diff --git a/__tests__/components/features/conversation/conversation-tabs.test.tsx b/__tests__/components/features/conversation/conversation-tabs.test.tsx
index fd09411bf..15d2ef8d1 100644
--- a/__tests__/components/features/conversation/conversation-tabs.test.tsx
+++ b/__tests__/components/features/conversation/conversation-tabs.test.tsx
@@ -510,7 +510,7 @@ describe("ConversationTabs localStorage behavior", () => {
       mockConversationId = REAL_CONVERSATION_ID;
     });
 
-    it("should hide the vscode link when the active backend is local", () => {
+    it("should show the vscode link when the active backend is local", () => {
       // Arrange
       seedActiveBackend({
         id: "local-test",
@@ -525,10 +525,10 @@ describe("ConversationTabs localStorage behavior", () => {
         wrapper: createWrapper(REAL_CONVERSATION_ID),
       });
 
-      // Assert
-      expect(
-        screen.queryByTestId("drawer-vscode-link"),
-      ).not.toBeInTheDocument();
+      // Assert — self-hosted backends serve VSCode too; the URL comes from
+      // the agent server's /api/vscode/url via useUnifiedVSCodeUrl's local
+      // branch, rather than from cloud `exposed_urls`.
+      expect(screen.getByTestId("drawer-vscode-link")).toBeInTheDocument();
     });
 
     it("should show the vscode link when the active backend is cloud", () => {
diff --git a/__tests__/hooks/use-unified-vscode-url.test.tsx b/__tests__/hooks/use-unified-vscode-url.test.tsx
index 888d2456b..13d52c048 100644
--- a/__tests__/hooks/use-unified-vscode-url.test.tsx
+++ b/__tests__/hooks/use-unified-vscode-url.test.tsx
@@ -108,7 +108,10 @@ function makeSandbox(
 
 function createWrapper() {
   const queryClient = new QueryClient({
-    defaultOptions: { queries: { retry: false } },
+    // `retry` is overridden per-query by the hook's own `retry: 3`, so error
+    // paths do retry here; `retryDelay: 0` keeps them from spending the
+    // default exponential backoff before the query settles.
+    defaultOptions: { queries: { retry: false, retryDelay: 0 } },
   });
   return ({ children }: { children: React.ReactNode }) => (
     <QueryClientProvider client={queryClient}>
@@ -172,6 +175,10 @@ describe("useUnifiedVSCodeUrl", () => {
     // Assert
     await waitFor(() => expect(result.current.isSuccess).toBe(true));
     expect(result.current.data?.url).toBeNull();
+    // Cloud is deliberately excluded from `isUnavailable`: a sandbox that is
+    // still STARTING will populate exposed_urls shortly, so the control stays
+    // visible. Only self-hosted backends can report a final "no editor".
+    expect(result.current.isUnavailable).toBe(false);
   });
 
   it("falls through to AgentServerConversationService.getVSCodeUrl in local mode", async () => {
@@ -199,5 +206,54 @@ describe("useUnifiedVSCodeUrl", () => {
     );
     expect(batchGetCloudSandboxes).not.toHaveBeenCalled();
     expect(ConversationService.getVSCodeUrl).not.toHaveBeenCalled();
+    // A backend that hands back a usable URL is available, so consumers
+    // render the control.
+    expect(result.current.isUnavailable).toBe(false);
+  });
+
+  it("reports isUnavailable in local mode when the backend has VSCode disabled", async () => {
+    // Arrange — `enable_vscode: false` makes agent-server answer
+    // `GET /vscode/url` with 503, so both resolvers reject and the query
+    // settles in `error` with no data. This is a permanent property of the
+    // deployment, not a transient failure, so consumers must be able to
+    // drop the control rather than offer a click that cannot do anything.
+    vi.mocked(useActiveBackend).mockReturnValue(localBackend);
+    vi.mocked(AgentServerConversationService.getVSCodeUrl).mockRejectedValue(
+      new Error("Request failed with status code 503"),
+    );
+    vi.mocked(ConversationService.getVSCodeUrl).mockRejectedValue(
+      new Error("Request failed with status code 503"),
+    );
+
+    // Act
+    const { result } = renderHook(() => useUnifiedVSCodeUrl(), {
+      wrapper: createWrapper(),
+    });
+
+    // Assert
+    await waitFor(() => expect(result.current.isError).toBe(true));
+    expect(result.current.isUnavailable).toBe(true);
+    expect(result.current.data).toBeUndefined();
+  });
+
+  it("reports isUnavailable in local mode when the backend reports no URL", async () => {
+    // Arrange — the request succeeds but carries no URL (VSCode enabled and
+    // yet nothing to point at, e.g. no connection token). Distinct code path
+    // from the 503 above: this settles in `success`, so `isError` alone
+    // would miss it.
+    vi.mocked(useActiveBackend).mockReturnValue(localBackend);
+    vi.mocked(AgentServerConversationService.getVSCodeUrl).mockResolvedValue({
+      vscode_url: null,
+    });
+
+    // Act
+    const { result } = renderHook(() => useUnifiedVSCodeUrl(), {
+      wrapper: createWrapper(),
+    });
+
+    // Assert
+    await waitFor(() => expect(result.current.isSuccess).toBe(true));
+    expect(result.current.data?.url).toBeNull();
+    expect(result.current.isUnavailable).toBe(true);
   });
 });
diff --git a/src/components/features/conversation/conversation-tabs/conversation-tabs.tsx b/src/components/features/conversation/conversation-tabs/conversation-tabs.tsx
index 2b030251b..4d87cc224 100644
--- a/src/components/features/conversation/conversation-tabs/conversation-tabs.tsx
+++ b/src/components/features/conversation/conversation-tabs/conversation-tabs.tsx
@@ -336,16 +336,10 @@ export function ConversationTabs({
               </div>
             </div>
           </div>
-          {/* Keep the ref'd wrapper mounted on local backends too — the
-              overflow measurement effect above bails if it's missing. */}
-          <div
-            ref={vscodeButtonRef}
-            className={cn(
-              "ml-auto shrink-0",
-              backend.kind === "cloud" && "pr-1",
-            )}
-          >
-            {backend.kind === "cloud" && <DrawerVSCodeLink />}
+          {/* The ref'd wrapper must stay mounted — the overflow measurement
+              effect above bails if it's missing. */}
+          <div ref={vscodeButtonRef} className="ml-auto shrink-0 pr-1">
+            <DrawerVSCodeLink />
           </div>
         </div>
       </div>
diff --git a/src/components/features/conversation/conversation-tabs/drawer-vscode-link.tsx b/src/components/features/conversation/conversation-tabs/drawer-vscode-link.tsx
index fb2b61e16..f1bc12fda 100644
--- a/src/components/features/conversation/conversation-tabs/drawer-vscode-link.tsx
+++ b/src/components/features/conversation/conversation-tabs/drawer-vscode-link.tsx
@@ -10,7 +10,7 @@ import { cn } from "#/utils/utils";
 export function DrawerVSCodeLink() {
   const { t } = useTranslation("openhands");
   const { curAgentState } = useAgentState();
-  const { data, refetch, isLoading } = useUnifiedVSCodeUrl();
+  const { data, refetch, isLoading, isUnavailable } = useUnifiedVSCodeUrl();
   const isRuntimeStarting = RUNTIME_STARTING_STATES.includes(curAgentState);
 
   const handleClick = async () => {
@@ -26,6 +26,12 @@ export function DrawerVSCodeLink() {
     }
   };
 
+  // Backends that have no editor to open (`enable_vscode: false`, or no URL
+  // reported) get no button rather than one that does nothing when clicked.
+  if (isUnavailable) {
+    return null;
+  }
+
   return (
     <button
       type="button"
diff --git a/src/hooks/query/use-unified-vscode-url.ts b/src/hooks/query/use-unified-vscode-url.ts
index 87b695348..c9f6dd2d1 100644
--- a/src/hooks/query/use-unified-vscode-url.ts
+++ b/src/hooks/query/use-unified-vscode-url.ts
@@ -59,6 +59,10 @@ export const useUnifiedVSCodeUrl = () => {
     enabled: !isCloud && runtimeIsReady && !!conversationId,
     refetchOnMount: true,
     retry: 3,
+    // `enable_vscode: false` answers 503, which is a deployment setting rather
+    // than a failure the user should see a toast about. The correct response is
+    // to offer no button (see `isUnavailable`), so suppress the global handler.
+    meta: { disableToast: true },
   });
 
   let data: VSCodeUrlResult | undefined;
@@ -68,6 +72,9 @@ export const useUnifiedVSCodeUrl = () => {
   let status: typeof localQuery.status;
   let error: unknown;
   let refetch: () => Promise<{ data: VSCodeUrlResult | undefined }>;
+  // True once we know there is nothing to open, so callers can render nothing
+  // instead of a control whose activation is a no-op.
+  let isUnavailable: boolean;
 
   if (isCloud) {
     const sandbox = cloudSandboxQuery.data;
@@ -94,6 +101,10 @@ export const useUnifiedVSCodeUrl = () => {
           : undefined,
       };
     };
+    // Cloud behavior is deliberately unchanged: a sandbox with no VSCODE
+    // entry in `exposed_urls` still surfaces the control. Narrowing this
+    // change to self-hosted keeps its blast radius off the cloud path.
+    isUnavailable = false;
   } else {
     data = localQuery.data;
     isLoading = localQuery.isLoading;
@@ -105,6 +116,12 @@ export const useUnifiedVSCodeUrl = () => {
       const result = await localQuery.refetch();
       return { data: result.data };
     };
+    // Two ways a self-hosted backend has no editor to offer, both final
+    // rather than transient (the query already retries three times):
+    //   - `enable_vscode: false` — `GET /vscode/url` answers 503, so the
+    //     query settles in `error` with no data at all.
+    //   - the server reports no URL — settles successfully with `url: null`.
+    isUnavailable = isError || (isSuccess && !localQuery.data?.url);
   }
 
   // Derive the i18n'd "URL unavailable" message outside `queryFn` so the
@@ -118,6 +135,7 @@ export const useUnifiedVSCodeUrl = () => {
     isLoading,
     isError,
     isSuccess,
+    isUnavailable,
     status,
     refetch,
   };