diff --git a/core/gallery/empty_base_install_test.go b/core/gallery/empty_base_install_test.go
index 6b104e233f02..051c10907bd0 100644
--- a/core/gallery/empty_base_install_test.go
+++ b/core/gallery/empty_base_install_test.go
@@ -236,8 +236,8 @@ var _ = Describe("InstallModelFromGallery with an empty base config", func() {
 		Expect(install(e.Name, gallery.GalleryModel{})).To(Succeed())
 		cfg := installedConfig(e.Name)
 		Expect(cfg["name"]).To(Equal(e.Name))
-		// The catalog's own overrides, verbatim, laid over the empty base.
-		Expect(cfg["parameters"]).To(Equal(e.Overrides["parameters"]))
+		// The catalog's model override survives inference-default enrichment.
+		Expect(cfg["parameters"]).To(HaveKeyWithValue("model", "LiquidAI_LFM2-1.2B-RAG-Q4_K_M.gguf"))
 		Expect(cfg["known_usecases"]).To(Equal(e.Overrides["known_usecases"]))
 	})
 })
diff --git a/core/gallery/inference_defaults_install_test.go b/core/gallery/inference_defaults_install_test.go
new file mode 100644
index 000000000000..50303a2a5a5f
--- /dev/null
+++ b/core/gallery/inference_defaults_install_test.go
@@ -0,0 +1,90 @@
+package gallery_test
+
+import (
+	"context"
+	"os"
+	"path/filepath"
+
+	. "github.com/onsi/ginkgo/v2"
+	. "github.com/onsi/gomega"
+	"gopkg.in/yaml.v3"
+
+	"github.com/mudler/LocalAI/core/gallery"
+	"github.com/mudler/LocalAI/pkg/modelartifacts"
+	"github.com/mudler/LocalAI/pkg/system"
+)
+
+var _ = Describe("gallery inference defaults", func() {
+	readPersistedConfig := func(modelsPath, name string) map[string]any {
+		data, err := os.ReadFile(filepath.Join(modelsPath, name+".yaml"))
+		Expect(err).NotTo(HaveOccurred())
+		persisted := map[string]any{}
+		Expect(yaml.Unmarshal(data, &persisted)).To(Succeed())
+		return persisted
+	}
+
+	expectNestedDefaults := func(persisted map[string]any) {
+		Expect(persisted).NotTo(HaveKey("temperature"))
+		Expect(persisted).NotTo(HaveKey("top_p"))
+		parameters, ok := persisted["parameters"].(map[string]any)
+		Expect(ok).To(BeTrue())
+		Expect(parameters).To(HaveKeyWithValue("temperature", 0.7))
+		Expect(parameters).To(HaveKeyWithValue("top_p", 0.42))
+		Expect(parameters).To(HaveKeyWithValue("top_k", 20))
+		Expect(parameters).To(HaveKeyWithValue("min_p", 0))
+		Expect(parameters).To(HaveKeyWithValue("repeat_penalty", 1))
+		Expect(parameters).To(HaveKeyWithValue("presence_penalty", 1.5))
+	}
+
+	It("persists defaults under parameters after artifact binding", func() {
+		modelsPath := GinkgoT().TempDir()
+		state, err := system.GetSystemState(system.WithModelPath(modelsPath))
+		Expect(err).NotTo(HaveOccurred())
+		resolved := modelartifacts.Spec{
+			Name: "model", Target: "model",
+			Source: modelartifacts.Source{Type: "huggingface", Repo: "owner/qwen3.5-model", Revision: "main"},
+			Resolved: &modelartifacts.Resolved{
+				Endpoint: "https://huggingface.co",
+				Revision: "0123456789abcdef0123456789abcdef01234567",
+				CacheKey: "0123456789abcdef0123456789abcdef0123456789abcdef0123456789abcdef",
+			},
+		}
+		fake := &fakeArtifactMaterializer{result: modelartifacts.Result{Spec: resolved}}
+		definition := &gallery.ModelConfig{Name: "qwen3.5-artifact", ConfigFile: `
+backend: transformers
+artifacts:
+  - name: model
+    target: model
+    source: {type: huggingface, repo: owner/qwen3.5-model}
+parameters:
+  model: owner/qwen3.5-model
+  top_p: 0.42
+`}
+
+		_, err = gallery.InstallModel(context.Background(), state, "", definition, nil, nil, false,
+			gallery.WithArtifactMaterializer(fake))
+		Expect(err).NotTo(HaveOccurred())
+		expectNestedDefaults(readPersistedConfig(modelsPath, definition.Name))
+	})
+
+	It("persists defaults under parameters when the entry declares files", func() {
+		modelsPath := GinkgoT().TempDir()
+		state, err := system.GetSystemState(system.WithModelPath(modelsPath))
+		Expect(err).NotTo(HaveOccurred())
+		Expect(os.WriteFile(filepath.Join(modelsPath, "weights.gguf"), []byte("weights"), 0644)).To(Succeed())
+		definition := &gallery.ModelConfig{
+			Name: "qwen3.5-files",
+			ConfigFile: `
+backend: llama-cpp
+parameters:
+  model: weights.gguf
+  top_p: 0.42
+`,
+			Files: []gallery.File{{Filename: "weights.gguf", URI: "https://example.com/weights.gguf"}},
+		}
+
+		_, err = gallery.InstallModel(context.Background(), state, "", definition, nil, nil, false)
+		Expect(err).NotTo(HaveOccurred())
+		expectNestedDefaults(readPersistedConfig(modelsPath, definition.Name))
+	})
+})
diff --git a/core/gallery/models.go b/core/gallery/models.go
index f3184648b15e..28d2435712ec 100644
--- a/core/gallery/models.go
+++ b/core/gallery/models.go
@@ -622,35 +622,41 @@ func InstallModel(ctx context.Context, systemState *system.SystemState, nameOver
 		lconfig.ApplyInferenceDefaults(&modelConfig, name, modelConfig.Model)
 
 		// Merge inference defaults into configMap so they are persisted without losing unknown fields.
+		defaults := make(map[string]any)
 		if modelConfig.Temperature != nil {
-			if _, exists := configMap["temperature"]; !exists {
-				configMap["temperature"] = *modelConfig.Temperature
-			}
+			defaults["temperature"] = *modelConfig.Temperature
 		}
 		if modelConfig.TopP != nil {
-			if _, exists := configMap["top_p"]; !exists {
-				configMap["top_p"] = *modelConfig.TopP
-			}
+			defaults["top_p"] = *modelConfig.TopP
 		}
 		if modelConfig.TopK != nil {
-			if _, exists := configMap["top_k"]; !exists {
-				configMap["top_k"] = *modelConfig.TopK
-			}
+			defaults["top_k"] = *modelConfig.TopK
 		}
 		if modelConfig.MinP != nil {
-			if _, exists := configMap["min_p"]; !exists {
-				configMap["min_p"] = *modelConfig.MinP
-			}
+			defaults["min_p"] = *modelConfig.MinP
 		}
 		if modelConfig.RepeatPenalty != 0 {
-			if _, exists := configMap["repeat_penalty"]; !exists {
-				configMap["repeat_penalty"] = modelConfig.RepeatPenalty
-			}
+			defaults["repeat_penalty"] = modelConfig.RepeatPenalty
 		}
 		if modelConfig.PresencePenalty != 0 {
-			if _, exists := configMap["presence_penalty"]; !exists {
-				configMap["presence_penalty"] = modelConfig.PresencePenalty
+			defaults["presence_penalty"] = modelConfig.PresencePenalty
+		}
+		if len(defaults) > 0 {
+			parameters, ok := configMap["parameters"].(map[string]any)
+			if !ok {
+				parameters = make(map[string]any)
+				configMap["parameters"] = parameters
 			}
+			for key, value := range defaults {
+				if _, exists := parameters[key]; !exists {
+					parameters[key] = value
+				}
+			}
+		}
+
+		updatedConfigYAML, err = yaml.Marshal(configMap)
+		if err != nil {
+			return nil, fmt.Errorf("failed to marshal config with inference defaults: %v", err)
 		}
 
 		if valid, err := modelConfig.Validate(); !valid {