diff --git a/ct/localagi.sh b/ct/localagi.sh
index cea6b7701..58739b96c 100644
--- a/ct/localagi.sh
+++ b/ct/localagi.sh
@@ -273,6 +273,11 @@ function update_script() {
     exit
   fi
 
+  if grep -q '^LOCALAGI_LLM_API_URL=http://127.0.0.1:8081$' /opt/localagi/.env; then
+    set_env_var /opt/localagi/.env "LOCALAGI_LLM_API_URL" "http://127.0.0.1:11434/v1"
+    msg_warn "Migrated LOCALAGI_LLM_API_URL from 127.0.0.1:8081 to 127.0.0.1:11434/v1"
+  fi
+
   # Provision ROCm runtime only when AMD backend is selected.
   if [[ "${BACKEND}" == "rocm7.2" ]]; then
     install_rocm_runtime_debian || msg_warn "ROCm runtime package installation failed"
diff --git a/frontend/public/json/localagi.json b/frontend/public/json/localagi.json
index 4f0ad2ffe..a3a247096 100644
--- a/frontend/public/json/localagi.json
+++ b/frontend/public/json/localagi.json
@@ -41,7 +41,11 @@
       "type": "info"
     },
     {
-      "text": "By default, LocalAGI is configured to call an external OpenAI-compatible backend at `http://127.0.0.1:8081` via `LOCALAGI_LLM_API_URL`.",
+      "text": "By default, LocalAGI is configured to call an OpenAI-compatible backend at `http://127.0.0.1:11434/v1` (Ollama-compatible) via `LOCALAGI_LLM_API_URL`.",
+      "type": "info"
+    },
+    {
+      "text": "To use an external Ollama host, edit `/opt/localagi/.env` and set `LOCALAGI_LLM_API_URL=http://<ollama-host>:11434/v1`, then restart LocalAGI with `systemctl restart localagi`.",
       "type": "info"
     }
   ]
diff --git a/install/localagi-install.sh b/install/localagi-install.sh
index 1946d0b48..61082c252 100644
--- a/install/localagi-install.sh
+++ b/install/localagi-install.sh
@@ -241,12 +241,13 @@ fi
 
 # Generate runtime configuration file used by systemd service.
 # Note: `LOCALAGI_LLM_API_URL` points to an OpenAI-compatible backend endpoint.
+# Defaulting to Ollama's OpenAI-compatible API avoids a dead 127.0.0.1:8081 endpoint.
 msg_info "Configuring LocalAGI"
 cat <<EOF >/opt/localagi/.env
 LOCALAGI_MODEL=gemma-3-4b-it-qat
 LOCALAGI_MULTIMODAL_MODEL=moondream2-20250414
 LOCALAGI_IMAGE_MODEL=sd-1.5-ggml
-LOCALAGI_LLM_API_URL=http://127.0.0.1:8081
+LOCALAGI_LLM_API_URL=http://127.0.0.1:11434/v1
 LOCALAGI_STATE_DIR=/opt/localagi/pool
 LOCALAGI_TIMEOUT=5m
 LOCALAGI_ENABLE_CONVERSATIONS_LOGGING=false