diff --git a/pkg/config/config.go b/pkg/config/config.go
index 6e9ef96bb..02cbcfb88 100644
--- a/pkg/config/config.go
+++ b/pkg/config/config.go
@@ -1249,6 +1249,13 @@ func (h *hookConfig) validate(hookType string) (err error) {
 	if h.URI == "" {
 		return errors.Errorf("Missing required field in config: auth.hook.%s.uri", hookType)
 	}
+	// Skip validation if URI contains unresolved env() reference
+	// This allows users to use env(SUPABASE_PROJECT_URL)/functions/v1/...
+	// which will be resolved at deploy time by the platform
+	if strings.Contains(h.URI, "env(") {
+		fmt.Fprintf(os.Stderr, "WARN: auth.hook.%s.uri contains env() reference, skipping local validation\n", hookType)
+		return nil
+	}
 	parsed, err := url.Parse(h.URI)
 	if err != nil {
 		return errors.Errorf("failed to parse template url: %w", err)
diff --git a/pkg/config/config_test.go b/pkg/config/config_test.go
index 43a292fc3..c12b78551 100644
--- a/pkg/config/config_test.go
+++ b/pkg/config/config_test.go
@@ -319,6 +319,13 @@ func TestValidateHookURI(t *testing.T) {
 			},
 			errorMsg: "Invalid hook config: auth.hook.valid pg-functions URI with unsupported secrets.secrets is unsupported for pg-functions URI",
 		},
+		{
+			name: "URI with env() reference skips validation",
+			hookConfig: hookConfig{
+				Enabled: true,
+				URI:     "env(SUPABASE_PROJECT_URL)/functions/v1/send-email",
+			},
+		},
 	}
 
 	for _, tt := range tests {