diff --git a/README.md b/README.md
index e4ac3a5..3f48e8a 100644
--- a/README.md
+++ b/README.md
@@ -8,7 +8,7 @@ A CAP Java plugin that integrates SAP Alert Notification service (ANS) with the
 
 The `cds-feature-notifications` plugin enables out-of-the-box notification handling for CAP Java applications. Annotate CDS events with `@notification`, emit them from a handler or annotate entities with `@notifications` for automatic delivery triggered by CRUD events, actions, or functions. The plugin takes care of the rest and delivers notifications via [SAP Alert Notification service (ANS)](https://help.sap.com/docs/alert-notification).
 
-In **local mode**, notifications are logged to the console with no ANS binding required. In **production mode**, notifications are delivered through Web (SAP Build Work Zone) and Email channels. You can either create a standalone ANS service instance or use Work Zone's built-in notification credentials. Both approaches are covered in the [Production Mode](#production-mode) section.
+In **local mode**, notifications are logged to the console with no ANS binding required. In **production mode**, notifications are delivered through Web (SAP Build Work Zone) and Email channels. Production mode is activated automatically when an `alert-notification` service binding is detected, or can be enabled explicitly via configuration. You can either create a standalone ANS service instance or use Work Zone's built-in notification credentials. Both approaches are covered in the [Production Mode](#production-mode) section.
 
 ## Table of Contents
 
@@ -387,7 +387,7 @@ Both approaches require the same setup: enable production mode, then provide an
 
 ### Enable Production Mode
 
-In `srv/src/main/resources/application.yaml`, enable production mode:
+Production mode is activated automatically when an `alert-notification` service binding is detected at startup. You can also enable it explicitly in `srv/src/main/resources/application.yaml`, for example for hybrid testing against a remote ANS instance without a local binding:
 
 ```yaml
 cds:
@@ -396,7 +396,7 @@ cds:
       enabled: true
 ```
 
-> **Note:** If this property is omitted, the plugin defaults to local mode (console output only, no ANS required).
+If neither a binding is present nor the property is set, the plugin defaults to local mode (console output only, no ANS required).
 
 In production mode:
 - **`ProductionHandler`** sends notifications to ANS (instead of console logging)
diff --git a/cds-feature-notifications/src/main/java/com/sap/cds/notifications/NotificationServiceConfiguration.java b/cds-feature-notifications/src/main/java/com/sap/cds/notifications/NotificationServiceConfiguration.java
index a5ab934..da75db9 100644
--- a/cds-feature-notifications/src/main/java/com/sap/cds/notifications/NotificationServiceConfiguration.java
+++ b/cds-feature-notifications/src/main/java/com/sap/cds/notifications/NotificationServiceConfiguration.java
@@ -96,8 +96,24 @@ public void eventHandlers(CdsRuntimeConfigurer configurer) {
           OutboxService.PERSISTENT_ORDERED_NAME);
     }
 
-    if (Boolean.TRUE.equals(environment.getProduction().isEnabled())) {
-      logger.info("Production mode enabled - using ProductionHandler");
+    boolean ansBindingPresent =
+        configurer
+            .getCdsRuntime()
+            .getEnvironment()
+            .getServiceBindings()
+            .anyMatch(
+                b -> b.getServiceName().map(n -> n.equals("alert-notification")).orElse(false));
+
+    boolean productionEnabled =
+        environment.getProduction() != null
+            && Boolean.TRUE.equals(environment.getProduction().isEnabled());
+
+    if (productionEnabled || ansBindingPresent) {
+      if (ansBindingPresent && !productionEnabled) {
+        logger.info("alert-notification binding detected - using ProductionHandler");
+      } else {
+        logger.info("Production mode enabled - using ProductionHandler");
+      }
       configurer.eventHandler(new ProductionHandler(outboxedSvc, configurer.getCdsRuntime()));
       // Register handler for auto-provisioning standalone templates on application prepared event
       configurer.eventHandler(
@@ -135,7 +151,7 @@ public void environment(CdsRuntimeConfigurer configurer) {
         runtime
             .getEnvironment()
             .getServiceBindings()
-            .filter(b -> b.getServiceName().get().equals("alert-notification"))
+            .filter(b -> b.getServiceName().map(n -> n.equals("alert-notification")).orElse(false))
             .findFirst()
             .orElse(null);