diff --git a/web/pgadmin/utils/driver/psycopg3/server_manager.py b/web/pgadmin/utils/driver/psycopg3/server_manager.py
index 95b3f2645d3..a1991cac4ea 100644
--- a/web/pgadmin/utils/driver/psycopg3/server_manager.py
+++ b/web/pgadmin/utils/driver/psycopg3/server_manager.py
@@ -652,14 +652,15 @@ def create_connection_string(self, database, user, password=None):
         parameters.
         """
         dsn_args = dict()
-        dsn_args['host'] = \
-            self.local_bind_host if self.use_ssh_tunnel else self.host
+        dsn_args['host'] = self.host
         dsn_args['port'] = \
             self.local_bind_port if self.use_ssh_tunnel else self.port
         dsn_args['dbname'] = database
         dsn_args['user'] = user
         if self.service is not None:
             dsn_args['service'] = self.service
+        if self.use_ssh_tunnel:
+            dsn_args['hostaddr'] = self.local_bind_host
 
         # Make a copy to display the connection string on GUI.
         display_dsn_args = dsn_args.copy()
@@ -680,10 +681,9 @@ def create_connection_string(self, database, user, password=None):
                     with_complete_path = True
                     value = get_complete_file_path(value)
 
-                # In case of host address need to check ssh tunnel flag.
-                if key == 'hostaddr':
-                    value = self.local_bind_host if self.use_ssh_tunnel else \
-                        value
+                # If key is hostaddr and ssh tunnel is in use don't overwrite.
+                if key == 'hostaddr' and self.use_ssh_tunnel:
+                    continue
 
                 dsn_args[key] = value
                 display_dsn_args[key] = orig_value if with_complete_path else \