diff --git a/local-setup/scripts/check-environment.sh b/local-setup/scripts/check-environment.sh
index c015649f..c941d5d5 100755
--- a/local-setup/scripts/check-environment.sh
+++ b/local-setup/scripts/check-environment.sh
@@ -151,6 +151,85 @@ check_kcp_plugin() {
     return 0
 }
 
+check_hosts_entry() {
+    local hostname="$1"
+    local expected_ip="127.0.0.1"
+
+    # Detect OS and use appropriate resolution method
+    case "$(uname -s)" in
+        Darwin)
+            # macOS: Use dscacheutil
+            local result=$(dscacheutil -q host -a name "$hostname" 2>/dev/null | grep "ip_address:" | grep -v "ipv6" | awk '{print $2}' | head -1)
+            ;;
+        Linux)
+            # Linux: Check if getent is available (most distros)
+            if command -v getent &> /dev/null; then
+                local result=$(getent hosts "$hostname" 2>/dev/null | awk '{print $1}' | head -1)
+            else
+                # Fallback: Direct /etc/hosts parsing
+                local result=$(grep -E "^[^#]*\s+$hostname(\s|$)" /etc/hosts 2>/dev/null | awk '{print $1}' | head -1)
+            fi
+            ;;
+        *)
+            # Fallback for unknown systems
+            local result=$(grep -E "^[^#]*\s+$hostname(\s|$)" /etc/hosts 2>/dev/null | awk '{print $1}' | head -1)
+            ;;
+    esac
+
+    # Check if we got the expected IP
+    if [ "$result" = "$expected_ip" ]; then
+        return 0
+    else
+        return 1
+    fi
+}
+
+check_hosts_entries() {
+    local check_failed=0
+    local missing_hosts=()
+
+    # Required hostnames for local setup
+    local required_hosts=("portal.dev.local" "kcp.api.portal.dev.local")
+
+    # Check each required hostname
+    for hostname in "${required_hosts[@]}"; do
+        if ! check_hosts_entry "$hostname"; then
+            missing_hosts+=("$hostname")
+            check_failed=1
+        fi
+    done
+
+    if [ $check_failed -eq 1 ]; then
+        echo -e "${RED}❌ Error: Required DNS entries are not configured${COL_RES}"
+        echo -e "${COL}🌐 The following hostnames must resolve to 127.0.0.1:${COL_RES}"
+        for host in "${missing_hosts[@]}"; do
+            echo -e "${COL}   - $host${COL_RES}"
+        done
+        echo ""
+        echo -e "${COL}📝 Add the following line to your /etc/hosts file:${COL_RES}"
+        echo -e "${COL}   127.0.0.1 portal.dev.local kcp.api.portal.dev.local${COL_RES}"
+        echo ""
+
+        # WSL-specific guidance
+        if grep -qi microsoft /proc/version 2>/dev/null; then
+            echo -e "${COL}💡 WSL Note: You may also need to add this entry to the Windows hosts file:${COL_RES}"
+            echo -e "${COL}   C:\\Windows\\System32\\drivers\\etc\\hosts${COL_RES}"
+            echo -e "${COL}   (This requires Administrator privileges on Windows)${COL_RES}"
+            echo ""
+        fi
+
+        echo -e "${COL}⚠️  Without these entries:${COL_RES}"
+        echo -e "${COL}   - The setup script will fail when accessing KCP API${COL_RES}"
+        echo -e "${COL}   - You won't be able to access the portal at https://portal.dev.local:8443${COL_RES}"
+        echo ""
+
+        return 1
+    fi
+
+    echo -e "${COL}[$(date '+%H:%M:%S')] ✅ Required DNS entries are configured${COL_RES}"
+    return 0
+}
+
 # Run all environment checks
 run_environment_checks() {
     echo -e "${COL}🔍 Checking environment dependencies...${COL_RES}"
@@ -181,6 +260,11 @@ run_environment_checks() {
         echo -e "${COL}[$(date '+%H:%M:%S')] ✅ Architecture: $ARCH${COL_RES}"
     fi
 
+    # Check hosts entries (always run - KCP is always deployed)
+    if ! check_hosts_entries; then
+        checks_failed=$((checks_failed + 1))
+    fi
+
     # Check KCP plugin if example-data mode is enabled
     if [ "$EXAMPLE_DATA" = true ]; then
         if ! check_kcp_plugin; then
@@ -206,4 +290,6 @@ export -f check_container_runtime_dependency
 export -f setup_mkcert_command
 export -f check_architecture
 export -f check_kcp_plugin
+export -f check_hosts_entry
+export -f check_hosts_entries
 export -f run_environment_checks
diff --git a/local-setup/scripts/start.sh b/local-setup/scripts/start.sh
index 280f68b7..8b05409e 100755
--- a/local-setup/scripts/start.sh
+++ b/local-setup/scripts/start.sh
@@ -196,12 +196,10 @@ if [ "$EXAMPLE_DATA" = true ]; then
 
 fi
 
-echo -e "${COL}Please create an entry in your /etc/hosts with the following line: \"127.0.0.1 default.portal.dev.local portal.dev.local kcp.api.portal.dev.local\" ${COL_RES}"
-show_wsl_hosts_guidance
-
-echo -e "${YELLOW}⚠️  WARNING: You need to add a hosts entry for every organization that is onboarded!${COL_RES}"
+echo -e "${YELLOW}⚠️  REMINDER: You need to add a hosts entry for every organization that is onboarded!${COL_RES}"
 echo -e "${YELLOW}   Each organization will require its own subdomain entry in /etc/hosts${COL_RES}"
 echo -e "${YELLOW}   Example: 127.0.0.1 <organization-name>.portal.dev.local${COL_RES}"
+show_wsl_hosts_guidance
 
 echo -e "${COL}Once kcp is up and running, run '\033[0;32mexport KUBECONFIG=$(pwd)/.secret/kcp/admin.kubeconfig\033[0m' to gain access to the root workspace.${COL_RES}"