diff --git a/server/routers/target/createTarget.ts b/server/routers/target/createTarget.ts
index 478c8d2a3c8a6de4a780ef1937a673618cce1929..742cdf684471cfd75748677ce67bc56877fb168a 100644
--- a/server/routers/target/createTarget.ts
+++ b/server/routers/target/createTarget.ts
@@ -23,7 +23,7 @@ const createTargetParamsSchema = z
 
 const createTargetSchema = z
     .object({
-        ip: z.string().ip(),
+        ip: z.string().ip().or(z.literal('localhost')),
         method: z.string().min(1).max(10),
         port: z.number().int().min(1).max(65535),
         protocol: z.string().optional(),
diff --git a/server/routers/target/updateTarget.ts b/server/routers/target/updateTarget.ts
index 448f5018cd9e869e96f09d32eeca8a41727d5bba..3e2880203b080d8e6c5fa63a237512fe4a147fc2 100644
--- a/server/routers/target/updateTarget.ts
+++ b/server/routers/target/updateTarget.ts
@@ -19,7 +19,7 @@ const updateTargetParamsSchema = z
 
 const updateTargetBodySchema = z
     .object({
-        ip: z.string().ip().optional(), // for now we cant update the ip; you will have to delete
+        ip: z.string().ip().or(z.literal('localhost')).optional(), // for now we cant update the ip; you will have to delete
         method: z.string().min(1).max(10).optional(),
         port: z.number().int().min(1).max(65535).optional(),
         enabled: z.boolean().optional()
diff --git a/src/app/[orgId]/settings/resources/[resourceId]/connectivity/page.tsx b/src/app/[orgId]/settings/resources/[resourceId]/connectivity/page.tsx
index c01cbd5dc17bffbda0ae60c063c908d2ed59bf2b..0dad760bd084c8329a6ad2b638203416eeb9b2e2 100644
--- a/src/app/[orgId]/settings/resources/[resourceId]/connectivity/page.tsx
+++ b/src/app/[orgId]/settings/resources/[resourceId]/connectivity/page.tsx
@@ -59,20 +59,17 @@ import {
     SettingsSectionTitle,
     SettingsSectionDescription,
     SettingsSectionBody,
-    SettingsSectionForm,
     SettingsSectionFooter
 } from "@app/components/Settings";
 import { SwitchInput } from "@app/components/SwitchInput";
 
 const addTargetSchema = z.object({
-    ip: z.string().ip(),
+    ip: z.string().ip().or(z.literal('localhost')),
     method: z.string(),
     port: z.coerce.number().int().positive()
     // protocol: z.string(),
 });
 
-type AddTargetFormValues = z.infer<typeof addTargetSchema>;
-
 type LocalTarget = Omit<
     ArrayElement<ListTargetsResponse["targets"]> & {
         new?: boolean;
@@ -182,7 +179,7 @@ export default function ReverseProxyTargets(props: {
             // make sure that the target IP is within the site subnet
             const targetIp = data.ip;
             const subnet = site.subnet;
-            if (!isIPInSubnet(targetIp, subnet)) {
+            if (targetIp === "localhost" || !isIPInSubnet(targetIp, subnet)) {
                 toast({
                     variant: "destructive",
                     title: "Invalid target IP",