diff --git a/apps/dokploy/server/wss/terminal.ts b/apps/dokploy/server/wss/terminal.ts
index 8c661c8a..87b096c0 100644
--- a/apps/dokploy/server/wss/terminal.ts
+++ b/apps/dokploy/server/wss/terminal.ts
@@ -8,6 +8,17 @@ import { publicIpv4, publicIpv6 } from "public-ip";
 import { Client, type ConnectConfig } from "ssh2";
 import { WebSocketServer } from "ws";
 import { setupLocalServerSSHKey } from "./utils";
+import { getDockerHost } from "../utils/docker";
+
+const COMMAND_TO_ALLOW_LOCAL_ACCESS = `
+# ----------------------------------------
+	mkdir -p $HOME/.ssh && \\
+	chmod 700 $HOME/.ssh && \\
+	touch $HOME/.ssh/authorized_keys && \\
+	chmod 600 $HOME/.ssh/authorized_keys && \\
+	cat /etc/dokploy/ssh/auto_generated-dokploy-local.pub >> $HOME/.ssh/authorized_keys && \\
+	echo "✓ Dokploy SSH key added successfully. Reopen the terminal in Dokploy to reconnect."
+# ----------------------------------------`;
 
 export const getPublicIpWithFallback = async () => {
 	// @ts-ignore
@@ -73,20 +84,31 @@ export const setupTerminalWebSocketServer = (
 				return;
 			}
 
-			ws.send("Setting up private SSH key...\n");
-			const privateKey = await setupLocalServerSSHKey();
+			try {
+				ws.send("Setting up private SSH key...\n");
+				const privateKey = await setupLocalServerSSHKey();
 
-			if (!privateKey) {
+				if (!privateKey) {
+					ws.close();
+					return;
+				}
+
+				const dockerHost = await getDockerHost();
+
+				ws.send(`Found Docker host: ${dockerHost}\n`);
+
+				connectionDetails = {
+					host: dockerHost,
+					port,
+					username,
+					privateKey,
+				};
+			} catch (error) {
+				console.error(`Error setting up private SSH key: ${error}`);
+				ws.send(`Error setting up private SSH key: ${error}`);
 				ws.close();
 				return;
 			}
-
-			connectionDetails = {
-				host: "localhost",
-				port,
-				username,
-				privateKey,
-			};
 		} else {
 			const server = await findServerById(serverId);
 
@@ -161,9 +183,15 @@ export const setupTerminalWebSocketServer = (
 			})
 			.on("error", (err) => {
 				if (err.level === "client-authentication") {
-					ws.send(
-						`Authentication failed: Unauthorized ${isLocalServer ? "" : "private SSH key or "}username.\n❌  Error: ${err.message} ${err.level}`,
-					);
+					if (isLocalServer) {
+						ws.send(
+							`Authentication failed: Please run the command below on your server to allow access. Make sure to run it as the same user as the one configured in connection settings:${COMMAND_TO_ALLOW_LOCAL_ACCESS}\nAfter running the command, reopen this window to reconnect. This procedure is required only once.`,
+						);
+					} else {
+						ws.send(
+							`Authentication failed: Unauthorized private SSH key or username.\n❌  Error: ${err.message} ${err.level}`,
+						);
+					}
 				} else {
 					ws.send(`SSH connection error: ${err.message} ❌ `);
 				}
diff --git a/apps/dokploy/server/wss/utils.ts b/apps/dokploy/server/wss/utils.ts
index 9c78869d..b593595b 100644
--- a/apps/dokploy/server/wss/utils.ts
+++ b/apps/dokploy/server/wss/utils.ts
@@ -1,18 +1,8 @@
-import { execAsync } from "@dokploy/server";
+import { execAsync, paths } from "@dokploy/server";
 import os from "node:os";
 import path from "node:path";
 import fs from "node:fs";
 
-const HOME_PATH = process.env.HOME || process.env.USERPROFILE || "/";
-
-const LOCAL_SSH_KEY_PATH = path.join(
-	HOME_PATH,
-	".ssh",
-	"auto_generated-dokploy-local",
-);
-
-const AUTHORIZED_KEYS_PATH = path.join(HOME_PATH, ".ssh", "authorized_keys");
-
 export const getShell = () => {
 	switch (os.platform()) {
 		case "win32":
@@ -24,39 +14,25 @@ export const getShell = () => {
 	}
 };
 
-/** Returns private SSH key for dokploy local server terminal. Uses already created SSH key or generates a new SSH key, also automatically appends the public key to `authorized_keys`, creating the file if needed. */
+/** Returns private SSH key for dokploy local server terminal. Uses already created SSH key or generates a new SSH key.
+ * 
+ * In case of permission failures when running locally, run the command below:
+
+```
+sudo chown -R $USER:$USER /etc/dokploy/ssh
+```
+
+*/
 export const setupLocalServerSSHKey = async () => {
-	try {
-		if (!fs.existsSync(LOCAL_SSH_KEY_PATH)) {
-			// Generate new SSH key if it hasn't been created yet
-			await execAsync(
-				`ssh-keygen -t rsa -b 4096 -f ${LOCAL_SSH_KEY_PATH} -N ""`,
-			);
-		}
+	const { SSH_PATH } = paths(true);
+	const sshKeyPath = path.join(SSH_PATH, "auto_generated-dokploy-local");
 
-		const privateKey = fs.readFileSync(LOCAL_SSH_KEY_PATH, "utf8");
-		const publicKey = fs.readFileSync(`${LOCAL_SSH_KEY_PATH}.pub`, "utf8");
-		const authKeyContent = `${publicKey}\n`;
-
-		if (!fs.existsSync(AUTHORIZED_KEYS_PATH)) {
-			// Create authorized_keys if it doesn't exist yet
-			fs.writeFileSync(AUTHORIZED_KEYS_PATH, authKeyContent, { mode: 0o600 });
-			return privateKey;
-		}
-
-		const existingAuthKeys = fs.readFileSync(AUTHORIZED_KEYS_PATH, "utf8");
-		if (existingAuthKeys.includes(publicKey)) {
-			return privateKey;
-		}
-
-		// Append the public key to authorized_keys
-		fs.appendFileSync(AUTHORIZED_KEYS_PATH, authKeyContent, {
-			mode: 0o600,
-		});
-
-		return privateKey;
-	} catch (error) {
-		console.error("Error getting private SSH key for local terminal:", error);
-		return "";
+	if (!fs.existsSync(sshKeyPath)) {
+		// Generate new SSH key if it hasn't been created yet
+		await execAsync(`ssh-keygen -t rsa -b 4096 -f ${sshKeyPath} -N ""`);
 	}
+
+	const privateKey = fs.readFileSync(sshKeyPath, "utf8");
+
+	return privateKey;
 };