diff --git a/CHANGELOG.md b/CHANGELOG.md
index dbf11e269..57f6be992 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,8 @@
 
 ## vNext
 
+- Added new preview packages, `Microsoft.DurableTask.Client.AzureManaged` and `Microsoft.DurableTask.Worker.AzureManaged`
+
 ### Microsoft.DurableTask.Client
 
 - Add new `IDurableTaskClientBuilder AddDurableTaskClient(IServiceCollection, string?)` API
diff --git a/src/Client/AzureManaged/DurableTaskSchedulerClientExtensions.cs b/src/Client/AzureManaged/DurableTaskSchedulerClientExtensions.cs
index a3fa583f9..b11f450a6 100644
--- a/src/Client/AzureManaged/DurableTaskSchedulerClientExtensions.cs
+++ b/src/Client/AzureManaged/DurableTaskSchedulerClientExtensions.cs
@@ -59,6 +59,7 @@ public static void UseDurableTaskScheduler(
                 options.EndpointAddress = connectionOptions.EndpointAddress;
                 options.TaskHubName = connectionOptions.TaskHubName;
                 options.Credential = connectionOptions.Credential;
+                options.AllowInsecureCredentials = connectionOptions.AllowInsecureCredentials;
             },
             configure);
     }
diff --git a/src/Client/AzureManaged/DurableTaskSchedulerClientOptions.cs b/src/Client/AzureManaged/DurableTaskSchedulerClientOptions.cs
index 172332cda..9f6829fca 100644
--- a/src/Client/AzureManaged/DurableTaskSchedulerClientOptions.cs
+++ b/src/Client/AzureManaged/DurableTaskSchedulerClientOptions.cs
@@ -59,12 +59,17 @@ public static DurableTaskSchedulerClientOptions FromConnectionString(string conn
     /// <param name="connectionString">The connection string to parse.</param>
     /// <returns>A new instance of <see cref="DurableTaskSchedulerClientOptions"/>.</returns>
     internal static DurableTaskSchedulerClientOptions FromConnectionString(
-        DurableTaskSchedulerConnectionString connectionString) => new()
+        DurableTaskSchedulerConnectionString connectionString)
+    {
+        TokenCredential? credential = GetCredentialFromConnectionString(connectionString);
+        return new DurableTaskSchedulerClientOptions()
         {
             EndpointAddress = connectionString.Endpoint,
             TaskHubName = connectionString.TaskHubName,
-            Credential = GetCredentialFromConnectionString(connectionString),
+            Credential = credential,
+            AllowInsecureCredentials = credential is null,
         };
+    }
 
     /// <summary>
     /// Creates a gRPC channel for communicating with the Durable Task Scheduler service.
diff --git a/src/Worker/AzureManaged/DurableTaskSchedulerWorkerExtensions.cs b/src/Worker/AzureManaged/DurableTaskSchedulerWorkerExtensions.cs
index 63d19fa00..7a3baa414 100644
--- a/src/Worker/AzureManaged/DurableTaskSchedulerWorkerExtensions.cs
+++ b/src/Worker/AzureManaged/DurableTaskSchedulerWorkerExtensions.cs
@@ -60,6 +60,7 @@ public static void UseDurableTaskScheduler(
                 options.EndpointAddress = connectionOptions.EndpointAddress;
                 options.TaskHubName = connectionOptions.TaskHubName;
                 options.Credential = connectionOptions.Credential;
+                options.AllowInsecureCredentials = connectionOptions.AllowInsecureCredentials;
             },
             configure);
     }
diff --git a/src/Worker/AzureManaged/DurableTaskSchedulerWorkerOptions.cs b/src/Worker/AzureManaged/DurableTaskSchedulerWorkerOptions.cs
index 67da8cb7a..4a92d91dc 100644
--- a/src/Worker/AzureManaged/DurableTaskSchedulerWorkerOptions.cs
+++ b/src/Worker/AzureManaged/DurableTaskSchedulerWorkerOptions.cs
@@ -65,12 +65,17 @@ public static DurableTaskSchedulerWorkerOptions FromConnectionString(string conn
     /// <param name="connectionString">The connection string to parse.</param>
     /// <returns>A new instance of <see cref="DurableTaskSchedulerWorkerOptions"/>.</returns>
     internal static DurableTaskSchedulerWorkerOptions FromConnectionString(
-        DurableTaskSchedulerConnectionString connectionString) => new()
+        DurableTaskSchedulerConnectionString connectionString)
+    {
+        TokenCredential? credential = GetCredentialFromConnectionString(connectionString);
+        return new DurableTaskSchedulerWorkerOptions()
         {
             EndpointAddress = connectionString.Endpoint,
             TaskHubName = connectionString.TaskHubName,
-            Credential = GetCredentialFromConnectionString(connectionString),
+            Credential = credential,
+            AllowInsecureCredentials = credential is null,
         };
+    }
 
     /// <summary>
     /// Creates a gRPC channel for communicating with the Durable Task Scheduler service.
diff --git a/src/Worker/Grpc/GrpcDurableTaskWorker.cs b/src/Worker/Grpc/GrpcDurableTaskWorker.cs
index d685a4fe1..cb11054d1 100644
--- a/src/Worker/Grpc/GrpcDurableTaskWorker.cs
+++ b/src/Worker/Grpc/GrpcDurableTaskWorker.cs
@@ -46,8 +46,8 @@ public GrpcDurableTaskWorker(
     /// <inheritdoc />
     protected override async Task ExecuteAsync(CancellationToken stoppingToken)
     {
-        await using AsyncDisposable disposable = this.GetCallInvoker(out CallInvoker callInvoker);
-        this.logger.StartingTaskHubWorker();
+        await using AsyncDisposable disposable = this.GetCallInvoker(out CallInvoker callInvoker, out string address);
+        this.logger.StartingTaskHubWorker(address);
         await new Processor(this, new(callInvoker)).ExecuteAsync(stoppingToken);
     }
 
@@ -75,22 +75,25 @@ static GrpcChannel GetChannel(string? address)
     }
 #endif
 
-    AsyncDisposable GetCallInvoker(out CallInvoker callInvoker)
+    AsyncDisposable GetCallInvoker(out CallInvoker callInvoker, out string address)
     {
         if (this.grpcOptions.Channel is GrpcChannel c)
         {
             callInvoker = c.CreateCallInvoker();
+            address = c.Target;
             return default;
         }
 
         if (this.grpcOptions.CallInvoker is CallInvoker invoker)
         {
             callInvoker = invoker;
+            address = "(unspecified)";
             return default;
         }
 
         c = GetChannel(this.grpcOptions.Address);
         callInvoker = c.CreateCallInvoker();
+        address = c.Target;
         return new AsyncDisposable(() => new(c.ShutdownAsync()));
     }
 }
diff --git a/src/Worker/Grpc/Logs.cs b/src/Worker/Grpc/Logs.cs
index d6c978fe3..2ff8d40ec 100644
--- a/src/Worker/Grpc/Logs.cs
+++ b/src/Worker/Grpc/Logs.cs
@@ -13,8 +13,8 @@ namespace Microsoft.DurableTask.Worker.Grpc
     /// </remarks>
     static partial class Logs
     {
-        [LoggerMessage(EventId = 1, Level = LogLevel.Information, Message = "Durable Task gRPC worker starting.")]
-        public static partial void StartingTaskHubWorker(this ILogger logger);
+        [LoggerMessage(EventId = 1, Level = LogLevel.Information, Message = "Durable Task gRPC worker starting and connecting to {endpoint}.")]
+        public static partial void StartingTaskHubWorker(this ILogger logger, string endpoint);
 
         [LoggerMessage(EventId = 2, Level = LogLevel.Information, Message = "Durable Task gRPC worker has disconnected from gRPC server.")]
         public static partial void SidecarDisconnected(this ILogger logger);
diff --git a/test/Client/AzureManaged.Tests/DurableTaskSchedulerClientExtensionsTests.cs b/test/Client/AzureManaged.Tests/DurableTaskSchedulerClientExtensionsTests.cs
index 599fa1c7b..d625703ca 100644
--- a/test/Client/AzureManaged.Tests/DurableTaskSchedulerClientExtensionsTests.cs
+++ b/test/Client/AzureManaged.Tests/DurableTaskSchedulerClientExtensionsTests.cs
@@ -65,6 +65,32 @@ public void UseDurableTaskScheduler_WithConnectionString_ShouldConfigureCorrectl
         clientOptions.Credential.Should().BeOfType<DefaultAzureCredential>();
     }
 
+    [Fact]
+    public void UseDurableTaskScheduler_WithLocalhostConnectionString_ShouldConfigureCorrectly()
+    {
+        // Arrange
+        ServiceCollection services = new();
+        Mock<IDurableTaskClientBuilder> mockBuilder = new();
+        mockBuilder.Setup(b => b.Services).Returns(services);
+        string connectionString = $"Endpoint=http://localhost;Authentication=None;TaskHub={ValidTaskHub}";
+
+        // Act
+        mockBuilder.Object.UseDurableTaskScheduler(connectionString);
+
+        // Assert
+        ServiceProvider provider = services.BuildServiceProvider();
+        IOptions<GrpcDurableTaskClientOptions>? options = provider.GetService<IOptions<GrpcDurableTaskClientOptions>>();
+        options.Should().NotBeNull();
+
+        // Validate the configured options
+        var workerOptions = provider.GetRequiredService<IOptions<DurableTaskSchedulerClientOptions>>().Value;
+        workerOptions.EndpointAddress.Should().Be("http://localhost");
+        workerOptions.TaskHubName.Should().Be(ValidTaskHub);
+        workerOptions.Credential.Should().BeNull();
+        workerOptions.ResourceId.Should().Be("https://durabletask.io");
+        workerOptions.AllowInsecureCredentials.Should().BeTrue();
+    }
+
     [Theory]
     [InlineData(null, "testhub")]
     [InlineData("myaccount.westus3.durabletask.io", null)]
@@ -124,7 +150,7 @@ public void UseDurableTaskScheduler_WithInvalidConnectionString_ShouldThrowArgum
 
         // Assert
         action.Should().Throw<ArgumentNullException>()
-            .WithMessage("Value cannot be null. (Parameter 'Endpoint')");
+            .WithMessage("Value cannot be null. (Parameter '*')");
     }
 
     [Theory]
diff --git a/test/Worker/AzureManaged.Tests/DurableTaskSchedulerWorkerExtensionsTests.cs b/test/Worker/AzureManaged.Tests/DurableTaskSchedulerWorkerExtensionsTests.cs
index bec5a962a..49e8df4e3 100644
--- a/test/Worker/AzureManaged.Tests/DurableTaskSchedulerWorkerExtensionsTests.cs
+++ b/test/Worker/AzureManaged.Tests/DurableTaskSchedulerWorkerExtensionsTests.cs
@@ -69,6 +69,32 @@ public void UseDurableTaskScheduler_WithConnectionString_ShouldConfigureCorrectl
         workerOptions.AllowInsecureCredentials.Should().BeFalse();
     }
 
+    [Fact]
+    public void UseDurableTaskScheduler_WithLocalhostConnectionString_ShouldConfigureCorrectly()
+    {
+        // Arrange
+        ServiceCollection services = new();
+        Mock<IDurableTaskWorkerBuilder> mockBuilder = new();
+        mockBuilder.Setup(b => b.Services).Returns(services);
+        string connectionString = $"Endpoint=http://localhost;Authentication=None;TaskHub={ValidTaskHub}";
+
+        // Act
+        mockBuilder.Object.UseDurableTaskScheduler(connectionString);
+
+        // Assert
+        ServiceProvider provider = services.BuildServiceProvider();
+        IOptions<GrpcDurableTaskWorkerOptions>? options = provider.GetService<IOptions<GrpcDurableTaskWorkerOptions>>();
+        options.Should().NotBeNull();
+
+        // Validate the configured options
+        var workerOptions = provider.GetRequiredService<IOptions<DurableTaskSchedulerWorkerOptions>>().Value;
+        workerOptions.EndpointAddress.Should().Be("http://localhost");
+        workerOptions.TaskHubName.Should().Be(ValidTaskHub);
+        workerOptions.Credential.Should().BeNull();
+        workerOptions.ResourceId.Should().Be("https://durabletask.io");
+        workerOptions.AllowInsecureCredentials.Should().BeTrue();
+    }
+
     [Theory]
     [InlineData(null, "testhub")]
     [InlineData("myaccount.westus3.durabletask.io", null)]
@@ -129,7 +155,7 @@ public void UseDurableTaskScheduler_WithInvalidConnectionString_ShouldThrowArgum
 
         // Assert
         action.Should().Throw<ArgumentNullException>()
-            .WithMessage("Value cannot be null. (Parameter 'Endpoint')");
+            .WithMessage("Value cannot be null. (Parameter '*')");
     }
 
     [Theory]