diff --git a/proxy/src/bin/pg_sni_router.rs b/proxy/src/bin/pg_sni_router.rs
index 58737efe4664..7a693002a8e2 100644
--- a/proxy/src/bin/pg_sni_router.rs
+++ b/proxy/src/bin/pg_sni_router.rs
@@ -9,15 +9,13 @@ use futures::future::Either;
 use itertools::Itertools;
 use proxy::config::TlsServerEndPoint;
 use proxy::context::RequestMonitoring;
-use proxy::proxy::run_until_cancelled;
-use proxy::{BranchId, EndpointId, ProjectId};
+use proxy::proxy::{copy_bidirectional_client_compute, run_until_cancelled};
 use rustls::pki_types::PrivateKeyDer;
 use tokio::net::TcpListener;
 
 use anyhow::{anyhow, bail, ensure, Context};
 use clap::Arg;
 use futures::TryFutureExt;
-use proxy::console::messages::MetricsAuxInfo;
 use proxy::stream::{PqStream, Stream};
 
 use tokio::io::{AsyncRead, AsyncWrite};
@@ -204,6 +202,7 @@ async fn task_main(
 const ERR_INSECURE_CONNECTION: &str = "connection is insecure (try using `sslmode=require`)";
 
 async fn ssl_handshake<S: AsyncRead + AsyncWrite + Unpin>(
+    ctx: &mut RequestMonitoring,
     raw_stream: S,
     tls_config: Arc<rustls::ServerConfig>,
     tls_server_end_point: TlsServerEndPoint,
@@ -233,7 +232,10 @@ async fn ssl_handshake<S: AsyncRead + AsyncWrite + Unpin>(
             }
 
             Ok(Stream::Tls {
-                tls: Box::new(raw.upgrade(tls_config).await?),
+                tls: Box::new(
+                    raw.upgrade(tls_config, !ctx.has_private_peer_addr())
+                        .await?,
+                ),
                 tls_server_end_point,
             })
         }
@@ -256,7 +258,7 @@ async fn handle_client(
     tls_server_end_point: TlsServerEndPoint,
     stream: impl AsyncRead + AsyncWrite + Unpin,
 ) -> anyhow::Result<()> {
-    let tls_stream = ssl_handshake(stream, tls_config, tls_server_end_point).await?;
+    let mut tls_stream = ssl_handshake(&mut ctx, stream, tls_config, tls_server_end_point).await?;
 
     // Cut off first part of the SNI domain
     // We receive required destination details in the format of
@@ -273,18 +275,15 @@ async fn handle_client(
 
     info!("destination: {}", destination);
 
-    let client = tokio::net::TcpStream::connect(destination).await?;
-
-    let metrics_aux: MetricsAuxInfo = MetricsAuxInfo {
-        endpoint_id: (&EndpointId::from("")).into(),
-        project_id: (&ProjectId::from("")).into(),
-        branch_id: (&BranchId::from("")).into(),
-        cold_start_info: proxy::console::messages::ColdStartInfo::Unknown,
-    };
+    let mut client = tokio::net::TcpStream::connect(destination).await?;
 
     // doesn't yet matter as pg-sni-router doesn't report analytics logs
     ctx.set_success();
     ctx.log();
 
-    proxy::proxy::passthrough::proxy_pass(tls_stream, client, metrics_aux).await
+    // Starting from here we only proxy the client's traffic.
+    info!("performing the proxy pass...");
+    let _ = copy_bidirectional_client_compute(&mut tls_stream, &mut client).await?;
+
+    Ok(())
 }
diff --git a/proxy/src/context.rs b/proxy/src/context.rs
index dc475d57ed6c..d7b5be5534d0 100644
--- a/proxy/src/context.rs
+++ b/proxy/src/context.rs
@@ -164,8 +164,18 @@ impl RequestMonitoring {
         self.auth_method = Some(auth_method);
     }
 
+    pub fn has_private_peer_addr(&self) -> bool {
+        match self.peer_addr {
+            IpAddr::V4(ip) => ip.is_private(),
+            _ => false,
+        }
+    }
+
     pub fn set_error_kind(&mut self, kind: ErrorKind) {
-        Metrics::get().proxy.errors_total.inc(kind);
+        // Do not record errors from the private address to metrics.
+        if !self.has_private_peer_addr() {
+            Metrics::get().proxy.errors_total.inc(kind);
+        }
         if let Some(ep) = &self.endpoint_id {
             let metric = &Metrics::get().proxy.endpoints_affected_by_errors;
             let label = metric.with_labels(kind);
diff --git a/proxy/src/proxy.rs b/proxy/src/proxy.rs
index 42fb10b32655..f80ced91c82b 100644
--- a/proxy/src/proxy.rs
+++ b/proxy/src/proxy.rs
@@ -7,6 +7,7 @@ pub mod handshake;
 pub mod passthrough;
 pub mod retry;
 pub mod wake_compute;
+pub use copy_bidirectional::copy_bidirectional_client_compute;
 
 use crate::{
     auth,
@@ -256,8 +257,9 @@ pub async fn handle_client<S: AsyncRead + AsyncWrite + Unpin>(
 
     let tls = config.tls_config.as_ref();
 
+    let record_handshake_error = !ctx.has_private_peer_addr();
     let pause = ctx.latency_timer.pause(crate::metrics::Waiting::Client);
-    let do_handshake = handshake(stream, mode.handshake_tls(tls));
+    let do_handshake = handshake(stream, mode.handshake_tls(tls), record_handshake_error);
     let (mut stream, params) =
         match tokio::time::timeout(config.handshake_timeout, do_handshake).await?? {
             HandshakeData::Startup(stream, params) => (stream, params),
diff --git a/proxy/src/proxy/copy_bidirectional.rs b/proxy/src/proxy/copy_bidirectional.rs
index 684be74f9a81..4b09ebd8dc2c 100644
--- a/proxy/src/proxy/copy_bidirectional.rs
+++ b/proxy/src/proxy/copy_bidirectional.rs
@@ -41,7 +41,7 @@ where
 }
 
 #[tracing::instrument(skip_all)]
-pub(super) async fn copy_bidirectional_client_compute<Client, Compute>(
+pub async fn copy_bidirectional_client_compute<Client, Compute>(
     client: &mut Client,
     compute: &mut Compute,
 ) -> Result<(u64, u64), std::io::Error>
diff --git a/proxy/src/proxy/handshake.rs b/proxy/src/proxy/handshake.rs
index 4665e07d232f..dd935cc24528 100644
--- a/proxy/src/proxy/handshake.rs
+++ b/proxy/src/proxy/handshake.rs
@@ -63,6 +63,7 @@ pub enum HandshakeData<S> {
 pub async fn handshake<S: AsyncRead + AsyncWrite + Unpin>(
     stream: S,
     mut tls: Option<&TlsConfig>,
+    record_handshake_error: bool,
 ) -> Result<HandshakeData<S>, HandshakeError> {
     // Client may try upgrading to each protocol only once
     let (mut tried_ssl, mut tried_gss) = (false, false);
@@ -95,7 +96,9 @@ pub async fn handshake<S: AsyncRead + AsyncWrite + Unpin>(
                         if !read_buf.is_empty() {
                             return Err(HandshakeError::EarlyData);
                         }
-                        let tls_stream = raw.upgrade(tls.to_server_config()).await?;
+                        let tls_stream = raw
+                            .upgrade(tls.to_server_config(), record_handshake_error)
+                            .await?;
 
                         let (_, tls_server_end_point) = tls
                             .cert_resolver
diff --git a/proxy/src/proxy/tests.rs b/proxy/src/proxy/tests.rs
index 71d85e106d7e..849e9bd33cac 100644
--- a/proxy/src/proxy/tests.rs
+++ b/proxy/src/proxy/tests.rs
@@ -175,7 +175,7 @@ async fn dummy_proxy(
     auth: impl TestAuth + Send,
 ) -> anyhow::Result<()> {
     let client = WithClientIp::new(client);
-    let mut stream = match handshake(client, tls.as_ref()).await? {
+    let mut stream = match handshake(client, tls.as_ref(), false).await? {
         HandshakeData::Startup(stream, _) => stream,
         HandshakeData::Cancel(_) => bail!("cancellation not supported"),
     };
diff --git a/proxy/src/proxy/tests/mitm.rs b/proxy/src/proxy/tests/mitm.rs
index 3b760e5dab17..cbfc9f135839 100644
--- a/proxy/src/proxy/tests/mitm.rs
+++ b/proxy/src/proxy/tests/mitm.rs
@@ -34,7 +34,10 @@ async fn proxy_mitm(
     tokio::spawn(async move {
         // begin handshake with end_server
         let end_server = connect_tls(server2, client_config2.make_tls_connect().unwrap()).await;
-        let (end_client, startup) = match handshake(client1, Some(&server_config1)).await.unwrap() {
+        let (end_client, startup) = match handshake(client1, Some(&server_config1), false)
+            .await
+            .unwrap()
+        {
             HandshakeData::Startup(stream, params) => (stream, params),
             HandshakeData::Cancel(_) => panic!("cancellation not supported"),
         };
diff --git a/proxy/src/serverless.rs b/proxy/src/serverless.rs
index 24c94fadd818..f3c42cdb014f 100644
--- a/proxy/src/serverless.rs
+++ b/proxy/src/serverless.rs
@@ -172,6 +172,10 @@ async fn connection_handler(
     };
 
     let peer_addr = peer.unwrap_or(peer_addr).ip();
+    let has_private_peer_addr = match peer_addr {
+        IpAddr::V4(ip) => ip.is_private(),
+        _ => false,
+    };
     info!(?session_id, %peer_addr, "accepted new TCP connection");
 
     // try upgrade to TLS, but with a timeout.
@@ -182,13 +186,17 @@ async fn connection_handler(
         }
         // The handshake failed
         Ok(Err(e)) => {
-            Metrics::get().proxy.tls_handshake_failures.inc();
+            if !has_private_peer_addr {
+                Metrics::get().proxy.tls_handshake_failures.inc();
+            }
             warn!(?session_id, %peer_addr, "failed to accept TLS connection: {e:?}");
             return;
         }
         // The handshake timed out
         Err(e) => {
-            Metrics::get().proxy.tls_handshake_failures.inc();
+            if !has_private_peer_addr {
+                Metrics::get().proxy.tls_handshake_failures.inc();
+            }
             warn!(?session_id, %peer_addr, "failed to accept TLS connection: {e:?}");
             return;
         }
diff --git a/proxy/src/stream.rs b/proxy/src/stream.rs
index fdd2be3ee5a4..690e92ffb111 100644
--- a/proxy/src/stream.rs
+++ b/proxy/src/stream.rs
@@ -223,12 +223,20 @@ pub enum StreamUpgradeError {
 
 impl<S: AsyncRead + AsyncWrite + Unpin> Stream<S> {
     /// If possible, upgrade raw stream into a secure TLS-based stream.
-    pub async fn upgrade(self, cfg: Arc<ServerConfig>) -> Result<TlsStream<S>, StreamUpgradeError> {
+    pub async fn upgrade(
+        self,
+        cfg: Arc<ServerConfig>,
+        record_handshake_error: bool,
+    ) -> Result<TlsStream<S>, StreamUpgradeError> {
         match self {
             Stream::Raw { raw } => Ok(tokio_rustls::TlsAcceptor::from(cfg)
                 .accept(raw)
                 .await
-                .inspect_err(|_| Metrics::get().proxy.tls_handshake_failures.inc())?),
+                .inspect_err(|_| {
+                    if record_handshake_error {
+                        Metrics::get().proxy.tls_handshake_failures.inc()
+                    }
+                })?),
             Stream::Tls { .. } => Err(StreamUpgradeError::AlreadyTls),
         }
     }