diff --git a/devenv/frontend-service/local-cloud-shim/README.md b/devenv/frontend-service/local-cloud-shim/README.md
new file mode 100644
index 00000000000..e1d9fe0b697
--- /dev/null
+++ b/devenv/frontend-service/local-cloud-shim/README.md
@@ -0,0 +1,39 @@
+# Local Cloud Shim
+
+This is a local development shim, that forwards MT-Front-end requests to MT-tilt back-end setup.
+
+This is still very much work in progress, so things will change a lot.
+
+```
+                                                               ┌──────────────────┐
+                                                               │                  │
+                                                     ┌─────────▶   MT Front-end   │
+                                                     │         │                  │
+┌──────────────────┐        ┌──────────────────┐     │         └──────────────────┘
+│                  │        │                  │     │
+│   User request   │────────▶      Nginx       ├─────┼─┐       ┌──────────────────────┐
+│                  │        │                  │     │ │       │                      │
+└──────────────────┘        └──────────────────┘     │ └───────▶  Downstream MT-tilt  │
+                                                     │         │                      │
+                                                     │         └──────────────────────┘
+                                                     │
+                                                     │         ┌──────────────────────┐
+                                                     │         │                      │
+                                                     └─────────▶   Mocked responses   │
+                                                               │                      │
+                                                               └──────────────────────┘
+```
+
+## Proxying
+
+Currently, the proxying is done by an Nginx handling the requests in the following way:
+
+1. Most requests are forwarded to the MT-Front-end
+2. All the requests that match this pattern `apis|logout|swagger|openapi/v3|login` are forwarded to the MT-tilt back-end
+3. Some requests that are breaking the front-end are mocked. For now `/bootdata` and `/api/user/orgs` are mocked. The mock data are stored under the `./mock-data` folder.
+
+## Dev setup
+
+The Tiltfile and the docker compose file, are simplified to avoid spinning up all services, as most are not needed for the shim setup to work.
+
+The rest of the downstream services are handled by `mt-tilt` setup in Enterprise repo.
diff --git a/devenv/frontend-service/local-cloud-shim/Tiltfile b/devenv/frontend-service/local-cloud-shim/Tiltfile
new file mode 100644
index 00000000000..1a7f2c2db4b
--- /dev/null
+++ b/devenv/frontend-service/local-cloud-shim/Tiltfile
@@ -0,0 +1,49 @@
+# --- Frontend Build (One-time)
+local_resource(
+  'frontend-assets',
+  cmd='yarn install && yarn dev',
+  dir='../../..',
+  deps=[
+    '../../../public/app',
+    '../../../packages',
+    '../../../scripts/webpack',
+    '../../../tsconfig.json',
+    '../../../package.json',
+    '../../../yarn.lock',
+  ],
+  labels=["local"]
+)
+
+# --- Backend Build
+local_resource(
+  'backend-build',
+  cmd='mkdir -p build && bash ./build-grafana.sh',
+  dir='..',
+  deps=[
+    '../../../pkg',
+    '../../../apps',
+    '../../../kinds',
+    '../../../kindsv2',
+    '../../../local',
+    '../../../scripts',
+    '../../../conf',
+    '../../../go.sum',
+    '../../../go.mod',
+  ],
+  allow_parallel=True,
+  labels=["local"]
+)
+
+# --- Docker Compose
+docker_compose('./docker-compose.yaml')
+
+dc_resource("proxy",
+  resource_deps=["frontend-service"],
+  labels=["services"]
+)
+
+dc_resource("frontend-service",
+  resource_deps=["frontend-assets", "backend-build"],
+  labels=["services"],
+)
+
diff --git a/devenv/frontend-service/local-cloud-shim/docker-compose.yaml b/devenv/frontend-service/local-cloud-shim/docker-compose.yaml
new file mode 100644
index 00000000000..df0cfa94413
--- /dev/null
+++ b/devenv/frontend-service/local-cloud-shim/docker-compose.yaml
@@ -0,0 +1,47 @@
+name: grafana-fs-dev-shim
+
+services:
+  proxy:
+    image: grafana-proxy
+    build:
+      context: ../
+      dockerfile: proxy.dockerfile
+    volumes:
+      - ../../../public/build:/cdn/public/build
+      - ../../../public/app/plugins:/cdn/public/app/plugins
+      - ../../../public/fonts:/cdn/public/fonts
+      - ./nginx.conf:/etc/nginx/conf.d/default.conf
+      - ./mock-data:/etc/nginx/mock-data:ro
+    ports:
+      - "12345:80" # Gateway
+      - "3010:81" # CDN
+    depends_on:
+      - frontend-service
+    labels:
+      - "alloy.logs=true"
+
+  frontend-service:
+    image: grafana-fs-dev
+    build:
+      context: ../../..
+      dockerfile: devenv/frontend-service/grafana-fs-dev.dockerfile
+    entrypoint: ["bin/grafana", "server", "target"]
+    volumes:
+      - ../configs/frontend-service.local.ini:/grafana/conf/custom.ini
+    # Port 3000 is only accessible via the proxy, not directly exposed
+    labels:
+      - "alloy.logs=true"
+    environment:
+      OTEL_BSP_SCHEDULE_DELAY: 500
+      GF_DATABASE_SKIP_MIGRATIONS: true
+      GF_DATABASE_ENSURE_DEFAULT_ORG_AND_USER: false
+      GF_DEFAULT_APP_MODE: development
+      GF_DEFAULT_TARGET: frontend-server
+      GF_SECURITY_CONTENT_SECURITY_POLICY: false
+      GF_FEATURE_TOGGLES_ENABLE: enableNativeHTTPHistogram
+      GF_SERVER_CDN_URL: http://localhost:3010
+      GF_SERVER_ROUTER_LOGGING: true
+      GF_LOG_LEVEL: info
+      OTEL_SERVICE_NAME: frontend-service
+      GF_TRACING_OPENTELEMETRY_OTLP_ADDRESS: "alloy:4317"
+      GF_TRACING_OPENTELEMETRY_OTLP_PROPAGATION: jaeger,w3c
diff --git a/devenv/frontend-service/local-cloud-shim/mock-data/bootdata.json b/devenv/frontend-service/local-cloud-shim/mock-data/bootdata.json
new file mode 100644
index 00000000000..9fe61ac82e8
--- /dev/null
+++ b/devenv/frontend-service/local-cloud-shim/mock-data/bootdata.json
@@ -0,0 +1,138 @@
+{
+  "user": {
+    "isSignedIn": true,
+    "id": 0,
+    "uid": "",
+    "login": "",
+    "email": "",
+    "name": "",
+    "theme": "dark",
+    "lightTheme": false,
+    "orgCount": 1,
+    "orgId": 1,
+    "orgName": "Main Org.",
+    "orgRole": "Viewer",
+    "isGrafanaAdmin": false,
+    "gravatarUrl": "",
+    "timezone": "browser",
+    "weekStart": "browser",
+    "locale": "en-US",
+    "regionalFormat": "",
+    "language": "en-US",
+    "helpFlags1": 0,
+    "hasEditPermissionInFolders": false,
+    "authenticatedBy": "",
+    "permissions": {},
+    "analytics": {
+      "identifier": ""
+    }
+  },
+  "settings": {
+    "defaultDatasource": "-- Grafana --",
+    "datasources": {},
+    "minRefreshInterval": "5s",
+    "panels": {},
+    "apps": {},
+    "appUrl": "http://localhost:12345/",
+    "appSubUrl": "",
+    "allowOrgCreate": false,
+    "authProxyEnabled": false,
+    "ldapEnabled": false,
+    "jwtHeaderName": "",
+    "jwtUrlLogin": false,
+    "liveEnabled": true,
+    "autoAssignOrg": true,
+    "verifyEmailEnabled": false,
+    "sigV4AuthEnabled": false,
+    "azureAuthEnabled": false,
+    "rbacEnabled": true,
+    "exploreEnabled": true,
+    "helpEnabled": true,
+    "profileEnabled": true,
+    "newsFeedEnabled": true,
+    "queryHistoryEnabled": true,
+    "googleAnalyticsId": "",
+    "googleAnalytics4Id": "",
+    "rudderstackWriteKey": "",
+    "rudderstackDataPlaneUrl": "",
+    "feedbackLinksEnabled": true,
+    "disableLoginForm": false,
+    "disableUserSignUp": true,
+    "loginHint": "",
+    "passwordHint": "",
+    "viewersCanEdit": false,
+    "disableSanitizeHtml": false,
+    "auth": {
+      "disableLogin": false
+    },
+    "buildInfo": {
+      "hideVersion": false,
+      "version": "12.4.0-dev",
+      "commit": "dev",
+      "commitShort": "dev",
+      "buildstamp": 0,
+      "edition": "Open Source",
+      "latestVersion": "",
+      "hasUpdate": false,
+      "env": "development"
+    },
+    "licenseInfo": {
+      "expiry": 0,
+      "stateInfo": "",
+      "licenseUrl": "",
+      "edition": "Open Source"
+    },
+    "featureToggles": {},
+    "anonymousEnabled": false,
+    "rendererAvailable": false,
+    "http2Enabled": false,
+    "pluginCatalogURL": "https://grafana.com/grafana/plugins/",
+    "pluginAdminEnabled": true,
+    "pluginAdminExternalManageEnabled": false,
+    "pluginCatalogHiddenPlugins": [],
+    "expressionsEnabled": true,
+    "awsAllowedAuthProviders": ["keys"],
+    "awsAssumeRoleEnabled": false,
+    "azure": {
+      "cloud": "AzureCloud"
+    },
+    "caching": {
+      "enabled": false
+    },
+    "unifiedAlertingEnabled": true,
+    "unifiedAlerting": {
+      "minInterval": "10s"
+    },
+    "oauth": {},
+    "samlEnabled": false,
+    "samlName": "",
+    "dateFormats": {
+      "fullDate": "YYYY-MM-DD HH:mm:ss",
+      "useBrowserLocale": false,
+      "interval": {
+        "second": "HH:mm:ss",
+        "minute": "HH:mm",
+        "hour": "MM/DD HH:mm",
+        "day": "MM/DD",
+        "month": "YYYY-MM",
+        "year": "YYYY"
+      },
+      "defaultTimezone": "browser",
+      "defaultWeekStart": "browser"
+    },
+    "licensing": {
+      "usageBilling": {
+        "enabled": false
+      }
+    }
+  },
+  "navTree": [
+    {
+      "id": "home",
+      "text": "Home",
+      "icon": "home-alt",
+      "url": "/",
+      "sortWeight": -4000
+    }
+  ]
+}
diff --git a/devenv/frontend-service/local-cloud-shim/mock-data/user-orgs.json b/devenv/frontend-service/local-cloud-shim/mock-data/user-orgs.json
new file mode 100644
index 00000000000..f1b23a54c25
--- /dev/null
+++ b/devenv/frontend-service/local-cloud-shim/mock-data/user-orgs.json
@@ -0,0 +1,7 @@
+[
+  {
+    "orgId": 1,
+    "name": "Main Org.",
+    "role": "Admin"
+  }
+]
diff --git a/devenv/frontend-service/local-cloud-shim/nginx.conf b/devenv/frontend-service/local-cloud-shim/nginx.conf
new file mode 100644
index 00000000000..d66d54ef4a7
--- /dev/null
+++ b/devenv/frontend-service/local-cloud-shim/nginx.conf
@@ -0,0 +1,162 @@
+otel_exporter {
+  endpoint alloy:4317;
+}
+
+otel_service_name "proxy";
+
+###
+# Instance
+###
+upstream backend {
+  server host.docker.internal:3001;
+}
+
+upstream frontend {
+  server frontend-service:3000;
+}
+
+map "$request_method:$cookie_fs_unavailable" $reject_login {
+  default  0;
+  "POST:1" 1;
+}
+
+map $http_upgrade $connection_upgrade {
+    default upgrade;
+    ''      close;
+}
+
+server {
+  listen 80;
+  server_name _;
+
+  otel_trace         on;
+  otel_trace_context propagate;
+  otel_span_name "$request_method Request";
+
+  location ~ ^/-/down/?$ {
+    add_header Set-Cookie "fs_unavailable=true; Max-Age=60; Path=/; HttpOnly" always;
+    return 302 $scheme://$http_host/;
+  }
+
+  location ~ ^/-/down/(?<age>\d+)/?$ {
+    add_header Set-Cookie "fs_unavailable=true; Max-Age=$age; Path=/; HttpOnly" always;
+    return 302 $scheme://$http_host/;
+  }
+
+  location ~ ^/-/up/?$ {
+    return 302 $scheme://$http_host/-/down/0;
+  }
+
+  # Mock bootdata endpoints (both /bootdata and /api/frontend/settings)
+  location = /bootdata {
+    default_type application/json;
+    add_header Access-Control-Allow-Origin "*" always;
+    alias /etc/nginx/mock-data/bootdata.json;
+  }
+
+  # Mock user organizations endpoint
+  location = /api/user/orgs {
+    default_type application/json;
+    add_header Access-Control-Allow-Origin "*" always;
+    alias /etc/nginx/mock-data/user-orgs.json;
+  }
+
+
+  # Special‐case POST /login to backend, GET to frontend
+  location = /login {
+    proxy_set_header Host              $host;
+    proxy_set_header X-Real-IP         $remote_addr;
+    proxy_set_header X-Forwarded-For   $proxy_add_x_forwarded_for;
+    proxy_set_header X-Forwarded-Proto $scheme;
+
+    if ($reject_login) {
+      add_header    Content-Type application/json always;
+      return 503 '{"code":"Loading", "message": "Soon!"}';
+    }
+
+    if ($request_method = POST) {
+      proxy_pass http://backend;
+      break;
+    }
+
+    if ($request_method = GET) {
+      proxy_pass http://frontend;
+      break;
+    }
+
+    return 405;
+  }
+
+  # API calls go to the backend
+  # location ~ ^/(api|apis|avatar|bootdata|render|logout|public/plugins|public/openapi3|public/api-merged|goto|swagger|openapi/v3) {
+  # For test only allow logout, apis, and login
+  location ~ ^/(apis|logout|swagger|openapi/v3|login) {
+    # Add debug headers to the response
+    add_header Nginx-Trace-Id $otel_trace_id always;
+    add_header Nginx-Route "backend" always;
+
+    if ($cookie_fs_unavailable) {
+      add_header Content-Type application/json always;
+      return 503 '{"code":"Loading", "message": "Soon!"}';
+    }
+
+    proxy_pass http://backend;
+    proxy_set_header Host              $host;
+    proxy_set_header X-Real-IP         $remote_addr;
+    proxy_set_header X-Forwarded-For   $proxy_add_x_forwarded_for;
+    proxy_set_header X-Forwarded-Proto $scheme;
+
+    proxy_http_version 1.1;
+    proxy_set_header Upgrade $http_upgrade;
+    proxy_set_header Connection "upgrade";
+  }
+
+  # Everything else to the frontend
+  location / {
+    # Add debug headers to the response
+    add_header Nginx-Trace-Id $otel_trace_id always;
+    add_header Nginx-Route "frontend" always;
+
+    proxy_pass http://frontend;
+    proxy_set_header Host              $host;
+    proxy_set_header X-Real-IP         $remote_addr;
+    proxy_set_header X-Forwarded-For   $proxy_add_x_forwarded_for;
+    proxy_set_header X-Forwarded-Proto $scheme;
+  }
+}
+
+
+###
+# CDN
+###
+map $request $loggable {
+  default 1;
+  "~^\x16\x03" 0;
+}
+
+server {
+  listen 81;
+  server_name localhost;
+  root /cdn;
+
+  # Enable directory listing
+  autoindex on;
+  autoindex_exact_size off;
+  autoindex_format html;
+  autoindex_localtime on;
+
+  add_header Cache-Control "no-cache, no-store, must-revalidate" always;
+  add_header Pragma "no-cache" always;
+  add_header Expires "0" always;
+  add_header Access-Control-Allow-Origin "*" always;
+  add_header Access-Control-Allow-Headers "X-Grafana-Device-Id" always;
+
+  # Suppress access log for malformed HTTPS requests (those starting with a TLS handshake)
+  access_log  /var/log/nginx/access.log  main if=$loggable;
+
+  # This serves paths like /grafana/12.1.0-88106/public/build/foo
+  location ~ ^/grafana[^/]*/[^/]+/(.*)$ {
+    alias /cdn/$1;
+  }
+}
+