diff --git a/pyanaconda/modules/subscription/constants.py b/pyanaconda/modules/subscription/constants.py
index 8ccd146118f..01a6cb8f4b6 100644
--- a/pyanaconda/modules/subscription/constants.py
+++ b/pyanaconda/modules/subscription/constants.py
@@ -20,3 +20,5 @@
 
 # name of the RHSM systemd unit
 RHSM_SERVICE_NAME = "rhsm.service"
+# server hostname prefix marking the URL as not Satellite
+SERVER_HOSTNAME_NOT_SATELLITE_PREFIX = "not-satellite:"
diff --git a/pyanaconda/modules/subscription/runtime.py b/pyanaconda/modules/subscription/runtime.py
index 7a517091e51..a996bec7048 100644
--- a/pyanaconda/modules/subscription/runtime.py
+++ b/pyanaconda/modules/subscription/runtime.py
@@ -33,6 +33,7 @@
 from pyanaconda.modules.common.structures.subscription import AttachedSubscription, \
     SystemPurposeData
 from pyanaconda.modules.subscription import system_purpose
+from pyanaconda.modules.subscription.constants import SERVER_HOSTNAME_NOT_SATELLITE_PREFIX
 from pyanaconda.anaconda_loggers import get_module_logger
 
 import gi
@@ -176,8 +177,15 @@ def run(self):
         # - all values need to be string variants
         # - proxy password is stored in SecretData instance and we need to retrieve
         #   its value
+        # - server host name might have a prefix indicating the given URL is not
+        #   a Satellite URL, drop that prefix before setting the value to RHSM
+
+        # drop the not-satellite prefix, if any
+        server_hostname = self._request.server_hostname.removeprefix(
+            SERVER_HOSTNAME_NOT_SATELLITE_PREFIX
+        )
         property_key_map = {
-            self.CONFIG_KEY_SERVER_HOSTNAME: self._request.server_hostname,
+            self.CONFIG_KEY_SERVER_HOSTNAME: server_hostname,
             self.CONFIG_KEY_SERVER_PROXY_HOSTNAME: self._request.server_proxy_hostname,
             self.CONFIG_KEY_SERVER_PROXY_PORT: str(self._request.server_proxy_port),
             self.CONFIG_KEY_SERVER_PROXY_USER: self._request.server_proxy_user,
diff --git a/tests/unit_tests/pyanaconda_tests/modules/subscription/test_subscription_tasks.py b/tests/unit_tests/pyanaconda_tests/modules/subscription/test_subscription_tasks.py
index 3ad7f1f4c6a..b66dc0e93b7 100644
--- a/tests/unit_tests/pyanaconda_tests/modules/subscription/test_subscription_tasks.py
+++ b/tests/unit_tests/pyanaconda_tests/modules/subscription/test_subscription_tasks.py
@@ -287,6 +287,50 @@ def test_set_rhsm_config_tast_restore_default_value(self):
 
         mock_config_proxy.SetAll.assert_called_once_with(expected_dict, "")
 
+    def test_set_rhsm_config_task_not_satellite(self):
+        """Test the SetRHSMConfigurationTask task - not-satellite prefix handling."""
+        # if the subscription request has the no-satellite prefix, it should be stripped
+        # before the server hostname value is sent to RHSM
+        mock_config_proxy = Mock()
+        # RHSM config default values
+        default_config = {
+            SetRHSMConfigurationTask.CONFIG_KEY_SERVER_HOSTNAME: "server.example.com",
+            SetRHSMConfigurationTask.CONFIG_KEY_SERVER_PROXY_HOSTNAME: "proxy.example.com",
+            SetRHSMConfigurationTask.CONFIG_KEY_SERVER_PROXY_PORT: "1000",
+            SetRHSMConfigurationTask.CONFIG_KEY_SERVER_PROXY_USER: "foo_user",
+            SetRHSMConfigurationTask.CONFIG_KEY_SERVER_PROXY_PASSWORD: "foo_password",
+            SetRHSMConfigurationTask.CONFIG_KEY_RHSM_BASEURL: "cdn.example.com",
+            "key_anaconda_does_not_use_1": "foo1",
+            "key_anaconda_does_not_use_2": "foo2"
+        }
+        # a representative subscription request
+        request = SubscriptionRequest()
+        request.type = SUBSCRIPTION_REQUEST_TYPE_ORG_KEY
+        request.organization = "123456789"
+        request.account_username = "foo_user"
+        request.server_hostname = "not-satellite:candlepin.foo.com"
+        request.rhsm_baseurl = "cdn.foo.com"
+        request.server_proxy_hostname = "proxy.foo.com"
+        request.server_proxy_port = 9001
+        request.server_proxy_user = "foo_proxy_user"
+        request.account_password.set_secret("foo_password")
+        request.activation_keys.set_secret(["key1", "key2", "key3"])
+        request.server_proxy_password.set_secret("foo_proxy_password")
+        # create a task
+        task = SetRHSMConfigurationTask(rhsm_config_proxy=mock_config_proxy,
+                                        rhsm_config_defaults=default_config,
+                                        subscription_request=request)
+        task.run()
+        # check that we tried to set the expected config keys via the RHSM config DBus API
+        expected_dict = {"server.hostname": get_variant(Str, "candlepin.foo.com"),
+                         "server.proxy_hostname": get_variant(Str, "proxy.foo.com"),
+                         "server.proxy_port": get_variant(Str, "9001"),
+                         "server.proxy_user": get_variant(Str, "foo_proxy_user"),
+                         "server.proxy_password": get_variant(Str, "foo_proxy_password"),
+                         "rhsm.baseurl": get_variant(Str, "cdn.foo.com")}
+
+        mock_config_proxy.SetAll.assert_called_once_with(expected_dict, "")
+
 
 class RestoreRHSMDefaultsTaskTestCase(unittest.TestCase):
     """Test the RestoreRHSMDefaultsTask task."""