diff --git a/packages/opencode/src/provider/provider.ts b/packages/opencode/src/provider/provider.ts
index d7c85f2ee6ae..9fdade0aee94 100644
--- a/packages/opencode/src/provider/provider.ts
+++ b/packages/opencode/src/provider/provider.ts
@@ -1487,10 +1487,14 @@ export const layer = Layer.effect(
           const providerID = ProviderV2.ID.make(id)
           if (disabled.has(providerID)) continue
           if (provider.type === "api") {
-            mergeProvider(providerID, {
+            const patch: Partial<Info> = {
               source: "api",
               key: provider.key,
-            })
+            }
+            if (provider.metadata?.baseURL) {
+              patch.options = { baseURL: provider.metadata.baseURL }
+            }
+            mergeProvider(providerID, patch)
           }
         }
 
diff --git a/packages/opencode/test/provider/provider.test.ts b/packages/opencode/test/provider/provider.test.ts
index 6edfc97ca06e..0e8613dc88d2 100644
--- a/packages/opencode/test/provider/provider.test.ts
+++ b/packages/opencode/test/provider/provider.test.ts
@@ -77,7 +77,7 @@ const paid = (providers: Record<string, { models: Record<string, { cost: { input
 
 const languageBaseURL = (language: unknown) => (language as { config: { baseURL: string } }).config.baseURL
 
-const it = testEffect(Layer.mergeAll(Provider.defaultLayer, Env.defaultLayer, Plugin.defaultLayer))
+const it = testEffect(Layer.mergeAll(Provider.defaultLayer, Env.defaultLayer, Plugin.defaultLayer, Auth.defaultLayer))
 const experimentalModels = testEffect(providerLayer({ enableExperimentalModels: true }))
 
 const alphaProviderConfig = {
@@ -526,6 +526,33 @@ it.instance(
   },
 )
 
+it.instance("provider loaded from auth metadata with baseURL", () =>
+  Effect.gen(function* () {
+    const auth = yield* Auth.Service
+    yield* auth.set("custom-auth-provider", {
+      type: "api",
+      key: "test-api-key",
+      metadata: { baseURL: "http://localhost:1234/v1" }
+    })
+    const providers = yield* list
+    expect(providers[ProviderV2.ID.make("custom-auth-provider")]).toBeDefined()
+    expect(providers[ProviderV2.ID.make("custom-auth-provider")].options.baseURL).toBe("http://localhost:1234/v1")
+    expect(providers[ProviderV2.ID.make("custom-auth-provider")].key).toBe("test-api-key")
+  }),
+  {
+    config: {
+      provider: {
+        "custom-auth-provider": {
+          name: "Custom Auth Provider",
+          npm: "@ai-sdk/openai-compatible",
+          env: [],
+          models: { "model-1": { name: "Model 1", tool_call: true, limit: { context: 8000, output: 2000 } } },
+        },
+      },
+    },
+  },
+)
+
 it.instance(
   "model inherits properties from existing database model",
   Effect.gen(function* () {
diff --git a/packages/tui/src/component/dialog-provider.tsx b/packages/tui/src/component/dialog-provider.tsx
index 2767508eb2d2..65105c363494 100644
--- a/packages/tui/src/component/dialog-provider.tsx
+++ b/packages/tui/src/component/dialog-provider.tsx
@@ -43,6 +43,9 @@ type ProviderOption =
   | (ProviderOptionBase & {
       type: "custom"
     })
+  | (ProviderOptionBase & {
+      type: "localhost"
+    })
 
 export function providerOptions(list: { id: string; name: string }[]): ProviderOption[] {
   return [
@@ -67,6 +70,13 @@ export function providerOptions(list: { id: string; name: string }[]): ProviderO
         category: provider.id in PROVIDER_PRIORITY ? "Popular" : "Providers",
       })),
     ),
+    {
+      type: "localhost",
+      title: "Localhost",
+      value: "__opencode_localhost__",
+      description: "Ollama, LM Studio, etc.",
+      category: "Providers",
+    },
     {
       type: "custom",
       title: "Other",
@@ -113,10 +123,104 @@ export function createDialogProviderOptions() {
     return promptCustomProviderID()
   }
 
+  async function promptLocalhostSetup(): Promise<{ providerID: string; apiLink: string; apiKey: string } | undefined> {
+    const providerID = await new Promise<string | null>((resolve) => {
+      dialog.replace(
+        () => (
+          <DialogSelect
+            title="Select local provider"
+            options={[
+              { title: "Ollama", value: "ollama" },
+              { title: "LM Studio", value: "lm-studio" },
+              { title: "Llama.cpp", value: "llama-cpp" },
+              { title: "Other (custom ID)", value: "custom" },
+            ]}
+            onSelect={(option) => resolve(option.value)}
+          />
+        ),
+        () => resolve(null),
+      )
+    })
+    if (!providerID) return
+
+    let finalProviderID = providerID
+    if (providerID === "custom") {
+      const customID = await promptCustomProviderID()
+      if (!customID) return
+      finalProviderID = customID
+    }
+
+    const defaultLink = {
+      ollama: "http://localhost:11434/v1",
+      "lm-studio": "http://localhost:1234/v1",
+      "llama-cpp": "http://localhost:8080/v1",
+    }[providerID] ?? "http://localhost:11434/v1"
+
+    const apiLink = await DialogPrompt.show(dialog, "API Link (baseURL)", {
+      placeholder: defaultLink,
+      description: () => (
+        <text fg={theme.textMuted}>
+          Enter the local endpoint URL (e.g. {defaultLink})
+        </text>
+      ),
+    })
+    if (apiLink === null) return
+
+    const apiKey = await DialogPrompt.show(dialog, "API Key", {
+      placeholder: "None (optional)",
+      description: () => (
+        <text fg={theme.textMuted}>
+          Enter an API key if required by your local server
+        </text>
+      ),
+    })
+    if (apiKey === null) return
+
+    return {
+      providerID: finalProviderID,
+      apiLink: apiLink.trim() || defaultLink,
+      apiKey: apiKey.trim() || "no-key",
+    }
+  }
+
   const options = createMemo(() => {
     return pipe(
       providerOptions(sync.data.provider_next.all),
       map((provider) => {
+        if (provider.type === "localhost") {
+          return {
+            title: provider.title,
+            value: provider.value,
+            description: provider.description,
+            category: provider.category,
+            async onSelect() {
+              const result = await promptLocalhostSetup()
+              if (!result) return
+              const { providerID, apiLink, apiKey } = result
+
+              await sdk.client.auth.set({
+                providerID,
+                auth: {
+                  type: "api",
+                  key: apiKey,
+                  metadata: { baseURL: apiLink },
+                },
+              })
+              await sdk.client.instance.dispose()
+              await sync.bootstrap()
+              if (!sync.data.provider_next.all.some((p) => p.id === providerID)) {
+                toast.show({
+                  variant: "info",
+                  message: `Saved local credential for ${providerID}. Configure it in opencode.json to use it.`,
+                })
+                dialog.clear()
+                return
+              }
+              dialog.replace(() => <DialogModel providerID={providerID} />)
+            },
+          }
+        }
+
         if (provider.type === "custom") {
           return {
             title: provider.title,