Zed with a local model: start the native agent workflow

For Zed’s native local assistant, configure the model access path used by Zed itself and select the model in its dropdown. External agents and edit prediction have separate configuration ownership, so a working native Agent is not proof that those features are configured.

The concrete application boundary

The provider documentation explicitly applies to Zed-owned features such as the native Agent and Inline Assistant. The local model guide lists Ollama, LM Studio, llama.cpp, and compatible local servers as supported paths. Existing Ollama models can be discovered by Zed, while LM Studio requires its API server to be running. Edit Prediction uses its own provider setup, and an external agent normally owns its model configuration. Begin with the native Agent so the selected model and tool permissions have a single application owner. This also avoids confusing a terminal process embedded in the editor with the editor’s own model connection (Zed Agent documentation) (Zed model provider ownership).

A practical route

Start the intended existing local runtime and confirm its model inventory. In Zed choose an Ollama or LM Studio model from the model dropdown according to the runtime you actually use. For Ollama manual inventory, the documented language_models.ollama configuration can disable auto_discover and list available_models explicitly; do not invent capabilities merely to make an entry appear. Open the Agent panel, select the native Zed Agent, and supply one harmless source file. Ask for a description before permitting any edit or terminal action (Zed local model guide).

A worked example

Use a file containing a parser for a fictional configuration line. Ask why a missing delimiter produces its current result. Then request a suggested error message while preserving the parser’s return behavior. Review the proposed change through the editor. If a tool action is requested, inspect the applicable Zed tool permission rather than assuming that choosing a local model grants file access.

Check	Record
Agent path	The native Zed Agent, not an external ACP process.
Model path	The selected local runtime and actual discovered model identity.
Review	The parser explanation and the proposed message change inspected in the editor.

Reading the failure correctly

A native chat that works alongside missing inline prediction is not contradictory: Edit Prediction has a separate setup. A model visible in the dropdown may still lack reliable tool use for a requested task. Also avoid changing an external agent’s credentials in Zed’s native provider settings; those settings control a different owner (Zed Tool Permissions).

What completes the check

Finish with a successful native conversation and a reviewed small proposal. Preserve the selected agent path in the setup note so a later external-agent experiment does not silently change the meaning of the same local-model claim.