diff --git a/apps/app/src/react-app/domains/settings/pages/ai-view.tsx b/apps/app/src/react-app/domains/settings/pages/ai-view.tsx
index 76b6ca3e18..eb1095a5cb 100644
--- a/apps/app/src/react-app/domains/settings/pages/ai-view.tsx
+++ b/apps/app/src/react-app/domains/settings/pages/ai-view.tsx
@@ -77,6 +77,8 @@ export type AiSettingsViewProps = {
   /** Device provider sharing: which keys on this device can be shared with the organization, or already are. */
   shareRows?: ReadonlyMap<string, DeviceProviderShareRow>;
   onShareProvider?: (provider: { id: string; name: string }) => void;
+  /** Opens the Ollama page from the bottom of AI Providers. */
+  onUseOllama?: () => void;
 };
 
 function deviceSourceLabel(source: ConnectedProvider["source"]) {
@@ -241,5 +243,9 @@ export function AiSettingsView(props: AiSettingsViewProps) {
         {props.gatewayConnectProviders?.map((provider) => <GatewayConnectRow key={gatewayConnectProviderKey(provider)} provider={provider} busy={props.connectingGatewayProviderId === gatewayConnectProviderKey(provider)} onConnect={props.onConnectGatewayProvider} onCancel={props.onCancelGatewayConnect} />)}
       </ProviderList>
     </section> : null)}
+
+    {props.onUseOllama ? <div>
+      <Button variant="outline" data-testid="ai-providers-use-ollama" onClick={props.onUseOllama}>Use Ollama</Button>
+    </div> : null}
   </LayoutStack>;
 }
diff --git a/apps/app/src/react-app/domains/settings/shell/settings-page.tsx b/apps/app/src/react-app/domains/settings/shell/settings-page.tsx
index 4d93b15128..b99ba66092 100644
--- a/apps/app/src/react-app/domains/settings/shell/settings-page.tsx
+++ b/apps/app/src/react-app/domains/settings/shell/settings-page.tsx
@@ -222,7 +222,8 @@ export function getGlobalSettingsTabs(
   capabilities: Pick<PlatformCapabilities, "autoUpdate">,
   options: { desktop?: boolean } = {},
 ): SettingsTab[] {
-  const tabs: SettingsTab[] = ["ai", "ollama", "appearance", "shortcuts", "environment"];
+  // Ollama opens from a button on AI Providers, not from the sidebar.
+  const tabs: SettingsTab[] = ["ai", "appearance", "shortcuts", "environment"];
   if (options.desktop) tabs.push("computer");
   if (capabilities.autoUpdate) tabs.push("updates");
   if (developerMode) tabs.push("debug");
@@ -239,6 +240,8 @@ export function isSettingsTabBeta(_tab: SettingsTab) {
 }
 
 export function isSettingsTabActive(activeTab: SettingsTab, tab: SettingsTab) {
+  // The Ollama page is reached from AI Providers, which stays highlighted there.
+  if (activeTab === "ollama") return tab === "ai";
   return activeTab === tab;
 }
 
diff --git a/apps/app/src/react-app/domains/settings/shell/settings-shell.tsx b/apps/app/src/react-app/domains/settings/shell/settings-shell.tsx
index d5fe457cd5..d49667bc84 100644
--- a/apps/app/src/react-app/domains/settings/shell/settings-shell.tsx
+++ b/apps/app/src/react-app/domains/settings/shell/settings-shell.tsx
@@ -27,6 +27,7 @@ import {
   SettingsSidebar,
   getSettingsTabIcon,
   getSettingsTabLabel,
+  isSettingsTabActive,
   isSettingsTabBeta,
   useSettingsNavGroups,
 } from "./settings-page";
@@ -194,7 +195,7 @@ function SettingsSectionMenu(props: Pick<SettingsPageFrameProps, "activeTab" | "
                 <DropdownMenuItem
                   key={tab}
                   onClick={() => props.onSelectTab(tab)}
-                  className={props.activeTab === tab ? "bg-foreground/10 text-accent-foreground" : undefined}
+                  className={isSettingsTabActive(props.activeTab, tab) ? "bg-foreground/10 text-accent-foreground" : undefined}
                 >
                   <Icon />
                   <span>{getSettingsTabLabel(tab)}</span>
diff --git a/apps/app/src/react-app/shell/command-palette-settings.ts b/apps/app/src/react-app/shell/command-palette-settings.ts
index 34eb68bfaf..9f0d61605b 100644
--- a/apps/app/src/react-app/shell/command-palette-settings.ts
+++ b/apps/app/src/react-app/shell/command-palette-settings.ts
@@ -15,6 +15,7 @@ import { ADVANCED_SETTINGS_SECTIONS } from "@/react-app/domains/settings/advance
 import type { PaletteItem } from "./command-palette-search";
 
 const SETTINGS_KEYWORDS: Partial<Record<SettingsTab, string[]>> = {
+  ollama: ["local models", "llama", "offline", "on device"],
   ai: ["provider", "providers", "api key", "anthropic", "openai", "openrouter", "google", "gemini", "claude", "gpt", "connect model", "models"],
   preferences: ["default model", "reasoning", "thinking", "compaction", "effort"],
   permissions: ["authorized folders", "folder access", "file access", "allow", "permission denied", "sandbox", "approvals"],
@@ -52,6 +53,8 @@ export function buildCommandPaletteSettingsItems(input: {
     "general",
     ...getWorkspaceSettingsTabs(),
     ...getGlobalSettingsTabs(input.developerMode, input.capabilities),
+    // Not in the sidebar (opened from AI Providers), but still searchable.
+    "ollama",
     ...CLOUD_SETTINGS_TABS,
   ] satisfies SettingsTab[]).filter((tab) => isSettingsTabAllowed({ tab, checkRestriction }));
 
diff --git a/apps/app/src/react-app/shell/settings-route.tsx b/apps/app/src/react-app/shell/settings-route.tsx
index 893b8a08e5..0b9334b77c 100644
--- a/apps/app/src/react-app/shell/settings-route.tsx
+++ b/apps/app/src/react-app/shell/settings-route.tsx
@@ -2394,6 +2394,9 @@ function SettingsRouteContent(props: SettingsSurfaceProps = {}) {
             showOpenWorkModelsDeviceRow={openWorkModelsRow.showDeviceRow}
             organizationProviderIds={organizationProviderIds}
             onOpenDen={openProviderCloudPage}
+            onUseOllama={!checkDesktopRestriction({ restriction: "allowLocalModels" })
+              ? () => navigateSettingsPath("ollama")
+              : undefined}
             cloudProvidersView={
               <CloudProvidersView
                 runtimeWorkspaceId={runtimeWorkspaceId}
diff --git a/apps/app/tests/ollama-in-ai-providers.test.tsx b/apps/app/tests/ollama-in-ai-providers.test.tsx
new file mode 100644
index 0000000000..801af7e249
--- /dev/null
+++ b/apps/app/tests/ollama-in-ai-providers.test.tsx
@@ -0,0 +1,60 @@
+/** @jsxImportSource react */
+import { afterAll, expect, test } from "bun:test";
+import { GlobalRegistrator } from "@happy-dom/global-registrator";
+import { renderToStaticMarkup } from "react-dom/server";
+
+const ownedDom = typeof window === "undefined";
+if (ownedDom) GlobalRegistrator.register({ url: "http://localhost/" });
+const { getGlobalSettingsTabs, isSettingsTabActive } = await import("../src/react-app/domains/settings/shell/settings-page");
+const { buildCommandPaletteSettingsItems } = await import("../src/react-app/shell/command-palette-settings");
+const { AiSettingsView } = await import("../src/react-app/domains/settings/pages/ai-view");
+type AiSettingsViewProps = import("../src/react-app/domains/settings/pages/ai-view").AiSettingsViewProps;
+
+afterAll(async () => {
+  if (ownedDom) await GlobalRegistrator.unregister();
+});
+
+test("the sidebar drops Ollama and highlights AI Providers while the Ollama page is open", () => {
+  const tabs = getGlobalSettingsTabs(false, { autoUpdate: false });
+  expect(tabs).not.toContain("ollama");
+  expect(tabs).toContain("ai");
+  expect(isSettingsTabActive("ollama", "ai")).toBe(true);
+  expect(isSettingsTabActive("ollama", "ollama")).toBe(false);
+  expect(isSettingsTabActive("appearance", "ai")).toBe(false);
+});
+
+test("the command palette still finds the Ollama page", () => {
+  const items = buildCommandPaletteSettingsItems({
+    developerMode: false,
+    capabilities: { autoUpdate: false },
+    onOpenSettings: () => {},
+    onOpenExtensions: () => {},
+  });
+  expect(items.some((item) => item.id === "settings:ollama")).toBe(true);
+});
+
+const view: AiSettingsViewProps = {
+  busy: false,
+  providerAuthBusy: false,
+  providerStatusLabel: "",
+  providerStatusStyle: "",
+  providerSummary: "",
+  providerLoadState: { status: "ready", error: null },
+  onRetryProviders: () => {},
+  connectedProviders: [],
+  disconnectingProviderId: null,
+  providerConnectError: null,
+  providerDisconnectStatus: null,
+  providerDisconnectError: null,
+  onOpenProviderAuth: () => {},
+  onDisconnectProvider: () => {},
+  canDisconnectProvider: () => true,
+  canAddProviders: true,
+};
+
+test("AI Providers shows Use Ollama only when the page is given a way to open it", () => {
+  expect(renderToStaticMarkup(<AiSettingsView {...view} />)).not.toContain("Use Ollama");
+  const withButton = renderToStaticMarkup(<AiSettingsView {...view} onUseOllama={() => {}} />);
+  expect(withButton).toContain("ai-providers-use-ollama");
+  expect(withButton).toContain("Use Ollama");
+});