LM Studio for Copilot Chat

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

If LM Studio is installed on your machine, the extension is designed to work out of the box.

Install from the VS Code Marketplace:

DanLambiase.lmstudio-copilot-provider

What it does

• Adds LM Studio models to the Copilot Chat model picker
• Streams responses directly into VS Code chat
• Can auto-start LM Studio and lazy-load the selected model on first use

Requirements

• VS Code 1.104.0 or later
• LM Studio installed locally
• LM Studio local server available at http://localhost:1234 unless you changed it

Quick Start

1. Install this extension.
2. Open Copilot Chat.
3. Pick an LM Studio model.
4. Send a prompt.

No separate CLI install, PATH setup, or manual model preload should be required.

About The CLI

You do not need to install the LM Studio CLI separately.

The CLI ships with LM Studio, and the extension will try to find it automatically.

The extension tries to find the CLI in this order:

• lmstudio-copilot.cliPath
• lms on PATH
• common LM Studio install locations

For most users, nothing needs to be configured here.

Important Settings

Most users can leave the defaults alone. These are the settings that matter most:

• lmstudio-copilot.serverUrl: LM Studio server URL (default: http://localhost:1234)
• lmstudio-copilot.cliPath: Override the LM Studio CLI path if auto-detection does not find it
• lmstudio-copilot.autoStartServer: Start LM Studio automatically when the extension activates
• lmstudio-copilot.launchCommand: Fallback terminal command if CLI-based startup is unavailable
• lmstudio-copilot.enableToolCalling: Enable tool calling for supported models
• lmstudio-copilot.maxTools: Limit the number of tools exposed per request
• lmstudio-copilot.imageGenEndpointUrl: Base URL for DALL-E/OpenAI-compatible or A1111 image generation
• lmstudio-copilot.imageGenApiKey: Dedicated API key for image generation backends such as OpenAI DALL-E

Commands

• LM Studio: Refresh Available Models
• LM Studio: Start Server in Integrated Terminal
• LM Studio: Stop Server Terminal
• LM Studio: Check Server Connection

Usage

Select an LM Studio model in Copilot Chat and start chatting. The extension will use LM Studio automatically and, when possible, start the local server and load the selected model for you.

Optional Features

• Tool calling for supported local models
• Optional image generation through A1111 or DALL-E-compatible endpoints

DALL-E Setup

Use these settings for OpenAI image generation:

{
	"lmstudio-copilot.imageGenBackend": "dalle",
	"lmstudio-copilot.imageGenEndpointUrl": "https://api.openai.com",
	"lmstudio-copilot.imageGenApiKey": "sk-...",
	"lmstudio-copilot.imageGenModel": "dall-e-3"
}

lmstudio-copilot.imageGenApiKey is completely separate from lmstudio-copilot.apiKey. Chat requests keep using the LM Studio server key, and image generation uses only the dedicated image backend key.

Troubleshooting

Models not appearing

• Make sure LM Studio is running
• Check lmstudio-copilot.serverUrl
• Run LM Studio: Check Server Connection
• If LM Studio is installed in a non-standard location, set lmstudio-copilot.cliPath

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

License

MIT