diff --git a/.changeset/breezy-coins-camp.md b/.changeset/breezy-coins-camp.md
new file mode 100644
index 00000000000..717ef96b31b
--- /dev/null
+++ b/.changeset/breezy-coins-camp.md
@@ -0,0 +1,15 @@
+---
+'@sap-ux/axios-extension': minor
+'@sap-ux/store': minor
+'@sap-ux/abap-deploy-config-sub-generator': patch
+'@sap-ux/abap-deploy-config-inquirer': patch
+'@sap-ux/backend-proxy-middleware': patch
+'@sap-ux/fiori-app-sub-generator': patch
+'@sap-ux/fiori-generator-shared': patch
+'@sap-ux/odata-service-inquirer': patch
+'@sap-ux/feature-toggle': patch
+'@sap-ux/system-access': patch
+'@sap-ux/telemetry': patch
+---
+
+Connections to Abap cloud will always use re-entrance tickets instead of UAA/OAuth2
diff --git a/packages/abap-deploy-config-inquirer/src/prompts/conditions.ts b/packages/abap-deploy-config-inquirer/src/prompts/conditions.ts
index da90d61f2c3..120cb924923 100644
--- a/packages/abap-deploy-config-inquirer/src/prompts/conditions.ts
+++ b/packages/abap-deploy-config-inquirer/src/prompts/conditions.ts
@@ -60,7 +60,7 @@ export function showScpQuestion(previousAnswers: AbapDeployConfigAnswersInternal
  */
 function showClientCondition(scp?: boolean): boolean {
     return Boolean(
-        !isAppStudio() && !PromptState.abapDeployConfig?.isS4HC && !scp && !PromptState.abapDeployConfig?.scp
+        !isAppStudio() && !PromptState.abapDeployConfig?.isAbapCloud && !scp && !PromptState.abapDeployConfig?.scp
     );
 }
 
@@ -142,7 +142,7 @@ export function showUi5AppDeployConfigQuestion(ui5AbapPromptOptions?: UI5AbapRep
         !ui5AbapPromptOptions?.hide &&
         ui5AbapPromptOptions?.hideIfOnPremise &&
         !PromptState.abapDeployConfig?.scp &&
-        !PromptState.abapDeployConfig?.isS4HC
+        !PromptState.abapDeployConfig?.isAbapCloud
     ) {
         return false;
     }
@@ -238,7 +238,7 @@ function defaultOrShowTransportQuestion(): boolean {
 export function showTransportInputChoice(options?: TransportInputChoicePromptOptions): boolean {
     if (
         options?.hideIfOnPremise === true &&
-        !PromptState.abapDeployConfig?.isS4HC &&
+        !PromptState.abapDeployConfig?.isAbapCloud &&
         !PromptState.abapDeployConfig?.scp
     ) {
         return false;
@@ -276,7 +276,7 @@ export function defaultOrShowTransportListQuestion(
     return (
         transportInputChoice === TransportChoices.ListExistingChoice &&
         !isTransportListEmpty(PromptState.transportAnswers.transportList) &&
-        !(transportInputChoiceOptions?.hideIfOnPremise === true && PromptState?.abapDeployConfig?.isS4HC === false)
+        !(transportInputChoiceOptions?.hideIfOnPremise === true && PromptState?.abapDeployConfig?.isAbapCloud === false)
     );
 }
 
@@ -311,7 +311,8 @@ export function defaultOrShowManualTransportQuestion(
     return (
         defaultOrShowTransportQuestion() &&
         (transportInputChoice === TransportChoices.EnterManualChoice ||
-            (transportInputChoiceOptions?.hideIfOnPremise === true && PromptState?.abapDeployConfig?.isS4HC === false))
+            (transportInputChoiceOptions?.hideIfOnPremise === true &&
+                PromptState?.abapDeployConfig?.isAbapCloud === false))
     );
 }
 
diff --git a/packages/abap-deploy-config-inquirer/src/prompts/helpers.ts b/packages/abap-deploy-config-inquirer/src/prompts/helpers.ts
index da1d3d04279..ecdfd06e0d8 100644
--- a/packages/abap-deploy-config-inquirer/src/prompts/helpers.ts
+++ b/packages/abap-deploy-config-inquirer/src/prompts/helpers.ts
@@ -17,7 +17,7 @@ import {
 } from '../types';
 import { AuthenticationType, type BackendSystem } from '@sap-ux/store';
 import type { ChoiceOptions, ListChoiceOptions } from 'inquirer';
-import { getSystemDisplayName } from '@sap-ux/fiori-generator-shared';
+import { getBackendSystemDisplayName, getSystemDisplayName } from '@sap-ux/fiori-generator-shared';
 import type { AbapServiceProvider } from '@sap-ux/axios-extension';
 
 /**
@@ -40,32 +40,6 @@ function getDestinationChoices(destinations: Destinations = {}): AbapSystemChoic
     return systemChoices;
 }
 
-/**
- * Returns the display name for the backend system.
- *
- * @param options options for display name
- * @param options.backendSystem backend system
- * @param options.includeUserName include user name in the display name
- * @returns backend display name
- */
-function getBackendDisplayName({
-    backendSystem,
-    includeUserName = true
-}: {
-    backendSystem: BackendSystem;
-    includeUserName?: boolean;
-}): string {
-    const userDisplayName = includeUserName && backendSystem.userDisplayName ? `${backendSystem.userDisplayName}` : '';
-    const systemDisplayName = getSystemDisplayName(
-        backendSystem.name,
-        userDisplayName,
-        !!backendSystem.serviceKeys,
-        backendSystem.authenticationType === AuthenticationType.ReentranceTicket
-    );
-
-    return systemDisplayName;
-}
-
 /**
  * Returns a list of backend system choices.
  *
@@ -102,12 +76,12 @@ async function getBackendTargetChoices(
             }
             return {
                 name: isDefault
-                    ? `${getBackendDisplayName({ backendSystem: system })} (Source system)`
-                    : getBackendDisplayName({ backendSystem: system }) ?? '',
+                    ? `${getBackendSystemDisplayName(system)} (Source system)`
+                    : getBackendSystemDisplayName(system) ?? '',
                 value: system.url,
                 isDefault,
-                scp: !!system.serviceKeys,
-                isS4HC: system.authenticationType === AuthenticationType.ReentranceTicket,
+                scp: !!system.serviceKeys, // legacy service key store entries
+                isAbapCloud: system.authenticationType === AuthenticationType.ReentranceTicket,
                 client: system.client
             };
         });
@@ -123,13 +97,14 @@ async function getBackendTargetChoices(
             name: `${getSystemDisplayName(
                 systemName,
                 user,
-                target.scp,
-                target.authenticationType === AuthenticationType.ReentranceTicket
+                target.scp || target.authenticationType === AuthenticationType.ReentranceTicket
+                    ? 'ABAPCloud'
+                    : undefined // scp is retained for legacy apps yamls that contain this value
             )} (Source system)`,
             value: target.url,
             isDefault: true,
             scp: target.scp,
-            isS4HC: target.authenticationType === AuthenticationType.ReentranceTicket,
+            isAbapCloud: target.authenticationType === AuthenticationType.ReentranceTicket,
             client: target.client
         });
     }
diff --git a/packages/abap-deploy-config-inquirer/src/prompts/validators.ts b/packages/abap-deploy-config-inquirer/src/prompts/validators.ts
index 620feb434ec..b82fb3467d0 100644
--- a/packages/abap-deploy-config-inquirer/src/prompts/validators.ts
+++ b/packages/abap-deploy-config-inquirer/src/prompts/validators.ts
@@ -50,7 +50,7 @@ const allowedPackagePrefixes = ['$', 'Z', 'Y', 'SAP'];
 async function validateSystemType(options?: TargetSystemPromptOptions): Promise<boolean | string> {
     if (options?.additionalValidation?.shouldRestrictDifferentSystemType) {
         const isDefaultProviderAbapCloud = AbapServiceProviderManager.getIsDefaultProviderAbapCloud();
-        const isSelectedS4HC = PromptState?.abapDeployConfig?.isS4HC;
+        const isSelectedS4HC = PromptState?.abapDeployConfig?.isAbapCloud;
         if (isDefaultProviderAbapCloud === true && isSelectedS4HC === false) {
             return t('errors.validators.invalidCloudSystem');
         } else if (isDefaultProviderAbapCloud === false && isSelectedS4HC) {
@@ -90,26 +90,26 @@ export async function validateDestinationQuestion(
  * @param props - properties to update
  * @param props.url - url
  * @param props.client - client
- * @param props.isS4HC - is S/4HANA Cloud
+ * @param props.isAbapCloud - Cloud based Abap (either Steampunk or Embedded Steampunk)
  * @param props.scp - is SCP
  * @param props.target - target system
  */
 function updatePromptState({
     url,
     client,
-    isS4HC,
+    isAbapCloud,
     scp,
     target
 }: {
     url: string;
     client?: string;
-    isS4HC?: boolean;
+    isAbapCloud?: boolean;
     scp?: boolean;
     target?: string;
 }): void {
     PromptState.abapDeployConfig.url = url;
     PromptState.abapDeployConfig.client = client;
-    PromptState.abapDeployConfig.isS4HC = isS4HC;
+    PromptState.abapDeployConfig.isAbapCloud = isAbapCloud;
     PromptState.abapDeployConfig.scp = scp;
     PromptState.abapDeployConfig.targetSystem = target;
 }
@@ -134,13 +134,12 @@ export async function updateDestinationPromptState(
         updatePromptState({
             url: dest?.Host,
             client: dest['sap-client'],
-            isS4HC: isS4HC(dest),
+            isAbapCloud: isS4HC(dest),
             scp: isAbapEnvironmentOnBtp(dest)
         });
 
         if (options?.additionalValidation?.shouldRestrictDifferentSystemType) {
-            const isS4HCloud = await isAbapCloud(backendTarget);
-            PromptState.abapDeployConfig.isS4HC = isS4HCloud ?? false;
+            PromptState.abapDeployConfig.isAbapCloud = (await isAbapCloud(backendTarget)) ?? false;
         }
     }
 }
@@ -171,7 +170,7 @@ export async function validateTargetSystem(
                 url: choice.value,
                 client: choice.client ?? '',
                 scp: choice.scp,
-                isS4HC: choice.isS4HC,
+                isAbapCloud: choice.isAbapCloud,
                 target: target
             });
         }
@@ -202,7 +201,7 @@ export function validateUrl(input: string): boolean | string {
             url: input.trim(),
             client: backendSystem?.client,
             scp: !!backendSystem?.serviceKeys,
-            isS4HC: backendSystem?.authenticationType === AuthenticationType.ReentranceTicket
+            isAbapCloud: backendSystem?.authenticationType === AuthenticationType.ReentranceTicket
         });
     } else {
         return t('errors.invalidUrl', { url: input?.trim() });
@@ -305,8 +304,7 @@ export async function validateCredentials(
     });
 
     if (isAppStudio() && shouldCheckSystemType) {
-        const isS4HCloud = await isAbapCloud(backendTarget);
-        PromptState.abapDeployConfig.isS4HC = isS4HCloud ?? false;
+        PromptState.abapDeployConfig.isAbapCloud = (await isAbapCloud(backendTarget)) ?? false;
     }
 
     PromptState.transportAnswers.transportConfigNeedsCreds = transportConfigNeedsCreds ?? false;
@@ -646,8 +644,8 @@ export function validateConfirmQuestion(overwrite: boolean): boolean {
  * @returns {Promise<boolean>} - Resolves to `true` if the package is cloud-ready, `false` otherwise.
  */
 async function validatePackageType(input: string, backendTarget?: BackendTarget): Promise<boolean | string> {
-    const isS4HC = PromptState?.abapDeployConfig?.isS4HC;
-    if (!isS4HC) {
+    const isAbapCloud = PromptState?.abapDeployConfig?.isAbapCloud;
+    if (!isAbapCloud) {
         LoggerHelper.logger.debug(`System is OnPremise, skipping package "${input}" type validation`);
         return true;
     }
@@ -819,7 +817,7 @@ function shouldValidatePackageForStartingPrefix(
         !ui5AbapPromptOptions?.hide &&
         !(
             ui5AbapPromptOptions?.hideIfOnPremise === true &&
-            PromptState.abapDeployConfig?.isS4HC === false &&
+            PromptState.abapDeployConfig?.isAbapCloud === false &&
             PromptState.abapDeployConfig?.scp === false
         )
     );
diff --git a/packages/abap-deploy-config-inquirer/src/service-provider-utils/abap-service-provider.ts b/packages/abap-deploy-config-inquirer/src/service-provider-utils/abap-service-provider.ts
index 7390f5f6bf5..cad0d807afe 100644
--- a/packages/abap-deploy-config-inquirer/src/service-provider-utils/abap-service-provider.ts
+++ b/packages/abap-deploy-config-inquirer/src/service-provider-utils/abap-service-provider.ts
@@ -169,7 +169,7 @@ export class AbapServiceProviderManager {
             } as UrlAbapTarget;
 
             if (
-                PromptState.abapDeployConfig.isS4HC ??
+                PromptState.abapDeployConfig.isAbapCloud ??
                 backendTarget?.abapTarget.authenticationType === AuthenticationType.ReentranceTicket
             ) {
                 abapTarget.authenticationType = AuthenticationType.ReentranceTicket;
diff --git a/packages/abap-deploy-config-inquirer/src/types.ts b/packages/abap-deploy-config-inquirer/src/types.ts
index b4cc108b656..82e37033f93 100644
--- a/packages/abap-deploy-config-inquirer/src/types.ts
+++ b/packages/abap-deploy-config-inquirer/src/types.ts
@@ -46,7 +46,7 @@ export interface AbapSystemChoice {
     url?: string;
     client?: string;
     isDefault?: boolean;
-    isS4HC?: boolean;
+    isAbapCloud?: boolean;
 }
 
 /**
@@ -255,7 +255,7 @@ export interface AbapDeployConfigAnswers {
 export interface AbapDeployConfigAnswersInternal extends AbapDeployConfigAnswers {
     clientChoice?: string;
     username?: string;
-    isS4HC?: boolean;
+    isAbapCloud?: boolean;
     packageInputChoice?: PackageInputChoices;
     packageManual?: string;
     packageAutocomplete?: string;
diff --git a/packages/abap-deploy-config-inquirer/test/fixtures/targets.ts b/packages/abap-deploy-config-inquirer/test/fixtures/targets.ts
index 660a8e8947c..53dedbc1393 100644
--- a/packages/abap-deploy-config-inquirer/test/fixtures/targets.ts
+++ b/packages/abap-deploy-config-inquirer/test/fixtures/targets.ts
@@ -1,4 +1,4 @@
-import { AuthenticationType } from '@sap-ux/store';
+import { AuthenticationType, BackendSystem } from '@sap-ux/store';
 
 export const mockTargetSystems = [
     {
@@ -12,7 +12,8 @@ export const mockTargetSystems = [
         url: 'https://mock.url.target2.com',
         client: '102',
         userDisplayName: 'mockUser2',
-        authenticationType: AuthenticationType.ReentranceTicket
+        authenticationType: AuthenticationType.ReentranceTicket,
+        systemType: 'ABAPCloud'
     },
     {
         name: 'target3',
diff --git a/packages/abap-deploy-config-inquirer/test/prompts/conditions.test.ts b/packages/abap-deploy-config-inquirer/test/prompts/conditions.test.ts
index ce5f7bdfdfb..d64c1ab38d5 100644
--- a/packages/abap-deploy-config-inquirer/test/prompts/conditions.test.ts
+++ b/packages/abap-deploy-config-inquirer/test/prompts/conditions.test.ts
@@ -69,20 +69,20 @@ describe('Test abap deploy config inquirer conditions', () => {
     test('should show client choice question', () => {
         mockIsAppStudio.mockReturnValueOnce(false);
         PromptState.isYUI = false;
-        PromptState.abapDeployConfig.isS4HC = false;
+        PromptState.abapDeployConfig.isAbapCloud = false;
         expect(
             showClientChoiceQuestion({ scp: false, targetSystem: TargetSystemType.Url, url: '', package: '' }, '100')
         ).toBe(true);
         PromptState.resetAbapDeployConfig();
         // Should not show client choice question if SCP is enabled
-        PromptState.abapDeployConfig.isS4HC = false;
+        PromptState.abapDeployConfig.isAbapCloud = false;
         PromptState.abapDeployConfig.scp = true;
         expect(
             showClientChoiceQuestion({ scp: false, targetSystem: TargetSystemType.Url, url: '', package: '' }, '100')
         ).toBe(false);
         PromptState.resetAbapDeployConfig();
         // Should not show client choice question if target system is not a URL
-        PromptState.abapDeployConfig.isS4HC = false;
+        PromptState.abapDeployConfig.isAbapCloud = false;
         PromptState.abapDeployConfig.scp = true;
         expect(showClientChoiceQuestion({ scp: true, url: '', package: '' }, '100')).toBe(false);
         PromptState.resetAbapDeployConfig();
@@ -91,7 +91,7 @@ describe('Test abap deploy config inquirer conditions', () => {
     test('should not show client choice question', () => {
         mockIsAppStudio.mockReturnValueOnce(false);
         PromptState.isYUI = false;
-        PromptState.abapDeployConfig.isS4HC = true;
+        PromptState.abapDeployConfig.isAbapCloud = true;
         expect(
             showClientChoiceQuestion({ scp: true, targetSystem: TargetSystemType.Url, url: '', package: '' }, undefined)
         ).toBe(false);
@@ -114,14 +114,14 @@ describe('Test abap deploy config inquirer conditions', () => {
             PromptState.isYUI = isYui;
             mockIsAppStudio.mockReturnValueOnce(false);
             // Validate client question if SCP is enabled
-            PromptState.abapDeployConfig.isS4HC = false;
+            PromptState.abapDeployConfig.isAbapCloud = false;
             expect(showClientQuestion({ scp: true, targetSystem: TargetSystemType.Url, url: '', package: '' })).toBe(
                 scpEnabled
             );
             PromptState.resetAbapDeployConfig();
             // Validate client question if SCP is disabled
             PromptState.abapDeployConfig.client = '100';
-            PromptState.abapDeployConfig.isS4HC = false;
+            PromptState.abapDeployConfig.isAbapCloud = false;
             expect(
                 showClientQuestion({
                     scp: false,
@@ -190,7 +190,7 @@ describe('Test abap deploy config inquirer conditions', () => {
         };
         PromptState.abapDeployConfig.scp = false;
         expect(showUi5AppDeployConfigQuestion(promptOptions)).toBe(false);
-        PromptState.abapDeployConfig.isS4HC = false;
+        PromptState.abapDeployConfig.isAbapCloud = false;
         expect(showUi5AppDeployConfigQuestion(promptOptions)).toBe(false);
     });
 
@@ -237,7 +237,7 @@ describe('Test abap deploy config inquirer conditions', () => {
 
     test('should not show transport input choice question for onPremise systems', () => {
         PromptState.transportAnswers.transportRequired = false;
-        PromptState.abapDeployConfig.isS4HC = false;
+        PromptState.abapDeployConfig.isAbapCloud = false;
         PromptState.abapDeployConfig.scp = false;
         expect(showTransportInputChoice({ hideIfOnPremise: true })).toBe(false);
     });
@@ -267,7 +267,7 @@ describe('Test abap deploy config inquirer conditions', () => {
     });
 
     test('should not show transport list question', () => {
-        PromptState.abapDeployConfig.isS4HC = false;
+        PromptState.abapDeployConfig.isAbapCloud = false;
         PromptState.transportAnswers.transportList = [
             { transportReqNumber: 'K123456', transportReqDescription: 'Mock transport' }
         ];
@@ -303,7 +303,7 @@ describe('Test abap deploy config inquirer conditions', () => {
     });
 
     test('should show manual transport question when transportInput choice is not provided and transportInputChoice is hidden', () => {
-        PromptState.abapDeployConfig.isS4HC = false;
+        PromptState.abapDeployConfig.isAbapCloud = false;
         expect(defaultOrShowManualTransportQuestion(undefined, { hideIfOnPremise: true })).toBe(true);
     });
 
diff --git a/packages/abap-deploy-config-inquirer/test/prompts/helpers.test.ts b/packages/abap-deploy-config-inquirer/test/prompts/helpers.test.ts
index 702cd069514..1cd527b0d34 100644
--- a/packages/abap-deploy-config-inquirer/test/prompts/helpers.test.ts
+++ b/packages/abap-deploy-config-inquirer/test/prompts/helpers.test.ts
@@ -1,6 +1,7 @@
 import { initI18n, t } from '../../src/i18n';
 import { getAbapSystemChoices, getPackageChoices, updatePromptStateUrl } from '../../src/prompts/helpers';
 import { PromptState } from '../../src/prompts/prompt-state';
+import type { BackendTarget } from '../../src/types';
 import { queryPackages } from '../../src/utils';
 import { mockDestinations } from '../fixtures/destinations';
 import { mockTargetSystems } from '../fixtures/targets';
@@ -21,7 +22,7 @@ describe('helpers', () => {
             const mockServiceProvider = {
                 user: () => 'mockUser2'
             } as any;
-            const backendTarget = {
+            const backendTarget: BackendTarget = {
                 serviceProvider: mockServiceProvider,
                 abapTarget: mockTargetSystems[1]
             };
@@ -34,32 +35,32 @@ describe('helpers', () => {
                   },
                   Object {
                     "client": "100",
+                    "isAbapCloud": false,
                     "isDefault": false,
-                    "isS4HC": false,
                     "name": "target1 [mockUser]",
                     "scp": false,
                     "value": "https://mock.url.target1.com",
                   },
                   Object {
                     "client": "102",
+                    "isAbapCloud": true,
                     "isDefault": true,
-                    "isS4HC": true,
-                    "name": "target2 (S4HC) [mockUser2] (Source system)",
+                    "name": "target2 (ABAP Cloud) [mockUser2] (Source system)",
                     "scp": false,
                     "value": "https://mock.url.target2.com",
                   },
                   Object {
                     "client": "103",
+                    "isAbapCloud": false,
                     "isDefault": false,
-                    "isS4HC": false,
                     "name": "target3 [mockUser3]",
                     "scp": false,
                     "value": "https://mock.url.target3.com",
                   },
                   Object {
                     "client": "104",
+                    "isAbapCloud": false,
                     "isDefault": false,
-                    "isS4HC": false,
                     "name": "target4 [mockUser4]",
                     "scp": false,
                     "value": "https://mock.url.target4.com",
@@ -93,40 +94,40 @@ describe('helpers', () => {
                   },
                   Object {
                     "client": "100",
+                    "isAbapCloud": false,
                     "isDefault": true,
-                    "isS4HC": false,
                     "name": "New System [mockUser] (Source system)",
                     "scp": undefined,
                     "value": "https://mock.url.new.target.com",
                   },
                   Object {
                     "client": "100",
+                    "isAbapCloud": false,
                     "isDefault": false,
-                    "isS4HC": false,
                     "name": "target1 [mockUser]",
                     "scp": false,
                     "value": "https://mock.url.target1.com",
                   },
                   Object {
                     "client": "102",
+                    "isAbapCloud": true,
                     "isDefault": false,
-                    "isS4HC": true,
-                    "name": "target2 (S4HC) [mockUser2]",
+                    "name": "target2 (ABAP Cloud) [mockUser2]",
                     "scp": false,
                     "value": "https://mock.url.target2.com",
                   },
                   Object {
                     "client": "103",
+                    "isAbapCloud": false,
                     "isDefault": false,
-                    "isS4HC": false,
                     "name": "target3 [mockUser3]",
                     "scp": false,
                     "value": "https://mock.url.target3.com",
                   },
                   Object {
                     "client": "104",
+                    "isAbapCloud": false,
                     "isDefault": false,
-                    "isS4HC": false,
                     "name": "target4 [mockUser4]",
                     "scp": false,
                     "value": "https://mock.url.target4.com",
@@ -145,32 +146,32 @@ describe('helpers', () => {
                   },
                   Object {
                     "client": "100",
+                    "isAbapCloud": false,
                     "isDefault": false,
-                    "isS4HC": false,
                     "name": "target1 [mockUser]",
                     "scp": false,
                     "value": "https://mock.url.target1.com",
                   },
                   Object {
                     "client": "102",
+                    "isAbapCloud": true,
                     "isDefault": false,
-                    "isS4HC": true,
-                    "name": "target2 (S4HC) [mockUser2]",
+                    "name": "target2 (ABAP Cloud) [mockUser2]",
                     "scp": false,
                     "value": "https://mock.url.target2.com",
                   },
                   Object {
                     "client": "103",
+                    "isAbapCloud": false,
                     "isDefault": false,
-                    "isS4HC": false,
                     "name": "target3 [mockUser3]",
                     "scp": false,
                     "value": "https://mock.url.target3.com",
                   },
                   Object {
                     "client": "104",
+                    "isAbapCloud": false,
                     "isDefault": false,
-                    "isS4HC": false,
                     "name": "target4 [mockUser4]",
                     "scp": false,
                     "value": "https://mock.url.target4.com",
diff --git a/packages/abap-deploy-config-inquirer/test/prompts/questions/abap-target.test.ts b/packages/abap-deploy-config-inquirer/test/prompts/questions/abap-target.test.ts
index 4f7fbb6b260..61cb21f3938 100644
--- a/packages/abap-deploy-config-inquirer/test/prompts/questions/abap-target.test.ts
+++ b/packages/abap-deploy-config-inquirer/test/prompts/questions/abap-target.test.ts
@@ -229,32 +229,32 @@ describe('getAbapTargetPrompts', () => {
                   },
                   Object {
                     "client": "100",
+                    "isAbapCloud": false,
                     "isDefault": false,
-                    "isS4HC": false,
                     "name": "target1 [mockUser]",
                     "scp": false,
                     "value": "https://mock.url.target1.com",
                   },
                   Object {
                     "client": "102",
+                    "isAbapCloud": true,
                     "isDefault": false,
-                    "isS4HC": true,
-                    "name": "target2 (S4HC) [mockUser2]",
+                    "name": "target2 (ABAP Cloud) [mockUser2]",
                     "scp": false,
                     "value": "https://mock.url.target2.com",
                   },
                   Object {
                     "client": "103",
+                    "isAbapCloud": false,
                     "isDefault": false,
-                    "isS4HC": false,
                     "name": "target3 [mockUser3]",
                     "scp": false,
                     "value": "https://mock.url.target3.com",
                   },
                   Object {
                     "client": "104",
+                    "isAbapCloud": false,
                     "isDefault": false,
-                    "isS4HC": false,
                     "name": "target4 [mockUser4]",
                     "scp": false,
                     "value": "https://mock.url.target4.com",
diff --git a/packages/abap-deploy-config-inquirer/test/prompts/validators.test.ts b/packages/abap-deploy-config-inquirer/test/prompts/validators.test.ts
index c5461e9c4fb..b993526c0cc 100644
--- a/packages/abap-deploy-config-inquirer/test/prompts/validators.test.ts
+++ b/packages/abap-deploy-config-inquirer/test/prompts/validators.test.ts
@@ -24,6 +24,7 @@ import {
 } from '../../src/prompts/validators';
 import * as serviceProviderUtils from '../../src/service-provider-utils';
 import { AbapServiceProviderManager } from '../../src/service-provider-utils/abap-service-provider';
+import type { AbapSystemChoice } from '../../src/types';
 import { ClientChoiceValue, PackageInputChoices, TargetSystemType, TransportChoices } from '../../src/types';
 import * as utils from '../../src/utils';
 import * as validatorUtils from '../../src/validator-utils';
@@ -54,6 +55,12 @@ describe('Test validators', () => {
     beforeAll(async () => {
         await initI18n();
     });
+
+    beforeEach(() => {
+        // reset propmt state for test isolation
+        PromptState.abapDeployConfig = {};
+    });
+
     describe('validateDestinationQuestion', () => {
         it('should return true for valid destination', async () => {
             const result = await validateDestinationQuestion('Dest2', mockDestinations);
@@ -91,19 +98,19 @@ describe('Test validators', () => {
     });
 
     describe('validateTargetSystem', () => {
-        const abapSystemChoices = [
+        const abapSystemChoices: AbapSystemChoice[] = [
             {
                 name: 'Target1',
                 value: 'https://mock.url.target1.com',
                 client: '001',
-                isS4HC: false,
+                isAbapCloud: false,
                 scp: false
             },
             {
                 name: 'Target2',
                 value: 'https://mock.url.target2.com',
                 client: '002',
-                isS4HC: true,
+                isAbapCloud: true,
                 scp: false
             }
         ];
@@ -118,8 +125,7 @@ describe('Test validators', () => {
             expect(PromptState.abapDeployConfig).toStrictEqual({
                 url: 'https://mock.url.target1.com',
                 client: '001',
-                destination: undefined,
-                isS4HC: false,
+                isAbapCloud: false,
                 scp: false,
                 targetSystem: 'https://mock.url.target1.com'
             });
@@ -163,8 +169,7 @@ describe('Test validators', () => {
             expect(PromptState.abapDeployConfig).toStrictEqual({
                 url: 'https://mock.url.target1.com',
                 client: '001',
-                destination: undefined,
-                isS4HC: true,
+                isAbapCloud: true,
                 scp: true,
                 targetSystem: undefined
             });
@@ -176,11 +181,10 @@ describe('Test validators', () => {
             expect(result).toBe(true);
             expect(PromptState.abapDeployConfig).toStrictEqual({
                 url: 'https://mock.notfound.url.target1.com',
-                client: undefined,
-                destination: undefined,
-                isS4HC: false,
+                isAbapCloud: false,
                 scp: false,
-                targetSystem: undefined
+                targetSystem: undefined,
+                client: undefined
             });
         });
 
@@ -307,7 +311,7 @@ describe('Test validators', () => {
             expect(result).toBe(true);
             expect(mockIsAppStudio).toHaveBeenCalled();
             expect(serviceProviderUtils.isAbapCloud).toHaveBeenCalled();
-            expect(PromptState.abapDeployConfig.isS4HC).toBe(true);
+            expect(PromptState.abapDeployConfig.isAbapCloud).toBe(true);
         });
 
         it('should not check system type when shouldCheckSystemType is false', async () => {
@@ -449,7 +453,7 @@ describe('Test validators', () => {
         });
 
         it('should return true for onPremise system', async () => {
-            PromptState.abapDeployConfig.isS4HC = false;
+            PromptState.abapDeployConfig.isAbapCloud = false;
             const getSystemInfoSpy = jest.spyOn(serviceProviderUtils, 'getSystemInfo');
             const result = await validatePackage('ZPACKAGE', previousAnswers, {
                 additionalValidation: { shouldValidatePackageType: true }
@@ -480,7 +484,7 @@ describe('Test validators', () => {
         });
 
         it('should return error for invalid starting prefix', async () => {
-            PromptState.abapDeployConfig.isS4HC = false;
+            PromptState.abapDeployConfig.isAbapCloud = false;
             PromptState.abapDeployConfig.scp = true;
             const result = await validatePackage(
                 'namespace',
@@ -499,7 +503,7 @@ describe('Test validators', () => {
         });
 
         it('should return error for invalid ui5Repo starting prefix', async () => {
-            PromptState.abapDeployConfig.isS4HC = true;
+            PromptState.abapDeployConfig.isAbapCloud = true;
             PromptState.abapDeployConfig.scp = false;
             const result = await validatePackage(
                 'ZPACKAGE',
@@ -518,7 +522,7 @@ describe('Test validators', () => {
         });
 
         it('should return error for invalid ui5Repo starting prefix package starting with namespace', async () => {
-            PromptState.abapDeployConfig.isS4HC = true;
+            PromptState.abapDeployConfig.isAbapCloud = true;
             PromptState.abapDeployConfig.scp = false;
             const result = await validatePackage(
                 '/NAMESPACE/ZPACKAGE',
@@ -544,7 +548,7 @@ describe('Test validators', () => {
                     activeLanguages: []
                 }
             });
-            PromptState.abapDeployConfig.isS4HC = true;
+            PromptState.abapDeployConfig.isAbapCloud = true;
             const result = await validatePackage('ZPACKAGE', previousAnswers, {
                 additionalValidation: { shouldValidatePackageType: true }
             });
diff --git a/packages/abap-deploy-config-inquirer/test/service-provider-utils/abap-service-provider.test.ts b/packages/abap-deploy-config-inquirer/test/service-provider-utils/abap-service-provider.test.ts
index f49d3088adc..704959d60dd 100644
--- a/packages/abap-deploy-config-inquirer/test/service-provider-utils/abap-service-provider.test.ts
+++ b/packages/abap-deploy-config-inquirer/test/service-provider-utils/abap-service-provider.test.ts
@@ -44,7 +44,7 @@ describe('getOrCreateServiceProvider', () => {
             url: 'http://target.url',
             client: '100',
             scp: false,
-            isS4HC: true
+            isAbapCloud: true
         };
 
         const credentials = {
@@ -119,7 +119,7 @@ describe('getOrCreateServiceProvider', () => {
             url: 'http://target.url',
             client: '100',
             scp: false,
-            isS4HC: true
+            isAbapCloud: true
         };
 
         const credentials = {
diff --git a/packages/abap-deploy-config-sub-generator/src/app/index.ts b/packages/abap-deploy-config-sub-generator/src/app/index.ts
index ca0c80df2f5..3534af42b5b 100644
--- a/packages/abap-deploy-config-sub-generator/src/app/index.ts
+++ b/packages/abap-deploy-config-sub-generator/src/app/index.ts
@@ -228,9 +228,9 @@ export default class extends DeploymentGenerator {
                 client: this.answers.client,
                 destination: this.answers.destination
             }));
-        this.answers.isS4HC =
-            this.options.isS4HC ||
-            this.answers.isS4HC ||
+        this.answers.isAbapCloud =
+            this.options.isAbapCloud ||
+            this.answers.isAbapCloud ||
             (await determineS4HCFromTarget({
                 url: this.answers.url,
                 client: this.answers.client,
@@ -290,7 +290,7 @@ export default class extends DeploymentGenerator {
         if (this.abort || this.answers.overwrite === false) {
             return;
         }
-        const namespace = await getVariantNamespace(this.destinationPath(), !!this.answers.isS4HC, this.fs);
+        const namespace = await getVariantNamespace(this.destinationPath(), !!this.answers.isAbapCloud, this.fs);
         await generateAbapDeployConfig(
             this.destinationPath(),
             {
@@ -299,7 +299,7 @@ export default class extends DeploymentGenerator {
                     client: this.answers.client,
                     scp: this.answers.scp,
                     destination: this.answers.destination,
-                    authenticationType: this.answers.isS4HC ? AuthenticationType.ReentranceTicket : undefined // only reentrance ticket is relevant for writing to deploy config
+                    authenticationType: this.answers.isAbapCloud ? AuthenticationType.ReentranceTicket : undefined
                 },
                 app: {
                     name: this.answers.ui5AbapRepo,
diff --git a/packages/abap-deploy-config-sub-generator/src/utils/helpers.ts b/packages/abap-deploy-config-sub-generator/src/utils/helpers.ts
index 863622fb45e..9e071dccf33 100644
--- a/packages/abap-deploy-config-sub-generator/src/utils/helpers.ts
+++ b/packages/abap-deploy-config-sub-generator/src/utils/helpers.ts
@@ -102,16 +102,16 @@ export async function determineScpFromTarget(target: AbapTarget): Promise<boolea
  * @returns - true if the target is an s4hana cloud system, false otherwise
  */
 export async function determineS4HCFromTarget(target: AbapTarget): Promise<boolean> {
-    let isS4HCloud = false;
+    let isAbapCloud = false;
     if (isAppStudio() && target.destination) {
         const destinations = await getDestinations();
         if (destinations?.[target.destination]) {
-            isS4HCloud = isS4HC(destinations?.[target.destination]);
+            isAbapCloud = isS4HC(destinations?.[target.destination]);
         }
     } else if (target.url) {
         const backendSystems = await getBackendSystems();
         const backendSystem = backendSystems?.find((backend: BackendSystem) => isSameSystem(backend, target));
-        isS4HCloud = backendSystem?.authenticationType === AuthenticationType.ReentranceTicket;
+        isAbapCloud = backendSystem?.authenticationType === AuthenticationType.ReentranceTicket;
     }
-    return isS4HCloud;
+    return isAbapCloud;
 }
diff --git a/packages/axios-extension/src/abap/abap-service-provider.ts b/packages/axios-extension/src/abap/abap-service-provider.ts
index 01d022fead2..0fcd25a3d7c 100644
--- a/packages/axios-extension/src/abap/abap-service-provider.ts
+++ b/packages/axios-extension/src/abap/abap-service-provider.ts
@@ -1,19 +1,20 @@
+import { ODataVersion } from '../base/odata-service';
 import { ServiceProvider } from '../base/service-provider';
+import { AdtCatalogService } from './adt-catalog/adt-catalog-service';
+import { AppIndexService } from './app-index-service';
 import type { CatalogService } from './catalog';
 import { V2CatalogService, V4CatalogService } from './catalog';
-import { Ui5AbapRepositoryService } from './ui5-abap-repository-service';
-import { AppIndexService } from './app-index-service';
-import { ODataVersion } from '../base/odata-service';
 import { LayeredRepositoryService } from './lrep-service';
-import { AdtCatalogService } from './adt-catalog/adt-catalog-service';
-import type { AbapCDSView, AtoSettings, BusinessObject } from './types';
+import type { AbapCDSView, AtoSettings, BusinessObject, SystemInfo } from './types';
 import { TenantType } from './types';
+import { Ui5AbapRepositoryService } from './ui5-abap-repository-service';
 // Can't use an `import type` here. We need the classname at runtime to create object instances:
 // eslint-disable-next-line @typescript-eslint/consistent-type-imports
-import { AdtService, AtoService, GeneratorService, RapGeneratorService } from './adt-catalog/services';
 import { ODataServiceGenerator } from './adt-catalog/generators/odata-service-generator';
-import { UiServiceGenerator } from './adt-catalog/generators/ui-service-generator';
 import type { GeneratorEntry } from './adt-catalog/generators/types';
+import { UiServiceGenerator } from './adt-catalog/generators/ui-service-generator';
+import { type AdtService, AtoService, GeneratorService, RapGeneratorService } from './adt-catalog/services';
+import { SystemInfoService } from './adt-catalog/services/systeminfo-service';
 
 /**
  * Extension of the service provider for ABAP services.
@@ -26,14 +27,37 @@ export class AbapServiceProvider extends ServiceProvider {
      */
     protected _publicUrl: string;
 
+    /**
+     * The connected system info
+     */
+    protected _systemInfo: SystemInfo | undefined;
+
     /**
      * Get the name of the currently logged in user. This is the basic implementation that could be overwritten by subclasses.
      * The function returns a promise because it may be required to fetch the information from the backend.
      *
      * @returns the username
      */
-    public user(): Promise<string | undefined> {
-        return Promise.resolve(this.defaults.auth?.username);
+    public async user(): Promise<string | undefined> {
+        return (await Promise.resolve(this.defaults.auth?.username)) || (await this.getSystemInfo())?.userName;
+    }
+
+    /**
+     * Get user information.
+     *
+     * @returns user name or undefined
+     */
+    public async getSystemInfo(): Promise<SystemInfo | undefined> {
+        if (this._systemInfo) {
+            return this._systemInfo;
+        }
+        try {
+            const systemInfoService = this.createService<SystemInfoService>('', SystemInfoService);
+            this._systemInfo = await systemInfoService.getSystemInfo();
+        } catch (error) {
+            this.log.error(`An error occurred retrieving system info: ${error}`);
+        }
+        return this._systemInfo;
     }
 
     /**
diff --git a/packages/axios-extension/src/abap/adt-catalog/services/systeminfo-service.ts b/packages/axios-extension/src/abap/adt-catalog/services/systeminfo-service.ts
new file mode 100644
index 00000000000..72a48120603
--- /dev/null
+++ b/packages/axios-extension/src/abap/adt-catalog/services/systeminfo-service.ts
@@ -0,0 +1,30 @@
+import type { SystemInfo } from 'abap/types';
+import { AdtService } from './adt-service';
+
+/**
+ * Retrieve system information using the ADT endpoint
+ */
+export class SystemInfoService extends AdtService {
+    /**
+     * Send ADT request to fetch ATO settings.
+     *
+     * @returns AtoSettings
+     */
+    public async getSystemInfo(): Promise<SystemInfo | undefined> {
+        const acceptHeaders = {
+            headers: {
+                Accept: 'application/vnd.sap.adt.core.http.systeminformation.v1+json'
+            }
+        };
+        const response = await this.get('/sap/bc/adt/core/http/systeminformation', acceptHeaders);
+        if (typeof response.data === 'string') {
+            try {
+                return JSON.parse(response.data);
+            } catch (parseError) {
+                this.log.error(`System info could not be parsed from response. Error: ${parseError.message}`);
+            }
+        } else {
+            return response.data;
+        }
+    }
+}
diff --git a/packages/axios-extension/src/abap/types/adt-types.ts b/packages/axios-extension/src/abap/types/adt-types.ts
index 0162140767d..e4e9d916a40 100644
--- a/packages/axios-extension/src/abap/types/adt-types.ts
+++ b/packages/axios-extension/src/abap/types/adt-types.ts
@@ -162,3 +162,14 @@ export type ODataServiceTechnicalDetails = {
 };
 
 export type ValidationResponse = { severity: string; short_text: string; long_text: string };
+
+/**
+ * Type for '/sap/bc/adt/core/http/systeminformation' response type 'application/vnd.sap.adt.core.http.systeminformation.v1+json'
+ */
+export type SystemInfo = {
+    systemID: string;
+    userName: string;
+    userFullName: string;
+    client: string;
+    language: string;
+};
diff --git a/packages/axios-extension/src/auth/index.ts b/packages/axios-extension/src/auth/index.ts
index 2c41cbbbeaa..96f45159739 100644
--- a/packages/axios-extension/src/auth/index.ts
+++ b/packages/axios-extension/src/auth/index.ts
@@ -1,10 +1,10 @@
-import { ServiceInfo } from '@sap-ux/btp-utils';
 import { AxiosHeaders } from 'axios';
 import type { Axios, AxiosResponse, InternalAxiosRequestConfig } from 'axios';
 import type { ServiceProvider } from '../base/service-provider';
-import type { AbapServiceProvider } from '../abap';
 import { getReentranceTicket } from './reentrance-ticket';
 import { RefreshTokenChanged, Uaa } from './uaa';
+import type { AbapServiceProvider } from 'abap/abap-service-provider';
+import type { ServiceInfo } from '@sap-ux/btp-utils';
 
 export * from './connection';
 export * from './error';
@@ -90,20 +90,16 @@ export function getReentranceTicketAuthInterceptor({
     ejectCallback: () => void;
 }): (request: InternalAxiosRequestConfig) => Promise<InternalAxiosRequestConfig<any>> {
     return async (request: InternalAxiosRequestConfig) => {
-        const { reentranceTicket, apiUrl } = await getReentranceTicket({
+        const { reentranceTicket, backend } = await getReentranceTicket({
             backendUrl: provider.defaults.baseURL,
             logger: provider.log
         });
-        if (apiUrl && apiUrl != provider.defaults.baseURL) {
-            // Reentrance tickets work with API hostnames. If the original URL was not one, this will replace it
-            // with the API hostname returned
-            provider.log.warn(
-                `Replacing provider's default base URL (${provider.defaults.baseURL}) with API URL: ${apiUrl}`
-            );
-            provider.defaults.baseURL = apiUrl;
-        }
+        // Update the base host (provided system url) to the API host for subsequent calls as only this should be used with re-entrance tickets to generate a secure session
+        provider.defaults.baseURL = (await backend?.apiHostname()) ?? provider.defaults.baseURL;
         request.headers = request.headers ?? new AxiosHeaders();
         request.headers.MYSAPSSO2 = reentranceTicket;
+        // Request a secure session using the reentrance token
+        request.headers['x-sap-security-session'] = 'create';
         // remove this interceptor since it is not needed anymore
         ejectCallback();
         return request;
diff --git a/packages/axios-extension/src/auth/reentrance-ticket/abap-system.ts b/packages/axios-extension/src/auth/reentrance-ticket/abap-system.ts
deleted file mode 100644
index 945a58d53ba..00000000000
--- a/packages/axios-extension/src/auth/reentrance-ticket/abap-system.ts
+++ /dev/null
@@ -1,55 +0,0 @@
-/**
- *
- */
-export class ABAPSystem {
-    private apiURL: URL;
-    private uiURL: URL;
-    private systemURL: URL;
-
-    /**
-     *
-     * @param backendUrl backend Url
-     */
-    constructor(backendUrl: string) {
-        this.systemURL = new URL(backendUrl);
-    }
-    /**
-     * Removes any `-api` suffix in the first label of the hostname.
-     *
-     * @returns UI hostname
-     */
-    uiHostname(): string {
-        if (!this.uiURL) {
-            this.uiURL = new URL(this.systemURL.href);
-
-            const [first, ...rest] = this.uiURL.hostname.split('.');
-            this.uiURL.hostname = [first.replace(/-api$/, ''), ...rest].join('.');
-        }
-        return this.uiURL.origin;
-    }
-
-    /**
-     * Adds a `-api` suffix to the first label of the hostname.
-     *
-     * @returns API hostname
-     */
-    apiHostname(): string {
-        if (!this.apiURL) {
-            this.apiURL = new URL(this.systemURL.href);
-
-            const [first, ...rest] = this.apiURL.hostname.split('.');
-            if (!first.endsWith('-api')) {
-                this.apiURL.hostname = [first + '-api', ...rest].join('.');
-            }
-        }
-        return this.apiURL.origin;
-    }
-
-    /**
-     *
-     * @returns logoff URL
-     */
-    logoffUrl(): string {
-        return this.uiHostname() + '/sap/public/bc/icf/logoff';
-    }
-}
diff --git a/packages/axios-extension/src/auth/reentrance-ticket/abap-virtual-host-provider.ts b/packages/axios-extension/src/auth/reentrance-ticket/abap-virtual-host-provider.ts
new file mode 100644
index 00000000000..e0acb14b3bb
--- /dev/null
+++ b/packages/axios-extension/src/auth/reentrance-ticket/abap-virtual-host-provider.ts
@@ -0,0 +1,88 @@
+import { ToolsLogger, type Logger } from '@sap-ux/logger';
+import axios from 'axios';
+
+type RelatedUrls = {
+    relatedUrls: {
+        API: string;
+        UI: string;
+    };
+};
+/**
+ * Makes requests to determine the virtual host names for UI and API access.
+ */
+export class ABAPVirtualHostProvider {
+    private apiURL: URL;
+    private uiURL: URL;
+    private readonly systemURL: URL;
+    private relatedUrls: RelatedUrls;
+    private readonly logger: Logger = new ToolsLogger();
+
+    /**
+     *
+     * @param backendUrl backend Url
+     * @param logger
+     */
+    constructor(backendUrl: string, logger?: Logger) {
+        this.systemURL = new URL(backendUrl);
+        if (logger) {
+            this.logger = logger;
+        }
+    }
+
+    /**
+     * Retrieves the virtual host names for UI and API access from the ABAP system public endpoint at the backend host.
+     *
+     * @returns An object containing the related URLs for API and UI access.
+     */
+    private async getVirtualHosts(): Promise<RelatedUrls> {
+        if (!this.relatedUrls) {
+            this.logger.debug(`Requesting virtual hosts from: ${this.systemURL}`);
+            const url = new URL('/sap/public/bc/icf/virtualhost', this.systemURL.origin);
+            const response = await axios.get(url.href, {
+                headers: {
+                    Accept: 'application/json'
+                }
+            });
+
+            if (response.status !== 200) {
+                this.logger.debug(`Failed to fetch virtual hosts: from: ${url}. Error: ${response.statusText}`);
+                throw new Error(`Failed to fetch virtual hosts: ${response.statusText}`);
+            }
+            this.relatedUrls = response.data;
+        }
+        return this.relatedUrls;
+    }
+
+    /**
+     * Get the UI hostname, if not cached yet it will be fetched.
+     *
+     * @returns UI hostname
+     */
+    async uiHostname(): Promise<string> {
+        if (!this.uiURL) {
+            this.uiURL = new URL((await this.getVirtualHosts()).relatedUrls.UI);
+        }
+        return this.uiURL.origin;
+    }
+
+    /**
+     * Get the API hostname, if not cached yet it will be fetched.
+     *
+     * @returns API hostname
+     */
+    async apiHostname(): Promise<string> {
+        if (!this.apiURL) {
+            this.apiURL = new URL((await this.getVirtualHosts()).relatedUrls.API);
+        }
+        return this.apiURL.origin;
+    }
+
+    /**
+     * Get the logoff URL.
+     *
+     * @returns logoff URL
+     */
+    async logoffUrl(): Promise<string> {
+        return (await this.uiHostname()) + '/sap/public/bc/icf/logoff';
+    }
+}
diff --git a/packages/axios-extension/src/auth/reentrance-ticket/index.ts b/packages/axios-extension/src/auth/reentrance-ticket/index.ts
index d850548ea15..2defe66f3c2 100644
--- a/packages/axios-extension/src/auth/reentrance-ticket/index.ts
+++ b/packages/axios-extension/src/auth/reentrance-ticket/index.ts
@@ -2,13 +2,9 @@ import type { Logger } from '@sap-ux/logger';
 import type { AddressInfo } from 'node:net';
 import open = require('open');
 import { defaultTimeout } from '../connection';
-import { ABAPSystem } from './abap-system';
+import { ABAPVirtualHostProvider } from './abap-virtual-host-provider';
 import { setupRedirectHandling } from './redirect';
 
-/**
- * DO NOT USE THIS SERVICE ENDPOINT DIRECTLY.
- * It might be removed in the future without notice.
- */
 const ADT_REENTRANCE_ENDPOINT = '/sap/bc/sec/reentrance';
 
 /**
@@ -27,19 +23,21 @@ export async function getReentranceTicket({
     backendUrl: string;
     logger: Logger;
     timeout?: number;
-}): Promise<{ reentranceTicket: string; apiUrl?: string }> {
+}): Promise<{ reentranceTicket: string; backend?: ABAPVirtualHostProvider }> {
+    const backend = new ABAPVirtualHostProvider(backendUrl, logger);
+    const uiHostname = await backend.uiHostname();
     return new Promise((resolve, reject) => {
-        const backend = new ABAPSystem(backendUrl);
         // Start local server to listen to redirect call, with timeout
         const { server, redirectUrl } = setupRedirectHandling({ resolve, reject, timeout, backend, logger });
         server.listen();
-
         const redirectPort = (server.address() as AddressInfo).port;
 
         // Open browser to handle SAML flow and return the reentrance ticket
         const scenario = process.env.FIORI_TOOLS_SCENARIO ?? 'FTO1';
         const endpoint = process.env.FIORI_TOOLS_REENTRANCE_ENDPOINT ?? ADT_REENTRANCE_ENDPOINT;
-        const url = `${backend.uiHostname()}${endpoint}?scenario=${scenario}&redirect-url=${redirectUrl(redirectPort)}`;
-        open(url)?.catch((error) => logger.error(error));
+        const url = `${uiHostname}${endpoint}?scenario=${scenario}&redirect-url=${redirectUrl(redirectPort)}`;
+
+        const result = open(url)?.catch((error) => logger.error(error));
+        return result;
     });
 }
diff --git a/packages/axios-extension/src/auth/reentrance-ticket/redirect.ts b/packages/axios-extension/src/auth/reentrance-ticket/redirect.ts
index 783c13a8cd9..16bf70d1a0e 100644
--- a/packages/axios-extension/src/auth/reentrance-ticket/redirect.ts
+++ b/packages/axios-extension/src/auth/reentrance-ticket/redirect.ts
@@ -3,7 +3,7 @@ import http from 'http';
 import { ConnectionError, TimeoutError } from '../error';
 import { prettyPrintTimeInMs } from '../../abap/message';
 import { redirectErrorHtml, redirectSuccessHtml } from '../static';
-import type { ABAPSystem } from './abap-system';
+import type { ABAPVirtualHostProvider } from './abap-virtual-host-provider';
 
 interface Redirect {
     server: http.Server;
@@ -20,7 +20,7 @@ export interface SetupRedirectOptions {
     resolve;
     reject;
     timeout: number;
-    backend: ABAPSystem;
+    backend: ABAPVirtualHostProvider;
     logger: Logger;
 }
 
@@ -46,7 +46,7 @@ export function setupRedirectHandling({ resolve, reject, timeout, backend, logge
     };
 
     const timer = setTimeout(handleTimeout, timeout);
-    server = http.createServer((req, res) => {
+    server = http.createServer((req, res): void => {
         const reqUrl = new URL(req.url, `http://${req.headers.host}`);
         if (reqUrl.pathname === REDIRECT_PATH) {
             if (timer) {
@@ -55,10 +55,16 @@ export function setupRedirectHandling({ resolve, reject, timeout, backend, logge
             const reentranceTicket = reqUrl.searchParams.get('reentrance-ticket')?.toString();
             if (reentranceTicket) {
                 logger.debug('Got reentrance ticket: ' + reentranceTicket);
-                res.writeHead(200, { 'Content-Type': 'text/html' });
-                res.end(Buffer.from(redirectSuccessHtml(backend.logoffUrl())));
+                backend
+                    .logoffUrl()
+                    .then((url) => {
+                        res.writeHead(200, { 'Content-Type': 'text/html' });
+                        res.end(Buffer.from(redirectSuccessHtml(url)));
+                    })
+                    .catch(() => {});
                 server.close();
-                resolve({ reentranceTicket, apiUrl: backend.apiHostname() });
+                // return the backend for convienience
+                resolve({ reentranceTicket, backend });
             } else {
                 logger.error('Error getting reentrance ticket');
                 logger.debug(req);
diff --git a/packages/axios-extension/src/base/service-provider.ts b/packages/axios-extension/src/base/service-provider.ts
index 08aaf5634ed..832a94ff0b1 100644
--- a/packages/axios-extension/src/base/service-provider.ts
+++ b/packages/axios-extension/src/base/service-provider.ts
@@ -17,6 +17,11 @@ export interface ProviderConfiguration {
      * https://datatracker.ietf.org/doc/html/rfc6265#section-4.2
      */
     cookies: string;
+
+    /**
+     * Allow a logger to be set by calls to provider creation
+     */
+    logger?: Logger;
 }
 
 export interface ServiceProviderExtension {
@@ -39,8 +44,20 @@ export class ServiceProvider extends Axios implements ServiceProviderExtension {
 
     protected readonly services: { [path: string]: Service } = {};
 
+    /**
+     *
+     * @param providerConfig
+     */
+    constructor(providerConfig?: AxiosRequestConfig & Partial<ProviderConfiguration>) {
+        super(providerConfig);
+        if (providerConfig?.logger) {
+            this._log = providerConfig.logger;
+        }
+    }
+
     /**
      * Set the logger for the service provider. Loggers may need to be restored after serialization/deserialization since they contain circular references.
+     * Note calling this will overwrite loggers sets via ProviderConfiguration.
      *
      * @param logger - Logger instance to be set
      */
@@ -78,10 +95,11 @@ export class ServiceProvider extends Axios implements ServiceProviderExtension {
      */
     protected generateServiceConfig(path: string): AxiosRequestConfig {
         const config = Object.assign({}, this.defaults);
+        const headers = Object.assign(this.defaults.headers?.common ?? {}, { Cookie: this.cookies.toString() });
         return {
             ...config,
             baseURL: this.defaults.baseURL + path,
-            headers: this.defaults.headers?.common ?? {}
+            headers
         };
     }
 
diff --git a/packages/axios-extension/src/factory.ts b/packages/axios-extension/src/factory.ts
index 31418762087..c836d5f3322 100644
--- a/packages/axios-extension/src/factory.ts
+++ b/packages/axios-extension/src/factory.ts
@@ -1,30 +1,30 @@
-import type { AxiosRequestConfig, InternalAxiosRequestConfig } from 'axios';
-import cloneDeep from 'lodash/cloneDeep';
 import {
-    getDestinationUrlForAppStudio,
+    type Destination,
+    BAS_DEST_INSTANCE_CRED_HEADER,
     getCredentialsForDestinationService,
+    getDestinationUrlForAppStudio,
     isAbapSystem,
-    BAS_DEST_INSTANCE_CRED_HEADER,
-    isAppStudio,
-    type Destination
+    isAppStudio
 } from '@sap-ux/btp-utils';
+import type { AxiosRequestConfig, InternalAxiosRequestConfig } from 'axios';
+import { HttpProxyAgent } from 'http-proxy-agent';
 import { type AgentOptions, Agent as HttpsAgent } from 'https';
-import type { ServiceInfo, RefreshTokenChanged } from './auth';
+import { type HttpsProxyAgentOptions, HttpsProxyAgent } from 'https-proxy-agent';
+import cloneDeep from 'lodash/cloneDeep';
+import { getProxyForUrl } from 'proxy-from-env';
+import { inspect } from 'util';
+import { AbapServiceProvider } from './abap';
+import type { RefreshTokenChanged, ServiceInfo } from './auth';
 import {
-    attachConnectionHandler,
     attachBasicAuthInterceptor,
-    attachUaaAuthInterceptor,
-    attachReentranceTicketAuthInterceptor
+    attachConnectionHandler,
+    attachReentranceTicketAuthInterceptor,
+    attachUaaAuthInterceptor
 } from './auth';
-import type { ProviderConfiguration } from './base/service-provider';
-import { ServiceProvider } from './base/service-provider';
 import type { ODataService } from './base/odata-service';
-import { AbapServiceProvider } from './abap';
-import { inspect } from 'util';
 import { TlsPatch } from './base/patchTls';
-import { getProxyForUrl } from 'proxy-from-env';
-import { type HttpsProxyAgentOptions, HttpsProxyAgent } from 'https-proxy-agent';
-import { HttpProxyAgent } from 'http-proxy-agent';
+import type { ProviderConfiguration } from './base/service-provider';
+import { ServiceProvider } from './base/service-provider';
 
 type Class<T> = new (...args: any[]) => T;
 
@@ -98,6 +98,7 @@ function createInstance<T extends ServiceProvider>(
      */
     providerConfig.validateStatus = (status) => status < 400;
     const instance = new ProviderType(providerConfig);
+
     instance.defaults.headers = instance.defaults.headers ?? {
         common: {},
         'delete': {},
@@ -159,7 +160,9 @@ export enum AbapCloudEnvironment {
 /** Cloud Foundry OAuth 2.0 options */
 export interface CFAOauthOptions {
     service: ServiceInfo;
+
     refreshToken?: string;
+
     refreshTokenChangedCb?: RefreshTokenChanged;
 }
 
@@ -179,7 +182,7 @@ export interface AbapEmbeddedSteampunkOptions extends ReentranceTicketOptions {
 }
 
 /** Discriminated union of supported environments - {@link AbapCloudStandaloneOptions} and {@link AbapEmbeddedSteampunkOptions} */
-type AbapCloudOptions = AbapCloudStandaloneOptions | AbapEmbeddedSteampunkOptions;
+export type AbapCloudOptions = AbapCloudStandaloneOptions | AbapEmbeddedSteampunkOptions;
 
 /**
  * Create an instance of an ABAP service provider for a Cloud ABAP system.
@@ -197,8 +200,16 @@ export function createForAbapOnCloud(options: AbapCloudOptions & Partial<Provide
                 cookies,
                 ...config
             });
+
             if (!cookies) {
-                attachUaaAuthInterceptor(provider, service, refreshToken, refreshTokenChangedCb);
+                // Only in the case where a username and password are provided use UAA otherwise use re-entrance
+                // This is to support unattended authentication for now.
+                if (options.service?.uaa?.username && options.service.uaa.password) {
+                    attachUaaAuthInterceptor(provider, service, refreshToken, refreshTokenChangedCb);
+                } else {
+                    // Always use re-entrance tickets regardless of the ABAP Cloud environment where credentials are not provided
+                    attachReentranceTicketAuthInterceptor({ provider });
+                }
             }
             break;
         }
diff --git a/packages/axios-extension/test/abap/abap-adt-service.test.ts b/packages/axios-extension/test/abap/abap-adt-service.test.ts
index f2fa7731933..5e994430c32 100644
--- a/packages/axios-extension/test/abap/abap-adt-service.test.ts
+++ b/packages/axios-extension/test/abap/abap-adt-service.test.ts
@@ -13,15 +13,16 @@ import {
     UI5RtVersionService,
     AbapCDSViewService
 } from '../../src';
-import type { AxiosError } from '../../src';
+import type { AbapCloudOptions, AxiosError, AxiosRequestConfig, ProviderConfiguration } from '../../src';
 import * as auth from '../../src/auth';
-import type { ArchiveFileNode } from '../../src/abap/types';
+import type { ArchiveFileNode, SystemInfo } from '../../src/abap/types';
 import fs from 'node:fs';
 import cloneDeep from 'lodash/cloneDeep';
-import { Uaa } from '../../src/auth/uaa';
 import type { ToolsLogger } from '@sap-ux/logger';
 import * as Logger from '@sap-ux/logger';
 import { UiServiceGenerator } from '../../src/abap/adt-catalog/generators/ui-service-generator';
+import { Uaa } from '../../src/auth/uaa';
+import * as reentranceTicketAuth from '../../src/auth/reentrance-ticket';
 
 const loggerMock: ToolsLogger = {
     debug: jest.fn(),
@@ -59,32 +60,6 @@ const config = {
         password: 'SECRET'
     }
 };
-const existingCookieConfig = {
-    baseURL: server,
-    cookies: 'sap-usercontext=sap-client=100;SAP_SESSIONID_Y05_100=abc'
-};
-const configForAbapOnCloud = {
-    service: {
-        url: server,
-        uaa: {
-            clientid: 'ClientId',
-            clientsecret: 'ClientSecret',
-            url: server
-        }
-    } as any,
-    environment: AbapCloudEnvironment.Standalone
-};
-const existingCookieConfigForAbapOnCloudStandalone = {
-    service: {},
-    cookies: 'sap-usercontext=sap-client=100;SAP_SESSIONID_Y05_100=abc',
-    environment: AbapCloudEnvironment.Standalone
-};
-
-const existingCookieConfigForAbapOnCloudEmbeddedSteampunk = {
-    service: {},
-    cookies: 'sap-usercontext=sap-client=100;SAP_SESSIONID_X01_100=abc',
-    environment: AbapCloudEnvironment.EmbeddedSteampunk
-};
 
 const testPackage = 'ZSPD';
 const testPackageNamespace = '/NS/ZSPD';
@@ -375,21 +350,111 @@ describe('Transport checks', () => {
     });
 });
 
-describe('Use existing connection session', () => {
-    const attachUaaAuthInterceptorSpy = jest.spyOn(auth, 'attachUaaAuthInterceptor');
+describe('Should create new connections', () => {
     const attachReentranceTicketAuthInterceptorSpy = jest.spyOn(auth, 'attachReentranceTicketAuthInterceptor');
 
+    test('abap service provider for cloud - credentials not provided, always use reentrance', async () => {
+        const getReentranceTicketSpy = jest
+            .spyOn(reentranceTicketAuth, 'getReentranceTicket')
+            .mockResolvedValueOnce({ reentranceTicket: 'reent_tecket_1234' });
+
+        const attachUaaAuthInterceptorSpy = jest.spyOn(auth, 'attachUaaAuthInterceptor');
+        Uaa.prototype.getAccessToken = jest.fn();
+        Uaa.prototype.getAccessTokenWithClientCredentials = jest.fn();
+        const configForAbapOnCloudNoCreds = {
+            service: {
+                url: server,
+                uaa: {
+                    clientid: 'ClientId',
+                    clientsecret: 'ClientSecret',
+                    url: server
+                }
+            } as any,
+            environment: AbapCloudEnvironment.Standalone
+        } as AbapCloudOptions & Partial<ProviderConfiguration>;
+        nock(server)
+            .get('/sap/public/bc/icf/virtualhost')
+            .reply(200, { relatedUrls: { API: server, UI: server } })
+            .get(AdtServices.DISCOVERY)
+            .replyWithFile(200, join(__dirname, 'mockResponses/discovery-1.xml'))
+            .get(AdtServices.ATO_SETTINGS)
+            .replyWithFile(200, join(__dirname, 'mockResponses/atoSettingsS4C.xml'))
+            .get('/sap/bc/adt/core/http/systeminformation')
+            .reply(200, {
+                userFullName: 'User FullName',
+                userName: 'userName01',
+                client: '100',
+                systemID: 'ABC01',
+                language: 'EN'
+            } as SystemInfo);
+
+        const provider = createForAbapOnCloud(configForAbapOnCloudNoCreds);
+        expect(await provider.isAbapCloud()).toBe(true);
+        expect(await provider.user()).toBe('userName01');
+        expect(Uaa.prototype.getAccessToken).toHaveBeenCalledTimes(0);
+        expect(Uaa.prototype.getAccessTokenWithClientCredentials).toHaveBeenCalledTimes(0);
+        expect(attachUaaAuthInterceptorSpy).toHaveBeenCalledTimes(0);
+        expect(attachReentranceTicketAuthInterceptorSpy).toHaveBeenCalledTimes(1);
+        expect(getReentranceTicketSpy).toHaveBeenCalledTimes(1);
+    });
+
+    test('abap service provider for cloud - credentials provided use UAA', async () => {
+        const attachUaaAuthInterceptorSpy = jest.spyOn(auth, 'attachUaaAuthInterceptor');
+        const configForAbapOnCloud = {
+            service: {
+                log: console,
+                url: server,
+                uaa: {
+                    username: 'TestUsername',
+                    password: 'TestPassword',
+                    clientid: 'ClientId',
+                    clientsecret: 'ClientSecret',
+                    url: server
+                }
+            },
+            environment: AbapCloudEnvironment.Standalone
+        };
+        nock(server)
+            .post('/oauth/token')
+            .reply(201, { access_token: 'accessToken', refresh_token: 'refreshToken' })
+            .get('/userinfo')
+            .reply(200, { email: 'email', name: 'name' });
+
+        const provider = createForAbapOnCloud(configForAbapOnCloud as any);
+        expect(await provider.isAbapCloud()).toBe(false);
+        expect(await provider.user()).toBe('email');
+        expect(Uaa.prototype.getAccessToken).toHaveBeenCalledTimes(0);
+        expect(Uaa.prototype.getAccessTokenWithClientCredentials).toHaveBeenCalledTimes(2);
+        expect(attachUaaAuthInterceptorSpy).toHaveBeenCalledTimes(1);
+    });
+});
+
+describe('Use existing connection session (cookies)', () => {
+    const attachReentranceTicketAuthInterceptorSpy = jest.spyOn(auth, 'attachReentranceTicketAuthInterceptor');
+    const existingCookieConfig: AxiosRequestConfig & Partial<ProviderConfiguration> = {
+        baseURL: server,
+        cookies: 'sap-usercontext=sap-client=100;SAP_SESSIONID_Y05_100=abc'
+    };
+    const existingCookieConfigForAbapOnCloudStandalone: AbapCloudOptions & Partial<ProviderConfiguration> = {
+        service: {
+            url: server
+        } as any,
+        cookies: 'sap-usercontext=sap-client=100;SAP_SESSIONID_Y05_100=abc',
+        environment: AbapCloudEnvironment.Standalone
+    };
+    const existingCookieConfigForAbapOnCloudEmbeddedSteampunk: AbapCloudOptions & Partial<ProviderConfiguration> = {
+        url: server,
+        cookies: 'sap-usercontext=sap-client=100;SAP_SESSIONID_X01_100=abc',
+        environment: AbapCloudEnvironment.EmbeddedSteampunk
+    };
+
     beforeAll(() => {
         nock.disableNetConnect();
     });
 
     beforeEach(() => {
         nock.cleanAll();
-        attachUaaAuthInterceptorSpy.mockRestore();
         attachReentranceTicketAuthInterceptorSpy.mockRestore();
-
-        Uaa.prototype.getAccessToken = jest.fn();
-        Uaa.prototype.getAccessTokenWithClientCredentials = jest.fn();
     });
 
     afterAll(() => {
@@ -403,7 +468,7 @@ describe('Use existing connection session', () => {
         expect(provider.cookies.toString()).toBe('sap-usercontext=sap-client=100; SAP_SESSIONID_Y05_100=abc');
     });
 
-    test('abap service provider for cloud (standalone)', async () => {
+    test('abap service provider for cloud (standalone) - reentrance', async () => {
         nock(server)
             .get(AdtServices.DISCOVERY)
             .replyWithFile(200, join(__dirname, 'mockResponses/discovery-1.xml'))
@@ -412,78 +477,43 @@ describe('Use existing connection session', () => {
 
         const provider = createForAbapOnCloud(existingCookieConfigForAbapOnCloudStandalone as any);
         expect(provider.cookies.toString()).toBe('sap-usercontext=sap-client=100; SAP_SESSIONID_Y05_100=abc');
-        expect(await provider.isAbapCloud()).toBe(false);
-        expect(attachUaaAuthInterceptorSpy).toHaveBeenCalledTimes(0);
-        expect(Uaa.prototype.getAccessToken).toHaveBeenCalledTimes(0);
-        expect(Uaa.prototype.getAccessTokenWithClientCredentials).toHaveBeenCalledTimes(0);
+        expect(await provider.isAbapCloud()).toBe(true);
+        expect(attachReentranceTicketAuthInterceptorSpy).toHaveBeenCalledTimes(0);
     });
 
-    test('abap service provider for cloud (embedded steampunk)', async () => {
+    test('abap service provider for cloud (embedded steampunk) - reentrance', async () => {
         nock(server)
             .get(AdtServices.DISCOVERY)
             .replyWithFile(200, join(__dirname, 'mockResponses/discovery-1.xml'))
             .get(AdtServices.ATO_SETTINGS)
             .replyWithFile(200, join(__dirname, 'mockResponses/atoSettingsS4C.xml'));
 
-        const provider = createForAbapOnCloud(existingCookieConfigForAbapOnCloudEmbeddedSteampunk as any);
+        const provider = createForAbapOnCloud(existingCookieConfigForAbapOnCloudEmbeddedSteampunk);
         expect(provider.cookies.toString()).toBe('sap-usercontext=sap-client=100; SAP_SESSIONID_X01_100=abc');
         expect(attachReentranceTicketAuthInterceptorSpy).toHaveBeenCalledTimes(0);
     });
 
-    test('abap service provider for cloud - require authentication', async () => {
+    test('abap service provider for cloud - active session', async () => {
         nock(server)
             .get(AdtServices.DISCOVERY)
             .replyWithFile(200, join(__dirname, 'mockResponses/discovery-1.xml'))
             .get(AdtServices.ATO_SETTINGS)
             .replyWithFile(200, join(__dirname, 'mockResponses/atoSettingsS4C.xml'))
-            .get('/userinfo')
-            .reply(200, { email: 'emailTest', name: 'nameTest' });
+            .get('/sap/bc/adt/core/http/systeminformation')
+            .reply(200, {
+                userFullName: 'User FullName',
+                userName: 'userName01',
+                client: '100',
+                systemID: 'ABC01',
+                language: 'EN'
+            } as SystemInfo);
 
-        const cloneObj = cloneDeep(configForAbapOnCloud);
-        delete cloneObj.service.uaa.username;
-        const provider = createForAbapOnCloud(cloneObj as any);
+        const config = cloneDeep(existingCookieConfigForAbapOnCloudEmbeddedSteampunk);
+        const provider = createForAbapOnCloud(config as any);
         expect(await provider.isAbapCloud()).toBe(true);
-        expect(await provider.user()).toBe('emailTest');
-        expect(Uaa.prototype.getAccessToken).toHaveBeenCalledTimes(3);
-        expect(Uaa.prototype.getAccessTokenWithClientCredentials).toHaveBeenCalledTimes(0);
-    });
-
-    test('abap service provider for cloud - with authentication provided', async () => {
-        nock(server)
-            .post('/oauth/token')
-            .reply(201, { access_token: 'accessToken', refresh_token: 'refreshToken' })
-            .get('/userinfo')
-            .reply(200, { email: 'email', name: 'name' });
-
-        const configForAbapOnCloudWithAuthentication = cloneDeep(configForAbapOnCloud);
-        configForAbapOnCloudWithAuthentication.service = {
-            log: console,
-            url: server,
-            uaa: {
-                username: 'TestUsername',
-                password: 'TestPassword',
-                clientid: 'ClientId',
-                clientsecret: 'ClientSecret',
-                url: server
-            }
-        };
-        const provider = createForAbapOnCloud(configForAbapOnCloudWithAuthentication as any);
-        expect(await provider.isAbapCloud()).toBe(false);
-        expect(await provider.user()).toBe('email');
-        expect(Uaa.prototype.getAccessToken).toHaveBeenCalledTimes(0);
-        expect(Uaa.prototype.getAccessTokenWithClientCredentials).toHaveBeenCalledTimes(2);
-    });
-
-    it.each([
-        { remove: 'clientid', errorStr: 'Client ID missing' },
-        { remove: 'clientsecret', errorStr: 'Client Secret missing' },
-        { remove: 'url', errorStr: 'UAA URL missing' }
-    ])('Fail with error: $errorStr', ({ remove, errorStr }) => {
-        const cloneObj = cloneDeep(configForAbapOnCloud);
-        delete cloneObj.service.uaa[remove];
-        expect(() => {
-            createForAbapOnCloud(cloneObj as any);
-        }).toThrow(errorStr);
+        expect(await provider.user()).toBe('userName01');
+        // Cookies with session already set so not expected to add an auth interceptor
+        expect(attachReentranceTicketAuthInterceptorSpy).toHaveBeenCalledTimes(0);
     });
 });
 
diff --git a/packages/axios-extension/test/auth/index.test.ts b/packages/axios-extension/test/auth/index.test.ts
index 2a6ec466b3d..00a96e2d4ec 100644
--- a/packages/axios-extension/test/auth/index.test.ts
+++ b/packages/axios-extension/test/auth/index.test.ts
@@ -7,6 +7,7 @@ import * as rt from '../../src/auth/reentrance-ticket';
 import type { InternalAxiosRequestConfig } from 'axios';
 import { AxiosHeaders } from 'axios';
 import { WebIDEUsage as WebIDEUsageType, type Destination } from '@sap-ux/btp-utils';
+import type { ABAPVirtualHostProvider } from '../../src/auth/reentrance-ticket/abap-virtual-host-provider';
 
 describe('getReentranceTicketAuthInterceptor', () => {
     const getReentranceTicketSpy = jest.spyOn(rt, 'getReentranceTicket');
@@ -23,18 +24,24 @@ describe('getReentranceTicketAuthInterceptor', () => {
         expect(request.headers.MYSAPSSO2).toBe(REENTRANCE_TICKET_VALUE);
     });
 
-    it('changes provider baseURL if different to API host', async () => {
-        const API_URL = 'api_url';
-        const ORIGINAL_BASE_URL = 'base_url.example';
-        getReentranceTicketSpy.mockResolvedValueOnce({ reentranceTicket: 'foo', apiUrl: API_URL });
-        const provider = new ServiceProvider({ baseURL: ORIGINAL_BASE_URL });
+    it('Should update provider baseURL to api host', async () => {
+        const API_ORIGIN = 'http://api_host.example';
+        const ORIGINAL_ORIGIN = 'http://base_url.example';
+        const backendMock = {
+            apiHostname: jest.fn().mockReturnValue(API_ORIGIN)
+        };
+        getReentranceTicketSpy.mockResolvedValueOnce({
+            reentranceTicket: 'foo',
+            backend: backendMock as unknown as ABAPVirtualHostProvider
+        });
+        const provider = new ServiceProvider({ baseURL: ORIGINAL_ORIGIN });
 
         const interceptor = getReentranceTicketAuthInterceptor({ provider, ejectCallback: () => 0 });
-        expect(provider.defaults.baseURL).toBe(ORIGINAL_BASE_URL);
+        expect(provider.defaults.baseURL).toBe(ORIGINAL_ORIGIN);
 
         await interceptor({ headers: new AxiosHeaders() });
 
-        expect(provider.defaults.baseURL).toBe(API_URL);
+        expect(provider.defaults.baseURL).toBe(API_ORIGIN);
     });
 
     it('calls eject after running once', async () => {
@@ -74,8 +81,8 @@ describe('attachUaaAuthInterceptor', () => {
     const callback = jest.fn();
 
     it('check interceptor request handlers length', () => {
-        expect(Object.keys(provider.interceptors.request['handlers']).length).toEqual(2);
+        expect(Object.keys((provider.interceptors.request as any)['handlers']).length).toEqual(2);
         attachUaaAuthInterceptor(provider, service, refreshToken, callback);
-        expect(Object.keys(provider.interceptors.request['handlers']).length).toEqual(3);
+        expect(Object.keys((provider.interceptors.request as any)['handlers']).length).toEqual(3);
     });
 });
diff --git a/packages/axios-extension/test/auth/reentrance-ticket/abap-system.test.ts b/packages/axios-extension/test/auth/reentrance-ticket/abap-system.test.ts
deleted file mode 100644
index aa7316a9105..00000000000
--- a/packages/axios-extension/test/auth/reentrance-ticket/abap-system.test.ts
+++ /dev/null
@@ -1,107 +0,0 @@
-import { ABAPSystem } from '../../../src/auth/reentrance-ticket/abap-system';
-
-describe('ABAPSystem', () => {
-    describe('uiHostname()', () => {
-        it('removes -api from the first label of hostname, multiple labels', () => {
-            expect(new ABAPSystem('http://first-api.second.example/some/path?foo=bar&baz=quux').uiHostname()).toBe(
-                'http://first.second.example'
-            );
-        });
-
-        it('removes -api from the first label of hostname, single label', () => {
-            expect(new ABAPSystem('http://first-api/some/path?foo=bar&baz=quux').uiHostname()).toBe('http://first');
-        });
-        it('removes -api from the first label of hostname, multiple labels, with port', () => {
-            expect(
-                new ABAPSystem('http://first-api.second.example:50000/some/path?foo=bar&baz=quux').uiHostname()
-            ).toBe('http://first.second.example:50000');
-        });
-
-        it('removes -api from the first label of hostname, single label, with port', () => {
-            expect(new ABAPSystem('http://first-api:50000/some/path?foo=bar&baz=quux').uiHostname()).toBe(
-                'http://first:50000'
-            );
-        });
-
-        it('multiple labels, no -api, hostname unchanged', () => {
-            expect(new ABAPSystem('http://first.second.example/some/path?foo=bar&baz=quux').uiHostname()).toBe(
-                'http://first.second.example'
-            );
-        });
-
-        it('single label, no -api, hostname unchanged', () => {
-            expect(new ABAPSystem('http://first/some/path?foo=bar&baz=quux').uiHostname()).toBe('http://first');
-        });
-        it('multiple labels, with port number, no -api, hostname unchanged', () => {
-            expect(new ABAPSystem('http://first.second.example:50000/some/path?foo=bar&baz=quux').uiHostname()).toBe(
-                'http://first.second.example:50000'
-            );
-        });
-
-        it('single label, with port number, no -api, hostname unchanged', () => {
-            expect(new ABAPSystem('http://first:50000/some/path?foo=bar&baz=quux').uiHostname()).toBe(
-                'http://first:50000'
-            );
-        });
-    });
-    describe('apiHostname()', () => {
-        it('adds -api to the first label of hostname, multiple labels', () => {
-            expect(new ABAPSystem('http://first.second.example/some/path?foo=bar&baz=quux').apiHostname()).toBe(
-                'http://first-api.second.example'
-            );
-        });
-
-        it('adds -api to the first label of hostname, single label', () => {
-            expect(new ABAPSystem('http://first-api/some/path?foo=bar&baz=quux').apiHostname()).toBe(
-                'http://first-api'
-            );
-        });
-        it('adds -api to the first label of hostname, multiple labels, with port', () => {
-            expect(
-                new ABAPSystem('http://first-api.second.example:50000/some/path?foo=bar&baz=quux').apiHostname()
-            ).toBe('http://first-api.second.example:50000');
-        });
-
-        it('adds -api to the first label of hostname, single label, with port', () => {
-            expect(new ABAPSystem('http://first-api:50000/some/path?foo=bar&baz=quux').apiHostname()).toBe(
-                'http://first-api:50000'
-            );
-        });
-
-        it('multiple labels, has -api, hostname unchanged', () => {
-            expect(new ABAPSystem('http://first-api.second.example/some/path?foo=bar&baz=quux').apiHostname()).toBe(
-                'http://first-api.second.example'
-            );
-        });
-
-        it('single label, has -api, hostname unchanged', () => {
-            expect(new ABAPSystem('http://first-api/some/path?foo=bar&baz=quux').apiHostname()).toBe(
-                'http://first-api'
-            );
-        });
-        it('multiple labels, with port number, has -api, hostname unchanged', () => {
-            expect(
-                new ABAPSystem('http://first-api.second.example:50000/some/path?foo=bar&baz=quux').apiHostname()
-            ).toBe('http://first-api.second.example:50000');
-        });
-
-        it('single label, with port number, has -api, hostname unchanged', () => {
-            expect(new ABAPSystem('http://first-api:50000/some/path?foo=bar&baz=quux').apiHostname()).toBe(
-                'http://first-api:50000'
-            );
-        });
-    });
-    describe('logoffUrl()', () => {
-        it('uses UI hostname, given API url', () => {
-            const url = 'http://first-api.second.example/some/path?foo=bar&baz=quux';
-            const logoffURL = new URL(new ABAPSystem(url).logoffUrl());
-            expect(logoffURL.origin).toBe(new ABAPSystem(url).uiHostname());
-        });
-
-        it('uses UI hostname, given a non-API url', () => {
-            const url = 'http://first.second.example/some/path?foo=bar&baz=quux';
-            const logoffURL = new URL(new ABAPSystem(url).logoffUrl());
-            expect(logoffURL.origin).toBe(new ABAPSystem(url).uiHostname());
-        });
-    });
-});
diff --git a/packages/axios-extension/test/auth/reentrance-ticket/index.test.ts b/packages/axios-extension/test/auth/reentrance-ticket/index.test.ts
index d64b5cb67e5..0c94dbbdea5 100644
--- a/packages/axios-extension/test/auth/reentrance-ticket/index.test.ts
+++ b/packages/axios-extension/test/auth/reentrance-ticket/index.test.ts
@@ -4,18 +4,20 @@ import type http from 'http';
 import { getReentranceTicket } from '../../../src/auth/reentrance-ticket';
 import { NullTransport, ToolsLogger } from '@sap-ux/logger';
 import open = require('open');
+import nock = require('nock');
 
 jest.mock('open');
 const mockOpen = jest.mocked(open);
 
 describe('getReentranceTicket()', () => {
+    const serverOrigin = 'http://some_url.example';
     const REDIRECT_URL = 'http://redirect_url.example';
     const serverListenSpy = jest.fn();
 
     beforeEach(() => {
         jest.resetAllMocks();
-        jest.spyOn(redirect, 'setupRedirectHandling').mockImplementation(({ resolve }) => {
-            process.nextTick(() => resolve());
+        jest.spyOn(redirect, 'setupRedirectHandling').mockImplementation(({ resolve, backend }) => {
+            resolve({ reentranceTicket: 'some_ticket', backend });
             return {
                 server: {
                     listen: serverListenSpy,
@@ -26,30 +28,34 @@ describe('getReentranceTicket()', () => {
                 redirectUrl: () => REDIRECT_URL
             };
         });
+        nock(serverOrigin)
+            .get('/sap/public/bc/icf/virtualhost')
+            .reply(200, { relatedUrls: { API: serverOrigin, UI: serverOrigin } });
     });
 
     it('sets up a server to listen for the redirect', async () => {
         await getReentranceTicket({
-            backendUrl: 'http://some_url.example',
+            backendUrl: serverOrigin,
             logger: new ToolsLogger({ transports: [new NullTransport()] })
         });
         expect(serverListenSpy).toHaveBeenCalledTimes(1);
     });
 
     it("attempts to open URL in user's default browser for SAML login", async () => {
-        await getReentranceTicket({
-            backendUrl: 'http://some_url.example',
+        const result = await getReentranceTicket({
+            backendUrl: serverOrigin,
             logger: new ToolsLogger({ transports: [new NullTransport()] })
         });
         expect(mockOpen).toHaveBeenCalledWith(expect.stringContaining(REDIRECT_URL));
         // default SCENARIO is FTO1 if none provided via env variable
         expect(mockOpen).toHaveBeenCalledWith(expect.stringContaining('FTO1'));
+        expect(result).toEqual({ reentranceTicket: 'some_ticket', backend: expect.any(Object) });
     });
 
     it('Sets scenario from env variable', async () => {
         process.env.FIORI_TOOLS_SCENARIO = 'MYSCENARIO';
         await getReentranceTicket({
-            backendUrl: 'http://some_url.example',
+            backendUrl: serverOrigin,
             logger: new ToolsLogger({ transports: [new NullTransport()] })
         });
         expect(mockOpen).toHaveBeenCalledWith(expect.stringContaining('MYSCENARIO'));
diff --git a/packages/axios-extension/test/auth/reentrance-ticket/redirect.test.ts b/packages/axios-extension/test/auth/reentrance-ticket/redirect.test.ts
index 5176948d78a..a399e0c940c 100644
--- a/packages/axios-extension/test/auth/reentrance-ticket/redirect.test.ts
+++ b/packages/axios-extension/test/auth/reentrance-ticket/redirect.test.ts
@@ -1,10 +1,11 @@
 import http from 'http';
 import type { SetupRedirectOptions } from '../../../src/auth/reentrance-ticket/redirect';
 import { setupRedirectHandling } from '../../../src/auth/reentrance-ticket/redirect';
-import { ABAPSystem } from '../../../src/auth/reentrance-ticket/abap-system';
+import { ABAPVirtualHostProvider } from '../../../src/auth/reentrance-ticket/abap-virtual-host-provider';
 import { NullTransport, ToolsLogger } from '@sap-ux/logger';
 import { ConnectionError, TimeoutError } from '../../../src/auth';
 import request from 'supertest';
+import nock = require('nock');
 
 describe('setupRedirectHandling()', () => {
     beforeEach(() => {
@@ -22,7 +23,7 @@ describe('setupRedirectHandling()', () => {
             resolve: jest.fn(),
             reject: jest.fn(),
             timeout: 1,
-            backend: new ABAPSystem('http://backend'),
+            backend: options.backend ? options.backend : new ABAPVirtualHostProvider('http://backend'),
             logger: new ToolsLogger({
                 transports: [new NullTransport()]
             }),
@@ -58,6 +59,9 @@ describe('setupRedirectHandling()', () => {
     });
 
     it('calls resolve() with the reentrance ticket', async () => {
+        const uiHostNameSpy = jest
+            .spyOn(ABAPVirtualHostProvider.prototype, `uiHostname`)
+            .mockResolvedValue('http://backend');
         const rejectCallback = jest.fn();
         const resolveCallback = jest.fn();
         const REENTRANCE_TICKET = 'reentrance_ticket';
@@ -69,22 +73,27 @@ describe('setupRedirectHandling()', () => {
         expect(resolveCallback).toHaveBeenCalledWith(expect.objectContaining({ reentranceTicket: REENTRANCE_TICKET }));
     });
 
-    it('calls resolve() with the with API URL', async () => {
+    it('calls resolve() with the with backend (virtual host provider)', async () => {
+        const backedUrl = 'https://backend';
+        const backendUiHost = 'https://backend-ui-host';
         const rejectCallback = jest.fn();
         const resolveCallback = jest.fn();
-        const backedUrl = 'https://backend';
+        const uiHostNameSpy = jest
+            .spyOn(ABAPVirtualHostProvider.prototype, `uiHostname`)
+            .mockResolvedValue(backendUiHost);
+
         const REENTRANCE_TICKET = 'reentrance_ticket';
 
         const { server, redirectUrl } = setup({
             resolve: resolveCallback,
             reject: rejectCallback,
-            backend: new ABAPSystem(backedUrl)
+            backend: new ABAPVirtualHostProvider(backedUrl)
         });
         await request(server).get(`${redirectPath(redirectUrl)}?reentrance-ticket=${REENTRANCE_TICKET}`);
 
         expect(rejectCallback).not.toHaveBeenCalled();
         expect(resolveCallback).toHaveBeenCalledTimes(1);
-        expect(resolveCallback).toHaveBeenCalledWith(expect.objectContaining({ apiUrl: backedUrl + '-api' }));
+        expect(uiHostNameSpy).toHaveBeenCalled();
     });
 
     it('calls reject() when reentrance ticket is missing', async () => {
@@ -95,7 +104,7 @@ describe('setupRedirectHandling()', () => {
         const { server, redirectUrl } = setup({
             resolve: resolveCallback,
             reject: rejectCallback,
-            backend: new ABAPSystem(backedUrl)
+            backend: new ABAPVirtualHostProvider(backedUrl)
         });
         await request(server).get(redirectPath(redirectUrl));
 
diff --git a/packages/axios-extension/test/auth/reentrance-ticket/virtual-host-provider.test.ts b/packages/axios-extension/test/auth/reentrance-ticket/virtual-host-provider.test.ts
new file mode 100644
index 00000000000..7e412473196
--- /dev/null
+++ b/packages/axios-extension/test/auth/reentrance-ticket/virtual-host-provider.test.ts
@@ -0,0 +1,32 @@
+import nock from 'nock';
+import { ABAPVirtualHostProvider } from '../../../src/auth/reentrance-ticket/abap-virtual-host-provider';
+
+describe('ABAPVirtualHostProvider', () => {
+    const backendOrigin = 'https://backend.com';
+    const virtualHosts = {
+        relatedUrls: {
+            API: 'https://some.api.host',
+            UI: 'https://some.web.host/ui'
+        }
+    };
+
+    beforeEach(() => {
+        nock(backendOrigin)
+            .get('/sap/public/bc/icf/virtualhost')
+            .reply(200, virtualHosts)
+            .get('/sap/public/bc/icf/logoff')
+            .reply(200);
+    });
+
+    it('Should retrieve ui and api host name from virtual hosts endpoint', async () => {
+        const vhp = new ABAPVirtualHostProvider(`${backendOrigin}/some/path?foo=bar&baz=quux`);
+        expect(await vhp.uiHostname()).toEqual('https://some.web.host');
+        expect(await vhp.apiHostname()).toEqual(virtualHosts.relatedUrls.API);
+    });
+
+    it('should use virtual ui host name for logoff', async () => {
+        const vhp = new ABAPVirtualHostProvider(`${backendOrigin}/some/path?foo=bar&baz=quux`);
+        const logoffURL = new URL(await vhp.logoffUrl());
+        expect(logoffURL.origin).toEqual('https://some.web.host');
+    });
+});
diff --git a/packages/backend-proxy-middleware/src/base/proxy.ts b/packages/backend-proxy-middleware/src/base/proxy.ts
index ea6097b6d1e..76213f9237e 100644
--- a/packages/backend-proxy-middleware/src/base/proxy.ts
+++ b/packages/backend-proxy-middleware/src/base/proxy.ts
@@ -1,32 +1,31 @@
-import { HttpsProxyAgent } from 'https-proxy-agent';
-import type { ServerOptions } from 'http-proxy';
-import type { RequestHandler, Options } from 'http-proxy-middleware';
-import { createProxyMiddleware } from 'http-proxy-middleware';
-import i18n from 'i18next';
-import type { ClientRequest, IncomingMessage, ServerResponse } from 'http';
-import { ToolsLogger, type Logger, UI5ToolingTransport } from '@sap-ux/logger';
 import { AbapCloudEnvironment, createForAbapOnCloud } from '@sap-ux/axios-extension';
+import type { ServiceInfo } from '@sap-ux/btp-utils';
 import {
-    isAppStudio,
-    getDestinationUrlForAppStudio,
+    BAS_DEST_INSTANCE_CRED_HEADER,
     getCredentialsForDestinationService,
-    listDestinations,
+    getDestinationUrlForAppStudio,
+    isAppStudio,
     isFullUrlDestination,
-    BAS_DEST_INSTANCE_CRED_HEADER
+    listDestinations
 } from '@sap-ux/btp-utils';
-import type { ServiceInfo } from '@sap-ux/btp-utils';
-import type { BackendConfig, DestinationBackendConfig, LocalBackendConfig } from './types';
+import { ToolsLogger, UI5ToolingTransport, type Logger } from '@sap-ux/logger';
+import type { ClientRequest, IncomingMessage, ServerResponse } from 'http';
+import type { ServerOptions } from 'http-proxy';
+import type { Options, RequestHandler } from 'http-proxy-middleware';
+import { createProxyMiddleware } from 'http-proxy-middleware';
+import { HttpsProxyAgent } from 'https-proxy-agent';
+import i18n from 'i18next';
 import translations from './i18n.json';
-
+import type { BackendConfig, DestinationBackendConfig, LocalBackendConfig } from './types';
 import type { ApiHubSettings, ApiHubSettingsKey, ApiHubSettingsService, BackendSystem } from '@sap-ux/store';
 import { AuthenticationType, BackendSystemKey, getService } from '@sap-ux/store';
-import { updateProxyEnv } from './config';
+import type connect from 'connect';
+import type { Request } from 'express';
+import type { Socket } from 'node:net';
 import type { Url } from 'node:url';
-import { addOptionsForEmbeddedBSP } from '../ext/bsp';
 import { getProxyForUrl } from 'proxy-from-env';
-import type { Socket } from 'node:net';
-import type { Request } from 'express';
-import type connect from 'connect';
+import { addOptionsForEmbeddedBSP } from '../ext/bsp';
+import { updateProxyEnv } from './config';
 
 export type EnhancedIncomingMessage = (IncomingMessage & Pick<Request, 'originalUrl'>) | connect.IncomingMessage;
 
@@ -264,16 +263,16 @@ export async function enhanceConfigsForDestination(
  *
  * @param proxyOptions reference to a proxy options object that the function will enhance
  * @param system backend system information (most likely) read from the store
- * @param oAuthRequired if true then the OAuth flow is triggered to get cookies
+ * @param authType determines the authentication protocol to be used
  * @param tokenChangedCallback function to call if a new refreshToken is available
  */
 export async function enhanceConfigForSystem(
     proxyOptions: Options & { headers: object },
     system: BackendSystem | undefined,
-    oAuthRequired: boolean | undefined,
+    authType: AuthenticationType,
     tokenChangedCallback: (refreshToken?: string) => void
 ): Promise<void> {
-    if (oAuthRequired) {
+    if (authType === AuthenticationType.OAuth2RefreshToken) {
         if (system?.serviceKeys) {
             const provider = createForAbapOnCloud({
                 environment: AbapCloudEnvironment.Standalone,
@@ -284,9 +283,9 @@ export async function enhanceConfigForSystem(
             // sending a request to the backend to get token
             await provider.getAtoInfo();
         } else {
-            throw new Error('Cannot connect to ABAP Environment on BTP without service keys.');
+            throw new Error('Cannot connect to ABAP Environment on BTP using OAuth without service keys.');
         }
-    } else if (system?.authenticationType === AuthenticationType.ReentranceTicket) {
+    } else if (system && authType === AuthenticationType.ReentranceTicket) {
         const provider = createForAbapOnCloud({
             ignoreCertErrors: proxyOptions.secure === false,
             environment: AbapCloudEnvironment.EmbeddedSteampunk,
@@ -336,7 +335,6 @@ export async function generateProxyMiddlewareOptions(
         target: backend.url,
         pathRewrite: PathRewriters.getPathRewrite(backend, logger)
     };
-
     // overwrite url if running in AppStudio
     if (isAppStudio()) {
         const destBackend = backend as DestinationBackendConfig;
@@ -346,39 +344,7 @@ export async function generateProxyMiddlewareOptions(
             logger.info('Using destination: ' + destBackend.destination);
         }
     } else {
-        const localBackend = backend as LocalBackendConfig;
-        // check if system credentials are stored in the store
-        try {
-            const systemStore = await getService<BackendSystem, BackendSystemKey>({ logger, entityName: 'system' });
-            const system = (await systemStore.read(
-                new BackendSystemKey({ url: localBackend.url, client: localBackend.client })
-            )) ?? {
-                name: '<unknown>',
-                url: localBackend.url,
-                authenticationType: localBackend.authenticationType
-            };
-            await enhanceConfigForSystem(
-                proxyOptions,
-                system,
-                backend.scp,
-                (refreshToken?: string, accessToken?: string) => {
-                    if (refreshToken) {
-                        logger.info('Updating refresh token for: ' + localBackend.url);
-                        systemStore.write({ ...system, refreshToken }).catch((error) => logger.error(error));
-                    }
-
-                    if (accessToken) {
-                        logger.info('Setting access token');
-                        proxyOptions.headers['authorization'] = `bearer ${accessToken}`;
-                    } else {
-                        logger.warn('Setting of access token failed.');
-                    }
-                }
-            );
-        } catch (error) {
-            logger.warn('Accessing the credentials store failed.');
-            logger.debug(error as object);
-        }
+        await updateProxyConfigFromStore(backend, logger, proxyOptions);
     }
 
     if (!proxyOptions.auth && process.env.FIORI_TOOLS_USER && process.env.FIORI_TOOLS_PASSWORD) {
@@ -411,6 +377,55 @@ export async function generateProxyMiddlewareOptions(
     return proxyOptions;
 }
 
+/**
+ * Determine the correct authentication configuration for connections from a non-BAS platform.
+ *
+ * @param backend the backend config loaded from the yaml config
+ * @param logger a logger instance
+ * @param proxyOptions additional proxy header, request and response settings
+ */
+async function updateProxyConfigFromStore(
+    backend: BackendConfig,
+    logger: ToolsLogger,
+    proxyOptions: Options<IncomingMessage, ServerResponse<IncomingMessage>> & { headers: object }
+) {
+    const localBackend = backend as LocalBackendConfig;
+    // check if system credentials are stored in the store
+    try {
+        const systemStore = await getService<BackendSystem, BackendSystemKey>({ logger, entityName: 'system' });
+        const system = (await systemStore.read(
+            new BackendSystemKey({ url: localBackend.url, client: localBackend.client })
+        )) ?? {
+            name: '<unknown>',
+            url: localBackend.url,
+            authenticationType: localBackend.authenticationType
+        };
+        // Auth type is determined from app config as we may have multiple stored systems with the same url/client using different auth types
+        await enhanceConfigForSystem(
+            proxyOptions,
+            system,
+            localBackend.authenticationType ??
+                (localBackend.scp ? AuthenticationType.OAuth2RefreshToken : AuthenticationType.Basic),
+            (refreshToken?: string, accessToken?: string) => {
+                if (refreshToken) {
+                    logger.info('Updating refresh token for: ' + localBackend.url);
+                    systemStore.write({ ...system, refreshToken }).catch((error) => logger.error(error));
+                }
+
+                if (accessToken) {
+                    logger.info('Setting access token');
+                    proxyOptions.headers['authorization'] = `bearer ${accessToken}`;
+                } else {
+                    logger.warn('Setting of access token failed.');
+                }
+            }
+        );
+    } catch (error) {
+        logger.warn('Accessing the credentials store failed.');
+        logger.debug(error as object);
+    }
+}
+
 /**
  * Generate an instance of the proxy middleware based on the input.
  *
diff --git a/packages/backend-proxy-middleware/test/base/proxy.test.ts b/packages/backend-proxy-middleware/test/base/proxy.test.ts
index 72108f6dad0..ea3e95aca31 100644
--- a/packages/backend-proxy-middleware/test/base/proxy.test.ts
+++ b/packages/backend-proxy-middleware/test/base/proxy.test.ts
@@ -308,7 +308,7 @@ describe('proxy', () => {
         test('simple system', async () => {
             const proxyOptions: OptionsWithHeaders = { headers: {} };
 
-            await enhanceConfigForSystem({ ...proxyOptions }, system, false, jest.fn());
+            await enhanceConfigForSystem({ ...proxyOptions }, system, 'basic', jest.fn());
             expect(proxyOptions).toEqual(proxyOptions);
         });
 
@@ -321,7 +321,7 @@ describe('proxy', () => {
             });
 
             try {
-                await enhanceConfigForSystem({ headers: {} }, system, true, jest.fn());
+                await enhanceConfigForSystem({ headers: {} }, system, 'oauth2', jest.fn());
                 fail('Should have thrown an error because no service keys have been provided.');
             } catch (error) {
                 expect(error).toBeDefined();
@@ -334,7 +334,7 @@ describe('proxy', () => {
                 refreshToken: '~token'
             };
             const callback = jest.fn();
-            await enhanceConfigForSystem(proxyOptions, cloudSystem, true, callback);
+            await enhanceConfigForSystem(proxyOptions, cloudSystem, 'oauth2', callback);
             expect(mockCreateForAbapOnCloud).toHaveBeenCalledWith({
                 environment: AbapCloudEnvironment.Standalone,
                 service: cloudSystem.serviceKeys,
@@ -351,13 +351,13 @@ describe('proxy', () => {
             };
 
             // provided from config
-            await enhanceConfigForSystem(proxyOptions, { ...system, ...creds }, false, jest.fn());
+            await enhanceConfigForSystem(proxyOptions, { ...system, ...creds }, 'basic', jest.fn());
             expect(proxyOptions.auth).toBe(`${creds.username}:${creds.password}`);
 
             // provided from env variables
             process.env.FIORI_TOOLS_USER = creds.username;
             process.env.FIORI_TOOLS_PASSWORD = creds.password;
-            await enhanceConfigForSystem(proxyOptions, system, false, jest.fn());
+            await enhanceConfigForSystem(proxyOptions, system, 'basic', jest.fn());
             expect(proxyOptions.auth).toBe(`${creds.username}:${creds.password}`);
         });
 
@@ -375,7 +375,7 @@ describe('proxy', () => {
                     ...system,
                     authenticationType: AuthenticationType.ReentranceTicket
                 },
-                false,
+                'reentranceTicket',
                 jest.fn()
             );
 
diff --git a/packages/feature-toggle/src/constants.ts b/packages/feature-toggle/src/constants.ts
index 66f168ce002..8320121f75d 100644
--- a/packages/feature-toggle/src/constants.ts
+++ b/packages/feature-toggle/src/constants.ts
@@ -18,8 +18,7 @@ export const tokenToggleGuid: ExtensionConfigKeys = {
     'sap.ux.help.testBetaFeatures.enableFioriAIAppModeler': '165a0e31-35ea-4bee-8d47-b8593435a82g',
     'sap.ux.help.testBetaFeatures.enableFioriAIRapGeneration': '165a0e31-35ea-4bee-8d47-b8593435a82h',
     'sap.ux.applicationModeler.testBetaFeatures.manifestEditor': true,
-    'sap.ux.appGenerator.testBetaFeatures.newAnnotationAPI': true,
-    'sap.ux.appGenerator.testBetaFeatures.disableBtpServiceKeyAuth': false
+    'sap.ux.appGenerator.testBetaFeatures.newAnnotationAPI': true
 } as ExtensionConfigKeys;
 
 export const FeatureToggleKey = 'testBetaFeatures';
diff --git a/packages/fiori-app-sub-generator/src/fiori-app-generator/transforms.ts b/packages/fiori-app-sub-generator/src/fiori-app-generator/transforms.ts
index b42f87c72e9..e88fad958b5 100644
--- a/packages/fiori-app-sub-generator/src/fiori-app-generator/transforms.ts
+++ b/packages/fiori-app-sub-generator/src/fiori-app-generator/transforms.ts
@@ -241,17 +241,16 @@ export async function transformState<T>(
         if (
             service.destinationAuthType === DestinationAuthType.SAML_ASSERTION ||
             service.connectedSystem?.destination?.Authentication === DestinationAuthType.SAML_ASSERTION ||
-            AuthenticationType.ReentranceTicket === service.connectedSystem?.backendSystem?.authenticationType
-        ) {
-            appConfig.service.previewSettings = { authenticationType: AuthenticationType.ReentranceTicket };
-        } else if (
+            AuthenticationType.ReentranceTicket === service.connectedSystem?.backendSystem?.authenticationType ||
+            // Apps generated with stored service keys (legacy) will use re-entrance tickets for connectivity
+            // New stored systems will only use re-entrance
             service.connectedSystem?.backendSystem?.serviceKeys ||
-            // If 'cloud' write `scp` property to yamls to enable preview on VSCode (using oAuth)
+            // If 'cloud' this will enable preview on VSCode (using re-entrance) for app portability
             (getHostEnvironment() === hostEnvironment.bas &&
                 service.connectedSystem?.destination &&
                 isAbapEnvironmentOnBtp(service.connectedSystem?.destination))
         ) {
-            appConfig.service.previewSettings = { scp: true };
+            appConfig.service.previewSettings = { authenticationType: AuthenticationType.ReentranceTicket };
         } else if (service.apiHubConfig) {
             appConfig.service.previewSettings = { apiHub: true };
         }
diff --git a/packages/fiori-app-sub-generator/src/fiori-app-generator/writing.ts b/packages/fiori-app-sub-generator/src/fiori-app-generator/writing.ts
index e504f06ffd3..3d2e55c8f85 100644
--- a/packages/fiori-app-sub-generator/src/fiori-app-generator/writing.ts
+++ b/packages/fiori-app-sub-generator/src/fiori-app-generator/writing.ts
@@ -4,7 +4,7 @@ import type { Editor } from 'mem-fs-editor';
 import { basename, join } from 'node:path';
 import type { ApiHubConfig, State } from '../types';
 import { DEFAULT_CAP_HOST } from '../types';
-import { getLaunchText, getReadMeDataSourceLabel, isBTPHosted, t } from '../utils';
+import { getLaunchText, getReadMeDataSourceLabel, isAbapCloud, t } from '../utils';
 
 /**
  * Writes app related information files - README.md & .appGenInfo.json.
@@ -36,7 +36,7 @@ export async function writeAppGenInfoFiles(
 
     const datasourceLabel = getReadMeDataSourceLabel(
         service.source,
-        isBTPHosted(service.connectedSystem),
+        isAbapCloud(service.connectedSystem),
         service.apiHubConfig?.apiHubType
     );
 
diff --git a/packages/fiori-app-sub-generator/src/translations/fioriAppSubGenerator.i18n.json b/packages/fiori-app-sub-generator/src/translations/fioriAppSubGenerator.i18n.json
index e2392b34cfd..cd25d204f76 100644
--- a/packages/fiori-app-sub-generator/src/translations/fioriAppSubGenerator.i18n.json
+++ b/packages/fiori-app-sub-generator/src/translations/fioriAppSubGenerator.i18n.json
@@ -30,9 +30,8 @@
             "filterEntityType": "Filter Entity Type",
             "navigationEntity": "Navigation Entity",
             "sapSystemType": {
-                "abapOnBtp": "ABAP Environment on SAP Business Technology Platform",
-                "s4hc": "SAP S/4HANA Cloud Environment",
-                "onPrem": "ABAP On-Premise"
+                "onPrem": "ABAP On-Premise",
+                "abapCloud": "ABAP Cloud"
             },
             "datasourceType": {
                 "sapSystem": "SAP System",
diff --git a/packages/fiori-app-sub-generator/src/types/constants.ts b/packages/fiori-app-sub-generator/src/types/constants.ts
index 181fda4d144..8ba781c11a0 100644
--- a/packages/fiori-app-sub-generator/src/types/constants.ts
+++ b/packages/fiori-app-sub-generator/src/types/constants.ts
@@ -5,9 +5,8 @@ export const LEGACY_CAP_TYPE_NODE = 'capNode';
 export const LEGACY_CAP_TYPE_JAVA = 'capJava';
 
 export const enum SapSystemSourceType {
-    SCP = 'abapOnBtp',
-    ON_PREM = 'onPrem',
-    S4HC = 's4hc'
+    ABAP_CLOUD = 'abapCloud',
+    ON_PREM = 'onPrem'
 }
 
 export const PLATFORMS = {
diff --git a/packages/fiori-app-sub-generator/src/utils/common.ts b/packages/fiori-app-sub-generator/src/utils/common.ts
index 24a83e99d42..f49b6e353d1 100644
--- a/packages/fiori-app-sub-generator/src/utils/common.ts
+++ b/packages/fiori-app-sub-generator/src/utils/common.ts
@@ -27,6 +27,7 @@ import { ApiHubType, SapSystemSourceType, FloorplanFE, minUi5VersionForPageBuild
 import { minSupportedUi5Version, minSupportedUi5VersionV4 } from '../types/constants';
 import { type Floorplan, FloorplanAttributes, FloorplanFF } from '../types/external';
 import { t } from './i18n';
+import { getBackendSystemType } from '@sap-ux/store';
 
 /**
  * Parse the specified edmx string for validitiy and return the ODataVersion of the specified edmx string.
@@ -165,33 +166,32 @@ export async function getCdsAnnotations(
 }
 
 /**
- * Determine if the specified connected system is hosted on BTP.
- * If a backend system uses service keys, or a destination is an ABAP environment on BTP, then it is considered to be hosted on BTP.
+ * Determine if the specified connected system is ABAP cloud.
  *
  * @param connectedSystem - The connected system object.
- * @returns {boolean} `true` if the connected system is hosted on BTP, otherwise `false`.
+ * @returns {boolean} `true` if the connected system is ABAP cloud, otherwise `false`.
  */
-export function isBTPHosted(connectedSystem?: ConnectedSystem): boolean {
-    return (
-        !!connectedSystem?.backendSystem?.serviceKeys ||
-        (connectedSystem?.destination ? isAbapEnvironmentOnBtp(connectedSystem.destination) : false)
-    );
+export function isAbapCloud(connectedSystem?: ConnectedSystem): boolean {
+    if (connectedSystem?.backendSystem) {
+        return getBackendSystemType(connectedSystem.backendSystem) === 'AbapCloud';
+    }
+    return connectedSystem?.destination ? isAbapEnvironmentOnBtp(connectedSystem.destination) : false;
 }
 
 /**
  * Retrieves the data source label.
  *
  * @param {DatasourceType} source - The data source type (`DatasourceType.sapSystem` or `DatasourceType.businessHub`).
- * @param scp
+ * @param abapCloud - Indicates if the SAP system is an ABAP Cloud system (BTP or S4HC).
  * @param {ApiHubType} apiHubType - The API hub type for business hubs.
  * @returns {string} The formatted data source label.
  */
-export function getReadMeDataSourceLabel(source: DatasourceType, scp = false, apiHubType?: ApiHubType): string {
+export function getReadMeDataSourceLabel(source: DatasourceType, abapCloud = false, apiHubType?: ApiHubType): string {
     let dataSourceLabel: string | undefined;
     if (source === DatasourceType.sapSystem) {
         const labelDatasourceType = t(`readme.label.datasourceType.${DatasourceType.sapSystem}`);
         const labelSystemType = t(
-            `readme.label.sapSystemType.${scp ? SapSystemSourceType.SCP : SapSystemSourceType.ON_PREM}`
+            `readme.label.sapSystemType.${abapCloud ? SapSystemSourceType.ABAP_CLOUD : SapSystemSourceType.ON_PREM}`
         );
         dataSourceLabel = `${labelDatasourceType} (${labelSystemType})`;
     } else if (source === DatasourceType.businessHub && apiHubType === ApiHubType.apiHubEnterprise) {
diff --git a/packages/fiori-app-sub-generator/src/utils/telemetry.ts b/packages/fiori-app-sub-generator/src/utils/telemetry.ts
index 7046d148bcf..a68643b5de9 100644
--- a/packages/fiori-app-sub-generator/src/utils/telemetry.ts
+++ b/packages/fiori-app-sub-generator/src/utils/telemetry.ts
@@ -1,6 +1,6 @@
 import { isOnPremiseDestination } from '@sap-ux/btp-utils';
 import { ApiHubType, type TelemetryBusinessHubType, type TelemetrySapSystemType } from '../types';
-import { isBTPHosted } from './common';
+import { isAbapCloud } from './common';
 import type { ConnectedSystem } from '@sap-ux/odata-service-inquirer';
 
 /**
@@ -10,8 +10,8 @@ import type { ConnectedSystem } from '@sap-ux/odata-service-inquirer';
  * @returns
  */
 export function getTelemetrySapSystemType(connectedSystem: ConnectedSystem): TelemetrySapSystemType | undefined {
-    if (isBTPHosted(connectedSystem)) {
-        return 'SCP';
+    if (isAbapCloud(connectedSystem)) {
+        return 'SCP'; // Legacy term, leaving as is to support telem conmtinuity
     }
 
     if (
@@ -20,7 +20,8 @@ export function getTelemetrySapSystemType(connectedSystem: ConnectedSystem): Tel
     ) {
         return 'ABAP';
     }
-    // The only remaining case is CF on VSCode
+    // This wont ever be the case now as all reentrance ticket based connections are to Abap Cloud regardless of how the system was discovered
+    // This can probably be removed
     if (connectedSystem?.serviceProvider) {
         return 'CF';
     }
diff --git a/packages/fiori-app-sub-generator/test/int/fiori-elements/expected-output/lrop_v2_sap_system/.appGenInfo.json b/packages/fiori-app-sub-generator/test/int/fiori-elements/expected-output/lrop_v2_sap_system/.appGenInfo.json
index 63c76cab411..99c4172db73 100644
--- a/packages/fiori-app-sub-generator/test/int/fiori-elements/expected-output/lrop_v2_sap_system/.appGenInfo.json
+++ b/packages/fiori-app-sub-generator/test/int/fiori-elements/expected-output/lrop_v2_sap_system/.appGenInfo.json
@@ -1,8 +1,8 @@
 {
   "generationParameters": {
-    "generationDate": "Tue Jun 24 2025 22:45:01 GMT+0100 (Irish Standard Time)",
+    "generationDate": "Tue Sep 30 2025 16:47:22 GMT+0100 (Irish Standard Time)",
     "generatorPlatform": "CLI",
-    "serviceType": "SAP System (ABAP Environment on SAP Business Technology Platform)",
+    "serviceType": "SAP System (ABAP Cloud)",
     "metadataFilename": "",
     "serviceUrl": "https://abap.cloud.host/sap/opu/odata/sap/SEPMRA_PROD_MAN",
     "appName": "lrop_v2_sap_system",
diff --git a/packages/fiori-app-sub-generator/test/int/fiori-elements/expected-output/lrop_v2_sap_system/README.md b/packages/fiori-app-sub-generator/test/int/fiori-elements/expected-output/lrop_v2_sap_system/README.md
index e53f868813d..cdf1e7d57f1 100644
--- a/packages/fiori-app-sub-generator/test/int/fiori-elements/expected-output/lrop_v2_sap_system/README.md
+++ b/packages/fiori-app-sub-generator/test/int/fiori-elements/expected-output/lrop_v2_sap_system/README.md
@@ -1,12 +1,12 @@
 ## Application Details
 |               |
 | ------------- |
-|**Generation Date and Time**<br>Tue Jun 24 2025 22:45:01 GMT+0100 (Irish Standard Time)|
+|**Generation Date and Time**<br>Tue Sep 30 2025 16:47:22 GMT+0100 (Irish Standard Time)|
 |**App Generator**<br>SAP Fiori Application Generator|
 |**App Generator Version**<br>0.0.0|
 |**Generation Platform**<br>CLI|
 |**Template Used**<br>List Report Page V2|
-|**Service Type**<br>SAP System (ABAP Environment on SAP Business Technology Platform)|
+|**Service Type**<br>SAP System (ABAP Cloud)|
 |**Service URL**<br>https://abap.cloud.host/sap/opu/odata/sap/SEPMRA_PROD_MAN|
 |**Module Name**<br>lrop_v2_sap_system|
 |**Application Title**<br>Project&#39;s &#34;Title&#34;|
diff --git a/packages/fiori-app-sub-generator/test/int/fiori-elements/expected-output/lrop_v2_sap_system/ui5-local.yaml b/packages/fiori-app-sub-generator/test/int/fiori-elements/expected-output/lrop_v2_sap_system/ui5-local.yaml
index 6767f3d2d5a..0f62c5d082c 100644
--- a/packages/fiori-app-sub-generator/test/int/fiori-elements/expected-output/lrop_v2_sap_system/ui5-local.yaml
+++ b/packages/fiori-app-sub-generator/test/int/fiori-elements/expected-output/lrop_v2_sap_system/ui5-local.yaml
@@ -34,7 +34,7 @@ server:
       configuration:
         ignoreCertErrors: false # If set to true, certificate errors will be ignored. E.g. self-signed certificates will be accepted
         backend:
-          - scp: true
+          - authenticationType: reentranceTicket # SAML support for vscode
             path: /sap
             url: https://abap.cloud.host
     - name: sap-fe-mockserver
diff --git a/packages/fiori-app-sub-generator/test/int/fiori-elements/expected-output/lrop_v2_sap_system/ui5-mock.yaml b/packages/fiori-app-sub-generator/test/int/fiori-elements/expected-output/lrop_v2_sap_system/ui5-mock.yaml
index 5a4f5c38942..2e471b04785 100644
--- a/packages/fiori-app-sub-generator/test/int/fiori-elements/expected-output/lrop_v2_sap_system/ui5-mock.yaml
+++ b/packages/fiori-app-sub-generator/test/int/fiori-elements/expected-output/lrop_v2_sap_system/ui5-mock.yaml
@@ -16,7 +16,7 @@ server:
             - /test-resources
           url: https://ui5.sap.com
         backend:
-          - scp: true
+          - authenticationType: reentranceTicket # SAML support for vscode
             path: /sap
             url: https://abap.cloud.host
     - name: fiori-tools-appreload
diff --git a/packages/fiori-app-sub-generator/test/int/fiori-elements/expected-output/lrop_v2_sap_system/ui5.yaml b/packages/fiori-app-sub-generator/test/int/fiori-elements/expected-output/lrop_v2_sap_system/ui5.yaml
index 242e850f164..da57f7b1624 100644
--- a/packages/fiori-app-sub-generator/test/int/fiori-elements/expected-output/lrop_v2_sap_system/ui5.yaml
+++ b/packages/fiori-app-sub-generator/test/int/fiori-elements/expected-output/lrop_v2_sap_system/ui5.yaml
@@ -16,7 +16,7 @@ server:
             - /test-resources
           url: https://ui5.sap.com
         backend:
-          - scp: true
+          - authenticationType: reentranceTicket # SAML support for vscode
             path: /sap
             url: https://abap.cloud.host
     - name: fiori-tools-appreload
diff --git a/packages/fiori-app-sub-generator/test/unit/fiori-app-generator/transforms.test.ts b/packages/fiori-app-sub-generator/test/unit/fiori-app-generator/transforms.test.ts
index 5771284d032..80c5adbc40e 100644
--- a/packages/fiori-app-sub-generator/test/unit/fiori-app-generator/transforms.test.ts
+++ b/packages/fiori-app-sub-generator/test/unit/fiori-app-generator/transforms.test.ts
@@ -86,7 +86,7 @@ describe('Test transform state', () => {
         expect(ffApp.service?.previewSettings?.authenticationType).toEqual(AuthenticationType.ReentranceTicket);
     });
 
-    test('should return preview setting `scp`', async () => {
+    test('should set preview setting `authenticationType` correctly', async () => {
         const state: State = {
             ...baseState,
             service: {
@@ -104,8 +104,10 @@ describe('Test transform state', () => {
         (getHostEnvironment as jest.Mock).mockReturnValue(hostEnvironment.bas);
 
         let ffApp = await transformState<FreestyleApp<BasicAppSettings>>(state);
-        expect(ffApp.service?.previewSettings?.scp).toBe(true);
+        // All cloud systems support reentrance this supports BAS -> VSCode portability
+        expect(ffApp.service?.previewSettings?.authenticationType).toBe('reentranceTicket');
 
+        // Should support legacy service key backend system entries, using reentrance tickets in new apps
         state.service!.connectedSystem = {
             backendSystem: {
                 serviceKeys: { any: 'thing' },
@@ -116,7 +118,7 @@ describe('Test transform state', () => {
         } as Service['connectedSystem'];
 
         ffApp = await transformState<FreestyleApp<BasicAppSettings>>(state);
-        expect(ffApp.service?.previewSettings?.scp).toBe(true);
+        expect(ffApp.service?.previewSettings?.authenticationType).toBe('reentranceTicket');
     });
 
     test('should return preview setting `apiHub`', async () => {
diff --git a/packages/fiori-app-sub-generator/test/unit/utils/common.test.ts b/packages/fiori-app-sub-generator/test/unit/utils/common.test.ts
index 712f2cdf32e..4543c29e173 100644
--- a/packages/fiori-app-sub-generator/test/unit/utils/common.test.ts
+++ b/packages/fiori-app-sub-generator/test/unit/utils/common.test.ts
@@ -222,7 +222,9 @@ describe('Test utils', () => {
         let result = getReadMeDataSourceLabel(source, true);
         const labelDatasourceType = t(`readme.label.datasourceType.${source}`);
 
-        expect(result).toBe(`${labelDatasourceType} (${t(`readme.label.sapSystemType.${SapSystemSourceType.SCP}`)})`);
+        expect(result).toBe(
+            `${labelDatasourceType} (${t(`readme.label.sapSystemType.${SapSystemSourceType.ABAP_CLOUD}`)})`
+        );
 
         result = getReadMeDataSourceLabel(source);
         expect(result).toBe(
diff --git a/packages/fiori-generator-shared/package.json b/packages/fiori-generator-shared/package.json
index 745775c6e33..133b86e0c53 100644
--- a/packages/fiori-generator-shared/package.json
+++ b/packages/fiori-generator-shared/package.json
@@ -46,7 +46,8 @@
         "@types/vscode": "1.73.1",
         "@types/yeoman-environment": "2.10.11",
         "@sap-ux/axios-extension": "workspace:*",
-        "@sap-ux/logger": "workspace:*"
+        "@sap-ux/logger": "workspace:*",
+        "@sap-ux/store": "workspace:*"
     },
     "engines": {
         "node": ">=20.x"
diff --git a/packages/fiori-generator-shared/src/logging/logWrapper.ts b/packages/fiori-generator-shared/src/logging/logWrapper.ts
index 50d94312912..3d1010e7e59 100644
--- a/packages/fiori-generator-shared/src/logging/logWrapper.ts
+++ b/packages/fiori-generator-shared/src/logging/logWrapper.ts
@@ -132,7 +132,7 @@ export class LogWrapper implements ILogWrapper, SapUxLogger {
             }
             LogWrapper._logLevel = logLevel === 'off' || !logLevel ? 'info' : logLevel;
         }
-        LogWrapper._vscodeLogger?.debug(t('debug.loggingConfigured', { logLevel: LogWrapper._logLevel }));
+        LogWrapper._vscodeLogger?.debug(t('logMessages.debug.loggingConfigured', { logLevel: LogWrapper._logLevel }));
     }
 
     static readonly logAtLevel = (level: LogLevel, message: string | object, ...args: any[]) => {
@@ -156,7 +156,7 @@ export class LogWrapper implements ILogWrapper, SapUxLogger {
                 );
             }
         } else {
-            DefaultLogger.error(t('error.logWrapperNotInitialised'));
+            DefaultLogger.error(t('logMessages.error.logWrapperNotInitialised'));
         }
     };
 
diff --git a/packages/fiori-generator-shared/src/npm-package-scripts/getPackageScripts.ts b/packages/fiori-generator-shared/src/npm-package-scripts/getPackageScripts.ts
index dedf59c686e..912c60d0c4b 100644
--- a/packages/fiori-generator-shared/src/npm-package-scripts/getPackageScripts.ts
+++ b/packages/fiori-generator-shared/src/npm-package-scripts/getPackageScripts.ts
@@ -18,7 +18,7 @@ function buildStartNoFLPCommand(localOnly: boolean, searchParams?: URLSearchPara
     const searchParamString = searchParams?.toString();
     const searchParam = searchParamString ? `?${searchParamString}` : '';
     if (localOnly) {
-        return `echo \\"${t('info.mockOnlyWarning')}\\"`;
+        return `echo \\"${t('logMessages.info.mockOnlyWarning')}\\"`;
     }
     return `fiori run --open "/index.html${searchParam}"`;
 }
@@ -51,7 +51,7 @@ function buildParams(searchParams?: URLSearchParams, flpAppId?: string): string
  */
 function buildStartCommand(localOnly: boolean, params: string, startFile?: string): string {
     if (localOnly) {
-        return `echo \\"${t('info.mockOnlyWarning')}\\"`;
+        return `echo \\"${t('logMessages.info.mockOnlyWarning')}\\"`;
     }
     return `fiori run --open "${startFile ?? SCRIPT_FLP_SANDBOX}${params}"`;
 }
@@ -133,7 +133,7 @@ export function getPackageScripts({
     }
 
     scripts['start-variants-management'] = localOnly
-        ? `echo \\"${t('info.mockOnlyWarning')}\\"`
+        ? `echo \\"${t('logMessages.info.mockOnlyWarning')}\\"`
         : getVariantPreviewAppScript(!supportVirtualEndpoints, flpAppId);
 
     return scripts;
diff --git a/packages/fiori-generator-shared/src/system-utils.ts b/packages/fiori-generator-shared/src/system-utils.ts
index 22b07220867..2780e1a3d96 100644
--- a/packages/fiori-generator-shared/src/system-utils.ts
+++ b/packages/fiori-generator-shared/src/system-utils.ts
@@ -1,31 +1,15 @@
-/**
- * Relevant values for display extended system properties to the UI
- */
-export enum Suffix {
-    S4HC = 'S4HC',
-    BTP = 'BTP'
-}
+import { t } from './i18n';
+import type { BackendSystem } from '@sap-ux/store';
 
 /**
- * Escape any special RegExp character that we want to use literally.
+ * Creates and returns a display name for the system, appending the system type and user display name if available.
  *
- * @param str string input
- * @returns string a cleansed version of the input
+ * @param system the backend system to create a display name for
+ * @returns the display name for the system
  */
-function escapeRegExp(str: string): string {
-    return str.replace(/[.*+?^${}()|[\]\\]/g, '\\$&'); // $& means the whole matched string
-}
-
-/**
- * Trim, cleanse and return a system name appended with the appropriate suffix i.e. BTP | S4HC.
- *
- * @param systemName name of the system
- * @param suffix the appropriate suffix appended, BTP | S4HC
- * @returns string return an escaped string, appended with the appropriate suffix
- */
-function addSuffix(systemName: string, suffix: Suffix): string {
-    const suffixStr = ` (${suffix})`;
-    return RegExp(`${escapeRegExp(suffixStr)}$`).exec(systemName.trim()) ? systemName : `${systemName} (${suffix})`;
+export function getBackendSystemDisplayName(system: BackendSystem): string {
+    const systemTypeName = getSystemDisplayName(system.name, system.userDisplayName, system.systemType);
+    return systemTypeName;
 }
 
 /**
@@ -33,24 +17,26 @@ function addSuffix(systemName: string, suffix: Suffix): string {
  *
  * @param systemName - system name
  * @param displayUsername - display username
- * @param isBtp - is BTP
- * @param isS4HC - is S/4 Hana Cloud
+ * @param systemType - 'ABAPCloud' or undefined
  * @returns system display name
  */
-export function getSystemDisplayName(
-    systemName: string,
-    displayUsername?: string,
-    isBtp = false,
-    isS4HC = false
-): string {
+export function getSystemDisplayName(systemName: string, displayUsername?: string, systemType?: string): string {
     const userDisplayName = displayUsername ? ` [${displayUsername}]` : '';
-    let systemDisplayName: string;
-    if (isBtp) {
-        systemDisplayName = addSuffix(systemName, Suffix.BTP);
-    } else if (isS4HC) {
-        systemDisplayName = addSuffix(systemName, Suffix.S4HC);
-    } else {
-        systemDisplayName = systemName;
+    return `${systemName}${getSystemTypeLabel(systemType)}${userDisplayName}`;
+}
+
+/**
+ * Returns the formatted system type name for the given backend system.
+ *
+ * @param systemType the system type to get the parenthesised name for
+ * @returns system type name formatted as a string, e.g. " (ABAP Cloud)".
+ */
+function getSystemTypeLabel(systemType?: string): string {
+    let systemTypeName = ''; // for on prem we do not show the system type
+    const abapCloudLabel = ` (${t('texts.systemTypeLabel.abapCloud')})`;
+    // Legacy store system types will now display as ABAP Cloud
+    if (systemType === 'ABAPCloud' || systemType === 'S4HC' || systemType === 'BTP') {
+        systemTypeName = abapCloudLabel;
     }
-    return `${systemDisplayName}${userDisplayName}`;
+    return systemTypeName;
 }
diff --git a/packages/fiori-generator-shared/src/translations/fiori-generator-shared.i18n.json b/packages/fiori-generator-shared/src/translations/fiori-generator-shared.i18n.json
index bfd18c24f48..e4cf17a8db7 100644
--- a/packages/fiori-generator-shared/src/translations/fiori-generator-shared.i18n.json
+++ b/packages/fiori-generator-shared/src/translations/fiori-generator-shared.i18n.json
@@ -1,14 +1,21 @@
 {
-    "info": {
-        "mockOnlyWarning": "This application was generated with a local metadata file and does not reference a live server. Please add the required server configuration or start this application with mock data using the target: `npm run start-mock`."
-    },
-    "error": {
-        "logWrapperNotInitialised": "`LogWrapper` is not initialised."
-    },
-    "debug": {
-        "loggingConfigured": "Logging has been configured at log level: {{logLevel}}."
+    "logMessages": {
+        "info": {
+            "mockOnlyWarning": "This application was generated with a local metadata file and does not reference a live server. Please add the required server configuration or start this application with mock data using the target: `npm run start-mock`."
+        },
+        "error": {
+            "logWrapperNotInitialised": "`LogWrapper` is not initialised."
+        },
+        "debug": {
+            "loggingConfigured": "Logging has been configured at log level: {{logLevel}}."
+        }
     },
     "telemetry": {
         "unknownOs": "Unknown"
+    },
+    "texts": {
+        "systemTypeLabel": {
+            "abapCloud": "ABAP Cloud"
+        }
     }
 }
diff --git a/packages/fiori-generator-shared/test/system-utils.test.ts b/packages/fiori-generator-shared/test/system-utils.test.ts
index 2d6dfe93137..5d19ec7299b 100644
--- a/packages/fiori-generator-shared/test/system-utils.test.ts
+++ b/packages/fiori-generator-shared/test/system-utils.test.ts
@@ -4,24 +4,28 @@ describe('Test SystemUtils', () => {
     describe('getSystemDisplayName', () => {
         test.each([
             // Basic scenario
-            ['System1', undefined, false, false, 'System1'],
-            ['System1', 'User1', false, false, 'System1 [User1]'],
+            ['System1', undefined, undefined, 'System1'],
+            ['System1', 'User1', undefined, 'System1 [User1]'],
 
-            // BTP scenario
-            ['System2', undefined, true, false, 'System2 (BTP)'],
-            ['System2', 'User2', true, false, 'System2 (BTP) [User2]'],
+            // ABAP Cloud
+            ['System1', undefined, 'ABAPCloud', 'System1 (ABAP Cloud)'],
+            ['System1', 'User1', 'ABAPCloud', 'System1 (ABAP Cloud) [User1]'],
 
-            // S/4HANA Cloud scenario
-            ['System3', undefined, false, true, 'System3 (S4HC)'],
-            ['System3', 'User3', false, true, 'System3 (S4HC) [User3]'],
+            // Legacy stored BTP scenario
+            ['System2', undefined, 'BTP', 'System2 (ABAP Cloud)'],
+            ['System2', 'User2', 'BTP', 'System2 (ABAP Cloud) [User2]'],
+
+            // Legacy stored S/4HANA Cloud scenario
+            ['System3', undefined, 'S4HC', 'System3 (ABAP Cloud)'],
+            ['System3', 'User3', 'S4HC', 'System3 (ABAP Cloud) [User3]'],
 
             // No suffix scenario
-            ['System5', undefined, false, false, 'System5'],
-            ['System5', 'User5', false, false, 'System5 [User5]']
+            ['System5', undefined, undefined, 'System5'],
+            ['System5', 'User5', undefined, 'System5 [User5]']
         ])(
-            'returns correct display name for systemName: %s, displayUsername: %s, isBtp: %s, isS4HC: %s',
-            (systemName, displayUsername, isBtp, isS4HC, expected) => {
-                const result = getSystemDisplayName(systemName, displayUsername, isBtp, isS4HC);
+            'returns correct display name for systemName: %s, displayUsername: %s, systemType: %s',
+            (systemName, displayUsername, systemType, expected) => {
+                const result = getSystemDisplayName(systemName, displayUsername, systemType);
                 expect(result).toBe(expected);
             }
         );
diff --git a/packages/fiori-generator-shared/tsconfig.json b/packages/fiori-generator-shared/tsconfig.json
index 83048393f74..4f2f7ced8ca 100644
--- a/packages/fiori-generator-shared/tsconfig.json
+++ b/packages/fiori-generator-shared/tsconfig.json
@@ -21,6 +21,9 @@
     {
       "path": "../project-access"
     },
+    {
+      "path": "../store"
+    },
     {
       "path": "../telemetry"
     }
diff --git a/packages/odata-service-inquirer/src/prompts/connectionValidator.ts b/packages/odata-service-inquirer/src/prompts/connectionValidator.ts
index e458c4f8ac8..b1e5c39e8bc 100644
--- a/packages/odata-service-inquirer/src/prompts/connectionValidator.ts
+++ b/packages/odata-service-inquirer/src/prompts/connectionValidator.ts
@@ -343,6 +343,9 @@ export class ConnectionValidator {
 
             if (isSystem) {
                 await this.createSystemConnection({ axiosConfig, url, odataVersion });
+                const systemInfo = await (this.serviceProvider as AbapServiceProvider).getSystemInfo();
+                this._connectedUserName = systemInfo?.userName;
+                this._connectedSystemName = systemInfo?.systemID;
             } else {
                 // Full service URL
                 await this.createOdataServiceConnection(axiosConfig, url.pathname);
@@ -383,7 +386,8 @@ export class ConnectionValidator {
             ignoreCertErrors: ignoreCertError,
             cookies: '',
             baseURL: url.origin,
-            url: url.pathname
+            url: url.pathname,
+            logger: LoggerHelper.logger
         };
 
         if (username && password) {
@@ -486,7 +490,6 @@ export class ConnectionValidator {
      * @param connectConfig.serviceInfo the service info
      * @param connectConfig.odataVersion the odata version to restrict the catalog requests if only a specific version is required
      * @param connectConfig.destination the destination to connect with
-     * @param connectConfig.refreshToken
      * @throws an error if the connection attempt fails, callers should handle the error
      */
     private async createSystemConnection({
@@ -494,21 +497,19 @@ export class ConnectionValidator {
         url,
         serviceInfo,
         destination,
-        odataVersion,
-        refreshToken
+        odataVersion
     }: {
         axiosConfig?: AxiosExtensionRequestConfig & ProviderConfiguration;
         url?: URL;
         serviceInfo?: ServiceInfo;
         destination?: Destination;
         odataVersion?: ODataVersion;
-        refreshToken?: string;
     }): Promise<void> {
         this.resetConnectionState();
         this.resetValidity();
 
         if (this.systemAuthType === 'reentranceTicket' || this.systemAuthType === 'serviceKey') {
-            this._serviceProvider = this.getAbapOnCloudServiceProvider(url, serviceInfo, refreshToken);
+            this._serviceProvider = this.getAbapOnCloudServiceProvider(url, serviceInfo);
         } else if (destination) {
             // Assumption: the destination configured URL is a valid URL, will be needed later for basic auth error handling
             this._validatedUrl = getDestinationUrlForAppStudio(destination.Name);
@@ -610,7 +611,7 @@ export class ConnectionValidator {
     }
 
     /**
-     * Get the service provider for the Abap on Cloud environment.
+     * Get the service provider for the Abap Cloud environment.
      *
      * @param url the system url
      * @param serviceInfo the service info
@@ -625,7 +626,8 @@ export class ConnectionValidator {
         if (this.systemAuthType === 'reentranceTicket' && url) {
             return createForAbapOnCloud({
                 environment: AbapCloudEnvironment.EmbeddedSteampunk,
-                url: new URL(url.pathname, url.origin).toString()
+                url: new URL(url.pathname, url.origin).toString(),
+                logger: LoggerHelper.logger
             });
         }
 
@@ -634,7 +636,8 @@ export class ConnectionValidator {
                 environment: AbapCloudEnvironment.Standalone,
                 service: serviceInfo,
                 refreshToken,
-                refreshTokenChangedCb: this.refreshTokenChangedCb.bind(this)
+                refreshTokenChangedCb: this.refreshTokenChangedCb.bind(this),
+                logger: LoggerHelper.logger
             });
         }
 
@@ -648,14 +651,9 @@ export class ConnectionValidator {
      *
      * @param serviceInfo the service info containing the UAA details
      * @param odataVersion the odata version to restrict the catalog requests if only a specific version is required
-     * @param refreshToken the refresh token for the Abap on Cloud environment, will be used to avoid re-authentication while the token is valid
      * @returns true if the system is reachable and authenticated, if required, false if not, or an error message string
      */
-    public async validateServiceInfo(
-        serviceInfo: ServiceInfo,
-        odataVersion?: ODataVersion,
-        refreshToken?: string
-    ): Promise<ValidationResult> {
+    public async validateServiceInfo(serviceInfo: ServiceInfo, odataVersion?: ODataVersion): Promise<ValidationResult> {
         if (!serviceInfo) {
             return false;
         }
@@ -668,7 +666,7 @@ export class ConnectionValidator {
         }
         try {
             this.systemAuthType = 'serviceKey';
-            await this.createSystemConnection({ serviceInfo, odataVersion, refreshToken });
+            await this.createSystemConnection({ serviceInfo, odataVersion });
             // Cache the user info
             this._connectedUserName = await (this.serviceProvider as AbapServiceProvider).user();
             this._serviceInfo = serviceInfo;
@@ -819,6 +817,9 @@ export class ConnectionValidator {
             this.validity.urlFormat = false;
             return false;
         }
+        if (systemAuthType) {
+            this.systemAuthType = systemAuthType;
+        }
         let url: URL;
         try {
             // Check if the url is valid
@@ -826,13 +827,16 @@ export class ConnectionValidator {
             if (url.origin === 'null') {
                 return t('errors.invalidUrl', { input: serviceUrl });
             }
+            // Dont allow non origin URLs in for re-entrance tickets as the error handling would become complex to analyize.
+            // The connection may succeed but later we will get auth errors since axios-extension does not validate this.
+            // The new system name would also include the additional paths which would not make sense either.
+            if (this.systemAuthType === 'reentranceTicket' && !(url.pathname.length === 0 || url.pathname === '/')) {
+                return t('prompts.validationMessages.reentranceTicketSystemHostOnly');
+            }
         } catch (error) {
             return t('errors.invalidUrl', { input: serviceUrl });
         }
 
-        if (systemAuthType) {
-            this.systemAuthType = systemAuthType;
-        }
         try {
             if (!forceReValidation && this.isUrlValidated(serviceUrl)) {
                 return this.validity.reachable ?? false;
diff --git a/packages/odata-service-inquirer/src/prompts/datasources/sap-system/abap-on-btp/questions.ts b/packages/odata-service-inquirer/src/prompts/datasources/sap-system/abap-on-btp/questions.ts
index 698b3aa4069..ca714a692f3 100644
--- a/packages/odata-service-inquirer/src/prompts/datasources/sap-system/abap-on-btp/questions.ts
+++ b/packages/odata-service-inquirer/src/prompts/datasources/sap-system/abap-on-btp/questions.ts
@@ -5,13 +5,7 @@ import {
     generateABAPCloudDestinationName
 } from '@sap-ux/btp-utils';
 import { hostEnvironment } from '@sap-ux/fiori-generator-shared';
-import {
-    type FileBrowserQuestion,
-    type ListQuestion,
-    ERROR_TYPE,
-    getCFAbapInstanceChoices,
-    withCondition
-} from '@sap-ux/inquirer-common';
+import { type ListQuestion, ERROR_TYPE, getCFAbapInstanceChoices, withCondition } from '@sap-ux/inquirer-common';
 import type { OdataVersion } from '@sap-ux/odata-service-writer';
 import { type ServiceInstanceInfo, apiGetInstanceCredentials } from '@sap/cf-tools';
 import type { Answers, ListChoiceOptions, Question } from 'inquirer';
@@ -31,8 +25,6 @@ import { newSystemPromptNames } from '../new-system/types';
 import { type ServiceAnswer, getSystemServiceQuestion } from '../service-selection';
 import { getSystemUrlQuestion, getUserSystemNameQuestion } from '../shared-prompts/shared-prompts';
 import { connectWithDestination } from '../system-selection/prompt-helpers';
-import { validateServiceKey } from '../validators';
-import { isFeatureEnabled } from '@sap-ux/feature-toggle';
 
 const abapOnBtpPromptNamespace = 'abapOnBtp';
 const systemUrlPromptName = `${abapOnBtpPromptNamespace}:${newSystemPromptNames.newSystemUrl}` as const;
@@ -40,18 +32,14 @@ const cliCfAbapServicePromptName = 'cliCfAbapService';
 
 const abapOnBtpPromptNames = {
     'abapOnBtpAuthType': 'abapOnBtpAuthType',
-    'serviceKey': 'serviceKey',
     'cloudFoundryAbapSystem': 'cloudFoundryAbapSystem'
 } as const;
 
-const SERVICE_KEY_FEATURE_TOGGLE = 'sap.ux.appGenerator.testBetaFeatures.disableBtpServiceKeyAuth';
-
-export type AbapOnBTPType = 'cloudFoundry' | 'serviceKey' | 'reentranceTicket';
+export type AbapOnBTPType = 'cloudFoundry' | 'reentranceTicket';
 
 interface AbapOnBtpAnswers extends Partial<OdataServiceAnswers> {
     [abapOnBtpPromptNames.abapOnBtpAuthType]?: AbapOnBTPType;
     [systemUrlPromptName]?: string;
-    [abapOnBtpPromptNames.serviceKey]?: string;
     [abapOnBtpPromptNames.cloudFoundryAbapSystem]?: ServiceInstanceInfo;
 }
 
@@ -60,13 +48,11 @@ interface AbapOnBtpAnswers extends Partial<OdataServiceAnswers> {
  *
  * @param promptOptions The prompt options which control the service selection and system name]
  * @param cachedConnectedSystem if available passing an already connected system connection will prevent re-authentication for re-entrance ticket and service keys connection types
- * @param serviceKeyToggle Feature toggle to enable/disable the BTP service key option - enabled by default
  * @returns The list of questions for the ABAP on BTP system
  */
 export function getAbapOnBTPSystemQuestions(
     promptOptions?: OdataServicePromptOptions,
-    cachedConnectedSystem?: ConnectedSystem,
-    serviceKeyToggle = isFeatureEnabled(SERVICE_KEY_FEATURE_TOGGLE)
+    cachedConnectedSystem?: ConnectedSystem
 ): Question<AbapOnBtpAnswers & ServiceAnswer>[] {
     PromptState.reset();
     const connectValidator = new ConnectionValidator();
@@ -76,15 +62,6 @@ export function getAbapOnBTPSystemQuestions(
         name: abapOnBtpPromptNames.abapOnBtpAuthType,
         choices: [
             { name: t('prompts.abapOnBTPType.choiceCloudFoundry'), value: 'cloudFoundry' as AbapOnBTPType },
-            // Feature toggle the service key option - enabled by default, can be disabled via VS Code settings or ENV
-            ...(!serviceKeyToggle
-                ? [
-                      {
-                          name: t('prompts.abapOnBTPType.choiceServiceKey'),
-                          value: 'serviceKey' as AbapOnBTPType
-                      }
-                  ]
-                : []),
             { name: t('prompts.abapOnBTPType.choiceReentranceTicket'), value: 'reentranceTicket' as AbapOnBTPType }
         ],
         message: t('prompts.abapOnBTPType.message'),
@@ -113,20 +90,7 @@ export function getAbapOnBTPSystemQuestions(
                 }
                 return false;
             }
-        )[0]
-    );
-
-    // Service Key file prompt - enabled by default
-    if (!serviceKeyToggle) {
-        questions.push(
-            withCondition(
-                [getServiceKeyPrompt(connectValidator, cachedConnectedSystem)],
-                (answers: AbapOnBtpAnswers) => answers?.abapOnBtpAuthType === 'serviceKey'
-            )[0]
-        );
-    }
-
-    questions.push(
+        )[0],
         ...withCondition(
             [...getCFDiscoverPrompts(connectValidator, undefined, undefined, cachedConnectedSystem)],
             (answers: AbapOnBtpAnswers) => answers?.abapOnBtpAuthType === 'cloudFoundry'
@@ -203,7 +167,7 @@ async function validateCFServiceInfo(
         if (
             cachedConnectedSystem &&
             cachedConnectedSystem.backendSystem?.url === (uaaCreds.credentials as ServiceInfo).url &&
-            JSON.stringify((cachedConnectedSystem.backendSystem.serviceKeys as ServiceInfo).uaa) ===
+            JSON.stringify((cachedConnectedSystem.backendSystem.serviceKeys as ServiceInfo)?.uaa) ===
                 JSON.stringify((uaaCreds.credentials as ServiceInfo).uaa)
         ) {
             connectionValidator.setConnectedSystem(cachedConnectedSystem);
@@ -313,53 +277,3 @@ export function getCFDiscoverPrompts(
 
     return questions;
 }
-
-/**
- * Get the service key prompt for the ABAP on BTP system. This prompt will allow the user to select a service key file from the file system.
- *
- * @param connectionValidator a connection validator instance
- * @param cachedConnectedSystem if available passing an already connected system connection will prevent re-authentication for re-entrance ticket and service keys connection types
- * @returns The service key prompt
- */
-function getServiceKeyPrompt(
-    connectionValidator: ConnectionValidator,
-    cachedConnectedSystem?: ConnectedSystem
-): FileBrowserQuestion {
-    const question = {
-        type: 'input',
-        name: abapOnBtpPromptNames.serviceKey,
-        message: t('prompts.serviceKey.message'),
-        guiType: 'file-browser',
-        guiOptions: {
-            hint: t('prompts.serviceKey.hint'),
-            mandatory: true
-        },
-        validate: async (keyPath) => {
-            PromptState.resetConnectedSystem();
-            const serviceKeyValResult = validateServiceKey(keyPath);
-            if (typeof serviceKeyValResult === 'string' || typeof serviceKeyValResult === 'boolean') {
-                return serviceKeyValResult;
-            }
-            // Backend systems validation supports using a cached connections from a previous step execution to prevent re-authentication (e.g. re-opening a browser window)
-            // In case the user has changed the URL, do not use the cached connection.
-            if (
-                cachedConnectedSystem &&
-                cachedConnectedSystem.backendSystem?.url === serviceKeyValResult.url &&
-                JSON.stringify((cachedConnectedSystem.backendSystem.serviceKeys as ServiceInfo).uaa) ===
-                    JSON.stringify(serviceKeyValResult.uaa)
-            ) {
-                connectionValidator.setConnectedSystem(cachedConnectedSystem);
-            }
-            const connectValResult = await connectionValidator.validateServiceInfo(serviceKeyValResult);
-
-            if (connectValResult === true && connectionValidator.serviceProvider) {
-                PromptState.odataService.connectedSystem = {
-                    serviceProvider: removeCircularFromServiceProvider(connectionValidator.serviceProvider)
-                };
-            }
-            return connectValResult;
-        }
-    } as FileBrowserQuestion;
-
-    return question;
-}
diff --git a/packages/odata-service-inquirer/src/prompts/datasources/sap-system/shared-prompts/shared-prompts.ts b/packages/odata-service-inquirer/src/prompts/datasources/sap-system/shared-prompts/shared-prompts.ts
index d3ff3810379..3ce0eb99159 100644
--- a/packages/odata-service-inquirer/src/prompts/datasources/sap-system/shared-prompts/shared-prompts.ts
+++ b/packages/odata-service-inquirer/src/prompts/datasources/sap-system/shared-prompts/shared-prompts.ts
@@ -8,7 +8,12 @@ import type { Answers } from 'inquirer';
 import { t } from '../../../../i18n';
 import type { ConnectedSystem } from '../../../../types';
 import { promptNames } from '../../../../types';
-import { PromptState, convertODataVersionType, removeCircularFromServiceProvider } from '../../../../utils';
+import {
+    PromptState,
+    convertODataVersionType,
+    isBackendSystemKeyExisting,
+    removeCircularFromServiceProvider
+} from '../../../../utils';
 import type { ConnectionValidator, SystemAuthType } from '../../../connectionValidator';
 import { type NewSystemAnswers, newSystemPromptNames } from '../new-system/types';
 import { suggestSystemName } from '../prompt-helpers';
@@ -26,8 +31,8 @@ function systemAuthTypeToAuthenticationType(
     systemAuthType: SystemAuthType | undefined
 ): AuthenticationType | undefined {
     switch (systemAuthType) {
-        case 'serviceKey':
-            return AuthenticationType.OAuth2RefreshToken;
+        case 'serviceKey' /** @deprecated All cloud auth is reentrance ticket based, legacy stored entries are still supported */:
+            return AuthenticationType.ReentranceTicket;
         case 'reentranceTicket':
             return AuthenticationType.ReentranceTicket;
         case 'basic':
@@ -42,7 +47,7 @@ function systemAuthTypeToAuthenticationType(
  * @param connectValidator a connection validator instance used to validate the system url
  * @param promptNamespace The namespace for the prompt, used to identify the prompt instance and namespaced answers.
  * @param requiredOdataVersion The required OData version for the system connection, only catalogs supporting the specifc odata version will be used.
- * @param cachedConnectedSystem
+ * @param cachedConnectedSystem An existing connection may be passed which will prevent reauthentication
  * @returns the system url prompt
  */
 export function getSystemUrlQuestion<T extends Answers>(
@@ -64,13 +69,21 @@ export function getSystemUrlQuestion<T extends Answers>(
         validate: async (url) => {
             PromptState.resetConnectedSystem();
             // Backend systems validation supports using a cached connections from a previous step execution to prevent re-authentication (e.g. re-opening a browser window)
-            // Only in the case or re-entrance tickets will we reuse an existing connection.
+            // Only in the case of re-entrance tickets will we reuse an existing connection.
             if (
                 cachedConnectedSystem &&
                 cachedConnectedSystem.backendSystem?.url === url &&
                 cachedConnectedSystem.backendSystem?.authenticationType === 'reentranceTicket'
             ) {
                 connectValidator.setConnectedSystem(cachedConnectedSystem);
+            } else {
+                const existingBackend = isBackendSystemKeyExisting(PromptState.backendSystemsCache, url);
+                if (existingBackend) {
+                    // Not a cached connection so re-validate as new backend system entry
+                    return t('prompts.validationMessages.backendSystemExistsWarning', {
+                        backendName: existingBackend.name
+                    });
+                }
             }
             const valResult = await connectValidator.validateUrl(url, {
                 isSystem: true,
@@ -162,13 +175,12 @@ export function getUserSystemNameQuestion(
                         client: connectValidator.validatedClient,
                         username: connectValidator.axiosConfig?.auth?.username,
                         password: connectValidator.axiosConfig?.auth?.password,
-                        serviceKeys: connectValidator.serviceInfo,
+                        serviceKeys: connectValidator.serviceInfo, // This will not be persisted and is only used to determine cached connection equality for CF provided uaa keys
                         userDisplayName: connectValidator.connectedUserName,
                         systemType: getBackendSystemType({
                             serviceKeys: connectValidator.serviceInfo,
                             authenticationType: connectValidator.systemAuthType
-                        } as BackendSystem),
-                        refreshToken: connectValidator.refreshToken
+                        } as BackendSystem)
                     });
                     PromptState.odataService.connectedSystem.backendSystem = backendSystem;
                     PromptState.odataService.connectedSystem.backendSystem.newOrUpdated = true;
diff --git a/packages/odata-service-inquirer/src/prompts/datasources/sap-system/system-selection/prompt-helpers.ts b/packages/odata-service-inquirer/src/prompts/datasources/sap-system/system-selection/prompt-helpers.ts
index 2e420f31c83..83431a77b80 100644
--- a/packages/odata-service-inquirer/src/prompts/datasources/sap-system/system-selection/prompt-helpers.ts
+++ b/packages/odata-service-inquirer/src/prompts/datasources/sap-system/system-selection/prompt-helpers.ts
@@ -18,6 +18,7 @@ import { convertODataVersionType, PromptState, removeCircularFromServiceProvider
 import type { ConnectionValidator } from '../../../connectionValidator';
 import LoggerHelper from '../../../logger-helper';
 import type { ValidationResult } from '../../../types';
+import { getBackendSystemDisplayName } from '@sap-ux/fiori-generator-shared';
 
 // New system choice value is a hard to guess string to avoid conflicts with existing system names or user named systems
 // since it will be used as a new system value in the system selection prompt.
@@ -68,8 +69,7 @@ export async function connectWithBackendSystem(
         } else if (backendSystem.serviceKeys) {
             connectValResult = await connectionValidator.validateServiceInfo(
                 backendSystem.serviceKeys as ServiceInfo,
-                convertODataVersionType(requiredOdataVersion),
-                backendSystem.refreshToken
+                convertODataVersionType(requiredOdataVersion)
             );
         } else if (backendSystem.authenticationType === 'basic' || !backendSystem.authenticationType) {
             let errorType;
@@ -153,34 +153,6 @@ export async function connectWithDestination(
     return connectValResult;
 }
 
-/**
- * Creates and returns a display name for the system, appending the system type and user display name if available.
- *
- * @param system the backend system to create a display name for
- * @returns the display name for the system
- */
-export function getBackendSystemDisplayName(system: BackendSystem): string {
-    const userDisplayName = system.userDisplayName ? ` [${system.userDisplayName}]` : '';
-    const systemTypeName = getBackendSystemTypeName(system.systemType);
-    return `${system.name}${systemTypeName}${userDisplayName}`;
-}
-
-/**
- * Returns the formatted system type name for the given backend system.
- *
- * @param systemType the system type to get the name for
- * @returns system type name formatted as a string, e.g. " (BTP)" or " (S4HC)".
- */
-function getBackendSystemTypeName(systemType?: string): string {
-    let systemTypeName = ''; // for on prem we do not show the system type
-    if (systemType === 'S4HC') {
-        systemTypeName = ` (${t('texts.systemTypeS4HC')})`;
-    } else if (systemType === 'BTP') {
-        systemTypeName = ` (${t('texts.systemTypeBTP')})`;
-    }
-    return systemTypeName;
-}
-
 /**
  * Matches the destination against the provided filters. Returns true if the destination matches any filters, false otherwise.
  *
@@ -267,6 +239,9 @@ export async function createSystemChoices(
         }
     } else {
         const backendSystems = await new SystemService(LoggerHelper.logger).getAll({ includeSensitiveData: false });
+        // Cache the backend systems
+        PromptState.backendSystemsCache = backendSystems;
+
         systemChoices = backendSystems.map((system) => {
             return {
                 name: getBackendSystemDisplayName(system),
diff --git a/packages/odata-service-inquirer/src/translations/odata-service-inquirer.i18n.json b/packages/odata-service-inquirer/src/translations/odata-service-inquirer.i18n.json
index a7a3f2d363d..99cdb87e2fc 100644
--- a/packages/odata-service-inquirer/src/translations/odata-service-inquirer.i18n.json
+++ b/packages/odata-service-inquirer/src/translations/odata-service-inquirer.i18n.json
@@ -58,7 +58,9 @@
             "metadataFilePathNotValid": "The metadata file does not exist or is not accessible. Please specify a valid file path.",
             "capProjectNotFound": "The folder you have selected does not contain a valid CAP project. Please check and try again.",
             "warningCertificateValidationDisabled": "Certificate validation has been disabled by the user.",
-            "annotationsNotFound": "Annotations not found for the specified service."
+            "annotationsNotFound": "Annotations not found for the specified service.",
+            "backendSystemExistsWarning": "A saved system connection entry: \"{{- backendName}}\" already exists with the same URL and client. Please reuse the existing entry or remove it, using the systems panel, before adding a new connection.",
+            "reentranceTicketSystemHostOnly": "ABAP cloud system urls must only contain the hostname, for example, 'https://123.abc.com'"
         },
         "warnings": {
             "nonUIServiceTypeWarningMessage": "Services of service type: {{serviceType}} or without a service type are not intended to be used for generating SAP Fiori UI applications.",
@@ -252,8 +254,6 @@
         "suggestedSystemNameClient": ", client {{client}}",
         "seeLogForDetails": "For more information, view the logs.",
         "forUserName": "(for user [{{username}}])",
-        "systemTypeBTP": "BTP",
-        "systemTypeS4HC": "S4HC",
         "httpStatus": "HTTP Status {{httpStatus}}",
         "checkDestinationAuthConfig": "Please check the SAP BTP destination authentication configuration.",
         "choiceNameNone": "None"
diff --git a/packages/odata-service-inquirer/src/types.ts b/packages/odata-service-inquirer/src/types.ts
index 28395dfb001..9de3d2a93ec 100644
--- a/packages/odata-service-inquirer/src/types.ts
+++ b/packages/odata-service-inquirer/src/types.ts
@@ -195,7 +195,7 @@ export interface EntitySelectionAnswers {
  * Answers related to the Page Building Block prompt.
  */
 export interface PageBuildingBlockAnswers {
-    /** Indicates if the user wants to add a Page Building Block */
+    /** Indicates if a Page Building Block should be addedn*/
     [EntityPromptNames.addPageBuildingBlock]?: boolean;
     /** The title for the Page Building Block, required if addPageBuildingBlock is true */
     [EntityPromptNames.pageBuildingBlockTitle]?: string;
diff --git a/packages/odata-service-inquirer/src/utils/index.ts b/packages/odata-service-inquirer/src/utils/index.ts
index 25a83fa5b11..f2457ca095e 100644
--- a/packages/odata-service-inquirer/src/utils/index.ts
+++ b/packages/odata-service-inquirer/src/utils/index.ts
@@ -12,6 +12,8 @@ import { convert } from '@sap-ux/annotation-converter';
 import { parse } from '@sap-ux/edmx-parser';
 import type { ConvertedMetadata } from '@sap-ux/vocabularies-types';
 import { removeSync } from 'circular-reference-remover';
+import type { BackendSystem } from '@sap-ux/store';
+import { BackendSystemKey } from '@sap-ux/store';
 
 /**
  * Determine if the current prompting environment is cli or a hosted extension (app studio or vscode).
@@ -152,4 +154,21 @@ export function removeCircularFromServiceProvider(serviceProvider: ServiceProvid
     return serviceProvider;
 }
 
+/**
+ * Checks if the specified backend systems contain a match for the specified url and client.
+ *
+ * @param backendSystems backend systems to search for a matching key
+ * @param url the url component of the backend system key
+ * @param client the client component of of the backend system key
+ * @returns the backend system if found or undefined
+ */
+export function isBackendSystemKeyExisting(
+    backendSystems: BackendSystem[],
+    url: string,
+    client?: string
+): BackendSystem | undefined {
+    const newBackendSystemId = new BackendSystemKey({ url, client }).getId();
+    return backendSystems.find((backendSystem) => BackendSystemKey.from(backendSystem).getId() === newBackendSystemId);
+}
+
 export { PromptState };
diff --git a/packages/odata-service-inquirer/src/utils/prompt-state.ts b/packages/odata-service-inquirer/src/utils/prompt-state.ts
index be12842190f..d7ae7361606 100644
--- a/packages/odata-service-inquirer/src/utils/prompt-state.ts
+++ b/packages/odata-service-inquirer/src/utils/prompt-state.ts
@@ -1,3 +1,4 @@
+import type { BackendSystem } from '@sap-ux/store';
 import type { OdataServiceAnswers } from '../types';
 
 /**
@@ -11,6 +12,11 @@ export class PromptState {
 
     public static isYUI = false;
 
+    /**
+     * To prevent re-reads from store load the backend systems once.
+     */
+    public static backendSystemsCache: BackendSystem[] = [];
+
     static reset(): void {
         // Reset all values in the odataService object, do not reset the object reference itself as it may be used by external consumers
         Object.keys(PromptState.odataService).forEach((key) => {
diff --git a/packages/odata-service-inquirer/test/unit/__snapshots__/index-api.test.ts.snap b/packages/odata-service-inquirer/test/unit/__snapshots__/index-api.test.ts.snap
index 2b8b9d13e6e..66292fc7ab7 100644
--- a/packages/odata-service-inquirer/test/unit/__snapshots__/index-api.test.ts.snap
+++ b/packages/odata-service-inquirer/test/unit/__snapshots__/index-api.test.ts.snap
@@ -51,7 +51,7 @@ exports[`API tests getPrompts, i18n is loaded 1`] = `
         },
       },
       {
-        "name": "storedSystem2 (BTP)",
+        "name": "storedSystem2 (ABAP Cloud)",
         "value": {
           "system": {
             "name": "storedSystem2",
@@ -217,10 +217,6 @@ exports[`API tests getPrompts, i18n is loaded 1`] = `
         "name": "Discover a Cloud Foundry Service",
         "value": "cloudFoundry",
       },
-      {
-        "name": "Upload a Service Key File",
-        "value": "serviceKey",
-      },
       {
         "name": "Use Reentrance Ticket",
         "value": "reentranceTicket",
@@ -245,18 +241,6 @@ exports[`API tests getPrompts, i18n is loaded 1`] = `
     "validate": [Function],
     "when": [Function],
   },
-  {
-    "guiOptions": {
-      "hint": "Select a local file that defines the service connection for an ABAP Environment on SAP Business Technology Platform.",
-      "mandatory": true,
-    },
-    "guiType": "file-browser",
-    "message": "Service Key File Path",
-    "name": "serviceKey",
-    "type": "input",
-    "validate": [Function],
-    "when": [Function],
-  },
   {
     "choices": [Function],
     "default": [Function],
diff --git a/packages/odata-service-inquirer/test/unit/index-api.test.ts b/packages/odata-service-inquirer/test/unit/index-api.test.ts
index e49e7b27af2..097c6ddfad0 100644
--- a/packages/odata-service-inquirer/test/unit/index-api.test.ts
+++ b/packages/odata-service-inquirer/test/unit/index-api.test.ts
@@ -1,11 +1,12 @@
+import { Severity } from '@sap-devx/yeoman-ui-types';
 import { ErrorHandler } from '@sap-ux/inquirer-common';
-import { getPrompts, getSystemSelectionQuestions } from '../../src/index';
+import { type BackendSystem } from '@sap-ux/store';
+import type { OdataServicePromptOptions } from '../../src/index';
+import { getPrompts, getSystemSelectionQuestions, OdataVersion, promptNames } from '../../src/index';
 import * as prompts from '../../src/prompts';
 import * as systemSelection from '../../src/prompts/datasources/sap-system/system-selection';
 import LoggerHelper from '../../src/prompts/logger-helper';
 import { PromptState } from '../../src/utils';
-import { type BackendSystem } from '@sap-ux/store';
-import { isFeatureEnabled } from '@sap-ux/feature-toggle';
 
 jest.mock('../../src/prompts', () => ({
     __esModule: true, // Workaround for spyOn TypeError: Jest cannot redefine property
@@ -17,10 +18,6 @@ jest.mock('../../src/prompts/datasources/sap-system/system-selection', () => ({
     ...jest.requireActual('../../src/prompts/datasources/sap-system/system-selection')
 }));
 
-jest.mock('@sap-ux/feature-toggle', () => ({
-    isFeatureEnabled: jest.fn()
-}));
-
 jest.mock('@sap-ux/store', () => ({
     __esModule: true, // Workaround for spyOn TypeError: Jest cannot redefine property
     ...jest.requireActual('@sap-ux/store'),
@@ -43,7 +40,6 @@ jest.mock('@sap-ux/store', () => ({
 describe('API tests', () => {
     beforeEach(() => {
         jest.restoreAllMocks();
-        (isFeatureEnabled as jest.Mock).mockReturnValue(false);
     });
 
     test('getPrompts', async () => {
@@ -53,7 +49,23 @@ describe('API tests', () => {
                 validate: () => (PromptState.odataService.metadata = 'metadata contents')
             }
         ]);
-        const { prompts: questions, answers } = await getPrompts(undefined, undefined, true, undefined, true);
+
+        const prompOptions: OdataServicePromptOptions = {
+            [promptNames.serviceUrl]: {
+                requiredOdataVersion: OdataVersion.v4,
+                showCollaborativeDraftWarning: false,
+                additionalMessages: (input: any) => {
+                    if (input === 'X') {
+                        return {
+                            message: 'X may mark the spot',
+                            severity: Severity.information
+                        };
+                    }
+                }
+            }
+        };
+
+        const { prompts: questions, answers } = await getPrompts(prompOptions);
 
         expect(questions).toHaveLength(1);
         // execute the validate function as it would be done by inquirer
@@ -61,11 +73,12 @@ describe('API tests', () => {
         expect(answers.metadata).toBe('metadata contents');
 
         // Ensure stateful properties are set correctly
-        expect(PromptState.isYUI).toBe(true);
+        expect(PromptState.isYUI).toBe(false);
         expect(PromptState.odataService).toBe(answers);
+        // Default logger created
         expect(LoggerHelper.logger).toBeDefined();
-        expect(ErrorHandler.guidedAnswersEnabled).toBe(true);
         expect(ErrorHandler.logger).toBeDefined();
+        expect(ErrorHandler.guidedAnswersEnabled).toBe(false);
     });
 
     test('getSystemSelectionQuestions', async () => {
diff --git a/packages/odata-service-inquirer/test/unit/prompts/__snapshots__/prompts.test.ts.snap b/packages/odata-service-inquirer/test/unit/prompts/__snapshots__/prompts.test.ts.snap
index 4ce40a69ae2..39ec0be62fd 100644
--- a/packages/odata-service-inquirer/test/unit/prompts/__snapshots__/prompts.test.ts.snap
+++ b/packages/odata-service-inquirer/test/unit/prompts/__snapshots__/prompts.test.ts.snap
@@ -51,7 +51,7 @@ exports[`getQuestions getQuestions 1`] = `
         },
       },
       {
-        "name": "storedSystem2 (BTP)",
+        "name": "storedSystem2 (ABAP Cloud)",
         "value": {
           "system": {
             "name": "storedSystem2",
@@ -229,10 +229,6 @@ exports[`getQuestions getQuestions 1`] = `
         "name": "Discover a Cloud Foundry Service",
         "value": "cloudFoundry",
       },
-      {
-        "name": "Upload a Service Key File",
-        "value": "serviceKey",
-      },
       {
         "name": "Use Reentrance Ticket",
         "value": "reentranceTicket",
@@ -257,18 +253,6 @@ exports[`getQuestions getQuestions 1`] = `
     "validate": [Function],
     "when": [Function],
   },
-  {
-    "guiOptions": {
-      "hint": "Select a local file that defines the service connection for an ABAP Environment on SAP Business Technology Platform.",
-      "mandatory": true,
-    },
-    "guiType": "file-browser",
-    "message": "Service Key File Path",
-    "name": "serviceKey",
-    "type": "input",
-    "validate": [Function],
-    "when": [Function],
-  },
   {
     "choices": [Function],
     "default": [Function],
diff --git a/packages/odata-service-inquirer/test/unit/prompts/connectionValidator.test.ts b/packages/odata-service-inquirer/test/unit/prompts/connectionValidator.test.ts
index 108264a0383..c2297c43284 100644
--- a/packages/odata-service-inquirer/test/unit/prompts/connectionValidator.test.ts
+++ b/packages/odata-service-inquirer/test/unit/prompts/connectionValidator.test.ts
@@ -1,4 +1,5 @@
 import type { AbapServiceProvider, ODataServiceInfo } from '@sap-ux/axios-extension';
+import { createForAbap } from '@sap-ux/axios-extension';
 import * as axiosExtension from '@sap-ux/axios-extension';
 import { ODataService, ODataVersion, ServiceProvider, type AxiosRequestConfig } from '@sap-ux/axios-extension';
 import type { ServiceInfo } from '@sap-ux/btp-utils';
@@ -15,6 +16,7 @@ import { ConnectionValidator } from '../../../src/prompts/connectionValidator';
 import LoggerHelper from '../../../src/prompts/logger-helper';
 import type { ConnectedSystem } from '../../../src/types';
 import * as nodejsUtils from '@sap-ux/nodejs-utils';
+import { ToolsLogger } from '@sap-ux/logger';
 
 const odataServicesMock: ODataServiceInfo[] = [];
 const catalogServiceMock = jest.fn().mockImplementation(() => ({
@@ -27,18 +29,30 @@ jest.mock('@sap-ux/nodejs-utils', () => ({
     ...jest.requireActual('@sap-ux/nodejs-utils')
 }));
 
+const mockAbapServiceProvider = {
+    catalog: catalogServiceMock,
+    getSystemInfo: jest.fn().mockResolvedValue({
+        systemID: 'ABC123',
+        userName: 'user1@acme.com',
+        userFullName: 'userFirstName1 userLastName1',
+        client: '000',
+        language: 'DE'
+    }),
+    interceptors: { request: { use: jest.fn() }, response: { use: jest.fn() } },
+    user: jest.fn().mockReturnValue('user1@acme.com')
+};
+
 jest.mock('@sap-ux/axios-extension', () => ({
     __esModule: true,
     ...jest.requireActual('@sap-ux/axios-extension'),
-    AbapServiceProvider: jest.fn().mockImplementation(() => ({
-        catalog: catalogServiceMock
-    })),
-    createForAbapOnCloud: jest.fn().mockImplementation(({ refreshTokenChangedCb }) => ({
-        interceptors: { request: { use: jest.fn() }, response: { use: jest.fn() } },
-        catalog: catalogServiceMock,
-        user: jest.fn().mockReturnValue('user1@acme.com'),
-        refreshTokenChangedCb // Test only, usually handled by attachUaaAuthInterceptor but here for testing purposes
-    }))
+    AbapServiceProvider: jest.fn().mockImplementation(() => mockAbapServiceProvider),
+    createForAbapOnCloud: jest.fn().mockImplementation(() => mockAbapServiceProvider),
+    createForAbap: jest.fn().mockImplementation((...args: Parameters<typeof createForAbap>): AbapServiceProvider => {
+        const { createForAbap } = jest.requireActual('@sap-ux/axios-extension');
+        const asp = createForAbap(args);
+        asp.getSystemInfo = mockAbapServiceProvider.getSystemInfo;
+        return asp;
+    })
 }));
 
 let mockIsAppStudio = false;
@@ -231,7 +245,7 @@ describe('ConnectionValidator', () => {
         );
     });
 
-    test('should report and any ignore cert errors with warning, when connecting to an odata service url, if `NODE_TLS_REJECT_UNAUTHORIZED=0` is set', async () => {
+    test('should report and ignore cert errors with warning, when connecting to an odata service url, if `NODE_TLS_REJECT_UNAUTHORIZED=0` is set', async () => {
         process.env.NODE_TLS_REJECT_UNAUTHORIZED = '0';
         const serviceUrl = 'https://localhost:8080/some/path';
         // Mock first request to get the specific cert errors
@@ -407,7 +421,8 @@ describe('ConnectionValidator', () => {
             ignoreCertErrors: false,
             params: {
                 'sap-client': '999'
-            }
+            },
+            logger: expect.any(ToolsLogger)
         });
         expect(connectValidator.validity).toEqual({
             authenticated: true,
@@ -525,7 +540,6 @@ describe('ConnectionValidator', () => {
         expect(createAbapOnCloudProviderSpy).toHaveBeenCalledWith(
             expect.objectContaining({
                 environment: 'Standalone',
-                refreshTokenChangedCb: expect.any(Function),
                 service: serviceInfoMock
             })
         );
@@ -538,30 +552,20 @@ describe('ConnectionValidator', () => {
         expect(connectValidator.validatedUrl).toBe(serviceInfoMock.url);
         expect(connectValidator.connectedSystemName).toBe('abap_btp_001');
 
-        // Ensure the refresh token is updated when it changes
-        (connectValidator.serviceProvider as any).refreshTokenChangedCb('newToken1234');
-        expect(connectValidator.refreshToken).toEqual('newToken1234');
-
         connectValidator = new ConnectionValidator();
         createAbapOnCloudProviderSpy.mockClear();
         // Ensure refresh token is used to create a connection if presented
-        expect(
-            await connectValidator.validateServiceInfo(serviceInfoMock as ServiceInfo, undefined, '123refreshToken456')
-        ).toBe(true);
+        expect(await connectValidator.validateServiceInfo(serviceInfoMock as ServiceInfo)).toBe(true);
         expect(createAbapOnCloudProviderSpy).toHaveBeenCalledWith(
             expect.objectContaining({
                 environment: 'Standalone',
-                refreshTokenChangedCb: expect.any(Function),
-                service: serviceInfoMock,
-                refreshToken: '123refreshToken456'
+                service: serviceInfoMock
             })
         );
 
         createAbapOnCloudProviderSpy.mockClear();
         // Should not create a new connection if the service url is the same as current valdidate url
-        expect(
-            await connectValidator.validateServiceInfo(serviceInfoMock as ServiceInfo, undefined, '123refreshToken456')
-        ).toBe(true);
+        expect(await connectValidator.validateServiceInfo(serviceInfoMock as ServiceInfo)).toBe(true);
         expect(createAbapOnCloudProviderSpy).not.toHaveBeenCalled();
     });
 
@@ -625,7 +629,7 @@ describe('ConnectionValidator', () => {
         );
 
         expect(warnLogSpy).toHaveBeenNthCalledWith(2, t('warnings.allowingUnauthorizedCertsNode'));
-        expect(createForAbapProviderSpy).toHaveBeenCalledWith(
+        expect(createForAbap as jest.Mock).toHaveBeenCalledWith(
             expect.objectContaining({
                 baseURL: 'https://example.com:1234',
                 ignoreCertErrors: true
@@ -927,9 +931,7 @@ describe('ConnectionValidator', () => {
         connectValidator.setConnectedSystem(cachedConnectedSystem);
 
         connectValResult = await connectValidator.validateServiceInfo(
-            cachedConnectedSystem.backendSystem!.serviceKeys as ServiceInfo,
-            undefined,
-            'refreshToken1234'
+            cachedConnectedSystem.backendSystem!.serviceKeys as ServiceInfo
         );
 
         expect(connectValResult).toEqual(true);
diff --git a/packages/odata-service-inquirer/test/unit/prompts/prompts.test.ts b/packages/odata-service-inquirer/test/unit/prompts/prompts.test.ts
index da08d1e8e9b..990fe19719c 100644
--- a/packages/odata-service-inquirer/test/unit/prompts/prompts.test.ts
+++ b/packages/odata-service-inquirer/test/unit/prompts/prompts.test.ts
@@ -16,10 +16,6 @@ jest.mock('@sap-ux/btp-utils', () => {
     };
 });
 
-jest.mock('@sap-ux/feature-toggle', () => ({
-    isFeatureEnabled: jest.fn()
-}));
-
 jest.mock('@sap-ux/store', () => ({
     __esModule: true, // Workaround to for spyOn TypeError: Jest cannot redefine property
     ...jest.requireActual('@sap-ux/store'),
@@ -45,10 +41,6 @@ describe('getQuestions', () => {
         await initI18nOdataServiceInquirer();
     });
 
-    beforeEach(() => {
-        (isFeatureEnabled as jest.Mock).mockReturnValue(false);
-    });
-
     afterEach(() => {
         // Ensure test isolation
         jest.restoreAllMocks();
diff --git a/packages/odata-service-inquirer/test/unit/prompts/sap-system/abap-on-btp/questions.test.ts b/packages/odata-service-inquirer/test/unit/prompts/sap-system/abap-on-btp/questions.test.ts
index 8ab924135c9..4e0079b53ff 100644
--- a/packages/odata-service-inquirer/test/unit/prompts/sap-system/abap-on-btp/questions.test.ts
+++ b/packages/odata-service-inquirer/test/unit/prompts/sap-system/abap-on-btp/questions.test.ts
@@ -10,13 +10,8 @@ import { PromptState } from '../../../../../src/utils';
 import * as sapSystemValidators from '../../../../../src/prompts/datasources/sap-system/validators';
 import type { ConnectedSystem } from '../../../../../src/types';
 import type { BackendSystem } from '@sap-ux/store';
-import { url } from 'inspector';
 import { isFeatureEnabled } from '@sap-ux/feature-toggle';
 
-jest.mock('@sap-ux/feature-toggle', () => ({
-    isFeatureEnabled: jest.fn()
-}));
-
 const validateUrlMock = jest.fn().mockResolvedValue(true);
 const validateAuthMock = jest.fn().mockResolvedValue(true);
 const isAuthRequiredMock = jest.fn().mockResolvedValue(false);
@@ -73,8 +68,6 @@ describe('questions', () => {
         connectionValidatorMock.validateAuth = validateAuthMock;
         connectionValidatorMock.serviceProvider = serviceProviderMock;
         validateServiceInfoMock = true;
-        // Feature toggle disabled by default - service key shown
-        (isFeatureEnabled as jest.Mock).mockReturnValue(false);
     });
 
     test('should return Abap on BTP questions', () => {
@@ -87,10 +80,6 @@ describe('questions', () => {
                     "name": "Discover a Cloud Foundry Service",
                     "value": "cloudFoundry",
                   },
-                  {
-                    "name": "Upload a Service Key File",
-                    "value": "serviceKey",
-                  },
                   {
                     "name": "Use Reentrance Ticket",
                     "value": "reentranceTicket",
@@ -114,18 +103,6 @@ describe('questions', () => {
                 "validate": [Function],
                 "when": [Function],
               },
-              {
-                "guiOptions": {
-                  "hint": "Select a local file that defines the service connection for an ABAP Environment on SAP Business Technology Platform.",
-                  "mandatory": true,
-                },
-                "guiType": "file-browser",
-                "message": "Service Key File Path",
-                "name": "serviceKey",
-                "type": "input",
-                "validate": [Function],
-                "when": [Function],
-              },
               {
                 "choices": [Function],
                 "default": [Function],
@@ -180,63 +157,22 @@ describe('questions', () => {
             ]
         `);
     });
-    test.each([
-        {
-            description: 'should show the service key question when feature toggle is disabled (default)',
-            featureEnabled: false,
-            expectServiceKeyChoice: true,
-            expectServiceKeyPrompt: true
-        },
-        {
-            description: 'should hide the service key question when feature toggle is enabled',
-            featureEnabled: true,
-            expectServiceKeyChoice: false,
-            expectServiceKeyPrompt: false
-        }
-    ])('$description', ({ featureEnabled, expectServiceKeyChoice, expectServiceKeyPrompt }) => {
-        (isFeatureEnabled as jest.Mock).mockReturnValue(featureEnabled);
-
-        const questions = getAbapOnBTPSystemQuestions();
-        const authTypePrompt = questions.find((q) => q.name === 'abapOnBtpAuthType') as ListQuestion;
-
-        if (expectServiceKeyChoice) {
-            expect(authTypePrompt.choices).toContainEqual({
-                name: 'Upload a Service Key File',
-                value: 'serviceKey'
-            });
-        } else {
-            expect(authTypePrompt.choices).not.toContainEqual({
-                name: 'Upload a Service Key File',
-                value: 'serviceKey'
-            });
-        }
-
-        expect(questions.some((q) => q.name === 'serviceKey')).toBe(expectServiceKeyPrompt);
-    });
 
     test('should show the correct auth type prompt', () => {
         const newSystemQuestions = getAbapOnBTPSystemQuestions();
         const authTypePrompt = newSystemQuestions.find((q) => q.name === 'abapOnBtpAuthType') as ListQuestion;
         expect(authTypePrompt.choices).toEqual([
             { name: 'Discover a Cloud Foundry Service', value: 'cloudFoundry' },
-            { name: 'Upload a Service Key File', value: 'serviceKey' },
             { name: 'Use Reentrance Ticket', value: 'reentranceTicket' }
         ]);
 
-        // 'cloudFoundry' | 'serviceKey' | 'reentranceTicket';
+        // 'cloudFoundry' | 'reentranceTicket';
         const reentranceTicketUrlPrompt = newSystemQuestions.find((q) => q.name === 'abapOnBtp:newSystemUrl');
         expect((reentranceTicketUrlPrompt?.when as Function)({ 'abapOnBtpAuthType': 'reentranceTicket' })).toBe(true);
-        expect((reentranceTicketUrlPrompt?.when as Function)({ 'abapOnBtpAuthType': 'serviceKey' })).toBe(false);
         expect((reentranceTicketUrlPrompt?.when as Function)({ 'abapOnBtpAuthType': 'cloudFoundry' })).toBe(false);
 
-        const serviceKeyPrompt = newSystemQuestions.find((q) => q.name === 'serviceKey');
-        expect((serviceKeyPrompt?.when as Function)({ 'abapOnBtpAuthType': 'reentranceTicket' })).toBe(false);
-        expect((serviceKeyPrompt?.when as Function)({ 'abapOnBtpAuthType': 'serviceKey' })).toBe(true);
-        expect((serviceKeyPrompt?.when as Function)({ 'abapOnBtpAuthType': 'cloudFoundry' })).toBe(false);
-
         const cfAbapSysPrompt = newSystemQuestions.find((q) => q.name === 'cloudFoundryAbapSystem');
         expect((cfAbapSysPrompt?.when as Function)({ 'abapOnBtpAuthType': 'reentranceTicket' })).toBe(false);
-        expect((cfAbapSysPrompt?.when as Function)({ 'abapOnBtpAuthType': 'serviceKey' })).toBe(false);
         expect((cfAbapSysPrompt?.when as Function)({ 'abapOnBtpAuthType': 'cloudFoundry' })).toBe(true);
     });
 
@@ -420,67 +356,6 @@ describe('questions', () => {
         expect(PromptState.odataService.connectedSystem).toBeUndefined();
     });
 
-    test('Service key prompt should validate service key and connect', async () => {
-        const serviceInfoMock: ServiceInfo = {
-            uaa: {
-                clientid: 'clientid1',
-                clientsecret: 'clientSecret1',
-                url: 'http://abap.on.btp:1234'
-            },
-            url: 'http://abap.on.btp:1234',
-            catalogs: {
-                abap: {
-                    path: 'path1',
-                    type: 'type1'
-                }
-            }
-        };
-        let validateServiceKeyFileMock = jest
-            .spyOn(sapSystemValidators, 'validateServiceKey')
-            .mockReturnValue(serviceInfoMock); // service key file is valid
-        validateServiceInfoMock = true; // connection is successful
-        let newSystemQuestions = getAbapOnBTPSystemQuestions();
-
-        let serviceKeyPrompt = newSystemQuestions.find((q) => q.name === 'serviceKey');
-        expect(await (serviceKeyPrompt?.validate as Function)('path/to/service/key')).toBe(true);
-        expect(validateServiceKeyFileMock).toHaveBeenCalledWith('path/to/service/key');
-        expect(PromptState.odataService).toEqual({ connectedSystem: { serviceProvider: serviceProviderMock } });
-
-        validateServiceKeyFileMock = jest
-            .spyOn(sapSystemValidators, 'validateServiceKey')
-            .mockReturnValue('invalid service key file'); // service key file is valid
-        expect(await (serviceKeyPrompt?.validate as Function)('path/to/service/key')).toBe('invalid service key file');
-
-        // Should connect using a cached connected system when provided
-        const backendSystemServiceKeys: BackendSystem = {
-            name: 'http://abap.on.btp:1234',
-            url: 'http://abap.on.btp:1234',
-            authenticationType: 'serviceKeys',
-            serviceKeys: {
-                uaa: serviceInfoMock.uaa,
-                url: serviceInfoMock.url,
-                systemid: 'abap_btp_001'
-            }
-        };
-        const cachedConnectedSystem: ConnectedSystem = {
-            serviceProvider: {
-                catalog: {}
-            } as unknown as AbapServiceProvider,
-            backendSystem: backendSystemServiceKeys
-        };
-
-        validateServiceKeyFileMock = jest
-            .spyOn(sapSystemValidators, 'validateServiceKey')
-            .mockReturnValue(serviceInfoMock); // service key file is valid
-        newSystemQuestions = getAbapOnBTPSystemQuestions(undefined, cachedConnectedSystem);
-        serviceKeyPrompt = newSystemQuestions.find((q) => q.name === 'serviceKey');
-        PromptState.reset();
-        validateServiceInfoMock = true;
-        expect(await ((serviceKeyPrompt as ListQuestion).validate as Function)('path/to/service/key')).toBe(true);
-        expect(PromptState.odataService.connectedSystem?.serviceProvider).toBeDefined(); // Should be set from cached connected system
-        expect(connectionValidatorMock.setConnectedSystem).toHaveBeenCalledWith(cachedConnectedSystem);
-    });
-
     test('Reentrance ticket (system url) prompt should use cached connected system if provided', async () => {
         const backendSystemReentrance: BackendSystem = {
             name: 'http://s4hc:1234',
diff --git a/packages/odata-service-inquirer/test/unit/prompts/sap-system/abap-on-prem/questions.test.ts b/packages/odata-service-inquirer/test/unit/prompts/sap-system/abap-on-prem/questions.test.ts
index 8506371e2cc..e403cf6b3d9 100644
--- a/packages/odata-service-inquirer/test/unit/prompts/sap-system/abap-on-prem/questions.test.ts
+++ b/packages/odata-service-inquirer/test/unit/prompts/sap-system/abap-on-prem/questions.test.ts
@@ -207,6 +207,24 @@ describe('questions', () => {
         expect(await (userSystemNamePrompt?.when as Function)({ [systemUrlPromptName]: systemUrl })).toBe(true);
     });
 
+    test('Should check if an existing backend system configuration exists and show validation error (VSCode)', async () => {
+        const systemUrl = 'http://some.abap.system:1234';
+        const systemUrlPromptName = `abapOnPrem:${newSystemPromptNames.newSystemUrl}`;
+        const newSystemQuestions = getAbapOnPremQuestions();
+        const systemUrlQuestion = newSystemQuestions.find((question) => question.name === systemUrlPromptName);
+        PromptState.backendSystemsCache = [
+            {
+                name: 'System1234',
+                url: systemUrl,
+                systemType: 'OnPrem'
+            }
+        ];
+
+        expect(await (systemUrlQuestion?.validate as Function)(systemUrl)).toEqual(
+            t('prompts.validationMessages.backendSystemExistsWarning', { backendName: 'System1234' })
+        );
+    });
+
     test('Should validate sap-client input', () => {
         const newSystemQuestions = getAbapOnPremQuestions();
         const sapClientPrompt = newSystemQuestions.find((question) => question.name === `sapClient`);
diff --git a/packages/odata-service-inquirer/test/unit/prompts/sap-system/questions.test.ts b/packages/odata-service-inquirer/test/unit/prompts/sap-system/questions.test.ts
index 30e506f0a3e..5ae8d29e527 100644
--- a/packages/odata-service-inquirer/test/unit/prompts/sap-system/questions.test.ts
+++ b/packages/odata-service-inquirer/test/unit/prompts/sap-system/questions.test.ts
@@ -6,20 +6,12 @@ import type { BackendSystem } from '@sap-ux/store';
 import * as abapOnBtpQuestions from '../../../../src/prompts/datasources/sap-system/abap-on-btp/questions';
 import { isFeatureEnabled } from '@sap-ux/feature-toggle';
 
-jest.mock('@sap-ux/feature-toggle', () => ({
-    isFeatureEnabled: jest.fn()
-}));
-
 describe('questions', () => {
     beforeAll(async () => {
         // Wait for i18n to bootstrap so we can test localised strings
         await initI18nOdataServiceInquirer();
     });
 
-    beforeEach(() => {
-        (isFeatureEnabled as jest.Mock).mockReturnValue(false);
-    });
-
     test('should return expected questions', () => {
         const newSystemQuestions = getNewSystemQuestions();
         expect(newSystemQuestions).toMatchInlineSnapshot(`
@@ -128,10 +120,6 @@ describe('questions', () => {
                     "name": "Discover a Cloud Foundry Service",
                     "value": "cloudFoundry",
                   },
-                  {
-                    "name": "Upload a Service Key File",
-                    "value": "serviceKey",
-                  },
                   {
                     "name": "Use Reentrance Ticket",
                     "value": "reentranceTicket",
@@ -156,18 +144,6 @@ describe('questions', () => {
                 "validate": [Function],
                 "when": [Function],
               },
-              {
-                "guiOptions": {
-                  "hint": "Select a local file that defines the service connection for an ABAP Environment on SAP Business Technology Platform.",
-                  "mandatory": true,
-                },
-                "guiType": "file-browser",
-                "message": "Service Key File Path",
-                "name": "serviceKey",
-                "type": "input",
-                "validate": [Function],
-                "when": [Function],
-              },
               {
                 "choices": [Function],
                 "default": [Function],
diff --git a/packages/odata-service-inquirer/test/unit/prompts/sap-system/system-selection/__snapshots__/questions.test.ts.snap b/packages/odata-service-inquirer/test/unit/prompts/sap-system/system-selection/__snapshots__/questions.test.ts.snap
index 3447eae4430..f1995904c34 100644
--- a/packages/odata-service-inquirer/test/unit/prompts/sap-system/system-selection/__snapshots__/questions.test.ts.snap
+++ b/packages/odata-service-inquirer/test/unit/prompts/sap-system/system-selection/__snapshots__/questions.test.ts.snap
@@ -295,10 +295,6 @@ exports[`Test system selection prompts should return system selection prompts an
         "name": "Discover a Cloud Foundry Service",
         "value": "cloudFoundry",
       },
-      {
-        "name": "Upload a Service Key File",
-        "value": "serviceKey",
-      },
       {
         "name": "Use Reentrance Ticket",
         "value": "reentranceTicket",
@@ -323,18 +319,6 @@ exports[`Test system selection prompts should return system selection prompts an
     "validate": [Function],
     "when": [Function],
   },
-  {
-    "guiOptions": {
-      "hint": "Select a local file that defines the service connection for an ABAP Environment on SAP Business Technology Platform.",
-      "mandatory": true,
-    },
-    "guiType": "file-browser",
-    "message": "Service Key File Path",
-    "name": "serviceKey",
-    "type": "input",
-    "validate": [Function],
-    "when": [Function],
-  },
   {
     "choices": [Function],
     "default": [Function],
diff --git a/packages/odata-service-inquirer/test/unit/prompts/sap-system/system-selection/prompt-helpers.test.ts b/packages/odata-service-inquirer/test/unit/prompts/sap-system/system-selection/prompt-helpers.test.ts
index 99e13b98b0a..bba21be3745 100644
--- a/packages/odata-service-inquirer/test/unit/prompts/sap-system/system-selection/prompt-helpers.test.ts
+++ b/packages/odata-service-inquirer/test/unit/prompts/sap-system/system-selection/prompt-helpers.test.ts
@@ -4,7 +4,6 @@ import {
     CfAbapEnvServiceChoice,
     createSystemChoices,
     findDefaultSystemSelectionIndex,
-    getBackendSystemDisplayName,
     NewSystemChoice
 } from '../../../../../src/prompts/datasources/sap-system/system-selection/prompt-helpers';
 import type { AuthenticationType, BackendSystem } from '@sap-ux/store';
@@ -70,26 +69,6 @@ describe('Test system selection prompt helpers', () => {
             mockIsAppStudio = false;
         });
 
-        test('Should get backend system display name', () => {
-            expect(
-                getBackendSystemDisplayName({
-                    name: 'systemA',
-                    userDisplayName: 'userDisplayName1',
-                    authenticationType: 'reentranceTicket' as AuthenticationType,
-                    systemType: 'S4HC'
-                } as BackendSystem)
-            ).toEqual('systemA (S4HC) [userDisplayName1]');
-
-            expect(
-                getBackendSystemDisplayName({
-                    name: 'systemB',
-                    userDisplayName: 'userDisplayName2',
-                    serviceKeys: { url: 'Im a service key' },
-                    systemType: 'BTP'
-                } as BackendSystem)
-            ).toEqual('systemB (BTP) [userDisplayName2]');
-        });
-
         test('Should create backend system selection choices', async () => {
             expect(await createSystemChoices()).toEqual([
                 {
@@ -107,7 +86,7 @@ describe('Test system selection prompt helpers', () => {
                     }
                 },
                 {
-                    name: `${backendSystemReentrance.name} (S4HC)`,
+                    name: `${backendSystemReentrance.name} (ABAP Cloud)`,
                     value: {
                         system: backendSystemReentrance,
                         type: 'backendSystem'
diff --git a/packages/odata-service-inquirer/test/unit/prompts/sap-system/system-selection/questions.test.ts b/packages/odata-service-inquirer/test/unit/prompts/sap-system/system-selection/questions.test.ts
index f8451d70548..aa58b2fc5ea 100644
--- a/packages/odata-service-inquirer/test/unit/prompts/sap-system/system-selection/questions.test.ts
+++ b/packages/odata-service-inquirer/test/unit/prompts/sap-system/system-selection/questions.test.ts
@@ -30,10 +30,6 @@ jest.mock('../../../../../src/utils', () => ({
     getPromptHostEnvironment: jest.fn()
 }));
 
-jest.mock('@sap-ux/feature-toggle', () => ({
-    isFeatureEnabled: jest.fn()
-}));
-
 const backendSystemBasic: BackendSystem = {
     name: 'http://abap.on.prem:1234',
     url: 'http://abap.on.prem:1234',
@@ -172,7 +168,6 @@ describe('Test system selection prompts', () => {
         isAuthRequiredMock.mockResolvedValue(false);
         validateServiceInfoResultMock = true;
         validateUrlResultMock = true;
-        (isFeatureEnabled as jest.Mock).mockReturnValue(false);
     });
 
     test('should return system selection prompts and choices based on development environment, BAS or non-BAS', async () => {
@@ -586,12 +581,12 @@ describe('Test system selection prompts', () => {
         );
     });
 
-    test('getSystemConnectionQuestions: non-BAS (BackendSystem, AuthType: serviceKeys, RefreshToken)', async () => {
+    test('getSystemConnectionQuestions: non-BAS (BackendSystem, AuthType: serviceKeys)', async () => {
         mockIsAppStudio = false;
         const connectValidator = new ConnectionValidator();
         (getPromptHostEnvironment as jest.Mock).mockReturnValue(hostEnvironment.cli);
         const validateServiceInfoSpy = jest.spyOn(connectValidator, 'validateServiceInfo');
-        const backendSystemServiceKeysClone = { ...backendSystemServiceKeys, refreshToken: '123refreshToken456' };
+        const backendSystemServiceKeysClone = { ...backendSystemServiceKeys };
         backendSystems.push(backendSystemServiceKeysClone);
 
         systemServiceMock.read = jest.fn().mockResolvedValue(backendSystemServiceKeysClone);
@@ -603,11 +598,7 @@ describe('Test system selection prompts', () => {
                 system: backendSystemServiceKeysClone
             } as SystemSelectionAnswerType)
         ).toBe(true);
-        expect(validateServiceInfoSpy).toHaveBeenCalledWith(
-            backendSystemServiceKeysClone.serviceKeys,
-            undefined,
-            backendSystemServiceKeysClone.refreshToken
-        );
+        expect(validateServiceInfoSpy).toHaveBeenCalledWith(backendSystemServiceKeysClone.serviceKeys, undefined);
     });
 
     test('should execute additional prompt on CLI (if autocomplete is not used) to handle YUI validate function', async () => {
diff --git a/packages/store/src/entities/backend-system.ts b/packages/store/src/entities/backend-system.ts
index 90c765921de..8c6a0bca202 100644
--- a/packages/store/src/entities/backend-system.ts
+++ b/packages/store/src/entities/backend-system.ts
@@ -16,7 +16,7 @@ export class BackendSystem {
     @serializable public readonly client?: string;
     @serializable public readonly userDisplayName?: string;
     @serializable public readonly systemType?: string;
-    @sensitiveData public readonly serviceKeys?: unknown;
+    public readonly serviceKeys?: unknown; /** No longer persisted but needed for backward compatibility reads */
     @sensitiveData public readonly refreshToken?: string;
     @sensitiveData public readonly username?: string;
     @sensitiveData public readonly password?: string;
@@ -61,7 +61,7 @@ export class BackendSystemKey implements EntityKey {
     private url: string;
     private client?: string;
 
-    public static from(system: BackendSystem): EntityKey {
+    public static from(system: BackendSystem): BackendSystemKey {
         return new BackendSystemKey({ url: system.url, client: system.client });
     }
 
diff --git a/packages/store/src/services/backend-system.ts b/packages/store/src/services/backend-system.ts
index cfbf4dfe39f..b741f98370d 100644
--- a/packages/store/src/services/backend-system.ts
+++ b/packages/store/src/services/backend-system.ts
@@ -2,8 +2,7 @@ import type { Logger } from '@sap-ux/logger';
 import type { Service, ServiceRetrievalOptions } from '.';
 import type { DataProvider } from '../data-provider';
 import { SystemDataProvider } from '../data-provider/backend-system';
-import type { BackendSystemKey } from '../entities/backend-system';
-import { BackendSystem } from '../entities/backend-system';
+import { BackendSystem, BackendSystemKey } from '../entities/backend-system';
 import { text } from '../i18n';
 import type { ServiceOptions } from '../types';
 
@@ -22,7 +21,9 @@ export class SystemService implements Service<BackendSystem, BackendSystemKey> {
         this.validatePartialUpdateInput(entity);
         const existingSystem = await this.readOrThrow(key);
         const updatedEntity = this.mergeProperties(entity, existingSystem);
-        return this.write(updatedEntity);
+        return this.write(updatedEntity, {
+            force: true
+        });
     }
 
     private mergeProperties(update: Partial<BackendSystem>, existingSystem: BackendSystem): BackendSystem {
@@ -51,7 +52,24 @@ export class SystemService implements Service<BackendSystem, BackendSystemKey> {
     public async read(key: BackendSystemKey): Promise<BackendSystem | undefined> {
         return this.dataProvider.read(key);
     }
-    public async write(entity: BackendSystem): Promise<BackendSystem | undefined> {
+
+    /**
+     * Write the backend system to the store. If a backend entity with the same key already exists and error is thrown.
+     * Use the `force` option to overwrite, use with cautions and are sure other clients will not break.
+     *
+     * @param entity the backend system to write
+     * @param options
+     * @param options.force Force overwrite existing backend system with the same key
+     * @returns
+     */
+    public async write(entity: BackendSystem, options?: { force: boolean }): Promise<BackendSystem | undefined> {
+        // Prevent overwrite of existing entity with the same key unless explicitly forced
+        const entityKey = BackendSystemKey.from(entity);
+        const existingSystem = await this.read(BackendSystemKey.from(entity));
+
+        if (!options?.force && existingSystem) {
+            throw new Error(text('error.backendSystemEntityKeyExists', { entityKey: entityKey.getId() }));
+        }
         return this.dataProvider.write(entity);
     }
     public async delete(entity: BackendSystem): Promise<boolean> {
diff --git a/packages/store/src/services/index.ts b/packages/store/src/services/index.ts
index 0ca5faff9a8..5c92742d2e3 100644
--- a/packages/store/src/services/index.ts
+++ b/packages/store/src/services/index.ts
@@ -8,7 +8,7 @@ export interface ServiceRetrievalOptions {
  */
 export interface Service<Entity, EntityKey> {
     read(key: EntityKey): Promise<Entity | undefined>;
-    write(entity: Entity): Promise<Entity | undefined>;
+    write(entity: Entity, options?: unknown): Promise<Entity | undefined>;
     partialUpdate(key: EntityKey, entity: Partial<Entity>): Promise<Entity | undefined>;
     delete(entity: Entity): Promise<boolean>;
     getAll(options?: ServiceRetrievalOptions): Promise<Entity[] | []>;
diff --git a/packages/store/src/translations/ux-store.i18n.json b/packages/store/src/translations/ux-store.i18n.json
index 5a0782a0759..4f3e6a1cafd 100644
--- a/packages/store/src/translations/ux-store.i18n.json
+++ b/packages/store/src/translations/ux-store.i18n.json
@@ -6,7 +6,8 @@
         "noPropertiesSpecified": "No properties specified for update",
         "systemMigrationFailed": "Migrating systems from secure store failed",
         "systemAlreadyExistsInHybridStore": "System with ID: [{{systemId}}] already exists in hybrid store. Not migrating",
-        "couldNotDeleteRefreshToken": "Could not delete refresh token for [{{- url}}]"
+        "couldNotDeleteRefreshToken": "Could not delete refresh token for [{{- url}}]",
+        "backendSystemEntityKeyExists": "The 'BackendSystem' entity was not written because a 'BackendSystem' entity key already exists: {{entityKey}}."
     },
     "info": {
         "foundRefreshToken": "Found refresh token for {{- systemId}}",
diff --git a/packages/store/src/utils/backend.ts b/packages/store/src/utils/backend.ts
index 239e9a30028..1962dc84449 100644
--- a/packages/store/src/utils/backend.ts
+++ b/packages/store/src/utils/backend.ts
@@ -1,6 +1,6 @@
 import type { BackendSystem } from '../entities/backend-system';
 
-export type SystemType = 'OnPrem' | 'S4HC' | 'BTP' | undefined;
+export type SystemType = 'OnPrem' | 'AbapCloud' | undefined;
 
 /**
  * Determines the backend system type based on the authentication type and service keys (defaults to OnPrem).
@@ -11,9 +11,10 @@ export type SystemType = 'OnPrem' | 'S4HC' | 'BTP' | undefined;
 export function getBackendSystemType(system: BackendSystem): SystemType {
     let backendSystemType: SystemType;
     if (system.authenticationType === 'reentranceTicket') {
-        backendSystemType = 'S4HC';
+        backendSystemType = 'AbapCloud';
     } else if (system.serviceKeys) {
-        backendSystemType = 'BTP';
+        /** @deprecated Basing the system type on the auth method is no longer supported since service key support removal */
+        backendSystemType = 'AbapCloud';
     } else if (system.authenticationType === 'basic' || system.username) {
         backendSystemType = 'OnPrem';
     }
diff --git a/packages/store/test/unit/data-provider/backend-system.test.ts b/packages/store/test/unit/data-provider/backend-system.test.ts
index af8558e3802..342b31040a0 100644
--- a/packages/store/test/unit/data-provider/backend-system.test.ts
+++ b/packages/store/test/unit/data-provider/backend-system.test.ts
@@ -197,12 +197,12 @@ describe('Backend system data provider', () => {
         expect(mockHybridStore.partialUpdate).toHaveBeenNthCalledWith(1, {
             entityName: Entities.BackendSystem,
             id: 'sys1',
-            entity: { systemType: 'S4HC' }
+            entity: { systemType: 'AbapCloud' }
         });
         expect(mockHybridStore.partialUpdate).toHaveBeenNthCalledWith(2, {
             entityName: Entities.BackendSystem,
             id: 'sys2',
-            entity: { systemType: 'BTP' }
+            entity: { systemType: 'AbapCloud' }
         });
         expect(mockHybridStore.partialUpdate).toHaveBeenNthCalledWith(3, {
             entityName: Entities.BackendSystem,
diff --git a/packages/system-access/src/base/connect.ts b/packages/system-access/src/base/connect.ts
index f6413025727..55d2dea1025 100644
--- a/packages/system-access/src/base/connect.ts
+++ b/packages/system-access/src/base/connect.ts
@@ -200,7 +200,7 @@ export async function createAbapServiceProvider(
     if (isAppStudio() && isDestinationTarget(target)) {
         provider = await createAbapDestinationServiceProvider(options, target, prompt);
     } else if (isUrlTarget(target)) {
-        if (target.scp) {
+        if (target.scp || target.serviceKey) {
             provider = await createAbapCloudServiceProvider(options, target, prompt, logger);
         } else if (target.authenticationType === AuthenticationType.ReentranceTicket) {
             provider = createForAbapOnCloud({
diff --git a/packages/telemetry/package.json b/packages/telemetry/package.json
index 5a5aa8bd69b..b0fe11299c6 100644
--- a/packages/telemetry/package.json
+++ b/packages/telemetry/package.json
@@ -41,8 +41,6 @@
     "devDependencies": {
         "jest-extended": "6.0.0",
         "memfs": "3.4.13",
-        "ts-jest": "29.4.1",
-        "ts-node": "10.9.2",
         "unionfs": "4.4.0",
         "dotenv": "16.3.1"
     },
diff --git a/packages/telemetry/test/index.test.ts b/packages/telemetry/test/index.test.ts
index 56a56dd1ecf..94853e74c3e 100644
--- a/packages/telemetry/test/index.test.ts
+++ b/packages/telemetry/test/index.test.ts
@@ -1,5 +1,3 @@
-jest.disableAutomock();
-
 import { EventHeader } from '../src/base/types/event-header';
 
 describe('Telemetry API Tests', () => {
diff --git a/packages/telemetry/test/performance/index.test.ts b/packages/telemetry/test/performance/index.test.ts
index 723a16ce521..cf082f2e55f 100644
--- a/packages/telemetry/test/performance/index.test.ts
+++ b/packages/telemetry/test/performance/index.test.ts
@@ -1,5 +1,3 @@
-jest.disableAutomock();
-
 import { PerformanceMeasurementAPI } from '../../src/base/performance/api';
 import type { Measurement as IMeasurement, PerformanceMeasurement } from '../../src/base/performance/types';
 import { EntryType } from '../../src/base/performance/types';
diff --git a/packages/telemetry/test/util/paramProcessing.test.ts b/packages/telemetry/test/util/paramProcessing.test.ts
index 699b928ee9f..2e8423c5f7e 100644
--- a/packages/telemetry/test/util/paramProcessing.test.ts
+++ b/packages/telemetry/test/util/paramProcessing.test.ts
@@ -1,5 +1,3 @@
-jest.disableAutomock();
-
 import type { dimensions, measurements } from '../../src/base/utils/param-processing';
 import {
     getParamsData,
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index 208acb801ba..0899d254484 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -2260,6 +2260,9 @@ importers:
       '@sap-ux/logger':
         specifier: workspace:*
         version: link:../logger
+      '@sap-ux/store':
+        specifier: workspace:*
+        version: link:../store
       '@types/mem-fs':
         specifier: 1.1.2
         version: 1.1.2
@@ -3655,12 +3658,6 @@ importers:
       memfs:
         specifier: 3.4.13
         version: 3.4.13
-      ts-jest:
-        specifier: 29.4.1
-        version: 29.4.1(@babel/core@7.28.0)(babel-jest@30.0.1)(esbuild@0.25.6)(jest@30.1.1)(typescript@5.9.2)
-      ts-node:
-        specifier: 10.9.2
-        version: 10.9.2(@types/node@20.0.0)(typescript@5.9.2)
       unionfs:
         specifier: 4.4.0
         version: 4.4.0
@@ -7587,7 +7584,7 @@ packages:
       slash: 3.0.0
     dev: true
 
-  /@jest/core@30.1.1(ts-node@10.9.2):
+  /@jest/core@30.1.1:
     resolution: {integrity: sha512-3ncU9peZ3D2VdgRkdZtUceTrDgX5yiDRwAFjtxNfU22IiZrpVWlv/FogzDLYSJQptQGfFo3PcHK86a2oG6WUGg==}
     engines: {node: ^18.14.0 || ^20.0.0 || ^22.0.0 || >=24.0.0}
     peerDependencies:
@@ -7609,7 +7606,7 @@ packages:
       exit-x: 0.2.2
       graceful-fs: 4.2.11
       jest-changed-files: 30.0.5
-      jest-config: 30.1.1(@types/node@20.0.0)(ts-node@10.9.2)
+      jest-config: 30.1.1(@types/node@20.0.0)
       jest-haste-map: 30.1.0
       jest-message-util: 30.1.0
       jest-regex-util: 30.0.1
@@ -18152,7 +18149,7 @@ packages:
       node-notifier:
         optional: true
     dependencies:
-      '@jest/core': 30.1.1(ts-node@10.9.2)
+      '@jest/core': 30.1.1
       '@jest/test-result': 30.1.1
       '@jest/types': 30.0.5
       chalk: 4.1.2
@@ -18215,7 +18212,7 @@ packages:
       - supports-color
     dev: true
 
-  /jest-config@30.1.1(@types/node@20.0.0)(ts-node@10.9.2):
+  /jest-config@30.1.1(@types/node@20.0.0):
     resolution: {integrity: sha512-xuPGUGDw+9fPPnGmddnLnHS/mhKUiJOW7K65vErYmglEPKq65NKwSRchkQ7iv6gqjs2l+YNEsAtbsplxozdOWg==}
     engines: {node: ^18.14.0 || ^20.0.0 || ^22.0.0 || >=24.0.0}
     peerDependencies:
@@ -18255,7 +18252,6 @@ packages:
       pretty-format: 30.0.5
       slash: 3.0.0
       strip-json-comments: 3.1.1
-      ts-node: 10.9.2(@types/node@20.0.0)(typescript@5.9.2)
     transitivePeerDependencies:
       - babel-plugin-macros
       - supports-color
@@ -18860,7 +18856,7 @@ packages:
       node-notifier:
         optional: true
     dependencies:
-      '@jest/core': 30.1.1(ts-node@10.9.2)
+      '@jest/core': 30.1.1
       '@jest/types': 30.0.5
       import-local: 3.2.0
       jest-cli: 30.1.1(@types/node@18.11.9)