diff --git a/CHANGELOG.md b/CHANGELOG.md
index 65db66bf..15154c9b 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -19,6 +19,13 @@ of the new YAML fields below until the version that ships them.
   docs.
   ([docs/quickstart-operator.md])
 
+- **Hostname cardinality override for metrics.** `proxy.metrics.cardinality.hostname_cap`
+  can lower the `hostname` label budget independently from the default
+  per-label cap, enabling deterministic overflow tests and tighter
+  multi-tenant Prometheus budgets.
+  ([crates/sbproxy-config/src/types.rs],
+  [crates/sbproxy-observe/src/cardinality.rs])
+
 - **`release-fast` build profile for CI images.** Docker-based CI and
   local kind smoke-test builds can now use `CARGO_PROFILE=release-fast`
   to skip fat LTO and use more codegen units, cutting link memory/time
diff --git a/crates/sbproxy-config/src/types.rs b/crates/sbproxy-config/src/types.rs
index 5e7b1624..b349be68 100644
--- a/crates/sbproxy-config/src/types.rs
+++ b/crates/sbproxy-config/src/types.rs
@@ -849,12 +849,16 @@ pub struct MetricsConfig {
     /// collapsed to `__other__`. Defaults to 1 000.
     #[serde(default = "default_max_cardinality")]
     pub max_cardinality_per_label: usize,
+    /// Per-label cardinality overrides.
+    #[serde(default)]
+    pub cardinality: MetricsCardinalityConfig,
 }
 
 impl Default for MetricsConfig {
     fn default() -> Self {
         Self {
             max_cardinality_per_label: default_max_cardinality(),
+            cardinality: MetricsCardinalityConfig::default(),
         }
     }
 }
@@ -863,6 +867,13 @@ fn default_max_cardinality() -> usize {
     1000
 }
 
+/// Per-label metrics cardinality overrides.
+#[derive(Debug, Clone, Default, Deserialize, Serialize)]
+pub struct MetricsCardinalityConfig {
+    /// Optional override for the `hostname` label cap.
+    pub hostname_cap: Option<usize>,
+}
+
 // --- Access Log Config ---
 
 /// Structured-JSON access-log emission, off by default.
diff --git a/crates/sbproxy-core/src/server.rs b/crates/sbproxy-core/src/server.rs
index 705a6c12..5e9d55f3 100644
--- a/crates/sbproxy-core/src/server.rs
+++ b/crates/sbproxy-core/src/server.rs
@@ -11146,6 +11146,15 @@ pub fn run(config_path: &str) -> anyhow::Result<()> {
     let server_config = compiled.server.clone();
     let hostnames: Vec<String> = compiled.host_map.keys().map(|k| k.to_string()).collect();
 
+    if let Some(metrics_cfg) = server_config.metrics.as_ref() {
+        let _ = sbproxy_observe::metrics::init_cardinality_limiter(
+            sbproxy_observe::CardinalityConfig {
+                max_per_label: metrics_cfg.max_cardinality_per_label,
+                hostname_cap: metrics_cfg.cardinality.hostname_cap,
+            },
+        );
+    }
+
     // Initialise the AI provider catalog from the embedded YAML, with
     // an optional override path from `proxy.ai_providers_file`: use
     // the override file when readable, fall back to the embedded
diff --git a/crates/sbproxy-observe/src/cardinality.rs b/crates/sbproxy-observe/src/cardinality.rs
index efd1cb60..34b3b775 100644
--- a/crates/sbproxy-observe/src/cardinality.rs
+++ b/crates/sbproxy-observe/src/cardinality.rs
@@ -20,15 +20,30 @@ pub fn log_demotion(label_name: &str, value: &str) {
 }
 
 /// Configuration for cardinality limiting.
+#[derive(Debug, Clone)]
 pub struct CardinalityConfig {
     /// Max unique values per label name. Default: 1000.
     pub max_per_label: usize,
+    /// Optional hostname-label override. Useful for tests and
+    /// deployments that need a tighter route-cardinality budget.
+    pub hostname_cap: Option<usize>,
 }
 
 impl Default for CardinalityConfig {
     fn default() -> Self {
         Self {
             max_per_label: 1000,
+            hostname_cap: None,
+        }
+    }
+}
+
+impl CardinalityConfig {
+    /// Return the effective cap for `label_name`.
+    pub fn cap_for_label(&self, label_name: &str) -> usize {
+        match (label_name, self.hostname_cap) {
+            ("hostname", Some(cap)) => cap,
+            _ => budget_for_label(label_name),
         }
     }
 }
@@ -111,7 +126,7 @@ impl CardinalityLimiter {
     /// callers of [`sanitize`](Self::sanitize) keep the workspace
     /// default.
     pub fn sanitize_budget(&self, label_name: &str, value: &str) -> String {
-        let cap = budget_for_label(label_name);
+        let cap = self.config.cap_for_label(label_name);
         self.sanitize_with_cap(label_name, value, cap)
     }
 
@@ -164,7 +179,10 @@ mod tests {
     use std::sync::Arc;
 
     fn limiter_with_max(max: usize) -> CardinalityLimiter {
-        CardinalityLimiter::new(CardinalityConfig { max_per_label: max })
+        CardinalityLimiter::new(CardinalityConfig {
+            max_per_label: max,
+            hostname_cap: None,
+        })
     }
 
     // --- log_demotion ---
@@ -299,12 +317,25 @@ mod tests {
         assert_eq!(budget_for_label("totally-novel-label"), 1000);
     }
 
+    #[test]
+    fn hostname_cap_override_wins_over_adr_budget() {
+        let config = CardinalityConfig {
+            max_per_label: 1_000_000,
+            hostname_cap: Some(2),
+        };
+        let lim = CardinalityLimiter::new(config);
+        assert_eq!(lim.sanitize_budget("hostname", "a.example"), "a.example");
+        assert_eq!(lim.sanitize_budget("hostname", "b.example"), "b.example");
+        assert_eq!(lim.sanitize_budget("hostname", "c.example"), OTHER_LABEL);
+    }
+
     #[test]
     fn sanitize_budget_demotes_at_per_label_cap_for_agent_class() {
         // agent_class budget is 8 per ADR. Insert 8 distinct values,
         // then verify the 9th overflows to __other__.
         let lim = CardinalityLimiter::new(CardinalityConfig {
             max_per_label: 1_000_000,
+            hostname_cap: None,
         });
         for i in 0..8 {
             let v = format!("class-{i}");
@@ -321,6 +352,7 @@ mod tests {
     fn sanitize_budget_payment_rail_caps_at_six() {
         let lim = CardinalityLimiter::new(CardinalityConfig {
             max_per_label: 1_000_000,
+            hostname_cap: None,
         });
         for v in &[
             "none",
@@ -345,6 +377,7 @@ mod tests {
         // fallback path doesn't accidentally cap at zero.
         let lim = CardinalityLimiter::new(CardinalityConfig {
             max_per_label: 1_000_000,
+            hostname_cap: None,
         });
         assert_eq!(lim.sanitize_budget("oddball", "value-1"), "value-1");
         assert_eq!(lim.sanitize_budget("oddball", "value-2"), "value-2");
@@ -359,6 +392,7 @@ mod tests {
         // string or "__other__", and the accepted count must not exceed 500.
         let lim = Arc::new(CardinalityLimiter::new(CardinalityConfig {
             max_per_label: 500,
+            hostname_cap: None,
         }));
 
         let mut handles = Vec::new();
diff --git a/crates/sbproxy-observe/src/metrics.rs b/crates/sbproxy-observe/src/metrics.rs
index ebb2123e..649fe855 100644
--- a/crates/sbproxy-observe/src/metrics.rs
+++ b/crates/sbproxy-observe/src/metrics.rs
@@ -557,7 +557,8 @@ pub fn record_request_with_labels(
     bytes_out: u64,
     agent: AgentLabels<'_>,
 ) {
-    let origin_san = sanitize_label("origin", origin);
+    let hostname_san = sanitize_label_budget("sbproxy_requests_total", "hostname", origin);
+    let origin_san = sanitize_label_budget("sbproxy_origin_requests_total", "origin", origin);
     let status_str = status.to_string();
 
     // --- Wave 1 / G1.6: per-agent labels on sbproxy_requests_total ---
@@ -582,11 +583,12 @@ pub fn record_request_with_labels(
 
     let m = metrics();
     // sbproxy_requests_total now carries the full Wave 1 label set.
-    // Sanitised hostname is reused via origin_san (cardinality cap
-    // 200 per ADR; same numeric cap, different label name).
+    // Sanitise with the metric's public label name (`hostname`) so
+    // `metrics.cardinality.hostname_cap` can lower this budget without
+    // affecting the per-origin views below.
     m.requests_total
         .with_label_values(&[
-            &origin_san,
+            &hostname_san,
             method,
             &status_str,
             &agent_id,
@@ -1143,7 +1145,10 @@ mod tests {
     #[test]
     fn test_cardinality_limiter_overflow_to_other() {
         // Use a fresh limiter with a tiny cap to test overflow.
-        let lim = CardinalityLimiter::new(CardinalityConfig { max_per_label: 3 });
+        let lim = CardinalityLimiter::new(CardinalityConfig {
+            max_per_label: 3,
+            hostname_cap: None,
+        });
 
         let a = lim.sanitize("origin", "a.com");
         let b = lim.sanitize("origin", "b.com");
@@ -1169,6 +1174,7 @@ mod tests {
         // via a dedicated limiter (we can't reset the global one safely in tests).
         let lim = CardinalityLimiter::new(CardinalityConfig {
             max_per_label: 1000,
+            hostname_cap: None,
         });
         for i in 0..1000 {
             lim.sanitize("origin", &format!("overflow-origin-{i}.example.com"));
diff --git a/docs/configuration.md b/docs/configuration.md
index f97564d4..7afb9ec4 100644
--- a/docs/configuration.md
+++ b/docs/configuration.md
@@ -153,6 +153,8 @@ proxy:
 
   metrics:
     max_cardinality_per_label: 1000
+    cardinality:
+      hostname_cap: 200
 
   admin:
     enabled: false
@@ -216,7 +218,8 @@ socket level.
 
 | Field | Type | Default | Description |
 |-------|------|---------|-------------|
-| `max_cardinality_per_label` | int | 1000 | Cap on unique label values per metric. New values are collapsed to `__other__`. |
+| `max_cardinality_per_label` | int | 1000 | Default cap on unique label values per metric. New values are collapsed to `__other__`. |
+| `cardinality.hostname_cap` | int | 200 | Optional override for the `hostname` label budget. Useful for high-tenant-count deployments and deterministic overflow tests. |
 
 ### access_log
 
diff --git a/docs/features.md b/docs/features.md
index 89f38d23..4ca8ffdc 100644
--- a/docs/features.md
+++ b/docs/features.md
@@ -1424,6 +1424,8 @@ proxy:
     port: 9090
   metrics:
     max_cardinality_per_label: 1000
+    cardinality:
+      hostname_cap: 200
 ```
 
 ```bash
diff --git a/docs/manual.md b/docs/manual.md
index e96f6179..2ab9fbe2 100644
--- a/docs/manual.md
+++ b/docs/manual.md
@@ -420,7 +420,7 @@ The proxy serves `/metrics` on its main HTTP port (`http_bind_port`, default `80
 GET http://localhost:8080/metrics
 ```
 
-Label cardinality is capped by `metrics.max_cardinality_per_label` (default `1000`). Values past the cap collapse into the literal `__other__`.
+Label cardinality is capped by `metrics.max_cardinality_per_label` (default `1000`). The `hostname` label uses its ADR budget by default and can be overridden with `metrics.cardinality.hostname_cap`. Values past the effective cap collapse into the literal `__other__`.
 
 #### Hostname-scoped metrics
 
diff --git a/e2e/tests/metrics_per_agent.rs b/e2e/tests/metrics_per_agent.rs
index a4304611..6575cdc1 100644
--- a/e2e/tests/metrics_per_agent.rs
+++ b/e2e/tests/metrics_per_agent.rs
@@ -25,6 +25,9 @@ use sbproxy_e2e::ProxyHarness;
 const FIXTURE: &str = r#"
 proxy:
   http_bind_port: 0  # overridden by the harness
+  metrics:
+    cardinality:
+      hostname_cap: 100
 origins:
   "blog.localhost":
     action:
@@ -132,7 +135,6 @@ fn cardinality_cap_keeps_series_count_bounded() {
 // --- Test 3: overflow sentinel + demotion counter ---
 
 #[test]
-#[ignore = "TODO(wave3): hostname cardinality cap is above 250 in default config; overflow sentinel + demotion counter wired but not triggered by this fixture. Needs either a higher-volume fixture or a config knob to lower the cap for tests."]
 fn cardinality_overflow_emits_sentinel_and_increments_demotion_counter() {
     let harness = ProxyHarness::start_with_yaml(FIXTURE).expect("start proxy");