diff --git a/.changelog/2748.txt b/.changelog/2748.txt
new file mode 100644
index 0000000000..2a8c922d13
--- /dev/null
+++ b/.changelog/2748.txt
@@ -0,0 +1,3 @@
+```release-note:bug
+control-plane: Set locality on sidecar proxies in addition to services when registering with connect-inject.
+```
diff --git a/control-plane/connect-inject/controllers/endpoints/endpoints_controller.go b/control-plane/connect-inject/controllers/endpoints/endpoints_controller.go
index cdf56b187f..3f139c2662 100644
--- a/control-plane/connect-inject/controllers/endpoints/endpoints_controller.go
+++ b/control-plane/connect-inject/controllers/endpoints/endpoints_controller.go
@@ -535,6 +535,8 @@ func (r *Controller) createServiceRegistrations(pod corev1.Pod, serviceEndpoints
 		Namespace: consulNS,
 		Proxy:     proxyConfig,
 		Tags:      tags,
+		// Sidecar locality (not proxied service locality) is used for locality-aware routing.
+		Locality: locality,
 	}
 
 	// A user can enable/disable tproxy for an entire namespace.
diff --git a/control-plane/connect-inject/controllers/endpoints/endpoints_controller_test.go b/control-plane/connect-inject/controllers/endpoints/endpoints_controller_test.go
index 477be49e9f..2cec69dd0a 100644
--- a/control-plane/connect-inject/controllers/endpoints/endpoints_controller_test.go
+++ b/control-plane/connect-inject/controllers/endpoints/endpoints_controller_test.go
@@ -2021,6 +2021,10 @@ func TestReconcileCreateEndpoint(t *testing.T) {
 							"envoy_telemetry_collector_bind_socket_dir": "/consul/connect-inject",
 						},
 					},
+					ServiceLocality: &api.Locality{
+						Region: "us-west-1",
+						Zone:   "us-west-1a",
+					},
 					ServiceMeta: map[string]string{
 						"name":                   "abc",
 						"version":                "2",
@@ -2225,6 +2229,7 @@ func TestReconcileCreateEndpoint(t *testing.T) {
 				require.Equal(t, tt.expectedProxySvcInstances[i].ServicePort, instance.ServicePort)
 				require.Equal(t, tt.expectedProxySvcInstances[i].ServiceMeta, instance.ServiceMeta)
 				require.Equal(t, tt.expectedProxySvcInstances[i].ServiceTags, instance.ServiceTags)
+				require.Equal(t, tt.expectedProxySvcInstances[i].ServiceLocality, instance.ServiceLocality)
 				if tt.nodeMeta != nil {
 					require.Equal(t, tt.expectedProxySvcInstances[i].NodeMeta, instance.NodeMeta)
 				}