diff --git a/samples/WebAPI/Program.cs b/samples/WebAPI/Program.cs
index 111413ee..0bfdf968 100644
--- a/samples/WebAPI/Program.cs
+++ b/samples/WebAPI/Program.cs
@@ -2,20 +2,64 @@
 // Licensed under the MIT License.
 
 using System.Text.Json.Serialization;
+using DurableTask.Core;
+using Grpc.Net.Client;
+using Microsoft.AspNetCore.Server.Kestrel.Core;
 using Microsoft.DurableTask;
 using Microsoft.DurableTask.Client;
+using Microsoft.DurableTask.Testing.Sidecar;
+using Microsoft.DurableTask.Testing.Sidecar.Grpc;
 using Microsoft.DurableTask.Worker;
 
 WebApplicationBuilder builder = WebApplication.CreateBuilder(args);
 
-// Add all the generated tasks
+// The REST API will listen on port 8080 (HTTP/1.1) and the gRPC sidecar will listen on port 8081 (HTTP/2)
+int restPort = 8080;
+int grpcPort = 8081;
+
+// Configure Kestrel with two endpoints:
+// - Port 8080 for REST API (HTTP/1.1)
+// - Port 8081 for gRPC sidecar (HTTP/2)
+builder.WebHost.ConfigureKestrel(options =>
+{
+    options.ListenAnyIP(restPort, listenOptions =>
+    {
+        listenOptions.Protocols = HttpProtocols.Http1;
+    });
+    options.ListenAnyIP(grpcPort, listenOptions =>
+    {
+        listenOptions.Protocols = HttpProtocols.Http2;
+    });
+});
+
+// Create the in-memory orchestration service that will store all orchestration state.
+// This eliminates the need for an external gRPC sidecar.
+InMemoryOrchestrationService orchestrationService = new();
+
+// Register the in-memory orchestration service for the gRPC sidecar
+builder.Services.AddSingleton<IOrchestrationService>(orchestrationService);
+builder.Services.AddSingleton<IOrchestrationServiceClient>(orchestrationService);
+builder.Services.AddSingleton<TaskHubGrpcServer>();
+builder.Services.AddGrpc();
+
+// Create the gRPC channel that will connect to the embedded sidecar on the gRPC port.
+// Note: GrpcChannel.ForAddress() doesn't establish a connection until a call is made,
+// and the DurableTask worker starts making calls after the host is fully started.
+GrpcChannel grpcChannel = GrpcChannel.ForAddress($"http://localhost:{grpcPort}");
+
+// Add all the generated tasks and configure worker to use the embedded gRPC sidecar
 builder.Services.AddDurableTaskWorker(builder =>
 {
     builder.AddTasks(r => r.AddAllGeneratedTasks());
-    builder.UseGrpc();
+    builder.UseGrpc(grpcChannel);
 });
 
-builder.Services.AddDurableTaskClient(b => b.UseGrpc());
+// Configure the durable task client to use the embedded gRPC sidecar
+builder.Services.AddDurableTaskClient(builder =>
+{
+    builder.UseGrpc(grpcChannel);
+    builder.RegisterDirectly();
+});
 
 // Configure the HTTP request pipeline.
 builder.Services.AddControllers().AddJsonOptions(options =>
@@ -25,5 +69,9 @@
 });
 
 WebApplication app = builder.Build();
+
+// Map the gRPC sidecar service endpoint
+app.MapGrpcService<TaskHubGrpcServer>();
+
 app.MapControllers();
-app.Run("http://0.0.0.0:8080");
+app.Run();
diff --git a/samples/WebAPI/Properties/launchSettings.json b/samples/WebAPI/Properties/launchSettings.json
index e119b069..2d6964b5 100644
--- a/samples/WebAPI/Properties/launchSettings.json
+++ b/samples/WebAPI/Properties/launchSettings.json
@@ -1,32 +1,14 @@
 {
   "$schema": "https://json.schemastore.org/launchsettings.json",
-  "iisSettings": {
-    "windowsAuthentication": false,
-    "anonymousAuthentication": true,
-    "iisExpress": {
-      "applicationUrl": "http://localhost:47697",
-      "sslPort": 44371
-    }
-  },
   "profiles": {
     "WebAPI": {
       "commandName": "Project",
-      "launchBrowser": true,
-      "launchUrl": "weatherforecast",
+      "launchBrowser": false,
+      "applicationUrl": "http://localhost:8080",
       "environmentVariables": {
-        "ASPNETCORE_ENVIRONMENT": "Development",
-        "DURABLETASK_SIDECAR_ADDRESS": "http://localhost:4001"
+        "ASPNETCORE_ENVIRONMENT": "Development"
       },
-      "applicationUrl": "https://localhost:7217;http://localhost:5217",
       "dotnetRunMessages": true
-    },
-    "IIS Express": {
-      "commandName": "IISExpress",
-      "launchBrowser": true,
-      "launchUrl": "weatherforecast",
-      "environmentVariables": {
-        "ASPNETCORE_ENVIRONMENT": "Development"
-      }
     }
   }
 }
\ No newline at end of file
diff --git a/samples/WebAPI/WebAPI.csproj b/samples/WebAPI/WebAPI.csproj
index 84680817..d101c47d 100644
--- a/samples/WebAPI/WebAPI.csproj
+++ b/samples/WebAPI/WebAPI.csproj
@@ -9,9 +9,19 @@
   </PropertyGroup>
 
   <ItemGroup>
+    <!-- Real projects would use package references -->
+    <!--
     <PackageReference Include="Microsoft.DurableTask.Client.Grpc" />
     <PackageReference Include="Microsoft.DurableTask.Worker.Grpc" />
+    -->
     <PackageReference Include="Microsoft.DurableTask.Generators" OutputItemType="Analyzer" />
   </ItemGroup>
 
+  <ItemGroup>
+    <!-- Using p2p references so we can show latest changes in samples and to include the InProcessTestHost. -->
+    <ProjectReference Include="$(SrcRoot)Client/Grpc/Client.Grpc.csproj" />
+    <ProjectReference Include="$(SrcRoot)Worker/Grpc/Worker.Grpc.csproj" />
+    <ProjectReference Include="$(SrcRoot)InProcessTestHost/InProcessTestHost.csproj" />
+  </ItemGroup>
+
 </Project>