diff --git a/server/cmd/mmctl/commands/completion.go b/server/cmd/mmctl/commands/completion.go
index 201cc9a6e0..c074aa5ec6 100644
--- a/server/cmd/mmctl/commands/completion.go
+++ b/server/cmd/mmctl/commands/completion.go
@@ -218,7 +218,7 @@ func validateArgsWithClient(fn validateArgsFn) func(cmd *cobra.Command, args []s
 		ctx, cancel := context.WithTimeout(context.Background(), shellCompleteTimeout)
 		defer cancel()
 
-		c, _, _, err := getClient(ctx)
+		c, _, _, err := getClient(ctx, cmd)
 		if err != nil {
 			return nil, cobra.ShellCompDirectiveError
 		}
diff --git a/server/cmd/mmctl/commands/init.go b/server/cmd/mmctl/commands/init.go
index 237d5721b0..77c611a3be 100644
--- a/server/cmd/mmctl/commands/init.go
+++ b/server/cmd/mmctl/commands/init.go
@@ -68,8 +68,22 @@ func CheckVersionMatch(version, serverVersion string) (bool, error) {
 	return true, nil
 }
 
-func getClient(ctx context.Context) (*model.Client4, string, bool, error) {
-	if viper.GetBool("local") {
+func getClient(ctx context.Context, cmd *cobra.Command) (*model.Client4, string, bool, error) {
+	useLocal := viper.GetBool("local")
+
+	if !useLocal {
+		// Assume local mode if no server address is provided
+		credentials, err := GetCurrentCredentials()
+		if err != nil {
+			cmd.PrintErrln("Warning: Unable to retrieve credentials, assuming --local mode")
+			useLocal = true
+		} else if credentials == nil {
+			cmd.PrintErrln("Warning: No credentials found, assuming --local mode")
+			useLocal = true
+		}
+	}
+
+	if useLocal {
 		c, err := InitUnixClient(viper.GetString("local-socket-path"))
 		if err != nil {
 			return nil, "", true, err
@@ -90,7 +104,7 @@ func getClient(ctx context.Context) (*model.Client4, string, bool, error) {
 func withClient(fn func(c client.Client, cmd *cobra.Command, args []string) error) func(cmd *cobra.Command, args []string) error {
 	return func(cmd *cobra.Command, args []string) error {
 		ctx := context.TODO()
-		c, serverVersion, local, err := getClient(ctx)
+		c, serverVersion, local, err := getClient(ctx, cmd)
 		if err != nil {
 			return fmt.Errorf("failed to create client: %w", err)
 		}