diff --git a/src/services/api/claude.ts b/src/services/api/claude.ts
index cd887963e..72f664244 100644
--- a/src/services/api/claude.ts
+++ b/src/services/api/claude.ts
@@ -181,7 +181,7 @@ import { calculateUSDCost } from 'src/utils/modelCost.js'
 import { endQueryProfile, queryCheckpoint } from 'src/utils/queryProfiler.js'
 import {
   modelSupportsAdaptiveThinking,
-  modelSupportsThinking,
+  shouldUseThinkingForModel,
   type ThinkingConfig,
 } from 'src/utils/thinking.js'
 import {
@@ -1604,18 +1604,16 @@ async function* queryModel(
       options.maxOutputTokensOverride ||
       getMaxOutputTokensForModel(options.model)
 
-    const hasThinking =
-      thinkingConfig.type !== 'disabled' &&
-      !isEnvTruthy(process.env.CLAUDE_CODE_DISABLE_THINKING)
+    const hasThinking = shouldUseThinkingForModel(retryContext.model, thinkingConfig)
     let thinking: BetaMessageStreamParams['thinking'] | undefined = undefined
 
     // IMPORTANT: Do not change the adaptive-vs-budget thinking selection below
     // without notifying the model launch DRI and research. This is a sensitive
     // setting that can greatly affect model quality and bashing.
-    if (hasThinking && modelSupportsThinking(options.model)) {
+    if (hasThinking) {
       if (
         !isEnvTruthy(process.env.CLAUDE_CODE_DISABLE_ADAPTIVE_THINKING) &&
-        modelSupportsAdaptiveThinking(options.model)
+        modelSupportsAdaptiveThinking(retryContext.model)
       ) {
         // For models that support adaptive thinking, always use adaptive
         // thinking without a budget.
@@ -1625,7 +1623,7 @@ async function* queryModel(
       } else {
         // For models that do not support adaptive thinking, use the default
         // thinking budget unless explicitly specified.
-        let thinkingBudget = getMaxThinkingTokensForModel(options.model)
+        let thinkingBudget = getMaxThinkingTokensForModel(retryContext.model)
         if (
           thinkingConfig.type === 'enabled' &&
           thinkingConfig.budgetTokens !== undefined
diff --git a/src/utils/thinking.test.ts b/src/utils/thinking.test.ts
index c8575550e..12a29d0db 100644
--- a/src/utils/thinking.test.ts
+++ b/src/utils/thinking.test.ts
@@ -25,6 +25,7 @@ const ENV_KEYS = [
   'ANTHROPIC_DEFAULT_SONNET_MODEL_SUPPORTED_CAPABILITIES',
   'ANTHROPIC_DEFAULT_HAIKU_MODEL',
   'ANTHROPIC_DEFAULT_HAIKU_MODEL_SUPPORTED_CAPABILITIES',
+  'CLAUDE_CODE_DISABLE_THINKING',
   'USER_TYPE',
 ]
 
@@ -57,9 +58,13 @@ afterEach(() => {
 
 async function importFreshThinkingModule() {
   mock.restore()
-  mock.module('./model/providers.js', () => ({
-    getAPIProvider: () => 'openai',
-  }))
+  const originalProviders = await import('./model/providers.js')
+  mock.module('./model/providers.js', () => {
+    return {
+      ...originalProviders,
+      getAPIProvider: () => 'openai',
+    }
+  })
   const nonce = `${Date.now()}-${Math.random()}`
   return import(`./thinking.js?ts=${nonce}`)
 }
@@ -109,3 +114,16 @@ describe('modelSupportsThinking — Z.AI GLM', () => {
     expect(modelSupportsThinking('GLM-5.1')).toBe(true)
   })
 })
+
+describe('shouldUseThinkingForModel — Ollama', () => {
+  test('does not use thinking for Ollama models when app-level thinking is enabled', async () => {
+    process.env.CLAUDE_CODE_USE_OPENAI = '1'
+    process.env.OPENAI_BASE_URL = 'http://localhost:11434/v1'
+    const { shouldUseThinkingForModel } = await importFreshThinkingModule()
+    const enabledThinking = { type: 'enabled' as const, budgetTokens: 1024 }
+
+    expect(shouldUseThinkingForModel('llama3.1:8b', enabledThinking)).toBe(false)
+    // Covers catalog-missing local names that would otherwise match Claude 4 heuristics.
+    expect(shouldUseThinkingForModel('claude-sonnet-4-local', enabledThinking)).toBe(false)
+  })
+})
diff --git a/src/utils/thinking.ts b/src/utils/thinking.ts
index a4c2aa746..73317007f 100644
--- a/src/utils/thinking.ts
+++ b/src/utils/thinking.ts
@@ -12,6 +12,7 @@ import { resolveAntModel } from './model/antModels.js'
 import { get3PModelCapabilityOverride } from './model/modelSupportOverrides.js'
 import { getAPIProvider } from './model/providers.js'
 import { getSettingsWithErrors } from './settings/settings.js'
+import { isEnvTruthy } from './envUtils.js'
 
 export type ThinkingConfig =
   | { type: 'adaptive' }
@@ -143,6 +144,10 @@ export function modelSupportsThinking(model: string): boolean {
     if (descriptorSupportsThinking !== undefined) {
       return descriptorSupportsThinking
     }
+    const routeId = resolveActiveRouteIdFromEnv(process.env)
+    if (routeId === 'ollama') {
+      return false
+    }
   }
   // 3P (Bedrock/Vertex): only Opus 4+ and Sonnet 4+
   return canonical.includes('sonnet-4') || canonical.includes('opus-4')
@@ -199,3 +204,14 @@ export function shouldEnableThinkingByDefault(): boolean {
   // Enable thinking by default unless explicitly disabled.
   return true
 }
+
+export function shouldUseThinkingForModel(
+  model: string,
+  thinkingConfig: ThinkingConfig,
+): boolean {
+  return (
+    thinkingConfig.type !== 'disabled' &&
+    !isEnvTruthy(process.env.CLAUDE_CODE_DISABLE_THINKING) &&
+    modelSupportsThinking(model)
+  )
+}