diff --git a/packages/installer/src/installer/getInstallerPackageData.ts b/packages/installer/src/installer/getInstallerPackageData.ts
index 2a99279805..8e496ca430 100644
--- a/packages/installer/src/installer/getInstallerPackageData.ts
+++ b/packages/installer/src/installer/getInstallerPackageData.ts
@@ -98,6 +98,9 @@ function getInstallerPackageData(
   // Persist critical dappmanager env vars and volume paths across updates
   persistDappmanagerSettings(compose, dnpName, isCore);
 
+  // Persist critical core env vars and volume paths across updates
+  persistCoreSettings(compose, dnpName, isCore);
+
   const dockerTimeout = parseTimeoutSeconds(release.manifest.dockerTimeout);
 
   return {
@@ -197,6 +200,85 @@ export function persistDappmanagerSettings(compose: ComposeEditor, dnpName: stri
   }
 }
 
+/**
+ * When updating the core package, certain environment variables and volume
+ * settings from the currently installed dappmanager compose must be propagated.
+ * This ensures:
+ * - DISABLE_HOST_SCRIPTS is present in the core compose environment
+ * - The /usr/src/dappnode/ volume bind mount uses the correct host path from DAPPNODE_CORE_DIR
+ */
+export function persistCoreSettings(compose: ComposeEditor, dnpName: string, _isCore: boolean): void {
+  if (dnpName !== params.coreDnpName) return;
+
+  // Read the currently installed dappmanager compose to get env values
+  let installedDappmanagerCompose: ComposeFileEditor;
+  try {
+    installedDappmanagerCompose = new ComposeFileEditor(params.dappmanagerDnpName, true);
+  } catch (e) {
+    if (!isNotFoundError(e)) throw e;
+    logs.info("No installed dappmanager compose found, skipping core settings persistence");
+    return;
+  }
+
+  const DAPPNODE_CONTAINER_PATH = "/usr/src/dappnode";
+
+  // Collect env values from the installed dappmanager compose services
+  const installedEnvs: Record<string, string> = {};
+  for (const serviceEditor of Object.values(installedDappmanagerCompose.services())) {
+    const envs = serviceEditor.getEnvs();
+    if (envs["DISABLE_HOST_SCRIPTS"] !== undefined && envs["DISABLE_HOST_SCRIPTS"] !== "") {
+      installedEnvs["DISABLE_HOST_SCRIPTS"] = envs["DISABLE_HOST_SCRIPTS"];
+    }
+    if (envs["DAPPNODE_CORE_DIR"] !== undefined && envs["DAPPNODE_CORE_DIR"] !== "") {
+      installedEnvs["DAPPNODE_CORE_DIR"] = envs["DAPPNODE_CORE_DIR"];
+    }
+  }
+
+  if (Object.keys(installedEnvs).length === 0) return;
+
+  logs.info("Persisting core settings from installed dappmanager compose", installedEnvs);
+
+  // Apply persisted envs and volume mapping to new core compose services
+  for (const serviceEditor of Object.values(compose.services())) {
+    // Merge DISABLE_HOST_SCRIPTS into the core compose
+    if (installedEnvs["DISABLE_HOST_SCRIPTS"]) {
+      serviceEditor.mergeEnvs({ DISABLE_HOST_SCRIPTS: installedEnvs["DISABLE_HOST_SCRIPTS"] });
+    }
+
+    // Remove /etc:/etc volume when DISABLE_HOST_SCRIPTS is enabled.
+    // This bind mount is not needed when host scripts are disabled and causes
+    // Docker failures on non-Linux platforms (e.g., macOS) because Docker cannot
+    // create its internal mountpoints (/etc/hostname, /etc/hosts) inside a bind-mounted /etc
+    if (installedEnvs["DISABLE_HOST_SCRIPTS"] === "true") {
+      const service = serviceEditor.get();
+      if (service.volumes) {
+        const volumeMappings = parseVolumeMappings(service.volumes);
+        const filteredVolumes = volumeMappings.filter((vol) => vol.container !== "/etc");
+        if (filteredVolumes.length !== volumeMappings.length) {
+          service.volumes = stringifyVolumeMappings(filteredVolumes);
+        }
+      }
+    }
+
+    // Update the /usr/src/dappnode/ volume host path to match DAPPNODE_CORE_DIR
+    if (installedEnvs["DAPPNODE_CORE_DIR"]) {
+      const dappnodeHostDir = installedEnvs["DAPPNODE_CORE_DIR"];
+      const service = serviceEditor.get();
+      if (service.volumes) {
+        const volumeMappings = parseVolumeMappings(service.volumes);
+        const updatedVolumes = volumeMappings.map((vol) => {
+          // Match the volume whose container side is /usr/src/dappnode/
+          if (vol.container === DAPPNODE_CONTAINER_PATH) {
+            return { ...vol, host: dappnodeHostDir, name: undefined };
+          }
+          return vol;
+        });
+        service.volumes = stringifyVolumeMappings(updatedVolumes);
+      }
+    }
+  }
+}
+
 /**
  * Migrates the user settings from the old service name to the new service name
  *
diff --git a/packages/installer/test/unit/installer/persistCoreSettings.test.ts b/packages/installer/test/unit/installer/persistCoreSettings.test.ts
new file mode 100644
index 0000000000..1bbac581f5
--- /dev/null
+++ b/packages/installer/test/unit/installer/persistCoreSettings.test.ts
@@ -0,0 +1,340 @@
+import "mocha";
+import { expect } from "chai";
+import fs from "fs";
+import path from "path";
+import { ComposeEditor } from "@dappnode/dockercompose";
+import { Compose } from "@dappnode/types";
+import { yamlDump, getDockerComposePath, parseEnvironment } from "@dappnode/utils";
+import { params } from "@dappnode/params";
+import { persistCoreSettings } from "../../../src/installer/getInstallerPackageData.js";
+
+const coreDnpName = params.coreDnpName;
+const dappmanagerDnpName = params.dappmanagerDnpName;
+const isCore = true;
+
+/**
+ * Helper to write the dappmanager installed compose (source of env values)
+ */
+function writeDappmanagerCompose(compose: Compose): string {
+  const composePath = getDockerComposePath(dappmanagerDnpName, isCore);
+  const dir = path.dirname(composePath);
+  if (!fs.existsSync(dir)) fs.mkdirSync(dir, { recursive: true });
+  fs.writeFileSync(composePath, yamlDump(compose));
+  return composePath;
+}
+
+/**
+ * Cleanup the dappmanager installed compose file
+ */
+function removeDappmanagerCompose(): void {
+  const composePath = getDockerComposePath(dappmanagerDnpName, isCore);
+  if (fs.existsSync(composePath)) fs.unlinkSync(composePath);
+}
+
+/**
+ * Build a minimal dappmanager compose
+ */
+function buildDappmanagerCompose(overrides?: { environment?: Record<string, string> | string[] }): Compose {
+  return {
+    version: "3.5",
+    services: {
+      "dappmanager.dnp.dappnode.eth": {
+        image: "dappmanager.dnp.dappnode.eth:0.2.71",
+        container_name: "DAppNodeCore-dappmanager.dnp.dappnode.eth",
+        volumes: ["/usr/src/dappnode/DNCORE:/usr/src/app/DNCORE"],
+        environment: overrides?.environment ?? { LOG_LEVEL: "info" }
+      }
+    },
+    networks: {
+      dncore_network: { external: true }
+    }
+  };
+}
+
+/**
+ * Build a minimal core compose
+ */
+function buildCoreCompose(overrides?: {
+  environment?: Record<string, string> | string[];
+  volumes?: string[];
+}): Compose {
+  return {
+    version: "3.5",
+    services: {
+      "core.dnp.dappnode.eth": {
+        image: "core.dnp.dappnode.eth:0.2.71",
+        container_name: "DAppNodeCore-core.dnp.dappnode.eth",
+        volumes: overrides?.volumes ?? [
+          "/usr/src/dappnode/:/usr/src/dappnode/",
+          "/var/run/docker.sock:/var/run/docker.sock"
+        ],
+        environment: overrides?.environment ?? {
+          LOG_LEVEL: "info"
+        }
+      }
+    },
+    networks: {
+      dncore_network: { external: true }
+    }
+  };
+}
+
+describe("persistCoreSettings", () => {
+  afterEach(() => {
+    removeDappmanagerCompose();
+  });
+
+  it("Should be a no-op for non-core packages", () => {
+    const compose = new ComposeEditor(buildCoreCompose(), { dnpName: coreDnpName });
+    const before = JSON.stringify(compose.compose);
+
+    persistCoreSettings(compose, "other.dnp.dappnode.eth", isCore);
+
+    expect(JSON.stringify(compose.compose)).to.equal(before);
+  });
+
+  it("Should be a no-op when no installed dappmanager compose exists", () => {
+    removeDappmanagerCompose();
+
+    const newCompose = buildCoreCompose();
+    const compose = new ComposeEditor(newCompose, { dnpName: coreDnpName });
+    const before = JSON.stringify(compose.compose);
+
+    persistCoreSettings(compose, coreDnpName, isCore);
+
+    expect(JSON.stringify(compose.compose)).to.equal(before);
+  });
+
+  it("Should persist DISABLE_HOST_SCRIPTS from dappmanager compose to core compose", () => {
+    writeDappmanagerCompose(
+      buildDappmanagerCompose({
+        environment: {
+          LOG_LEVEL: "info",
+          DISABLE_HOST_SCRIPTS: "true"
+        }
+      })
+    );
+
+    const newCompose = buildCoreCompose({
+      environment: { LOG_LEVEL: "info" }
+    });
+    const compose = new ComposeEditor(newCompose, { dnpName: coreDnpName });
+
+    persistCoreSettings(compose, coreDnpName, isCore);
+
+    const service = compose.compose.services["core.dnp.dappnode.eth"];
+    const envs = parseEnvironment(service.environment || []);
+    expect(envs["DISABLE_HOST_SCRIPTS"]).to.equal("true");
+    expect(envs["LOG_LEVEL"]).to.equal("info");
+  });
+
+  it("Should update /usr/src/dappnode/ volume host path to match DAPPNODE_CORE_DIR", () => {
+    const customDir = "/custom/path/dappnode/";
+    writeDappmanagerCompose(
+      buildDappmanagerCompose({
+        environment: {
+          DAPPNODE_CORE_DIR: customDir
+        }
+      })
+    );
+
+    const newCompose = buildCoreCompose({
+      environment: { LOG_LEVEL: "info" },
+      volumes: ["/usr/src/dappnode/:/usr/src/dappnode/", "/var/run/docker.sock:/var/run/docker.sock"]
+    });
+    const compose = new ComposeEditor(newCompose, { dnpName: coreDnpName });
+
+    persistCoreSettings(compose, coreDnpName, isCore);
+
+    const service = compose.compose.services["core.dnp.dappnode.eth"];
+    // host path keeps trailing slash from env, container path is normalized
+    expect(service.volumes).to.include(`/custom/path/dappnode/:/usr/src/dappnode`);
+    expect(service.volumes).to.include("/var/run/docker.sock:/var/run/docker.sock");
+  });
+
+  it("Should persist both DISABLE_HOST_SCRIPTS and update volume path", () => {
+    const customDir = "/custom/path/dappnode/";
+    writeDappmanagerCompose(
+      buildDappmanagerCompose({
+        environment: {
+          LOG_LEVEL: "info",
+          DISABLE_HOST_SCRIPTS: "true",
+          DAPPNODE_CORE_DIR: customDir
+        }
+      })
+    );
+
+    const newCompose = buildCoreCompose({
+      environment: { LOG_LEVEL: "debug" },
+      volumes: ["/usr/src/dappnode/:/usr/src/dappnode/", "/var/run/docker.sock:/var/run/docker.sock"]
+    });
+    const compose = new ComposeEditor(newCompose, { dnpName: coreDnpName });
+
+    persistCoreSettings(compose, coreDnpName, isCore);
+
+    const service = compose.compose.services["core.dnp.dappnode.eth"];
+    const envs = parseEnvironment(service.environment || []);
+    expect(envs["DISABLE_HOST_SCRIPTS"]).to.equal("true");
+    expect(envs["LOG_LEVEL"]).to.equal("debug");
+    // host path keeps trailing slash from env, container path is normalized
+    expect(service.volumes).to.include("/custom/path/dappnode/:/usr/src/dappnode");
+  });
+
+  it("Should not modify volumes when DAPPNODE_CORE_DIR is not set", () => {
+    writeDappmanagerCompose(
+      buildDappmanagerCompose({
+        environment: {
+          DISABLE_HOST_SCRIPTS: "true"
+        }
+      })
+    );
+
+    const volumes = ["/usr/src/dappnode/:/usr/src/dappnode/", "/var/run/docker.sock:/var/run/docker.sock"];
+    const newCompose = buildCoreCompose({
+      environment: { LOG_LEVEL: "info" },
+      volumes
+    });
+    const compose = new ComposeEditor(newCompose, { dnpName: coreDnpName });
+
+    persistCoreSettings(compose, coreDnpName, isCore);
+
+    const service = compose.compose.services["core.dnp.dappnode.eth"];
+    expect(service.volumes).to.include("/usr/src/dappnode/:/usr/src/dappnode/");
+  });
+
+  it("Should be a no-op when dappmanager compose has no relevant envs", () => {
+    writeDappmanagerCompose(
+      buildDappmanagerCompose({
+        environment: {
+          LOG_LEVEL: "info",
+          SOME_OTHER_VAR: "value"
+        }
+      })
+    );
+
+    const newCompose = buildCoreCompose({
+      environment: { LOG_LEVEL: "debug" }
+    });
+    const compose = new ComposeEditor(newCompose, { dnpName: coreDnpName });
+    const envsBefore = parseEnvironment(compose.compose.services["core.dnp.dappnode.eth"].environment || []);
+
+    persistCoreSettings(compose, coreDnpName, isCore);
+
+    const envsAfter = parseEnvironment(compose.compose.services["core.dnp.dappnode.eth"].environment || []);
+    expect(envsAfter).to.deep.equal(envsBefore);
+  });
+
+  it("Should handle dappmanager compose with environment as array format", () => {
+    writeDappmanagerCompose(
+      buildDappmanagerCompose({
+        environment: ["LOG_LEVEL=info", "DISABLE_HOST_SCRIPTS=true", "DAPPNODE_CORE_DIR=/custom/dir/"]
+      })
+    );
+
+    const newCompose = buildCoreCompose({
+      environment: { LOG_LEVEL: "info" }
+    });
+    const compose = new ComposeEditor(newCompose, { dnpName: coreDnpName });
+
+    persistCoreSettings(compose, coreDnpName, isCore);
+
+    const service = compose.compose.services["core.dnp.dappnode.eth"];
+    const envs = parseEnvironment(service.environment || []);
+    expect(envs["DISABLE_HOST_SCRIPTS"]).to.equal("true");
+  });
+
+  it("Should not modify volumes if no volume matches the container path", () => {
+    const customDir = "/custom/path/dappnode/";
+    writeDappmanagerCompose(
+      buildDappmanagerCompose({
+        environment: {
+          DAPPNODE_CORE_DIR: customDir
+        }
+      })
+    );
+
+    const newCompose = buildCoreCompose({
+      environment: { LOG_LEVEL: "info" },
+      volumes: ["/var/run/docker.sock:/var/run/docker.sock"]
+    });
+    const compose = new ComposeEditor(newCompose, { dnpName: coreDnpName });
+
+    persistCoreSettings(compose, coreDnpName, isCore);
+
+    const service = compose.compose.services["core.dnp.dappnode.eth"];
+    expect(service.volumes).to.have.lengthOf(1);
+    expect(service.volumes).to.include("/var/run/docker.sock:/var/run/docker.sock");
+  });
+
+  it("Should add environment section even if core compose has no environment", () => {
+    writeDappmanagerCompose(
+      buildDappmanagerCompose({
+        environment: {
+          DISABLE_HOST_SCRIPTS: "true"
+        }
+      })
+    );
+
+    // Core compose with no environment
+    const newCompose: Compose = {
+      version: "3.5",
+      services: {
+        "core.dnp.dappnode.eth": {
+          image: "core.dnp.dappnode.eth:0.2.71",
+          container_name: "DAppNodeCore-core.dnp.dappnode.eth",
+          volumes: ["/usr/src/dappnode/:/usr/src/dappnode/"]
+        }
+      }
+    };
+    const compose = new ComposeEditor(newCompose, { dnpName: coreDnpName });
+
+    persistCoreSettings(compose, coreDnpName, isCore);
+
+    const service = compose.compose.services["core.dnp.dappnode.eth"];
+    const envs = parseEnvironment(service.environment || []);
+    expect(envs["DISABLE_HOST_SCRIPTS"]).to.equal("true");
+  });
+
+  it("Should remove /etc:/etc volume when DISABLE_HOST_SCRIPTS is true", () => {
+    writeDappmanagerCompose(
+      buildDappmanagerCompose({
+        environment: {
+          DISABLE_HOST_SCRIPTS: "true"
+        }
+      })
+    );
+
+    const newCompose = buildCoreCompose({
+      environment: { LOG_LEVEL: "info" },
+      volumes: ["/etc:/etc", "/usr/src/dappnode/:/usr/src/dappnode/", "/var/run/docker.sock:/var/run/docker.sock"]
+    });
+    const compose = new ComposeEditor(newCompose, { dnpName: coreDnpName });
+
+    persistCoreSettings(compose, coreDnpName, isCore);
+
+    const service = compose.compose.services["core.dnp.dappnode.eth"];
+    expect(service.volumes).to.not.include("/etc:/etc");
+    expect(service.volumes).to.include("/var/run/docker.sock:/var/run/docker.sock");
+  });
+
+  it("Should keep /etc:/etc volume when DISABLE_HOST_SCRIPTS is not set", () => {
+    writeDappmanagerCompose(
+      buildDappmanagerCompose({
+        environment: {
+          DAPPNODE_CORE_DIR: "/custom/path/dappnode/"
+        }
+      })
+    );
+
+    const newCompose = buildCoreCompose({
+      environment: { LOG_LEVEL: "info" },
+      volumes: ["/etc:/etc", "/usr/src/dappnode/:/usr/src/dappnode/", "/var/run/docker.sock:/var/run/docker.sock"]
+    });
+    const compose = new ComposeEditor(newCompose, { dnpName: coreDnpName });
+
+    persistCoreSettings(compose, coreDnpName, isCore);
+
+    const service = compose.compose.services["core.dnp.dappnode.eth"];
+    expect(service.volumes).to.include("/etc:/etc");
+  });
+});