diff --git a/obp-api/src/main/resources/props/sample.props.template b/obp-api/src/main/resources/props/sample.props.template
index 43b99b6102..bba9e13148 100644
--- a/obp-api/src/main/resources/props/sample.props.template
+++ b/obp-api/src/main/resources/props/sample.props.template
@@ -287,6 +287,7 @@ db.url=jdbc:h2:./lift_proto.db;NON_KEYWORDS=VALUE;DB_CLOSE_ON_EXIT=FALSE
 ## This is needed for oauth to work. it's important to access the api over this url, e.g.
 ## If this is 127.0.0.1 do NOT use localhost to access it.
 ## (this needs to be a URL)
+## IMPORTANT: hostname is also used as fallback for local_provider_name - do not change unless necessary
 hostname=http://127.0.0.1
 
 # Used as the base URL for password reset and email validation links sent via email.
@@ -298,6 +299,13 @@ portal_external_url=http://localhost:5174
 ## To start the server, use: java -jar obp-api/target/obp-api.jar
 dev.port=8080
 
+## Bind address for http4s server (optional)
+## If not set, the server will parse and use the host from the hostname property above
+## Use this if you need to bind to a different address than what's in hostname
+## Example: bind_address=0.0.0.0 (to listen on all interfaces)
+## Example: bind_address=127.0.0.1 (to listen only on localhost)
+#bind_address=127.0.0.1
+
 
 #The start of the api path (before the version)
 #It is *strongly* recommended not to change this - since Apps will be expecting the api at /obp/+version
diff --git a/obp-api/src/main/scala/bootstrap/http4s/Http4sServer.scala b/obp-api/src/main/scala/bootstrap/http4s/Http4sServer.scala
index 6298630950..e8262339ee 100644
--- a/obp-api/src/main/scala/bootstrap/http4s/Http4sServer.scala
+++ b/obp-api/src/main/scala/bootstrap/http4s/Http4sServer.scala
@@ -2,9 +2,8 @@ package bootstrap.http4s
 
 import cats.effect._
 import code.api.util.APIUtil
-import code.api.util.http4s.Http4sApp
+import code.api.util.http4s.{Http4sApp, Http4sConfigUtil}
 import com.comcast.ip4s._
-import org.http4s.Uri
 import org.http4s.ember.server._
 
 object Http4sServer extends IOApp {
@@ -12,22 +11,15 @@ object Http4sServer extends IOApp {
   //Start OBP relevant objects and settings; this step MUST be executed first
   // new bootstrap.http4s.Http4sBoot().boot
   new bootstrap.liftweb.Boot().boot
- 
-  // Parse hostname - support both "127.0.0.1" and "http://127.0.0.1" formats
-  private def parseHostname(hostnameValue: String): String = {
-    val trimmed = hostnameValue.trim
-    // Try to parse as URI first
-    Uri.fromString(trimmed).toOption
-      .flatMap(_.host.map(_.renderString))
-      .getOrElse(trimmed) // If not a valid URI, use as-is
-  }
-
-  val host = parseHostname(code.api.Constant.HostName)
+  
+  // Get bind address: use bind_address prop if set, otherwise parse from hostname
+  // Note: hostname prop must remain unchanged as it may be used for local_provider_name fallback
+  val host =  Http4sConfigUtil.parseHostname(APIUtil.getPropsValue("bind_address",code.api.Constant.HostName))
   val port = APIUtil.getPropsAsIntValue("dev.port",8080)
 
   // Use shared httpApp configuration (same as tests)
   val httpApp = Http4sApp.httpApp
-  
+
   override def run(args: List[String]): IO[ExitCode] = EmberServerBuilder
     .default[IO]
     .withHost(Host.fromString(host).get)
diff --git a/obp-api/src/main/scala/code/api/util/http4s/Http4sSupport.scala b/obp-api/src/main/scala/code/api/util/http4s/Http4sSupport.scala
index f9f87715b7..89cae07d3e 100644
--- a/obp-api/src/main/scala/code/api/util/http4s/Http4sSupport.scala
+++ b/obp-api/src/main/scala/code/api/util/http4s/Http4sSupport.scala
@@ -436,3 +436,35 @@ object ResourceDocMatcher {
     )
   }
 }
+
+/**
+ * Http4s configuration utilities.
+ */
+object Http4sConfigUtil {
+  
+  /**
+   * Parse hostname from a string that may be either a plain host or a full URI.
+   * 
+   * Supports both formats:
+   * - Plain host: "127.0.0.1" or "localhost"
+   * - Full URI: "http://127.0.0.1:8080" or "https://example.com"
+   * 
+   * @param hostnameValue The hostname or URI string to parse
+   * @return The extracted hostname/IP address
+   * 
+   * Examples:
+   * {{{
+   * parseHostname("127.0.0.1")                  // Returns: "127.0.0.1"
+   * parseHostname("http://127.0.0.1:8080")      // Returns: "127.0.0.1"
+   * parseHostname("https://api.example.com")    // Returns: "api.example.com"
+   * parseHostname("localhost")                  // Returns: "localhost"
+   * }}}
+   */
+  def parseHostname(hostnameValue: String): String = {
+    val trimmed = hostnameValue.trim
+    // Try to parse as URI first
+    Uri.fromString(trimmed).toOption
+      .flatMap(_.host.map(_.renderString))
+      .getOrElse(trimmed) // If not a valid URI, use as-is
+  }
+}
diff --git a/obp-api/src/test/scala/code/api/util/http4s/Http4sConfigUtilTest.scala b/obp-api/src/test/scala/code/api/util/http4s/Http4sConfigUtilTest.scala
new file mode 100644
index 0000000000..af0278b3d0
--- /dev/null
+++ b/obp-api/src/test/scala/code/api/util/http4s/Http4sConfigUtilTest.scala
@@ -0,0 +1,42 @@
+package code.api.util.http4s
+
+import org.scalatest.{FlatSpec, Matchers}
+
+class Http4sConfigUtilTest extends FlatSpec with Matchers {
+  
+  "parseHostname" should "extract hostname from plain IP address" in {
+    Http4sConfigUtil.parseHostname("127.0.0.1") shouldBe "127.0.0.1"
+  }
+  
+  it should "extract hostname from HTTP URI" in {
+    Http4sConfigUtil.parseHostname("http://127.0.0.1:8080") shouldBe "127.0.0.1"
+  }
+  
+  it should "extract hostname from HTTPS URI" in {
+    Http4sConfigUtil.parseHostname("https://api.example.com") shouldBe "api.example.com"
+  }
+  
+  it should "handle localhost" in {
+    Http4sConfigUtil.parseHostname("localhost") shouldBe "localhost"
+  }
+  
+  it should "handle URI with path" in {
+    Http4sConfigUtil.parseHostname("http://example.com/path") shouldBe "example.com"
+  }
+  
+  it should "trim whitespace" in {
+    Http4sConfigUtil.parseHostname("  127.0.0.1  ") shouldBe "127.0.0.1"
+  }
+  
+  it should "handle URI with port" in {
+    Http4sConfigUtil.parseHostname("http://localhost:8080") shouldBe "localhost"
+  }
+  
+  it should "handle domain names" in {
+    Http4sConfigUtil.parseHostname("example.com") shouldBe "example.com"
+  }
+  
+  it should "handle full URL with protocol, port and path" in {
+    Http4sConfigUtil.parseHostname("https://api.example.com:443/v1/endpoint") shouldBe "api.example.com"
+  }
+}
diff --git a/release_notes.md b/release_notes.md
index f6b79cb2c0..0652d39f43 100644
--- a/release_notes.md
+++ b/release_notes.md
@@ -3,12 +3,11 @@
 ### Most recent changes at top of file
 ```
 Date          Commit        Action
-12/12/2025    f2e7b827      Http4s runner configuration
-                            Added http4s.host and http4s.port to props sample template:
-                            - http4s.host=127.0.0.1
-                            - http4s.port=8086
-                            These properties control the bind address of bootstrap.http4s.Http4sServer
-                            when running via the obp-http4s-runner fat JAR. 
+27/02/2026    24035862      Http4s server bind address configuration
+                            Added bind_address property for http4s server configuration:
+                            - bind_address: Optional property to specify the network binding address
+                            - Falls back to parsing hostname property if not set
+                            - Maintains backward compatibility with existing hostname configuration
 11/12/2025    3c2df942      BREAKING CHANGE: Migration from Akka to Apache Pekko™ 1.1.2
                             Replaced Akka 2.5.32 with Apache Pekko™ 1.1.2 to address Akka licensing changes.
                             Updated all imports from com.typesafe.akka to org.apache.pekko.