diff --git a/src/apps/urls.test.ts b/src/apps/urls.test.ts
index c8e0a2e17..c63fb24d7 100644
--- a/src/apps/urls.test.ts
+++ b/src/apps/urls.test.ts
@@ -1,31 +1,47 @@
 import { resolveAppIframeUrl } from "@saleor/apps/urls";
-
-jest.mock("@saleor/config", () => ({
-  ...jest.requireActual("@saleor/config"),
-  getApiUrl: () => "https://shop.saleor.cloud/graphql/",
-}));
+import * as config from "@saleor/config";
 
 describe("resolveAppIframeUrl", () => {
   afterAll(() => {
     jest.clearAllMocks();
   });
 
-  it.each<[string, string, Record<string, unknown>, string]>([
-    [
-      "XyZ123",
-      "https://my-app.vercel.app",
-      { param1: "param1" },
-      "https://my-app.vercel.app?domain=shop.saleor.cloud&saleorApiUrl=https%3A%2F%2Fshop.saleor.cloud%2Fgraphql%2F&id=XyZ123&param1=param1",
-    ],
-    [
-      "AbC987",
-      "https://my-app.vercel.app/configuration",
-      { param1: "param1", param2: "param2" },
-      "https://my-app.vercel.app/configuration?domain=shop.saleor.cloud&saleorApiUrl=https%3A%2F%2Fshop.saleor.cloud%2Fgraphql%2F&id=AbC987&param1=param1&param2=param2",
-    ],
-  ])("Generates valid URL from segments", (id, appUrl, params, expectedUrl) => {
-    const result = resolveAppIframeUrl(id, appUrl, params);
+  describe("For full URL provided in env", () => {
+    beforeEach(() => {
+      jest
+        .spyOn(config, "getApiUrl")
+        .mockImplementation(() => "https://shop.saleor.cloud/graphql/");
+    });
 
-    expect(result).toEqual(expectedUrl);
+    it.each<[string, string, Record<string, string>, string]>([
+      [
+        "XyZ123",
+        "https://my-app.vercel.app",
+        { param1: "param1" },
+        "https://my-app.vercel.app?domain=shop.saleor.cloud&saleorApiUrl=https%3A%2F%2Fshop.saleor.cloud%2Fgraphql%2F&id=XyZ123&param1=param1",
+      ],
+      [
+        "AbC987",
+        "https://my-app.vercel.app/configuration",
+        { param1: "param1", param2: "param2" },
+        "https://my-app.vercel.app/configuration?domain=shop.saleor.cloud&saleorApiUrl=https%3A%2F%2Fshop.saleor.cloud%2Fgraphql%2F&id=AbC987&param1=param1&param2=param2",
+      ],
+    ])(
+      "Generates valid URL from segments",
+      (id, appUrl, params, expectedUrl) => {
+        const result = resolveAppIframeUrl(id, appUrl, params);
+
+        expect(result).toEqual(expectedUrl);
+      },
+    );
   });
+
+  /**
+   * Test this scenario for cloud deployments where origin is computed.
+   *
+   * Current jest is not set up for testing location/URL
+   */
+  test.todo(
+    "Test if URL is valid when API_URL in env is absolute path like /graphql/",
+  );
 });
diff --git a/src/apps/urls.ts b/src/apps/urls.ts
index 19727e579..a6de69f84 100644
--- a/src/apps/urls.ts
+++ b/src/apps/urls.ts
@@ -123,8 +123,11 @@ export const resolveAppIframeUrl = (
   appUrl: string,
   params: AppDetailsUrlQueryParams,
 ) => {
-  const apiUrl = getApiUrl();
-  const apiUrlHost = new URL(getApiUrl()).hostname;
+  const apiUrl = new URL(getApiUrl(), window.location.origin).href;
+  /**
+   * Use host to preserve port, in case of multiple Saleors running on localhost
+   */
+  const apiUrlHost = new URL(apiUrl).host;
 
   const iframeContextQueryString = `?${stringifyQs(
     {