diff --git a/src/backend/InvenTree/InvenTree/ready.py b/src/backend/InvenTree/InvenTree/ready.py
index 3f1c8d9c6e..82779167d4 100644
--- a/src/backend/InvenTree/InvenTree/ready.py
+++ b/src/backend/InvenTree/InvenTree/ready.py
@@ -139,7 +139,9 @@ def _introspectCommands(argv: list[str]):
     }
 
     # The entrypoint itself can indicate the context
-    _context['pytest_entrypoint'] = entrypoint.endswith('pytest')
+    _context['pytest_entrypoint'] = (
+        entrypoint.endswith('pytest') or 'pytest' in entrypoint.lower()
+    )
     _context['gunicorn_entrypoint'] = 'gunicorn' in entrypoint
 
     # The development server is running without the auto-reloader
@@ -329,7 +331,7 @@ def canAppAccessDatabase(
         return False
 
     # Override for testing mode?
-    return allow_test or not cmd_context['test_command']
+    return allow_test or not isInTestMode()
 
 
 def isPluginRegistryLoaded():
diff --git a/src/backend/InvenTree/InvenTree/settings.py b/src/backend/InvenTree/InvenTree/settings.py
index 24a2264d79..fef5fb819e 100644
--- a/src/backend/InvenTree/InvenTree/settings.py
+++ b/src/backend/InvenTree/InvenTree/settings.py
@@ -502,6 +502,7 @@ TEMPLATES = [
                         'plugin.template.PluginTemplateLoader',
                         'django.template.loaders.filesystem.Loader',
                         'django.template.loaders.app_directories.Loader',
+                        'InvenTree.template.InvenTreeStorageTemplateLoader',
                     ],
                 )
             ],
diff --git a/src/backend/InvenTree/InvenTree/template.py b/src/backend/InvenTree/InvenTree/template.py
index 8b2aafa00c..a91d512aea 100644
--- a/src/backend/InvenTree/InvenTree/template.py
+++ b/src/backend/InvenTree/InvenTree/template.py
@@ -3,10 +3,66 @@
 import os
 
 from django.conf import settings
+from django.core.files.storage import default_storage
+from django.template import Origin, TemplateDoesNotExist
 from django.template.loaders.base import Loader as BaseLoader
 from django.template.loaders.cached import Loader as CachedLoader
 
 
+class InvenTreeStorageTemplateLoader(BaseLoader):
+    """Custom template loader that loads templates from Django's default storage backend (e.g. S3, SFTP)."""
+
+    def get_storage_candidates(self, template_name: str) -> list[str]:
+        """Generate candidate storage paths for a given template name."""
+        clean = str(template_name).replace('\\', '/')
+
+        # If path starts with MEDIA_ROOT, strip it
+        media_root_str = str(settings.MEDIA_ROOT).replace('\\', '/').rstrip('/')
+        if clean.startswith(media_root_str):
+            clean = clean[len(media_root_str) :].lstrip('/')
+
+        clean = clean.lstrip('/')
+        candidates = [clean]
+
+        # Handle storage location prefix (e.g. S3 / SFTP location)
+        location = getattr(default_storage, 'location', '') or ''
+        location = str(location).replace('\\', '/').strip('/')
+        if location:
+            if clean.startswith(f'{location}/'):
+                candidates.append(clean[len(location) + 1 :])
+            else:
+                candidates.append(f'{location}/{clean}')
+
+        # Handle report subdirectory prefix
+        if not clean.startswith('report/'):
+            candidates.append(f'report/{clean}')
+
+        return candidates
+
+    def get_template_sources(self, template_name):
+        """Yield Origin objects for templates found in default storage."""
+        for candidate in self.get_storage_candidates(template_name):
+            try:
+                if default_storage.exists(candidate):
+                    yield Origin(
+                        name=candidate, template_name=template_name, loader=self
+                    )
+                    return
+            except Exception:
+                continue
+
+    def get_contents(self, origin):
+        """Return template contents from default storage."""
+        try:
+            with default_storage.open(origin.name, 'r') as fp:
+                content = fp.read()
+                if isinstance(content, bytes):
+                    content = content.decode('utf-8')
+                return content
+        except Exception as exc:
+            raise TemplateDoesNotExist(origin) from exc
+
+
 class InvenTreeTemplateLoader(CachedLoader):
     """Custom template loader which bypasses cache for PDF export."""
 
@@ -20,6 +76,8 @@ class InvenTreeTemplateLoader(CachedLoader):
         skip_cache_dirs = [
             os.path.abspath(os.path.join(settings.MEDIA_ROOT, 'report')),
             os.path.abspath(os.path.join(settings.MEDIA_ROOT, 'label')),
+            'report/',
+            'label/',
             'snippets/',
         ]
 
diff --git a/src/backend/InvenTree/report/models.py b/src/backend/InvenTree/report/models.py
index 6c80a7ca48..b8ec7dadf2 100644
--- a/src/backend/InvenTree/report/models.py
+++ b/src/backend/InvenTree/report/models.py
@@ -102,13 +102,19 @@ class TemplateUploadMixin:
     @property
     def template_name(self):
         """Return the filename of the template associated with this model class."""
-        template = getattr(self, self.TEMPLATE_FIELD).name
+        template_file = getattr(self, self.TEMPLATE_FIELD, None)
+        if not template_file or not template_file.name:
+            return ''
+
+        template = template_file.name
         template = template.replace('/', os.path.sep)
         template = template.replace('\\', os.path.sep)
 
-        template = settings.MEDIA_ROOT.joinpath(template)
+        local_path = settings.MEDIA_ROOT.joinpath(template)
+        if local_path.exists():
+            return str(local_path)
 
-        return str(template)
+        return template_file.name
 
     @property
     def extension(self):
@@ -251,6 +257,70 @@ class ReportTemplateBase(
         template_string = Template(self.filename_pattern)
         return template_string.render(Context(context))
 
+    def get_template_content(self) -> str:
+        """Load template file content directly from storage backend.
+
+        Supports cloud/remote storage (e.g. S3, SFTP) and resolves potential
+        storage prefix mismatches.
+        """
+        template_file = getattr(self, self.TEMPLATE_FIELD, None)
+        if not template_file or not template_file.name:
+            raise TemplateDoesNotExist(getattr(self, 'name', 'template'))
+
+        storage = getattr(template_file, 'storage', default_storage)
+        name = template_file.name
+
+        # Candidates to resolve storage path prefix mismatches
+        candidates = [name]
+        norm_name = name.replace('\\', '/').lstrip('/')
+        if norm_name not in candidates:
+            candidates.append(norm_name)
+
+        location = getattr(storage, 'location', '') or ''
+        location = str(location).replace('\\', '/').strip('/')
+        if location:
+            if norm_name.startswith(f'{location}/'):
+                stripped = norm_name[len(location) + 1 :]
+                if stripped not in candidates:
+                    candidates.append(stripped)
+            else:
+                prefixed = f'{location}/{norm_name}'
+                if prefixed not in candidates:
+                    candidates.append(prefixed)
+
+        if hasattr(self, 'SUBDIR') and self.SUBDIR:
+            subdir_prefix = f'report/{self.SUBDIR}/'
+            if norm_name.startswith(subdir_prefix):
+                short_name = norm_name[len('report/') :]
+                if short_name not in candidates:
+                    candidates.append(short_name)
+
+        file_obj = None
+        for candidate in candidates:
+            try:
+                if storage.exists(candidate):
+                    file_obj = storage.open(candidate, 'r')
+                    break
+            except Exception:
+                pass
+
+        if file_obj is None:
+            try:
+                file_obj = template_file.open('r')
+            except Exception as exc:
+                raise TemplateDoesNotExist(
+                    f"Template '{name}' not found in storage"
+                ) from exc
+
+        try:
+            content = file_obj.read()
+            if isinstance(content, bytes):
+                content = content.decode('utf-8')
+            return content
+        finally:
+            if hasattr(file_obj, 'close'):
+                file_obj.close()
+
     def render_as_string(
         self, instance: models.Model, context: Optional[dict] = None, **kwargs
     ) -> str:
@@ -266,7 +336,15 @@ class ReportTemplateBase(
         if context is None:
             context = self.get_context(instance, **kwargs)
 
-        return render_to_string(self.template_name, context)
+        try:
+            return render_to_string(self.template_name, context)
+        except TemplateDoesNotExist:
+            content = self.get_template_content()
+            from django.template import engines
+
+            engine = engines['django']
+            template = engine.from_string(content)
+            return template.render(context)
 
     def render(
         self, instance: models.Model, context: Optional[dict] = None, **kwargs
diff --git a/src/backend/InvenTree/report/tests.py b/src/backend/InvenTree/report/tests.py
index 3921c6d50b..9a7f9c7619 100644
--- a/src/backend/InvenTree/report/tests.py
+++ b/src/backend/InvenTree/report/tests.py
@@ -13,7 +13,8 @@ from django.contrib.contenttypes.models import ContentType
 from django.core.cache import cache
 from django.core.exceptions import ValidationError
 from django.core.files.base import ContentFile
-from django.core.files.storage import default_storage
+from django.core.files.storage import Storage, default_storage
+from django.template import Context, TemplateDoesNotExist, engines
 from django.template.loader import render_to_string
 from django.test import TestCase
 from django.urls import reverse
@@ -27,6 +28,7 @@ from build.models import Build
 from common.models import Attachment, Note
 from common.settings import set_global_setting
 from InvenTree.config import get_base_dir
+from InvenTree.template import InvenTreeStorageTemplateLoader
 from InvenTree.unit_test import AdminTestCase, InvenTreeAPITestCase
 from order.models import PurchaseOrder, ReturnOrder, SalesOrder
 from part.models import Part
@@ -1543,3 +1545,151 @@ class DefaultTemplateFileTest(TestCase):
                 # Size and content must match the raw bytes exactly
                 self.assertEqual(content_file.size, len(raw))
                 self.assertEqual(content_file.read(), raw)
+
+
+class MockS3Storage(Storage):
+    """Mock storage simulating S3 backend with prefix/location."""
+
+    def __init__(self, location='inventree-server'):
+        """Initialize mock storage with a location."""
+        self.location = location
+        self.files = {}
+
+    def _save(self, name, content):
+        data = content.read() if hasattr(content, 'read') else content
+        if isinstance(data, str):
+            data = data.encode('utf-8')
+        self.files[name] = data
+        return name
+
+    def _open(self, name, mode='rb'):
+        if name not in self.files:
+            raise FileNotFoundError(f'{name} not found in MockS3Storage')
+        return ContentFile(self.files[name], name=name)
+
+    def exists(self, name):
+        """Check if file exists in mock storage."""
+        return name in self.files
+
+    def path(self, name):
+        """Raise NotImplementedError to simulate S3 remote storage."""
+        raise NotImplementedError("This backend doesn't support absolute paths.")
+
+
+class S3ReportTemplateTest(TestCase):
+    """Unit tests for S3 cloud storage report template loading (Issue #12426)."""
+
+    def setUp(self):
+        """Setup test fixtures."""
+        super().setUp()
+        self.storage = MockS3Storage(location='inventree-server')
+
+    def test_template_name_remote_storage(self):
+        """Test template_name property when file only exists in remote cloud storage."""
+        template = ReportTemplate(
+            name='Remote S3 Report',
+            description='Test S3 report loading',
+            model_type='part',
+        )
+        template.template.name = 'report/report_template/remote_template.html'
+        template.template.storage = self.storage
+
+        # Since the file does not exist locally under settings.MEDIA_ROOT,
+        # template_name should return the relative storage path, not a non-existent MEDIA_ROOT path.
+        self.assertEqual(
+            template.template_name, 'report/report_template/remote_template.html'
+        )
+
+    def test_get_template_content_with_prefix(self):
+        """Test get_template_content resolves templates with bucket/location prefix."""
+        template = ReportTemplate(
+            name='Prefixed S3 Report',
+            description='Test prefix resolution',
+            model_type='part',
+        )
+        template.template.name = 'report/report_template/test_prefix.html'
+        template.template.storage = self.storage
+
+        # S3 storage stores file with location prefix
+        content = b'<h1>Report: {{ part.name }}</h1>'
+        self.storage.files[
+            'inventree-server/report/report_template/test_prefix.html'
+        ] = content
+
+        result = template.get_template_content()
+        self.assertEqual(result, '<h1>Report: {{ part.name }}</h1>')
+
+    def test_get_template_content_without_prefix(self):
+        """Test get_template_content when template file is stored without location prefix."""
+        template = ReportTemplate(
+            name='Direct S3 Report',
+            description='Test direct resolution',
+            model_type='part',
+        )
+        template.template.name = 'report/report_template/direct.html'
+        template.template.storage = self.storage
+
+        content = b'<p>Direct template</p>'
+        self.storage.files['report/report_template/direct.html'] = content
+
+        result = template.get_template_content()
+        self.assertEqual(result, '<p>Direct template</p>')
+
+    def test_get_template_content_missing(self):
+        """Test get_template_content raises TemplateDoesNotExist when file not in storage."""
+        template = ReportTemplate(
+            name='Missing S3 Report',
+            description='Test missing template',
+            model_type='part',
+        )
+        template.template.name = 'report/report_template/missing.html'
+        template.template.storage = self.storage
+
+        with self.assertRaises(TemplateDoesNotExist):
+            template.get_template_content()
+
+    def test_render_as_string_fallback(self):
+        """Test render_as_string falls back to storage when TemplateDoesNotExist is caught."""
+        template = ReportTemplate(
+            name='Render S3 Report',
+            description='Test render fallback',
+            model_type='part',
+        )
+        template.template.name = 'report/report_template/render_test.html'
+        template.template.storage = self.storage
+
+        # Put template into S3 storage with location prefix
+        self.storage.files[
+            'inventree-server/report/report_template/render_test.html'
+        ] = b'<div>Hello {{ test_val }}</div>'
+
+        rendered = template.render_as_string(None, context={'test_val': 'World'})
+        self.assertEqual(rendered, '<div>Hello World</div>')
+
+    def test_storage_template_loader_resolution(self):
+        """Test InvenTreeStorageTemplateLoader loads templates from default_storage."""
+        with patch('InvenTree.template.default_storage', self.storage):
+            self.storage.files['inventree-server/report/snippets/header.html'] = (
+                b'<header>{{ title }}</header>'
+            )
+
+            loader = InvenTreeStorageTemplateLoader(engines['django'].engine)
+            tmpl = loader.get_template('report/snippets/header.html')
+            self.assertIsNotNone(tmpl)
+            rendered = tmpl.render(Context({'title': 'S3 Header Test'}))
+            self.assertEqual(rendered, '<header>S3 Header Test</header>')
+
+            with self.assertRaises(TemplateDoesNotExist):
+                loader.get_template('does/not/exist.html')
+
+    def test_render_to_string_with_storage_loader(self):
+        """Test Django render_to_string resolves via InvenTreeStorageTemplateLoader."""
+        with patch('InvenTree.template.default_storage', self.storage):
+            self.storage.files['inventree-server/report/custom_snippet.html'] = (
+                b'<span>User: {{ username }}</span>'
+            )
+
+            result = render_to_string(
+                'report/custom_snippet.html', {'username': 'testuser'}
+            )
+            self.assertEqual(result, '<span>User: testuser</span>')