diff --git a/apps/login/src/lib/api.ts b/apps/login/src/lib/api.ts
index 31301fdc77..6ccee72c68 100644
--- a/apps/login/src/lib/api.ts
+++ b/apps/login/src/lib/api.ts
@@ -4,10 +4,10 @@ import { getInstanceByHost } from "./zitadel";
 export async function getInstanceUrl(host: string): Promise<string> {
   const [hostname, port] = host.split(":");
 
-  if (hostname === "localhost") {
-    console.log("fallback to ZITADEL_API_URL");
-    return process.env.ZITADEL_API_URL || "";
-  }
+  // if (hostname === "localhost") {
+  //   console.log("fallback to ZITADEL_API_URL");
+  //   return process.env.ZITADEL_API_URL || "";
+  // }
 
   const instance = await getInstanceByHost(host).catch((error) => {
     console.error(`Could not get instance by host ${host}`, error);
diff --git a/apps/login/src/lib/self.ts b/apps/login/src/lib/self.ts
index 5f02afcf5f..4977967018 100644
--- a/apps/login/src/lib/self.ts
+++ b/apps/login/src/lib/self.ts
@@ -3,16 +3,30 @@
 import { createServerTransport } from "@zitadel/client/node";
 import { createUserServiceClient } from "@zitadel/client/v2";
 import { headers } from "next/headers";
+import { getInstanceUrl } from "./api";
 import { getSessionCookieById } from "./cookies";
 import { getSession } from "./zitadel";
 
-const transport = (token: string) =>
-  createServerTransport(token, {
-    baseUrl: process.env.ZITADEL_API_URL!,
-  });
+const transport = async (host: string, token: string) => {
+  let instanceUrl;
+  try {
+    instanceUrl = await getInstanceUrl(host);
+  } catch (error) {
+    console.error(
+      `Could not get instance url for ${host}, fallback to ZITADEL_API_URL`,
+      error,
+    );
+    instanceUrl = process.env.ZITADEL_API_URL;
+  }
 
-const myUserService = (sessionToken: string) => {
-  return createUserServiceClient(transport(sessionToken));
+  return createServerTransport(token, {
+    baseUrl: instanceUrl,
+  });
+};
+
+const myUserService = async (host: string, sessionToken: string) => {
+  const transportPromise = await transport(host, sessionToken);
+  return createUserServiceClient(transportPromise);
 };
 
 export async function setMyPassword({
@@ -40,7 +54,7 @@ export async function setMyPassword({
     return { error: "Could not load session" };
   }
 
-  const service = await myUserService(`${sessionCookie.token}`);
+  const service = await myUserService(host, `${sessionCookie.token}`);
 
   if (!session?.factors?.user?.id) {
     return { error: "No user id found in session" };
diff --git a/apps/login/src/lib/server/password.ts b/apps/login/src/lib/server/password.ts
index c8fa186d90..9d20e10022 100644
--- a/apps/login/src/lib/server/password.ts
+++ b/apps/login/src/lib/server/password.ts
@@ -28,6 +28,7 @@ import {
   SetPasswordRequestSchema,
 } from "@zitadel/proto/zitadel/user/v2/user_service_pb";
 import { headers } from "next/headers";
+import { getInstanceUrl } from "../api";
 import { getNextUrl } from "../client";
 import { getSessionCookieById, getSessionCookieByLoginName } from "../cookies";
 import {
@@ -346,15 +347,29 @@ export async function checkSessionAndSetPassword({
       }
     });
   } else {
-    const myUserService = (sessionToken: string) => {
-      return createUserServiceClient(
-        createServerTransport(sessionToken, {
-          baseUrl: process.env.ZITADEL_API_URL!,
-        }),
-      );
+    const transport = async (host: string, token: string) => {
+      let instanceUrl;
+      try {
+        instanceUrl = await getInstanceUrl(host);
+      } catch (error) {
+        console.error(
+          `Could not get instance url for ${host}, fallback to ZITADEL_API_URL`,
+          error,
+        );
+        instanceUrl = process.env.ZITADEL_API_URL;
+      }
+
+      return createServerTransport(token, {
+        baseUrl: instanceUrl,
+      });
     };
 
-    const selfService = await myUserService(`${sessionCookie.token}`);
+    const myUserService = async (host: string, sessionToken: string) => {
+      const transportPromise = await transport(host, sessionToken);
+      return createUserServiceClient(transportPromise);
+    };
+
+    const selfService = await myUserService(host, `${sessionCookie.token}`);
 
     return selfService
       .setPassword(