diff --git a/docker-compose-cpu.yml b/docker-compose-cpu.yml
index 6bda8fe1..b04be7b9 100644
--- a/docker-compose-cpu.yml
+++ b/docker-compose-cpu.yml
@@ -101,6 +101,7 @@ services:
     ports:
       - "7860:7860"
     environment:
+      - LANGFLOW_DEACTIVATE_TRACING=true
       - OPENAI_API_KEY=${OPENAI_API_KEY}
       - LANGFLOW_LOAD_FLOWS_PATH=/app/flows
       - LANGFLOW_SECRET_KEY=${LANGFLOW_SECRET_KEY}
diff --git a/docker-compose.yml b/docker-compose.yml
index 50ee0f41..f61e81a5 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -101,6 +101,7 @@ services:
     ports:
       - "7860:7860"
     environment:
+      - LANGFLOW_DEACTIVATE_TRACING=true
       - OPENAI_API_KEY=${OPENAI_API_KEY}
       - LANGFLOW_LOAD_FLOWS_PATH=/app/flows
       - LANGFLOW_SECRET_KEY=${LANGFLOW_SECRET_KEY}
diff --git a/frontend/components/docling-health-banner.tsx b/frontend/components/docling-health-banner.tsx
index b15a009c..940e24cb 100644
--- a/frontend/components/docling-health-banner.tsx
+++ b/frontend/components/docling-health-banner.tsx
@@ -96,7 +96,10 @@ export function useDoclingHealth() {
 	const { data: health, isLoading, isError } = useDoclingHealthQuery();
 
 	const isHealthy = health?.status === "healthy" && !isError;
-	const isUnhealthy = health?.status === "unhealthy" || isError;
+	// Only consider unhealthy if backend is up but docling is down
+	// Don't show banner if backend is unavailable
+	const isUnhealthy = health?.status === "unhealthy";
+	const isBackendUnavailable = health?.status === "backend-unavailable" || isError;
 
 	return {
 		health,
@@ -104,6 +107,7 @@ export function useDoclingHealth() {
 		isError,
 		isHealthy,
 		isUnhealthy,
+		isBackendUnavailable,
 	};
 }
 
diff --git a/frontend/src/app/api/queries/useDoclingHealthQuery.ts b/frontend/src/app/api/queries/useDoclingHealthQuery.ts
index 8db560d0..e0f8ab0f 100644
--- a/frontend/src/app/api/queries/useDoclingHealthQuery.ts
+++ b/frontend/src/app/api/queries/useDoclingHealthQuery.ts
@@ -5,7 +5,7 @@ import {
 } from "@tanstack/react-query";
 
 export interface DoclingHealthResponse {
-  status: "healthy" | "unhealthy";
+  status: "healthy" | "unhealthy" | "backend-unavailable";
   message?: string;
 }
 
@@ -26,15 +26,23 @@ export const useDoclingHealthQuery = (
 
       if (response.ok) {
         return { status: "healthy" };
+      } else if (response.status === 503) {
+        // Backend is up but docling is down (backend returns 503 for docling issues)
+        return {
+          status: "unhealthy",
+          message: `Health check failed with status: ${response.status}`,
+        };
       } else {
+        // Other backend errors - treat as docling unhealthy
         return {
           status: "unhealthy",
           message: `Health check failed with status: ${response.status}`,
         };
       }
     } catch (error) {
+      // Network error - backend is likely down, don't show docling banner
       return {
-        status: "unhealthy",
+        status: "backend-unavailable",
         message: error instanceof Error ? error.message : "Connection failed",
       };
     }