diff --git a/backend/src/backend/auth/auth_helper.py b/backend/src/backend/auth/auth_helper.py
index 5a4bf4af9..eb9ea328f 100644
--- a/backend/src/backend/auth/auth_helper.py
+++ b/backend/src/backend/auth/auth_helper.py
@@ -34,8 +34,9 @@ async def _login_route(self, request: Request, redirect_url_after_login: Optiona
         for value in config.RESOURCE_SCOPES_DICT.values():
             all_scopes_list.extend(value)
 
-        if "CODESPACE_NAME" in os.env:
-            redirect_uri = f"https://{os.env['CODESPACE_NAME']}-8080.app.github.dev/auth-callback"
+        if "CODESPACE_NAME" in os.environ:
+            # Developer is using GitHub codespace, so we use the GitHub codespace provided URL instead of localhost.
+            redirect_uri = f"https://{os.environ['CODESPACE_NAME']}-8080.app.github.dev/auth-callback"
         else:
             redirect_uri = f"http://localhost:8080/auth-callback"
 
diff --git a/docker-compose.yml b/docker-compose.yml
index dda1034d3..f6e4e1c56 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -31,6 +31,7 @@ services:
       - WEBVIZ_SMDA_RESOURCE_SCOPE
       - WEBVIZ_SMDA_SUBSCRIPTION_KEY
       - WEBVIZ_SUMO_ENV
+      - CODESPACE_NAME  # Automatically set env. variable by GitHub codespace
     volumes:
       - ./backend/src:/home/appuser/backend/src