diff --git a/x-pack/plugins/apm/scripts/diagnostics_bundle/cli.ts b/x-pack/plugins/apm/scripts/diagnostics_bundle/cli.ts
index 6d46fe8fd230..68fec2d0c674 100644
--- a/x-pack/plugins/apm/scripts/diagnostics_bundle/cli.ts
+++ b/x-pack/plugins/apm/scripts/diagnostics_bundle/cli.ts
@@ -7,103 +7,149 @@
 
 /* eslint-disable no-console */
 
+import { URL } from 'url';
 import datemath from '@elastic/datemath';
 import { errors } from '@elastic/elasticsearch';
-import { AxiosError } from 'axios';
+import axios, { AxiosError } from 'axios';
 import yargs from 'yargs';
 import { initDiagnosticsBundle } from './diagnostics_bundle';
 
-const { argv } = yargs(process.argv.slice(2))
-  .option('esHost', {
-    type: 'string',
-    description: 'Elasticsearch host name',
-  })
-  .option('kbHost', {
-    type: 'string',
-    description: 'Kibana host name',
-  })
-  .option('username', {
-    type: 'string',
-    description: 'Kibana host name',
-  })
-  .option('password', {
-    type: 'string',
-    description: 'Kibana host name',
-  })
-  .option('cloudId', {
-    type: 'string',
-  })
-  .option('apiKey', {
-    type: 'string',
-  })
-  .option('rangeFrom', {
-    type: 'string',
-    description: 'Time-range start',
-    coerce: convertDate,
-  })
-  .option('rangeTo', {
-    type: 'string',
-    description: 'Time range end',
-    coerce: convertDate,
-  })
-  .option('kuery', {
-    type: 'string',
-    description: 'KQL query to filter documents by',
-  })
-  .help();
+async function init() {
+  const { argv } = yargs(process.argv.slice(2))
+    .option('esHost', {
+      type: 'string',
+      description: 'Elasticsearch host name',
+    })
+    .option('kbHost', {
+      type: 'string',
+      description: 'Kibana host name',
+    })
+    .option('username', {
+      type: 'string',
+      description: 'Kibana host name',
+    })
+    .option('password', {
+      type: 'string',
+      description: 'Kibana host name',
+    })
+    .option('local', {
+      type: 'boolean',
+      description: 'Connect to local cluster',
+      default: false,
+    })
+    .option('cloudId', {
+      type: 'string',
+    })
+    .option('apiKey', {
+      type: 'string',
+    })
+    .option('rangeFrom', {
+      type: 'string',
+      description: 'Time-range start',
+      coerce: convertDate,
+    })
+    .option('rangeTo', {
+      type: 'string',
+      description: 'Time range end',
+      coerce: convertDate,
+    })
+    .option('kuery', {
+      type: 'string',
+      description: 'KQL query to filter documents by',
+    })
+    .help();
 
-const { esHost, kbHost, password, username, kuery, apiKey, cloudId } = argv;
-const rangeFrom = argv.rangeFrom as unknown as number;
-const rangeTo = argv.rangeTo as unknown as number;
+  const { kuery, apiKey, cloudId } = argv;
+  let esHost = argv.esHost;
+  let kbHost = argv.kbHost;
+  let password = argv.password;
+  let username = argv.username;
 
-if ((!esHost || !kbHost) && !cloudId) {
-  console.error('Either esHost and kbHost or cloudId must be provided');
-  process.exit(1);
-}
+  const rangeFrom = argv.rangeFrom as unknown as number;
+  const rangeTo = argv.rangeTo as unknown as number;
 
-if ((!username || !password) && !apiKey) {
-  console.error('Either username and password or apiKey must be provided');
-  process.exit(1);
-}
+  if (argv.local) {
+    esHost = 'http://localhost:9200';
+    kbHost = 'http://127.0.0.1:5601';
+    password = 'changeme';
+    username = 'elastic';
+  }
 
-if (rangeFrom) {
-  console.log(`rangeFrom = ${new Date(rangeFrom).toISOString()}`);
-}
+  if ((!esHost || !kbHost) && !cloudId) {
+    console.error(
+      'Please provide either: --esHost and --kbHost or --cloudId\n'
+    );
 
-if (rangeTo) {
-  console.log(`rangeTo = ${new Date(rangeTo).toISOString()}`);
-}
+    console.log('Example 1:');
+    console.log(
+      '--kbHost https://foo.kb.us-west2.gcp.elastic-cloud.com --esHost https://foo.es.us-west2.gcp.elastic-cloud.com\n'
+    );
 
-initDiagnosticsBundle({
-  esHost,
-  kbHost,
-  password,
-  apiKey,
-  cloudId,
-  username,
-  start: rangeFrom,
-  end: rangeTo,
-  kuery,
-})
-  .then((res) => {
-    console.log(res);
+    console.log('Example 2:');
+    console.log('--cloudId foo:very_secret\n');
+
+    console.log('Example 3:');
+    console.log('--local');
+    process.exit(1);
+  }
+
+  if ((!username || !password) && !apiKey) {
+    console.error(
+      'Please provide either: --username and --password or --apiKey \n'
+    );
+
+    console.log('Example 1:');
+    console.log('--username elastic --password changeme\n');
+
+    console.log('Example 2:');
+    console.log('--apiKey very_secret\n');
+
+    console.log('Example 3:');
+    console.log('--local');
+    process.exit(1);
+  }
+
+  if (rangeFrom) {
+    console.log(`rangeFrom = ${new Date(rangeFrom).toISOString()}`);
+  }
+
+  if (rangeTo) {
+    console.log(`rangeTo = ${new Date(rangeTo).toISOString()}`);
+  }
+
+  initDiagnosticsBundle({
+    esHost,
+    kbHost: await getHostnameWithBasePath(kbHost),
+    password,
+    apiKey,
+    cloudId,
+    username,
+    start: rangeFrom,
+    end: rangeTo,
+    kuery,
   })
-  .catch((err) => {
-    process.exitCode = 1;
-    if (err instanceof AxiosError && err.response?.data) {
-      console.error(err.response.data);
-      return;
-    }
+    .then((res) => {
+      console.log(res);
+    })
+    .catch((err) => {
+      process.exitCode = 1;
+      if (err instanceof AxiosError && err.response?.data) {
+        console.error(err.response.data);
+        return;
+      }
 
-    // @ts-expect-error
-    if (err instanceof errors.ResponseError && err.meta.body.error.reason) {
       // @ts-expect-error
-      console.error(err.meta.body.error.reason);
-      return;
-    }
+      if (err instanceof errors.ResponseError && err.meta.body.error.reason) {
+        // @ts-expect-error
+        console.error(err.meta.body.error.reason);
+        return;
+      }
 
-    console.error(err);
-  });
+      console.error(err);
+    });
+}
+
+init();
 
 function convertDate(dateString: string): number {
   const parsed = datemath.parse(dateString);
@@ -113,3 +159,38 @@ function convertDate(dateString: string): number {
 
   throw new Error(`Incorrect argument: ${dateString}`);
 }
+
+async function getHostnameWithBasePath(kibanaHostname?: string) {
+  if (!kibanaHostname) {
+    return;
+  }
+
+  const parsedHostName = parseHostName(kibanaHostname);
+
+  try {
+    await axios.get(parsedHostName, { maxRedirects: 0 });
+  } catch (e) {
+    if (isAxiosError(e) && e.response?.status === 302) {
+      const location = e.response?.headers?.location ?? '';
+      return `${parsedHostName}${location}`;
+    }
+
+    throw e;
+  }
+
+  return parsedHostName;
+}
+
+function parseHostName(hostname: string) {
+  // replace localhost with 127.0.0.1
+  // https://github.com/node-fetch/node-fetch/issues/1624#issuecomment-1235826631
+  hostname = hostname.replace('localhost', '127.0.0.1');
+
+  // extract just the hostname in case user provided a full URL
+  const parsedUrl = new URL(hostname);
+  return parsedUrl.origin;
+}
+
+export function isAxiosError(e: AxiosError | Error): e is AxiosError {
+  return 'isAxiosError' in e;
+}
diff --git a/x-pack/plugins/apm/scripts/diagnostics_bundle/diagnostics_bundle.ts b/x-pack/plugins/apm/scripts/diagnostics_bundle/diagnostics_bundle.ts
index 83671f6b97fc..d7217ec0fd4e 100644
--- a/x-pack/plugins/apm/scripts/diagnostics_bundle/diagnostics_bundle.ts
+++ b/x-pack/plugins/apm/scripts/diagnostics_bundle/diagnostics_bundle.ts
@@ -9,7 +9,7 @@
 
 import { Client } from '@elastic/elasticsearch';
 import fs from 'fs/promises';
-import axios, { AxiosInstance } from 'axios';
+import axios, { AxiosRequestConfig } from 'axios';
 import type { APMIndices } from '@kbn/apm-data-access-plugin/server';
 import { APIReturnType } from '../../public/services/rest/create_call_apm_api';
 import { getDiagnosticsBundle } from '../../server/routes/diagnostics/get_diagnostics_bundle';
@@ -39,7 +39,7 @@ export async function initDiagnosticsBundle({
 }) {
   const auth = username && password ? { username, password } : undefined;
   const apiKeyHeader = apiKey ? { Authorization: `ApiKey ${apiKey}` } : {};
-  const { kibanaHost } = parseCloudId(cloudId);
+  const parsedCloudId = parseCloudId(cloudId);
 
   const esClient = new Client({
     ...(esHost ? { node: esHost } : {}),
@@ -48,12 +48,17 @@ export async function initDiagnosticsBundle({
     headers: { ...apiKeyHeader },
   });
 
-  const kibanaClient = axios.create({
-    baseURL: kbHost ?? kibanaHost,
+  const kibanaClientOpts = {
+    baseURL: kbHost ?? parsedCloudId.kibanaHost,
     auth,
-    headers: { 'kbn-xsrf': 'true', ...apiKeyHeader },
-  });
-  const apmIndices = await getApmIndices(kibanaClient);
+    headers: {
+      'kbn-xsrf': 'true',
+      'elastic-api-version': '2023-10-31',
+      ...apiKeyHeader,
+    },
+  };
+
+  const apmIndices = await getApmIndices(kibanaClientOpts);
 
   const bundle = await getDiagnosticsBundle({
     esClient,
@@ -62,8 +67,8 @@ export async function initDiagnosticsBundle({
     end,
     kuery,
   });
-  const fleetPackageInfo = await getFleetPackageInfo(kibanaClient);
-  const kibanaVersion = await getKibanaVersion(kibanaClient);
+  const fleetPackageInfo = await getFleetPackageInfo(kibanaClientOpts);
+  const kibanaVersion = await getKibanaVersion(kibanaClientOpts);
 
   await saveReportToFile({ ...bundle, fleetPackageInfo, kibanaVersion });
 }
@@ -79,7 +84,7 @@ async function saveReportToFile(combinedReport: DiagnosticsBundle) {
   console.log(`Diagnostics report written to "${filename}"`);
 }
 
-async function getApmIndices(kibanaClient: AxiosInstance) {
+async function getApmIndices(kbnClientOpts: AxiosRequestConfig) {
   interface Response {
     apmIndexSettings: Array<{
       configurationName: string;
@@ -88,8 +93,9 @@ async function getApmIndices(kibanaClient: AxiosInstance) {
     }>;
   }
 
-  const res = await kibanaClient.get<Response>(
-    '/internal/apm/settings/apm-index-settings'
+  const res = await axios.get<Response>(
+    '/internal/apm/settings/apm-index-settings',
+    kbnClientOpts
   );
 
   return Object.fromEntries(
@@ -102,16 +108,16 @@ async function getApmIndices(kibanaClient: AxiosInstance) {
   ) as APMIndices;
 }
 
-async function getFleetPackageInfo(kibanaClient: AxiosInstance) {
-  const res = await kibanaClient.get('/api/fleet/epm/packages/apm');
+async function getFleetPackageInfo(kbnClientOpts: AxiosRequestConfig) {
+  const res = await axios.get('/api/fleet/epm/packages/apm', kbnClientOpts);
   return {
     version: res.data.response.version,
     isInstalled: res.data.response.status,
   };
 }
 
-async function getKibanaVersion(kibanaClient: AxiosInstance) {
-  const res = await kibanaClient.get('/api/status');
+async function getKibanaVersion(kbnClientOpts: AxiosRequestConfig) {
+  const res = await axios.get('/api/status', kbnClientOpts);
   return res.data.version.number;
 }