diff --git a/go.mod b/go.mod
index 23eee746..ed98e3e4 100644
--- a/go.mod
+++ b/go.mod
@@ -14,7 +14,7 @@ require (
 	github.com/golang-jwt/jwt/v4 v4.5.2
 	github.com/google/uuid v1.3.1
 	github.com/lestrrat-go/jwx/v2 v2.0.20
-	github.com/optimizely/go-sdk/v2 v2.0.0-20250820180618-907917e11924
+	github.com/optimizely/go-sdk/v2 v2.1.1-0.20250930190916-92b83d299b7a
 	github.com/orcaman/concurrent-map v1.0.0
 	github.com/prometheus/client_golang v1.18.0
 	github.com/rakyll/statik v0.1.7
diff --git a/go.sum b/go.sum
index 28471778..6fd3b18e 100644
--- a/go.sum
+++ b/go.sum
@@ -229,8 +229,8 @@ github.com/onsi/ginkgo v1.16.5 h1:8xi0RTUf59SOSfEtZMvwTvXYMzG4gV23XVHOZiXNtnE=
 github.com/onsi/ginkgo v1.16.5/go.mod h1:+E8gABHa3K6zRBolWtd+ROzc/U5bkGt0FwiG042wbpU=
 github.com/onsi/gomega v1.18.1 h1:M1GfJqGRrBrrGGsbxzV5dqM2U2ApXefZCQpkukxYRLE=
 github.com/onsi/gomega v1.18.1/go.mod h1:0q+aL8jAiMXy9hbwj2mr5GziHiwhAIQpFmmtT5hitRs=
-github.com/optimizely/go-sdk/v2 v2.0.0-20250820180618-907917e11924 h1:RxRZkvwvqMVEGphhGvs9zHT642g10ql+IDEDK7dcwZ4=
-github.com/optimizely/go-sdk/v2 v2.0.0-20250820180618-907917e11924/go.mod h1:MusRCFsU7+XzJCoCTgheLoENJSf1iiFYm4KbJqz6BYA=
+github.com/optimizely/go-sdk/v2 v2.1.1-0.20250930190916-92b83d299b7a h1:wB445WJVx9JLYsHFQiy2OruPJlZ9ejae8vfsRHKZAtQ=
+github.com/optimizely/go-sdk/v2 v2.1.1-0.20250930190916-92b83d299b7a/go.mod h1:MusRCFsU7+XzJCoCTgheLoENJSf1iiFYm4KbJqz6BYA=
 github.com/orcaman/concurrent-map v1.0.0 h1:I/2A2XPCb4IuQWcQhBhSwGfiuybl/J0ev9HDbW65HOY=
 github.com/orcaman/concurrent-map v1.0.0/go.mod h1:Lu3tH6HLW3feq74c2GC+jIMS/K2CFcDWnWD9XkenwhI=
 github.com/pelletier/go-toml/v2 v2.0.6 h1:nrzqCb7j9cDFj2coyLNLaZuJTLjWjlaz6nvTvIwycIU=
diff --git a/pkg/optimizely/cache.go b/pkg/optimizely/cache.go
index 31804375..64f3809f 100644
--- a/pkg/optimizely/cache.go
+++ b/pkg/optimizely/cache.go
@@ -333,34 +333,11 @@ func defaultLoader(
 			cacheTTL = cmab.DefaultCacheTTL
 		}
 
-		// Create retry config
-		retryConfig := &cmab.RetryConfig{
-			MaxRetries:        clientConf.CMAB.RetryConfig.MaxRetries,
-			InitialBackoff:    clientConf.CMAB.RetryConfig.InitialBackoff,
-			MaxBackoff:        clientConf.CMAB.RetryConfig.MaxBackoff,
-			BackoffMultiplier: clientConf.CMAB.RetryConfig.BackoffMultiplier,
-		}
-
-		// Apply defaults for retry config if not set
-		if retryConfig.MaxRetries == 0 {
-			retryConfig.MaxRetries = cmab.DefaultMaxRetries
-		}
-		if retryConfig.InitialBackoff == 0 {
-			retryConfig.InitialBackoff = cmab.DefaultInitialBackoff
-		}
-		if retryConfig.MaxBackoff == 0 {
-			retryConfig.MaxBackoff = cmab.DefaultMaxBackoff
-		}
-		if retryConfig.BackoffMultiplier == 0 {
-			retryConfig.BackoffMultiplier = cmab.DefaultBackoffMultiplier
-		}
-
-		// Create CMAB config (NO endpoint configuration - not configurable)
-		cmabConfig := cmab.Config{
+		// Create CMAB config using client API (RetryConfig now handled internally by go-sdk)
+		cmabConfig := client.CmabConfig{
 			CacheSize:   cacheSize,
 			CacheTTL:    cacheTTL,
 			HTTPTimeout: clientConf.CMAB.RequestTimeout,
-			RetryConfig: retryConfig,
 		}
 
 		// Add to client options
diff --git a/pkg/optimizely/cache_test.go b/pkg/optimizely/cache_test.go
index 23292b4d..529bc697 100644
--- a/pkg/optimizely/cache_test.go
+++ b/pkg/optimizely/cache_test.go
@@ -20,6 +20,7 @@ package optimizely
 import (
 	"context"
 	"fmt"
+	"os"
 	"sync"
 	"testing"
 	"time"
@@ -1107,6 +1108,37 @@ func (s *DefaultLoaderTestSuite) TestCMABWithExistingServices() {
 	s.NotNil(client.odpCache, "ODP Cache should still be configured")
 }
 
+func (s *DefaultLoaderTestSuite) TestCMABEndpointEnvironmentVariable() {
+	// Save original value and restore after test
+	originalEndpoint := os.Getenv("OPTIMIZELY_CMAB_PREDICTIONENDPOINT")
+	defer func() {
+		if originalEndpoint == "" {
+			os.Unsetenv("OPTIMIZELY_CMAB_PREDICTIONENDPOINT")
+		} else {
+			os.Setenv("OPTIMIZELY_CMAB_PREDICTIONENDPOINT", originalEndpoint)
+		}
+	}()
+
+	// Set custom endpoint
+	testEndpoint := "https://test.prediction.endpoint.com/predict/%s"
+	os.Setenv("OPTIMIZELY_CMAB_PREDICTIONENDPOINT", testEndpoint)
+
+	conf := config.ClientConfig{
+		SdkKeyRegex: "sdkkey",
+		CMAB: config.CMABConfig{
+			RequestTimeout: 5 * time.Second,
+			Cache:          config.CMABCacheConfig{},
+			RetryConfig:    config.CMABRetryConfig{},
+		},
+	}
+
+	loader := defaultLoader(config.AgentConfig{Client: conf}, s.registry, nil, s.upsMap, s.odpCacheMap, s.pcFactory, s.bpFactory)
+	client, err := loader("sdkkey")
+
+	s.NoError(err)
+	s.NotNil(client)
+}
+
 func TestDefaultLoaderTestSuite(t *testing.T) {
 	suite.Run(t, new(DefaultLoaderTestSuite))
 }