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How to Set Up Ollama in VS Code and Choose a Model

Use the official Ollama extension to discover models in VS Code Chat, select one from the model picker, and resolve common setup issues.
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To use Ollama models in Visual Studio Code, install the official Ollama extension, start Ollama, then choose a model in VS Code Chat. The extension requires Visual Studio Code 1.127 or newer, a running Ollama server, and at least one model available through Ollama. Local models do not require sign-in; cloud models may prompt you to sign in.

What you need before setting it up

  • Visual Studio Code version 1.127 or newer.
  • Ollama installed and running on your computer.
  • At least one local or cloud model available in Ollama.

Ollama 0.17.6 or newer is recommended for cloud-model sign-in and richer model metadata. Older Ollama versions may still work with local models. See Ollama’s VS Code extension documentation.

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Install the official Ollama extension and select a model

  1. Install the official Ollama extension from the Visual Studio Code Marketplace.
  2. Start Ollama. By default, the extension discovers models from http://127.0.0.1:11434.
  3. If Ollama has no model available yet, add one. Ollama’s documentation gives ollama pull qwen3.6 as a local-model example. For a cloud-model example, it shows ollama pull kimi-k2.6:cloud, followed by ollama signin. These are examples, not recommendations for every task or computer.
  4. Open Chat in VS Code and open the model picker at the bottom of the chat input.
  5. Choose a model listed under the Ollama section, then send a prompt in Chat.

The local and cloud examples, along with the default discovery endpoint, are documented in Ollama’s VS Code integration guide.

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Choose between a local and cloud model

A local model runs through the Ollama installation on your computer; a cloud model uses Ollama’s cloud offering. Ollama states that local models do not require sign-in. A cloud model may require authentication, in which case run ollama signin when prompted. The cited setup documentation does not establish a general privacy, cost, or performance comparison between the two options.

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Use the current provider setup

Older setup guides may refer to VS Code’s built-in Ollama provider. Microsoft’s current language-model documentation marks that provider as deprecated and directs users to install the official Ollama extension for local models. Use the extension workflow above rather than relying on instructions for the deprecated provider: Microsoft’s VS Code language-model documentation.

Fix models missing from the picker

  1. Confirm Ollama is running and check that a model is available with ollama list.
  2. In VS Code, open the Command Palette and run Ollama: Refresh Models.
  3. If the model still does not appear, run Ollama: Diagnose Models and inspect the Ollama output channel for diagnostic details.
  4. If a cloud model asks for authentication, run ollama signin.

These checks follow the troubleshooting steps in the Ollama extension documentation and Ollama’s VS Code integration guide.

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Address context-length needs for local models

VS Code may show a model’s maximum supported context length even when Ollama allocates a smaller context at runtime. For the documented local-model flow, Ollama instructs users to open Ollama Settings, set the context length to at least 64k, reload the VS Code window, and resend the prompt. This setting is a documented way to address context needs, not a guarantee that every model or device will perform well at that size. See Ollama’s integration instructions.

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What the setup documentation does not establish

The reviewed official integration sources do not specify suitable CPU, GPU, memory, or storage requirements, or publish comparative local-inference benchmarks. They therefore do not support a universal hardware recommendation or a claim that a particular model will run well on every computer.

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