diff --git a/.env.example b/.env.example
index 8b13789..bf3bd02 100644
--- a/.env.example
+++ b/.env.example
@@ -1 +1 @@
-
+OLLAMA_HOST=
diff --git a/container/agent-runner/src/index.ts b/container/agent-runner/src/index.ts
index 96cb4a4..58bc06a 100644
--- a/container/agent-runner/src/index.ts
+++ b/container/agent-runner/src/index.ts
@@ -407,7 +407,8 @@ async function runQuery(
         'TeamCreate', 'TeamDelete', 'SendMessage',
         'TodoWrite', 'ToolSearch', 'Skill',
         'NotebookEdit',
-        'mcp__nanoclaw__*'
+        'mcp__nanoclaw__*',
+        'mcp__ollama__*'
       ],
       env: sdkEnv,
       permissionMode: 'bypassPermissions',
@@ -423,6 +424,10 @@ async function runQuery(
             NANOCLAW_IS_MAIN: containerInput.isMain ? '1' : '0',
           },
         },
+        ollama: {
+          command: 'node',
+          args: [path.join(path.dirname(mcpServerPath), 'ollama-mcp-stdio.js')],
+        },
       },
       hooks: {
         PreCompact: [{ hooks: [createPreCompactHook(containerInput.assistantName)] }],
diff --git a/container/agent-runner/src/ollama-mcp-stdio.ts b/container/agent-runner/src/ollama-mcp-stdio.ts
new file mode 100644
index 0000000..7d29bb2
--- /dev/null
+++ b/container/agent-runner/src/ollama-mcp-stdio.ts
@@ -0,0 +1,147 @@
+/**
+ * Ollama MCP Server for NanoClaw
+ * Exposes local Ollama models as tools for the container agent.
+ * Uses host.docker.internal to reach the host's Ollama instance from Docker.
+ */
+
+import { McpServer } from '@modelcontextprotocol/sdk/server/mcp.js';
+import { StdioServerTransport } from '@modelcontextprotocol/sdk/server/stdio.js';
+import { z } from 'zod';
+
+import fs from 'fs';
+import path from 'path';
+
+const OLLAMA_HOST = process.env.OLLAMA_HOST || 'http://host.docker.internal:11434';
+const OLLAMA_STATUS_FILE = '/workspace/ipc/ollama_status.json';
+
+function log(msg: string): void {
+  console.error(`[OLLAMA] ${msg}`);
+}
+
+function writeStatus(status: string, detail?: string): void {
+  try {
+    const data = { status, detail, timestamp: new Date().toISOString() };
+    const tmpPath = `${OLLAMA_STATUS_FILE}.tmp`;
+    fs.mkdirSync(path.dirname(OLLAMA_STATUS_FILE), { recursive: true });
+    fs.writeFileSync(tmpPath, JSON.stringify(data));
+    fs.renameSync(tmpPath, OLLAMA_STATUS_FILE);
+  } catch { /* best-effort */ }
+}
+
+async function ollamaFetch(path: string, options?: RequestInit): Promise<Response> {
+  const url = `${OLLAMA_HOST}${path}`;
+  try {
+    return await fetch(url, options);
+  } catch (err) {
+    // Fallback to localhost if host.docker.internal fails
+    if (OLLAMA_HOST.includes('host.docker.internal')) {
+      const fallbackUrl = url.replace('host.docker.internal', 'localhost');
+      return await fetch(fallbackUrl, options);
+    }
+    throw err;
+  }
+}
+
+const server = new McpServer({
+  name: 'ollama',
+  version: '1.0.0',
+});
+
+server.tool(
+  'ollama_list_models',
+  'List all locally installed Ollama models. Use this to see which models are available before calling ollama_generate.',
+  {},
+  async () => {
+    log('Listing models...');
+    writeStatus('listing', 'Listing available models');
+    try {
+      const res = await ollamaFetch('/api/tags');
+      if (!res.ok) {
+        return {
+          content: [{ type: 'text' as const, text: `Ollama API error: ${res.status} ${res.statusText}` }],
+          isError: true,
+        };
+      }
+
+      const data = await res.json() as { models?: Array<{ name: string; size: number; modified_at: string }> };
+      const models = data.models || [];
+
+      if (models.length === 0) {
+        return { content: [{ type: 'text' as const, text: 'No models installed. Run `ollama pull <model>` on the host to install one.' }] };
+      }
+
+      const list = models
+        .map(m => `- ${m.name} (${(m.size / 1e9).toFixed(1)}GB)`)
+        .join('\n');
+
+      log(`Found ${models.length} models`);
+      return { content: [{ type: 'text' as const, text: `Installed models:\n${list}` }] };
+    } catch (err) {
+      return {
+        content: [{ type: 'text' as const, text: `Failed to connect to Ollama at ${OLLAMA_HOST}: ${err instanceof Error ? err.message : String(err)}` }],
+        isError: true,
+      };
+    }
+  },
+);
+
+server.tool(
+  'ollama_generate',
+  'Send a prompt to a local Ollama model and get a response. Good for cheaper/faster tasks like summarization, translation, or general queries. Use ollama_list_models first to see available models.',
+  {
+    model: z.string().describe('The model name (e.g., "llama3.2", "mistral", "gemma2")'),
+    prompt: z.string().describe('The prompt to send to the model'),
+    system: z.string().optional().describe('Optional system prompt to set model behavior'),
+  },
+  async (args) => {
+    log(`>>> Generating with ${args.model} (${args.prompt.length} chars)...`);
+    writeStatus('generating', `Generating with ${args.model}`);
+    try {
+      const body: Record<string, unknown> = {
+        model: args.model,
+        prompt: args.prompt,
+        stream: false,
+      };
+      if (args.system) {
+        body.system = args.system;
+      }
+
+      const res = await ollamaFetch('/api/generate', {
+        method: 'POST',
+        headers: { 'Content-Type': 'application/json' },
+        body: JSON.stringify(body),
+      });
+
+      if (!res.ok) {
+        const errorText = await res.text();
+        return {
+          content: [{ type: 'text' as const, text: `Ollama error (${res.status}): ${errorText}` }],
+          isError: true,
+        };
+      }
+
+      const data = await res.json() as { response: string; total_duration?: number; eval_count?: number };
+
+      let meta = '';
+      if (data.total_duration) {
+        const secs = (data.total_duration / 1e9).toFixed(1);
+        meta = `\n\n[${args.model} | ${secs}s${data.eval_count ? ` | ${data.eval_count} tokens` : ''}]`;
+        log(`<<< Done: ${args.model} | ${secs}s | ${data.eval_count || '?'} tokens | ${data.response.length} chars`);
+        writeStatus('done', `${args.model} | ${secs}s | ${data.eval_count || '?'} tokens`);
+      } else {
+        log(`<<< Done: ${args.model} | ${data.response.length} chars`);
+        writeStatus('done', `${args.model} | ${data.response.length} chars`);
+      }
+
+      return { content: [{ type: 'text' as const, text: data.response + meta }] };
+    } catch (err) {
+      return {
+        content: [{ type: 'text' as const, text: `Failed to call Ollama: ${err instanceof Error ? err.message : String(err)}` }],
+        isError: true,
+      };
+    }
+  },
+);
+
+const transport = new StdioServerTransport();
+await server.connect(transport);
diff --git a/scripts/ollama-watch.sh b/scripts/ollama-watch.sh
new file mode 100755
index 0000000..1aa4a93
--- /dev/null
+++ b/scripts/ollama-watch.sh
@@ -0,0 +1,41 @@
+#!/bin/bash
+# Watch NanoClaw IPC for Ollama activity and show macOS notifications
+# Usage: ./scripts/ollama-watch.sh
+
+cd "$(dirname "$0")/.." || exit 1
+
+echo "Watching for Ollama activity..."
+echo "Press Ctrl+C to stop"
+echo ""
+
+LAST_TIMESTAMP=""
+
+while true; do
+  # Check all group IPC dirs for ollama_status.json
+  for status_file in data/ipc/*/ollama_status.json; do
+    [ -f "$status_file" ] || continue
+
+    TIMESTAMP=$(python3 -c "import json; print(json.load(open('$status_file'))['timestamp'])" 2>/dev/null)
+    [ -z "$TIMESTAMP" ] && continue
+    [ "$TIMESTAMP" = "$LAST_TIMESTAMP" ] && continue
+
+    LAST_TIMESTAMP="$TIMESTAMP"
+    STATUS=$(python3 -c "import json; d=json.load(open('$status_file')); print(d['status'])" 2>/dev/null)
+    DETAIL=$(python3 -c "import json; d=json.load(open('$status_file')); print(d.get('detail',''))" 2>/dev/null)
+
+    case "$STATUS" in
+      generating)
+        osascript -e "display notification \"$DETAIL\" with title \"NanoClaw → Ollama\" sound name \"Submarine\"" 2>/dev/null
+        echo "$(date +%H:%M:%S) 🔄 $DETAIL"
+        ;;
+      done)
+        osascript -e "display notification \"$DETAIL\" with title \"NanoClaw ← Ollama ✓\" sound name \"Glass\"" 2>/dev/null
+        echo "$(date +%H:%M:%S) ✅ $DETAIL"
+        ;;
+      listing)
+        echo "$(date +%H:%M:%S) 📋 Listing models..."
+        ;;
+    esac
+  done
+  sleep 0.5
+done
diff --git a/src/container-runner.ts b/src/container-runner.ts
index be6f356..e448419 100644
--- a/src/container-runner.ts
+++ b/src/container-runner.ts
@@ -382,7 +382,12 @@ export async function runContainerAgent(
       const chunk = data.toString();
       const lines = chunk.trim().split('\n');
       for (const line of lines) {
-        if (line) logger.debug({ container: group.folder }, line);
+        if (!line) continue;
+        if (line.includes('[OLLAMA]')) {
+          logger.info({ container: group.folder }, line);
+        } else {
+          logger.debug({ container: group.folder }, line);
+        }
       }
       // Don't reset timeout on stderr — SDK writes debug logs continuously.
       // Timeout only resets on actual output (OUTPUT_MARKER in stdout).