diff --git a/setup-container.sh b/setup-container.sh
index c0f991d35c4..46a983d2824 100755
--- a/setup-container.sh
+++ b/setup-container.sh
@@ -38,6 +38,7 @@ declare -r VERBOSE_MIN="${VERBOSE_ERROR}"
 # Arguments -----------------------------------------------------------------------------------------------------------
 #
 
+ENV_VARS=""
 CONTAINER_NAME=""
 IMAGE_ID=""
 LINK_DIR=""
@@ -96,6 +97,7 @@ function show_help_and_exit() {
     echo "  -n <container_name>  set the name of the Docker container"
     echo
     echo "Other options:"
+    echo "  -e <VAR=value>      set environment variable inside the container (can be used multiple times)"
     echo "  -i <image_id>        specify Docker image to use. This can be an image ID (hashed value) or an image name."
     echo "                       If no value is provided, defaults to the following images in the specified order:"
     echo "                         1. The local image named \"docker-sonic-mgmt\""
@@ -298,7 +300,7 @@ EOF
 function start_local_container() {
     log_info "creating a container: ${CONTAINER_NAME} ..."
 
-    eval "docker run -d -t ${PUBLISH_PORTS} -h ${CONTAINER_NAME} \
+    eval "docker run -d -t ${PUBLISH_PORTS} ${ENV_VARS} -h ${CONTAINER_NAME} \
     -v \"$(dirname "${SCRIPT_DIR}"):${LINK_DIR}:rslave\" ${MOUNT_POINTS} \
     --name \"${CONTAINER_NAME}\" \"${LOCAL_IMAGE}\" /bin/bash ${SILENT_HOOK}" || \
     exit_failure "failed to start a container: ${CONTAINER_NAME}"
@@ -345,11 +347,14 @@ if [[ $# -eq 0 ]]; then
     show_help_and_exit "${EXIT_SUCCESS}"
 fi
 
-while getopts "n:i:d:m:p:fvxh" opt; do
+while getopts "e:n:i:d:m:p:fvxh" opt; do
     case "${opt}" in
         n )
             CONTAINER_NAME="${OPTARG}"
             ;;
+        e )
+            ENV_VARS+=" -e ${OPTARG}"
+            ;;
         i )
             IMAGE_ID="${OPTARG}"
             ;;
diff --git a/tests/common/plugins/conditional_mark/issue.py b/tests/common/plugins/conditional_mark/issue.py
index 44f0fd3482c..f6efdac2cec 100644
--- a/tests/common/plugins/conditional_mark/issue.py
+++ b/tests/common/plugins/conditional_mark/issue.py
@@ -2,11 +2,13 @@
 """
 import logging
 import multiprocessing
+import os
 import re
-import six
-import requests
-
 from abc import ABCMeta, abstractmethod
+from urllib.parse import urlencode
+
+import requests
+import six
 
 logger = logging.getLogger(__name__)
 
@@ -38,28 +40,58 @@ def __init__(self, url, proxies):
         self.proxies = proxies
 
     def is_active(self):
-        """Check if the issue is still active.
+        """Check if the GitHub issue is still active.
 
-        If unable to get issue state, always consider it as active.
+        Attempt to fetch issue details via proxy if configured. If proxy fails, retry with direct GitHub API URL.
+        If unable to retrieve issue state, assume the issue is active (safe default).
 
         Returns:
             bool: False if the issue is closed else True.
         """
-        try:
-            response = requests.get(self.api_url, proxies=self.proxies, timeout=10)
+
+        def fetch_issue(url):
+            response = requests.get(url, proxies=self.proxies, timeout=10)
             response.raise_for_status()
-            issue_data = response.json()
-            if issue_data.get('state', '') == 'closed':
-                logger.debug('Issue {} is closed'.format(self.url))
-                labels = issue_data.get('labels', [])
-                if any(['name' in label and 'duplicate' in label['name'].lower() for label in labels]):
-                    logger.warning('GitHub issue: {} looks like duplicate and was closed. Please re-check and ignore'
-                                   'the test on the parent issue'.format(self.url))
-                return False
-        except Exception as e:
-            logger.error('Get details for {} failed with: {}'.format(self.url, repr(e)))
-
-        logger.debug('Issue {} is active. Or getting issue state failed, consider it as active anyway'.format(self.url))
+            return response.json()
+
+        direct_url = self.api_url
+        proxy_url = os.getenv("SONIC_AUTOMATION_PROXY_GITHUB_ISSUES_URL")
+
+        issue_data = None
+
+        # Attempt to access via proxy first (if configured)
+        # The proxy is used to work around GitHub's unauthenticated rate limit (60 requests/hour per IP).
+        # For details, refer to GitHub API rate limits documentation:
+        # https://docs.github.com/en/rest/using-the-rest-api/rate-limits-for-the-rest-api?apiVersion=2022-11-28#primary-rate-limit-for-unauthenticated-users
+        if proxy_url:
+            try:
+                proxy_endpoint = f"{proxy_url.rstrip('/')}/?{urlencode({'github_issue_url': direct_url})}"
+                logger.info("Attempting to access GitHub API via proxy.")
+                issue_data = fetch_issue(proxy_endpoint)
+            except Exception as proxy_err:
+                logger.warning(f"Proxy access failed: {proxy_err}. Falling back to direct API.")
+
+        # Fallback to direct URL if proxy is not set or fails
+        if issue_data is None:
+            try:
+                logger.info(f"Accessing GitHub API directly: {direct_url}")
+                issue_data = fetch_issue(direct_url)
+            except Exception as direct_err:
+                logger.error(f"Access GitHub API directly failed for {direct_url}: {direct_err}")
+                logger.debug(f"Issue {direct_url} is considered active due to API access failure.")
+                return True
+
+        # Check issue state
+        if issue_data.get('state') == 'closed':
+            logger.debug(f"Issue {direct_url} is closed.")
+            labels = issue_data.get('labels', [])
+            if any('name' in label and 'duplicate' in label['name'].lower() for label in labels):
+                logger.warning(
+                    f"GitHub issue {direct_url} appears to be a duplicate and was closed. "
+                    f"Consider ignoring related test failures.")
+            return False
+
+        logger.debug(f"Issue {direct_url} is active.")
         return True