a/apps/studio/data/replication/utils.ts b/apps/studio/data/replication/utils.ts
index bf493328fab..31289a682e7 100644
--- a/apps/studio/data/replication/utils.ts
+++ b/apps/studio/data/replication/utils.ts
@@ -1,6 +1,20 @@
 import { MAX_RETRY_FAILURE_COUNT } from '@/data/query-client'
 import { ResponseError } from '@/types'
 
+const isLocal =
+  process.env.NEXT_PUBLIC_ENVIRONMENT !== 'prod' &&
+  process.env.NEXT_PUBLIC_ENVIRONMENT !== 'staging'
+
+export const checkLocalETLNotSetUp = (error: ResponseError | null) => {
+  if (error === null) return false
+
+  const isETLAPINotRunning =
+    error.code === undefined && error.message.includes('API error happened')
+  const isETLNotSetUp =
+    error.code === 503 && error.message.includes('replication API URL is not configured')
+  return isLocal && (isETLAPINotRunning || isETLNotSetUp)
+}
+
 export const checkReplicationFeatureFlagRetry = (
   failureCount: number,
   error: ResponseError
@@ -10,7 +24,9 @@ export const checkReplicationFeatureFlagRetry = (
     error.code === 503 &&
     error.message.includes('feature flag is required')
 
-  if (isFeatureFlagRequiredError) {
+  const isLocalETLNotSetUp = checkLocalETLNotSetUp(error)
+
+  if (isFeatureFlagRequiredError || isLocalETLNotSetUp) {
     return false
   }