diff --git a/cypress/e2e/blueprints/global_settings/settings-data.ts b/cypress/e2e/blueprints/global_settings/settings-data.ts
index a8c45896d19..cc457aedb5f 100644
--- a/cypress/e2e/blueprints/global_settings/settings-data.ts
+++ b/cypress/e2e/blueprints/global_settings/settings-data.ts
@@ -61,3 +61,20 @@ export const settings = {
     new:      'true'
   }
 };
+export const serverUrlLocalhostCases = [
+  'http://LOCALhosT:8005',
+  'http://localhost:8005',
+  'https://localhost:8005',
+  'localhost',
+  'http://127.0.0.1',
+  'https://127.0.0.1',
+  '127.0.0.1'
+];
+export const urlWithTrailingForwardSlash = 'https://test.com/';
+export const httpUrl = 'http://test.com';
+export const nonUrlCases = [
+  'test',
+  'https',
+  'test.com',
+  'a.test.com'
+];
diff --git a/cypress/e2e/po/edit/settings.po.ts b/cypress/e2e/po/edit/settings.po.ts
index a8595339656..425f64ac3a3 100644
--- a/cypress/e2e/po/edit/settings.po.ts
+++ b/cypress/e2e/po/edit/settings.po.ts
@@ -3,6 +3,7 @@ import LabeledInputPo from '@/cypress/e2e/po/components/labeled-input.po';
 import AsyncButtonPo from '@/cypress/e2e/po/components/async-button.po';
 import RadioGroupInputPo from '@/cypress/e2e/po/components/radio-group-input.po';
 import LabeledSelectPo from '@/cypress/e2e/po/components/labeled-select.po';
+import BannersPo from '@/cypress/e2e/po/components/banners.po';
 
 export default class SettingsEditPo extends PagePo {
   private static createPath(clusterId: string, setting: string) {
@@ -36,6 +37,14 @@ export default class SettingsEditPo extends PagePo {
     selectSettings.clickOptionWithLabel(label);
   }
 
+  serverUrlLocalhostWarningBanner(): BannersPo {
+    return new BannersPo('[data-testid="setting-serverurl-localhost-warning"]');
+  }
+
+  errorBannerContent(label: string): Cypress.Chainable {
+    return new BannersPo('[data-testid="setting-error-banner"]', this.self()).banner().contains(label);
+  }
+
   useDefaultButton(): Cypress.Chainable {
     return cy.getId('advanced_settings_use_default');
   }
diff --git a/cypress/e2e/po/pages/rancher-setup-configure.po.ts b/cypress/e2e/po/pages/rancher-setup-configure.po.ts
index 00278801209..df6628de24d 100644
--- a/cypress/e2e/po/pages/rancher-setup-configure.po.ts
+++ b/cypress/e2e/po/pages/rancher-setup-configure.po.ts
@@ -4,6 +4,7 @@ import CheckboxInputPo from '@/cypress/e2e/po/components/checkbox-input.po';
 import RadioGroupInputPo from '@/cypress/e2e/po/components/radio-group-input.po';
 import AsyncButtonPo from '@/cypress/e2e/po/components/async-button.po';
 import PasswordPo from '@/cypress/e2e/po/components/password.po';
+import BannersPo from '@/cypress/e2e/po/components/banners.po';
 
 export class RancherSetupConfigurePage extends PagePo {
   static url = '/auth/setup'
@@ -31,6 +32,14 @@ export class RancherSetupConfigurePage extends PagePo {
     return new LabeledInputPo(cy.getId('setup-server-url'));
   }
 
+  serverUrlLocalhostWarningBanner(): BannersPo {
+    return new BannersPo('[data-testid="setup-serverurl-localhost-warning"]');
+  }
+
+  errorBannerContent(label: string): Cypress.Chainable {
+    return new BannersPo('[data-testid="setup-error-banner"]', this.self()).banner().contains(label);
+  }
+
   termsAgreement(): CheckboxInputPo {
     return new CheckboxInputPo(cy.getId('setup-agreement'));
   }
diff --git a/cypress/e2e/tests/pages/global-settings/settings-p2.spec.ts b/cypress/e2e/tests/pages/global-settings/settings-p2.spec.ts
index 69e94357cb0..79795718f98 100644
--- a/cypress/e2e/tests/pages/global-settings/settings-p2.spec.ts
+++ b/cypress/e2e/tests/pages/global-settings/settings-p2.spec.ts
@@ -4,7 +4,9 @@ import BurgerMenuPo from '@/cypress/e2e/po/side-bars/burger-side-menu.po';
 import ClusterManagerCreateRke2CustomPagePo from '@/cypress/e2e/po/edit/provisioning.cattle.io.cluster/create/cluster-create-rke2-custom.po';
 import AccountPagePo from '@/cypress/e2e/po/pages/account-api-keys.po';
 import ClusterManagerListPagePo from '@/cypress/e2e/po/pages/cluster-manager/cluster-manager-list.po';
-import { settings } from '@/cypress/e2e/blueprints/global_settings/settings-data';
+import {
+  settings, serverUrlLocalhostCases, urlWithTrailingForwardSlash, httpUrl, nonUrlCases
+} from '@/cypress/e2e/blueprints/global_settings/settings-data';
 
 const settingsPage = new SettingsPagePo('local');
 const homePage = new HomePagePo();
@@ -82,6 +84,36 @@ describe('Settings', { testIsolation: 'off' }, () => {
     });
   });
 
+  it('can validate server-url', { tags: ['@globalSettings', '@adminUser'] }, () => {
+    SettingsPagePo.navTo();
+
+    settingsPage.editSettingsByLabel('server-url');
+
+    const settingsEdit = settingsPage.editSettings('local', 'server-url');
+
+    settingsEdit.waitForPage();
+    settingsEdit.title().contains('Setting: server-url').should('be.visible');
+
+    // Check showing localhost warning banner
+    serverUrlLocalhostCases.forEach((url) => {
+      settingsEdit.settingsInput().set(url);
+      settingsEdit.serverUrlLocalhostWarningBanner().banner().should('exist').and('be.visible');
+    });
+    // Check showing error banner when the urls has trailing forward slash
+    settingsEdit.settingsInput().set(urlWithTrailingForwardSlash);
+    settingsEdit.errorBannerContent('Server URL should not have a trailing forward slash.').should('exist').and('be.visible');
+    // Check showing error banner when the url is not HTTPS
+    settingsEdit.settingsInput().set(httpUrl);
+    settingsEdit.errorBannerContent('Server URL must be https.').should('exist').and('be.visible');
+    // // Check showing error banner when the input value is not a url
+    nonUrlCases.forEach((inputValue) => {
+      settingsEdit.settingsInput().set(inputValue);
+      settingsEdit.errorBannerContent('Server URL must be an URL.').should('exist').and('be.visible');
+      // A non-url is also a non-https
+      settingsEdit.errorBannerContent('Server URL must be https.').should('exist').and('be.visible');
+    });
+  });
+
   it('can update ui-index', { tags: ['@globalSettings', '@adminUser'] }, () => {
     // Update setting
     SettingsPagePo.navTo();
diff --git a/cypress/e2e/tests/setup/rancher-setup.spec.ts b/cypress/e2e/tests/setup/rancher-setup.spec.ts
index 80d5730feef..908543f3b65 100644
--- a/cypress/e2e/tests/setup/rancher-setup.spec.ts
+++ b/cypress/e2e/tests/setup/rancher-setup.spec.ts
@@ -1,7 +1,8 @@
 import { RancherSetupLoginPagePo } from '@/cypress/e2e/po/pages/rancher-setup-login.po';
-import { RancherSetupConfigurePage } from '~/cypress/e2e/po/pages/rancher-setup-configure.po';
-import HomePagePo from '~/cypress/e2e/po/pages/home.po';
-import { PARTIAL_SETTING_THRESHOLD } from '~/cypress/support/utils/settings-utils';
+import { RancherSetupConfigurePage } from '@/cypress/e2e/po/pages/rancher-setup-configure.po';
+import HomePagePo from '@/cypress/e2e/po/pages/home.po';
+import { PARTIAL_SETTING_THRESHOLD } from '@/cypress/support/utils/settings-utils';
+import { serverUrlLocalhostCases, urlWithTrailingForwardSlash, httpUrl, nonUrlCases } from '@/cypress/e2e/blueprints/global_settings/settings-data';
 
 // Cypress or the GrepTags avoid to run multiples times the same test for each tag used.
 // This is a temporary solution till initialization is not handled as a test
@@ -58,6 +59,30 @@ describe('Rancher setup', { tags: ['@adminUserSetup', '@standardUserSetup', '@se
 
     rancherSetupConfigurePage.waitForPage();
     rancherSetupConfigurePage.canSubmit().should('eq', false);
+    // Check server url validation
+    rancherSetupConfigurePage.serverUrl().self().should('be.visible');
+    rancherSetupConfigurePage.serverUrl().self().invoke('val').then((initialServerUrl) => {
+    // Check showing localhost warning banner
+      serverUrlLocalhostCases.forEach((url) => {
+        rancherSetupConfigurePage.serverUrl().set(url);
+        rancherSetupConfigurePage.serverUrlLocalhostWarningBanner().banner().should('exist').and('be.visible');
+      });
+      // Check showing error banner when the urls has trailing forward slash
+      rancherSetupConfigurePage.serverUrl().set(urlWithTrailingForwardSlash);
+      rancherSetupConfigurePage.errorBannerContent('Server URL should not have a trailing forward slash.').should('exist').and('be.visible');
+      // Check showing error banner when the url is not HTTPS
+      rancherSetupConfigurePage.serverUrl().set(httpUrl);
+      rancherSetupConfigurePage.errorBannerContent('Server URL must be https.').should('exist').and('be.visible');
+      // // Check showing error banner when the input value is not a url
+      nonUrlCases.forEach((inputValue) => {
+        rancherSetupConfigurePage.serverUrl().set(inputValue);
+        rancherSetupConfigurePage.errorBannerContent('Server URL must be an URL.').should('exist').and('be.visible');
+        // A non-url is also a non-https
+        rancherSetupConfigurePage.errorBannerContent('Server URL must be https.').should('exist').and('be.visible');
+      });
+      rancherSetupConfigurePage.serverUrl().set(initialServerUrl);
+    });
+
     rancherSetupConfigurePage.termsAgreement().set();
     rancherSetupConfigurePage.canSubmit().should('eq', true);
     rancherSetupConfigurePage.submit();
diff --git a/shell/edit/management.cattle.io.setting.vue b/shell/edit/management.cattle.io.setting.vue
index 734e303e89f..1d6d00321e6 100644
--- a/shell/edit/management.cattle.io.setting.vue
+++ b/shell/edit/management.cattle.io.setting.vue
@@ -160,6 +160,7 @@ export default {
       v-if="showLocalhostWarning"
       color="warning"
       :label="t('validation.setting.serverUrl.localhost')"
+      data-testid="setting-serverurl-localhost-warning"
     />
 
     <Banner
@@ -167,6 +168,7 @@ export default {
       :key="i"
       color="error"
       :label="err"
+      data-testid="setting-error-banner"
     />
 
     <div class="mt-20">
diff --git a/shell/pages/auth/setup.vue b/shell/pages/auth/setup.vue
index d4466df3b3b..e7f0fb40dd4 100644
--- a/shell/pages/auth/setup.vue
+++ b/shell/pages/auth/setup.vue
@@ -389,12 +389,14 @@ export default {
                   v-if="showLocalhostWarning"
                   color="warning"
                   :label="t('validation.setting.serverUrl.localhost')"
+                  data-testid="setup-serverurl-localhost-warning"
                 />
                 <Banner
                   v-for="(err, i) in fvGetPathErrors(['serverUrl'])"
                   :key="i"
                   color="error"
                   :label="err"
+                  data-testid="setup-error-banner"
                 />
                 <LabeledInput
                   v-model="serverUrl"