diff --git a/src/lib/components/SettingsModal.svelte b/src/lib/components/SettingsModal.svelte
index b7a23f8..ffdc557 100644
--- a/src/lib/components/SettingsModal.svelte
+++ b/src/lib/components/SettingsModal.svelte
@@ -11,7 +11,7 @@
   let { visible, onClose }: Props = $props();
 
   let localSettings = $state<AppSettings>({ ...$settings });
-  let activeTab = $state<'transcription' | 'speakers' | 'ai' | 'local' | 'developer'>('transcription');
+  let activeTab = $state<'transcription' | 'speakers' | 'ai' | 'debug'>('transcription');
   let modelStatus = $state<'idle' | 'downloading' | 'success' | 'error'>('idle');
   let modelError = $state('');
   let revealedFields = $state<Set<string>>(new Set());
@@ -81,11 +81,8 @@
         <button class="tab" class:active={activeTab === 'ai'} onclick={() => activeTab = 'ai'}>
           AI Provider
         </button>
-        <button class="tab" class:active={activeTab === 'local'} onclick={() => activeTab = 'local'}>
-          Local AI
-        </button>
-        <button class="tab" class:active={activeTab === 'developer'} onclick={() => activeTab = 'developer'}>
-          Developer
+        <button class="tab" class:active={activeTab === 'debug'} onclick={() => activeTab = 'debug'}>
+          Debug
         </button>
       </div>
 
@@ -184,14 +181,27 @@
           <div class="field">
             <label for="ai-provider">AI Provider</label>
             <select id="ai-provider" bind:value={localSettings.ai_provider}>
-              <option value="local">Local (llama-server)</option>
+              <option value="local">Ollama</option>
               <option value="openai">OpenAI</option>
               <option value="anthropic">Anthropic</option>
               <option value="litellm">OpenAI Compatible</option>
             </select>
           </div>
 
-          {#if localSettings.ai_provider === 'openai'}
+          {#if localSettings.ai_provider === 'local'}
+            <div class="field">
+              <label for="ollama-url">Ollama URL</label>
+              <input id="ollama-url" type="text" bind:value={localSettings.ollama_url} placeholder="http://localhost:11434" />
+            </div>
+            <div class="field">
+              <label for="ollama-model">Model</label>
+              <input id="ollama-model" type="text" bind:value={localSettings.ollama_model} placeholder="llama3.2" />
+            </div>
+            <p class="hint">
+              Install Ollama from ollama.com, then pull a model with <code>ollama pull llama3.2</code>.
+              The app connects via Ollama's OpenAI-compatible API.
+            </p>
+          {:else if localSettings.ai_provider === 'openai'}
             <div class="field">
               <label for="openai-key">OpenAI API Key</label>
               <div class="input-reveal">
@@ -232,20 +242,7 @@
               <input id="litellm-model" type="text" bind:value={localSettings.litellm_model} placeholder="provider/model-name" />
             </div>
           {/if}
-        {:else}
-          <div class="field">
-            <label for="llama-binary">llama-server Binary Path</label>
-            <input id="llama-binary" type="text" bind:value={localSettings.local_binary_path} placeholder="llama-server" />
-          </div>
-          <div class="field">
-            <label for="llama-model">GGUF Model Path</label>
-            <input id="llama-model" type="text" bind:value={localSettings.local_model_path} placeholder="~/.voicetonotes/models/model.gguf" />
-          </div>
-          <p class="hint">
-            Place GGUF model files in ~/.voicetonotes/models/ for auto-detection.
-            The local AI server uses the OpenAI-compatible API from llama.cpp.
-          </p>
-        {:else if activeTab === 'developer'}
+        {:else if activeTab === 'debug'}
           <div class="field checkbox">
             <label>
               <input
diff --git a/src/lib/stores/settings.ts b/src/lib/stores/settings.ts
index c2c42cc..d8d208b 100644
--- a/src/lib/stores/settings.ts
+++ b/src/lib/stores/settings.ts
@@ -10,8 +10,8 @@ export interface AppSettings {
   litellm_model: string;
   litellm_api_key: string;
   litellm_api_base: string;
-  local_model_path: string;
-  local_binary_path: string;
+  ollama_url: string;
+  ollama_model: string;
   transcription_model: string;
   transcription_device: string;
   transcription_language: string;
@@ -30,8 +30,8 @@ const defaults: AppSettings = {
   litellm_model: 'gpt-4o-mini',
   litellm_api_key: '',
   litellm_api_base: '',
-  local_model_path: '',
-  local_binary_path: 'llama-server',
+  ollama_url: 'http://localhost:11434',
+  ollama_model: 'llama3.2',
   transcription_model: 'base',
   transcription_device: 'cpu',
   transcription_language: '',
@@ -61,7 +61,7 @@ export async function saveSettings(s: AppSettings): Promise<void> {
     openai: { api_key: s.openai_api_key, model: s.openai_model },
     anthropic: { api_key: s.anthropic_api_key, model: s.anthropic_model },
     litellm: { api_key: s.litellm_api_key, api_base: s.litellm_api_base, model: s.litellm_model },
-    local: { model: s.local_model_path, base_url: 'http://localhost:8080' },
+    local: { model: s.ollama_model, base_url: s.ollama_url + '/v1' },
   };
   const config = configMap[s.ai_provider];
   if (config) {