diff --git a/net/frr/src/opnsense/mvc/app/controllers/OPNsense/Quagga/forms/dialogEditBGPNeighbor.xml b/net/frr/src/opnsense/mvc/app/controllers/OPNsense/Quagga/forms/dialogEditBGPNeighbor.xml
index 245b6505c5..ffdf92f345 100644
--- a/net/frr/src/opnsense/mvc/app/controllers/OPNsense/Quagga/forms/dialogEditBGPNeighbor.xml
+++ b/net/frr/src/opnsense/mvc/app/controllers/OPNsense/Quagga/forms/dialogEditBGPNeighbor.xml
@@ -70,7 +70,7 @@
     <label>Local Initiater IP</label>
     <type>text</type>
     <advanced>true</advanced>
-    <help>Specify the local IP address used to establish connections with the neighbor. Only relevant for MD5 authentication.</help>
+    <help>Specify the local IP address (IPv4 or IPv6) used as the source to initiate BGP/BFD sessions, including MD5 authentication. Mutually exclusive with Update-Source Interface.</help>
     <grid_view>
       <visible>false</visible>
     </grid_view>
@@ -79,7 +79,7 @@
     <id>neighbor.updatesource</id>
     <label>Update-Source Interface</label>
     <type>dropdown</type>
-    <help>Interface (IPv4) where BGP sessions are sourced from, typically required when using loopback addresses.</help>
+    <help>Interface (IPv4) where BGP sessions are sourced from, typically required when using loopback addresses. Mutually exclusive with Local Initiator IP.</help>
     <grid_view>
       <visible>false</visible>
     </grid_view>
diff --git a/net/frr/src/opnsense/mvc/app/models/OPNsense/Quagga/BGP.php b/net/frr/src/opnsense/mvc/app/models/OPNsense/Quagga/BGP.php
index 6af510a0c2..58f75e3bd4 100644
--- a/net/frr/src/opnsense/mvc/app/models/OPNsense/Quagga/BGP.php
+++ b/net/frr/src/opnsense/mvc/app/models/OPNsense/Quagga/BGP.php
@@ -2,6 +2,7 @@
 
 namespace OPNsense\Quagga;
 
+use OPNsense\Base\Messages\Message;
 use OPNsense\Base\BaseModel;
 
 /*
@@ -28,4 +29,23 @@
 */
 class BGP extends BaseModel
 {
+    /**
+     * {@inheritdoc}
+     */
+    public function performValidation($validateFullModel = false)
+    {
+        $messages = parent::performValidation($validateFullModel);
+        foreach ($this->neighbors->neighbor->iterateItems() as $neighbor) {
+            if (!$validateFullModel && !$neighbor->isFieldChanged()) {
+                continue;
+            }
+            if (!$neighbor->updatesource->isEmpty() && !$neighbor->localip->isEmpty()) {
+                $messages->appendMessage(new Message(
+                    gettext("Update-Source Interface and Local Initiator IP are mutually exclusive."),
+                    $neighbor->updatesource->__reference
+                ));
+            }
+        }
+        return $messages;
+    }
 }
diff --git a/net/frr/src/opnsense/mvc/app/views/OPNsense/Quagga/bgp.volt b/net/frr/src/opnsense/mvc/app/views/OPNsense/Quagga/bgp.volt
index 9cac76ec23..fb591d4cbb 100644
--- a/net/frr/src/opnsense/mvc/app/views/OPNsense/Quagga/bgp.volt
+++ b/net/frr/src/opnsense/mvc/app/views/OPNsense/Quagga/bgp.volt
@@ -38,6 +38,16 @@ POSSIBILITY OF SUCH DAMAGE.
             }
         });
 
+        function checkNeighborSourceConflict() {
+            const $block = $('#help_block_neighbor\\.updatesource');
+            if ($('#neighbor\\.updatesource').val() && $('#neighbor\\.localip').val()) {
+                $block.text('{{ lang._("Update-Source Interface and Local Initiator IP are mutually exclusive.") }}');
+            } else {
+                $block.text('');
+            }
+        }
+        $(document).on('change', '#neighbor\\.updatesource, #neighbor\\.localip', checkNeighborSourceConflict);
+
         mapDataToFormUI({'frm_bgp_settings':"/api/quagga/bgp/get"}).done(function(data){
             formatTokenizersUI();
             $('.selectpicker').selectpicker('refresh');
diff --git a/net/frr/src/opnsense/service/templates/OPNsense/Quagga/bgpd.conf b/net/frr/src/opnsense/service/templates/OPNsense/Quagga/bgpd.conf
index d1e5b4073f..58a42c58b4 100644
--- a/net/frr/src/opnsense/service/templates/OPNsense/Quagga/bgpd.conf
+++ b/net/frr/src/opnsense/service/templates/OPNsense/Quagga/bgpd.conf
@@ -138,7 +138,9 @@ router bgp {{ OPNsense.quagga.bgp.asnumber }}
 {%         if 'disable_connected_check' in neighbor and neighbor.disable_connected_check == '1' %}
  neighbor {{ neighbor.address }} disable-connected-check
 {%         endif %}
-{%         if ':' not in neighbor.address and 'updatesource' in neighbor and neighbor.updatesource != '' %}
+{%         if 'localip' in neighbor and neighbor.localip != '' %}
+ neighbor {{ neighbor.address }} update-source {{ neighbor.localip }}
+{%         elif ':' not in neighbor.address and 'updatesource' in neighbor and neighbor.updatesource != '' %}
  neighbor {{ neighbor.address }} update-source {{ physical_interface(neighbor.updatesource) }}
 {%         endif %}
 {%         if ':' in neighbor.address and 'linklocalinterface' in neighbor and neighbor.linklocalinterface != '' %}