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LM Studio for Copilot Chat

LM Studio for Copilot Chat

Dan Lambiase

|
6 installs
| (0) | Free
Use local LM Studio models inside VS Code Copilot Chat with streaming, tool calling, and optional image generation.
Installation
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LM Studio for Copilot Chat

GitHub release GitHub last commit License: MIT VS Code

Run local LM Studio models inside VS Code Copilot Chat with streaming responses, tool calling, terminal execution, filesystem tools, and optional image generation.

What it does

  • Adds LM Studio-hosted chat models to the Copilot Chat model picker
  • Streams responses from LM Studio into VS Code chat
  • Exposes a small built-in toolset for terminal and filesystem actions
  • Supports tool-calling friendly local models with configurable tool budgeting
  • Supports optional image generation through either A1111 or DALL-E-compatible APIs

Features

  • 🔌 Auto-discovery: Automatically detects models loaded in LM Studio
  • 💬 Chat Integration: Use LM Studio models directly in VS Code's chat interface
  • 🔄 Streaming: Real-time streaming responses
  • 🛠️ Tool Calling: Built-in terminal, file, directory, search, and image generation tools
  • 🖥️ Integrated Terminal Launch: Start LM Studio server from VS Code terminal
  • 🖼️ Optional Image Generation: Route image requests to Automatic1111 or DALL-E-compatible endpoints
  • ⚙️ Configurable: Customize server URL, timeouts, tool budget, and more

Requirements

  • VS Code 1.104.0 or later
  • LM Studio running with a model loaded
  • LM Studio's local server enabled (default: http://localhost:1234)

Setup

  1. Install and open LM Studio
  2. Load a model in LM Studio
  3. Start the local server in LM Studio (usually enabled by default)
  4. Install this extension in VS Code
  5. (Optional) Set lmstudio-copilot.launchCommand (for example: lms server start)
  6. Open the Command Palette and run "LM Studio: Start Server in Integrated Terminal"
  7. Run "LM Studio: Refresh Available Models"

Extension Settings

This extension contributes the following settings:

  • lmstudio-copilot.serverUrl: LM Studio server URL (default: http://localhost:1234)
  • lmstudio-copilot.apiKey: Optional API key for LM Studio-compatible servers
  • lmstudio-copilot.launchCommand: Command to launch LM Studio server in integrated terminal (example: lms server start)
  • lmstudio-copilot.terminalName: Terminal name used to run the server (default: LM Studio Server)
  • lmstudio-copilot.autoStartServer: Auto-run launchCommand when extension activates (default: false)
  • lmstudio-copilot.startupWaitMs: Wait time before connection check after terminal start (default: 3000)
  • lmstudio-copilot.enableTerminalTool: Allow model-invoked terminal commands (default: true)
  • lmstudio-copilot.terminalToolName: Terminal name for model tool commands (default: LM Studio Tool Terminal)
  • lmstudio-copilot.autoRefreshModels: Automatically refresh models on startup (default: true)
  • lmstudio-copilot.requestTimeout: Request timeout in milliseconds (default: 60000)
  • lmstudio-copilot.maxTools: Maximum number of tools exposed to the model per request (default: 20)
  • lmstudio-copilot.enableToolCalling: Enable tool calling support when the model can use tools
  • lmstudio-copilot.imageGenBackend: Choose dalle or a1111
  • lmstudio-copilot.imageGenEndpointUrl: Base URL for the selected image generation backend
  • lmstudio-copilot.imageGenModel: Image model name for DALL-E-compatible backends
  • lmstudio-copilot.imageGenWidth, lmstudio-copilot.imageGenHeight, lmstudio-copilot.imageGenSteps, lmstudio-copilot.imageGenOutputDir: Image defaults

Commands

  • LM Studio: Refresh Available Models - Refresh the list of available models from LM Studio
  • LM Studio: Start Server in Integrated Terminal - Starts LM Studio server command in VS Code terminal
  • LM Studio: Stop Server Terminal - Stops the dedicated LM Studio terminal
  • LM Studio: Check Server Connection - Test connection to LM Studio server

Usage

  1. Make sure LM Studio is running with a model loaded
  2. Open VS Code's Chat view (Ctrl+Shift+I or Cmd+Shift+I)
  3. Click on the model selector dropdown
  4. Select an LM Studio model (prefixed with "LM Studio")
  5. Start chatting!

Let models run commands in the integrated terminal

The extension now exposes a chat tool named #runInTerminal.

  • In chat, ask the model to use #runInTerminal to run commands (for example, compile or test commands).
  • Commands run in a dedicated integrated terminal (lmstudio-copilot.terminalToolName).
  • Invocations are automatically executed without a confirmation prompt.

Tool budget for local models

Many local models become unreliable when given dozens of tool schemas at once, especially when MCP servers add very large tool inventories.

  • By default, the extension sends at most 20 tools per request.
  • Tools already used in the current conversation are prioritized.
  • Set lmstudio-copilot.maxTools to 0 to disable the limit.

This helps reduce hallucinated tool names, malformed inputs, and context-window bloat.

Image generation

The built-in lmstudio_generate_image tool supports:

  • Automatic1111 / Stable Diffusion WebUI via lmstudio-copilot.imageGenBackend = a1111
  • DALL-E-compatible APIs via lmstudio-copilot.imageGenBackend = dalle

Set lmstudio-copilot.imageGenEndpointUrl to your image server URL.

Troubleshooting

Models not appearing

  • Make sure LM Studio is running
  • Make sure a model is loaded in LM Studio
  • Check that the server URL is correct in settings
  • Run "LM Studio: Check Server Connection" to verify connectivity

Slow responses

  • LM Studio performance depends on your hardware and the model size
  • Consider using a smaller/faster model
  • Increase the timeout in settings if needed

Development

# Install dependencies
npm install

# Compile and watch
npm run watch

# Package the extension
npm run package

# Build a VSIX for local install / Marketplace submission
npm run package:vsix

Releases

  • Git tags use the format v<package.json version>
  • GitHub releases are created from those tags
  • The first release for this repo is v0.1.0

VS Code Marketplace publishing

This repo is prepared for packaging with vsce.

# Build a VSIX locally
npm run package:vsix

# Publish to the Visual Studio Marketplace
# Requires a VS Code publisher and VSCE_PAT in your environment
npm run publish:vsce

Before publishing to the Marketplace for real, you may still want to add:

  • a square extension icon (128x128 PNG recommended)
  • a CHANGELOG.md entry for each release
  • optional CI automation for tagging and VSIX builds

License

MIT

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