diff --git a/freqtrade/rpc/api_server/api_v1.py b/freqtrade/rpc/api_server/api_v1.py
index 9d23ec6ad..8aafa04c6 100644
--- a/freqtrade/rpc/api_server/api_v1.py
+++ b/freqtrade/rpc/api_server/api_v1.py
@@ -7,7 +7,7 @@ from fastapi.exceptions import HTTPException
 
 from freqtrade import __version__
 from freqtrade.data.history import get_datahandler
-from freqtrade.enums import CandleType, State, TradingMode
+from freqtrade.enums import CandleType, RunMode, State, TradingMode
 from freqtrade.exceptions import OperationalException
 from freqtrade.rpc import RPC
 from freqtrade.rpc.api_server.api_pairlists import handleExchangePayload
@@ -483,7 +483,7 @@ def markets(
     config=Depends(get_config),
     rpc: RPC | None = Depends(get_rpc_optional),
 ):
-    if not rpc:
+    if not rpc or config["runmode"] == RunMode.WEBSERVER:
         # webserver mode
         config_loc = deepcopy(config)
         handleExchangePayload(query, config_loc)
diff --git a/tests/rpc/test_rpc_apiserver.py b/tests/rpc/test_rpc_apiserver.py
index 777703a22..af33cd95c 100644
--- a/tests/rpc/test_rpc_apiserver.py
+++ b/tests/rpc/test_rpc_apiserver.py
@@ -3009,3 +3009,55 @@ def test_api_download_data(botclient, mocker, tmp_path):
     assert response["job_category"] == "download_data"
     assert response["status"] == "failed"
     assert response["error"] == "Download error"
+
+
+def test_api_markets_live(botclient):
+    ftbot, client = botclient
+
+    rc = client_get(client, f"{BASE_URI}/markets")
+    assert_response(rc, 200)
+    response = rc.json()
+    assert "markets" in response
+    assert len(response["markets"]) >= 0
+    assert response["markets"]["XRP/USDT"] == {
+        "base": "XRP",
+        "quote": "USDT",
+        "symbol": "XRP/USDT",
+        "spot": True,
+        "swap": False,
+    }
+
+    assert "BTC/USDT" in response["markets"]
+    assert "XRP/BTC" in response["markets"]
+
+    rc = client_get(
+        client,
+        f"{BASE_URI}/markets?base=XRP",
+    )
+    assert_response(rc, 200)
+    response = rc.json()
+    assert "XRP/USDT" in response["markets"]
+    assert "XRP/BTC" in response["markets"]
+
+    assert "BTC/USDT" not in response["markets"]
+
+
+def test_api_markets_webserver(botclient):
+    # Ensure webserver exchanges are reset
+    ApiBG.exchanges = {}
+    ftbot, client = botclient
+    # Test in webserver mode
+    ftbot.config["runmode"] = RunMode.WEBSERVER
+
+    rc = client_get(client, f"{BASE_URI}/markets?exchange=binance")
+    assert_response(rc, 200)
+    response = rc.json()
+    assert "markets" in response
+    assert len(response["markets"]) >= 0
+    assert response["exchange_id"] == "binance"
+
+    rc = client_get(client, f"{BASE_URI}/markets?exchange=hyperliquid")
+    assert_response(rc, 200)
+
+    assert "hyperliquid_spot" in ApiBG.exchanges
+    assert "binance_spot" in ApiBG.exchanges