diff --git a/packages/hoppscotch-common/src/components/settings/Proxy.vue b/packages/hoppscotch-common/src/components/settings/Proxy.vue
index 6c136ea5..5a2f92f1 100644
--- a/packages/hoppscotch-common/src/components/settings/Proxy.vue
+++ b/packages/hoppscotch-common/src/components/settings/Proxy.vue
@@ -31,20 +31,17 @@
 </template>
 
 <script setup lang="ts">
-import { ref, onMounted, computed, watch } from "vue"
+import { ref, computed, watch } from "vue"
 import { refAutoReset } from "@vueuse/core"
-
 import { useService } from "dioc/vue"
 
 import { useI18n } from "~/composables/i18n"
 import { useToast } from "~/composables/toast"
 import { useReadonlyStream } from "~/composables/stream"
-import { getDefaultProxyUrl } from "~/helpers/proxyUrl"
 import { platform } from "~/platform"
 
 import { KernelInterceptorProxyStore } from "~/platform/std/kernel-interceptors/proxy/store"
 import { ProxyKernelInterceptorService } from "~/platform/std/kernel-interceptors/proxy/index"
-
 import { KernelInterceptorService } from "~/services/kernel-interceptor.service"
 
 import IconRotateCCW from "~icons/lucide/rotate-ccw"
@@ -57,26 +54,39 @@ const store = useService(KernelInterceptorProxyStore)
 const interceptorService = useService(KernelInterceptorService)
 const proxyInterceptorService = useService(ProxyKernelInterceptorService)
 
-const proxyUrl = ref("")
+// Local editable copy, synced from the reactive store
+const proxyUrl = ref(store.settings$.value.proxyUrl)
+
+// When the store's settings change (e.g. async init resolves, or external
+// tab updates via the Store watcher), keep the local input in sync —
+// but only if the user hasn't actively edited it to something different.
+watch(
+  () => store.settings$.value.proxyUrl,
+  (storeUrl, prevStoreUrl) => {
+    // Don't overwrite user edits, only sync when local still matches
+    // the previous store value (i.e. user hasn't typed anything new)
+    if (proxyUrl.value === "" || proxyUrl.value === prevStoreUrl) {
+      proxyUrl.value = storeUrl
+    }
+  },
+  { immediate: true }
+)
 
 const currentUser = useReadonlyStream(
   platform.auth.getCurrentUserStream(),
   platform.auth.getCurrentUser()
 )
 
-async function updateProxyUrl() {
-  await store.updateSettings({ proxyUrl: proxyUrl.value })
-  toast.success(t("state.saved"))
-}
-
-watch(
-  () => currentUser.value,
-  async () => {
-    if (!currentUser.value) {
-      proxyUrl.value = await getDefaultProxyUrl()
-    }
+// Reset proxy settings to platform defaults when user logs out.
+// Force-sync the local ref after reset — the settings$ watch has a guard
+// that skips sync when the user has unsaved local edits, but logout should
+// unconditionally reset the input.
+watch(currentUser, async (user) => {
+  if (!user) {
+    await store.resetSettings()
+    proxyUrl.value = store.settings$.value.proxyUrl
   }
-)
+})
 
 const enabled = computed(
   () => interceptorService.getCurrentId() === proxyInterceptorService.id
@@ -87,16 +97,16 @@ const clearIcon = refAutoReset<typeof IconRotateCCW | typeof IconCheck>(
   1000
 )
 
+async function updateProxyUrl() {
+  await store.updateSettings({ proxyUrl: proxyUrl.value })
+  toast.success(t("state.saved"))
+}
+
 async function resetSettings() {
   await store.resetSettings()
-  const settings = store.getSettings()
-  proxyUrl.value = settings.proxyUrl
+  // Store is reactive — settings$ already updated, just sync local ref
+  proxyUrl.value = store.settings$.value.proxyUrl
   clearIcon.value = IconCheck
   toast.success(t("state.cleared"))
 }
-
-onMounted(async () => {
-  const settings = store.getSettings()
-  proxyUrl.value = settings.proxyUrl
-})
 </script>
diff --git a/packages/hoppscotch-common/src/newstore/settings.ts b/packages/hoppscotch-common/src/newstore/settings.ts
index bdfa4458..cb05f924 100644
--- a/packages/hoppscotch-common/src/newstore/settings.ts
+++ b/packages/hoppscotch-common/src/newstore/settings.ts
@@ -3,7 +3,7 @@ import { Observable } from "rxjs"
 import { distinctUntilChanged, pluck } from "rxjs/operators"
 import type { KeysMatching } from "~/types/ts-utils"
 import DispatchingStore, { defineDispatchers } from "./DispatchingStore"
-import { DEFAULT_HOPP_PROXY_URL, getDefaultProxyUrl } from "~/helpers/proxyUrl"
+import { DEFAULT_HOPP_PROXY_URL } from "~/helpers/proxyUrl"
 
 export const HoppBgColors = ["system", "light", "dark", "black"] as const
 
@@ -87,12 +87,6 @@ export type SettingsDef = {
   ENABLE_EXPERIMENTAL_DOCUMENTATION: boolean
 }
 
-let defaultProxyURL = DEFAULT_HOPP_PROXY_URL
-
-getDefaultProxyUrl().then((url) => {
-  defaultProxyURL = url
-})
-
 export const getDefaultSettings = (): SettingsDef => {
   return {
     syncCollections: true,
@@ -122,8 +116,10 @@ export const getDefaultSettings = (): SettingsDef => {
     // Set empty because interceptor module will set the default value
     CURRENT_KERNEL_INTERCEPTOR_ID: "",
 
-    // TODO: Interceptor related settings should move under the interceptor systems
-    PROXY_URL: defaultProxyURL,
+    // Static fallback, the actual platform-aware proxy URL is managed by
+    // `KernelInterceptorProxyStore` which resolves it at runtime via
+    // `getDefaultProxyUrl()` (after the platform is initialised).
+    PROXY_URL: DEFAULT_HOPP_PROXY_URL,
     URL_EXCLUDES: {
       auth: true,
       httpUser: true,
diff --git a/packages/hoppscotch-common/src/platform/std/kernel-interceptors/proxy/store.ts b/packages/hoppscotch-common/src/platform/std/kernel-interceptors/proxy/store.ts
index f70308a2..ffe62887 100644
--- a/packages/hoppscotch-common/src/platform/std/kernel-interceptors/proxy/store.ts
+++ b/packages/hoppscotch-common/src/platform/std/kernel-interceptors/proxy/store.ts
@@ -1,12 +1,13 @@
+import { ref, readonly, toRaw, type Ref, type DeepReadonly } from "vue"
 import { Service } from "dioc"
 import { Store } from "~/kernel/store"
-import { settingsStore } from "~/newstore/settings"
+import { getDefaultProxyUrl, DEFAULT_HOPP_PROXY_URL } from "~/helpers/proxyUrl"
 import * as E from "fp-ts/Either"
 
 const STORE_NAMESPACE = "interceptors.proxy.v1"
 const SETTINGS_KEY = "settings"
 
-type ProxySettings = {
+export type ProxySettings = {
   version: "v1"
   proxyUrl: string
   accessToken: string
@@ -18,16 +19,41 @@ interface StoredData {
   lastUpdated: string
 }
 
-const DEFAULT_SETTINGS: ProxySettings = {
-  version: "v1",
-  proxyUrl: settingsStore.value.PROXY_URL ?? "https://proxy.hoppscotch.io",
-  accessToken: import.meta.env.VITE_PROXYSCOTCH_ACCESS_TOKEN ?? "",
+/**
+ * Build fresh default settings.
+ * Called as a function (not a static const) so that `getDefaultProxyUrl()`
+ * can resolve against the current platform, which isn't available at
+ * module-load time.
+ */
+async function buildDefaultSettings(): Promise<ProxySettings> {
+  return {
+    version: "v1",
+    proxyUrl: await getDefaultProxyUrl(),
+    accessToken: import.meta.env.VITE_PROXYSCOTCH_ACCESS_TOKEN ?? "",
+  }
 }
 
+/**
+ * Reactive proxy settings store.
+ *
+ * Exposes `settings$` as a readonly ref, any component or service that reads
+ * `settings$.value` will automatically re-render when settings change.
+ */
 export class KernelInterceptorProxyStore extends Service {
   public static readonly ID = "KERNEL_PROXY_INTERCEPTOR_STORE"
 
-  private settings: ProxySettings = { ...DEFAULT_SETTINGS }
+  private readonly _settings = ref<ProxySettings>({
+    version: "v1",
+    proxyUrl: DEFAULT_HOPP_PROXY_URL,
+    accessToken: import.meta.env.VITE_PROXYSCOTCH_ACCESS_TOKEN ?? "",
+  })
+
+  /**
+   * Reactive, read-only view of the current proxy settings.
+   */
+  public readonly settings$: DeepReadonly<Ref<ProxySettings>> = readonly(
+    this._settings
+  )
 
   async onServiceInit(): Promise<void> {
     const initResult = await Store.init()
@@ -42,7 +68,14 @@ export class KernelInterceptorProxyStore extends Service {
     watcher.on("change", async ({ value }) => {
       if (value) {
         const storedData = value as StoredData
-        this.settings = storedData.settings
+        this._settings.value = {
+          ...this._settings.value,
+          // Only sync user-configurable fields from external changes.
+          // Fallback to current value if persisted data is missing the field
+          // (e.g. older schema). accessToken stays env-derived.
+          proxyUrl:
+            storedData.settings?.proxyUrl ?? this._settings.value.proxyUrl,
+        }
       }
     })
   }
@@ -53,21 +86,29 @@ export class KernelInterceptorProxyStore extends Service {
       SETTINGS_KEY
     )
 
+    const defaults = await buildDefaultSettings()
+
     if (E.isRight(loadResult) && loadResult.right) {
       const storedData = loadResult.right
-      this.settings = {
-        ...DEFAULT_SETTINGS,
-        ...storedData.settings,
+      this._settings.value = {
+        ...defaults,
+        // Only restore user-configurable fields from storage.
+        // accessToken is env-derived (VITE_PROXYSCOTCH_ACCESS_TOKEN) and
+        // must always reflect the current deployment, not a stale persisted value.
+        proxyUrl: storedData.settings?.proxyUrl ?? defaults.proxyUrl,
       }
     } else {
+      this._settings.value = { ...defaults }
       await this.persistSettings()
     }
   }
 
   private async persistSettings(): Promise<void> {
+    const rawSettings = toRaw(this._settings.value)
+
     const storedData: StoredData = {
       version: "v1",
-      settings: this.settings,
+      settings: { ...rawSettings },
       lastUpdated: new Date().toISOString(),
     }
 
@@ -82,21 +123,31 @@ export class KernelInterceptorProxyStore extends Service {
     }
   }
 
-  public async updateSettings(settings: Partial<ProxySettings>): Promise<void> {
-    this.settings = {
-      ...this.settings,
-      ...settings,
+  /**
+   * Update user-configurable proxy settings.
+   * Only `proxyUrl` is user-configurable, `accessToken` and `version` are
+   * derived at runtime and cannot be overwritten by callers.
+   */
+  public async updateSettings(
+    patch: Pick<ProxySettings, "proxyUrl">
+  ): Promise<void> {
+    this._settings.value = {
+      ...this._settings.value,
+      proxyUrl: patch.proxyUrl,
     }
-
     await this.persistSettings()
   }
 
+  /**
+   * @deprecated Use `settings$` for reactive access. This exists only for
+   * non-reactive contexts (e.g. inside `execute()` in the interceptor service).
+   */
   public getSettings(): ProxySettings {
-    return { ...this.settings }
+    return { ...this._settings.value }
   }
 
   public async resetSettings(): Promise<void> {
-    this.settings = { ...DEFAULT_SETTINGS }
+    this._settings.value = await buildDefaultSettings()
     await this.persistSettings()
   }
 }