diff --git a/freqtrade/exchange/bybit.py b/freqtrade/exchange/bybit.py
index 0184c6c42..bd50b232b 100644
--- a/freqtrade/exchange/bybit.py
+++ b/freqtrade/exchange/bybit.py
@@ -35,6 +35,9 @@ class Bybit(Exchange):
             # TODO: Can be removed once bybit fully forces all accounts to unified mode.
             "fetchOrder": False,
         },
+        # Demo trading
+        # https://learn.bybit.com/en/bybit-guide/how-to-use-bybit-demo-trading
+        "supports_demo_trading": True,
     }
     _ft_has_futures: FtHas = {
         "ohlcv_has_history": True,
diff --git a/freqtrade/exchange/exchange_types.py b/freqtrade/exchange/exchange_types.py
index 842bc7c14..8cc9ca5b7 100644
--- a/freqtrade/exchange/exchange_types.py
+++ b/freqtrade/exchange/exchange_types.py
@@ -67,6 +67,8 @@ class FtHas(TypedDict, total=False):
 
     # Delisting check
     has_delisting: bool
+    # Demo mode - this is not sandbox but an exchange-provided demo mode.
+    supports_demo_trading: bool
 
 
 class Ticker(TypedDict):