diff --git a/config.go b/config.go
index 81607437..118fbf5d 100644
--- a/config.go
+++ b/config.go
@@ -50,6 +50,7 @@ type Config struct {
 	topologyConfig     *topology.TopologyConfig
 	tracing            bool
 	tracingStdout      bool
+	devMode            bool
 }
 
 // configPopulateNetworkMagic uses the named network (if specified) to determine the network magic value (if not specified)
@@ -260,3 +261,10 @@ func WithMempoolCapacity(capacity int64) ConfigOptionFunc {
 		c.mempoolCapacity = capacity
 	}
 }
+
+// WithDevMode enables development mode which prevents outbound connections.
+func WithDevMode(devMode bool) ConfigOptionFunc {
+	return func(c *Config) {
+		c.devMode = devMode
+	}
+}
diff --git a/dingo.yaml.example b/dingo.yaml.example
index fb3256be..02228f1b 100644
--- a/dingo.yaml.example
+++ b/dingo.yaml.example
@@ -60,3 +60,7 @@ badgerCacheSize: 1073741824
 # Transactions exceeding this limit will be rejected.
 # Default: 1048576 (1 MB)
 mempoolCapacity: 1048576
+
+# Enable development mode which prevents outbound connections
+# Default: false
+devMode: false
diff --git a/internal/config/config.go b/internal/config/config.go
index 6b7f41a5..97b8333b 100644
--- a/internal/config/config.go
+++ b/internal/config/config.go
@@ -59,6 +59,7 @@ type Config struct {
 	RelayPort       uint   `                   yaml:"relayPort"       envconfig:"port"`
 	UtxorpcPort     uint   `split_words:"true" yaml:"utxorpcPort"`
 	IntersectTip    bool   `split_words:"true" yaml:"intersectTip"`
+	DevMode         bool   `split_words:"true" yaml:"devMode"`
 }
 
 var globalConfig = &Config{
@@ -78,6 +79,7 @@ var globalConfig = &Config{
 	Topology:        "",
 	TlsCertFilePath: "",
 	TlsKeyFilePath:  "",
+	DevMode:         false,
 }
 
 func LoadConfig(configFile string) (*Config, error) {
@@ -113,6 +115,7 @@ func LoadConfig(configFile string) (*Config, error) {
 	if err != nil {
 		return nil, fmt.Errorf("error processing environment: %+w", err)
 	}
+
 	_, err = LoadTopologyConfig()
 	if err != nil {
 		return nil, fmt.Errorf("error loading topology: %+w", err)
diff --git a/internal/config/config_test.go b/internal/config/config_test.go
index be0d8e21..a18ad525 100644
--- a/internal/config/config_test.go
+++ b/internal/config/config_test.go
@@ -2,6 +2,7 @@ package config
 
 import (
 	"os"
+	"path/filepath"
 	"reflect"
 	"testing"
 )
@@ -24,6 +25,7 @@ func resetGlobalConfig() {
 		Topology:        "",
 		TlsCertFilePath: "",
 		TlsKeyFilePath:  "",
+		DevMode:         false,
 	}
 }
 
@@ -48,7 +50,9 @@ tlsCertFilePath: "cert1.pem"
 tlsKeyFilePath: "key1.pem"
 `
 
-	tmpFile := "test-dingo.yaml"
+	tmpDir := t.TempDir()
+	tmpFile := filepath.Join(tmpDir, "test-dingo.yaml")
+
 	err := os.WriteFile(tmpFile, []byte(yamlContent), 0644)
 	if err != nil {
 		t.Fatalf("failed to write config file: %v", err)
@@ -72,6 +76,7 @@ tlsKeyFilePath: "key1.pem"
 		Topology:        "",
 		TlsCertFilePath: "cert1.pem",
 		TlsKeyFilePath:  "key1.pem",
+		DevMode:         false,
 	}
 
 	actual, err := LoadConfig(tmpFile)
@@ -114,6 +119,7 @@ func TestLoad_WithoutConfigFile_UsesDefaults(t *testing.T) {
 		Topology:        "",
 		TlsCertFilePath: "",
 		TlsKeyFilePath:  "",
+		DevMode:         false,
 	}
 
 	if !reflect.DeepEqual(cfg, expected) {
@@ -124,3 +130,30 @@ func TestLoad_WithoutConfigFile_UsesDefaults(t *testing.T) {
 		)
 	}
 }
+
+func TestLoad_WithDevModeConfig(t *testing.T) {
+	resetGlobalConfig()
+
+	// Test with dev mode in config file
+	yamlContent := `
+devMode: true
+network: "preview"
+`
+
+	tmpDir := t.TempDir()
+	tmpFile := filepath.Join(tmpDir, "test-dev-mode.yaml")
+
+	err := os.WriteFile(tmpFile, []byte(yamlContent), 0644)
+	if err != nil {
+		t.Fatalf("failed to write config file: %v", err)
+	}
+
+	cfg, err := LoadConfig(tmpFile)
+	if err != nil {
+		t.Fatalf("expected no error, got: %v", err)
+	}
+
+	if !cfg.DevMode {
+		t.Errorf("expected DevMode to be true, got: %v", cfg.DevMode)
+	}
+}
diff --git a/internal/node/node.go b/internal/node/node.go
index 08eb723d..033083db 100644
--- a/internal/node/node.go
+++ b/internal/node/node.go
@@ -113,6 +113,7 @@ func Run(cfg *config.Config, logger *slog.Logger) error {
 			dingo.WithUtxorpcPort(cfg.UtxorpcPort),
 			dingo.WithUtxorpcTlsCertFilePath(cfg.TlsCertFilePath),
 			dingo.WithUtxorpcTlsKeyFilePath(cfg.TlsKeyFilePath),
+			dingo.WithDevMode(cfg.DevMode),
 			// Enable metrics with default prometheus registry
 			dingo.WithPrometheusRegistry(prometheus.DefaultRegisterer),
 			// TODO: make this configurable (#387)
diff --git a/node.go b/node.go
index dd93170c..280bd9e2 100644
--- a/node.go
+++ b/node.go
@@ -168,9 +168,10 @@ func (n *Node) Run() error {
 	// Configure peer governor
 	n.peerGov = peergov.NewPeerGovernor(
 		peergov.PeerGovernorConfig{
-			Logger:      n.config.logger,
-			EventBus:    n.eventBus,
-			ConnManager: n.connManager,
+			Logger:          n.config.logger,
+			EventBus:        n.eventBus,
+			ConnManager:     n.connManager,
+			DisableOutbound: n.config.devMode,
 		},
 	)
 	n.eventBus.SubscribeFunc(
diff --git a/peergov/peergov.go b/peergov/peergov.go
index 06e9dac8..c7928555 100644
--- a/peergov/peergov.go
+++ b/peergov/peergov.go
@@ -42,9 +42,10 @@ type PeerGovernor struct {
 }
 
 type PeerGovernorConfig struct {
-	Logger      *slog.Logger
-	EventBus    *event.EventBus
-	ConnManager *connmanager.ConnectionManager
+	Logger          *slog.Logger
+	EventBus        *event.EventBus
+	ConnManager     *connmanager.ConnectionManager
+	DisableOutbound bool
 }
 
 func NewPeerGovernor(cfg PeerGovernorConfig) *PeerGovernor {
@@ -182,10 +183,20 @@ func (p *PeerGovernor) peerIndexByConnId(connId ouroboros.ConnectionId) int {
 }
 
 func (p *PeerGovernor) startOutboundConnections() {
+	// Skip outbound connections if disabled
+	if p.config.DisableOutbound {
+		p.config.Logger.Info(
+			"outbound connections disabled, skipping outbound connections",
+			"role", "client",
+		)
+		return
+	}
+
 	p.config.Logger.Debug(
 		"starting connections",
 		"role", "client",
 	)
+
 	for _, tmpPeer := range p.peers {
 		go p.createOutboundConnection(tmpPeer)
 	}