diff --git a/aea/cli/init.py b/aea/cli/init.py
index 62ba45f426..dc2034a7ad 100644
--- a/aea/cli/init.py
+++ b/aea/cli/init.py
@@ -1,7 +1,7 @@
 # -*- coding: utf-8 -*-
 # ------------------------------------------------------------------------------
 #
-#   Copyright 2021-2022 Valory AG
+#   Copyright 2021-2024 Valory AG
 #   Copyright 2018-2019 Fetch.AI Limited
 #
 #   Licensed under the Apache License, Version 2.0 (the "License");
@@ -20,6 +20,7 @@
 
 """Implementation of the 'aea init' subcommand."""
 
+import platform
 from pathlib import Path
 from typing import Dict, Optional
 
@@ -138,11 +139,25 @@ def _registry_init_remote(
         _registry_init_http(username=author, no_subscribe=no_subscribe)
 
 
+def _clean_ipfs_node_url(ipfs_node: Optional[str]) -> str:
+    """Clean IPFS node URL."""
+    if ipfs_node is None:
+        return DEFAULT_IPFS_URL
+    if platform.system() != "Windows":
+        return ipfs_node
+    if not ipfs_node.startswith("C:/"):
+        return ipfs_node
+    *_, ipfs_node = ipfs_node.split("/dns/")
+    return f"/dns/{ipfs_node}"
+
+
 def _registry_init_ipfs(ipfs_node: Optional[str]) -> None:
     """Initialize ipfs registry"""
 
     registry_config = _set_registries(REGISTRY_REMOTE, REMOTE_IPFS)
-    registry_config["settings"][REGISTRY_REMOTE][REMOTE_IPFS]["ipfs_node"] = ipfs_node
+    registry_config["settings"][REGISTRY_REMOTE][REMOTE_IPFS][
+        "ipfs_node"
+    ] = _clean_ipfs_node_url(ipfs_node=ipfs_node)
     update_cli_config({REGISTRY_CONFIG_KEY: registry_config})
 
 
diff --git a/tests/test_cli/test_init.py b/tests/test_cli/test_init.py
index 304371b3f6..0ede847256 100644
--- a/tests/test_cli/test_init.py
+++ b/tests/test_cli/test_init.py
@@ -1,7 +1,7 @@
 # -*- coding: utf-8 -*-
 # ------------------------------------------------------------------------------
 #
-#   Copyright 2021-2022 Valory AG
+#   Copyright 2021-2024 Valory AG
 #   Copyright 2018-2019 Fetch.AI Limited
 #
 #   Licensed under the Apache License, Version 2.0 (the "License");
@@ -28,6 +28,7 @@
 import yaml
 
 from aea.cli import cli
+from aea.cli.init import _clean_ipfs_node_url
 
 from tests.conftest import CLI_LOG_OPTION, CliRunner, random_string
 
@@ -135,3 +136,12 @@ def teardown(self):
         self.cli_config_patch.stop()
         os.chdir(self.cwd)
         shutil.rmtree(self.t)
+
+
+def test_node_addr_cleanup() -> None:
+    """Test node address clean up method."""
+
+    original_addr = "/dns/to/some/node"
+    consoled_parsed_addr = f"C:/Git/bin/{original_addr}"
+    with patch("platform.system", return_value="Windows"):
+        assert _clean_ipfs_node_url(ipfs_node=consoled_parsed_addr) == original_addr