diff --git a/package.json b/package.json
index 2520146..db236f6 100644
--- a/package.json
+++ b/package.json
@@ -11,7 +11,8 @@
     "test": "node --test test/*.test.mjs packages/user-intent-kit/test/*.test.js",
     "start": "node bin/cli.mjs serve",
     "mcp": "node bin/iak-mcp.mjs",
-    "relay": "node scripts/local-relay.mjs"
+    "relay": "node scripts/local-relay.mjs",
+    "agent": "node scripts/local-agent.mjs"
   },
   "keywords": [
     "ide",
@@ -50,4 +51,4 @@
     "@modelcontextprotocol/sdk": "^1.29.0",
     "user-intent-kit": "file:packages/user-intent-kit"
   }
-}
\ No newline at end of file
+}
diff --git a/scripts/local-agent.mjs b/scripts/local-agent.mjs
new file mode 100644
index 0000000..e41bd7d
--- /dev/null
+++ b/scripts/local-agent.mjs
@@ -0,0 +1,159 @@
+#!/usr/bin/env node
+// SPDX-License-Identifier: AGPL-3.0-only
+//
+// iak-local-agent — put a local (Ollama) model into a GroupMind room.
+//
+// Runs a small poll loop: read the room, and when a message @mentions this
+// agent's handle, prompt the local model over Ollama's HTTP API and post the
+// reply back — so an on-device model becomes a first-class room participant.
+//
+// It fails over between endpoints: it reads/writes cloud GroupMind when the
+// internet is up, and the LAN GroupMind Local relay when it isn't. Point mm and
+// mb agents at the same relay, flip the net off, and the local pair keeps
+// talking — no cloud, no API keys, models running on-device.
+//
+// Zero runtime deps (global fetch + built-ins), matching the rest of IAK.
+//
+// Config (via runAgent(config) or env for the CLI):
+//   handle          this agent's @handle (it never replies to itself)
+//   room            room slug
+//   cloud           { baseUrl, apiKey }   cloud GroupMind (preferred when up)
+//   relay           { baseUrl, token? }   LAN relay (failover)
+//   ollama          { url, model }        e.g. http://127.0.0.1:11434, gpt-oss:20b
+//   systemPrompt    persona / instructions for the model
+//   respondTo       'mention' (default) or 'all'
+//   pollMs          poll interval (default 4000)
+//   maxContext      how many recent messages to feed the model (default 8)
+
+const MENTION = (handle) => new RegExp(`(^|[^\\w])@?${handle.replace(/^@/, '').replace(/[.*+?^${}()|[\]\\]/g, '\\$&')}\\b`, 'i');
+
+export function mentions(body, handle) {
+  return MENTION(handle).test(String(body || ''));
+}
+
+export function sameHandle(a, b) {
+  return String(a || '').replace(/^@/, '').toLowerCase() === String(b || '').replace(/^@/, '').toLowerCase();
+}
+
+// Ask the local Ollama model for a reply. Returns trimmed text ('' on empty).
+export async function generateReply({ url, model, systemPrompt, context, keepAlive }) {
+  const res = await fetch(`${url.replace(/\/$/, '')}/api/chat`, {
+    method: 'POST',
+    headers: { 'Content-Type': 'application/json' },
+    body: JSON.stringify({
+      model,
+      stream: false,
+      // Unload the model after idle so a big local model (e.g. the Mini's 17GB
+      // MoE) doesn't permanently pin RAM the machine's other services need.
+      keep_alive: keepAlive || '5m',
+      messages: [
+        ...(systemPrompt ? [{ role: 'system', content: systemPrompt }] : []),
+        { role: 'user', content: context },
+      ],
+    }),
+    signal: AbortSignal.timeout(180_000),
+  });
+  if (!res.ok) throw new Error(`ollama HTTP ${res.status}: ${(await res.text()).slice(0, 120)}`);
+  const d = await res.json();
+  // Strip thinking-model output (<think>...</think>) so room replies read clean —
+  // the fleet's local models (e.g. qwen3.6 MoE) are reasoning models.
+  return String(d?.message?.content || '').replace(/<think>[\s\S]*?<\/think>/gi, '').trim();
+}
+
+function headersFor(ep) {
+  const h = { 'Content-Type': 'application/json' };
+  const key = ep.apiKey || ep.token;
+  if (key) { h['X-API-Key'] = key; h['Authorization'] = `Bearer ${key}`; }
+  return h;
+}
+
+async function fetchMessages(ep, room, limit) {
+  const res = await fetch(`${ep.baseUrl.replace(/\/$/, '')}/rooms/${encodeURIComponent(room)}/messages?limit=${limit}`,
+    { headers: headersFor(ep), signal: AbortSignal.timeout(8000) });
+  if (!res.ok) throw new Error(`fetch HTTP ${res.status}`);
+  const d = await res.json();
+  return d?.messages || [];
+}
+
+async function postMessage(ep, room, body) {
+  const res = await fetch(`${ep.baseUrl.replace(/\/$/, '')}/messages`,
+    { method: 'POST', headers: headersFor(ep), body: JSON.stringify({ room, body }), signal: AbortSignal.timeout(8000) });
+  if (!res.ok) throw new Error(`post HTTP ${res.status}`);
+  return res.json().catch(() => ({}));
+}
+
+// Try cloud first, fall back to relay. Returns { ep, messages } or null.
+async function readWithFailover(cfg, log) {
+  const eps = [cfg.cloud, cfg.relay].filter((e) => e && e.baseUrl);
+  for (const ep of eps) {
+    try {
+      const messages = await fetchMessages(ep, cfg.room, cfg.limit);
+      return { ep, messages };
+    } catch (e) {
+      log(`read via ${ep.baseUrl} failed (${e.message}); trying next`);
+    }
+  }
+  return null;
+}
+
+// One poll cycle. `state` carries { seen:Set, primed:bool }. Injectable deps
+// (read/generate/post) make it unit-testable without a live room or model.
+export async function tick(cfg, state, deps) {
+  const read = deps?.read || (() => readWithFailover(cfg, deps.log));
+  const generate = deps?.generate || generateReply;
+  const post = deps?.post || postMessage;
+  const log = deps?.log || (() => {});
+
+  const r = await read();
+  if (!r || !r.messages) return;
+  const chronological = [...r.messages].reverse(); // room returns newest-first
+  for (const m of chronological) {
+    if (state.seen.has(m.id)) continue;
+    state.seen.add(m.id);
+    if (!state.primed) continue;                       // ignore history on the first cycle
+    if (sameHandle(m.from, cfg.handle)) continue;      // never reply to ourselves
+    if ((cfg.respondTo || 'mention') === 'mention' && !mentions(m.body, cfg.handle)) continue;
+    try {
+      const context = `${m.from}: ${m.body}`;
+      const reply = await generate({ ...cfg.ollama, systemPrompt: cfg.systemPrompt, context });
+      if (reply) { await post(r.ep, cfg.room, reply); log(`replied to ${m.from} (${reply.length} chars)`); }
+    } catch (e) {
+      log(`reply failed for ${m.id}: ${e.message}`);
+    }
+  }
+  state.primed = true;
+}
+
+export async function runAgent(cfg) {
+  const log = cfg.logger || ((m) => process.stderr.write(`[iak-local-agent:${cfg.handle}] ${m}\n`));
+  const full = { limit: cfg.maxContext || 8, pollMs: cfg.pollMs || 4000, ...cfg };
+  const state = { seen: new Set(), primed: false };
+  log(`up — model=${cfg.ollama?.model} room=${cfg.room} respondTo=${cfg.respondTo || 'mention'}`);
+  // eslint-disable-next-line no-constant-condition
+  while (true) {
+    try { await tick(full, state, { log }); } catch (e) { log(`tick error: ${e.message}`); }
+    await new Promise((r) => setTimeout(r, full.pollMs));
+  }
+}
+
+// CLI: config from IAK dogfood config + env overrides.
+if (import.meta.url === `file://${process.argv[1]}`) {
+  const { readFileSync } = await import('node:fs');
+  const cfgPath = process.env.IAK_CONFIG || '/Users/petrus/ide-agent-kit/config/dogfood.json';
+  let base = {};
+  try { base = JSON.parse(readFileSync(cfgPath, 'utf8')); } catch { /* fall back to env */ }
+  runAgent({
+    handle: process.env.AGENT_HANDLE || 'mm-local',
+    room: process.env.AGENT_ROOM || base?.poller?.room || base?.mcp?.confirmations?.room || 'thinkoff-development',
+    cloud: { baseUrl: 'https://groupmind.one/api/v1', apiKey: process.env.AGENT_KEY || base?.poller?.api_key },
+    relay: process.env.RELAY_URL ? { baseUrl: process.env.RELAY_URL, token: process.env.IAK_RELAY_TOKEN } : undefined,
+    ollama: {
+      url: process.env.OLLAMA_URL || 'http://127.0.0.1:11434',
+      model: process.env.OLLAMA_MODEL || 'hf.co/unsloth/Qwen3.6-35B-A3B-GGUF:UD-Q3_K_M',
+      keepAlive: process.env.OLLAMA_KEEP_ALIVE || '5m',
+    },
+    systemPrompt: process.env.AGENT_SYSTEM
+      || `You are ${process.env.AGENT_HANDLE || 'mm-local'}, a local on-device model running on a Mac mini in the ThinkOff fleet room. Be concise and useful. You run fully offline via Ollama.`,
+    respondTo: process.env.AGENT_RESPOND_TO || 'mention',
+  });
+}
diff --git a/test/local-agent.test.mjs b/test/local-agent.test.mjs
new file mode 100644
index 0000000..2355f99
--- /dev/null
+++ b/test/local-agent.test.mjs
@@ -0,0 +1,110 @@
+import assert from 'node:assert/strict';
+import test from 'node:test';
+import http from 'node:http';
+import { once } from 'node:events';
+import { mentions, sameHandle, generateReply, tick } from '../scripts/local-agent.mjs';
+
+test('mentions detects @handle and ignores non-mentions', () => {
+  assert.equal(mentions('hey @mm-local can you help', 'mm-local'), true);
+  assert.equal(mentions('hey @mm-local can you help', '@mm-local'), true);
+  assert.equal(mentions('MM-LOCAL please', 'mm-local'), true);
+  assert.equal(mentions('talking about mm-locality here', 'mm-local'), false);
+  assert.equal(mentions('nothing to see', 'mm-local'), false);
+});
+
+test('sameHandle is @- and case-insensitive', () => {
+  assert.equal(sameHandle('@MM-Local', 'mm-local'), true);
+  assert.equal(sameHandle('mm-local', '@mm-local'), true);
+  assert.equal(sameHandle('@other', 'mm-local'), false);
+});
+
+test('generateReply POSTs to ollama /api/chat and returns the content', async () => {
+  let received = null;
+  const server = http.createServer((req, res) => {
+    let b = '';
+    req.on('data', (c) => (b += c));
+    req.on('end', () => {
+      received = JSON.parse(b);
+      res.writeHead(200, { 'Content-Type': 'application/json' });
+      res.end(JSON.stringify({ message: { content: '  hi from the local model  ' } }));
+    });
+  });
+  server.listen(0);
+  await once(server, 'listening');
+  try {
+    const url = `http://127.0.0.1:${server.address().port}`;
+    const out = await generateReply({ url, model: 'qwen3.6:27b', systemPrompt: 'be nice', context: '@p: hello' });
+    assert.equal(out, 'hi from the local model'); // trimmed
+    assert.equal(received.model, 'qwen3.6:27b');
+    assert.equal(received.stream, false);
+    assert.equal(received.messages[0].role, 'system');
+    assert.equal(received.messages[1].content, '@p: hello');
+  } finally {
+    server.close();
+    await once(server, 'close');
+  }
+});
+
+test('generateReply strips <think> reasoning from thinking models', async () => {
+  const server = http.createServer((req, res) => {
+    let b = '';
+    req.on('data', (c) => (b += c));
+    req.on('end', () => {
+      res.writeHead(200, { 'Content-Type': 'application/json' });
+      res.end(JSON.stringify({ message: { content: '<think>let me reason about this\nstep by step</think>\n\nThe answer is 42.' } }));
+    });
+  });
+  server.listen(0);
+  await once(server, 'listening');
+  try {
+    const out = await generateReply({ url: `http://127.0.0.1:${server.address().port}`, model: 'm', context: 'q' });
+    assert.equal(out, 'The answer is 42.', 'thinking stripped, only the answer remains');
+  } finally {
+    server.close();
+    await once(server, 'close');
+  }
+});
+
+test('tick: skips history, then replies to a mention (not self, not non-mention)', async () => {
+  const posts = [];
+  const cfg = { room: 'r', handle: 'mm-local', ollama: { url: 'x', model: 'm' }, respondTo: 'mention' };
+  const deps = {
+    generate: async ({ context }) => `echo:${context}`,
+    post: async (ep, room, body) => { posts.push({ room, body }); },
+    log: () => {},
+  };
+  const state = { seen: new Set(), primed: false };
+
+  // tick 1: one historical message that DOES mention us — must be skipped (priming)
+  deps.read = async () => ({ ep: { baseUrl: 'x' }, messages: [{ id: '1', from: '@petrus', body: '@mm-local hi' }] });
+  await tick(cfg, state, deps);
+  assert.equal(posts.length, 0, 'history is not answered');
+
+  // tick 2: a NEW mention -> reply; plus self + non-mention that must be ignored
+  deps.read = async () => ({
+    ep: { baseUrl: 'x' },
+    messages: [ // newest-first, as the API returns
+      { id: '4', from: '@other', body: 'unrelated chatter' },
+      { id: '3', from: '@mm-local', body: '@mm-local self echo loop' },
+      { id: '2', from: '@petrus', body: '@mm-local what is 2+2' },
+      { id: '1', from: '@petrus', body: '@mm-local hi' },
+    ],
+  });
+  await tick(cfg, state, deps);
+  assert.equal(posts.length, 1, 'exactly one reply (the new mention)');
+  assert.equal(posts[0].body, 'echo:@petrus: @mm-local what is 2+2');
+});
+
+test('tick: respondTo=all replies to any new non-self message', async () => {
+  const posts = [];
+  const cfg = { room: 'r', handle: 'mm-local', ollama: { url: 'x', model: 'm' }, respondTo: 'all' };
+  const state = { seen: new Set(), primed: true }; // already primed
+  const deps = {
+    read: async () => ({ ep: { baseUrl: 'x' }, messages: [{ id: '9', from: '@petrus', body: 'no mention here' }] }),
+    generate: async () => 'sure',
+    post: async (ep, room, body) => { posts.push(body); },
+    log: () => {},
+  };
+  await tick(cfg, state, deps);
+  assert.equal(posts.length, 1);
+});