diff --git a/docker/Dockerfile.dev.api b/docker/Dockerfile.dev.api
index d65863579..d4f4e3a7b 100644
--- a/docker/Dockerfile.dev.api
+++ b/docker/Dockerfile.dev.api
@@ -21,6 +21,7 @@ RUN . /venv/bin/activate && poetry install --no-root
 ENV PYTHONPATH="/app:${PYTHONPATH}"
 ENV PATH="/venv/bin:${PATH}"
 ENV VIRTUAL_ENV="/venv"
+ENV POSTHOG_DISABLED="true"
 
 ENTRYPOINT ["/app/keep/entrypoint.sh"]
 
diff --git a/keep/api/core/posthog.py b/keep/api/core/posthog.py
index ec6d1e31b..143157029 100644
--- a/keep/api/core/posthog.py
+++ b/keep/api/core/posthog.py
@@ -14,7 +14,7 @@
     except metadata.PackageNotFoundError:
         KEEP_VERSION = os.environ.get("KEEP_VERSION", "unknown")
 
-POSTHOG_DISABLED = os.getenv("POSTHOG_DISABLED", "false") == "true"
+POSTHOG_DISABLED = os.getenv("POSTHOG_DISABLED", "false").lower() == "true"
 
 if POSTHOG_DISABLED:
     posthog.disabled = True