diff --git a/packages/agent/src/core/llm/provider.ts b/packages/agent/src/core/llm/provider.ts
index ab01cb3..45ea377 100644
--- a/packages/agent/src/core/llm/provider.ts
+++ b/packages/agent/src/core/llm/provider.ts
@@ -63,6 +63,12 @@ export const providerConfig: Record<string, ProviderConfig> = {
     baseUrl: 'http://localhost:11434',
     factory: (model, options) => new OllamaProvider(model, options),
   },
+  'local-openai': {
+    docsUrl: 'https://mycoder.ai/docs/provider/local-openai',
+    model: 'llama3.2',
+    baseUrl: 'http://localhost:80',
+    factory: (model, options) => new OpenAIProvider(model, options),
+  },
   xai: {
     keyName: 'XAI_API_KEY',
     docsUrl: 'https://mycoder.ai/docs/provider/xai',
diff --git a/packages/docs/docs/providers/index.mdx b/packages/docs/docs/providers/index.mdx
index e0baa3b..cde7c87 100644
--- a/packages/docs/docs/providers/index.mdx
+++ b/packages/docs/docs/providers/index.mdx
@@ -11,8 +11,9 @@ MyCoder supports multiple Language Model (LLM) providers, giving you flexibility
 MyCoder currently supports the following LLM providers:
 
 - [**Anthropic**](./anthropic.md) - Claude models from Anthropic
-- [**OpenAI**](./openai.md) - GPT models from OpenAI (and OpenAI compatible providers)
+- [**OpenAI**](./openai.md) - GPT models from OpenAI
 - [**Ollama**](./ollama.md) - Self-hosted open-source models via Ollama
+- [**Local OpenAI Compatible**](./local-openai.md) - GPUStack and other OpenAI-compatible servers
 - [**xAI**](./xai.md) - Grok models from xAI
 
 ## Configuring Providers
@@ -53,4 +54,5 @@ For detailed instructions on setting up each provider, see the provider-specific
 - [Anthropic Configuration](./anthropic.md)
 - [OpenAI Configuration](./openai.md)
 - [Ollama Configuration](./ollama.md)
+- [Local OpenAI Compatible Configuration](./local-openai.md)
 - [xAI Configuration](./xai.md)
diff --git a/packages/docs/docs/providers/local-openai.md b/packages/docs/docs/providers/local-openai.md
new file mode 100644
index 0000000..8631d56
--- /dev/null
+++ b/packages/docs/docs/providers/local-openai.md
@@ -0,0 +1,123 @@
+---
+sidebar_position: 5
+---
+
+# Local OpenAI Compatible Servers
+
+MyCoder supports connecting to local or self-hosted OpenAI-compatible API servers, including solutions like [GPUStack](https://gpustack.ai/), [LM Studio](https://lmstudio.ai/), [Ollama OpenAI compatibility mode](https://github.com/ollama/ollama/blob/main/docs/openai.md), and [LocalAI](https://localai.io/).
+
+## Setup
+
+To use a local OpenAI-compatible server with MyCoder:
+
+1. Install and set up your preferred OpenAI-compatible server
+2. Start the server according to its documentation
+3. Configure MyCoder to connect to your local server
+
+### Configuration
+
+Configure MyCoder to use your local OpenAI-compatible server in your `mycoder.config.js` file:
+
+```javascript
+export default {
+  // Provider selection - use local-openai for any OpenAI-compatible server
+  provider: 'local-openai',
+  model: 'llama3.2', // Use the model name available on your server
+  
+  // The base URL for your local server
+  baseUrl: 'http://localhost:80', // Default for GPUStack, adjust as needed
+  
+  // Other MyCoder settings
+  maxTokens: 4096,
+  temperature: 0.7,
+  // ...
+};
+```
+
+## GPUStack
+
+[GPUStack](https://gpustack.ai/) is a solution for running AI models on your own hardware. It provides an OpenAI-compatible API server that works seamlessly with MyCoder.
+
+### Setting up GPUStack
+
+1. Install GPUStack following the instructions on their website
+2. Start the GPUStack server
+3. Configure MyCoder to use the `local-openai` provider
+
+```javascript
+export default {
+  provider: 'local-openai',
+  model: 'llama3.2', // Choose a model available on your GPUStack instance
+  baseUrl: 'http://localhost:80', // Default GPUStack URL
+};
+```
+
+## Other OpenAI-Compatible Servers
+
+You can use MyCoder with any OpenAI-compatible server by setting the appropriate `baseUrl`:
+
+### LM Studio
+
+```javascript
+export default {
+  provider: 'local-openai',
+  model: 'llama3', // Use the model name as configured in LM Studio
+  baseUrl: 'http://localhost:1234', // Default LM Studio server URL
+};
+```
+
+### LocalAI
+
+```javascript
+export default {
+  provider: 'local-openai',
+  model: 'gpt-3.5-turbo', // Use the model name as configured in LocalAI
+  baseUrl: 'http://localhost:8080', // Default LocalAI server URL
+};
+```
+
+### Ollama (OpenAI Compatibility Mode)
+
+```javascript
+export default {
+  provider: 'local-openai',
+  model: 'llama3', // Use the model name as configured in Ollama
+  baseUrl: 'http://localhost:11434/v1', // Ollama OpenAI compatibility endpoint
+};
+```
+
+## Hardware Requirements
+
+Running LLMs locally requires significant hardware resources:
+
+- Minimum 16GB RAM (32GB+ recommended)
+- GPU with at least 8GB VRAM for optimal performance
+- SSD storage for model files (models can be 5-20GB each)
+
+## Best Practices
+
+- Ensure your local server and the selected model support tool calling/function calling
+- Use models optimized for coding tasks when available
+- Monitor your system resources when running large models locally
+- Consider using a dedicated machine for hosting your local server
+
+## Troubleshooting
+
+If you encounter issues with local OpenAI-compatible servers:
+
+- Verify the server is running and accessible at the configured base URL
+- Check that the model name exactly matches what's available on your server
+- Ensure the model supports tool/function calling (required for MyCoder)
+- Check server logs for specific error messages
+- Test the server with a simple curl command to verify API compatibility:
+
+```bash
+curl http://localhost:80/v1/chat/completions \
+  -H "Content-Type: application/json" \
+  -d '{
+    "model": "llama3.2",
+    "messages": [{"role": "user", "content": "Hello!"}]
+  }'
+```
+
+For more information, refer to the documentation for your specific OpenAI-compatible server.
\ No newline at end of file