diff --git a/src/modules/uxrce_dds_client/module.yaml b/src/modules/uxrce_dds_client/module.yaml
index 5fcc65d2ce..26d79d92a2 100644
--- a/src/modules/uxrce_dds_client/module.yaml
+++ b/src/modules/uxrce_dds_client/module.yaml
@@ -65,6 +65,26 @@ parameters:
             default: 2130706433
             requires_ethernet: true
 
+        UXRCE_DDS_PTCFG:
+            description:
+                short: uXRCE-DDS participant configuration
+                long: |
+                    Set the participant configuration on the Agent's system.
+                    0: Use the default configuration.
+                    1: Restrict messages to localhost
+                       (use in combination with ROS_LOCALHOST_ONLY=1).
+                    2: Use a custom participant with the profile name "px4_participant".
+            category: System
+            reboot_required: true
+            type: enum
+            values:
+                0: Default
+                1: Localhost-only
+                2: Custom participant
+            min: 0
+            max: 2
+            default: 0
+
         UXRCE_DDS_SYNCT:
             description:
                 short: Enable uXRCE-DDS timestamp synchronization
diff --git a/src/modules/uxrce_dds_client/uxrce_dds_client.cpp b/src/modules/uxrce_dds_client/uxrce_dds_client.cpp
index 9b00379a26..c2274bf915 100644
--- a/src/modules/uxrce_dds_client/uxrce_dds_client.cpp
+++ b/src/modules/uxrce_dds_client/uxrce_dds_client.cpp
@@ -235,58 +235,55 @@ void UxrceddsClient::run()
 
 		uint16_t domain_id = _param_xrce_dds_dom_id.get();
 
-		// const char *participant_name = "px4_micro_xrce_dds";
-		// uint16_t participant_req = uxr_buffer_create_participant_bin(&session, reliable_out, participant_id, domain_id,
-		// 			   participant_name, UXR_REPLACE);
-
-		char participant_xml[PARTICIPANT_XML_SIZE];
-		int ret = snprintf(participant_xml, PARTICIPANT_XML_SIZE, "%s<name>%s/px4_micro_xrce_dds</name>%s",
-				   _localhost_only ?
-				   "<dds>"
-				   "<profiles>"
-				   "<transport_descriptors>"
-				   "<transport_descriptor>"
-				   "<transport_id>udp_localhost</transport_id>"
-				   "<type>UDPv4</type>"
-				   "<interfaceWhiteList><address>127.0.0.1</address></interfaceWhiteList>"
-				   "</transport_descriptor>"
-				   "</transport_descriptors>"
-				   "</profiles>"
-				   "<participant>"
-				   "<rtps>"
-				   :
-				   "<dds>"
-				   "<participant>"
-				   "<rtps>",
-				   _client_namespace != nullptr ?
-				   _client_namespace
-				   :
-				   "",
-				   _localhost_only ?
-				   "<useBuiltinTransports>false</useBuiltinTransports>"
-				   "<userTransports><transport_id>udp_localhost</transport_id></userTransports>"
-				   "</rtps>"
-				   "</participant>"
-				   "</dds>"
-				   :
-				   "</rtps>"
-				   "</participant>"
-				   "</dds>"
-				  );
-
-		if (ret < 0 || ret >= PARTICIPANT_XML_SIZE) {
-			PX4_ERR("create entities failed: namespace too long");
-			return;
-		}
-
-
 		uint16_t participant_req{};
 
 		if (_custom_participant) {
+			// Create participant by reference (XML not required)
 			participant_req = uxr_buffer_create_participant_ref(&session, reliable_out, participant_id, domain_id,
 					  "px4_participant", UXR_REPLACE);
 
 		} else {
+			// Construct participant XML and create participant by XML
+			char participant_xml[PARTICIPANT_XML_SIZE];
+			int ret = snprintf(participant_xml, PARTICIPANT_XML_SIZE, "%s<name>%s/px4_micro_xrce_dds</name>%s",
+					   _localhost_only ?
+					   "<dds>"
+					   "<profiles>"
+					   "<transport_descriptors>"
+					   "<transport_descriptor>"
+					   "<transport_id>udp_localhost</transport_id>"
+					   "<type>UDPv4</type>"
+					   "<interfaceWhiteList><address>127.0.0.1</address></interfaceWhiteList>"
+					   "</transport_descriptor>"
+					   "</transport_descriptors>"
+					   "</profiles>"
+					   "<participant>"
+					   "<rtps>"
+					   :
+					   "<dds>"
+					   "<participant>"
+					   "<rtps>",
+					   _client_namespace != nullptr ?
+					   _client_namespace
+					   :
+					   "",
+					   _localhost_only ?
+					   "<useBuiltinTransports>false</useBuiltinTransports>"
+					   "<userTransports><transport_id>udp_localhost</transport_id></userTransports>"
+					   "</rtps>"
+					   "</participant>"
+					   "</dds>"
+					   :
+					   "</rtps>"
+					   "</participant>"
+					   "</dds>"
+					  );
+
+			if (ret < 0 || ret >= PARTICIPANT_XML_SIZE) {
+				PX4_ERR("create entities failed: namespace too long");
+				return;
+			}
+
 			participant_req = uxr_buffer_create_participant_xml(&session, reliable_out, participant_id, domain_id,
 					  participant_xml, UXR_REPLACE);
 		}
@@ -628,7 +625,7 @@ UxrceddsClient *UxrceddsClient::instantiate(int argc, char *argv[])
 
 	const char *client_namespace = nullptr;//"px4";
 
-	while ((ch = px4_getopt(argc, argv, "t:d:b:h:p:lcn:", &myoptind, &myoptarg)) != EOF) {
+	while ((ch = px4_getopt(argc, argv, "t:d:b:h:p:n:", &myoptind, &myoptarg)) != EOF) {
 		switch (ch) {
 		case 't':
 			if (!strcmp(myoptarg, "serial")) {
@@ -665,14 +662,6 @@ UxrceddsClient *UxrceddsClient::instantiate(int argc, char *argv[])
 		case 'p':
 			snprintf(port, PORT_MAX_LENGTH, "%s", myoptarg);
 			break;
-
-		case 'l':
-			localhost_only = true;
-			break;
-
-		case 'c':
-			custom_participant = true;
-			break;
 #endif // UXRCE_DDS_CLIENT_UDP
 
 		case 'n':
@@ -715,6 +704,19 @@ UxrceddsClient *UxrceddsClient::instantiate(int argc, char *argv[])
 			 static_cast<uint8_t>(ip_i & 0xff));
 	}
 
+	int32_t participant_config = 0;
+	param_get(param_find("UXRCE_DDS_PTCFG"), &participant_config);
+
+	switch (participant_config) {
+	case 1:
+		localhost_only = true;
+		break;
+
+	case 2:
+		custom_participant = true;
+		break;
+	}
+
 #endif // UXRCE_DDS_CLIENT_UDP
 
 	if (error_flag) {
@@ -764,8 +766,6 @@ $ uxrce_dds_client start -t udp -h 127.0.0.1 -p 15555
 	PRINT_MODULE_USAGE_PARAM_INT('b', 0, 0, 3000000, "Baudrate (can also be p:<param_name>)", true);
 	PRINT_MODULE_USAGE_PARAM_STRING('h', nullptr, "<IP>", "Agent IP. If not provided, defaults to UXRCE_DDS_AG_IP", true);
 	PRINT_MODULE_USAGE_PARAM_INT('p', -1, 0, 65535, "Agent listening port. If not provided, defaults to UXRCE_DDS_PRT", true);
-	PRINT_MODULE_USAGE_PARAM_FLAG('l', "Restrict to localhost (use in combination with ROS_LOCALHOST_ONLY=1)", true);
-	PRINT_MODULE_USAGE_PARAM_FLAG('c', "Use custom participant config (profile_name=\"px4_participant\")", true);
 	PRINT_MODULE_USAGE_PARAM_STRING('n', nullptr, nullptr, "Client DDS namespace", true);
 	PRINT_MODULE_USAGE_DEFAULT_COMMANDS();