diff --git a/.changelog/14395.txt b/.changelog/14395.txt
new file mode 100644
index 000000000..3caa76401
--- /dev/null
+++ b/.changelog/14395.txt
@@ -0,0 +1,4 @@
+```release-note:feature
+service-defaults: Added support for `local_request_timeout_ms` and
+`local_connect_timeout_ms` in servicedefaults config entry
+```
diff --git a/agent/configentry/resolve.go b/agent/configentry/resolve.go
index ec85f34d2..f6090e98f 100644
--- a/agent/configentry/resolve.go
+++ b/agent/configentry/resolve.go
@@ -88,6 +88,20 @@ func ComputeResolvedServiceConfig(
 			thisReply.ProxyConfig["max_inbound_connections"] = serviceConf.MaxInboundConnections
 		}
 
+		if serviceConf.LocalConnectTimeoutMs > 0 {
+			if thisReply.ProxyConfig == nil {
+				thisReply.ProxyConfig = map[string]interface{}{}
+			}
+			thisReply.ProxyConfig["local_connect_timeout_ms"] = serviceConf.LocalConnectTimeoutMs
+		}
+
+		if serviceConf.LocalRequestTimeoutMs > 0 {
+			if thisReply.ProxyConfig == nil {
+				thisReply.ProxyConfig = map[string]interface{}{}
+			}
+			thisReply.ProxyConfig["local_request_timeout_ms"] = serviceConf.LocalRequestTimeoutMs
+		}
+
 		thisReply.Meta = serviceConf.Meta
 	}
 
diff --git a/agent/configentry/resolve_test.go b/agent/configentry/resolve_test.go
index 30a03aae6..301472c1c 100644
--- a/agent/configentry/resolve_test.go
+++ b/agent/configentry/resolve_test.go
@@ -44,6 +44,30 @@ func Test_ComputeResolvedServiceConfig(t *testing.T) {
 				},
 			},
 		},
+		{
+			name: "proxy with local_connect_timeout_ms and local_request_timeout_ms",
+			args: args{
+				scReq: &structs.ServiceConfigRequest{
+					Name: "sid",
+				},
+				entries: &ResolvedServiceConfigSet{
+					ServiceDefaults: map[structs.ServiceID]*structs.ServiceConfigEntry{
+						sid: {
+							MaxInboundConnections: 20,
+							LocalConnectTimeoutMs: 20000,
+							LocalRequestTimeoutMs: 30000,
+						},
+					},
+				},
+			},
+			want: &structs.ServiceConfigResponse{
+				ProxyConfig: map[string]interface{}{
+					"max_inbound_connections":  20,
+					"local_connect_timeout_ms": 20000,
+					"local_request_timeout_ms": 30000,
+				},
+			},
+		},
 	}
 	for _, tt := range tests {
 		t.Run(tt.name, func(t *testing.T) {
diff --git a/agent/structs/config_entry.go b/agent/structs/config_entry.go
index 23c5c8e47..72efbffce 100644
--- a/agent/structs/config_entry.go
+++ b/agent/structs/config_entry.go
@@ -109,6 +109,8 @@ type ServiceConfigEntry struct {
 	UpstreamConfig        *UpstreamConfiguration `json:",omitempty" alias:"upstream_config"`
 	Destination           *DestinationConfig     `json:",omitempty"`
 	MaxInboundConnections int                    `json:",omitempty" alias:"max_inbound_connections"`
+	LocalConnectTimeoutMs int                    `json:",omitempty" alias:"local_connect_timeout_ms"`
+	LocalRequestTimeoutMs int                    `json:",omitempty" alias:"local_request_timeout_ms"`
 
 	Meta               map[string]string `json:",omitempty"`
 	acl.EnterpriseMeta `hcl:",squash" mapstructure:",squash"`
diff --git a/api/config_entry.go b/api/config_entry.go
index 7fe128958..63115b0a6 100644
--- a/api/config_entry.go
+++ b/api/config_entry.go
@@ -236,6 +236,8 @@ type ServiceConfigEntry struct {
 	UpstreamConfig        *UpstreamConfiguration  `json:",omitempty" alias:"upstream_config"`
 	Destination           *DestinationConfig      `json:",omitempty"`
 	MaxInboundConnections int                     `json:",omitempty" alias:"max_inbound_connections"`
+	LocalConnectTimeoutMs int                     `json:",omitempty" alias:"local_connect_timeout_ms"`
+	LocalRequestTimeoutMs int                     `json:",omitempty" alias:"local_request_timeout_ms"`
 	Meta                  map[string]string       `json:",omitempty"`
 	CreateIndex           uint64
 	ModifyIndex           uint64
diff --git a/api/config_entry_test.go b/api/config_entry_test.go
index a897cdeb0..49b3d0d01 100644
--- a/api/config_entry_test.go
+++ b/api/config_entry_test.go
@@ -105,6 +105,8 @@ func TestAPI_ConfigEntries(t *testing.T) {
 				"gir": "zim",
 			},
 			MaxInboundConnections: 5,
+			LocalConnectTimeoutMs: 5000,
+			LocalRequestTimeoutMs: 7000,
 		}
 
 		dest := &DestinationConfig{
@@ -146,6 +148,8 @@ func TestAPI_ConfigEntries(t *testing.T) {
 		require.Equal(t, service.Meta, readService.Meta)
 		require.Equal(t, service.Meta, readService.GetMeta())
 		require.Equal(t, service.MaxInboundConnections, readService.MaxInboundConnections)
+		require.Equal(t, service.LocalConnectTimeoutMs, readService.LocalConnectTimeoutMs)
+		require.Equal(t, service.LocalRequestTimeoutMs, readService.LocalRequestTimeoutMs)
 
 		// update it
 		service.Protocol = "tcp"
diff --git a/website/content/docs/connect/config-entries/service-defaults.mdx b/website/content/docs/connect/config-entries/service-defaults.mdx
index 2ce58c271..b49224b15 100644
--- a/website/content/docs/connect/config-entries/service-defaults.mdx
+++ b/website/content/docs/connect/config-entries/service-defaults.mdx
@@ -711,6 +711,18 @@ represents a location outside the Consul cluster. They can be dialed directly wh
       type: 'int: 0',
       yaml: true,
     },
+    {
+      name: 'LocalConnectTimeoutMs',
+      description: ' The number of milliseconds allowed to make connections to the local application instance before timing out. Defaults to 5000.',
+      type: 'int: 0',
+      yaml: false,
+    },
+    {
+      name: 'LocalRequestTimeoutMs',
+      description: ' In milliseconds, the timeout for HTTP requests to the local application instance. Applies to HTTP-based protocols only. If not specified, inherits the Envoy default for route timeouts (15s).',
+      type: 'int: 0',
+      yaml: false,
+    },
     {
       name: 'MeshGateway',
       type: 'MeshGatewayConfig: <optional>',