diff --git a/.env b/.env
index c276540f41..3f46179f0f 100644
--- a/.env
+++ b/.env
@@ -26,7 +26,7 @@ _APP_DOMAIN=traefik
 _APP_CONSOLE_DOMAIN=localhost
 _APP_DOMAIN_FUNCTIONS=functions.localhost
 _APP_DOMAIN_SITES=sites.localhost
-_APP_DOMAIN_TARGET_CNAME=cname.tests.appwrite.io
+_APP_DOMAIN_TARGET_CNAME=cname.localhost
 _APP_DOMAIN_TARGET_A=203.0.0.1
 _APP_DOMAIN_TARGET_AAAA=::1
 _APP_DOMAIN_TARGET_CAA=digicert.com
diff --git a/docker-compose.yml b/docker-compose.yml
index 86c88a3b27..804435ab36 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -1078,6 +1078,7 @@ services:
   coredns: # DNS server for testing purposes (Proxy APIs)
     image: coredns/coredns:1.12.4
     container_name: appwrite-coredns
+    restart: unless-stopped
     <<: *x-logging
     command: ["-conf", "/mnt/resources/Corefile"]
     ports:
diff --git a/tests/e2e/Services/Proxy/ProxyCustomServerTest.php b/tests/e2e/Services/Proxy/ProxyCustomServerTest.php
index 32f8e96a3f..1e321f9ce8 100644
--- a/tests/e2e/Services/Proxy/ProxyCustomServerTest.php
+++ b/tests/e2e/Services/Proxy/ProxyCustomServerTest.php
@@ -543,12 +543,113 @@ class ProxyCustomServerTest extends Scope
 
     public function testRuleVerification(): void
     {
-        // TODO: Implement
-        // wrong-a-webapp.com
-        // webapp.com
-        // stage.webapp.com
-        // stage-wrong-cname.webapp.com
-        // stage-wrong-caa.webapp.com
-        // stage-correct-caa.webapp.com
+        // Site rule can verify
+        $setup = $this->setupSite();
+        $siteId = $setup['siteId'];
+        
+        $rule = $this->createSiteRule('stage-site.webapp.com', $siteId);
+        \var_dump($rule);
+        $this->assertEquals(201, $rule['headers']['status-code']);
+        $this->assertEquals('verifying', $rule['body']['status']);
+        $this->assertEmpty($rule['body']['validationLogs']);
+        
+        $this->cleanupRule($rule['body']['$id']);
+        $this->cleanupSite($siteId);
+
+        // Function rule can verify
+        $setup = $this->setupFunction();
+        $functionId = $setup['functionId'];
+        
+        $rule = $this->createFunctionRule('stage-function.webapp.com', $functionId);
+        $this->assertEquals(201, $rule['headers']['status-code']);
+        $this->assertEquals('verifying', $rule['body']['status']);
+        
+        $rule2 = $this->createAPIRule('stage-site.webapp.com');
+        $this->assertEquals(201, $rule2['headers']['status-code']);
+        $this->assertEquals('created', $rule2['body']['status']);
+        $this->assertStringContainsString('has incorrect A value', implode(' ', $rule2['body']['validationLogs']));
+        
+        $this->cleanupRule($rule['body']['$id']);
+        $this->cleanupRule($rule2['body']['$id']);
+        $this->cleanupFunction($functionId);
+
+        // 3. Wrong A record fails to verify
+        $rule = $this->createAPIRule('wrong-a-webapp.com');
+        $this->assertEquals(201, $rule['headers']['status-code']);
+        $this->assertEquals('created', $rule['body']['status']);
+        $this->assertStringContainsString('has incorrect A value', implode(' ', $rule['body']['validationLogs']));
+        
+        $ruleId = $rule['body']['$id'];
+        $updatedRule = $this->updateRuleVerification($ruleId);
+        $this->assertEquals(200, $updatedRule['headers']['status-code']);
+        $this->assertEquals('created', $updatedRule['body']['status']);
+        $this->assertStringContainsString('has incorrect A value', implode(' ', $updatedRule['body']['validationLogs']));
+        
+        $this->cleanupRule($ruleId);
+
+        // 4. Correct A record can verify
+        $rule = $this->createAPIRule('webapp.com');
+        $this->assertEquals(201, $rule['headers']['status-code']);
+        $this->assertEquals('verifying', $rule['body']['status']);
+        $this->assertEmpty($rule['body']['validationLogs']);
+        
+        $this->cleanupRule($rule['body']['$id']);
+
+        // 5. Correct CNAME record can verify (no CAA record)
+        $rule = $this->createAPIRule('stage.webapp.com');
+        $this->assertEquals(201, $rule['headers']['status-code']);
+        $this->assertEquals('verifying', $rule['body']['status']);
+        $this->assertEmpty($rule['body']['validationLogs']);
+        
+        $this->cleanupRule($rule['body']['$id']);
+
+        // 6. Missing CNAME record fails to verify
+        $rule = $this->createAPIRule('stage-missing-cname.webapp.com');
+        $this->assertEquals(201, $rule['headers']['status-code']);
+        $this->assertEquals('created', $rule['body']['status']);
+        $this->assertStringContainsString('is missing CNAME record', implode(' ', $rule['body']['validationLogs']));
+        
+        $ruleId = $rule['body']['$id'];
+        $updatedRule = $this->updateRuleVerification($ruleId);
+        $this->assertEquals(200, $updatedRule['headers']['status-code']);
+        $this->assertEquals('created', $updatedRule['body']['status']);
+        $this->assertStringContainsString('is missing CNAME record', implode(' ', $updatedRule['body']['validationLogs']));
+        
+        $this->cleanupRule($ruleId);
+
+        // 7. Wrong CNAME record fails to verify
+        $rule = $this->createAPIRule('stage-wrong-cname.webapp.com');
+        $this->assertEquals(201, $rule['headers']['status-code']);
+        $this->assertEquals('created', $rule['body']['status']);
+        $this->assertStringContainsString('has incorrect CNAME value', implode(' ', $rule['body']['validationLogs']));
+        
+        $ruleId = $rule['body']['$id'];
+        $updatedRule = $this->updateRuleVerification($ruleId);
+        $this->assertEquals(200, $updatedRule['headers']['status-code']);
+        $this->assertEquals('created', $updatedRule['body']['status']);
+        $this->assertStringContainsString('has incorrect CNAME value', implode(' ', $updatedRule['body']['validationLogs']));
+        
+        $this->cleanupRule($ruleId);
+
+        // 8. Wrong CAA record fails to verify
+        $rule = $this->createAPIRule('stage-wrong-caa.webapp.com');
+        $this->assertEquals(201, $rule['headers']['status-code']);
+        $this->assertEquals('created', $rule['body']['status']);
+        $this->assertStringContainsString('has incorrect CAA value', implode(' ', $rule['body']['validationLogs']));
+        
+        $ruleId = $rule['body']['$id'];
+        $updatedRule = $this->updateRuleVerification($ruleId);
+        $this->assertEquals(200, $updatedRule['headers']['status-code']);
+        $this->assertEquals('created', $updatedRule['body']['status']);
+        $this->assertStringContainsString('has incorrect CAA value', implode(' ', $updatedRule['body']['validationLogs']));
+        
+        $this->cleanupRule($ruleId);
+
+        // 9. Correct CAA record can verify
+        $rule = $this->createAPIRule('stage-correct-caa.webapp.com');
+        $this->assertEquals(201, $rule['headers']['status-code']);
+        $this->assertEquals('verifying', $rule['body']['status']);
+        
+        $this->cleanupRule($rule['body']['$id']);
     }
 }
diff --git a/tests/resources/coredns/webapp.com.zone b/tests/resources/coredns/webapp.com.zone
index 46ca9b65b2..e35c7b9eae 100644
--- a/tests/resources/coredns/webapp.com.zone
+++ b/tests/resources/coredns/webapp.com.zone
@@ -7,13 +7,17 @@ ns1 IN A 127.0.0.1
 ; Custom DNS records
 @ IN A 203.0.0.1
 
-stage IN CNAME cname.tests.appwrite.io
+stage-site IN CNAME sites.localhost
+
+stage-function IN CNAME functions.localhost
+
+stage IN CNAME cname.localhost
 ; No CAA record intentionally
 
 stage-wrong-cname IN CNAME cname-wrong.tests.appwrite.io
 
-stage-wrong-caa IN CNAME cname.tests.appwrite.io
+stage-wrong-caa IN CNAME cname.localhost
 stage-wrong-caa IN CAA 0 issue "unknown-issuer.org"
 
-stage-correct-caa IN CNAME cname.tests.appwrite.io
+stage-correct-caa IN CNAME cname.localhost
 stage-correct-caa IN CAA 0 issue "digicert.com"