diff --git a/__tests__/config.test.ts b/__tests__/config.test.ts
new file mode 100644
index 0000000..5afed94
--- /dev/null
+++ b/__tests__/config.test.ts
@@ -0,0 +1,27 @@
+import * as config from '../src/internal/shared/config'
+
+beforeEach(() => {
+  jest.resetModules()
+})
+
+describe('isGhes', () => {
+  it('should return false when the request domain is github.com', () => {
+    process.env.GITHUB_SERVER_URL = 'https://github.com'
+    expect(config.isGhes()).toBe(false)
+  })
+
+  it('should return false when the request domain ends with ghe.com', () => {
+    process.env.GITHUB_SERVER_URL = 'https://my.domain.ghe.com'
+    expect(config.isGhes()).toBe(false)
+  })
+
+  it('should return false when the request domain ends with ghe.localhost', () => {
+    process.env.GITHUB_SERVER_URL = 'https://my.domain.ghe.localhost'
+    expect(config.isGhes()).toBe(false)
+  })
+
+  it('should return false when the request domain is specific to an enterprise', () => {
+    process.env.GITHUB_SERVER_URL = 'https://my-enterprise.github.com'
+    expect(config.isGhes()).toBe(true)
+  })
+})
diff --git a/src/internal/shared/config.ts b/src/internal/shared/config.ts
index a5631bf..089fae1 100644
--- a/src/internal/shared/config.ts
+++ b/src/internal/shared/config.ts
@@ -27,7 +27,13 @@ export function isGhes(): boolean {
   const ghUrl = new URL(
     process.env['GITHUB_SERVER_URL'] || 'https://github.com'
   )
-  return ghUrl.hostname.toUpperCase() !== 'GITHUB.COM'
+
+  const hostname = ghUrl.hostname.trimEnd().toUpperCase()
+  const isGitHubHost = hostname === 'GITHUB.COM'
+  const isGheHost =
+    hostname.endsWith('.GHE.COM') || hostname.endsWith('.GHE.LOCALHOST')
+
+  return !isGitHubHost && !isGheHost
 }
 
 export function getGitHubWorkspaceDir(): string {