diff --git a/crates/ollama/src/ollama_completion_provider.rs b/crates/ollama/src/ollama_completion_provider.rs
index 02abe6c935..3112ad831a 100644
--- a/crates/ollama/src/ollama_completion_provider.rs
+++ b/crates/ollama/src/ollama_completion_provider.rs
@@ -32,6 +32,11 @@ impl OllamaCompletionProvider {
         }
     }
 
+    /// Updates the model used by this provider
+    pub fn update_model(&mut self, new_model: String) {
+        self.model = new_model;
+    }
+
     fn build_fim_prompt(&self, prefix: &str, suffix: &str) -> String {
         // Use model-specific FIM patterns
         match self.model.as_str() {
@@ -100,7 +105,6 @@ impl EditPredictionProvider for OllamaCompletionProvider {
     ) {
         let http_client = self.http_client.clone();
         let api_url = self.api_url.clone();
-        let model = self.model.clone();
 
         self.pending_refresh = Some(cx.spawn(async move |this, cx| {
             if debounce {
@@ -125,8 +129,10 @@ impl EditPredictionProvider for OllamaCompletionProvider {
 
             let prompt = this.update(cx, |this, _| this.build_fim_prompt(&prefix, &suffix))?;
 
+            let model = this.update(cx, |this, _| this.model.clone())?;
+
             let request = GenerateRequest {
-                model: model.clone(),
+                model,
                 prompt,
                 stream: false,
                 options: Some(GenerateOptions {
@@ -360,4 +366,41 @@ mod tests {
 
         assert!(completion.is_none());
     }
+
+    #[gpui::test]
+    async fn test_update_model(_cx: &mut TestAppContext) {
+        let mut provider = OllamaCompletionProvider::new(
+            Arc::new(FakeHttpClient::with_404_response()),
+            "http://localhost:11434".to_string(),
+            "codellama:7b".to_string(),
+        );
+
+        // Verify initial model
+        assert_eq!(provider.model, "codellama:7b");
+
+        // Test updating model
+        provider.update_model("deepseek-coder:6.7b".to_string());
+        assert_eq!(provider.model, "deepseek-coder:6.7b");
+
+        // Test FIM prompt changes with different model
+        let prefix = "def hello():";
+        let suffix = "    pass";
+        let prompt = provider.build_fim_prompt(prefix, suffix);
+
+        // Should now use deepseek pattern
+        assert!(prompt.contains("<｜fim▁begin｜>"));
+        assert!(prompt.contains("<｜fim▁hole｜>"));
+        assert!(prompt.contains("<｜fim▁end｜>"));
+
+        // Update to starcoder model
+        provider.update_model("starcoder:7b".to_string());
+        assert_eq!(provider.model, "starcoder:7b");
+
+        let prompt = provider.build_fim_prompt(prefix, suffix);
+
+        // Should now use starcoder pattern
+        assert!(prompt.contains("<fim_prefix>"));
+        assert!(prompt.contains("<fim_suffix>"));
+        assert!(prompt.contains("<fim_middle>"));
+    }
 }
diff --git a/crates/zed/src/zed/inline_completion_registry.rs b/crates/zed/src/zed/inline_completion_registry.rs
index bf6022be8e..df4c7a2919 100644
--- a/crates/zed/src/zed/inline_completion_registry.rs
+++ b/crates/zed/src/zed/inline_completion_registry.rs
@@ -3,6 +3,7 @@ use collections::HashMap;
 use copilot::{Copilot, CopilotCompletionProvider};
 use editor::Editor;
 use gpui::{AnyWindowHandle, App, AppContext as _, Context, Entity, WeakEntity};
+
 use language::language_settings::{EditPredictionProvider, all_language_settings};
 use language_models::AllLanguageModelSettings;
 use ollama::OllamaCompletionProvider;
@@ -13,6 +14,7 @@ use supermaven::{Supermaven, SupermavenCompletionProvider};
 use ui::Window;
 use util::ResultExt;
 use workspace::Workspace;
+use zed_actions;
 use zeta::{ProviderDataCollection, ZetaInlineCompletionProvider};
 
 pub fn init(client: Arc<Client>, user_store: Entity<UserStore>, cx: &mut App) {
@@ -135,6 +137,9 @@ pub fn init(client: Arc<Client>, user_store: Entity<UserStore>, cx: &mut App) {
                         | EditPredictionProvider::Ollama => {}
                     }
                 }
+            } else if provider == EditPredictionProvider::Ollama {
+                // Update Ollama providers when settings change but provider stays the same
+                update_ollama_providers(&editors, &client, user_store.clone(), cx);
             }
         }
     })
@@ -147,6 +152,46 @@ fn clear_zeta_edit_history(_: &zeta::ClearHistory, cx: &mut App) {
     }
 }
 
+fn update_ollama_providers(
+    editors: &Rc<RefCell<HashMap<WeakEntity<Editor>, AnyWindowHandle>>>,
+    client: &Arc<Client>,
+    user_store: Entity<UserStore>,
+    cx: &mut App,
+) {
+    let settings = &AllLanguageModelSettings::get_global(cx).ollama;
+    let _current_model = settings
+        .available_models
+        .first()
+        .map(|m| m.name.clone())
+        .unwrap_or_else(|| "codellama:7b".to_string());
+
+    for (editor, window) in editors.borrow().iter() {
+        _ = window.update(cx, |_window, window, cx| {
+            _ = editor.update(cx, |editor, cx| {
+                if let Some(provider) = editor.edit_prediction_provider() {
+                    // Check if this is an Ollama provider by comparing names
+                    if provider.name() == "ollama" {
+                        // Recreate the provider with the new model
+                        let settings = &AllLanguageModelSettings::get_global(cx).ollama;
+                        let _api_url = settings.api_url.clone();
+
+                        // Get client from the registry context (need to pass it)
+                        // For now, we'll trigger a full reassignment
+                        assign_edit_prediction_provider(
+                            editor,
+                            EditPredictionProvider::Ollama,
+                            &client,
+                            user_store.clone(),
+                            window,
+                            cx,
+                        );
+                    }
+                }
+            })
+        });
+    }
+}
+
 fn assign_edit_prediction_providers(
     editors: &Rc<RefCell<HashMap<WeakEntity<Editor>, AnyWindowHandle>>>,
     provider: EditPredictionProvider,