diff --git a/README.md b/README.md
index 9e1e17212..917b59da5 100644
--- a/README.md
+++ b/README.md
@@ -38,10 +38,11 @@ from descope import DescopeClient
 # Initialized after setting the DESCOPE_PROJECT_ID and DESCOPE_AUTH_MANAGEMENT_KEY env vars
 descope_client = DescopeClient()
 
-# ** Or directly **
+# ** Or directly (w/ optional base URL) **
 descope_client = DescopeClient(
-    project_id="<Project ID>"
-    auth_management_key="<Auth Managemet Key>
+    project_id="<Project ID>",
+    auth_management_key="<Descope Project Management Key>,
+    base_url="<Descope Base URL>"
 )
 ```
 
@@ -1245,8 +1246,9 @@ descope_client = DescopeClient(
 ```
 
 When the `fga_cache_url` is configured, the following FGA methods will automatically use the cache proxy instead of the default Descope API:
+
 - `save_schema`
-- `create_relations`  
+- `create_relations`
 - `delete_relations`
 - `check`
 
diff --git a/descope/descope_client.py b/descope/descope_client.py
index 0fc2213ed..0877635b0 100644
--- a/descope/descope_client.py
+++ b/descope/descope_client.py
@@ -34,6 +34,8 @@ def __init__(
         jwt_validation_leeway: int = 5,
         auth_management_key: Optional[str] = None,
         fga_cache_url: Optional[str] = None,
+        *,
+        base_url: Optional[str] = None,
     ):
         # validate project id
         project_id = project_id or os.getenv("DESCOPE_PROJECT_ID", "")
@@ -50,6 +52,7 @@ def __init__(
         # Auth Initialization
         auth_http_client = HTTPClient(
             project_id=project_id,
+            base_url=base_url,
             timeout_seconds=timeout_seconds,
             secure=not skip_verify,
             management_key=auth_management_key
diff --git a/tests/test_descope_client.py b/tests/test_descope_client.py
index 5c7b669ee..d63ab83d4 100644
--- a/tests/test_descope_client.py
+++ b/tests/test_descope_client.py
@@ -1052,6 +1052,34 @@ def test_auth_management_key_with_refresh_token(self):
                 timeout=DEFAULT_TIMEOUT_SECONDS,
             )
 
+    def test_base_url_setting(self):
+        """Test that base_url parameter is correctly set in DescopeClient"""
+        custom_base_url = "https://api.use1.descope.com"
+        client = DescopeClient(
+            project_id=self.dummy_project_id,
+            base_url=custom_base_url,
+            public_key=self.public_key_dict,
+        )
+
+        # Verify that the base_url is set in the auth HTTP client
+        self.assertEqual(client._auth.http_client.base_url, custom_base_url)
+
+        # Verify that the base_url is set in the mgmt HTTP client
+        self.assertEqual(client._mgmt._http.base_url, custom_base_url)
+
+    def test_base_url_none(self):
+        """Test that base_url=None uses default base URL from environment or project ID"""
+        # When base_url is None, it should use DESCOPE_BASE_URI env var or computed default
+        client = DescopeClient(
+            project_id=self.dummy_project_id,
+            base_url=None,
+            public_key=self.public_key_dict,
+        )
+
+        expected_base_url = common.DEFAULT_BASE_URL 
+        self.assertEqual(client._auth.http_client.base_url, expected_base_url)
+        self.assertEqual(client._mgmt._http.base_url, expected_base_url)
+
 
 if __name__ == "__main__":
     unittest.main()