We are using localstack in our local k8s cluster (running as a container). in the env vars - Both HOSTNAME and HOSTNAME_EXTERNAL are set to 'localstack'.

pods from within the same cluster as localstack are working ok with it, but when we try to run a test from our machine (SQS) it says it doesn't know localstack (which makes sense)

When we set HOSTNAME_EXTERNAL to localhost, than the outside test is working but the pods from within the cluster doesn't know localhost...

So what are we missing in the configuration?