diff --git a/bundlegen/generateapi.go b/bundlegen/generateapi.go
index 7f987ad06..ce390dba1 100644
--- a/bundlegen/generateapi.go
+++ b/bundlegen/generateapi.go
@@ -296,10 +296,11 @@ func GetEndpoint(doc *openapi3.T) (u *url.URL, err error) {
 func GenerateAPIProxyDefFromGQL(name string,
 	gqlDocName string,
 	basePath string,
-	targetUrlRef string,
 	apiKeyLocation string,
 	skipPolicy bool,
-	addCORS bool) (err error) {
+	addCORS bool,
+	targetUrlRef string,
+    targetUrl string) (err error) {
 
 	apiproxy.SetDisplayName(name)
 	apiproxy.SetCreatedAt()
@@ -315,8 +316,6 @@ func GenerateAPIProxyDefFromGQL(name string,
 		apiproxy.AddPolicy("Validate-" + name + "-Schema")
 	}
 
-	targets.NewTargetEndpoint("https://api.example.com", "", "", "")
-
 	proxies.NewProxyEndpoint(basePath)
 
 	if addCORS {
@@ -324,8 +323,22 @@ func GenerateAPIProxyDefFromGQL(name string,
 		apiproxy.AddPolicy("Add-CORS")
 	}
 
-	targets.AddStepToPreFlowRequest("Set-Target-1")
-	apiproxy.AddPolicy("Set-Target-1")
+	//set a dynamic target url
+	if targetUrlRef != "" {
+		targets.AddStepToPreFlowRequest("Set-Target-1")
+		apiproxy.AddPolicy("Set-Target-1")
+		generateSetTarget = true
+	}
+
+	//if target is not set, derive it from the OAS file
+	if targetUrl == "" {
+		targets.NewTargetEndpoint("https://api.example.com", "", "", "")
+	} else { //an explicit target url is set
+		if _, err = url.Parse(targetUrl); err != nil {
+			return fmt.Errorf("Invalid target url: ", err)
+		}
+		targets.NewTargetEndpoint(targetUrl, "", "", "")
+	}
 
 	if !skipPolicy {
 		proxies.AddStepToPreFlowRequest("Validate-" + name + "-Schema")
diff --git a/bundlegen/proxybundle/proxybundle.go b/bundlegen/proxybundle/proxybundle.go
index 3a1f4f439..9e57a3e14 100644
--- a/bundlegen/proxybundle/proxybundle.go
+++ b/bundlegen/proxybundle/proxybundle.go
@@ -183,7 +183,8 @@ func GenerateAPIProxyBundleFromGQL(name string,
 	keyName string,
 	skipPolicy bool,
 	addCORS bool,
-	targetUrlRef string) (err error) {
+	targetUrlRef string,
+	targetUrl string) (err error) {
 
 	var apiProxyData, proxyEndpointData, targetEndpointData string
 	const resourceType = "graphql"
@@ -245,9 +246,11 @@ func GenerateAPIProxyBundleFromGQL(name string,
 		return err
 	}
 
-	if err = writeXMLData(policiesDirPath+string(os.PathSeparator)+"Set-Target-1.xml",
-		policies.AddSetTargetEndpoint(targetUrlRef)); err != nil {
-		return err
+	if targetUrlRef != "" {
+		if err = writeXMLData(policiesDirPath+string(os.PathSeparator)+"Set-Target-1.xml",
+			policies.AddSetTargetEndpoint(targetUrlRef)); err != nil {
+			return err
+		}
 	}
 
 	if !skipPolicy {
diff --git a/cmd/apis/gqlcrtapis.go b/cmd/apis/gqlcrtapis.go
index a11b49ba3..ab9accf28 100644
--- a/cmd/apis/gqlcrtapis.go
+++ b/cmd/apis/gqlcrtapis.go
@@ -39,6 +39,9 @@ var GqlCreateCmd = &cobra.Command{
 		if gqlFile == "" && gqlURI == "" {
 			return fmt.Errorf("Either gqlfile or gqlurl must be passed")
 		}
+		if targetUrl != "" && targetUrlRef != "" {
+			return fmt.Errorf("Either target-url or target-url-ref must be passed, not both")
+		}
 		return apiclient.SetApigeeOrg(org)
 	},
 	RunE: func(cmd *cobra.Command, args []string) (err error) {
@@ -62,10 +65,11 @@ var GqlCreateCmd = &cobra.Command{
 		err = bundle.GenerateAPIProxyDefFromGQL(name,
 			gqlDocName,
 			basePath,
-			targetUrlRef,
 			apiKeyLocation,
 			skipPolicy,
-			addCORS)
+			addCORS,
+			targetUrlRef,
+			targetUrl)
 
 		if err != nil {
 			return err
@@ -80,7 +84,8 @@ var GqlCreateCmd = &cobra.Command{
 			keyName,
 			skipPolicy,
 			addCORS,
-			targetUrlRef)
+			targetUrlRef,
+			targetUrl)
 
 		if err != nil {
 			return err
@@ -108,8 +113,10 @@ func init() {
 	GqlCreateCmd.Flags().StringVarP(&action, "action", "",
 		"verify", "GraphQL policy action, must be oneOf parse, verify or parse_verify. Default is verify")
 	GqlCreateCmd.Flags().StringVarP(&targetUrlRef, "target-url-ref", "",
-		"", "Set a reference variable containing the target endpoint")
-	GqlCreateCmd.Flags().StringVarP(&targetUrlRef, "apikey-location", "",
+		"", "Set target.url variable from a reference variable containing the target endpoint")
+	GqlCreateCmd.Flags().StringVarP(&targetUrl, "target-url", "",
+		"", "Set a target URL for the target endpoint")
+	GqlCreateCmd.Flags().StringVarP(&apiKeyLocation, "apikey-location", "",
 		"", "Set the location of the API key, ex: request.header.x-api-key")
 	GqlCreateCmd.Flags().BoolVarP(&importProxy, "import", "",
 		true, "Import API Proxy after generation from spec")
@@ -119,7 +126,6 @@ func init() {
 		false, "Add a CORS policy")
 
 	_ = GqlCreateCmd.MarkFlagRequired("name")
-	_ = GqlCreateCmd.MarkFlagRequired("target-url-ref")
 	_ = GqlCreateCmd.MarkFlagRequired("basepath")
 }