Using a Local Model as a Coding Assistant
Connect Ollama to VS Code with the Continue extension so you get AI coding help that never sends your code anywhere.
Why local for coding specifically
Coding assistants see everything - your actual source code, sometimes API keys or connection strings sitting in a config file, business logic you'd rather not hand to a third party. Cloud coding assistants are genuinely useful, but they also mean your code is leaving your machine constantly, all day, every file you touch.
Running this locally means the assistant is just as available, but nothing about your codebase goes anywhere. For anyone working under an NDA, on proprietary code, or just uncomfortable with the idea, that's the whole appeal.
Pulling a coding model
General-purpose models like llama3.2 can write code, but a model trained specifically for programming does noticeably better. qwen2.5-coder is the current standard choice for local coding assistance - it's not a typo or an odd naming convention, that's genuinely the model name.
ollama pull qwen2.5-coder
Installing Continue
Continue is a free, open-source VS Code extension that connects your editor to a model - local or cloud, your choice. Install it from the VS Code Extensions panel by searching "Continue."
Once installed, open Continue's configuration and point it at your local Ollama instance instead of a cloud provider. It auto-detects models you've already pulled, so qwen2.5-coder should show up in the list once Ollama is running.
From there, Continue works the way any coding assistant does - inline suggestions as you type, a chat panel for asking questions about your code, and the ability to select code and ask for changes.
What actually goes wrong
Continue doesn't see your local model
Confirm Ollama is actually running with ollama ps, and that Continue's configuration points at the correct local address rather than a default cloud endpoint left over from setup.
Suggestions feel slow compared to a cloud assistant
This is expected on CPU-only hardware, more so than with chat - code completion wants to feel instant. If the delay is bothering you day to day, this is one of the stronger cases for the full PC build guide's dedicated GPU path, since coding assistance benefits more from raw speed than casual chat does.
The model gives confidently wrong answers about your code
Treat it the way you'd treat a very fast junior developer: useful for a first pass, but verify anything that touches something critical. This isn't unique to local models - it's true of every current AI coding assistant, local or cloud.
Common questions
Is a local coding assistant as good as a cloud one?
Does my code ever leave my machine?
Go deeper
This guide covers one solid path. Here's where to go if you want something different.
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