How to connect a local AI model(with Ollama) to VS Code. (Updated)

#tutorial #vscode #ai #tooling

You can try out the latest Ollama models on VS Code for free.

We are using Ollama, which is a free local AI model running application developed by the Llama community.

Installing and using Ollama

You can download Ollama from its website.

Now you'll be able to access ollama using your terminal.

Open your terminal.
Type ollama to verify if it's been installed.
Run a model you like(depending on your hardware), using the command:
ollama run qwen3:4b
This command will pull and run the model.
Change the model name to your preferred model and install it.
To view all the available models, go to ollama.com/search
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If you want to run a high-end AI model, you can use Ollama Cloud for free.
Run them like this: ollama pull qwen3-coder:480b-cloud.
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Integrating with VS Code

Make sure the Ollama server is running in the background.
Verification: Check this URL, localhost:11434, and see if Ollama is running.
If not: Run it using the command ollama serve.

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Open VS Code -> Copilot chat sidebar.
Select the model dropdown -> Manage models -> Add Models(Top right) -> Select Ollama -> Hit Enter ("Ollama" prewritten) -> Type 'http://localhost:11434/' and Enter -> Select the desired models.