Use a Local LLM in Cursor with Ollama

Cursor can use a model running on your own machine, such as one served by Ollama or LM Studio. It can’t reach it at localhost, though. Cursor sends every model request through its own servers to build the prompt, so the base URL you give it has to be reachable from the internet. This guide gives your local model a stable public HTTPS URL with ngrok, requires a token so only Cursor can call it, and connects it to Cursor. It works on every ngrok plan, including free.

Why localhost doesn’t work

When you set Override OpenAI Base URL to http://localhost:11434/v1, Cursor’s servers try to call localhost on their own machines, not yours. The request never arrives, and chat hangs or shows a connection error. A LAN address such as 192.168.1.20 fails for the same reason. ngrok gives your model a public URL that Cursor’s servers can reach, and forwards each request to localhost on your machine.

What you’ll need

Cursor
Ollama with a model pulled, such as ollama pull qwen2.5-coder, or LM Studio with its local server started
The ngrok agent installed
An ngrok account and your authtoken

1. Create a Traffic Policy that requires a token

Your URL is public, so anyone who finds it could use your GPU. Cursor sends its API key as a bearer token, so require one. Generate a token:

openssl rand -hex 32

Save this as policy.yaml, replacing YOUR_TOKEN with the value you generated:

on_http_request:
  - expressions:
      - "!hasReqHeader('Authorization') || getReqHeader('Authorization')[0] != 'Bearer YOUR_TOKEN'"
    actions:
      - type: deny
        config:
          status_code: 401
  - actions:
      - type: add-headers
        config:
          headers:
            host: localhost

The first rule rejects requests without your token before they reach your machine. The second rewrites the Host header, because Ollama rejects requests addressed to other hostnames.

2. Put your model online

Ollama
LM Studio

ngrok config add-authtoken <YOUR_AUTHTOKEN>
ngrok http 11434 --traffic-policy-file policy.yaml

Start the server in LM Studio’s Developer tab, then:

ngrok config add-authtoken <YOUR_AUTHTOKEN>
ngrok http 1234 --traffic-policy-file policy.yaml

ngrok prints your public URL, such as https://your-assigned-name.ngrok-free.dev. This is your account’s dev domain, and it stays the same every time you restart, so you only configure Cursor once. Check it from another terminal:

curl https://your-assigned-name.ngrok-free.dev/v1/models \
  -H "Authorization: Bearer YOUR_TOKEN"

You should see your models. Note the exact model ID, such as qwen2.5-coder:latest; you need it in the next step.

3. Add the model to Cursor

Open Cursor Settings > Models.
Under API Keys, turn on OpenAI API Key and paste YOUR_TOKEN as the key.
Turn on Override OpenAI Base URL and enter your ngrok URL plus /v1:
https://your-assigned-name.ngrok-free.dev/v1
Click Add model and enter the model ID exactly as /v1/models returned it.
Turn off other models while you test, so Cursor doesn’t fall back to a hosted one.
Click Verify.

Open a chat, pick your model, and send a prompt.

4. Watch the traffic

Open http://localhost:4040 while you chat. The ngrok inspector shows each request Cursor sends and each response your model returns. If chat hangs, check here first: you see whether the request arrived, whether ngrok rejected it, and what your model sent back.

What works with a local model

Cursor feature	Uses your local model?
Chat and Agent	Yes, when you select it
Inline edit (Cmd/Ctrl+K)	Yes, when you select it
Tab autocomplete	No. Tab always uses Cursor’s own model

Cursor still sends your prompts through its servers, so a local model keeps inference on your hardware but doesn’t keep your code off the network.

Troubleshooting

Symptom	Likely cause	Fix
Chat hangs and nothing appears in the inspector	Base URL is `localhost` or a LAN IP	Use your ngrok URL plus `/v1`
`401` in the inspector	Cursor’s API key doesn’t match your token	Paste the same token into Cursor’s OpenAI API key field
`403` from Ollama	Ollama rejected the `Host` header	Keep the `add-headers` rule in your policy
”Invalid model” or “model is required”	Model ID doesn’t match what the server reports	Copy the ID exactly from `/v1/models`
Responses are slow or cut off	The model is too large for your hardware or context window	Try a smaller model or raise Ollama’s context length

Frequently asked questions

Can Cursor use a local LLM?

Yes, for Chat, Agent, and inline edit. Cursor needs a public HTTPS URL for the model, because its servers make the request. Run ngrok http 11434 in front of Ollama and set that URL, plus /v1, as Cursor’s OpenAI base URL.

Why can't Cursor reach localhost:11434?

Cursor routes model requests through its own servers, which can’t see your machine’s localhost or local network.

Does the ngrok URL change when I restart?

No. Every ngrok account, including free, gets a dev domain that ngrok http reuses on every run.

Can I run the model on a different machine than Cursor?

Yes. Run Ollama and ngrok on the machine with the GPU, and use its ngrok URL in Cursor on any other machine.

Is my code private if I use a local model?

Inference runs on your hardware, but Cursor still routes prompts through its servers. If your code can’t leave your network, a local model in Cursor doesn’t solve that by itself.

What’s next

Secure and share your Ollama API with other apps.
Expose a local MCP server so Cursor and other AI clients can call your tools.
Route between local and hosted models with failover using the AI Gateway.

Getting Started

Use Cases

Examples

Connectivity

Traffic Policy

Observability

Network

Resources

Identity & Access

Use a Local LLM in Cursor with Ollama

Why localhost doesn’t work

What you’ll need

1. Create a Traffic Policy that requires a token

2. Put your model online

3. Add the model to Cursor

4. Watch the traffic

What works with a local model

Troubleshooting

Frequently asked questions

What’s next

​Why localhost doesn’t work

​What you’ll need

​1. Create a Traffic Policy that requires a token

​2. Put your model online

​3. Add the model to Cursor

​4. Watch the traffic

​What works with a local model

​Troubleshooting

​Frequently asked questions

​What’s next

Why localhost doesn’t work

What you’ll need

1. Create a Traffic Policy that requires a token

2. Put your model online

3. Add the model to Cursor

4. Watch the traffic

What works with a local model

Troubleshooting

Frequently asked questions

What’s next