diff --git a/thirdparty/sqd.go b/thirdparty/sqd.go
index 6b6c2b1ab..3c388cc52 100644
--- a/thirdparty/sqd.go
+++ b/thirdparty/sqd.go
@@ -71,13 +71,13 @@ func (v *SqdVendor) GenerateConfigs(ctx context.Context, logger *zerolog.Logger,
 		return nil, fmt.Errorf("sqd vendor requires upstream.evm.chainId to be defined")
 	}
 
-	// If endpoint not set on upstream, read from settings
-	if upstream.Endpoint == "" {
-		endpoint, ok := settings["endpoint"].(string)
-		if !ok || endpoint == "" {
-			return nil, fmt.Errorf("sqd vendor requires endpoint in upstream config or settings")
-		}
-		upstream.Endpoint = endpoint
+	// Always prefer endpoint from settings if it contains {chainId} placeholder
+	// This ensures the provider's configured endpoint takes precedence over any
+	// empty or invalid endpoint that might be set on the upstream from overrides
+	if settingsEndpoint, ok := settings["endpoint"].(string); ok && settingsEndpoint != "" && strings.Contains(settingsEndpoint, "{chainId}") {
+		upstream.Endpoint = settingsEndpoint
+	} else if upstream.Endpoint == "" {
+		return nil, fmt.Errorf("sqd vendor requires endpoint in settings with {chainId} placeholder")
 	}
 
 	if !strings.Contains(upstream.Endpoint, "{chainId}") {