diff --git a/app/components/@settings/tabs/debug/DebugTab.tsx b/app/components/@settings/tabs/debug/DebugTab.tsx
index 75be68c5..e31ae473 100644
--- a/app/components/@settings/tabs/debug/DebugTab.tsx
+++ b/app/components/@settings/tabs/debug/DebugTab.tsx
@@ -238,7 +238,7 @@ export default function DebugTab() {
     performance: false,
   });
 
-  const { isLocalModel, providers } = useSettings();
+  const { providers } = useSettings();
 
   // Subscribe to logStore updates
   const logs = useStore(logStore.logs);
@@ -1135,16 +1135,22 @@ export default function DebugTab() {
     }
   }, [providers]);
 
-  // Monitor isLocalModel changes and check status periodically
+  // Monitor Ollama provider status and check periodically
   useEffect(() => {
-    // Check immediately when isLocalModel changes
-    checkOllamaStatus();
+    const ollamaProvider = providers?.Ollama;
 
-    // Set up periodic checks every 10 seconds
-    const intervalId = setInterval(checkOllamaStatus, 10000);
+    if (ollamaProvider?.settings?.enabled) {
+      // Check immediately when provider is enabled
+      checkOllamaStatus();
 
-    return () => clearInterval(intervalId);
-  }, [isLocalModel, checkOllamaStatus]);
+      // Set up periodic checks every 10 seconds
+      const intervalId = setInterval(checkOllamaStatus, 10000);
+
+      return () => clearInterval(intervalId);
+    }
+
+    return undefined;
+  }, [providers, checkOllamaStatus]);
 
   // Replace the existing export button with this new component
   const ExportButton = () => {
@@ -1222,15 +1228,6 @@ export default function DebugTab() {
     const ollamaProvider = providers?.Ollama;
     const isOllamaEnabled = ollamaProvider?.settings?.enabled;
 
-    if (!isLocalModel) {
-      return {
-        status: 'Disabled',
-        color: 'text-red-500',
-        bgColor: 'bg-red-500',
-        message: 'Local models are disabled in settings',
-      };
-    }
-
     if (!isOllamaEnabled) {
       return {
         status: 'Disabled',
diff --git a/app/lib/hooks/useSettings.ts b/app/lib/hooks/useSettings.ts
index 12338248..c04384df 100644
--- a/app/lib/hooks/useSettings.ts
+++ b/app/lib/hooks/useSettings.ts
@@ -2,8 +2,6 @@ import { useStore } from '@nanostores/react';
 import {
   isDebugMode,
   isEventLogsEnabled,
-  isLocalModelsEnabled,
-  LOCAL_PROVIDERS,
   promptStore,
   providersStore,
   latestBranchStore,
@@ -17,7 +15,6 @@ import {
   updateAutoSelectTemplate,
   updateContextOptimization,
   updateEventLogs,
-  updateLocalModels,
   updatePromptId,
 } from '~/lib/stores/settings';
 import { useCallback, useEffect, useState } from 'react';
@@ -49,8 +46,6 @@ export interface UseSettingsReturn {
   providers: Record<string, IProviderConfig>;
   activeProviders: ProviderInfo[];
   updateProviderSettings: (provider: string, config: IProviderSetting) => void;
-  isLocalModel: boolean;
-  enableLocalModels: (enabled: boolean) => void;
 
   // Debug and development settings
   debug: boolean;
@@ -81,7 +76,6 @@ export function useSettings(): UseSettingsReturn {
   const debug = useStore(isDebugMode);
   const eventLogs = useStore(isEventLogsEnabled);
   const promptId = useStore(promptStore);
-  const isLocalModel = useStore(isLocalModelsEnabled);
   const isLatestBranch = useStore(latestBranchStore);
   const autoSelectTemplate = useStore(autoSelectStarterTemplate);
   const [activeProviders, setActiveProviders] = useState<ProviderInfo[]>([]);
@@ -100,16 +94,12 @@ export function useSettings(): UseSettingsReturn {
   });
 
   useEffect(() => {
-    let active = Object.entries(providers)
+    const active = Object.entries(providers)
       .filter(([_key, provider]) => provider.settings.enabled)
       .map(([_k, p]) => p);
 
-    if (!isLocalModel) {
-      active = active.filter((p) => !LOCAL_PROVIDERS.includes(p.name));
-    }
-
     setActiveProviders(active);
-  }, [providers, isLocalModel]);
+  }, [providers]);
 
   const saveSettings = useCallback((newSettings: Partial<Settings>) => {
     setSettings((prev) => {
@@ -135,11 +125,6 @@ export function useSettings(): UseSettingsReturn {
     logStore.logSystem(`Event logs ${enabled ? 'enabled' : 'disabled'}`);
   }, []);
 
-  const enableLocalModels = useCallback((enabled: boolean) => {
-    updateLocalModels(enabled);
-    logStore.logSystem(`Local models ${enabled ? 'enabled' : 'disabled'}`);
-  }, []);
-
   const setPromptId = useCallback((id: string) => {
     updatePromptId(id);
     logStore.logSystem(`Prompt template updated to ${id}`);
@@ -205,8 +190,6 @@ export function useSettings(): UseSettingsReturn {
     providers,
     activeProviders,
     updateProviderSettings,
-    isLocalModel,
-    enableLocalModels,
     debug,
     enableDebugMode,
     eventLogs,
diff --git a/app/lib/stores/settings.ts b/app/lib/stores/settings.ts
index f989fbcb..ccd3e2b1 100644
--- a/app/lib/stores/settings.ts
+++ b/app/lib/stores/settings.ts
@@ -129,7 +129,6 @@ const SETTINGS_KEYS = {
   AUTO_SELECT_TEMPLATE: 'autoSelectTemplate',
   CONTEXT_OPTIMIZATION: 'contextOptimizationEnabled',
   EVENT_LOGS: 'isEventLogsEnabled',
-  LOCAL_MODELS: 'isLocalModelsEnabled',
   PROMPT_ID: 'promptId',
   DEVELOPER_MODE: 'isDeveloperMode',
 } as const;
@@ -159,7 +158,6 @@ const getInitialSettings = () => {
     autoSelectTemplate: getStoredBoolean(SETTINGS_KEYS.AUTO_SELECT_TEMPLATE, true),
     contextOptimization: getStoredBoolean(SETTINGS_KEYS.CONTEXT_OPTIMIZATION, true),
     eventLogs: getStoredBoolean(SETTINGS_KEYS.EVENT_LOGS, true),
-    localModels: getStoredBoolean(SETTINGS_KEYS.LOCAL_MODELS, false),
     promptId: isBrowser ? localStorage.getItem(SETTINGS_KEYS.PROMPT_ID) || 'default' : 'default',
     developerMode: getStoredBoolean(SETTINGS_KEYS.DEVELOPER_MODE, false),
   };
@@ -172,7 +170,6 @@ export const latestBranchStore = atom<boolean>(initialSettings.latestBranch);
 export const autoSelectStarterTemplate = atom<boolean>(initialSettings.autoSelectTemplate);
 export const enableContextOptimizationStore = atom<boolean>(initialSettings.contextOptimization);
 export const isEventLogsEnabled = atom<boolean>(initialSettings.eventLogs);
-export const isLocalModelsEnabled = atom<boolean>(initialSettings.localModels);
 export const promptStore = atom<string>(initialSettings.promptId);
 
 // Helper functions to update settings with persistence
@@ -196,11 +193,6 @@ export const updateEventLogs = (enabled: boolean) => {
   localStorage.setItem(SETTINGS_KEYS.EVENT_LOGS, JSON.stringify(enabled));
 };
 
-export const updateLocalModels = (enabled: boolean) => {
-  isLocalModelsEnabled.set(enabled);
-  localStorage.setItem(SETTINGS_KEYS.LOCAL_MODELS, JSON.stringify(enabled));
-};
-
 export const updatePromptId = (id: string) => {
   promptStore.set(id);
   localStorage.setItem(SETTINGS_KEYS.PROMPT_ID, id);